Nobody looks forward to paying taxes, but it is an inevitable part of business for any company. Tax returns must be filed with HMRC every year, and is a routine affair for those familiar with it, but for the uninitiated it can quickly get complex. The internet is rife with questions about the world of tax returns. Among them is: Can I do my own taxes for a company? Let’s look into tax returns and try to clarify some of the detail.
Do I need an accountant to do my tax return?
Strictly speaking, you do not need an accountant to do your tax return. Anybody can file their own tax returns, for themselves or for the business entity they represent. However, this should only be a DIY affair if you really know what you’re doing.
Simply understanding the concept of tax is not enough. All UK-registered companies must also prepare their statutory accounts as an annual legal requirement. These go towards working out your corporation tax, and copies must be sent to HMRC, Companies House, and shareholders.
While it is not a legal requirement to have an accountant on board to handle tax returns and accounts, it ensures that no stone is left unturned and avoidable mistakes aren’t made. It also definitely pays to have the in-depth knowledge of an experienced accountant in areas such as tech, where intangible assets like software and patents can be turned into productive assets.
Is it worth getting an accountant to do your tax return?
The value of an accountant performing your tax returns is that they aren’t learning as they go along. Accountants – particularly senior chartered accounts like those that make up our team – already have a complete map of the process. This ensures no time is wasted and the job is getting done right.
Knowledge and experience go a long way with processes that have as many boxes to tick as corporation tax. And you don’t only want your statutory accounts to be organised to meet your legal obligations; they’re also important to providing a transparent overview of your company’s financial health.
Good accounts can put minds at ease, which is why management accounts can be a fruitful option to explore in between the obligatory annual accounts. Management accountants could help you identify trends in your finances earlier than an annual account might reveal, helping you correct course before the end of the financial year, or perhaps boost what is already looking healthy.
How much does an accountant charge to do your taxes?
This will vary depending on who you hire. The old saying is as true for accountants as it is for many things: you get what you pay for.
An experienced chartered accountant will have a charge for their services that reflects the quality and accuracy of the work they will do for you. Bear in mind that some of what you pay for an accountant can end up being offset by the money they can end up saving you with their insight and management skills.
For an accurate idea of how much a chartered accountant will cost you, it is best to get in touch and have a discussion. We’re here to help and happy to answer any questions you might have.
How much does a personal tax accountant cost?
Different individuals will charge different amounts, and may structure the remuneration for their work in different ways. The average cost region falls around £200-£300 and this may be paying per hour or it could be a flat fee for the work and everything that goes into it.
Again, you do get what you pay for, and it’s always best to outline fees with an accountant before committing to their services. Any trustworthy and ethical individual will be more than willing to outline their charges with you.
What to take to an accountant for a tax return
Accountants need quite a lot of information to effectively handle a tax return. This involves bank statements, loan statements, your sales income, and payroll records. Your accountant will outline everything they need from you with plenty of advance warning.
For entities like startups, you may find that a lot of this information will be simpler to source and provide if you have been using an accountant since the early days.
How to check if my accountant filed my taxes
In these modern digital times, much of the process is handled online. The HMRC portal will generate a submission receipt once your tax return has been filed, though it may need a few days to update after the date of submission.
If needed, you can ring HMRC and quote the reference number to ensure that everything has been logged as it should have been, though it’s doubtful you will ever find your accountant trying to shirk this important responsibility.
How to find a good tax accountant
Good accountants should have experience they can boast about and testimonials that evidence the good work they’ve already done for others.
With Venn Accounts, you can trust that we know exactly how to handle your tax returns.
We are a team of experienced, senior chartered accountants working through cloud software to make our jobs as effective for you as possible.
Our bespoke approach to each client ensures we understand your business inside and out, leaving you with a clear head when annual deadlines start to roll around.
To learn more about how we excel in accounting, contact Venn Accounts today.