Filing a Self Assessment tax return can feel straightforward for some self-employed individuals. If they have maintained clear, accurate records throughout the year and are confident working with figures, the process becomes routine. They understand the tax reliefs and allowances available and how to apply them appropriately. For those with uncomplicated finances, minimal expenses, and prior experience, Self Assessment may require little more than a couple of hours each year.
However, this is not the case for everyone. Many self-employed people lack familiarity with the Self Assessment process, or they find financial paperwork overwhelming. For these individuals, tax season is often a source of stress and procrastination. It’s not uncommon for them to push filing their return to the last minute, increasing the risk of errors or even missing the deadline altogether. This can lead to penalties and additional anxiety. A common worry is also whether they are claiming all available tax reliefs and allowances, which can have a direct impact on how much tax they pay.
Exploring Support Options
If you’re unsure about how to handle your Self Assessment tax return, you don’t need to go it alone. Two main types of support are commonly used by self-employed individuals: hiring an accountant or using Self Assessment software. Both options can simplify the process, but each comes with its own set of advantages and trade-offs.
The Cost of Professional Help
Cost is often a key factor when choosing between an accountant and tax software. Hiring a professional to prepare and submit your tax return generally costs between £150 and £400 per year, excluding VAT. In some cases, lower-priced services may be basic, and the accountant may not offer much in the way of tailored advice. More experienced accountants who provide a comprehensive service typically charge more.
When working with an accountant, you still have a role to play. You must supply accurate financial records. If your records are disorganised or incomplete, you may be charged additional fees for the time spent sorting through receipts and invoices.
On the other hand, Self Assessment tax software is more affordable and appeals to those who are comfortable with technology and managing their own figures. Many software options integrate with bookkeeping tools or online banking, making it easier to enter income and expenses. For those looking to keep costs down while maintaining control of the process, tax software can be a practical solution.
Assessing Ease of Use
Accountants provide a hands-off experience. Once you’ve delivered the necessary documentation, they handle the technical details of your tax return. This can be a significant advantage if you dislike dealing with numbers or tax forms. Good accountants will streamline the process to save time and effort for both parties.
Self Assessment tax software is designed with simplicity in mind. Even users with limited knowledge of tax rules can usually find their way through the process. Many platforms guide you step by step and offer pop-up explanations or prompts to clarify unfamiliar terms. Over time, the process becomes easier as you gain confidence and familiarity with the interface.
Convenience in Practice
Using an accountant requires some coordination. You might need to email your documents or grant access to cloud-based financial records. Occasionally, you may need to drop off hard copies or respond to follow-up questions. Although relatively simple, it does involve some back-and-forth communication.
Software, by contrast, offers more flexibility. It can be accessed at any time from a computer or mobile device, giving you the freedom to work on your tax return when and where it suits you. You can take breaks and return to the task later without disrupting anyone else’s schedule. For those managing a busy lifestyle, this level of control can be highly appealing.
Evaluating Time Commitment
Accountants may take time to process your return, especially during peak filing season when they are busy with other clients. As long as the return is filed by the deadline, this usually isn’t a problem. Accountants typically charge a flat fee, so you’re not paying extra even if the process takes a few weeks.
Self Assessment software is designed to speed things up. It lets you jump to the relevant sections and helps avoid duplication. For someone filing manually, the process can take around two and a half hours. Using tax software may cut this down to an hour or less. The time saved can be significant, especially if you’re handling other aspects of your business.
Ensuring Accuracy in Tax Returns
Accuracy is a critical factor when submitting your Self Assessment tax return. Mistakes can result in penalties, unnecessary correspondence with HMRC, or worse, an investigation into your finances. This is where both accountants and software platforms aim to provide support, though they do so in different ways.
Accountants with experience in self-employment and small business tax generally have the knowledge to ensure your return is completed correctly. They understand which figures belong in which boxes and how to claim the appropriate allowances without triggering red flags. Because of their expertise, they can help minimize the chance of errors. However, mistakes are still possible—especially during the busy period leading up to the Self Assessment deadline. If an accountant is rushed or if the information you provide is unclear or incomplete, errors can still occur.
Self Assessment software offers its own tools for maintaining accuracy. These platforms are built to guide you through each section logically, asking the right questions to gather the necessary information. Many also perform real-time error checks, flagging common issues such as mismatched totals, missing data, or invalid entries. If your business records are organised and you follow the prompts carefully, software can be just as accurate as an accountant. In fact, the structured nature of the process often makes it easier to spot inconsistencies before submitting.
