What would an accountant cost? 11 January at 11:28AM in Cutting tax 9 replies 403 views

jim_walton

I have income from abroad and income from a rented out property plus various Uk pensions..I do my own self assessment return via the HMRC website.. Some times I wonder about letting an accountant do it for me but am unsure what the likely cost would be. I would be happy to pay a couple of hundred quid to get it done..Does anyone on here know a likely cost?

Regards   

Tucosalamanca

Mine charges £150 + vat to prepare and submit the return.
However, they also deal with my business affairs, which leads to a four figure bill, so it's possible that the £180 figure might not reflect your circumstances. The accountants save me money overall, so a worthwhile spend.

Pennywise

Horses for courses really.  A qualified accountant will probably cost more, as would a larger firm.  Unqualified/lesser qualified accountants, particularly one man bands are likely to charge less.  But there are good unqualified/one man bands and poor qualified ones/bigger firms.  Cost is no indicator of quality of service.  

I've worked in bigger firms and am now a one man band, but fully qualified chartered.  I'd say a couple of hundred is slightly on the lower side for a return including foreign and property income, it may be possible if things are pretty simple and you can provide the accountant with all the information without too much backwards and forwards between you.  

Realistically, with the regulatory work to do (proof of id, know your client forms, risk assessment, etc) and setting up the file, database, etc., and then actually communicating with you, getting your data, registering as agent with HMRC, entering your data into the tax return, getting your approval once completed, and submitting it, you're looking at maybe 3 or 4 hours work in total, so definitely in the range of £200-£500.

jim_walton

Thanks for the responses..I'll make a few tentative enquires with local accountants...

Speedbird676

Mine only charges £75+VAT but they also do my Corporation Tax return plus company accounts which attracts a larger bill.

ispookie666

You guys are getting great value.  Mine charges upwards of 400 

inspectorperez

Speaking as a retired Chartered Accountant, from my own experience, I would say based on the circumstances described, you will get better value for money doing it yourself.

The excellent post from Pennywise spells out all the necessary regulatory steps in getting you on board as a client and then ensuring that a professional service is delivered. This all takes time (therefore cost) which you would avoid if you did it under your own steam.

Okay, the professional eye over the shoulder might save you some money if you were missing out on some tax relievable expenses or failure to make appropriate claims, but the HMRC self assessment process is very helpful normally and if you are reasonably computer literate, you should spot these opportunities (if they exist) yourself.

From the outline description of your circumstances, I would hazard an informed guess for fees chargeable in the region of £350 + VAT subject to unforeseen issues possibly arising from tax jurisdictions and the like. For this you would probably get a trainee doing the leg work with minimal supervision from a manager and partner involvement merely to issue the fee note.

jim_walton

The reason I'm enquiring is because I'm trying to get our affairs in order in case I fall off a mountain. We already pay an accountant in the USA even though all our income is taxed here so I guess a few more hundred quid on top would be worth it in the long run. 

Thanks for the time guys..

regards.

Grumpy_chap

Pennywise said:

Realistically, with the regulatory work to do (proof of id, know your client forms, risk assessment, etc) and setting up the file, database, etc., 

The cost for an Accountant to prepare annual tax returns is dependant upon complexity.
My Accountant charges me £255 + VAT for personal tax return (including my data from own Ltd Co dividends)
My wife has a BTL as well, so her fee is a bit higher, £260 + VAT
I also have a Ltd Co. for which the annual fees are around £1k + VAT

Rates have crept up in recent years, it was not so long ago that the total for annual and personal tax return was landing at around £1k + VAT, so an upward movement of around £250 or thereabouts in recent years.

As for the original setting up activity, IIRC, my Accountant never charged more for that but simply charged for the annual returns in the first year, with the setting up activity absorbed into the overhead.  This may vary from firm to firm.

purdyoaten2

Grumpy_chap said:

Pennywise said:

Realistically, with the regulatory work to do (proof of id, know your client forms, risk assessment, etc) and setting up the file, database, etc., 

The cost for an Accountant to prepare annual tax returns is dependant upon complexity.
My Accountant charges me £255 + VAT for personal tax return (including my data from own Ltd Co dividends)
My wife has a BTL as well, so her fee is a bit higher, £260 + VAT
I also have a Ltd Co. for which the annual fees are around £1k + VAT

Rates have crept up in recent years, it was not so long ago that the total for annual and personal tax return was landing at around £1k + VAT, so an upward movement of around £250 or thereabouts in recent years.

As for the original setting up activity, IIRC, my Accountant never charged more for that but simply charged for the annual returns in the first year, with the setting up activity absorbed into the overhead.  This may vary from firm to firm.

That’s still a very reasonable cost!