accountant to fill tax

nonolerigolo

when using an accountant to fill tax return, can we include its cost into in orde to reduce amount of tax.

[Deleted User]

It depends. Strictly the fee element relating to the preparation of the return is not an allowable deduction and never has been.


http://www.accountingweb.co.uk/any-answers/can-accountant-fees-for-tax-return-be-treated-as-an-allowable-expense-in-the-tax-return

However, proving how much of an accountant's fee relates to a tax return is open to debate. If you are a sole trader with a £100k turnover it could be argued that the accountancy fee is a fully allowable trading expense with the tax return element 'incidental'. By contrast - I have never claimed accountancy fees where related to the tax return preparation where there is no trade involved.

KathF

i was told by the accountant i hired to fill in and submit my tax return that it was fully deductable as an expense :S

[Deleted User]

KathF wrote: »

i was told by the accountant i hired to fill in and submit my tax return that it was fully deductable as an expense :S

What is the reasoning behind your obligation to submit a return?

As I have already explained, what happens in practice is not necessarily in strict adherance to tax law.

For example - an accountant charges £200 to prepare accounts for a property business (fully tax deductible) and £150 for the preparation of the tax return. The £150 is NOT a tax deductible expense. Now if the fee for the former became £350 ???????

sheramber

When my husband was self employed his accountant's fee was for the work preparing the accounts.

Completing the tax return had no charge.

Brighty

When i was self employed and had an accountant, they charged me monthly for managing my ltd company books, that was deductible. They also offered to do my personal tax return for an additional fee (i never took them up on it, i do my own), but they specifically stated that would not be deductible

Brighty

[Deleted User]

Brighty wrote: »

When i was self employed and had an accountant, they charged me monthly for managing my ltd company books, that was deductible. They also offered to do my personal tax return for an additional fee (i never took them up on it, i do my own), but they specifically stated that would not be deductible

Brighty

Yes -limited companies are much more bound by legalities/regulations - your accountant was correct.

Cook_County

sheramber wrote: »

When my husband was self employed his accountant's fee was for the work preparing the accounts.

Completing the tax return had no charge.

So if the accountant got it wrong he was not liable one expects?

Pennywise

Cook_County wrote: »

So if the accountant got it wrong he was not liable one expects?

Of course he's liable if he's doing it in a professional capacity as part of a bigger scope of services, regardless of whatever fee he is charging (or not). Not charging for a particular piece of work doesn't mean they're not responsible for the correctness/accuracy of their work.

Cook_County

Pennywise wrote: »

Of course he's liable if he's doing it in a professional capacity as part of a bigger scope of services, regardless of whatever fee he is charging (or not). Not charging for a particular piece of work doesn't mean they're not responsible for the correctness/accuracy of their work.

But surely a contract requires some "consideration". If there is no payment, could the accountant argue there was no contract?