Quality of Customer Support
The level of support available is another area worth exploring. Good accountants offer tailored advice based on your circumstances. If you’re unsure about something, they can explain how it applies to you. If your business experiences changes or complications, they may be able to provide planning tips or advice to help reduce your tax bill in future years.
However, not all accountants provide the same level of service. Some operate more like production lines, processing as many tax returns as possible without personal engagement. Others may be hard to reach during the busiest weeks of January. If customer service and responsiveness are important to you, it’s worth seeking out an accountant who is known for taking time to communicate clearly and reliably.
Self Assessment software providers understand that users may need help, especially those new to tax returns. Many offer support through email, live chat, or even phone lines, though availability can vary. Some offer 24/7 access to technical assistance or in-app guidance, which can be extremely helpful if you’re working late at night or on a weekend. The most user-friendly platforms also provide detailed help sections, FAQs, and glossaries to explain terminology and tax rules in plain language.
Dealing with Complexity
If your tax situation is straightforward—perhaps you’re a sole trader with a single source of income and few expenses—either an accountant or tax software can help you complete your return effectively. But as your finances become more complex, the choice becomes more nuanced.
For example, if you have multiple income streams, claim capital allowances, earn dividends, or operate through a limited company in addition to your self-employment, an accountant may be better equipped to deal with these layers. They can ask the right questions to uncover all relevant financial details and apply the correct treatment to each.
Some tax software platforms can handle complexity, too, but the responsibility to understand how to enter information correctly still falls on the user. While prompts and guidance can help, they may not substitute for bespoke advice from someone with years of tax experience. In situations involving property income, foreign earnings, or capital gains, professional guidance might reduce the risk of costly mistakes.
Flexibility and Independence
One advantage of using software is the level of independence it offers. You’re in control of the process, which appeals to many self-employed individuals who prefer to manage their own affairs. This flexibility can be liberating. You’re not dependent on someone else’s availability, and you can work on your return in stages if needed.
This level of control also fosters a better understanding of your financial position. By working through the return yourself, you become more aware of how much income you’ve earned, where you’ve spent money, and what you can claim as allowable expenses. This knowledge can prove useful when making business decisions.
Accountants, while relieving you of much of the administrative burden, don’t necessarily encourage the same level of engagement. Once the paperwork is handed over, you may not think about your finances again until next year. This may be ideal for those who are busy or uninterested in the finer points of tax, but it may also mean you miss opportunities to improve your financial efficiency.
Long-Term Value
Over time, the decision between software and an accountant can be influenced by the value they deliver. Software has the advantage of being relatively inexpensive year after year. Some packages come with additional features that help with bookkeeping, invoicing, or estimating tax liabilities as the year progresses. This can make it easier to plan ahead and avoid surprises.
Accountants may provide value in different ways. They can help you develop long-term strategies for managing your finances, structuring your business, or minimising tax liabilities legally. If you are considering incorporating your business, employing staff, or investing in equipment, an accountant’s advice can prove invaluable.
It’s also worth noting that some people choose to use both. They manage their tax returns using software but pay for occasional consultations with an accountant for strategic advice or to check their figures before filing. This hybrid approach can offer the best of both worlds—keeping costs down while ensuring peace of mind.
Security and Privacy Considerations
Whether using an accountant or tax software, security is a valid concern. When working with an accountant, you typically share your financial data via email, cloud storage, or secure portals. Reputable accountants will have data protection measures in place to keep your information safe.
Self Assessment software must also meet strict standards, especially if it’s approved by HMRC. Most providers use encryption and secure login protocols to protect user data. Still, users should take care to use strong passwords, enable two-factor authentication if available, and avoid accessing financial information over public Wi-Fi networks.
For many users, having everything in one secure location through software can be more reassuring than handling paper records or emailing documents to and from an accountant. The digital trail makes it easier to track changes and revisit old submissions when needed.
Adaptability to Changing Tax Rules
Tax rules evolve regularly, and staying up to date is essential for accurate filings. Accountants usually stay on top of legislative changes and update their processes accordingly. When rules change, they know how to apply them to your situation and can explain how these changes affect you.
Tax software providers also update their platforms in line with HMRC requirements. Many release updates ahead of the tax year end, ensuring the forms, guidance, and calculations reflect the latest regulations. Some also send reminders or publish updates to notify users of significant changes. However, you must still read the updates or be aware enough to seek them out.
Accountants, through direct contact, may be more proactive in drawing your attention to new reliefs, upcoming deadlines, or planning opportunities. Software relies on you being proactive, although it increasingly supports this with alerts and notifications.
