Tax Return Software vs Accountant: Pros & Cons

If you are a UK taxpayer and need to file a Self Assessment, you may need to decide between tax return software vs accountant. Choosing between tax return software and an accountant can make a significant difference, but which option is better?

The right choice depends on the complexity of your tax affairs and whether you need tax planning rather than simply help with filing. If your business has straightforward income and expenses, software can make filing a Self Assessment tax return relatively simple. However, if you have complex investments or need personalised tax advice, an accountant may provide considerably more value.

This article gives you all the information you need about tax software vs accountant UK, helping you make a better decision. Let’s uncover the details of tax return software vs accountant.

What Is Tax Software?

Tax return software helps you prepare and submit your tax return electronically. It can guide you through entering information such as income, expenses, allowances, and may calculate your tax bill based on the information you provide.

Moreover, features vary across software products, and not all software supports every type of income, relief, or tax return. Some software can also connect with or submit information to HM Revenue and Customs (HMRC) electronically, where supported.

What Does a Tax Accountant Do?

The main difference between tax return software vs accountant is that:

Tax software is a digital tool that guides you through filing your taxes yourself, whereas an accountant can provide professional assistance with preparing your return and may offer personalised financial advice and strategic planning for your tax return.

Depending on the services an accountant offers, they can prepare and submit your tax return and communicate with HMRC when properly authorised. Additionally, they provide tax advice within their area of expertise. HMRC considers tax advisers and accountants as examples of professional tax agents.

Although you use an agent, you generally remain legally responsible for your own tax affairs. You need to check your tax return before it is submitted and ensure the information is correct and complete.

Tax Return Software vs Accountant: What Is the Difference?

Tax return software is designed to help you prepare and submit tax information electronically. On the other hand, an accountant provides a professional service. Look at the table below for a quick comparison between tax return software vs accountant:

Pros and Cons of Using Tax Software

To better understand tax return software vs accountant, it is important to discuss the advantages and disadvantages of tax return software:

Pros of Using Tax Software

Tax return software offers several benefits, including:

• If your business has straightforward tax affairs, software may cost less than hiring an accountant because you complete the return yourself.
• You can save your progress and return to your tax return later.
• Calculations can be automated and can guide you through the information required.
• Software is increasingly important under MTD for Income Tax, helping you keep digital records, send quarterly updates, and submit the tax return.

Note: From 6 April 2026, MTD applies to sole traders and landlords with qualifying income over £50,000. From 6 April 2027, the threshold falls to over £30,000. Furthermore, from 6 April 2028, the threshold further falls to over £20,000. You must use compatible software that works with Making Tax Digital for Income Tax, which can be found through HMRC’s software guidance.

Cons of Using Tax Software

Although using tax return software provides several benefits, there are some drawbacks, such as:

• You are responsible for providing complete and accurate information and checking the return before submission.
• If you have complex tax affairs, you may need more expertise.
• It does not offer personalised tax advice when needed.

Pros and Cons of Hiring an Accountant

While understanding the tax return software vs accountant, it is also essential to discuss the pros and cons of hiring an accountant.

Pros of Hiring an Accountant

Hiring an accountant is recommended if you have complex tax matters. Other benefits of hiring are:

• An accountant can consider your individual circumstances and advise on tax affairs.
• Hiring an accountant saves you time. You simply have to provide the correct financial records and information, and they will handle the rest.
• They offer professional tax advice and can deal with HMRC for you when authorised.

Cons of Hiring an Accountant

Even though working with an accountant has several advantages, there are some cons, such as:

• Hiring an accountant costs you money. Whether the cost is worthwhile depends on the complexity of your tax affairs and the services provided.
• You remain responsible for your tax affairs even when using an agent.

Is HMRC Tax Return Software Enough for Self Assessment?

Understanding whether the tax software is enough for your self-assessment is part of tax return software vs accountant. This can help you decide which option meets your requirements.

For some taxpayers, software can be a convenient way to prepare and submit your Self Assessment return if your tax affairs are straightforward. However, software does not provide professional tax advice. So, you may need professional advice if you are unsure how a particular income source, expense or transaction should be treated.

Keep in mind that HMRC-compatible software is not necessarily HMRC-approved or recommended. HMRC provides information about software that works with its systems.

What Is the Best Tax Return Software UK?

In the UK, the best tax return software depends on your specific needs. However, the top HMRC-recognised options include TaxCalc for Self Assessment and QuickBooks and Xero for comprehensive business accounting.

What Is the Deadline for HMRC Self Assessment Tax Return?

For the 2026–27 tax year, you can submit an online Self Assessment tax return from 6 April 2027. The deadline for a paper return is 31 October 2027, and the deadline for filing and payment is 31 January 2028.

Moreover, if you are required to make payments on account, the second payment on account is generally due by 31 July following the end of the relevant tax year.

The Bottom Line

The best choice between tax return software vs accountant depends on your circumstances. This means that if you have straightforward tax affairs, software can be a convenient and cost-effective option. However, you should be comfortable maintaining accurate records and understand the information you are required to provide before submitting your return.

Additionally, an accountant may be more suitable if your tax affairs are complex or you need personalised tax advice. For sole traders and landlords within MTD for Income Tax, compatible software is required from the relevant start date. You can still authorise an accountant to assist you. In practice, you can work with an accountant and use software together rather than being alternatives.

If you want to manage your tax affairs and accounts effortlessly, hire an accountant. AccountingFirms is one of the best UK platforms that helps you find the perfect accountant for your business. You can search, compare, and then choose an accountant within just minutes.

Disclaimer: The information provided on AccountingFirms.co.uk is for informational purposes only and should not be considered as financial advice. Always consult with a professional accountant to ensure compliance with UK laws and regulations.