Every year, millions of individuals across the UK are required to submit a Self Assessment tax return to report their income to HMRC. For many, the process is far from enjoyable. It can be time-consuming, confusing, and sometimes stressful, especially for those who aren’t familiar with the UK’s tax system. Sole traders, landlords, freelancers, and those with multiple income sources often find themselves caught between the need to remain compliant and the pressure of understanding how to fill in the correct figures in the right sections of the return.
The paperwork itself isn’t just a formality. It involves detailed information about income, expenses, allowances, and other financial matters, all of which must be submitted accurately and on time. Mistakes can lead to penalties or overpaid taxes. For this reason, many individuals have traditionally turned to accountants for help. But the growing cost of professional tax services, combined with a rising number of alternative methods, has caused many to reconsider how they approach their annual tax return.
Why many choose to outsource Self Assessment
Hiring an accountant to handle a Self Assessment return has long been the default option for many self-employed professionals and property owners. The idea is simple: rather than spend hours trying to understand tax rules, you hand over your financial records to a trained expert who takes care of the return for you.
This approach has clear advantages. Accountants with up-to-date knowledge can help ensure that tax returns are not only accurate but also take full advantage of reliefs and allowances. They understand what qualifies as allowable expenses, how to handle capital allowances for business assets, and how to manage tax obligations across multiple income types. They are also familiar with HMRC’s expectations and filing deadlines, which reduces the risk of non-compliance.
However, convenience comes at a cost. Most accountants charge between £150 and £500 to complete a Self Assessment tax return, with fees often increasing if the return involves foreign income, property earnings, or other complex factors. While some accountants offer monthly payment plans, the expense remains a significant factor, especially for those whose income is limited or whose tax affairs are relatively simple.
Re-evaluating the need for professional support
As costs rise and digital alternatives become more accessible, more people are beginning to ask whether hiring an accountant is really necessary. For individuals with straightforward tax returns such as freelancers with one source of income or landlords with a single property the complexity might not warrant the cost of professional services.
There’s also a growing desire for financial independence. Many people now want to better understand their own tax obligations and manage their affairs without needing to rely on someone else. This shift is driven by the idea that with the right resources and tools, even those with limited tax experience can complete their returns correctly.
By handling their own Self Assessment, individuals can also gain a clearer picture of their financial situation. They learn how much they earn, where their money goes, and how much they’re paying in tax. This transparency can lead to more informed business decisions and better budgeting throughout the year.
The limitations of traditional accountants
While many accountants offer excellent service, not all deliver the same level of quality. Some high-volume firms rely on standardised processes, focusing on speed rather than personalised attention. In such cases, clients might not receive tailored tax-saving advice or a deep review of their circumstances. If a return is handled like every other, there’s a chance that tax deductions or nuances specific to the client’s situation might be overlooked.
Another issue is timing. Accountants tend to be busiest in the weeks leading up to the Self Assessment deadline in January. If you wait too long to contact one, you may find that your options are limited, or you may be charged a premium for last-minute assistance. You’ll also still be required to compile financial records, categorise expenses, and provide detailed information about income, so some of the time-consuming work remains on your shoulders regardless. These practical limitations lead many to explore options that allow them to remain in control, avoid long wait times, and potentially reduce costs.
Bookkeepers as an alternative route
A more affordable alternative to a fully qualified accountant is a professional bookkeeper. Bookkeepers often assist small business owners and sole traders with maintaining financial records, managing invoices, and tracking income and expenses. In some cases, they may also help prepare data for submission to HMRC.
While bookkeepers usually charge less than accountants, their scope of work is generally more limited. They might not be able to offer detailed tax advice or handle the actual submission of the Self Assessment. In fact, many bookkeepers do not file tax returns for clients at all. Instead, they support the process by ensuring that the underlying data is correct and well-organised.
If you already use a bookkeeper for day-to-day financial tracking, they may be able to summarise your annual figures and make preparing your tax return significantly easier. This could be a viable hybrid approach—where the bookkeeper prepares the information, and you use other tools or services to complete and submit the return.
