Do You Need A Tax Accountant To File Your Self-Assessment Tax Returns?
Is it fair to say that taxes are not for you to handle? This is a common complaint. Entrepreneurs often don’t know the aspects of fiscal responsibility they can handle and when it’s best to call a professional. A classic example is a tax return for self-assessment. Technically, you can do it yourself, but some argue that handing it over to an accountant is a better idea.
However, today, smart technology can help you fulfill your commitments with confidence, which is why a financial professional may not be the best for you.
How Does Self-Assessment Work?
Tax returns for self-assessment must be completed once a year on 31 October (for paper statements) or 31 January (for online statements). The return shows how much of your taxable income you earned in that tax year and lists any expenses or exemptions you can claim.
As part of the making tax digital program, which is being rolled out gradually, annual declarations are being replaced with quarterly updates. To do this, you need an HMRC online account. Tax returns require detailed attention. You must provide specific dates, numbers, and details of any special or social benefits to which you are entitled. No matter what you provide, you should be prepared to provide supporting evidence (such as invoices and receipts) to prove your claim should HMRC request it.
Providing inaccurate information is accompanied by financial penalties, such as not meeting the filing deadline, and penalties extending the time required to resolve the situation.
How a Tax Advisor Can Help
Tax accountants have a lot of experience. They deal with numbers every day, so they are very good at making sure all their numbers are added up. But they also know the rules: what you are entitled to and how you can reduce your responsibilities.
The cost of an accountant to complete a modest tax return is usually around £ 250 on average for a reputable business. It will be lower if you only need a very basic service and you can pay more if you have more complex queries.
Hiring an accountant will save you stress, but most importantly, it will also save you time. The amount of € 250 may seem reasonable considering the hours you will spend filling out your tax return.
Can You Do Your Tax Return Without A Tax Accountant?
If accountant fees are paid, some very small businesses or self-employed people have no money left. In addition, human error is always a risk. No matter how good an accountant is, he or she can still make mistakes and fall victim to unfortunate negligence and you will be held accountable. So yes, you can do it without the help of a tax advisor/accountant. In reality, anyone can file an accurate tax return without professional help.
But the fact is, many people are discouraged from completing their tax returns because of the pressure of getting the numbers right. This, along with a lack of financial confidence, prevents people from doing it themselves. The alternative is to use tax software that adds to your income and expenses throughout the year. As long as you enter your numbers carefully, your calculations will be 100%error free. This tool is very inexpensive and reduces your tax burden with just one click on the deadline.
Should You Do Your Tax Return Without A Tax Accountant?
You can always make your own statements using spreadsheets, calculators, and good bookkeeping. This is not as easy as using specialized tax and accounting software but is very possible if you are organized and know the amount. But you cannot ignore the fact that you have to file your tax returns once in a while whereas tax accountants have to attend to these matters on daily basis. Moreover, they are more experienced, qualified (in accountancy), and professional as far as the self-assessment returns are concerned. So they are much less likely to make any, mistakes in doing your taxes than yourself.
In any case, remember that an accountant is not required when submitting your tax return for self–assessment, but it is always the best option to choose. In an attempt to save a few pounds, you may face a tax penalty or worse – a tax investigation. So it is a good idea to let a professional find the right solution for your taxes.