How much does a self-assessment tax return cost?

As such, there is not a one size fits all approach to the cost of tax return preparation and submission. What is most important is that you get the service that you need and feel like you are receiving a quality service at a price you are comfortable with. 

Cost vs. service 

When it comes to tax returns, the lower the cost does not always mean the better the value. Paying for an accountant to complete your tax return, provides an invaluable service with multiple benefits and can be seen as an investment in you and your business.   

Using a professional accountant: 

• Saves you time 
• Can increase your tax efficiency to save you money 
• Allows you to focus on running your business 
• Gives you peace of mind that your tax return is prepared by a professional 
• Means you do not need to stay on top of tax legislation 
• Lets you remain in control of your finances by providing face to face advice and support 

When it comes to using a professional service, an accountant: 

• can see what is missing and if there are additional costs you can claim for 
• can use your financial data to provide you with proactive advice 
• keeps up to date with the tax system so you are assured they can advise you effectively 
• helps you meet all your filing deadline 
• supports individuals and businesses with expert guidance should you be subject to a tax investigation 

The cost of a tax return will vary. A survey by Iris Software Group identified that the cost of a tax return prepared by an accountant can range from £126 to over £600. We have listed some examples showing what can affect the costs that you may be quoted, to have your tax return completed for you.  

Example 1 

Mr Debit  

• runs a self-employed business selling upcycled furniture 
• also has multiple investments, including in cryptocurrencies 
• rents out two properties – one as a long-term let and one as a Furnished Holiday Let.  
• is also non-UK resident and has income from another country 

Firstly, Mr Debit’s tax return could take some time to complete, there is a lot of information to compile and complex tax considerations to take into account.  

It is highly likely that Mr Debit would benefit from professional tax advice and proactive financial planning to ensure his businesses are handled in the most tax-efficient way. 

Example 2 

Ms Credit  

• runs a small business which turns over less than the VAT threshold 
• she has other smaller sources of income 
• she uses her accountant to complete her bookkeeping

Ms Credit’s tax return is likely to be simple, partly because there are fewer sources of income, and secondly because her accountant does the bookkeeping, so her records are complete. 

When should I consider using an accountant for my tax return?  

You should consider using an accountant if:  

• You have a complex financial situation with multiple income sources, such as rental income, foreign income, or significant investments 
• You are self-employed and need assistance with business accounts and tax planning 
• You want to avoid potential errors and penalties in your tax return 
• You would benefit from additional services beyond tax return preparation 

How to find a reliable accountant 

To find a trusted professional accountant:  

• Seek recommendations from friends, family, or business associates 
• Look for practical experience, and length of service to find experienced accountants 
• Look for certifications and professional memberships, such as ACA, ACCA, AAT or CIOT  
• Check online reviews and testimonials 

How we can help 

TaxAssist Accountants Colchester can offer individuals and businesses support with their accounting and tax affairs. Call our friendly team on 01206 576800 or use our online contact form. 

Date published 2 Oct 2024 | Last updated 2 Oct 2024

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

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