Deciding What Works for You
Ultimately, the best support for your Self Assessment tax return depends on your preferences, experience, and the complexity of your tax affairs. Those who value hands-on assistance, strategic planning, and peace of mind may continue to favour working with accountants. Others who prefer independence, affordability, and flexibility may find tax software a better fit.
Real-Life Scenarios and Choosing What Works for You
When Software Might Be the Right Choice
There are many situations where using Self Assessment tax software makes the most sense. One common example is a self-employed individual with straightforward income. A freelance designer, for instance, who works with a handful of clients, charges by the project, and tracks expenses using a basic spreadsheet, may find software not only suitable but ideal.
Such users benefit from the simplicity and speed of automated platforms. They can log in, enter their income and expenses, answer simple prompts about their business, and get their tax return submitted in under an hour. For them, the ability to use the software any time of day, pause midway through the process, and return later is invaluable.
Another scenario might involve someone already using digital bookkeeping tools. Many platforms now integrate seamlessly with Self Assessment tax software. If someone manages their finances throughout the year with digital tools, filing their tax return becomes a matter of pulling in that data and checking it for accuracy. This approach reduces duplication of effort and helps maintain consistent, accurate records.
For those working across multiple locations or frequently on the move, the portability of cloud-based tax software also becomes a major asset. They can upload receipts, check totals, or complete their return from a laptop or mobile device while travelling. Convenience and control are often key drivers in these choices.
When Hiring an Accountant Is Wiser
There are also clear instances when working with an accountant is a safer, more appropriate path. One of the most common examples is when self-employment is combined with other income sources, such as property rental, investments, dividends, or a part-time job. The complexity introduced by multiple income streams can lead to uncertainty, and even small mistakes may be costly.
If someone is unsure how to report a particular type of income or relief, or they suspect they might be eligible for tax breaks they don’t fully understand, an accountant can guide them through the options. In these cases, the cost of professional help can be easily justified by the financial advantages of correctly claiming all eligible reliefs and avoiding overpayment.
Another example is when someone has recently started their business and is still coming to grips with the Self Assessment system. New sole traders may not be familiar with allowable expenses or the rules around capital purchases. An accountant can explain the implications of each decision and help them set up solid financial practices from the outset.
Significant changes to a person’s situation may also trigger the need for an accountant. For instance, moving from sole trader status to running a limited company, employing staff, or buying or selling a business all introduce layers of complexity best handled by a professional.
Hybrid Approaches to Tax Filing
Some individuals prefer a middle-ground solution, combining software with occasional accountant support. This hybrid approach is especially useful for those who enjoy the independence of managing their own tax returns but want the reassurance of expert input now and then.
A typical example might be a consultant who uses tax software to complete most of the return, but books a one-hour meeting with an accountant before filing to review the figures. This kind of spot-check can highlight any overlooked deductions or errors, providing peace of mind without incurring the full cost of outsourcing the entire return.
Others may choose software year after year, then consult an accountant periodically when something major changes. This model allows for long-term cost savings without sacrificing the ability to seek professional help when it matters most.
Transitioning Between Methods
Some self-employed individuals start out doing everything themselves but later shift to using an accountant as their business grows. Others begin with professional support and eventually take control as they become more confident and experienced. Transitioning between methods is entirely possible and can be a smart decision depending on how your circumstances evolve.
Moving from software to an accountant typically involves providing a copy of your previous tax returns, bookkeeping records, and relevant documentation. Most accountants are used to onboarding new clients and can help you make the transition smoothly.
Switching from an accountant to software can also be straightforward, especially if your previous returns are in good order. Many software platforms allow users to manually enter previous year’s data or upload files. If you’ve learned from past interactions with your accountant and are ready to take more control, software gives you the tools to do that.
Learning Through Doing
One benefit of using tax software is the learning curve it encourages. When you take responsibility for completing your own return, you’re more likely to understand what you earn, spend, and owe. This greater financial awareness can help inform decisions about pricing, saving, and investing.
For some, this process builds confidence over time. The first return might take longer and require more effort, but each subsequent year becomes easier. You learn to spot what’s deductible, how to organise records effectively, and how changes in income affect your tax liability. This knowledge isn’t just useful at tax time—it benefits your business overall.
An accountant can also contribute to your financial education. Some are willing to walk clients through the reasoning behind their recommendations, share tax tips, or provide templates for managing expenses. If you find a supportive accountant who is willing to educate as well as file, it can be a valuable long-term relationship.
