What does an accountant need for tax returns?
Self-assessment can be intimidating, so it’s often easier to work with an accountant to make the process as smooth as possible. However, you need to do a bit of work yourself to make sure your accountant has everything they need in plenty of time. We’ve put together a handy list of tips to help you understand what your accountant needs from you for your tax return.
What does an accountant need for tax return?
There are a number of things your accountant will need to complete your tax return, so keeping diligent and up to date records throughout the year will make your life easier when self-assessment comes around. In simple terms, a record of all of your sources of income and gains for the tax year, including - wherever possible - documentation to back those figures up.
In reality, everybody’s circumstances will be different but here are some handy reminders of the types of information that we might need.
Employment & Pension income – copies of your P60, P45s and P11Ds along with any extra casual earnings or employment related expenses.
Bank interest & Dividends – a note of any dividend income received in the tax year, along with annual interest certificates for non-ISA accounts and tax certificates for any investment portfolio held.
Benefits – the amount and type of any benefits that you claimed, including child benefit.
Pension contributions and gift aid – any personal pension contributions and gift aided donations should be included in your tax return to ensure we claim the right tax reliefs.
Rental income – details of all income and expenses for your rental property(ies). It’s best to include everything that you can think of here, and we’ll make sure that we include the right amounts that we can claim tax relief on.
Self-employment – if you’re self-employed, we’ll need more details – enough to make sure that we can prepare a set of accounts and establish the taxable profits for your business each year, that might be a copy of your bank statements, invoices, access to your accounting records (spreadsheets/Xero subscriptions etc).
Capital gains – any assets sold in the period that give rise to a taxable gain or a loss should be included and we’d need all of the details of the original purchase and the sale, along with a copy of the calculations used for your online CGT return for a residential property.
Other – any other sources of income should be included, along with any investments that you have made through qualifying investment schemes.
If you’re unsure, check with your accountant and pass on everything that you think would be useful, at the earliest point possible. It’s nearly always best to have a chat and pass on the majority of the information in advance rather than leave things until the last minute and, if you’re ever unsure, get in touch and we’ll be more than happy to help.
Does my accountant need a record of all my expenses for my tax return?
Yes - you’ll need to have kept track of all business expenses throughout the last financial year - petty cash receipts, details and proof of equipment purchased, invoices and receipts, as well as mileage records. If it was bought for your business, make sure you keep the receipt!
You’ll also need to provide bank and credit card statements if you’re not already using a cloud bookkeeping software. Facts & Figures clients can benefit from 25% off Xero, an online cloud software which will make your bookkeeping journey much simpler. Contact us to find out more.
If you’re registered for VAT, you’ll need to provide VAT records and, if you have employees, you’ll need to provide PAYE information including payroll and wage records.
Your accountant will also look at your personal income records. As well as your earnings through employment, you’ll need to provide details of your savings income and any pension income. Any gift aided donations will also need to be included in your tax return to ensure the right tax reliefs are claimed. If you claimed through the Self-Employment Income Support Scheme, you’ll also have to be transparent about any grants you were awarded.
When is the deadline to complete self-assessment?
The deadline to complete self-assessment is 31st January, so allow yourself time to get your documents to your accountant. Your accountant will need time to complete the process and keep in mind that your accountant may have a number of clients who leave their tax return to the last minute, so they’ll appreciate you providing your documentation early. Allowing yourself time to find missing information reduces the chance of your accountant being held up – and you facing a fine for not submitting your tax return in time.
How much do accountants charge for tax returns?
The cost of a tax return varies between accountants. We’ve outlined examples of our pricing structure for services on our website, including tax returns and more. For more detailed information on prices, get in touch for a quote and, if you have a comparable quote from somewhere else, we’ll do what we can to match or beat it.