How much should you pay for an accountant?
Fees vary depending on the services involved and the complexity of your affairs. A basic self assessment return for a sole trader in Dorridge is priced accordingly, while a limited company requiring year-end accounts, corporation tax and payroll involves a more substantial annual fee. Get in touch for a tailored quote based on your specific needs.
The headline fee is only part of the picture. A lower price that excludes VAT returns, payroll and advisory time can cost more in practice than a higher all-in arrangement. Always ask for a written breakdown of what is and is not included before committing to a firm.
Is it better to use an accountant for a tax return?
For most people, yes it is better to use an accountant for a tax return. If your only income is from employment and there are no complicating factors, you may manage the self assessment process yourself. Add rental income, dividends, capital gains, foreign income or self-employment to the mix and the margin for error grows quickly.
A good accountant who knows your affairs can help ensure all eligible reliefs and allowable expenses are identified and respond efficiently when HMRC raises questions. Many clients find that professional advice saves time, reduces errors and helps identify available tax reliefs.
What is the 4 year rule for HMRC?
HMRC has four years from the end of the relevant tax year to raise an assessment where a taxpayer has made an innocent error. For careless behaviour, that window extends to six years. Where HMRC suspects deliberate non-disclosure or fraud, the limit extends to 20 years.
The four-year limit does not provide full protection. Where HMRC opens an enquiry into a return that falls within the window, they can examine the full detail of everything disclosed. Professional representation matters considerably if you receive an enquiry notice.
Can I just gift £100,000 to my son?
There are no legal restrictions on making cash gifts to family members. Whether those gifts create a tax liability depends on the circumstances. Gifts made within seven years of death may count towards your estate for inheritance tax purposes under HMRC's potentially exempt transfer rules.
Annual gifting exemptions allow up to £3,000 per tax year free of inheritance tax, along with small gifts of up to £250 per recipient. Gifts from surplus income that form part of a regular pattern can also qualify for exemption. For a transfer of this size, taking tax advice before making the gift is the right approach. Jerroms' trusts and estate planning team can help you structure gifts in the most tax-efficient way.
Can HMRC claim tax from 10 years ago?
In cases of deliberate non-disclosure, HMRC can investigate returns going back 20 years. For innocent errors the standard limit is four years, and for careless errors it is six.
If you believe past returns contain errors or omissions, voluntary disclosure is a far better position than waiting for HMRC to identify the issue. Penalties are considerably lower for those who come forward, and HMRC has significant data-matching capability across third-party sources including banks, letting platforms and Companies House records.
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