If you’re in the UK—you’ve probably asked this question before tax season kicks in. Whether you’re a sole trader, landlord, or limited company director, figuring out the cost of filing your tax return is crucial.
Accountant fees can vary a lot based on your situation. Some people pay under £150, while others pay over £500. So how do you know what you should expect?
In this article, we’ll break down the real costs of hiring an accountant for your tax return. We’ll explore average fees, what affects those prices, and whether it’s worth paying a professional at all. You’ll also learn how to find an affordable accountant in UK who meets your needs.
Let’s begin with the question that’s likely at the top of your mind:
How Much Do Accountants Charge for Tax Returns in the UK?
Accountants in the UK typically charge between £150 and £300 for a basic tax return, but prices vary based on your needs.
The cost of hiring an accounting depends on your income, your commercial structure and your financial complexity. This is the common ventilation of the average cost:
Average UK Tax Return Costs:
- Basic self-assessment (employed with minor other income): £150 – £250
- Sole traders with simple accounts: £200 – £350
- Landlords with one or two properties: £250 – £400
- Limited company director with salary + dividends: £300 – £500+
- Complex returns (multiple income streams, overseas income, etc.): £500+
These prices include:
- Reviewing your income and expenses
- Completing and submitting your tax return to HMRC
- Basic tax efficiency advice
Keep in mind:
- Prices are often lower for online-only accountants
- Some accountants offer package deals (e.g. bookkeeping + tax return)
Most accountants in the UK charge £150–£500+ for tax return services, depending on complexity and business type.
What Factors Affect the Cost of Tax Return Services?
The cost of your tax return depends on how complex your finances are and who you hire to do the job.
Not everyone pays the same cost. The two of them could be workers who worked by themselves, but one paid 200 pounds while the other paid 500 pounds. For what? Because accounting is based on their prices in terms of time, complexity and relevant level of detail.
The first major factor is your income type. If you’re employed with a small side hustle, your return is easier. But if you have income from rental properties, foreign earnings, or dividends, it takes longer to process and review.
The business structure also plays a part. Sole traders usually pay less than limited companies, as company directors often require dividend calculations and annual accounts.
Location matters too. While firms in central London charge more, those in Loughborough or online may offer more competitive prices.
Finally, the accountant’s experience can influence costs. A chartered accountant with decades of experience may charge more than a new graduate or a cloud-based service.
In short, your price depends on:
- How many income sources you have
- Whether you run a business or are employed
- The level of service you expect
- Your accountant’s skill level and location
More complexity means higher fees. The simpler your finances, the lower your cost.
Average Tax Return Fees in the UK
In the UK, most accountants charge between £150 and £350 for a standard self-assessment tax return.
This price range typically applies to individuals with straightforward finances—such as employees with small side incomes, sole traders with basic records, or landlords with one or two properties.
If you’re a limited company director, prices often start from around £300 and can go beyond £500. This usually includes director self-assessment, dividend calculations, and possibly annual accounts or payroll filings.
Local accounting firms across the UK often offer competitive pricing compared to firms in major cities. Many still provide face-to-face consultations, which is preferred by business owners who want a more personal approach.
On the other hand, online accountants can be significantly cheaper. Some digital-only services offer basic tax return packages starting from £120. These are best suited for people with simple returns and no need for tailored advice.
Example Price Averages (UK-wide):
- Self-employed, basic return: £180–£250
- Rental income only: £200–£300
- Limited company director: £350–£550
Important Note: Always check what’s included. Some accountants charge extra for things like follow-up support, telephone consultations, or handling multiple income types.
Wondering how much tax returns cost in the UK? Expect to pay £150 to £350 for simple returns, and more for business or company-related cases.
Is It Worth Paying an Accountant for Your Tax Return?
Yes, for most people in the UK, hiring an accountant for their tax return is worth the cost—especially if your finances are even slightly complex.
If you’re self-employed, a landlord, or run a limited company, working with an accountant can help you avoid costly mistakes and even reduce your tax bill legally. Accountants know the final rules of HMRC and can advise what you can and cannot request.