Personal Preferences and Comfort Zones
The decision between software and an accountant often comes down to personal preference. Some individuals enjoy handling their own finances and feel empowered by using software. Others find the process tedious or stressful and prefer to delegate.
There’s no universal right or wrong answer—only what works best for your personality, lifestyle, and business model. Some people value being in control of every detail; others are happy to hand off responsibility in exchange for simplicity. Time availability also plays a role. If tax prep takes too much time away from core business activities, outsourcing it may be more efficient.
Technology comfort levels also matter. Those who are confident navigating online tools may be more inclined to use tax software, while others may feel more secure speaking to a professional face to face or over the phone.
Making an Informed Decision
If you’re still unsure which route to take, consider your goals for the coming year. Are you planning to grow your business, take on staff, or invest in new assets? Do you want to improve your understanding of tax and business finances, or would you rather focus on your work and leave the admin to someone else?
Assessing how much time you can realistically dedicate to tax prep is also important. Software can streamline the process, but it still requires a time investment. Conversely, hiring an accountant may free up time, but at a financial cost.
You might also consider testing both options. If you’ve been using an accountant, try completing your return using software and comparing the outcomes. If you’ve always done it yourself, book a consultation with an accountant to see what extra value they can provide. These comparisons can reveal insights into what works best for your specific needs.
Financial Planning Beyond the Return
Whether you use software or an accountant, the tax return itself is only part of your overall financial picture. Good financial habits—such as tracking income and expenses regularly, saving for tax throughout the year, and reviewing your business performance—will reduce stress at filing time and lead to better decision-making.
Software can help automate some of these practices, sending reminders to record expenses, estimating future tax liabilities, and creating reports. An accountant can help you plan strategically, advising when to make purchases, claim reliefs, or set up pension contributions.
Whichever method you choose, the key is to stay engaged with your finances year-round. Doing so ensures you’re better prepared at tax time and more confident in your decisions.
Adapting to Business Growth and Changing Circumstances
As your business evolves, so too will your needs when it comes to managing your Self Assessment tax return. A side hustle might turn into a full-time income. A freelancer might take on subcontractors or grow into a registered business with employees. With this growth comes additional tax responsibilities, including new rules, more complicated deductions, and possibly eligibility for different reliefs.
In the early stages of business, many people find software more than adequate. It offers a low-cost, scalable solution that empowers users to understand and manage their tax obligations. But as complexity increases, the need for professional oversight can grow. The transition from software to an accountant often becomes necessary when business decisions start affecting multiple tax categories.
On the other hand, businesses that streamline and simplify their operations—perhaps by discontinuing side projects or selling off secondary income sources—may find that they no longer need ongoing accountant support. In these cases, moving to software can reduce administrative costs without sacrificing compliance.
Understanding that tax solutions aren’t static but must adapt to your current reality is essential. Whether you move toward more automation or more tailored professional advice depends on where your business is heading and how much support you need.
Legal Responsibilities and Avoiding Penalties
Both software and accountants are there to help you meet your legal responsibilities under HMRC’s Self Assessment system. These include filing by the 31 January deadline, accurately reporting your income and expenses, paying any tax due on time, and keeping records for a minimum of five years.
Failing to meet any of these obligations can lead to financial penalties and increased scrutiny from HMRC. Mistakes, missed entries, or late submissions—even if unintentional—are treated seriously. In more severe cases, such as consistently underreporting income or deliberately omitting information, it could result in an investigation.
Using either method, the final responsibility still rests with you. Accountants can be held professionally liable for mistakes, and good ones will carry insurance for that reason, but this doesn’t completely absolve you of accountability. Similarly, software tools are only as accurate as the information you provide. If you enter figures incorrectly, the software cannot correct them.
To avoid complications, maintain a clear filing system throughout the year. Ensure all income, from every source, is recorded. Match your records to your bank statements regularly, and seek clarification whenever you encounter uncertainty. Whether you’re using a professional or relying on software, accuracy and transparency should be your priorities.
The Role of MTD and Digital Integration
Making Tax Digital is reshaping how Self Assessment works. Though its implementation for Income Tax Self Assessment has been delayed several times, it is set to become mandatory. Once fully in force, MTD will require self-employed individuals and landlords with income over a set threshold to keep digital records and submit quarterly updates to HMRC through approved software.
This change means digital tax software is no longer optional for many—it’s becoming the standard. Accountants will also need to adapt, using compatible tools and helping clients keep up with the increased reporting frequency. If you’re currently relying on spreadsheets or paper records, the move to MTD-compliant tools is inevitable.
