Do You Need an Accountant For Your Self Assessment?
Submitting your Self Assessment tax return each year is a task millions of people in the UK must do. Whether you’re a sole trader, landlord, company director or simply have some additional income outside of PAYE, Self Assessment is a yearly reality.
But a lot of people wonder if they actually need an accountant for their self assessment, and the short answer is no. Hiring a self assessment accountant isn’t required by law. However, it can help thousands of taxpayers every year complete their Self Assessment return more easily, accurately and can even save you money in the long run.
Firstly, what is Self Assessment?
Self Assessment is how HMRC collects Income Tax from individuals who don’t pay tax through PAYE. If you’re any of the following, you may be required to fill out a Self Assessment tax return each year:
- Self-employed or sole trader
- Receive rental income
- A company director
- Receive investment or dividend income
- Earn over £100k per year
- Have foreign income
Self Assessment deadlines are every year 31 January, with fines being issued on late submissions. Submitting after the deadline means you risk paying penalties and interest on your tax bill, as well as unnecessary stress.
Can You Do Your Self Assessment Yourself?
Do you need professional help with self assessment? No, you can do it yourself. Many people choose to complete their own Self Assessment each year. If your income/expenditure is simple, you only have one source of income, and you’re confident with using HMRC’s online portal, then doing it yourself may be a perfectly viable option.
That being said…
Completing your Self Assessment return isn’t just filling out boxes with numbers. You need to make sure you’re:
- Declaring the right amount of income
- Claiming allowable expenses and reliefs
- Meeting regulations set by HMRC
- Correctly keeping records should you be selected for enquiry
Any of these boxes can cause people problems and result in mistakes on their tax return. From missing valid expenses, declaring the wrong information, or simply making clerical errors.
Should I Get An Accountant For Self Assessment?
Legally you don't need an accountant, but you should strongly consider it if your financial situation isn’t as simple as described above.
A self assessment accountant can assist you with your tax return so you'll be sure it's completed accurately, on time, and trimmed down as much as possible. They’ll keep you compliant with HMRC regulations and lift a weight off your shoulders when tax season rolls around.
If you’ve got more than one source of income, you’re a business owner with expenses to declare, own rental properties, or are unsure about how to claim things correctly, it is definitely worth having a helping hand. A good accountant can save sole traders plenty of time too and even if your finances may not seem complex, it doesn’t hurt to have a second pair of eyes check everything is correct.
How Can An Accountant Save Me Money?
You’re not legally required to use an accountant for your Self Assessment, but it’s often a smart choice, particularly if your financial situation isn’t entirely simple.
A self assessment accountant can help ensure your tax return is completed correctly, submitted on time, and optimised to reduce your tax bill where possible. They’ll also keep you compliant with HMRC rules and remove much of the pressure that comes with tax deadlines.
Help Reduce Your Stress
Filing your Self Assessment can be a hassle and take up a lot of your time. Time you could be spending on your own business, or doing something you love.
Accountants that specialise in Self Assessment can help take the pressure off:
- Bid farewell to panicking when trying to meet deadlines
- No more worrying you’ll get hit with a Penalty or HMRC enquiry
- You regain time to do what’s important to you
- Have peace of mind that a trained professional has checked your tax return
When do You Need To Use An Accountant?
As mentioned above, you don’t have to use an accountant. But if any of the following apply to you, it’s highly recommended to get professional help.
- Newly self-employed
- Have more than one source of income
- Own one or more rental properties
- Are a company director
- Have more complex expenses/reductions
- Feel like your taxes aren’t that simple
Again, tax returns can seem daunting, especially if it’s your first year being self-employed. A good accountant can help you understand every step.
Phinch Can Help With Your Self Assessment
At Phinch, we offer Self Assessment services for the individual as well as business owners. Filing your first tax return? Need a professional to take on your annual Self Assessment? We aim to keep it as simple as possible.
We aren’t a company who will just input figures and submit. We’ll help you understand where you stand, reduce your tax bill where possible and keep you compliant with HMRC.
