Is Hiring an Accountant Necessary for Your Tax Return?

Necessary? No. Worth it? Absolutely!

Even if you’ve submitted your own self-assessment tax return in the past, we know it can be a lengthy and stressful process. Tax laws and regulations are constantly changing so having an accountant who is a registered agent with HMRC and keeps up to date with any changes that can affect you and your tax implications can be a huge advantage.

If a tax return is submitted late, or with any errors or inaccuracies this is picked up by HMRC and as you’re probably aware penalties can be incurred.

Penalties for submitting your tax return late:

·        1 day late- You must pay a penalty of £100.

·        3 months late- You can receive a penalty of £10 per day, for a maximum of 90 days.

·        6 months late- You can receive a further penalty of 5% of the tax you owe, or £300, whichever is greater.

·        12 months late- You can receive a further penalty of 5% of the tax you owe or £300 whichever is greater. It’s a possibility that you’ll have to pay up to 100% of the tax you owe.

Penalties for paying your tax late:

·        30 days late- You must pay 5% of the tax you owe at that date.

·        6 months late- You must pay a further penalty of 5% of the tax you owe at that date.

·        12 months late- You must pay a further penalty of 5% of the tax you owe at that date.

Penalties for errors and inconsistencies:

·        If the error is due to ‘lack of reasonable care’ the penalty is between 0-30% of the extra tax due.

·        If the error is ‘deliberate’ the penalty is between 20-70% of the extra tax due.

·        If the error is ‘deliberate and concealed’ the penalty is between 30-100% of the extra tax due.

You are able to appeal any penalties, but this can take some time.

If you hire an accountant to file your tax return it takes pressure away from you and drastically reduces any chances of errors or late submissions.

Although accountants come with a cost, we fully examine your records to maximise

deductions and identify possible areas of tax relief that maybe overlooked or perhaps unknown to you so you can potentially save money.

Ultra Tax Ltd are registered with HMRC as an agent and by getting in touch with our friendly, experienced accountants you can be sure your tax return is completed swiftly and accurately.