Do I Need an Accountant to Do My Self-Assessment in 2026?
Self-assessment tax returns are a part of life for many in the UK. Whether you’re a sole trader, a limited company director, or someone with rental income, filing your tax return correctly and on time is crucial. But do you really need an accountant to file it, or can you manage on your own? This guide will help you understand your options and make the right choice.
What is a Self-Assessment Tax Return?
A self-assessment tax return is the process of declaring your income and expenses to HMRC to calculate the tax you owe. While employed people usually have their taxes handled through PAYE, others must complete a self-assessment, such as:
– Sole traders or freelancers.
– Directors of a limited company.
– Individuals earning rental income.
– Anyone earning more than £1,000 outside of regular employment, such as from side hustles or investments.
To complete a self-assessment tax return, you’ll need details of your gross salary, business costs, and any benefit in kind you’ve received. The deadline for filing your tax return online is 31 January following the end of the tax year.
Can I complete my own self-assessment?
The Benefits of DIY Filing
Many people choose to handle their self-assessment themselves using HMRC’s online portal. It’s free to use and comes with guidance to help you through the process. If your finances are simple, like having a single source of rental income or a straightforward side hustle, DIY filing can save money on accountant fees.
Challenges of DIY Filing
However, filing your self-assessment isn’t always straightforward. Mistakes in calculations, forgetting to claim tax relief, or missing allowable business costs could mean paying more tax than necessary. Worse, missing the deadline can lead to fines.
Why You should Hire an Accountant?
For many people, hiring an accountant to file their self-assessment is worth the cost. Here’s why:
1. Accuracy and Compliance
Accountants are experts at ensuring your tax return is accurate and complies with HMRC regulations. They’ll ensure every detail is correct, from your gross salary to complex income and expenses, reducing the risk of errors.
2. Time-Saving
Sorting through receipts, invoices, and other financial records can be time-consuming, especially if you run a small business. An accountant takes this burden off your hands, letting you focus on running your business or spending time with family.
3. Identifying Tax-Saving Opportunities
Accountants are skilled at spotting ways to save money. They’ll help you claim tax relief on allowable business costs and even flag deductions for things like travel, office expenses, or equipment.
4. Peace of Mind
Perhaps the biggest advantage is the peace of mind that comes with knowing your tax return is in good hands. You won’t have to worry about errors, penalties, or missed deadlines.
How much does it cost for an accountant to do a self-assessment?
The cost of hiring an accountant varies based on your circumstances. For a straightforward self-assessment, fees might range from £175 to £300. More complex cases, such as for limited companies or individuals with multiple income streams, may cost more.
When comparing costs, remember that an accountant might save you money by reducing your tax bill or helping you avoid fines.
When Should You Hire an Accountant?
While many people can manage DIY filing, some situations make hiring an accountant highly beneficial. These include:
– If you’re a sole trader with high turnover and complex business costs.
– You’re the director of a limited company managing dividends and salaries.
– You receive a benefit in kind or have multiple sources of income, such as a gross salary and rental income.
– If you’ve made mistakes in the past and want to avoid future penalties.
– You’re new to filing your tax return and feel overwhelmed by the process.
How to Choose the Right Accountant
What to Look for in an Accountant
Not all accountants are the same. Look for someone qualified, experienced in your field, and familiar with your type of self-assessment. For example, if you’re a small business owner, choose an accountant who specialises in small business taxes.
Questions to Ask Before Hiring
Before hiring an accountant, ask:
- What are your fees, and what’s included?
- Do you have experience with self-assessment for people in my situation?
- Can you provide references or testimonials?
Can You Afford to Ignore Self-Assessment?
Failing to file a self-assessment on time can lead to fines starting at £100 and increasing if delays persist. Worse, HMRC may estimate the tax you owe, which can often be higher than the actual amount. Whether you choose DIY or hire an accountant, make sure your return is submitted by 31 January.
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Conclusion
Whether you’re a sole trader, a small business owner, or someone with a limited company, deciding whether to hire an accountant for your self-assessment depends on your circumstances. If your finances are straightforward, you may be able to handle filing your self-assessment yourself. However, if your situation is more complex, an accountant can save you time, reduce your tax bill, and provide peace of mind.
Make the right choice to ensure your self-assessment is accurate and stress-free. Remember, the deadline for filing your tax return is just around the corner, don’t leave it until the last minute!
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