Relying on friends and family
Some people turn to those they know—family members or friends with prior experience—to help them fill in their tax returns. This can be appealing if someone close to you has worked as a freelancer, run a business, or dealt with property income and has completed their own returns successfully in the past.
While this might save you money, it isn’t without risks. A well-meaning friend may not be up to date with the latest tax rules or might misunderstand some aspects of your financial situation. Even small errors—such as forgetting to include a source of income or misreporting expenses—can lead to penalties or the need to amend your tax return later. If you’re unsure whether the advice you’ve received is accurate, the safest option is to cross-reference it with official guidance or speak with a qualified professional.
Moreover, if someone else fills in your tax return on your behalf, you’re still legally responsible for its contents. If HMRC finds mistakes, you—not the person who helped you—will face any consequences. That’s why this approach is generally only advisable for very simple cases or where the person helping has a solid understanding of your financial details and current tax requirements.
Using HMRC’s online Self Assessment service
One of the most direct alternatives to hiring an accountant is using HMRC’s own online Self Assessment system. The government has made it possible for most UK taxpayers to complete and submit their return through its online portal. It’s free to use, and you can access it through your Government Gateway account.
This option works well for many, especially those with uncomplicated tax affairs. It allows individuals to input their income, expenses, and other tax information directly. However, it’s not available to everyone. For instance, if you’re a non-resident or part of a business partnership, you can’t use this service and must submit your return in a different format.
The main challenge with using HMRC’s online system is that it assumes a certain level of tax knowledge. While there are help sheets and guidance notes available, they can be hard to navigate if you’re unfamiliar with tax terminology. The system doesn’t actively prevent users from making mistakes or missing relevant sections, and it won’t suggest ways to reduce your tax liability. It simply processes the information you provide.
For those confident in their knowledge or dealing with a very basic return, this method may be entirely sufficient. But for others, it may raise more questions than it answers.
Digital transformation in tax filing
The increasing use of technology in personal finance has opened up new avenues for those looking to manage their Self Assessment without the help of an accountant. Tax filing software platforms are designed specifically to support individuals through the process, providing a middle ground between the complexity of doing it alone and the cost of hiring a professional.
These software solutions often begin by asking questions about your income sources, business structure, and financial year. Based on your responses, they load the appropriate tax return sections and guide you through each one step by step. Explanations are usually provided in plain language, helping you to understand what information you need to enter and where it belongs.
With many platforms offering real-time error checks and automatic calculations, the risk of submitting an incorrect return is reduced. Some even allow you to see a preview of how much tax you owe before final submission, giving you a chance to plan or adjust if needed.
As more people embrace these digital tools, especially in the run-up to Making Tax Digital for Income Tax Self Assessment, the trend is likely to accelerate. These platforms are empowering individuals to take ownership of their tax responsibilities in a way that’s both cost-effective and less intimidating.
The shift toward digital self-filing
In recent years, there has been a growing trend toward using tax return software to complete and submit Self Assessment returns. This reflects a broader movement across industries toward digitisation, where manual and paper-based systems are gradually being replaced by user-friendly digital platforms. For many sole traders, freelancers, landlords, and individuals with side income, tax return software has become a practical, affordable, and less intimidating option.
Unlike the traditional approach of handing everything to an accountant, tax software empowers individuals to take control of their tax return while reducing the complexity typically associated with the process. These platforms often feature step-by-step guidance, helpful prompts, and real-time calculations, making them ideal for people who want to save on costs without compromising on accuracy.
We’ll examine the core features of digital tax filing tools, how they differ from HMRC’s basic online system, what kind of users they’re best suited for, and the potential benefits and limitations to consider before committing to this method.
