Do You Really Need an Accountant to File Your Tax Return?

Who Needs to Submit a Tax Return?

Not everyone in the UK needs to file a Self Assessment tax return, but certain individuals are required to report their earnings directly to HMRC. The following circumstances typically require you to file:

• You are self-employed and earned more than £1,000 in the tax year

• You are a partner in a business partnership

• You have untaxed income from rental properties

• You earn foreign income

• You receive dividend or interest income above certain thresholds

• You made profits from selling assets (capital gains)

• You or your partner receive Child Benefit and your income is over £50,000

• You need to claim tax relief on expenses or charitable donations

• You have other income not collected through PAYE

Even if your employer deducts tax through PAYE, you may still need to complete a return if you fall into one of the categories above.

Understanding the UK Tax Calendar

The UK tax year runs from 6 April to 5 April the following year. After this period ends, individuals who need to file a tax return typically have until 31 January of the next year to submit it online. Paper submissions must be filed by 31 October. Missing these deadlines results in automatic penalties, with escalating fines for longer delays.

The return itself details your income, allowable expenses, and tax owed for the previous year. Depending on your situation, it might also include income from employment, pensions, dividends, rental income, and overseas assets.

Filing Methods: Accountant or Self-Service?

Once you realise you must file a return, the first choice you face is how to file it. Most people consider two options: using an accountant or doing it themselves with tax software or online tools.

Each method has its merits, and the best choice depends on your financial situation, comfort level with numbers, and how much time you want to invest.

What an Accountant Can Do for You

Hiring a tax accountant gives you access to professional experience, guidance, and support throughout the filing process. An accountant doesn’t just input numbers—they help you prepare your financial documents, identify deductions, and ensure compliance with tax regulations.

Here are the core services they typically provide:

• Preparing your tax return based on your income and allowable expenses

• Calculating your tax liability accurately and efficiently

• Advising you on how to reduce your tax bill legally

• Keeping your financial records up to date and audit-ready

• Submitting your return to HMRC on your behalf

• Representing you if HMRC raises any queries or audits your return

If your income sources are complex—such as property portfolios, foreign earnings, capital gains, or business income from multiple streams—an accountant’s expertise can help you avoid costly mistakes and uncover legitimate savings.

Common Reasons People Choose Accountants

Many people rely on accountants to save time and reduce the stress associated with tax returns. Here are the most cited reasons for hiring one:

• Lack of time to manage the filing process themselves

• Concerns about making errors or omissions

• Lack of knowledge about deductible expenses

• Complex financial circumstances or multiple income streams

• Previous issues with HMRC or penalties for incorrect filing

• Peace of mind from having a qualified professional review the return

For individuals with growing businesses or fluctuating income, an accountant can also provide tax planning services, helping you make informed decisions to reduce future liability.

How Much Does an Accountant Cost?

Fees for accountants vary depending on the complexity of your return and the level of service provided. On average, a basic Self Assessment return can cost between £150 and £300. More involved cases involving rental income, overseas assets, or detailed expense breakdowns can push fees closer to £500 or more.

Some accountants charge fixed fees for simple returns, while others bill by the hour. Additional services—like ongoing bookkeeping, VAT filing, payroll, and business advisory—may be bundled in or charged separately. It’s always wise to request a detailed quote or service breakdown in advance. If you only need help filing a straightforward return once a year, be sure you’re not paying for extras that you don’t need.

Rise of Digital Tax Filing Tools

Over the past decade, tax software has become a viable alternative to traditional accountancy services. These tools are designed to simplify the filing process, guide users through each section, and help them avoid common mistakes.

You input your income details, expenses, and any deductions, and the platform performs the necessary calculations. Most tools also generate the correct forms for submission and some allow direct filing with HMRC.

Self-service options are particularly well-suited to:

• Freelancers with a single income stream

• Sole traders with minimal overheads

• Landlords with one or two rental properties

• Individuals earning through online platforms or gig work

• People with basic investment income

For these users, tax software may offer all the support they need at a fraction of the cost of hiring a professional.

