How much does a personal tax accountant cost?

Price guide

£50 - £300

low

£50

median

£150

high

£300

Low, median and high bar chart distribuiton

How much does a personal tax accountant cost?

If you just started your own business, tracking your finances and keeping it in shape can be confusing and challenging. Navigating through the complex legal processes involved in running a business can already be a handful. Moments like the tax return filing season can get overwhelming! At times like these, a tax accountant can help. But how much do accountants charge for tax returns? 

Tax accountant costs vary depending on how complex your business is, your location, and the timing, if near or far from the deadline. The average cost of an accountant doing tax return filing is around £150. These could get higher and lower depending on the factors mentioned above and the purpose of consultation.

Whether you’re cramming to file taxes or just want to keep your business in check, we have made a comprehensive price guide to help you get up to speed and get everything accounted for.

What factors affect tax accountant costs?

Numerous factors affect how much an accountant costs for tax returns in the UK. The top factors to consider are the nature of work, size of business, and business timing. Each factor will be discussed below.

Size of business

When it comes to business, the general rule applies – the bigger and more complex your business is, the more items the accountant needs to review. Hence, the more expensive the costs.

For an annual self-assessment tax return, the accountant usually charges a one-off fee of £150 to £250. Of course, how much accountants charge for filing tax returns could go higher if you have bigger business and higher earnings, if you have other income-generating streams, or if you have fluctuating monthly income.

Business timing

If you are near the deadline of tax return filing, the cost of hiring an accountant to do taxes also increases. It’s best to always consult with an accountant ahead of time to save yourself the stress of cramming and the added costs of speeding up service.

Location

How much a personal tax accountant costs would also differ depending on your postcode. Services in London are more expensive compared to other areas. Keep this in mind while preparing your budget.

Nature of work

Accountants work with people from different types of trade. Each group would have different revenue streams and complexity of business hence different costs for tax return consultancy and filing:

  • Landlords

  • Investors

  • Traders

  • Contractors and freelancers

  • Limited companies

  • Business accounts

  • Expats, directors, and other high earners (minimum £100k income)

Each has different accounting service needs. These will be discussed below.

Different types of tax accounting services and their costs

As mentioned, there are different types of tax accounting services depending on your source of income. Keep in mind that late tax returns have corresponding penalties.

Type of accounting service

Price 

Notes

Individual tax returns

starts at £50

-

Property investor tax returns

starts at £250

-

Landlord tax return

starts at £150

Price estimate for two rental properties

Sole trader tax returns

£150 to £250

Can add on bookkeeping service (up to 100 bank transactions) for £120

High earning employee, investor, and pensioner tax returns

£100 to £350

Price estimate for employment, investment, pension, and/or other incomes (foreign, trust, or capital gains on shares)

Tax advice

£105

Price estimate for around one hour of service


Aside from tax return filing and advice, tax accountants also offer other services such as bookkeeping, annual accounts, monthly payroll returns, quarterly VAT returns, corporation and personal tax returns. These services can either be availed on a one-off project basis or a monthly recurring system.

If you have a small business requiring more than one service, you can also use these in a bundle or a package. Costs would differ depending on the size of the company or turnover and services to be availed.

Type of accounting service

Turnover

Price

Business accounts

 

 

£20,000 to £30,000

£150

£100,000 to £130,000

£400

£250,000 to £300,000

£600

Tax planning

£20,000 to £30,000

£125 to £150 per hour

Payroll

 

50 employees

£200 per month

100 employees

£500 per month

VAT returns

 

 

£0 to 100,000

£100

£100,000 to 200,000

£150

£200,000 to 400,000

£200

Basic accounting tasks

£20,000 to £30,000

£25 to £90 per hour

 

What are the benefits of hiring a professional accountant for tax returns?

Financial management is a serious business. A few digits or a few cents of excess or loss can be met with legal sanctions. Hiring a professional accountant will help you get peace of mind knowing calculations are accurate and all the deadlines are met in advance.

Aside from these, you can also seek help in automating repetitive administrative tasks and setting up accounting software through a professional accountant. Tools such as Xero makes cash flow tracking and bookkeeping so much easier by syncing payroll, bills, and other payments in one place. Xero works by keeping track of all your invoices in real-time. Since tools like Xero have a standard format, your accountant will spend less time browsing through countless receipts and books. This will help you save more on the final cost. Accountants can also generate quick, comprehensive reports and analyses to help you further grow your business. 

Hiring a professional accountant will not only help you save time and effort in doing it all by yourself. They can also advise you on claims and transactions, tax-saving strategies, and answers to specific queries like tax accounting for film production costs. It is a good investment in ensuring your business is sound, healthy, and abiding by new rules and government regulations.

Additional costs to consider when hiring a tax accountant

Other services such as administrative support, business consulting, and management will also add up to costs. Basic administrative support and accounting services are around £25 to £35 per hour while business consulting advice is more expensive and ranges from £125 to £150 per hour.

Filing your taxes doesn’t need to be stressful. Hiring a tax accountant is definitely a good investment, from filling out all the forms to ensuring all valid expenses are claimed. If you are ready to take the next step, Airtasker can connect you to trustworthy accountants near you.

FAQs

What information does my accountant need to file my tax return?

To be able to file your tax return successfully, your accountant will need your employment records in the form of P45 or P60 to state the amount of tax already paid, investment income with information on interest earned, pension certificates or letters if applicable, business records containing all income that has been received, all taxed earned, as well as taxes that have been deducted. Other transactions such as sold or purchased assets should also be disclosed to the accountant.

What qualifications should I look for in a tax accountant?

When hiring a tax accountant, membership in professional institutes and accrediting bodies will ensure they are legitimate and experienced in the field. Some important institutions to check out include the Institute of Chartered Accountants in England and Wales (ICAEW), the Association of Chartered Certified Accountants (ACCA), and the Institute of Financial Accountants (IFA).

How long does a tax accountant engagement last?

The length of a tax accountant engagement differs depending on the complexity of the job and the quality of data or records that you have. If you have clean and complete bookkeeping, the duration of the service could go as quick as two to three working days. However, if it’s your first time filing taxes, a typical duration would be a couple of weeks. Note that this could go longer if you require services other than tax return filing or started the engagement during the busy season. It would be best to consult an accountant weeks before the deadline to ensure you are on track with tax filing dates.