Understanding the purpose of tax return software
Tax return software is specifically designed to help individuals and businesses prepare and file their Self Assessment tax returns online. Unlike standard accounting software that focuses on general bookkeeping, invoicing, and payroll, these tools are focused entirely on the tax return process. They cater to a wide range of users, including sole traders, landlords, self-employed professionals, and those with investment or foreign income.
One of the primary goals of this type of software is to simplify the form-filling process. Rather than confronting users with a long, generic tax form, most platforms guide you through an adaptive process where only the relevant sections are displayed. This personalised flow is based on your responses to preliminary questions about your income sources, business type, and tax circumstances.
In addition to form-filling, many of these tools offer built-in calculations, error-checking functionality, and even reminders for key deadlines. These features significantly reduce the likelihood of errors, underreporting, or missing key information. This is especially valuable for people who are unsure about which figures to report and where they belong.
Step-by-step structure and intuitive design
Unlike HMRC’s platform, which can feel overwhelming and rigid, commercial tax filing software is generally designed with user experience in mind. The onboarding process typically begins with a short questionnaire to determine your circumstances. Based on your answers, the platform loads the relevant parts of the tax return and hides those that don’t apply to you.
For example, if you are a sole trader with no income from property, investments, or overseas sources, you will only be asked to complete the sections that apply to trading income and expenses. If you are a landlord with rental income but no business activity, the software will adjust accordingly.
This streamlined navigation not only saves time but also prevents users from being exposed to irrelevant tax sections that can cause confusion. It helps make the experience less daunting for first-time filers or those unfamiliar with tax terms.
Moreover, most platforms are mobile-friendly, and some offer companion apps that allow users to upload receipts, log expenses, or enter income throughout the year. This ongoing engagement can make tax time far less stressful since much of the data entry has already been done in advance.
Common features and benefits of filing software
There are several key features commonly found in tax return software that help users manage the Self Assessment process more effectively:
- Automatic calculations: The software performs complex calculations in the background based on the figures you enter. This means you don’t need to manually calculate tax owed, Class 2 and Class 4 National Insurance contributions, or the total amount due.
- Real-time tax estimates: Many platforms provide an up-to-date estimate of how much tax you’re likely to owe. This figure updates as you input new income or expenses, giving you a better idea of what to expect.
- Smart suggestions: Some software offers suggestions for allowable expenses based on your trade or profession. For instance, if you’re a delivery driver or work from home, the tool may remind you of costs you can claim, such as mileage or utility bills.
- Error checking: Before submission, the system checks your return for missing data or inconsistencies that could trigger a delay or rejection. This pre-validation process gives you confidence that your return is complete and accurate.
- Submission to HMRC: Once you’re finished, the software can submit your completed tax return directly to HMRC. Some platforms also generate and store a copy of your return for your records.
These features combined allow many users to complete their Self Assessment without external support. While not a substitute for complex tax planning, the software does enable most users to meet their legal obligations and file accurately.
Who benefits most from tax return software?
Tax filing software is ideal for people with relatively straightforward tax affairs who want to maintain control over their submission. Common user groups include:
- Sole traders with one main source of income and routine business expenses
- Landlords with a small number of rental properties
- Freelancers who invoice clients directly and have few overheads
- Employees with additional income from investments or side work
- People required to file due to child benefit claims or high-income charges
These users typically don’t need bespoke tax advice but still want to avoid mistakes and remain compliant. For them, tax return software provides the ideal blend of structure and flexibility.
However, the software is not just for those with basic needs. Many platforms support more complex entries, including foreign income, capital gains, pension contributions, and student loan repayments. Some even allow you to enter supplementary pages that mirror HMRC’s full Self Assessment form.
The ability to accommodate complexity without the associated high costs of an accountant makes these tools increasingly popular with a broader audience.
Limitations and considerations to keep in mind
While tax return software has many advantages, it’s not without its limitations. It’s important to understand where this approach might fall short, especially if your tax situation is unique or if you require tailored advice.