Key Advantages of Doing It Yourself

Many people are intimidated by the idea of handling their tax returns alone. However, if your financial situation is relatively simple, the benefits of taking control of your tax affairs can be substantial:

Reduced Costs

Avoiding accountant fees could save you several hundred pounds each year. That’s money that stays in your pocket—especially important if you’re just starting out or managing tight finances.

Learning Opportunity

Filing your own tax return helps you understand where your money goes, what expenses you can deduct, and how much tax you actually owe. Over time, this knowledge can empower better financial decisions.

Convenience and Flexibility

Rather than booking appointments and gathering paperwork for an accountant, you can complete your return at your own pace, from your own home, and on your own schedule.

Access to Real-Time Calculations

Good tax tools calculate your liability as you go, so there are no surprises. You’ll know in advance what to pay and when, and you can plan accordingly.

Built-in Expense Identification

Tax software often prompts you to enter claimable expenses, such as travel, home office use, equipment, subscriptions, and utilities. These automatic suggestions ensure you don’t miss savings you’re entitled to.

When Doing It Yourself May Not Be Ideal

While tax tools are accessible and powerful, they aren’t the perfect fit for every situation. Certain scenarios call for expert guidance, particularly when there’s more at stake:

• You have income from multiple countries and need help understanding double-taxation relief

• Your finances include complex investment portfolios or cryptocurrency transactions

• You’re selling shares or property and need advice on capital gains

• You’ve been contacted by HMRC with questions or audit notifications

• You’ve previously made errors in your tax filings that need correction

• You run a limited company or employ staff

In such cases, a professional’s insight and representation can provide significant value and prevent larger issues down the line.

Legal and Financial Consequences of Errors

Submitting incorrect or incomplete information on your tax return can result in penalties, even if the mistake was unintentional. HMRC issues automatic fines for late submissions, underpayments, and incorrect entries.

If the error is deemed careless or deliberate, further sanctions may apply, including interest on unpaid tax and additional penalties based on the nature and timing of the error. These fines can be significant and could outweigh the cost of hiring help in the first place. Being proactive, organised, and accurate is essential—whether you file your return independently or with professional assistance.

What You’ll Need to File a Return

Regardless of how you choose to file, the documentation required remains the same. Before beginning the process, gather the following:

• Your Unique Taxpayer Reference (UTR) number

• National Insurance number

• Details of income from employment, self-employment, rental properties, pensions, or investments

• Invoices, bank statements, or spreadsheets showing business income and expenses

• Proof of any charitable donations or pension contributions

• Capital gains or losses information from sold assets

• Summary of allowable expenses

Being organised before you start helps reduce errors, avoid delays, and speed up the overall filing process.

How to Use Tax Software Effectively

In today’s digital age, the way individuals handle their tax affairs has evolved significantly. With the availability of intuitive tax software, self-employed workers, landlords, and side hustlers alike are increasingly choosing to file their own tax returns without relying on professional accountants. This shift is driven by the desire to save time, reduce costs, and maintain greater control over personal finances.

However, using tax software effectively requires a clear understanding of how the process works, what tools to use, and how to ensure the return you submit is accurate and compliant. We will break down the step-by-step journey of using tax software for your Self Assessment, the features to prioritise, and what documents you’ll need to be ready.

Why More People Are Turning to Tax Software

The appeal of tax software lies in its accessibility and user-friendliness. While accountants offer tailored advice and can handle complex situations, tax software provides a practical and cost-effective solution for straightforward financial scenarios.

Key reasons people prefer digital filing tools include:

• Lower cost compared to professional services

• Immediate access from any device

• Built-in checks for errors and omissions

• Real-time calculations for tax liability

• Guidance through each section of the return

• Prompts to claim eligible expenses

As digital confidence increases across generations, filing taxes online has become a preferred method for those who want full visibility and autonomy over their income reporting.

