How Much Do You Really Save By Doing Your Own Tax Returns?

According to the most recent government statistics 750,000 people failed to complete their self- assessment tax return by the January 31 deadline. This is despite the £100 late filing penalty being applied after this date. It is reasonable to assume that a good proportion of these late payers were late due to difficulties completing the online form.

The numbers suggest that many people now try to complete tax returns themselves rather than pay an accountant to prepare accounts through the year and submit a return for them. Unfortunately, many soon encounter difficulties.

Completing a tax return can of course be a simple process if your circumstances allow. If you are a single person with a simple service business from an office, then completing a tax return can be relatively straightforward.

However, things can soon get complicated if you work from home, have a car you use for business purposes and you then decide to invest your profits in a buy to let property. With the recent changes to the rules on what can be claimed as allowable expenses things can become a lot more complicated to deal with.

This is where an accountant can really help simplify the process. Completing the tax return correctly can even mean you save enough money to more than cover the accountancy fee. Add this to the time saving and you stand to gain a lot more than you’ll lose.