What Is a Tax Accountant and Do You Need One?

If managing your taxes feels overwhelming, you’re not alone. With changing regulations, complex forms, and tight deadlines, handling your own tax return can quickly become stressful. That’s where a tax accountant steps in, offering expert support to help you navigate the process with ease.

But what exactly does a tax accountant do? Whether you're dealing with a simple tax situation or running a small business, they go beyond basic tax preparation. From identifying eligible deductions to ensuring full compliance with HMRC, their role can significantly improve both accuracy and outcomes.

In this blog, we’ll explore what a tax accountant really does, how they help reduce your tax liability, and why hiring one might be one of the smartest financial decisions you make this year.

What is a Tax Accountant?

A tax accountant is a financial expert who specialises in tax preparation and compliance. Whether you’re an individual with a simple tax situation or a business owner managing multiple income streams, they help ensure your taxes are filed accurately and on time.

Most tax accountants work with individuals, small businesses, or corporations to calculate taxable income, apply eligible tax deductions, and complete their tax return. Their knowledge of current tax laws makes them essential during tax season.

They may also represent clients in dealings with HMRC, especially if a background check or audit is involved.

How to Do Tax Return With an Accountant?

Filing your tax return with the help of an accountant is often quicker, more accurate, and far less stressful than doing it alone. Here’s a step-by-step breakdown of what to expect:

1. Initial Consultation

You’ll begin by discussing your financial situation with the accountant. They’ll ask questions to determine the type of tax return you need, whether it's a simple individual return or a more complex one involving self-employment, property, or small business taxes.

2. Document Collection

Next, you’ll be asked to submit essential paperwork. This includes employment income documents such as P60s or P45s, bank account details, your HMRC correspondence, and any supporting documents related to income, deductions, or tax credits. Being organised at this stage ensures the process runs smoothly.

3. Review & Preparation

Your accountant will then calculate your tax obligations, identify available deductions, and apply relevant credits such as the income tax credit or earned income tax credit. This step is crucial for reducing your tax liability and maximising any potential refund.

4. Final Filing

Once everything is reviewed and approved, your accountant will file your tax return electronically with HMRC, using certified tax software. They’ll confirm submission and let you know when to expect your refund or if any tax is due.

5. Post-Filing Support

Even after the return is filed, your accountant remains available to answer questions or respond to HMRC if any follow-up is needed. They can also assist with corrections, appeals, or late filings if required.

Running a retail business? Read What Retailers Must Know About Retail Tax in 2025 to stay ahead of upcoming changes.

What Does a Tax Accountant Do for You?

A tax accountant offers much more than just filling out forms during tax season. They play a critical role in helping you manage your financial responsibilities, reduce tax burdens, and stay compliant with ever-changing regulations. Here are the key responsibilities they handle on your behalf:

1. Filing and Preparing Tax Returns

One of their core duties is preparing and filing accurate tax returns for individuals, sole traders, and businesses. They ensure all earned income and relevant related services, such as dividends, pensions, or rental earnings, are correctly reported. Whether you’re submitting an individual tax return or a more complex business filing, a tax accountant ensures everything is in order.

2. Reducing Your Tax Liability

Tax accountants are skilled in identifying opportunities to lower your taxable income. They apply deductions such as home office expenses, business expenses, student loan interest, and the child tax credit, helping you legally reduce what you owe and potentially increasing your tax refund.

3. Offering Professional Advice

Beyond annual filings, tax accountants provide tailored professional advice throughout the year. Whether you’re investing in real estate, earning rental income, or building a retirement savings plan, they help you make informed decisions that align with tax efficiency and long-term goals.

4. Staying Compliant with Regulations

Tax legislation changes regularly, and staying compliant can be challenging. A tax accountant ensures your income tax return meets current tax laws, minimising the risk of penalties, interest, or HMRC investigations. They also ensure that your filings adhere to deadlines, forms, and documentation requirements.

Are you a founder juggling tax responsibilities? Don’t miss our blog Tactical Tips for Founders to Manage Your Taxes for practical guidance.

What Does My Accountant Need for Tax Return Filing?

To file your tax return accurately and on time, your accountant will need a clear picture of your financial situation. Having all relevant documents ready not only speeds up the process but also reduces the risk of errors, missed deductions, or delays in receiving your tax refund.

Here’s a checklist of what accountant needs for tax return:

• National Insurance Number: This unique identifier is essential for accessing your HMRC records and filing your tax return correctly.
• Employment Income Records: Provide your P60 from your employer, which outlines your total pay and tax deducted for the year. If you’ve had multiple jobs or changed employers, include all relevant forms.
• Tax Documents from Previous Tax Years: These help your accountant review past filings, carry forward unused allowances, or correct previous errors if needed.
• Receipts for Deductible Expenses: If you're self-employed or claiming work-related expenses, include receipts for costs such as business travel, office supplies, or professional training. These can reduce your taxable income.
• Bank Account and Debit Card Details: Ensure your bank account and payment details are available for processing refunds or settling outstanding tax liabilities.
• Rental Income or Additional Earnings: If you earn money through rental properties, freelancing, dividends, or other side income, submit detailed statements showing dates, amounts, and expenses incurred.
• State Pension or Pension Information: If you're retired, pension income statements or State Pension details are necessary to report your full income accurately.