Preparing to Use Tax Software

Before you even open your chosen software, there are key steps you should take to prepare your information and streamline the process. Getting everything organised ahead of time will make your experience faster and help reduce mistakes.

Start by collecting:

• Your Unique Taxpayer Reference (UTR) number

• National Insurance number

• Details of self-employment income (e.g., invoices, sales logs)

• Rental income figures, if applicable

• Dividends, bank interest, or investment income

• Employment income, if you have a side job (P60 or P45)

• Records of business expenses

• Details of pension contributions, charitable donations, and student loan repayments

• Capital gains from asset sales

Once you have these items at hand, you’ll be in a strong position to move through the software with confidence.

Key Features to Look For in Tax Software

Not all tax tools are created equal. Some are designed specifically for sole traders, while others offer a broader range of functionality suitable for landlords, partnerships, or small business owners.

Here are some essential features that effective tax software should offer:

User-Friendly Interface

The dashboard should be intuitive, clearly labelled, and easy to navigate, even for those unfamiliar with tax terminology. Clear prompts and guidance are essential for beginners.

Real-Time Calculations

As you enter your income and expenses, the software should calculate your running total of tax owed. This allows you to make adjustments and plan ahead.

Built-in Expense Categories

The best systems offer pre-set categories that align with HMRC’s rules. For example, you should be able to select from travel, home office, utilities, subscriptions, and marketing costs.

Error Checking and Validation

Smart validation tools alert you to inconsistencies or missing information before submission. These checks can reduce the risk of rejection or follow-up from HMRC.

Support and Guidance

Look for platforms that offer help sections, tooltips, FAQs, and support chat. While you may not have an accountant on call, having technical support is still valuable.

Secure HMRC Integration

The software must be compliant with HMRC systems and allow direct online submission. This is a core requirement under the government’s Making Tax Digital initiative.

Mobile Access

Flexibility matters. Having access to your return on both desktop and mobile devices means you can work on it anytime, anywhere.

Setting Up Your Account

Once you’ve selected a software platform, creating an account is your next step. This typically involves providing basic personal information and confirming your email address. Some systems may also require you to enter your Unique Taxpayer Reference to sync with HMRC.

After registration, you’ll either start a new tax return from scratch or import data from a previous year if you’ve used the same software before.

Entering Your Personal and Business Details

The software will guide you through a series of screens to enter:

• Your full name, address, and contact details

• National Insurance number

• Self-employment status

• Business name, if applicable

• Type of income sources (e.g., sole trader, property, dividends)

Make sure all information matches the records held by HMRC to prevent submission errors.

Logging Income

The next step is to input your earnings. If you’re self-employed, this will be your total turnover from sales or services provided during the tax year. You may also need to include:

• Rental income from residential or commercial properties

• Dividends and bank interest

• Foreign income or pensions

• Capital gains on shares or property sales

Income should be reported gross, before deducting any costs or taxes already paid. For property, include total rent received, and for dividends, include the amount after corporation tax has been deducted.

Claiming Business Expenses

One of the biggest advantages of filing your own return is that you can actively track and claim your business-related expenses, which lowers your taxable income. Good tax software will offer categories aligned with HMRC’s guidance.

Typical claimable expenses include:

• Office rent or home office costs

• Internet and phone bills

• Travel and vehicle expenses

• Business insurance

• Tools and equipment

• Advertising and marketing

• Professional subscriptions

• Staff wages or subcontractors

• Legal or accounting fees

You must keep receipts or digital copies of all claims, even if the system does not ask for them during the return process. HMRC can request evidence at a later date if they audit your records.

Depreciation and Capital Allowances

If you’ve purchased expensive equipment, such as computers, vehicles, or machinery, you may be eligible to claim capital allowances. Rather than deducting the full cost in one go, these assets are usually written down over time.

Many tax platforms include a section specifically for capital allowances, and will help calculate the correct value based on the type of asset and purchase date.