Most platforms are not designed to replace strategic tax planning. They can’t always advise you on the best way to reduce your tax bill through deferrals, use of reliefs across tax years, or business restructuring. If your financial affairs include trusts, inheritance considerations, or overseas pensions, for example, professional guidance may still be necessary.
There’s also the issue of user input. The software relies on the information you provide. If your records are incomplete or if you misinterpret the nature of your income, the software may not flag this as a problem. It’s not a replacement for good recordkeeping or basic knowledge of what constitutes taxable income.
Furthermore, not all platforms offer equal value. Some are free to try but charge fees upon submission. Others provide varying levels of customer support, ranging from email-only assistance to real-time chat or phone support. Users should research the specific features offered by each platform before making a choice.
Cost-effectiveness of tax return software
One of the biggest attractions of tax return software is its affordability. While accountants often charge several hundred pounds per return, most software platforms are available for a much lower fee. Some are free for basic submissions, while others operate on a one-off payment or annual subscription model.
Pricing typically depends on the complexity of your return and the features included. Entry-level packages may cover income and expenses, while more advanced plans support multiple income streams or landlord-specific needs. Even with the premium plans, the cost is often a fraction of what you would pay for full accountant services.
This cost advantage makes it a logical option for side hustlers, gig workers, and small business owners trying to keep their administrative costs down. It also gives users the freedom to explore the process at their own pace, with the added benefit of learning how their taxes work.
Making the switch from accountant to software
Transitioning from using an accountant to managing your tax return via software can seem daunting, but it doesn’t have to be. The key is preparation. Start by organising your records, including income statements, invoices, receipts, and any relevant bank transactions. The more accurate and structured your records are, the easier the software will be to use.
Next, choose a platform that fits your situation. Consider the features you need, such as support for multiple income types, expense tracking, and real-time help. You may also want to check whether the platform is recognised by HMRC, which ensures your return can be submitted securely.
Once your records are ready, inputting the data is usually straightforward. Most platforms allow you to save your progress, so you don’t have to complete the return in one sitting. You can also review your figures and make adjustments before submitting. With each passing year, you’ll become more confident in your ability to manage your own tax affairs, and the process will likely become quicker and less stressful.
The educational benefit of filing your own return
While convenience and cost savings are obvious advantages, one overlooked benefit of tax return software is the educational value it provides. By going through each section yourself, you learn about your income breakdown, deductible expenses, and how tax is calculated. This understanding can help you plan more effectively throughout the year, make better business decisions, and avoid financial surprises when tax season arrives.
Being familiar with how Self Assessment works also empowers you to spot potential errors, understand changes in tax rules, and identify opportunities to reduce your liabilities legally. Over time, this knowledge can become a real asset, especially for those managing multiple income streams or growing their businesses.
Taking control of your tax responsibilities
Filing your own Self Assessment tax return may seem intimidating at first, but with some preparation and the right approach, it is an entirely manageable task for many people. Whether you’re a self-employed individual, landlord, or someone earning extra income outside of PAYE employment, knowing what to expect and how to prepare is essential.
We focus on the practical side of managing your Self Assessment without relying on an accountant. We’ll cover how to prepare throughout the year, what records to keep, how to avoid common pitfalls, and how to choose the right method for submission based on your situation. With the right tools and understanding, you can file accurately, on time, and with confidence.
Preparing throughout the tax year
The success of your Self Assessment filing begins long before the deadline. Good recordkeeping throughout the tax year reduces stress and saves time when it’s time to file. If you’re self-employed, it’s especially important to track income and expenses on an ongoing basis rather than trying to piece everything together months after the fact.
Start by keeping a dedicated place to store all relevant documents. These include invoices, receipts, mileage logs, bank statements, dividend vouchers, rental income records, pension contribution statements, and anything else tied to income or deductible costs. This might be a physical folder, a cloud storage system, or an app designed for receipt capture and expense tracking. By making this a regular part of your financial routine, you will significantly reduce the chances of forgetting key information or misreporting figures when it’s time to complete your tax return.
