What are the Reasons to Hire a Tax Accountant to do Your Taxes?
Tax returns. Love it or hate it, they're a big part of the business year for successful entrepreneurs like you. They show that you are making progress and earning money. However, it can be difficult to find time for all the administrators involved in launching a small business.
Could outsourcing to a tax accountant be the answer? Read on to find out.
How a Tax Accountant Can Help?
Accountants bring significant skills to light. They process the numbers every day, so they do a great job of making sure all your figures add up. But more than that, they know the rules: what you are entitled to and how you can reduce your obligations. The accountant's fee is usually around £ 250 for completing a simple tax return for a reputable company. It will be less if you just need a very simple service and you can expect to pay more if you have a more complex business.
Hiring an accountant will save you stress, but most importantly, it will save you time. £ 250 can be quite reasonable when you think about how many hours you would spend without filing your tax return yourself.
Outsourced Accounting Can be Less Stressful
Imagine, you are in charge of your small business for a while, you are making a good profit, and you start attracting more customers, which increases your workload. You like to take most things into your own hands - after all, that's your business. But when it comes time to file your tax return, it can be difficult, especially if you don't know how to file taxes.
Even a simple mistake can lead to the unfortunate possibility of HMRC investigating your case, putting undue stress on your part. There is also a question of time. For some people, as freelancers, delegating time between work and accounting is a little easier, but for other small businesses, it seems like a tall order, especially with a busy schedule already in place. There is no small business in the world that would not benefit from more free time, right?
Get Help with Audits
An audit can be a stressful and challenging experience. If you are subject to a government tax audit, a tax advisor can guide you through the tax audit process and then ensure that your business does not violate tax laws after the tax audit. Professionals know the ins and outs of UK tax laws, codes and regulations. These complex rules are constantly changing. Some tax advisers also offer audit insurance to help cover costs if your business is audited by HMRC.
Hiring an Accountant Can Be a Good Investment
Tax accountants have experience working with a variety of companies. You may have just discovered that the accountant you hire for your tax return fits perfectly into the rest of your company's finances. These professionals are highly skilled in this field, and more experienced accountants are likely to handle tax returns in a variety of situations. It can be difficult to delegate when your company is a kid, but remember that having someone take care of this allows you to focus on achieving your goals.
Maximize Your Returns
Tax advisors keep up to date with the deductions, credits and incentives available to businesses that file their taxes each year. Often the government offers incentives and loans to start-ups or small businesses just to keep their business as usual. Your accountant will check if you also need any documents or additional documents.
A tax professional can even find deductions you didn't even know you could claim. With fresh eyes and extensive industry experience, your tax return will be elevated. Calling on a tax advisor relieves your company and your employees. With someone else tracking your income, expenses, and deductions, you can focus on running your business. A tax advisor for your business means increased performance and a stress-free year.
How Much Do Accountants Charge to File Tax Returns?
When looking for a tax accountant, it is worth contacting different companies for quotes, as the cost of filing a tax return can vary widely. Therefore, it is impossible to give an exact figure, but below we will discuss some general factors that can affect the price.
Frequency: For example, some companies charge by the hour, while others offer fixed fee.
Complexity: The amount you can pay for a return will likely depend on the complexity of your return, your state of residence and tax base, and the number of sources of income.
Niche: Also remember that some companies specialize in specific industries and sectors that might suit your situation, whether you are based abroad with UK income, self-employed or in a specific industry such as housework. entertainment. or agriculture.
Accreditation: Finally, it is also worth checking if your preferred business is accredited, either by a professional body such as ICAEW or ACCA or by a professional tax authority such as CIOT.
Things to Remember
Before you decide to hire an accountant, there are a few things to keep in mind:
● Any tax return filed late, even by an hour, can result in a £100 fine. In addition, there are penalties even for subsequent shipments. In total, you could rack up £1,600 if it isn’t done correctly.
● Tax laws are always changing, so keep an eye out for changing regulations before you start filing taxes yourself. With Brexit events likely to transform the country, it's now even more important to know your stuff.
Whether you hire an accountant just for a tax return or full-time, their job is to help you keep your money in shape. Hiring one can save you much more money and time in the future. However, for some, it is necessary to do a self-assessment without an accountant. If this is your case, fear not.
If you are a relatively tax-conscious person and have a simple business, you should be able to prepare your own self-assessment tax return. However, taxpayers who are not as tax conscious, have more complex cases, or need to file a corporate tax return should consider hiring a CPA to help prepare their tax returns.
Tax return prices can vary widely. So the key is to always do your research, make sure the accounting firm understands your situation, and verify that the firm is appropriately qualified for the job.