Calculating Your Tax Liability

Once all income and expenses have been entered, the software will generate your final tax liability. This is the total amount you owe for the tax year, and it includes:

• Income tax

• National Insurance contributions (if self-employed)

• Student loan repayments (if applicable)

• Class 2 and Class 4 National Insurance

• Additional charges such as capital gains tax

You’ll also see the due dates for payment. For most people, the payment deadline is 31 January following the end of the tax year. If your tax bill is more than £1,000, you may also be required to make a payment on account toward the next year’s bill.

Reviewing and Submitting the Return

Before submitting your return, take time to review every section carefully. Most tax tools offer a summary page where you can inspect the final numbers, and some allow you to download a draft for your records.

Double-check:

• Your income entries

• Expense claims

• Any adjustments for tax relief or allowances

• Total tax owed

• Bank or contact details for correspondence

Once you’re satisfied, you can electronically submit your return directly to HMRC. You’ll receive a confirmation email and a submission receipt with a reference number—save this for your records.

Record Keeping and Digital Storage

Even after your return is submitted, it’s vital to store all supporting documents. HMRC requires you to keep records for at least five years after the submission deadline.

You should retain:

• Invoices and receipts

• Bank statements

• Mileage logs or travel receipts

• Property management reports

• Expense spreadsheets

• Correspondence with HMRC

Most software platforms allow you to upload receipts and attach them to entries, helping you create a digital archive. This is especially useful if you are audited or if HMRC raises queries in future years.

Updating Your Return

If you discover an error or realise that you missed an item, don’t panic. You can log back into your tax software and update your return up to 12 months after the filing deadline.

Revisions are common, particularly if additional income comes to light or you’ve forgotten to claim a business cost. The software should allow you to amend your figures and re-submit without additional cost.

Understanding Payments on Account

If your tax bill exceeds £1,000, you’ll likely need to make two advance payments toward your next year’s bill. These payments are due:

• 31 January (same day as your final balance)

• 31 July

Each payment is half of your previous year’s tax liability. These advance payments help HMRC collect income tax more evenly throughout the year. Your software should calculate these amounts automatically and remind you when they are due.

Once you’ve completed your tax return, it’s wise to maintain momentum by planning for the year ahead. Continue to log your income, track expenses, and store receipts regularly. Many tools allow you to work throughout the year instead of rushing before the deadline. Some systems even offer estimated tax forecasts based on year-to-date income, so you’re never caught off guard with a surprise bill.

Choosing Between DIY Tax Filing and Hiring an Accountant

Completing a tax return is a crucial task for self-employed individuals, freelancers, landlords, and those with multiple income streams. With digital tools making it easier than ever to file your own return, many people are left with a major decision: should they manage their own taxes or pay an accountant for professional support?

The right choice depends on your personal circumstances, the complexity of your finances, your confidence with numbers, and your desire for control. This section helps you weigh the options, explore various scenarios, and understand when it makes sense to go solo or when it’s best to enlist expert help.

When DIY Tax Filing Is a Practical Option

Filing your tax return yourself can be a rewarding and efficient experience, especially if your financial affairs are relatively simple. With user-friendly tax software available, many individuals find they can complete their return with minimal stress.

Here are common situations where handling your taxes yourself might make sense:

You Have a Single Source of Self-Employed Income

If you work as a sole trader, contractor, or freelancer and earn money from one main activity, your tax situation is usually straightforward. You need to report your gross income and allowable expenses, calculate your profit, and submit your return.

You Keep Good Financial Records

If you consistently track income, store receipts, and manage your bank accounts properly, you’re likely well-prepared to enter accurate figures when the time comes.

You Have Limited or No Additional Income

People with no investment income, foreign income, capital gains, or rental properties often find tax returns easy to complete. The fewer income types you have to report, the simpler your submission.

