Frequently asked questions about hiring an accountant

Do I need to file a tax return?

Yes. If you’re self-employed and earn more than £1,000 a year, you must file a Self Assessment tax return.

Can I do my tax return myself?

Yes, if you’re confident, HMRC’s online system is simple. An accountant helps if it’s complicated. Get up to 5 offers for accountants by filling out the form here at Accountant-offers.co.uk.

How do I file a tax return?

Online through HMRC, or your accountant can do it for you.

What happens if I miss the deadline?

HMRC charges a penalty. The longer you wait, the bigger it gets.

How much information do I need to give? 

Your income, expenses, bank statements, and any other earnings.

Can I change my tax return after submitting?

Yes, you can correct mistakes online within 12 months.

How long does it take to complete?

If all info is ready, a simple return takes a few hours; complex ones take longer.

When do I need to file a tax return?

You need to file every year if you’re self-employed, a company director, or have extra income. The usual deadline is 31 January after the tax year ends.

Do I need to pay tax when I file?

Not always. Filing shows what you owe; you usually pay by 31 January.

What if I have lost documents?

You can try to get copies from banks or HMRC. Accountants can help estimate if needed.

What if I missed last year’s return?

You should file it as soon as possible. HMRC will charge a penalty, but it’s better to send it late than not at all.

Do I need a local accountant to file my tax return?

No, not really. Accountants can work online, so you can use someone anywhere in the UK. It just helps if they know UK tax rules.

How much is it to hire an accountant to file tax return for a sole trader?

For a sole trader, it usually costs £150–£300 to get your tax return filed.

How much is it to hire an accountant to file tax return for a limited company?

For a limited-company director (filing a personal tax return) it usually costs about £300–£500+. If you also want the company’s accounts and paperwork done, it will be more depending on what you need.

How much will I pay in tax? 

It depends on your profit.

England, Wales, Northern Ireland (self-employed)

Your tax on profit works like this:
Up to £12,570 → no income tax
£12,571–£50,270 → 20%
£50,271–£125,140 → 40%
Over £125,140 → 45%
Plus:
Class 2 NI (small weekly amount if profit over £6,725)
Class 4 NI (paid on profits over £12,570)

Scotland (self-employed) — different bands

If you live in Scotland, income tax on your profit uses Scottish rates: Up to £12,570 → no income tax
£12,571–£14,876 → 19%
£14,877–£26,561 → 20%
£26,562–£43,662 → 21%
£43,663–£75,000 → 42%
£75,001–£125,140 → 45%
Over £125,140 → 48%

NI is still the same UK-wide.

Can an accountant help me reduce my tax?

Yes. An accountant can check your expenses, allowances, salary / dividend mix, and VAT options.

Can an accountant speak to HMRC for me? 

Yes. With your permission, an accountant can deal with HMRC on your behalf.

What software do accountants use?

Usually Xero, QuickBooks, or FreeAgent.

What documents are needed from me to file tax return? 

Your income, expenses, bank statements and any invoices. That’s usually enough.

Can an accountant help me claim expenses?

Yes, an accountant can show you what you can and can’t claim to lower your tax.

What happens if I’m late to file my tax return?

HMRC will charge penalties.

I am a sole trader. Do I need to register for VAT?

Only if your turnover goes over £90,000 a year, or if it benefits your business.

Can an accountant help me if I have cash jobs?

Yes. You must report all income. An accountant can help you do it correctly.

What is a confirmation statement?

It’s a yearly update for Companies House.