Need a simpler way to manage your taxes? Discover smart tips in Make Tax a Doddle.

How Much Does an Accountant Charge to Do a Tax Return?

Fees can vary depending on the accountant’s experience, your location, and the complexity of your return. Here’s a general guide to average pricing in the UK:

Some accountants also offer a maximum refund guarantee or package their services into an annual tax preparation fee. These may include additional support such as mobile app access, income tax assistance, or year-round advice.

These figures are averages based on publicly listed rates from UK tax advisors and accounting platforms. Actual fees may vary depending on location, scope of service, and individual accountant qualifications.

Why Is a Tax Accountant Better Than Doing Your Own Taxes?

While doing your own taxes using certified tax software may seem convenient, it often lacks the precision and insight that a qualified professional can offer. A tax accountant not only ensures accuracy but also helps you save money, time, and unnecessary stress. Here’s how:

1. Avoid Costly Mistakes

Tax forms can be complicated, especially if you’re juggling multiple income sources, investments, or tax credits. A tax accountant understands how to classify income correctly, apply the right deductions, and avoid red flags that could trigger an audit. Their expertise greatly reduces the risk of tax mistakes that could lead to fines or HMRC inquiries.

2. Maximise Your Tax Refund

A trained professional knows how to optimise your return based on current tax laws. From claiming the full value of your expenses to ensuring you're eligible for the earned income tax credit or child tax credit, they’ll make sure you don’t miss out on any benefit you’re entitled to, ensuring you receive the maximum refund possible.

3. Save Time and Reduce Stress

Preparing your own tax return can take hours, if not days, especially if you're unfamiliar with the forms or facing a complex situation. A tax accountant streamlines the process, handles the paperwork, and answers your questions so you’re not left second-guessing. Their support is particularly helpful during peak tax season, when stress levels tend to rise.

4. Stay Legally Compliant

Missing the filing deadline or misreporting even a small amount of income can lead to penalties, interest, or investigations. Tax accountants stay up to date with changes in legislation and ensure your return meets all current requirements. With their help, you remain fully compliant with HMRC regulations, now and in the future.

5. Get Year-Round Professional Advice

Tax planning isn’t just a once-a-year task. A good accountant offers ongoing guidance, whether you’re buying property, launching a business, or adjusting your retirement savings plan. Their advice can help reduce your tax liability across the entire year, not just at filing time.

Looking to reduce liabilities as a business owner? Check out our guide on Building a Tax-Efficient Startup (2025) for smart tax strategies.

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Conclusion

Whether you’re filing a simple tax return or managing small business taxes, working with a qualified tax accountant can save you time, reduce your tax liability, and help you stay fully compliant with HMRC regulations. From preparing accurate returns and identifying deductions to offering year-round professional advice, their expertise ensures you make informed financial decisions, both during tax season and beyond.

If you're unsure how to do tax return with accountant, know that the process is straightforward and highly beneficial. Instead of navigating the complexities of tax preparation alone, consider the peace of mind that comes with expert support. With the right accountant, you’re not just filing paperwork, but you’re optimising your financial future.

Frequently Asked Questions

What qualifications does a tax accountant need?

In the UK, a tax accountant usually holds a bachelor’s degree in accounting, finance, or a related field. They may also pursue professional certifications such as ACCA or CTA, and must complete ongoing training to remain compliant with tax regulations and industry standards.

What if you miss the tax return filing deadline?

Missing the Self Assessment tax return deadline of 31 January can result in immediate £100 penalties and added interest. To avoid escalating charges, contact your tax accountant right away. HMRC also issues daily penalties if the return is over three months late.

What’s the difference between a tax preparer and a tax accountant?

A tax preparer focuses on completing and filing tax returns using standard procedures. A tax accountant provides broader financial support, including strategic tax planning, compliance advice, and guidance on minimising tax liability under UK tax regulations.

Can tax accountants help with previous years' taxes?

Yes, tax accountants can amend tax returns from previous years. They help correct mistakes, claim missed reliefs, and address HMRC issues using prior tax documents and HMRC correspondence, ensuring your filing history is accurate and fully compliant.

Is it better to hire a local or online accountant?

Both local and online accountants offer effective services. Online options provide convenience and competitive pricing, while local accountants may offer more personalised support. The best choice depends on your needs, communication preferences, and the complexity of your tax situation.