What do accountants do?
Accountants help keep your financial affairs organised, accurate and compliant. For businesses, this usually includes preparing accounts, calculating tax liabilities, submitting returns, managing payroll, dealing with VAT and keeping proper records throughout the year.
For individuals, an accountant can help with self assessment, property income, investment income, capital gains tax, inheritance tax planning and other personal tax matters. The right accountant should also help you understand what the figures mean, where risks may sit and where there may be opportunities to plan more efficiently.
How much do accountants charge for tax returns?
The cost of a tax return depends on the complexity of your income and the amount of work involved. A straightforward self assessment return will usually cost less than a return involving self-employment, property income, capital gains, dividends or several income sources.
Before appointing an accountant, ask for a written fee estimate and check what is included. It is also worth confirming whether the fee covers basic HMRC correspondence after submission.
Can I use my accountant’s address as my business address?
In some cases, you may be able to use your accountant’s address as a registered office or correspondence address, but it depends on the services the firm offers and the type of address you need.
A limited company must have a registered office address where official Companies House and HMRC correspondence can be sent. Some accountants offer this as an additional service. Others may only allow their address to be used for certain types of correspondence.
You should always agree this in advance rather than using an accountant’s address without permission. If privacy, mail handling or Companies House visibility is a concern, your accountant can explain the options available.
Can accountants help you save costs?
Yes, accountants can often help reduce costs, although the exact savings depend on your circumstances. They can identify allowable expenses, improve tax efficiency, reduce penalties, streamline bookkeeping, advise on VAT and help you avoid mistakes that may be expensive to correct later.
For businesses, accountants can also help you understand where money is being spent, whether margins are healthy and where systems could be improved. Better financial information often leads to better decisions, especially for growing businesses where costs can creep up unnoticed.
The value of an accountant is not only in reducing tax. It is also in saving time, improving accuracy and giving you the information needed to manage your finances properly.
What software do accountants use?
Accountants use a range of software depending on the needs of the client. For bookkeeping and cloud accounting, common options include Xero, QuickBooks, Sage and FreeAgent. These platforms can connect to bank feeds, manage invoices, track expenses and support VAT submissions.
Accountants may also use specialist tax, payroll, accounts production and practice management software behind the scenes. The right software depends on the size of the business, the complexity of its transactions and how much the client wants to manage themselves.
Jerroms can help clients choose and set up suitable cloud accounting software, as well as provide ongoing bookkeeping and VAT support where needed.
How will Making Tax Digital change tax returns?
Making Tax Digital is changing how many individuals and businesses keep records and submit tax information to HMRC. Instead of relying on paper records or a once-a-year process, affected taxpayers will need to keep digital records and use compatible software.
For VAT-registered businesses, Making Tax Digital already applies to VAT submissions. The rules are also being extended to income tax for some self-employed individuals and landlords, meaning tax reporting will become more regular and more software-led.
For Knowle sole traders, landlords and small business owners, this means it is worth getting digital records in order early. Cloud accounting software can make the transition easier and reduce the risk of errors when the new requirements apply. Jerroms can help you understand what applies to your situation and prepare your records and software in advance.
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