With the tax year nearly over, many will be looking to hire a professional accountant to fix up their book-keeping before filing with HMRC. But if you’ve never engaged the services of an accountant it can be difficult to know what to look for in an accountant. A good place to start is with professional accountancy bodies like the ICAEW.
1. Deadlines – don’t leave it too late!
The first tax deadline is 31st October – the date when you must file a paper copy of your tax return if your income is required (for instance, if you are self-employed or derive income from land and property). This means that HMRC will calculate your liability for you.
If you don’t meet the deadline, 31st January is the last possible date to avoid a fine. You must file you return online by this date. So, to avoid the inevitable rush, it will be important to book an accountant well in advance of these deadlines to ensure they have enough time to see to your taxes.
2. Qualifications
It’s essential that you check the qualifications of a potential accountant. The Institute of Chartered Accountants in England and Wales (ICAEW) lists approved accountants – and these people will have the letters ACA or FCA after their name. An ICAEW accountant:
- Has a minimum of three years of rigorous training
- Is committed to ongoing skills development
- Is answerable to a complaints procedure should you have a grievance
- Will have indemnity insurance
3. Insurance
It’s crucial that advisers are covered by professional indemnity insurance. If not,you will have issues if you need to claim for any financial loss suffered due to their bad advice
4. Preparing your own tax return
You might have a simple enough return that completing it yourself is a feasible option. There are software programmes available which can help you complete the return, and you can always ring HMRC to help you as you complete it.
5. When should youuse an accountant?
If your tax return is causing you a lot of stress or taking up a lot of time, it’s often worth going to the accountant just to save yourself the stress.If you have complicated affairs it’s also a good idea to go to the accountant to make sure you aren’t losing out on any deductions.
Vivienne Egan writes for Thomson Local which features a directory of local accountants – http://www.thomsonlocal.com/Accountants/UK/
