Filing a tax return can feel complicated, so many people hire an accountant to help.
But how much does an accountant in Milton Keynes cost to file your tax return?
In this guide, we’ll explore the average costs, what influences those prices, and why hiring an accountant could be worth it.
What is the cost for an accountant to file a tax return in Milton Keynes?
The cost of hiring an accountant in Milton Keynes can vary depending on how complicated your financial situation is. Here’s a breakdown:
Basic PAYE tax return
If you only need to file for income from your job (PAYE), the cost is typically £150 to £200. This is for a simple return where all taxes are already handled through payroll.
Self-employed with simple expenses
If you’re self-employed or a freelancer with straightforward income and basic expenses, you can expect to pay approximately £200. This covers cases where you’re responsible for tracking income and expenses but don’t have any complex tax situations.
Complex scenarios
For more complicated tax returns - like if you own multiple properties, have foreign income, or manage a large investment portfolio—the cost can exceed £1,000. This is because these returns require more time and attention from the accountant to ensure everything is filed correctly.
Factors that influence the cost of a tax return
Several things can affect how much an accountant charges to file your tax return:
Complexity of your financial situation
The more income streams or assets you have, the more complex your tax return becomes. For example:
- Self-employment. You’ll need to account for business income, expenses, and potentially VAT.
- Rental income. If you own property, you’ll need to report income and expenses related to the property.
- Foreign income. Income from abroad can require extra calculations and understanding of international tax rules.
Type of accountant in the UK
- Chartered accountants. These accountants are fully qualified and often charge more because of their expertise.
- Freelancers or smaller firms. These professionals may offer lower fees but could provide fewer services or work on a more limited basis.
Location, such as Milton Keynes
Where your accountant is based can affect the price too. Accountants in Milton Keynes or large cities tend to charge more, while those in smaller towns or villages near Milton Keynes may be more affordable.
Online services
Our recommended provider typically offers a more affordable service since they don’t have physical offices in Milton Keynes.
Tax services included
Some Milton Keynes accountants offer more services than others. In addition to filing your tax return, they may offer:
- Year-round tax advice. You may receive ongoing guidance for reducing your tax bill.
- Bookkeeping. You may get help keeping your accounts organised throughout the year.
- Representation with HMRC. If HMRC investigates your tax return, an accountant may handle the communication on your behalf.
3 reasons to hire an accountant
Why should you hire an accountant instead of filing your tax return yourself? Here are three key reasons:
Tax savings
Our recommended provider can help identify deductions or tax reliefs you might miss, such as claiming business expenses if you’re self-employed or charitable donations for tax relief. This can save you more money than the accountant’s fee.
Avoiding errors and penalties
Mistakes on your tax return can lead to fines or penalties from HMRC. Accountants ensure everything is accurate, reducing the risk of errors that could lead to costly mistakes.
Peace of mind
By using our recommended provider, you don’t have to stress about whether you’ve done everything right. They take care of the hard work for you, giving you peace of mind knowing your tax return is filed correctly.
Don’t become a tax ghost or moonlighter
Watch this video to find out how HMRC are tracking down people who don’t pay their taxes.
Tax return accountant fees FAQs
How long does it take for an accountant to complete a tax return?
For a straightforward tax return, it usually takes 2-3 weeks from start to finish with our recommended provider, depending on how organised your financial records are and how complex your tax return is.
What happens if I need to amend my tax return after it’s filed?
If you discover a mistake after filing, you can submit an amendment. Many accountants charge extra for amendments, with fees ranging from £50 to £150, depending on the complexity of the changes.
Can I switch accountants during the tax year?
Yes, you can switch accountants anytime. However, it’s important to notify your current accountant and ensure all your records are transferred properly to the new one.
Do I need an accountant if I use tax software?
If your tax return is simple, accounting software like Quickbooks, FreeAgent, or Xero might be enough. However, if you have multiple income streams, investments, or need help identifying deductions, an accountant in Milton Keynes can offer more tailored advice.
What happens if your accountant makes a mistake?
If your accountant makes a mistake on your tax return, they are usually responsible for fixing it. Accountants should have professional indemnity insurance, which covers any penalties or legal issues that arise due to their error. Always ask about this insurance before hiring an accountant to ensure you’re protected if something goes wrong. However, it’s important to understand that HMRC holds you responsible for what is filed, regardless of who prepared it. When you sign off on a return, you’re confirming you’ve reviewed and agree with everything submitted.
Accountant certifications and qualifications explained
Not all accountants are the same. Here’s a breakdown of the different types:
- Chartered accountant. Chartered accountants (like those certified by ICAEW or ACCA) have undergone rigorous exams and training. They tend to charge higher fees but offer high levels of expertise.
- Certified Public Accountant (CPA). This qualification is more common in the US but is recognised internationally. CPAs are experts in tax law, financial reporting, and more.
- Bookkeepers vs accountants. Bookkeepers help manage daily financial records, but an accountant will handle tax returns, advice, and complex financial reporting. It’s important to know the difference when hiring an accountant in Milton Keynes.
How to switch accountants
If you’re unhappy with your current accountant, it’s possible to switch. Here’s how to do it:
- Notify your current accountant. Let them know you’ll be changing accountants.
- Transfer records. Your current accountant will need to provide all necessary financial records and documents to your new accountant. Make sure this is done smoothly to avoid delays.
- Check for costs. Some accountants charge a fee for transferring records or for work done up to the point of the switch.
Confused about complex tax rules?
Professional tax advice can help you save money and avoid costly mistakes.
For a stress-free experience, we advise using our recommended provider.
Are there alternatives to hiring an accountant?
While hiring an accountant is often helpful, especially for more complex financial situations, there are some alternatives to consider:
DIY tax returns in the UK
If your tax situation is very simple (for example, you’re only employed under PAYE with no additional income), you might be able to file your tax return yourself using HMRC’s online self-assessment tool. It’s free, and HMRC provides guidance along the way.
Tax software
There are many tax software options that can help you file your return without needing an accountant in Milton Keynes. Popular options like FreeAgent, QuickBooks, or Xero guide you through the process and are great for self-employed people or small businesses. These services usually charge a subscription fee, which ranges from £10 to £35 per month, depending on the software.
Pros and cons of using tax software
- Pros. Cheaper than hiring an accountant, easier for simple returns, automated calculations.
- Cons. Doesn’t provide personalised advice, limited in identifying tax savings, less helpful for complex tax situations.
When is using our recommended provider worth it?
While you can handle your tax return on your own or with software, our recommended provider is a good idea if:
- You have multiple income streams, such as self-employment, rental income, or foreign earnings.
- You need help with capital gains tax from selling property or investments.
- You’re unsure about the deductions or tax reliefs you can claim.
- You want peace of mind and avoid mistakes that could lead to penalties.
- You prefer a professional to handle complex tax rules, ensuring your tax return is filed correctly.
Final thoughts
The cost of hiring an accountant to file your tax return varies based on your situation, but the benefits they offer - such as tax savings, accuracy, and peace of mind - can be well worth the price.
Whether you decide to file yourself, use tax software, or use our recommended provider, understanding the fees and what to expect helps you make the best decision for your financial needs.
About the author
Jon Dell is a Chartered Accountant who qualified at PwC, the largest professional services firm in the world. He has worked internationally as well as across the public and private sectors. He now has his own practice where he works on both personal and Limited company taxation services. His particular focuses are property income and taxation as well as medical outsourcing companies.
