How Much Do Accountants Charge for Self Assessment?

Time-saving and stress reduction

Completing a self-assessment tax return can be time-consuming and stressful, especially if you’re unfamiliar with the process or have a busy schedule. Accountants can take this burden off your shoulders, freeing up your valuable time and energy for other priorities.

• Efficient handling of paperwork: Gathering and organizing the necessary financial documents can be a hassle. Accountants streamline this process, ensuring everything is in order and submitted on time.
• Meeting deadlines: Missing the self-assessment deadline can result in penalties. Accountants keep track of important dates and ensure your return is filed promptly.
• Peace of mind: Knowing that a qualified professional is handling your tax affairs can provide invaluable peace of mind. You can rest assured that your return is accurate, compliant, and submitted on time.

Maximising tax efficiency

Perhaps the most significant benefit of hiring an accountant is their ability to help you minimise your tax liability legally. They can identify potential exemptions, deductions, allowances, and reliefs that you may have overlooked, potentially saving you a substantial amount of money.

• Identifying tax-saving opportunities: Accountants are skilled at finding ways to legally reduce your tax bill. They can advise you on strategies like pension contributions, charitable donations, or utilising tax-efficient investment vehicles.
• Claiming all eligible expenses: If you’re self-employed, claiming all allowable business expenses is crucial for minimising your tax burden. Accountants can help you identify and accurately report these expenses, ensuring you don’t pay more tax than necessary.
• Optimising your tax position: Accountants take a holistic view of your finances, considering your income, assets, and future goals. They can provide personalised advice on how to optimise your tax position, both now and in the years to come.

Average costs of self assessment accountant fees in the UK

There’s no magic, one-size-fits-all number when it comes to accounting fees and how much do accountants charge for self assessment. Just like any professional service, the cost is influenced by the complexity of the task at hand.

For straightforward personal tax returns, the price might be lower, but for a small business owner or a corporation dealing with corporation tax returns and payroll returns, the accountant services required can be more intricate. Tax accountants specialize in areas like record keeping and tax advice that not only help save money but also ensure accuracy and compliance.

The advice cost may increase if your needs involve complex tax issues or detailed business planning advice.

Similarly, personal tax management and guidance for company turnover reflect in the bespoke services tailored to each client. Whether you’re a business owner seeking robust tax advice or an individual aiming to streamline your finances, investing in professional accountant services can provide substantial returns on your investment.

Factors that impact how much do accountants charge for self assessment

Let’s dive into the key elements that affect what an accountant will charge you:

1) Complexity of your tax situation

The more intricate your financial affairs, the higher the fee you can expect. Several factors contribute to this complexity:

• Number of income sources: If you have multiple streams of income, such as employment, self-employment, pensions, or investments, your tax return will be more complex than someone with just a single income source.
• Business structure: If you’re self-employed, the type of business structure you have (sole trader, partnership, limited company) will impact the complexity of your return. Limited companies, for example, typically require more extensive accounting work.
• Property income: If you own rental properties, the income and expenses associated with them need to be accurately reported, adding another layer of complexity.
• Investments: Investments like shares, bonds, or funds can generate taxable income and potentially capital gains, which need to be calculated and included in your return.

2) Experience and location of the accountant

The expertise and geographical location of your accountant play significant roles in determining their fees.

Chartered vs. Certified accountants

Chartered accountants often command higher fees due to their extensive qualifications and rigorous training. They’ve completed advanced studies and gained substantial experience in the field. On the other hand, certified accountants, while still highly competent, may offer more competitive rates.

Regional variations in pricing

Location significantly impacts how much do accountants charge for self assessment. In major cities like London, Birmingham, or Manchester, you’ll typically encounter higher rates due to increased operating costs and demand. Rural areas and smaller towns generally offer more affordable options. However, with the rise of remote services, you may find competitive rates from accountants outside your immediate area.

3) Additional services

Some accountants offer services beyond just completing your self-assessment tax return. These additional services can significantly impact the overall cost. Here are a few examples:

• Year-round bookkeeping: If you want an accountant to maintain your financial records throughout the year, this will be an additional cost. It’s a valuable service, especially for businesses or those with complex finances, but it comes at a price.
• VAT returns: If you’re VAT registered, you’ll need to submit regular VAT returns to HMRC. Accountants can handle this for you, but it will be a separate charge on top of the self-assessment fee.
• Tax planning advice: Accountants can provide proactive advice on how to minimise your tax liability legally. This can be a valuable service, particularly for higher earners or those with complex financial arrangements, but it often comes with a premium fee.
• Business consultancy: Some accountants offer broader business consultancy services, such as helping you with financial forecasting, business planning, or even just general business advice. These services can be incredibly beneficial, but they typically come with a higher price tag.

Consider which of these additional services, if any, you might need when budgeting for your accountant’s fees.

Finding a good deal on an accountant

Now, how about a good deal without compromising on quality? When it comes to how much accountants charge for self-assessment, a cheaper accountant isn’t necessarily better. A good accountant will typically charge based on the complexity of your financial situation.

Consider your tax needs, and research different accountants in your area or online accounting software providers. Firms offer various levels of service from basic accounting to more specialized advice, which means costs vary. It’s beneficial for self-employed people to use accounting software that can simplify quarterly VAT returns and streamline their basic self-assessment process.

Ask for quotes from multiple accounting firms so you can compare. Look for a fixed price option if possible, as this can help manage UK cost expectations without surprises. The filing deadline can influence rates, so planning ahead can be advantageous.

Remember, the tax year and your specific needs may cause the rates to vary based on the time and complexity required by your accountant.

How much do accountants charge for self assessment?

The cost to hire an accountant can range from £150 to £350 or more depending on the factors mentioned previously.

Remember how much do accountants charge for self assessment will be tailored to your specific financial situation and business accounts. For example, capital gains will increase the cost, but basic tax returns will be cheaper.

Typical accountancy fees: