How Much Do Accountants Charge For Tax Returns In The UK?

The cost depends on your business size, your requirements, the forms you need to file, and where you live. Accounting firms usually demand more, while freelancers offer less. But you won’t get skill or advice, and there is a potential risk. You can even get free help if you’re in a tax assistance program.

Filing tax returns can be tricky, especially if you have multiple income sources or run your own business. That’s why entrepreneurs seek professional accountants to ensure accuracy and stay updated with HMRC. One important question is, how much do accountants charge for tax returns in the UK?

In this guide, I explained tax accountants’ fees, what affects the cost, and why hiring an expert can be a smart investment for your peace of mind. After reading this article,

You will get clear information about:

What is a tax return
When Do You Need to File a Tax Return
Average cost of tax return services in the UK
Factors that affect accountants’ tax return fees
Why Do You Hire Accountants For Tax Returns

So, let’s start to read.

How Much Do Accountants Charge For Tax Returns

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What Is a Tax Return?

A self-assessment tax return is an SA100 form, which is submitted to HM Revenue and Customs (HMRC) in the UK. After filing it, individuals or entrepreneurs know their income, expenses, and capital gains for a specific tax year. Even if you have no taxable income, you must file it if HMRC asks. If you don’t know why you need to file, contact HMRC for help.

Why It Matters?

Proper filing helps you to:

Pay the right tax
Avoid penalties and interest
Stay compliant with UK tax regulations

When Do You Need to File a Tax Return?

According to the UK Gov Tax Compliance, you need to register for tax returns with HMRC by the deadlines.

For paper documentation, submit your file by 31st October
File your online returns by the 31st January
For late filing, you have to pay £100 or more

Pro Tip: To avoid this issue, hiring a professional tax preparer is your ultimate solution.

Average Cost of Tax Return Services in the UK

90% freelance small business accountants in London charge from £126 to £400 monthly or on a project basis. Often, they charge hourly rates for extra services. Different accountants’ firms offer different competitive packages based on the project, including accounting, bookkeeping, taxation, and VAT.

Tax Return Costs Overview (2025)

Service Type	Criteria	Estimated Fee (Euro)
Self-Assessment Returns	Sole Trader/ Freelancer	150 – 250
Company Directors	Limited Company	300 – 400
Annual Accounts	Small Business	500 – 700
Payroll ( with PAYE )	50 – 100 employees	150 – 500
Annual Accounts Submission	£20,000 to £300,000	200 – 600
Partnership tax return	£20,000 to £300,000	250 – 700

Tips: Ensure the accountants’ offered fee is transparent and there are no hidden charges or VAT.

Factors That Affect Accountant Tax Return Fees

Many factors affect a tax accountant’s charges for your tax returns. These factors are-

1. Complexity of Your Financial Affairs

Complexity affects:

Multiple income sources tax filing is complex and requires more data, making tax filing more complicated. The cost will be higher (eg, self-employment, rental, dividends).
More money and more experience are needed for more complicated situations.
The UK tax return cost is cheaper when the income source is one

2. Record-Keeping Quality

Organised record keeping benefits:

Well-organised records and documents keep business transactions updated
Make tax filing cheaper, smarter, and faster

3. Deadline Pressure

Deadline pressure affects:

January is the peak season for tax accountants. Contacting close to January can be charged higher due to their limited time for last-minute work.
Filing your returns from October to November at a cheaper cost is a wise decision.

4. Location

Accountants’ charges in London, East London, and South London are higher due to high living expenses. North London rates are cheaper, but quality is a factor.

5. Level of Expertise and Reputation

The expertized and renowned accounting firms charge higher fees. Because of:

They have years of experience, hundreds of successful projects, and case studies.
They provided ACCA, CTA, and ICAEW-certified, highly qualified, and knowledgeable industry expertise.
Reputation builds trust and customer satisfaction. Their strong portfolio makes them searchable.

Why Do You Hire Accountants For Tax Returns?

Accountants for tax returns ensure accuracy of filing, stay updated with the UK Gov laws, and avoid costly penalties. That’s why many taxpayers look for tax accountants.

Stay Updated With Compliance

An experienced accountant knows UK tax rules and helps you file accurately. Therefore, business owners pay taxes on time, thereby avoiding errors, complexity, and penalties.

Maximised Tax Reliefs

Tax accountants ensure you get the most money back that you owe from your tax return. They are highly knowledgeable and experts on the tax laws. So, a professional can claim all your eligible tax reliefs, deductions, and often save you more than their fee.

Time-Saving

Filing taxes can be time-consuming, especially when you have multiple sources of income. An accountant saves you hours to focus more on your business success and minimise potential risks.

Alternatives to Hiring an Accountant

Modern accountants offer flexible and tailored payment options, rather than the traditional payment model, to suit your business structure. The most famous alternatives are –

1. HMRC’s Free Self-Assessment Service

If you understand the UK tax rules well, you can file your self-assessment tax returns for free directly on HMRC’s website following their guidelines.

2. Tax Software

QuickBooks, FreeAgent, Xero, FreshBooks, and TaxScouts help you file taxes and keep records on digital platforms smartly. Some software offers accountants charge from £119.

3. Equity or Commission-Based (for Startups)

Some accountants work for startups with equity stakes or performance commissions in exchange for low costs. You can take this modern accounting option to suit your business.

4. Hybrid Payment Models

Different accountants offer combined payment methods. For example, a small monthly fee for accounting plus tax planning for an extra.

5. Tiered Package

Pay your accountant to file your tax returns once a year. Accountants provide different services for a yearly fee. Here, you will gain some discounts.

6. Pay-As-You-Go

PYAG is a brilliant optional payment method for seasonal businesses or simple services. You only pay for your required service when you need it. There is no monthly or ongoing payment.

Why Choose S&B Accountants for Your Tax Return?

We, S&B Accountants, are a prestigious small business accounting firm in London. We provide tax return services proudly with:

We offer a wide range of tax services, including VAT
Competitive packages for small to growing startups
Clear pricing models, no extra or hidden charges
Multilingual and expert services from our East & North London teams
Use cloud-based software and tools like QuickBooks, Xero, and FreeAgent
Based in London but serves all across the UK

Final Thoughts

Hiring a professional saves your valuable time, minimises errors, helps you organise, and submits your records timely. So, hire us to handle your tax return with confidence and turn your hard work into smart profit.

Frequently Asked Questions

Is hiring accountants for tax returns worth it?

Yes, it’s a smart choice to hire an accountant to take care of your taxes. Accountants can help you with filing tax returns, staying updated with HMRC, and avoiding unexpected penalties.

Should I hire an accountant for my taxes in the UK?

Accountants in the UK are highly skilled, qualified, and up-to-date on all tax regulations. They offer expert accounting support with a friendly budget and help businesses grow.

What is the difference between an accountant and a tax accountant?

A tax accountant streamlines your taxation process. On the other hand, an accountant forecasts your business’s finances, cash flow, and secured transactions.

Is it easy to do your tax return in the UK?

If you understand and organise the forms according to HMRC, you can do the tax return yourself and avoid paying fines or penalties.