Understanding your obligations
Before completing your tax return, it’s important to know what you need to report and why. The Self Assessment system is designed to capture income that is not taxed at source. This includes trading profits, rental income, dividends, interest, capital gains, overseas earnings, and more. If you’re unsure whether something needs to be declared, it’s generally safer to include it and clarify the nature of the income in the relevant section.
In addition to reporting income, Self Assessment also includes the opportunity to claim tax reliefs and deduct expenses where applicable. For self-employed individuals, this might mean claiming costs like office supplies, travel, equipment, and marketing. Landlords may claim mortgage interest, property maintenance, insurance, and letting agent fees.
Knowing what to include and what qualifies as a deductible expense can have a significant impact on your final tax bill. Take time to familiarise yourself with HMRC’s guidance or the built-in help features in tax return software if you’re unsure.
Registering for Self Assessment
If you’re filing a Self Assessment tax return for the first time, you must register with HMRC in advance. The registration deadline for self-employment is 5 October following the end of the tax year in which you began trading. Once registered, HMRC will issue a Unique Taxpayer Reference (UTR) number, which you will use when submitting your tax return.
You’ll also need to set up a Government Gateway account if you haven’t already. This is used to access HMRC’s online services, view your tax account, make payments, and check any messages or updates from HMRC. Make sure your contact details are up to date so you receive important reminders about deadlines and payment dates.
Key deadlines to keep in mind
Meeting the deadlines for Self Assessment is crucial to avoid late filing penalties and interest on overdue payments. The main dates to remember are:
- 5 October: Deadline to register for Self Assessment if you’re newly self-employed or have other untaxed income
- 31 October: Deadline for submitting paper returns (only applies if filing by post)
- 31 January: Deadline for online returns and for paying any tax owed for the previous tax year
- 31 July: Deadline for second payments on account, if applicable
If you miss a deadline, HMRC will automatically issue a penalty, even if you owe no tax. The longer you delay, the higher the penalty becomes, so filing on time is always essential.
Choosing your method of filing
Once you’re ready to complete your return, you’ll need to decide how to submit it. There are two main options available for most individuals: using HMRC’s online Self Assessment portal or using commercial tax return software.
HMRC’s system is free and suitable for straightforward returns, but it doesn’t offer much guidance beyond basic instructions. If you’re confident in what you’re doing and your tax affairs are simple, this option may be sufficient.
On the other hand, commercial tax return software offers guided navigation, smart prompts, automatic calculations, and built-in error checks. This makes it a better choice for people who want extra support, even if their tax affairs are not especially complex. It can also save time by focusing only on the sections relevant to your situation and preventing common mistakes during the process.
Entering your income and expenses
The core of the Self Assessment tax return is declaring all your income and the associated expenses or reliefs. For sole traders, this means completing the self-employment section, which includes total turnover, allowable expenses, and adjusted profit.
You’ll also need to indicate whether you’re using cash basis accounting or traditional accrual accounting. Cash basis is often simpler and suitable for smaller businesses with turnover under the threshold. It records income and expenses when they’re actually received or paid, rather than when an invoice or incurred.
If you have property income, there’s a separate section to declare rental earnings and allowable expenses. Keep in mind that income from furnished holiday lets, overseas properties, or jointly owned properties might need to be treated differently. Be sure to categorise these accurately when entering your figures.
Claiming allowances and reliefs
One of the key advantages of doing your own tax return is the ability to ensure you’re claiming all allowances and reliefs that you’re entitled to. This includes:
- Personal allowance: The standard amount of income you can earn tax-free each year
- Marriage allowance: A transferable portion of the personal allowance for married couples and civil partners
- Trading allowance: A £1,000 tax-free allowance for small trading income
- Property allowance: A £1,000 tax-free allowance for rental income
- Capital allowances: For self-employed individuals claiming depreciation on qualifying business assets
- Pension contributions: Eligible private pension payments that reduce taxable income
- Gift Aid: Donations to registered charities that qualify for tax relief
These reliefs can reduce your overall tax liability. When using software, these are often prompted during the process, making it easier not to miss them. If you’re filing manually, take time to check HMRC’s guidance on what you qualify for based on your personal and financial circumstances.
