Managing your tax obligations can feel overwhelming – especially when it comes to Self Assessment. Many taxpayers consider hiring a Self Assessment accountant to help simplify the process. Although this can save considerable time and effort, a Self Assessment accountant can be costly. This guide provides a breakdown of Self Assessment accountant costs, factors involved in pricing, and a much cheaper alternative.
What is a Self Assessment Accountant?
Self Assessment accountants are professionals specialising in preparing and filing Self Assessment returns for Income Tax. In doing so, they help sole traders, landlords and small business owners to meet their tax obligations while optimising their submissions to HMRC.
Although they may specialise in Self Assessment, accountants usually possess a range of competencies in addition to this. Other services might include tax calculations and providing advice on topics such as business expenses, VAT registration, and business partnerships.
Overall, Self Assessment accountants can be a way for individuals with trading income (or other income streams) to file their returns with less hassle and more professionalism. However, this usually comes at a price.
How Much Does a Self Assessment Accountant Cost?
The cost of hiring a Self Assessment accountant can vary greatly, depending on their expertise and the services required. As a general guide, our research suggests a typical range of £150 to £500 per Self Assessment tax return.
For landlords, you might be charged an extra fee per property. For instance, we found one accountancy firm charging a fixed fee of £179 (+ VAT) per Self Assessment. An additional fixed fee of £30 (+ VAT) is added per rental property.
Key Factors That Influence Self Assessment Accountant Costs
Fixed fee vs. hourly rate
Whereas some accountants might offer fixed-fee services, others might charge hourly rates. Choosing between these options can depend on the predicted complexity of your Self Assessment tax return. A basic Self Assessment might take only a short time for the accountant; in this instance, an hourly rate might be advantageous. If you suspect that your tax return might be complex, or if you are unsure, it might benefit you to choose fixed-fee pricing.
Chartered status
As with any profession, there are accountants with varying degrees of experience and qualifications. For example, you might encounter ‘chartered’ accountants. ‘Chartered status’ is an accreditation indicating significant experience and competence across a range of services. Chartered accountants will therefore often be qualified to assist with the most complex of financial scenarios; however, their services will come at a premium. It’s important to weigh up whether your Self Assessment warrants such a price.
Location
Depending on where you live, local accountancy costs may vary. For instance, accountants based in major cities such as London will likely charge higher rates due to higher overhead costs or in response to demand. If lower cost is a priority, it might be worth travelling outside the city when hiring your Self Assessment accountant.
Additional services
You can expect to pay higher fees if you have multiple income streams or require filing supplementary pages beyond the basic tax return. This could include foreign income, capital gains or business partnerships, as well as rental property income.
Self Assessment accountant costs might also increase if they are particularly experienced in a certain field or if you wish to consult them for advice. On the other hand, if your tax return is relatively straightforward and requires minimal one-to-one interaction, you might save money.
Regular vs. one-off payments
Depending on your requirements, it might be useful to engage an accountant with regular payments (often via a monthly subscription or annual retainer). This will mean that you always have an accountant on standby for support and advice.
If you already have a regular accountant, e.g. for your business’s bookkeeping, then Self Assessment filing might be included already as part of their service. Conversely, if you only require an accountant to file your annual return, then it is probably cheaper for you to pay as and when needed (i.e., once per year for your tax return).
What Services Are Included in Self Assessment Accountant Fees?
The bare minimum for a Self Assessment accountant is that they will prepare and file a basic Self Assessment. This is the main tax return for an individual’s Income Tax. In addition to filing the essential Self Assessment form on your behalf, there may be additional services.
Additional services typically offered by Self Assessment accountants:
- Private consultation to discuss your business and other income
- Filing supplementary pages (beyond the main tax return form)
- Calculating the amount of tax you owe
- Providing advice for your individual circumstances
- Recommendations to optimise your tax bill
- Guidance for financial record-keeping
Please note that these services might change soon with the introduction of MTD for ITSA.
Do You Need a Self Assessment Accountant?
As the name suggests: Self Assessment is designed for individuals to be able to submit their own returns. Accordingly, it might not always be necessary to hire an accountant: the Self Assessment process is usually relatively straightforward – especially if you use a user-friendly service like AbraTax.
However, there are some scenarios in which you might benefit from paying the Self Assessment accountant costs:
- You have extremely limited time
- Business is going well enough to justify the cost
- You want to maximise potential tax savings
- You wish to avoid potential errors which could lead to penalties
- There is advice you seek from a professional tax specialist
Tips to Save Money on Self Assessment Accountant Fees
If you decide to enlist professional help but want to keep costs down, consider the following:
- Have your business’s financial records in order before contacting the accountant
- Be clear on what you need from the accountant (to avoid paying for unnecessary services)
- Shop around to compare quotes between different accountants
- Decide between a fixed-fee service or an hourly rate in advance (depending on your circumstances)
- Plan ahead and don’t be caught in the rush before a deadline
How AbraTax Simplifies Self Assessment for Hassle-Free Tax Filing
AbraTax Self Assessment offers a streamlined, user-friendly service for your tax returns. At present, filing your Self Assessment with us is completely free. We offer wholly personalised tax returns, including supplementary pages, handy step-by-guide guidance, and complimentary tax calculations.
We are officially HMRC recognised and boast automated form validation (error checking), meaning that you can trust us to help you file returns smoothly and securely. Maximise your tax savings by opting for our free service today!
Conclusion
The cost of a Self Assessment accountant depends on factors such as complexity, experience, location, and additional services. With fees ranging from around £150 to £500, it can be a costly choice for your business. However, you can reduce costs by taking steps to prepare and deciding whether you really need such services.
A fantastic alternative is to make use of available online services such as AbraTax. Not only is AbraTax currently free, but we offer benefits such as step-by-step guidance and automated error checking! If you want to reduce costs to zero, why not register with AbraTax today?