How to Find the Right Accountant for Your First Tax Return

A first Self Assessment tax return can feel like a lot all at once. New income from freelancing, rental earnings, dividends, or benefits can trigger filing requirements, and suddenly there are deadlines, registrations, and unfamiliar terms to deal with. HMRC’s online system is workable, but it still expects the right figures in the right places, plus accurate claims for expenses and reliefs.

Getting the setup right the first time helps prevent avoidable mistakes and surprise tax bills. In this guide, we break down the process into clear steps, including when an accountant is worth it, what to prepare, and how to choose the right support for a first return.

Understanding When You Need to File a Self-Assessment

The rules around who needs to file a self-assessment aren't always crystal clear, which is why so many people find themselves caught off guard. Basically, if you've earned money outside of regular PAYE employment, there's a good chance you'll need to complete one.

Common Triggers for First-Time Filing

These are the most common reasons first time filers end up needing Self Assessment.

• You earned more than £1,000 from self employment or side income during the tax year.

• You are a director of a limited company, even if you are paid through PAYE.

• You had rental income over £2,500.

• You or your partner received Child Benefit and one of you earns over £50,000.

• You had foreign income that needs reporting in the UK.

• You made capital gains from selling property or investments.

• Your total income was over £100,000 in the tax year.

• You received tips or commission that were not taxed through your employer’s payroll.

Key Deadlines and Registration Requirements

Timing is everything with self-assessment, and missing deadlines can cost you dearly. You need to register by 5 October, following the tax year you're filing for. Miss this date, and you're already looking at potential penalties, even if you file your actual return on time.

The main deadline everyone knows about is 31 January, that's when your online return and any tax payment are due. But there's also the 31 October deadline for paper returns, though let's be honest, who's still filing on paper these days? First-timers often don't realise that if you owe more than £1,000, you might also need to make 'payments on account' in January and July for the following year's tax bill.

Why First-Time Filers Benefit from Professional Support

Going it alone might seem like the cheaper option initially, but the hidden costs of mistakes can quickly mount up. A good accountant doesn't just fill in forms; they become your financial ally, spotting opportunities and pitfalls you'd never notice yourself.

Avoiding Common Mistakes and Penalties

The penalty system for self-assessment is unforgiving. File one day late, and you're hit with a £100 fine, even if you don't owe any tax. After three months, there are daily penalties of £10. Make an error that HMRC considers careless, and you could face penalties of up to 30% of the tax owed.

First-timers often stumble over seemingly simple things. They'll claim personal expenses as business costs, forget to declare bank interest, or mix up gross and net figures. Some people accidentally claim the marriage allowance twice or forget they've already paid tax through PAYE on some income. An experienced accountant spots these issues before they become expensive problems.

Maximising Tax Relief and Allowances

This is where professional help really pays for itself. Most people know about the personal allowance, but what about the trading allowance, marriage allowance, or professional subscriptions? If you're self-employed, are you claiming for the business use of your home? Your accountant knows exactly which reliefs apply to your situation.

Working from home expenses alone can save you hundreds. Then there are mileage claims, professional development costs, and even some surprising allowable expenses like eye tests if you use a computer for work. A skilled accountant ensures you're not leaving money on the table while keeping everything above board with HMRC.

What to Expect When Working with an Accountant

Bringing an accountant on board shouldn't feel intimidating. The best ones make the process surprisingly straightforward, taking the weight off your shoulders while keeping you informed about what's happening with your finances.

Initial Consultation and Information Gathering

Your first meeting sets the tone for everything that follows. A good accountant will want to understand your complete financial picture, not just your immediate self-assessment needs but your broader goals too. They'll ask about your income sources, future plans, and any concerns you have about taxes.

Expect lots of questions during this phase. They need to know about your employment status, any benefits you receive, pension contributions, and investment income. Don't worry if you don't have all the answers immediately. Part of their job is helping you identify what information you need to gather. Most accountants provide an all-inclusive checklist after your initial chat, making it clear exactly what documents and figures they'll need.

Ongoing Support Throughout the Tax Year

The relationship doesn't end once your return is filed. Quality accountants offer year-round support, answering questions as they arise and keeping you informed about any tax changes that might affect you. They'll remind you about important dates, help you plan for tax payments, and often provide quarterly check-ins to guarantee you're on track.

Many accountants now offer digital bookkeeping tools or apps that make record-keeping painless. You snap photos of receipts, and they handle the categorisation. Some even provide real-time tax calculations, so you're never surprised by your tax bill. This ongoing relationship means you're building a financial history with someone who understands your situation inside out.