Making your payment to HMRC
Once your return is submitted, HMRC will calculate your tax bill. You’ll need to pay any tax due by 31 January, along with any first payment on account for the following tax year, if applicable. A second payment on account may be due by 31 July.
You can make payment by bank transfer, debit card, Direct Debit, or using online banking. Ensure you use the correct payment reference, which is usually your UTR followed by the letter K. HMRC’s online account section will confirm the reference and show you the exact amount due.
Late payments attract daily interest, and continued non-payment can lead to penalties and legal action. That’s why it’s important to plan in advance and set aside money throughout the year if you expect to owe tax.
Avoiding common mistakes
When filing without the support of an accountant, it’s important to be vigilant about common errors that could lead to problems later. These include:
- Forgetting to include all sources of income
- Misreporting income from self-employment or property
- Claiming non-allowable expenses
- Using incorrect figures due to poor recordkeeping
- Missing submission or payment deadlines
To avoid these pitfalls, double-check all figures, use accurate records, and cross-reference any figures that seem unclear. If using software, pay close attention to the automated warnings or alerts the system provides.
Correcting your tax return
If you realise after submission that you made a mistake, you can correct your return. HMRC allows you to amend a submitted tax return for up to 12 months after the filing deadline. You can log in to your online account, make the necessary changes, and resubmit.
If the amendment results in a lower tax bill, HMRC will usually issue a refund or adjust future payments. If it leads to more tax being owed, you will need to settle the additional amount, and interest may apply depending on how late the payment is.
Amending a return is not something to take lightly, so it’s best to be as thorough and accurate as possible when filing initially. However, it’s reassuring to know that mistakes can be corrected when identified.
When to seek professional advice
While many people are fully capable of completing their own tax return, there are situations where professional help might still be the right choice. These include:
- Having income from multiple countries
- Selling business assets or reporting large capital gains
- Running multiple businesses under different structures
- Receiving complex investment or trust income
- Needing advice on tax planning, business restructuring, or inheritance
If you find yourself unsure about any significant aspect of your tax return, it may be worth consulting a professional, even if just for a one-off review or clarification.
Conclusion
Completing a Self Assessment tax return without the help of an accountant is an increasingly viable option for many individuals across the UK. Whether you’re a sole trader, landlord, freelancer, or someone earning additional income outside of PAYE, the tools and knowledge now available make it possible to manage your own tax affairs accurately, confidently, and affordably.
We explored the reasons why people seek alternatives to accountants. High fees, varying levels of service, and a growing interest in financial self-reliance are pushing more people to take charge of their tax responsibilities. We also discussed other options like bookkeepers, assistance from friends or family, and the use of HMRC’s online services — each with their own pros and limitations.
We focused on the rise of tax return software as a practical and cost-effective alternative. These digital tools are designed to simplify the process with guided navigation, built-in calculations, and real-time error checks. They allow users to complete only the relevant sections of their return, providing a more intuitive and less stressful experience compared to traditional methods. For many with straightforward tax affairs, these platforms are bridging the gap between doing it alone and hiring a professional.
Finally, we provided a detailed guide to preparing and submitting your Self Assessment independently. From keeping records and understanding your obligations to choosing the right filing method and avoiding common errors, this final section highlighted the importance of preparation, attention to detail, and good organisation. It also clarified when professional advice might still be appropriate for complex situations.
Ultimately, the decision to complete your own tax return comes down to confidence, complexity, and cost. For those willing to take the time to understand the basics and use the right tools, the rewards include more control over your finances, greater awareness of your income and expenses, and significant savings on fees. As tax systems continue to evolve and digital tools become more sophisticated, more people than ever before are finding that they can manage their Self Assessment without the need for an accountant.