Self-Employed Tax Return Cost UK (2026 Guide) If you’re self-employed in the UK, you must file a Self Assessment tax return each year to report your income and pay tax. But how much does a tax return actually cost in 2026? This guide explains accountant fees, software prices, HMRC penalties, and the cheapest way to file.
1. Do Self-Employed People Need To Pay for a Tax Return? You do not pay HMRC to submit a tax return. However, you may have costs such as: accountant fees bookkeeping services tax software fines for late filing Your total cost depends on whether you file yourself or hire help.
2. Cost to File a Tax Return Yourself (2026) If you complete your own tax return using the HMRC website: Filing online yourself: FREE Using accounting software: £0 – £10/month Costs for bookkeeping apps: £5 – £15/month Popular, low-cost software options typically charge: £5–£10/month for sole traders £10–£20/month for more complex accounts This is the cheapest method if your income is simple.
3. Cost of Hiring an Accountant (2026) Most self-employed people choose an accountant because it saves time and reduces errors. Prices vary depending on your business type and how well your records are organised. Typical Accountant Fees (2026): Basic sole trader tax return: £120 – £300 With bookkeeping included: £250 – £450 With multiple income sources: £300 – £600 CIS subcontractor return: £100 – £180 Partnership tax return: £200 – £450 Businesses with poor record-keeping or many transactions will pay the higher end.
4. Additional Costs You May Face Bookkeeping Services £20 – £40/hour Or £30 – £120/month depending on volume Payroll (if you pay yourself as a director or pay staff) £10 – £40/month Software Add-Ons Receipt scanning tools Bank feed automation Cloud storage Costs vary from £5 – £20/month.
5. HMRC Penalties (2026) — What It Costs if You File Late Avoiding penalties is essential. HMRC charges: 1 day late: £100 3 months late: £10/day up to £900 6 months late: 5% of the tax due 12 months late: Additional 5% + further penalties Late payment interest also applies until tax is fully paid.
6. Total Estimated Cost for a Self-Employed Tax Return in 2026 Filing Method Estimated Total Cost Do it yourself (HMRC portal) £0 Use tax software £5 – £10/month Hire an accountant £120 – £450 Hire full bookkeeping + accountant £300 – £600 Hiring an accountant usually gives the best value because they help reduce errors and may save you tax.
7. Deadline for Self-Employed Tax Returns (2026) Deadline to file online: 31 January 2026 Deadline to pay tax: 31 January 2026 Deadline for paper returns: 31 October 2025 If your income from self-employment exceeds £1,000, you must file a tax return unless HMRC says otherwise.
8. Ways to Reduce Tax Return Costs Keep organised receipts Use bank-connected bookkeeping apps Track income monthly Avoid paper returns (more errors) Submit early (accountants charge less outside January) Submitting early also gives you more time to budget for the tax bill.