For those already using software, adapting to MTD may involve no more than upgrading to a version that supports quarterly updates. For those using accountants, ensuring your professional is MTD-ready will be crucial. The transition offers an opportunity to streamline record-keeping and reporting, regardless of which method you prefer.
Evaluating Time Versus Money
Every decision in business comes down to time or money. Do you save money by investing your time in handling tasks yourself, or do you spend money to buy time by outsourcing those tasks? Self Assessment tax return support is no different.
Using tax software usually costs less than hiring an accountant, but it does require your time and attention. You need to set aside hours to gather figures, enter data, and double-check everything before submission. For some, this is manageable and even empowering. For others, it’s time that could be better spent elsewhere.
Hiring an accountant costs more, but can significantly reduce the time you need to spend on tax matters. For individuals managing complex operations, the time savings alone may justify the expense. Furthermore, strategic advice from an experienced accountant may lead to tax savings that outweigh their fee.
Assess your priorities honestly. If your schedule is packed and you’re struggling to stay on top of your admin, professional help might be more cost-effective. If you have time to learn the basics and a desire to stay hands-on, software might be the better fit.
Building Long-Term Confidence in Tax Management
Over time, whichever method you choose should lead you to a place of greater confidence. Whether through learning and doing or through developing a trusted relationship with an accountant, the goal is the same: to understand your tax position, stay compliant, and avoid last-minute surprises.
Tax software users often develop stronger habits around record keeping, because they’re directly responsible for the inputs. This can create a clearer picture of income trends and help with forecasting and budgeting. The knowledge gained becomes a tool not just for tax, but for better business planning overall.
Those who work closely with accountants often benefit from strategic thinking and tax planning guidance. Knowing someone has their eye on changes to legislation, spotting opportunities to reduce liabilities, and reminding them of deadlines provides reassurance. This can be particularly helpful during major life or business events, such as marriage, property purchase, or scaling a business.
Consistency also matters. Whichever method you choose, use it well and use it consistently. Keep your records updated, review your financials regularly, and treat tax management as a year-round activity rather than a once-a-year rush.
Future-Proofing Your Approach
The world of taxation is continually evolving. From digital reporting to new rules on income types, allowances, and expenses, staying compliant requires adaptability. Your chosen method of managing Self Assessment should be able to evolve with these changes.
For software users, this means choosing a platform that updates regularly, complies with HMRC requirements, and responds to legislative changes. For those working with accountants, it means having conversations about how new tax rules affect your position and making sure your advisor remains current and proactive.
Planning for the future might also involve setting aside time each quarter to review your finances, update your records, and prepare for upcoming payments. It may mean choosing software that includes forecasting features or working with an accountant who provides year-round support, not just an annual service.
No matter your current setup, think about how well it will serve you in five years. Is it scalable? Does it reduce your stress? Can it adapt to legislative changes? If not, it might be time to revisit your choice.
Conclusion
Managing your Self Assessment tax return is a crucial part of being self-employed, and the method you choose, whether tax software, an accountant, or a combination of both, can significantly impact your experience, efficiency, and compliance.
Throughout this series, we’ve explored the strengths and trade-offs of each approach. Software can offer speed, convenience, affordability, and independence. It empowers users who want to be hands-on with their financial data and are comfortable learning as they go. For those with straightforward tax affairs, few income sources, and a good handle on bookkeeping, software can make filing relatively stress-free while saving money.
Accountants, on the other hand, provide personalised guidance, expert insight, and reassurance, especially for those dealing with complex financial circumstances. They can help identify tax-saving opportunities, interpret changing legislation, and offer tailored strategies that go beyond filing. For individuals with multiple income streams, large expenses, property income, or limited companies, this kind of expertise may be not just helpful but essential.
There is also no rule that says you must choose one or the other exclusively. Many people use tax software for the bulk of their return while consulting an accountant for checks or advice. Others transition between methods as their business evolves. The key is to assess your own situation honestly: the complexity of your finances, your comfort with digital tools, the value of your time, and your long-term goals.
Looking ahead, legislative changes such as Making Tax Digital will continue to shape the way Self Assessment is handled. Staying adaptable and choosing a method that can grow with your business is just as important as getting this year’s return right. Whether that means upgrading your software, building a relationship with an accountant, or finding a hybrid solution, the most important thing is that you remain proactive, compliant, and confident in your tax management.
Ultimately, the best choice is the one that reduces your stress, meets your legal obligations, and supports your success as a self-employed individual. By understanding the pros and cons of each method and being willing to adjust as needed, you’ll be well-positioned to manage your tax affairs effectively now and in the future.