Cost for accountant to do self assessment tax return?

Many self-employed individuals hire a professional accountant to assist them in completing their annual self-assessment tax return. The cost varies based on the complexity of your business and how far ahead of the filing date you work, but it is normally between £200 and £300.

What are self-assessment tax returns and how do they work?

You must file annual accounts with HMRC if you are self-employed or manage your firm as a lone trader. The overall revenue and spending for the tax year are shown below. You will pay tax on the profit, which is equal to your total business income less your total business expenses.

Each period’s online filing deadline is the 31st of January the following year. This means you have ten months from the end of the tax year on April 5th to file your tax return before it becomes past late. Please keep in mind that if you want to file your self-assessment tax return by filling out a paper form and mailing it, you’ll have to do so sooner, with a deadline of October 31st.

Want to switch to More Than Accountants? You can get an instant quote online by using the form below. In a like for like comparison for services we are up to 70% cheaper than a high street accountant.


Is it necessary for me to hire an accountant to complete my self-assessment tax return?

Using a professional accountant to assist you with your self-assessment tax returns is not required. You are not need to seek expert assistance to execute these tasks.

Many self-employed people, on the other hand, are unsure of their ability to comprehend all of the expenses that can be deducted from their profit and are related to their firm.

An accountant can help you with your tax return by providing a professional service, rapidly completing your calculations, and advising you on what expenses and income aspects are significant to your tax return.

How much does an accountant cost for a small limited company?

The cost of filing your self-assessment tax returns can be quite different. There are numerous aspects to consider, including the following:

  • What is the complexity of your business?
  • Whether you’re on the verge of missing a filing deadline and need a quick turnaround,
  • Where you are based – sole traders in London and the southeast often pay a higher rate than those in other parts of the country.
  • How much experience does your accountant have?

An accountant would typically charge between £200 and £300 to file your tax returns for you. This may appear to be quite costly, but by ensuring that you claim all of your eligible expenses, you can save a lot of money.

You also have the assurance that your tax returns were done correctly, that they were submitted ahead of schedule, and that you saved yourself the time it would have taken to complete the procedure.

However, if you keep solid records, are confident in your understanding of the requirements, and have the time, you should be able to complete your tax returns on your own.

How long would it take for an accountant to prepare my tax return?

The amount of time required by your accountant will be determined on the complexity of your finances. It usually takes two working days for your tax return to be computed and submitted if you keep meticulous records and supply all pertinent information with them.

If you haven’t already filed a tax return or informed HMRC that you are self-employed, you must first create a Government Gateway password and wait for your UTR number (lost your CTR number?) to arrive in the mail.

This can take a few weeks, or even longer during peak periods, so register well ahead of your initial filing date.

We recommend giving your accountant a couple of weeks’ notice before they begin working on your tax return. This will give them plenty of opportunity to ask any questions or obtain any more information they may require.

Further Reading: How much does a limited company accountant cost?

What are the benefits of hiring a professional to prepare your tax returns?

Stress is one of the most important aspects to consider when determining whether or not to hire an accountant to complete your tax returns.

While most business people will have a basic awareness of tax laws and be able to handle the math involved, the HMRC guidelines can appear to be complex and difficult to follow.

If you make a mistake on your tax return, you have time to correct it before the deadline. However, if you purposefully input incorrect figures, you risk being investigated and even prosecuted, so hiring an accountant relieves the stress and concern of completing your tax return if you don’t feel comfortable doing so.

Other benefits include:

  • Time is money.
  • Ascertaining that you claim all legitimate expenditures
  • Belief in the accuracy of computations
  • What to claim and how to disclose transactions are some of the topics covered in this guide.
  • Knowing that your return will arrive on time is reassuring.


In order to file my tax return, what information will my accountant require?

It may be as simple as handing over your records to your accountant to complete your tax return calculations if you keep good records. Small businesses frequently fail to keep up with their bookkeeping, and your accountant may request that you produce all of your business receipts.

If you are unsure about your total income for the year, you must furnish records to aid in the calculation. Invoices, bank statements, pay in slips, and cash receipts are all examples of this.

Your accountant will need to know the following in order to complete appropriate tax returns:

  • Your employment information – if you worked during the same tax year, you’ll need your P45 or P60 to show how much (also check out accountancy hourly charge) tax you’ve previously paid.
  • Any pension income – if you receive a state pension, this will be stated on your notification letter; if you receive a private pension, you will receive a certificate of the pension paid after the tax year ends.
  • All income received, interest earned, and taxes deducted are listed in your self-employed or partnership business records.
  • Any interest earned on investments is referred to as investment income.
  • Any assets sold, purchased, or disposed of, as well as the values involved in each transaction.

How can I locate an accountant that can assist me with my tax return?

The easiest approach to discover a dependable accountant is to look for either a virtual service – which is typically more cost-effective due to a virtual accountant’s lower overheads – or a local accountant.

Local accountants have the advantage of being closer to you, making it easier to meet and address any issues or queries you might have. Physical records can usually be delivered to them in person.

Virtual accountants and freelance accountants typically charge slightly lower fees than traditional accounting firms. The disadvantage is that they may be a long distance away, so it’s always worth double-checking how the procedure works and what they’ll need from you in order to file your tax return.

A self-assessment tax return is required for everyone who is self-employed.

You will most likely be classified as self-employed if you are self-employed, run a small business that is not a limited company, or are in a partnership. This implies that your pay is not subjected to any tax or National Insurance deductions before it is distributed.

If you go from being employed to being self-employed, you must notify HMRC of a change in circumstances as soon as possible.

A wide range of people and businesses are obliged to file self-assessment returns:

  • Sole proprietorships
  • Landlords
  • Directors
  • Expats
  • High-earners with a salary of £100,000 or more
    Contractors from the Commonwealth of Independent States
    Investors


HMRC will normally send you a reminder letter at the end of the tax year if you are needed to file a tax return. If you were employed throughout the year and have since notified HMRC of your change in circumstances, this will happen.

Related Topic: What’s the difference between an accountant and a chartered accountant?

Previous Can you manage your small business accounts for free?
Next Do I Need an Accountant as a Contractor?
Table of Contents