For simple tax returns, like a full-time employee with no extra income, doing it yourself through HMRC’s portal might be enough. But even then, people often turn to accountants for peace of mind and time-saving.
Hiring an accountant doesn’t just mean filling out a form—it means:
- Getting your records reviewed for accuracy
- Ensuring deadlines are met
- Claiming all legal deductions
- Reducing the risk of HMRC penalties or audits
And in many cases, the money they save you in tax can outweigh the fee they charge.
Real example:
Let’s say you pay £250 for your return, and your accountant finds £400 in deductible expenses you hadn’t considered. That’s already a win.
Yes, paying an accountant is often worth it. You’ll save time, avoid stress, and potentially lower your tax bill.
Can I File My Tax Return Myself and Save Money?
Yes, filing your own tax return is possible through HMRC’s online system—but it’s not always the best option.
For individuals with very simple finances, like those with only employment income or a small side hustle, doing it yourself might be enough. HMRC provides a step-by-step online portal that’s free to use and fairly user-friendly.
However, it becomes trickier when your financial situation involves more moving parts. For example, those who are self-employed often struggle with categorising expenses correctly. Property owners must report rental income and understand which costs are deductible. If you earn from dividends or have foreign income, the process can get even more technical.
In these cases, the chances of missing out on legal tax reliefs or making costly mistakes are much higher. Filing incorrectly could lead to penalties or paying more tax than necessary.
Also consider your time. Many people find that even a “simple” return takes several hours, especially the first time.
Tip:
If you want to file it yourself but still feel unsure, some accountants offer a one-off review service. It’s a cost-effective middle ground and typically costs under £100.
Quick summary
You can do your own tax return in the UK, but it’s safest to use an accountant if you have rental, business, or investment income.
What’s Typically Included in a Tax Return Service?
Most UK accountants offer a complete tax return package that goes beyond simply filling in forms.
When you hire an accountant, you’re not just paying for data entry. You’re paying for peace of mind, accuracy, and professional insight into your finances. Here’s what a typical tax return service includes:
Initial consultation and record review
Your accountant will check your income sources, expenses, and any relevant documents before beginning.
Tax calculation and return preparation
They calculate your income tax or corporation tax based on HMRC rules, including all applicable deductions.
Filing with HMRC
Once the return is complete, your accountant submits it to HMRC on your behalf—accurately and on time.
Advice on allowable expenses
A good accountant helps you identify legal deductions and avoid red flags that could trigger an audit.
Ongoing support or clarification
Many firms offer follow-up support or handle HMRC queries if they arise after submission.
Some accountants also include additional services like bookkeeping checks, reminders for deadlines, or help with payment planning if you owe tax.
Optional Add-ons (May Affect Cost):
- Bookkeeping or data entry services
- VAT return filing (for businesses)
- Dividend and payroll calculations
- Tax planning for future years
A tax return service usually includes document review, tax calculation, HMRC submission, and advice on deductions. Some packages also offer year-round support.
Tax Return Costs for Different Types of Taxpayers
The cost of an accountant for your tax return varies depending on your taxpayer status. Below, we break down typical fees for common UK taxpayer categories.
Tax Return Costs for Sole Traders
Sole traders usually pay between £200 and £350 for an accountant to prepare and file their self-assessment tax return.
This fee generally covers:
- Reviewing business income and expenses
- Ensuring allowable expenses are claimed
- Preparing and submitting the return to HMRC
If bookkeeping or accounting records are incomplete, the price might increase due to extra work.
Tax Return Costs for Limited Companies
Limited company directors can expect to pay from £300 up to £600 or more for tax return services, including company accounts.
This includes:
- Preparing director self-assessment
- Calculating dividends and salary
- Producing company annual accounts
- Submitting corporation tax returns
The complexity of the business and additional filings (like payroll or VAT) can raise costs.
Tax Return Costs for Landlords
Landlords with rental income usually pay between £250 and £400 for their tax return preparation.
Accountants will:
- Review rental income and allowable property expenses
- Include mortgage interest relief if applicable
- Handle multiple properties or furnished holiday lettings (if relevant)
Complex rental portfolios will naturally increase fees.