You Want to Save on Fees

Accountants can be expensive, especially if you require them only once a year. Filing your return yourself saves money and gives you more insight into how your finances work.

You’re Comfortable Using Digital Tools

Those who are confident with online forms and financial platforms often enjoy the flexibility of handling taxes themselves. The automation and prompts built into tax software reduce the chance of errors.

When Hiring an Accountant May Be a Better Choice

While many people can complete their tax returns independently, others benefit from the expertise and support of an accountant. Tax professionals offer value beyond just form-filling; they can help with planning, compliance, and strategy.

Consider hiring an accountant if you fit one or more of the following scenarios:

You Have Multiple Income Sources

Balancing income from self-employment, employment, property, dividends, and investments can get complicated. An accountant will ensure each category is reported correctly, including any allowable deductions.

Your Business Has Grown Significantly

If your sole trader business has increased in scale, complexity, or turnover, the advice of an accountant becomes more valuable. They can advise on whether it’s time to register for VAT, pay yourself differently, or even incorporate your business.

You’re Claiming Complicated Expenses

When you have unusual or high-value expense claims—such as partial property use, international costs, or mixed personal/business expenses—it helps to have someone ensure you’re compliant with HMRC guidance.

You’ve Sold Assets or Property

Capital gains tax can be one of the trickiest parts of a tax return. If you’ve sold shares, crypto, or a second home, you may owe tax on the profits. Accountants can help calculate what’s owed and apply any exemptions.

You’ve Made Mistakes in the Past

If you’ve filed incorrect returns or received penalties from HMRC, you may benefit from the extra security of having a professional handle your next submission and get you back on track.

You Simply Prefer Peace of Mind

Some people find the idea of dealing with taxes stressful or confusing, no matter how straightforward the return. Hiring a professional relieves that pressure and provides reassurance.

Comparing Costs and Value

A common reason for choosing DIY tax filing is cost. Depending on the complexity of your return, an accountant might charge anywhere from £150 to £500 or more. Those with additional services like bookkeeping or VAT returns could face even higher fees.

However, accountants often justify their cost by:

• Finding tax savings you may have missed

• Avoiding penalties due to incorrect filing

• Offering year-round advice beyond the return

• Saving you time and stress

On the other hand, filing your own return might cost only a small fee for software, or even nothing at all if you choose to file through HMRC’s basic system. This can be ideal for low-income earners or those just starting out in self-employment.

Evaluating Time and Complexity

Another factor is time. A basic tax return can take a few hours to complete, including data collection, entry, and review. However, complex returns could take days of effort, especially if you’re not familiar with tax rules.

Ask yourself:

• Do you have the time to research and enter everything carefully?

• Are you likely to procrastinate until the deadline approaches?

• Do you enjoy or dread dealing with financial admin?

If time is scarce or if the complexity feels overwhelming, outsourcing the task may be the most sensible route.

Case Study: Sole Trader Graphic Designer

Sarah is a freelance graphic designer who works with clients across the UK. Her income is steady, and she invoices through a digital platform. She works from home and occasionally travels to events.

She tracks her income and expenses using a spreadsheet and keeps receipts in a cloud folder. Her only income comes from design work, and she has no employees, investments, or rental properties.

Sarah opts to file her tax return herself each year using tax software. She’s familiar with the system, understands her allowable expenses, and is confident reviewing the figures. For her, DIY filing is simple and cost-effective.

Case Study: Property Investor with Side Business

David owns three rental properties and also runs an e-commerce business. He earns income from rent, product sales, and dividends from shares. He has complex expenses, including mortgage interest, property maintenance, and advertising costs.

Because of his multiple income streams and the need to navigate different tax rules, David hires an accountant. The professional helps him stay compliant, avoid overpaying, and plan for his tax liabilities. While it costs more, the value he receives outweighs the fee.

Combining DIY with Occasional Expert Advice

Another approach is a hybrid one: managing your tax return independently but occasionally seeking professional guidance. This works well for people who want to learn how the system works but want backup when needed.

