Article
How much does a self-assessment tax return cost?
A self-assessment tax return can be simple or very complex, depending on the types of income you are receiving and your personal circumstances.
By Catherine Heinen, FCCAAs 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 can offer individuals and businesses support with their accounting and tax affairs. Call our friendly team on 0800 0523 555 or use our online contact form.
Frequently Asked Questions
If you miss the tax return deadline there are a number of consequences. You will be charged interest and a late filing surcharge.
Filing late can increase the likelihood that you will be chosen to be audited by Revenue and uou could lose your entitlement to government grants and subsidies as businesses must be entitled to a tax clearance certificate to qualify for these schemes. If you have missed the deadline the most important thing is to get the return filed as soon as possible.
Tax Credits reduce the amount of tax that you pay. The tax credits you are entitled to are dependent upon your personal circumstances.
Another great way to save money on your tax bill is to pay into a pension. The government offers generous tax relief at your highest tax rate.
An allowable expense is an expense that is directly related to the running of your business. For example goods that you buy for resale, employees' payment, rent and bills for your business premises, interest payments for money you borrowed to finance your business.
You can file a Form 11 tax return yourself with Revenue online using Revenue Online Services (ROS) or you can engage an accountant to file on your behalf.
If you make any money outside of your normal PAYE income from your job then you need to file a self-assessment tax return each year.
Some common reasons you may need to file a tax return include; you are self-employed, work freelance or as a contractor, you are a landlord or make money using Airbnb, you are the director of a company, you own shares, you have sold a personal asset or sold all or part of your business, you have inherited money, you make some extra cash doing nixers.
Generally, if you earn at least £1,000 of trading income you should consider if you need to file a tax return. This will depend on what other income you are receiving and speaking to an accountant, or using HMRC’s online checker will help you determine if you need to file a tax return.
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.
Catherine Heinen, FCCA
Catherine is a Technical Content Writer at TaxAssist Accountants, and a qualified accountant. With experience working at two accountancy practices in the UK top 50 accountancy firms according to Accountancy Age, Catherine has significant experience in accounts, tax returns and advising clients. Catherine ensures businesses, business owners and individuals are kept up to date and informed by providing concise and informative technical material.
Choose the right accounting firm for you
Running your own business can be challenging so why not let TaxAssist Accountants manage your tax, accounting, bookkeeping and payroll needs? If you are not receiving the service you deserve from your accountant, then perhaps it’s time to make the switch?
Local business focus
We specialise in supporting independent businesses and work with 100,000 clients. Each TaxAssist Accountant runs their own business, and are passionate about supporting you.
Come and meet us
We enjoy talking to business owners and self-employed professionals who are looking to get the most out of their accountant. You can visit us at any of our 409 locations, meet with us online through video call software, or talk to us by telephone.
Switching is simple
Changing accountants is easier than you might think. There are no tax implications and you can switch at any time in the year and our team will guide you through the process for a smooth transition.