How much does an accountant charge for Self Assessment?

The cost of hiring an accountant to prepare and submit your Self Assessment tax return in the UK varies significantly depending on the complexity of your tax affairs, the type of accountant or firm you use, and your location.

For a basic director's Self Assessment return involving a salary from a limited company, dividends, and bank interest, a small accountancy practice typically charges between £150 and £350. Sole traders with simple accounts may pay a similar amount. These estimates reflect fees from qualified local practices outside London. Prices in London and the South East are generally 20 to 40 per cent higher.

More complex returns attract higher fees. If your return includes rental income from one or two properties, expect to add £100 to £200 to the base price. Capital gains calculations, for example from selling a property or a significant shareholding, typically add £150 to £400 depending on complexity. Foreign income, offshore accounts, or non-domicile status adds further complexity and cost. A high-income return over £100,000 requiring personal allowance tapering and pension planning can cost £500 to £1,000 from a qualified tax specialist.

Chartered accountancy firms (ICAEW, ACCA, or CIOT-qualified) tend to charge more than unregulated tax preparers. There is no legal requirement for a Self Assessment preparer to be qualified, so prices from online services can be significantly lower, but quality varies. Using a qualified accountant provides protection through professional indemnity insurance and ethical obligations.

Online accountancy services offer fixed prices for Self Assessment returns, typically ranging from £99 to £250 for straightforward cases. These services work well for simple returns but may not suit complex situations requiring planning advice.

When comparing fees, consider what is included. A good accountant will not just complete the return but will review your situation for tax-saving opportunities, check whether you are paying the correct tax code, confirm that all allowable deductions are claimed, and advise on payments on account. Some firms bundle Self Assessment as part of a broader package covering the company's year-end accounts, which can offer better value.

The cost of an accountant is itself tax deductible. The fee paid to prepare your Self Assessment return and business accounts can be claimed as an allowable expense on the return itself.

For directors who use AccountsOS, Finn compiles your salary, dividend, expense, and income data throughout the year. This significantly reduces the time an accountant needs to spend preparing your figures, which in turn reduces the fee. If you are using an accountant primarily because you struggle to track your finances, adopting accounting software often eliminates that cost.

The question of whether to use an accountant or file yourself depends on complexity and confidence. For a simple director's return with one income source and dividends, filing yourself via HMRC's free online service is straightforward. As income sources multiply, gains arise, or planning opportunities emerge, professional advice earns its cost many times over.

When choosing an accountant, verify their professional qualifications (look for ACA, ACCA, CA, CTA, or ATT), check whether they carry professional indemnity insurance, understand whether they charge hourly or by fixed fee, and confirm that their fee includes representation if HMRC opens an enquiry into your return.