Choosing the Right Accountant for Your First Self Assessment

Not all accountants are created equal, and finding the right match for your needs takes a bit of research. The perfect accountant for your mate's complex property portfolio might be overkill for your straightforward freelance income.

Essential Qualifications to Look For

Professional qualifications matter more than you might think. Look for accountants who are members of recognised bodies like ICAEW, ACCA, or CIMA. These letters after their name mean they're properly trained, insured, and bound by professional standards. They also need to be registered with HMRC as an agent to file returns on your behalf.

Beyond qualifications, consider their experience with situations like yours. An accountant who specialises in contractors will understand IR35 inside out, while someone focused on landlords knows every property tax relief available. Using a service like Accountant Connector can help match you with professionals who have the right expertise for your specific needs.

Service Packages and Pricing Structures

Accountancy fees vary wildly, from under £200 for basic returns to thousands for complex affairs. Most accountants offer tiered packages, basic self-assessment filing, all-inclusive tax planning, or full bookkeeping services. First-timers often benefit from middle-tier packages that include tax planning advice without being very costly.

Be wary of rock-bottom prices that seem too good to be true. They often come with hidden extras or minimal support when you need it. Equally, don't assume the most expensive option is best. Many excellent accountants offer competitive rates, especially for straightforward first-time filers. Always clarify what's included: Will they handle HMRC correspondence? Do they offer tax planning advice? Is there a limit onthe number of queries you can make?

Documents You'll Need to Provide Your Accountant

Having the right documents ready helps your accountant file accurately and spot deductions you might miss. The goal is to cover every income source and any tax reliefs, without overloading them with unnecessary paperwork.

• Employment records
  Provide your P60 or P45, plus any P11D forms that show benefits in kind like a company car or private medical insurance.

• Bank statements for all accounts
  Include statements for current accounts and savings accounts so income, interest, and major transactions can be checked and matched.

• Self employed or side business records
  Share invoices, sales records, business bank statements, and receipts for allowable expenses so profits and deductions can be calculated correctly.

• Rental property documents
  Landlords should include rental income records, mortgage interest statements, and receipts for repairs and maintenance.

• Investment and savings income statements
  Include dividend vouchers, interest certificates, and statements from investment platforms. Even small amounts can matter depending on your overall income.

• Pension contribution records
  Provide workplace and personal pension contribution details since certain contributions can reduce your tax bill or affect the relief you can claim.

• First time Self Assessment details
  If this is your first return, you will need your National Insurance number and your Unique Taxpayer Reference once HMRC issues it.

If something is missing, do not panic. Accountants can usually tell you what matters most, and you can often request duplicates from employers, banks, or HMRC.

Conclusion

Taking the plunge into self-assessment doesn't have to be the nightmare you've been imagining. Yes, there's paperwork involved and deadlines to meet, but with the right support, it becomes just another part of managing your finances effectively. The key is starting early, staying organised, and recognising when professional help makes sense.

For most first-time filers, working with an accountant transforms what could be a stressful scramble into a smooth, educational process. You're not just getting your tax return filed; you're learning about your finances, discovering savings you didn't know existed, and building a relationship with someone who can guide your financial decisions for years to come.

The peace of mind alone is worth the investment, knowing that your return is accurate, compliant, and optimised for your situation.

Frequently Asked Questions

When should I register for self-assessment as a first-time filer?

You must register by 5 October following the tax year you're filing for. Missing this deadline can result in penalties even if you file your actual return on time. The main return deadline is 31 January for online submissions.

How much does an accountant typically charge for first-time self-assessment filing?

Accountancy fees vary from under £200 for basic returns to thousands for complex affairs. Most first-timers benefit from middle-tier packages that include tax planning advice. Be cautious of very cheap options, as they often have hidden extras or minimal support.

Can I switch from doing my own self-assessment to using an accountant mid-year?

Yes, you can engage an accountant at any point during the tax year. They'll help gather historical information, ensure you're claiming all available reliefs, and can even retrieve missing documents from HMRC's records or help obtain duplicates from banks and employers.

What qualifications should I look for when choosing a self-assessment accountant?

Look for accountants with recognised qualifications like ICAEW, ACCA, or CIMA membership. They must be registered with HMRC as an agent to file returns on your behalf. Consider their specific experience with situations similar to yours, whether that's freelancing, property, or company directorship.

What happens if I make mistakes on my first self-assessment?

Errors can result in significant penalties. File one day late, and you'll receive a £100 fine. After three months, it's £10 daily. Careless mistakes could mean penalties up to 30% ofthe tax owed. An accountant helps avoid common errors like claiming personal expenses as business costs.