Qualified tax accountants in the UK are professionals whose field of expertise is the current taxation laws of the country. The purpose of tax accountants is to provide that expertise to clients and prepare tax returns on their behalf. Most clients are small businesses and self-employed ‘sole-traders’ who prefer to have a trusted expert manage their tax affairs rather than doing it themselves. This can be for a number of reasons, and if you’re on the verge of deciding whether to engage the services of a tax accountant, here are some reasons as to why you should seriously consider it.
Keeping it Simple
There’s nothing to stop you filling in your own ‘Self-Assessment’ tax return, but depending on the nature of your business coupled with your personal circumstances, some tax affairs may be too complex. If you do it yourself, there may be many questions that you’re just not sure how to answer. Official tax information can be found on the UK government website, or even AgeUK, but it’s a daunting amount of information to wade through, and even then, it’s not always clear. Having your own tax accountant avoids that.
Tax accountants, of course, charge professional rates for their services, but this is one of the few professions where what they charge can be far less than the amount of savings they bring. That’s simply because they understand the taxation system thoroughly. After engaging a tax accountant, it’s not uncommon for many clients who’ve previously been doing their own tax returns to find they’ve been paying too much. That’s simply because they were unaware of claims they could have been making. That’s the kind of expertise worth paying for.
As a tax return is essentially a legal document that you provide to HMRC as a record of your income and tax-deductible expenses, you’re under a legal obligation to provide details that, to the best of your knowledge, are accurate. If you do your own tax return and mistakenly supply details that are not accurate, you can find yourself in trouble. You then have to convince HMRC that it was a genuine mistake and not a dishonest attempt to reduce your tax liability. Next, you have to wait while they gather the required information in order to adjust your tax bill. Having a qualified and professional tax accountant handle your affairs, keeps you on the right side of the law
What most people like about tax accountants, apart from their money-saving potential and keeping everything legally above board, is the simple fact that they’re real people you can actually talk to. They don’t just do tax returns; they’re financial experts who can guide you in making choices if you want to expand or restructure your business in a way that is more tax efficient. Even if you don’t have a business but still need help with your financial affairs and tax liabilities, your tax accountant should be your first port of call.