Accountant or self submitting tax returns

jcorbygas

Hi - we have used a chartered accountant for 13 years for submitting my husbands self employed tax assessment.
I supply sheets filled out with all expenses and earnings for each month and the accountant fills in the tax return, and submits online.
The bill for the accountant has gone up each year so we owe them £800 for this year.
I have always used this firm as I felt that because they were a well respected company that the tax office would less likely look for any problems with our business/investigate us.
However, I was thinking of submitting our own tax return for next year using a tax calculation programme ie taxcalc so that we could save a lot on the accountants fee.
I am quite capable of doing this but am worried that maybe Inland Revenue would start wondering why we have suddenly changed and start looking into things - has anybody else started doing their returns themselves after using an accountant or would you suggest I just find a cheaper accountant?
Any thoughts/advice gratefully received.

heretolearn_2

£800 is a lot just for a straightforward tax return - are they producing some sort of accounts for you as well for this? Do you have any other complications (properties you rent out etc?) Our fees for a straightforward return would be around £220 -£300, and we try and keep fairly mid-range fee-wise. It tends to be tax-planning work that increases the fees - if your accountant is doing this and saving your OH a lot of tax, then the fee is worth it.

POPPYOSCAR

jcorbygas wrote: »

Hi - we have used a chartered accountant for 13 years for submitting my husbands self employed tax assessment.
I supply sheets filled out with all expenses and earnings for each month and the accountant fills in the tax return, and submits online.
The bill for the accountant has gone up each year so we owe them £800 for this year.
I have always used this firm as I felt that because they were a well respected company that the tax office would less likely look for any problems with our business/investigate us.
However, I was thinking of submitting our own tax return for next year using a tax calculation programme ie taxcalc so that we could save a lot on the accountants fee.
I am quite capable of doing this but am worried that maybe Inland Revenue would start wondering why we have suddenly changed and start looking into things - has anybody else started doing their returns themselves after using an accountant or would you suggest I just find a cheaper accountant?
Any thoughts/advice gratefully received.

Sometimes its a case of 'better the devil you know'.

Our accountants fees have increased considerably over the years but we have now negotiated a lower price with them and ask every year for a quote, although I know we could get it cheaper elsewhere.

We feel it better to have an accountant rather than do it ourselves as we might think we know what we are doing but they should know!!!

paddyrg

You can negotiate. You can move. I've done both, in fact moving from a cheaper accountant to a slightly dearer one for better service.

Horace

My previous accountant charged me £70 for submitting my self assessment and producing a set of accounts which was ok until I wanted some business advice regarding VAT, going Limited etc and then they were nowhere to be seen and started avoiding meetings and calls. I have a new accountant who is dearer (not by much) but he gives me some decent business advice too.

£800 seems an awful lot for an accountant - I would re-negotiate his fee or find another one.

POPPYOSCAR

Horace wrote: »

My previous accountant charged me £70 for submitting my self assessment and producing a set of accounts which was ok until I wanted some business advice regarding VAT, going Limited etc and then they were nowhere to be seen and started avoiding meetings and calls. I have a new accountant who is dearer (not by much) but he gives me some decent business advice too.

£800 seems an awful lot for an accountant - I would re-negotiate his fee or find another one.

Are you sure that was for a qualified accountant and not just a book-keeper. I have never heard of an accountant being so cheap.Looks like he/she wasn't if they could not give you vat advice etc.In fact our accountant contacted us when the rules changed re Limited Companies and asked us to make an appointment to go in and discuss this with them.

Our accountant charges for preparing the accounts and also charges for preparing and submitting 2 tax returns.Last year we paid £805 including vat.The cheapest we could find was around £500 and that was a one man band who said that he does everything in writing and does not use a computer so returns would not be made online.

angelpie1000

£800 - WOW

I suspect you are with a large accountancy practice (as their fees tend to be higher), however unless they are providing mcuh more beyond a simple self assessment calculation and return, this is over-priced.

Sometimes having an accountant is worth paying for, just to give you piece of mind and relieve some of the worry. I would suggest you speak to a few other accountants (most offer free consultations). Go armed with a list of questions and go with the one that provides you with the service you want, is someone you can work with and at a fee you are happy with.

Having said that, there are some people who are happy to submit their own returns, it is possible.

Good luck
Karen

PS My fees for a self assessment return start at £120 (incl VAT)

jcorbygas

Thanks everyone for your input - I do think that £800 is a lot for what they do, and they dont give advice - if I have a query they answer it but that is all.
So - I will look around and get some quotes from other accountants and then make up my mind.

Jackie

Horace

POPPYOSCAR wrote: »

Are you sure that was for a qualified accountant and not just a book-keeper. I have never heard of an accountant being so cheap.Looks like he/she wasn't if they could not give you vat advice etc.In fact our accountant contacted us when the rules changed re Limited Companies and asked us to make an appointment to go in and discuss this with them.

Our accountant charges for preparing the accounts and also charges for preparing and submitting 2 tax returns.Last year we paid £805 including vat.The cheapest we could find was around £500 and that was a one man band who said that he does everything in writing and does not use a computer so returns would not be made online.

They claimed they were qualified but when I came to complain about the company, I found that the 'accountant' was a client manager and didnt own the company at all. It has taken her quite a few months to return my receipts - after claiming that she never received them but then couldnt explain how she did my return without receipts. My new accountant charges £175 (probably per hour although I think it is a fixed fee), I am clearer in my mind about VAT, becoming Limited (nowhere near ready for that just yet but may register voluntarily for VAT in the next financial year). I have a clearer plan of action. This new firm even rang me up in January to make sure that I had submitted my tax return..it was done in June and I got a small rebate.

I would much rather an accountant do my return because I know that I will only make a pig's ear of it..having done one on my own before for a previous business so it is easier for an accountant because he knows what to claim for and what not.

martindow

From reading these posts it is not at all clear what the accountant is doing and you need to ask them. I get the impression that you doing all of the work and giving figures to the accountant who is doing little more than entering them on the HMRC site and pocketing the money.

If the business is much the same from year to year you presumably are using the same criteria to decide what to enter as expenses in your books. I don't see there is any need to use an accountant to file your return apart from your original query as to whether this would flag you up with HMRC for a closer look.

morgani

Do shop around.

There are many more accountants who are now taking the step to offering fixed sensible fees for small businesses. My business is based on this concept and I feel my fees are reasonable.

There are certainly others who are similar priced around the country.

My tips would be:-

Get a fixed fee
Find out what advice / meetings are included
Make sure you can trust and want to work with them.