Can I Do My Own Tax Return or Should I Use an Accountant

At Towerstone Accountants we provide specialist personal tax services, for self employed, and individuals across the UK. This article has been written to explain Can I do my own tax return or should I use an accountant, in clear practical terms, so you understand how personal tax and Self Assessment rules apply in real situations. Our aim is to help you stay compliant, avoid costly mistakes, and make confident tax decisions.

Every year I speak to dozens of people who are unsure whether they should complete their own tax return or hand it over to an accountant. It is one of the most common questions I am asked and it usually comes with a mix of hesitation and frustration. People want to do the right thing but they do not want to overpay for help they may not need.

From my experience as a chartered accountant specialising in Self Assessment I can say this is not a black and white decision. Some people can complete their own return accurately with little risk. Others unknowingly expose themselves to penalties missed reliefs or future HMRC enquiries by doing it themselves.

In this article I want to explain the real difference between doing your own tax return and using an accountant. I will walk through what Self Assessment actually involves where people usually go wrong and how to decide what makes sense for you based on your income complexity risk tolerance and time.

This is written from first hand experience not theory. I deal with HMRC every week and I see the same issues come up again and again.

What Self Assessment Actually Is

A Self Assessment tax return is not just a form. It is a legal declaration to HMRC confirming that your income figures expenses and claims are complete accurate and compliant with UK tax law.

When you submit a return you are stating that you have included all taxable income from all sources. You are also confirming that any deductions or reliefs claimed are allowable and supported by records if HMRC asks.

HMRC does not treat Self Assessment as a best guess exercise. If something is wrong the responsibility sits entirely with you even if the mistake was unintentional.

Many people assume HMRC will correct errors automatically. That is rarely the case. HMRC systems calculate tax based on the figures you submit not whether those figures are right.

Who Can Realistically Do Their Own Tax Return

There are people who can complete their own tax return accurately and safely. In my view this is usually limited to very simple financial situations.

You may be suitable to file your own return if:

• You are employed under PAYE with one job

• Your only additional income is small amounts of bank interest

• You have no benefits in kind or side income

• You understand how to check tax codes and P60 figures

• You are confident reading HMRC guidance and applying it correctly

Even in these cases you still need to be careful. Errors often arise from incorrect PAYE figures duplicated income or misunderstanding how benefits are taxed.

For someone in this position doing your own return can be reasonable provided you are comfortable with the responsibility.

Where Self Assessment Becomes More Complex

The moment your income goes beyond straightforward employment things change quickly. Complexity does not always feel obvious at first which is why many people get caught out.

Common situations that add complexity include:

• Self employed income even if it is part time

• Rental income from UK property

• Dividend income beyond basic allowances

• Capital gains from selling assets or property

• Director income from limited companies

• Pension contributions and relief at source

• Child Benefit and the High Income Charge

• Multiple income sources in the same tax year

Each of these areas has its own rules thresholds and traps. The tax return software does not explain strategy or warn you when something has been treated inefficiently.

The Illusion of Simple Software

One of the biggest misconceptions I see is that tax software makes Self Assessment simple. Software makes submission easier but it does not make tax law simpler.

Software asks questions but it does not challenge your answers. If you misunderstand a question or classify something incorrectly the software will not stop you.

For example I regularly see:

• Expenses claimed that are not allowable

• Income omitted because it was paid into a personal account

• Capital gains ignored because no cash was received

• Pension contributions entered incorrectly

• Dividends duplicated or missed entirely

The software calculates tax correctly based on what you tell it. That does not mean the result is correct.

What an Accountant Actually Does

Many people think an accountant just fills in a form. That could not be further from reality when the work is done properly.

When I prepare a Self Assessment return I am not just entering numbers. I am reviewing income sources checking consistency applying reliefs and looking for risk areas.

An accountant should:

• Confirm all income sources are captured

• Apply allowable expenses correctly

• Identify missed reliefs and allowances

• Advise on timing and structure where possible

• Reduce the risk of HMRC enquiries

• Represent you if HMRC raises questions

This is especially important for self employed individuals landlords and directors where judgement and experience matter.

The Cost Question

Cost is often the deciding factor. People worry that using an accountant will cost more than the tax saving.

In reality the cost of an accountant should be weighed against:

• Tax saved through correct claims

• Penalties avoided

• Time saved

• Stress reduced

• Future issues prevented

I regularly see people come to me after filing their own return incorrectly. Fixing mistakes often costs more than getting it right the first time.

In many cases the accountant fee is partly or fully offset by tax savings the client did not know were available.

Risk and HMRC Enquiries

HMRC enquiries are not random in the way people assume. Certain patterns trigger attention.

These include:

• Inconsistent figures year to year

• High expense ratios

• Rental income errors

• Capital gains mismatches

• Late filings and amendments

When you use an accountant you reduce the likelihood of errors that attract attention. If an enquiry does happen your accountant deals with HMRC on your behalf which makes a significant difference.

Dealing with HMRC alone when you are unsure is stressful and time consuming. Many people underestimate this until it happens.

Record Keeping and Evidence

Another area people struggle with is record keeping. HMRC expects you to keep records for specific periods depending on the income type.

If HMRC asks for evidence you need to be able to provide it. Guesswork after submission is not acceptable.

An accountant will usually advise you on what records to keep and how long to keep them. This protects you long after the return is filed.

Confidence and Peace of Mind

One of the most underestimated benefits of using an accountant is confidence. Knowing that your return has been prepared correctly by a professional allows you to move on.

Many people who file their own returns worry about whether they have done it right. That uncertainty lingers until the next tax year or until HMRC writes to them.

Peace of mind has value even if it does not show up as a line on the tax calculation.

When I Strongly Recommend Using an Accountant

Based on my experience I would strongly recommend using an accountant if any of the following apply:

• You are self employed or a company director

• You have rental property income

• You have sold assets or property

• Your income exceeds basic thresholds

• You receive income from multiple sources

• You are unsure what you can claim

• You have missed deadlines previously

In these cases the risk of getting it wrong usually outweighs the cost of professional help.

Can You Switch Between Doing It Yourself and Using an Accountant

Yes and many people do. Some years are simple and others are not.

There is no rule that says once you use an accountant you must always do so. Equally there is nothing wrong with starting on your own and then deciding to get help later.

What matters is recognising when your situation has changed and adjusting accordingly.

Key takeaways

Whether you do your own tax return or use an accountant should be a conscious decision not an automatic one.

Doing it yourself can work for simple situations if you are confident and careful. Using an accountant becomes increasingly valuable as your finances grow more complex.

From my perspective the best outcomes come when people view their tax return as part of their wider financial picture not just an annual chore. The right support at the right time can save money reduce stress and prevent problems long before they arise.

If you are unsure that uncertainty itself is often the clearest signal that professional advice would be worthwhile.

You may also find our guidance on Can I hire an accountant just for my Self Assessment, and How do I find a good accountant for self employed workers, helpful when reviewing related personal tax questions. For a broader overview of Self Assessment deadlines, reporting, and obligations, you can visit our self assessment guidance hub.