Table of Contents
- What does an accountant or tax adviser do?
- How to find a good tax adviser
- Who would benefit from using a tax accountant?
- How much will a tax accountant cost?
- How much does it cost to send a tax return?
- What are the best ways of filing a return on your own?
- Can you deduct accountancy fees from a tax return?
If you need to file a self-assessment tax return, you’ll already know there is usually a lot of paperwork involved, not to mention the time it can take.
You may need to register for self-assessment and set up your account, as well as actually filing the return of all your income from the previous tax year.
The amount of time, and hassle, this takes depends on your circumstances and how complicated your taxes are. One option to ease the burden is to employ a tax accountant to do most of the legwork for you.
Read on to learn all about these tax professionals and whether your business might benefit from their services.
What does an accountant or tax adviser do?
An accountant hired to fill out your self-assessment tax return will do exactly that. They will probably start by asking you for details of your income and all of your expenses for the previous tax year.
For example, if you are now preparing a return for the 2024/25 tax year, you will need to send details of everything you earned between 6 April 2024 and 5 April 2025. The deadline for filing an online tax return for the 2024/2025 tax year is 31 January 2026.
The current tax year, which started on 6 April 2025, will run until 5 April 2026 – after which you will be able to prepare and file your return for the 2025/2026 tax year.
Your accountant will go through the details of your income and work out how much tax you will need to pay. They do this by adding up all your income and then taking off any deductions. Deductions include anything that you don’t need to pay tax on, such as business expenses or your personal tax allowance.
You can then appoint the accountant to log into your online tax account and submit your return by the 31 January deadline. Or they can file a paper tax return for you if you would prefer (paper returns need to be completed by 31 October). They will use the online authorisation service to do this and will log on and file the return for you to HM Revenue & Customs (HMRC). You’ll receive an email or letter confirming how much tax is due, and details of how to pay this.
How to find a good tax adviser
You don’t want just anybody filing your tax return, so it’s important to carry out some checks to make sure you have someone who is legally allowed to file it, and competent at doing it. The following questions are worth asking when looking for an accountant:
- Has the accountant been recommended to you by someone you know and trust?
- What professional bodies do they belong to?
- Do they meet the standards set out by HMRC?
- Can they show you proof of professional indemnity insurance and a complaints procedure if something goes wrong?
- How much do they charge and will they let you know of any additional costs in advance?
- Are they an expert in the area of tax you are looking for? For example, if you’re a self-employed chef, do they work with other people in this sector?
- How are they communicating with you – is it easy to get in touch with them?
Who would benefit from using a tax accountant?
If you have a complicated tax situation and you don’t feel comfortable filing your own tax return, hiring an accountant is one option worth considering. You need to factor in the cost of doing so to make sure that you can afford the accountant’s fees.
Alternatively, you might decide that you’d rather file your own tax return and handle your own accounting and bookkeeping. In this case, you might find it useful to take advantage of accounting software to help with some of the heavy lifting. Our guide to the best accounting software on the market for small businesses can help.
How much will a tax accountant cost?
There is no standard price but most tax accountants will charge a one-off fee for their services, when you need them to file a tax return for you.
The cost of this service can vary greatly but may range from £150 to £300, or more, depending on the complexity of your tax affairs. You should always seek clarification on exactly what you will be charged for your individual requirements.
How much does it cost to send a tax return?
You can send your tax return on your own and there are no fees, unless you file it late.
What are the best ways of filing a return on your own?
Starting early and being as organised as possible should help to make it easier to file a tax return on your own.
If you don’t want to pay for an accountant, you may want to submit your self-assessment tax return yourself. There is a lot of information on the government website to help you to file your own return.
You might also decide to lean on small business accounting software to help with your bookkeeping. The more organised you are, the easier you’ll find it when it comes to tax time.
Some accounting software programs are free to micro-businesses and sole traders.
Can you deduct accountancy fees from a tax return?
You may be able to deduct any fees paid out for an accountant in your tax return. These are known as allowable business expenses.
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