How much does a personal tax accountant cost?
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Price guide
£50 - £300
low
£50
median
£150
high
£300
Last Updated on
If you just started your own business, tracking your finances can be confusing and challenging. Navigating the complex legal processes involved in running a business can already be a handful, especially tax return filing. At times like these, a tax accountant can help. But how much does a tax accountant cost in the UK?
Hiring an accountant for tax return filing usually costs £150. It could be higher and lower, depending on the purpose of the consultation. Whether you’re cramming to file taxes or just want to keep your financial records accurate, this guide will help you set a budget for hiring a personal tax accountant.
Tax accountant price list
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 |
What factors affect tax accountant costs?
Numerous things affect the cost of accountants for tax returns. The top factors to consider are business size and timing, your location, and the type of service. Each factor will be discussed below.
Business size
When it comes to business, the general rule applies:Â the bigger and more complex your business is, the more items the accountant needs to review.
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 be higher if you have bigger business and higher earnings, if you have other income-generating streams, or if you have a fluctuating monthly income.
Business timing
If you're near the deadline for tax return filing, the cost of hiring an accountant to do taxes also increases. It’s best to always consult an accountant ahead of time to save yourself from the stress of cramming and the added costs of speeding up the service.
Your location
How much a personal tax accountant costs also depends on your area. Services in London are more expensive compared to those in other areas. Bear this in mind while preparing your budget.
Nature of work
Accountants work with people from different industries. Each group has unique revenue streams, hence the different costs of 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
Tax accounting services depend on your source of income. Remember that late tax returns have corresponding penalties. Aside from tax return filing and financial advice, tax accountants offer services such as bookkeeping, annual accounts, monthly payroll returns, quarterly VAT returns, and corporation and personal tax returns. These services can be requested on a one-off or monthly basis.
If you have a small business requiring more than one service, you can also get a service bundle or package. Costs depend on the size of the company and the services to be availed.
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 |
Additional costs to consider when hiring a tax accountant
Other services such as administrative support, business consulting, and management will also increase 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.
| See also: Financial Advisor Cost Guide |
Reasons to book a professional tax accountant
Financial management is a serious business. Minor inaccuracies can result in legal sanctions. Hiring a professional accountant will help you get peace of mind knowing that your calculations are accurate and all the deadlines are met in advance.
You can also seek help in automating repetitive administrative tasks and setting up accounting software. Tools such as Xero make cash flow tracking and bookkeeping so much easier by syncing payroll, bills, and other payments in one place. Accountants can generate quick, comprehensive reports and analyses to help you further grow your business.Â
Finally, a professional accountant can advise you on claims and transactions and tax-saving strategies. Hiring one can help ensure that your business abides by new or current government regulations.
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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 checking if all valid expenses are claimed. If you are ready to take the next step, Airtasker can connect you to trustworthy accountants near you.
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FAQs
To file your tax return successfully, your accountant will need to have your bank statements; payment summaries; buy and sell investment statements; and foreign income details. They might also need documents on your work-related costs, health insurance policies, and donations.
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 are the Institute of Chartered Accountants in England and Wales (ICAEW), the Association of Chartered Certified Accountants (ACCA), and the Institute of Financial Accountants (IFA).
The length of a tax accountant's engagement depends on the complexity of the job. If you have clean and complete bookkeeping, the duration of the service could go as quickly as two to three working days. However, if it’s your first time filing taxes, it might take a couple of weeks. Note that this can be longer if you require services other than tax return filing or start the engagement during the busy season.
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