Tax Return Online – Do your own or find an online accountant?
Doing your own tax return online is obviously the cheap option compared to using an online accountant. However, is it cheaper in the long run?
Have you claimed everything?
If your tax affairs are very straight forward, it could make sense to do your own tax return online. But what if you have anything more complicated like self employment or property income? How do you know you are claiming everything you can? For example, if you do any work at home such as the paperwork, you could be entitled to claim a proportion of certain household bills. Higher rate tax payers would only need to claim additional costs of about £300 to save an online accountant’s fees. A qualified accountant has a duty to take steps to ensure you pay the correct amount of tax. This includes claiming any expenses and allowances that are legitimately deductible.
Have you claimed too much, or not declared enough?
If you incorrectly do your own tax return online, even if it’s a honest mistake, you could be fined. The penalties charged depend on the severity, starting from up to 30% of the additional tax due for a lack of reasonable care. Then it goes up to 70% for deliberate errors. So a lack of care resulting in an underpayment of tax of £400 could cost you more than an online accountant.
Will you do your Tax Return Online and on time?
We all know what a chore it can be to dig out all of your paperwork and complete your tax return online. That’s why so many leave it until the last minute, or even file their tax return online late. Filing late by just 1 day will cost you £100, which increases by a daily £10 if filed more than 3 months late.
Find an online accountant?
As well as helping to prevent all of the above, an online accountant can identify other ways of saving tax. Ways that many people doing their own tax return online wouldn’t have heard of. Such as obtaining tax relief by investing spare cash in a Seed Enterprise Investment Scheme. We charge between £50 and £200 plus VAT to prepare and submit your tax return. Why risk paying more in penalties? Contact us now for peace of mind.