Tax Return Costs for High Earners and Multiple Income Streams
For individuals with complex finances—such as multiple jobs, investments, overseas income, or trusts—fees often start around £500 and can rise significantly.
In these cases, accountants spend more time ensuring compliance and maximising tax efficiency.
Accountant fees differ by taxpayer type: £200–£350 for sole traders, £300–£600+ for limited companies, and £250–£400 for landlords. Complex cases cost more.
Tips to Reduce the Cost of Hiring an Accountant
There are several practical ways to lower the fees you pay for tax return services without sacrificing quality.
Firstly, keeping your financial records organised and up to date can save your accountant hours of work. Well-maintained records make the process quicker and reduce the risk of errors, which often leads to lower costs.
Secondly, consider bundling services. Many accountants offer discounts if you combine bookkeeping, payroll, or VAT returns with your tax return. This approach often results in better value compared to paying separately.
Another way to save is to choose an online or cloud -based accounting option. These services often have lower general costs and can provide competitive prices while providing experts support.
Additionally, if your tax situation is straightforward, ask if a simpler package or fixed-fee service is available. Some firms tailor their offerings to fit smaller or less complex clients.
Finally, don’t hesitate to shop around and get multiple quotes. Comparing local accountants in Loughborough or across the UK can help you find competitive rates without compromising on expertise.
To reduce accountant fees, keep records tidy, bundle services, consider online accountants, ask about fixed fees, and compare quotes.
How to Find the Right Tax Accountant in UK
Finding the right tax accountant in the UK can save you money, reduce stress, and ensure your tax return is handled correctly.
Start by checking professional qualifications. Look for accountants registered with recognized bodies such as ACCA, ICAS, or CIOT. These certifications show they follow strict ethical and professional standards.
Then read the comments and require recommendations from friends, family or local business groups. Customer’s positive comments can provide you with confidence in their service quality.
Consider the accountant’s experience with your specific needs. For example, if you’re self-employed or run a limited company, ensure they have expertise in those areas. Specialization matters when it comes to maximizing tax efficiency.
Also think about how you want to work. Some people like -face meetings, while others feel comfortable with phones or online communication. Many British accountants currently provide remote services, can expand your options.
Before hiring, ask clear questions about fees, services included, deadlines, and support. A transparent accountant will gladly provide a written quote and explain their process.
Lastly, check if they use up-to-date accounting software compatible with HMRC systems, like Xero, QuickBooks, or Sage. This ensures smooth and timely filing.
To find the right UK tax accountant, check qualifications, reviews, experience, communication style, fees, and software used.
What Are the Risks of Filing Tax Returns Without Professional Help?
Filing your tax return without professional advice can lead to costly errors and missed tax savings.
UK tax rules are very complicated and constantly developing. If you return it yourself, there is a risk of income deformation or forget the authorized expenses. Even small errors can lead to fines or benefits of HMRC.
The missing term is another common problem that can be activated. A accountant ensures that your claim is accurate and timely topic.
Without expert help, you may also overlook valuable tax reliefs or deductions, meaning you could pay more tax than necessary.
In worst-case scenarios, errors might prompt an HMRC audit, which can be stressful, time-consuming, and costly.
Using a qualified accountant helps reduce these risks by ensuring compliance and maximizing your tax efficiency.
How Technology is Changing Tax Return Services in the UK
Technology is reshaping tax return preparation, making the process quicker, more accurate, and often more affordable for UK taxpayers.
Cloud accounting platforms like Xero, QuickBooks, and FreeAgent enable real-time sharing of financial data between you and your accountant. This means fewer mistakes and up-to-date records throughout the year.
These tools also allow accountants to offer online services, reducing the need for face-to-face meetings and lowering costs. Many UK accountants now provide full digital support, including secure document uploads and instant messaging.
With digital workflows, tax returns can be prepared and submitted more efficiently, helping you meet HMRC deadlines with ease.
Additionally, software integration improves tax planning by giving you insights on your taxable income and expenses all year round, rather than waiting until filing time.
