Why Hiring an Accountant for Your Tax Return Can Be a Good Investment
Tax returns. Love 'em or hate 'em, they're a vital part of the business year for successful entrepreneurs like yourself. They show that you're moving forward and making money. However, it can be hard to find the time for all that admin amongst the busyness that running a small business brings business brings.
Could outsourcing to an accountant be the answer? Read on to find out.
Outsourcing Accountancy Can Mean Less Stress, and More Time
Imagine this: you’ve been in charge of your own small company for a while, you’re turning a nice profit and are starting to attract more customers, increasing the workload. You’re happy to take control of most things – after all, it’s your company. However, when the time comes round to file your tax return, things can get tricky – especially if you have little knowledge about how to complete a self-assessment. Even a simple mistake can lead to the unfortunate possibility of HMRC investigating your case, which is likely tocan cause unnecessary stress on your side.
There’s the issue of time, too. For some, such as freelancers, it’s a bit easier to delegate the time between work and accountancy, but for other small businesses, it can seem a daunting task – especially with a busy schedule already in place. There’s not a small business in the world that wouldn’t benefit from more free time, right?
Hiring an Accountant Can Be a Good Investment
Step forward the accountant. Accountants are accustomed to working with a variety of businesses. You might just find that the accountant you hire for your tax return is the perfect fit for the rest of your company's finances, too. These professionals are highly trained in this area of work, with more experienced bookkeepers likely to have handled tax returns in a variety of different situations. Delegating can be hard when your business is your baby, but remember that having someone take care of this chunk of admin means you can focus on smashing your goals elsewhere. Win-win.
How Much Does It Cost?
Fees for tax return services vary. A lot of accountancy firms offer a basic self-assessment service, which could cost around a few hundred pounds. Fees tend to be decided on a case by case basis, as it depends on the income of your business and how well-polished your existing accounts are.
It’s always worth comparing the cost of this service to how much time you will save. Consider your own approximate hourly rate and how long you would likely spend on a tax return. Working with an accountant may well be much cheaper. Plus, did you know that you can claim the cost of your accountancy fees as a tax deduction? Something to ask your newly hired accountant about.
Things to Remember
Before you make a decision on whether to take up an accountant, here are a couple of points to bear in mind:
- Any tax returns which are submitted late, even by an hour, can result in a £100 fine. Furthermore, there are penalties for even later submissions. In total, you could rack up £1,600 if it isn’t done correctly.
- Tax laws are changing all the time, so you should keep an eye on the evolving rules before you start to think about doing a tax return by yourself. With the events of Brexit likely to change the country up, it is now even more important to know your stuff.
Whether you choose to hire an accountant just for a tax return or full time, their job is to help you keep your money in shape. Hiring one can mean saving a lot more money and time in the future.
Completing a self-assessment without an accountant is necessary for some, though. If this is you, fear not. Check out our handy article on filing your first tax return. Sorted!
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