Filing your self-assessment tax return may seem like a simple task, but getting it wrong can lead to overpaying tax, missing out on deductions, or facing HMRC penalties. Many people wonder whether they should handle it themselves or hire an accountant. The answer depends on the complexity of your finances, your understanding of tax rules, and how much time you want to spend on admin.
Here’s a breakdown of the pros and cons of doing your own self-assessment vs. hiring an accountant, so you can make the best decision.
Can I do my own self-assessment tax return?
If your finances are straightforward, you might choose to file your tax return yourself using HMRC’s online portal.
You could consider completing your own tax return if:
- You’re a PAYE employee but need to file for reasons like high earnings or child benefit tax charge
- You’re a sole trader with minimal expenses and simple income streams
- You have basic rental income from one property
- You’re comfortable navigating HMRC’s self-assessment system
- You have no major deductions or complex tax relief claims
Benefits of doing it yourself
- It’s free – You won’t have to pay accountant fees.
- You’re in control – You can manage everything yourself.
- Good for simple tax affairs – If your tax return is straightforward, it may not take long.
Risks of DIY tax returns
- Risk of mistakes – Errors can lead to HMRC penalties
- Missing tax reliefs – You might overpay by not claiming all deductions
- Time-consuming – Completing it properly takes time, especially if you’re unsure about the rules
- No professional support – If HMRC audits you or queries your return, you’ll have to handle it alone
Tip: If your return is simple, filing it yourself may be fine but if you’re even slightly unsure, speaking to an accountant can save you money.
Should I hire an accountant for my self-assessment tax return?
An accountant ensures your tax return is accurate, compliant, and as tax efficient as possible. If your finances are more complex, it’s usually worth the investment (not to mention the stress reduction!).
You should consider using an accountant for your self-assessment tax return if:
- You’re self-employed or a freelancer with multiple income streams.
- You run a limited company and take dividends.
- You own multiple rental properties or have overseas income.
- You claim capital allowances, business expenses, or tax reliefs.
- You’ve received an HMRC tax investigation notice.
- You’re unsure about how to declare earnings correctly.
Benefits of hiring an accountant
- Saves time and stress – No need to deal with HMRC forms or tax calculations
- Maximises tax savings – An accountant can identify deductions you might miss
- Ensures accuracy – Reduces the risk of errors and penalties
- Ongoing support – If HMRC has questions, your accountant will handle them
- Gives financial insights – Helps with tax planning, budgeting, and cash flow management
Are accountants worth the cost?
Hiring an accountant isn’t free, but in many cases, the savings they provide outweigh their fees.
Example: If an accountant helps you claim an extra £2,000 in legitimate expenses, but charges £900 for the service, you still save £1,100 in tax, PLUS the fee could be tax-deductible, further increasing your overall savings
Which option is right for you?
- If your tax return is simple and straightforward, you can likely file it yourself
- If you have business income, property, or complex tax reliefs, an accountant can save you money and reduce stress
- If you value peace of mind and financial clarity, working with an accountant is the best choice
Not sure whether to do your self-assessment yourself or hire an accountant? Our expert team can assess your situation and help you decide. Get in touch today!
0 Comments