Embracing technology is a smart choice for modern UK taxpayers who want convenience without compromising professional expertise.
How Do Accountants Charge for Tax Returns? Fixed Fee vs Hourly Rate
Accountants in the UK generally use two main pricing methods for tax returns: fixed fees and hourly rates.
A fixed fee means you pay a set amount agreed before work begins. This is common for straightforward tax returns, providing certainty about costs. Fixed fees often cover the full service—reviewing your records, preparing, and submitting the return.
Alternatively, some accountants charge by the hour, especially for complex cases requiring additional advice or problem-solving. Hourly rates in the UK typically range from £50 to £150 depending on the accountant’s experience and location.
Choosing between fixed or hourly pricing depends on your situation. If your finances are simple, a fixed fee is usually better to avoid surprise charges. But for complicated tax affairs, hourly billing offers flexibility for extra work.
Before hiring, always ask for a clear pricing structure and what is included to avoid unexpected bills.
What Documents Do You Need to Provide to Your Accountant?
Providing accurate and complete documents to your accountant speeds up the tax return process and reduces costs.
Typically, you should gather:
- Your P60 or P45 if employed
- Details of any self-employment income and expenses
- Bank statements and invoices
- Rental income records and property expenses if you’re a landlord
- Dividend statements and investment income details
- Any relevant foreign income information
- Previous tax return copies (if applicable)
Organize these documents before meeting your accountant saves time and money. Many accountants are currently accepting digital download, facilitating the file sharing safely.
How Early Should You Start Preparing for Your Tax Return?
Start early with the preparation of your income report to help avoid the final stress and potential penalties.
In the United Kingdom, the period of self -assessment for online profits is January 31 after the end of the tax year (April 5). It is best to start collecting documents and your financial institutions at the end of the year tax.
Beginning early allows your accountant enough time to review your information carefully, identify tax-saving opportunities, and submit your return on time.
Procrastinating until the deadline often leads to rushed work, higher fees, and even penalties from HMRC.
What Questions Should You Ask Before Hiring a Tax Accountant?
Ask the correct question that allows you to find an accountant that meets your needs and budget.
Consider asking:
- What qualifications and certifications do you hold?
- What experience do you have for customers like me (self -employed workers, owners, limited companies)?
- What exactly is included in your fee? Are there any extra charges?
- How do you communicate—face-to-face, phone, email?
- What accounting software do you use? Is it compatible with HMRC?
- Can you help me with tax planning, or just tax return filing?
- How quickly do you respond to queries, especially close to deadlines?
A trustworthy accountant will answer openly and provide clear, written quotes.
What Should You Expect to Pay for a Tax Return in the UK?
In the UK, accountant fees for tax returns vary widely depending on your financial complexity and business type.
For straightforward self-assessment returns, most people pay between £150 and £350. If you’re a limited company director or have complex income streams, expect to budget £300 to £600 or more.
While it may be tempting to file your own return, hiring a qualified accountant often pays for itself through tax savings, time saved, and peace of mind. Professional help reduces errors, keeps you compliant, and can even uncover deductions you didn’t know about.
To get the best value, organise your financial documents early, ask clear questions about pricing and services, and consider bundling your tax return with other accounting needs.
If you’re in Loughborough or anywhere else in the UK, don’t wait until the last minute. Book a consultation with a trusted local accountant today to ensure your tax return is done right, on time, and at a fair price.
Ready to Get Expert Help with Your Tax Return? Contact Eternity Accountants Today
Don’t leave your tax return to chance. Whether you’re a sole trader, landlord, or company director in Loughborough or anywhere in the UK, Eternity Accountants offers reliable, affordable, and personalised tax return services.
Our team of qualified professionals understands UK tax laws inside out and will ensure you maximise your tax savings while staying fully compliant with HMRC regulations. With Vinh Cuu accountant, you have clear communication, transparent prices and dedicated support at each stage of the process.
Please be assured and save time – we make your income declaration effectively and accurately.
Contact Eternity Accountants today to book your free consultation or request a no-obligation quote.