Options include:

• Hiring an accountant for a one-off consultation

• Having your return reviewed before submission

• Attending webinars or courses on tax literacy

• Using helpdesks or customer support within tax platforms

This method allows you to stay in control while still accessing expertise when questions arise.

Key Decision Factors

Here are some key elements to consider when deciding between doing your taxes yourself or using an accountant:

Confidence

Do you feel confident calculating tax, understanding rules, and submitting documents to HMRC?

Accuracy

Are you likely to make errors, miss deadlines, or omit key figures?

Complexity

Does your income come from various sources, and are your finances hard to categorise?

Budget

Can you afford an accountant, and does the value they provide justify the cost?

Time

Are you willing and able to invest the time needed to complete the process properly?

Risk

Are there risks of audit, penalties, or interest due to your income profile or past mistakes?

Common Misconceptions About DIY Tax Filing

People sometimes avoid filing their own return due to myths or outdated assumptions. It’s worth addressing a few common misconceptions:

• You don’t need to be a financial expert to file a basic return

• Most software includes prompts and safety checks

• Filing online is secure and accepted by HMRC

• Mistakes can usually be corrected later without penalty

• You can claim many of the same deductions an accountant would find

Understanding these facts can help remove the fear or hesitation around self-assessment.

When Your Situation Changes

Life events can affect your tax situation dramatically. If you start a new job, launch a business, sell property, move abroad, or inherit money, your tax needs may evolve. In such cases, it’s worth reassessing whether to handle taxes yourself or seek advice.

A good rule of thumb is to review your filing method annually. What worked this year might not be the best choice next year, especially if your circumstances change.

Building Tax Knowledge Over Time

One benefit of filing your own return is that you build financial literacy and become more aware of your income patterns, spending, and tax obligations. Over time, you’ll develop skills and knowledge that reduce your reliance on professionals.

Reading HMRC guidance, exploring financial blogs, and using educational resources are excellent ways to improve your tax understanding. As your confidence grows, so does your ability to make informed financial decisions.

Filing your tax return is more than a legal obligation; it’s a chance to reflect on your income, expenses, and savings. Whether you decide to manage it yourself or hire a professional, the goal is the same: accuracy, compliance, and peace of mind. Understanding your needs, budget, and comfort level with financial admin will help you make the right choice for your situation.

Conclusion

Filing a tax return is a responsibility that most self-employed individuals, freelancers, landlords, and those with additional income must face. From the moment you realise you need to submit a return, the process can seem overwhelming — filled with questions about deadlines, deductions, and the intricacies of tax law. The central dilemma remains: should you handle it yourself or hire an accountant?

Throughout this series, we’ve explored every angle of this decision. We began by examining what a tax return involves, the legal obligations it places on taxpayers, and what happens if it’s done incorrectly. We then looked closely at the role of a tax accountant — from maintaining financial records to helping reduce your tax liability — and the costs that come with hiring one. Finally, we compared the two options in detail, providing real-life scenarios, practical advice, and key factors to consider when deciding between DIY tax filing and professional support.

The answer to whether you need an accountant is not one-size-fits-all. If your finances are simple, your recordkeeping is solid, and you’re comfortable using digital tools, doing it yourself can be efficient, cost-effective, and empowering. However, when your financial situation becomes complex — with multiple income streams, large expense claims, capital gains, or changing business structures — a qualified accountant can save you time, reduce your tax bill, and prevent costly mistakes.

Ultimately, the best approach is the one that gives you clarity, confidence, and control. Whether you go it alone or seek expert help, the goal is to stay compliant, understand your obligations, and optimize your financial outcomes. As technology continues to simplify the Self Assessment process, more people are empowered to make informed choices that work for their unique circumstances.

By understanding your personal needs and weighing the pros and cons, you can choose the tax filing method that aligns with your lifestyle, budget, and peace of mind — and make tax season just another item on your to-do list, not a source of stress.