Why your tax return is probably costing you more than it should

Why your tax return is probably costing you more than it should

5.6 million UK taxpayers overpaid HMRC last year. The average? £625 each. Here’s how to find out if you’re one of them - and what a good accountant can do that software never will.

Let’s start with something that should make you genuinely angry. According to HMRC’s own data (as reported by the Financial Times, among others)  nearly six million people across the UK handed over more money than they legally owed last year. Not because they were dishonest. Not because they didn’t care. But because the tax system is complicated and allowances are easy to miss.

If you’re self-employed, a freelancer, a landlord, a sole trader or a company director, there’s a very real chance you’re in that group. And there’s an equally real chance you have absolutely no idea.

The problem isn’t that you’re bad at tax

Here’s what most self-employed people get wrong about their tax return: they assume that if they’ve answered the questions to the best of their knowledge, they’ve done it right. The reality is more frustrating. “Best” and “optimal” are completely different things - and the gap between them is often where hundreds of pounds quietly disappear.

The UK tax system contains hundreds of allowances, reliefs, and deductible expenses that are perfectly legal, genuinely intended to help people like you, and routinely unclaimed. Not because people are lazy, but because knowing they exist in the first place requires either years of experience or a very good accountant.

“The question isn’t whether you filed your return. It’s whether you claimed everything you were entitled to.”

Think about the self-employed builder who didn’t realise they could claim the cost of tools, workwear, and vehicle mileage to and from sites. The electrician who never claimed for replacing specialist equipment. The IT contractor who forgot about professional subscriptions and home office costs. The landlord who didn’t know they could claim for replacing furniture, not just repairs. The sole trader who never heard of the Annual Investment Allowance. These aren’t exotic tax avoidance schemes - they’re standard allowances that go unclaimed every single year.

What a good accountant actually does

There’s a persistent myth that accountants are for big businesses. That if you’re self-employed and earning a modest income, they’re an unnecessary expense, something you’ll worry about "when you’re bigger.”

If the average overpayment is £625, and a good local accountant costs a fraction of that, why does this myth persist?

A qualified accountant does more than fill in a form. They ask the right questions. They know your industry - whether you’re a builder, a freelancer, a food truck owner or a buy-to-let landlord - and they know where people in your situation tend to leave money behind. That institutional knowledge is the thing that software can’t replicate.

What you can expect a good accountant to cover

•       A full review of every allowable expense relevant to your work - not just the obvious ones

•       Advice on your specific tax position - sole trader vs limited company, for example, or how dividends interact with your salary

•       Proactive planning throughout the year - not just a mad scramble before the January 31stdeadline

•       Someone on your side if HMRC ever comes asking questions

•      Peace of mind that your return is accurate, compliant, and optimised - not just submitted

Self-assessment versus the real thing

The government’s push towards digital self-assessment was, in theory, a way to make things simpler. And for a PAYE employee with one income source and no complications, it largely works. But for anyone whose income is more complex, such as freelancers juggling multiple clients, landlords navigating Section 24, contractors working under IR35, directors taking salary and dividends - the self-assessment system was simply not designed with your specific situation in mind.

DIY self-assessment:

•       Stressful, time-consuming January sprint

•       Generic questions that miss your specifics

•       Easy to overlook industry-specific reliefs

•       No safety net if you get something wrong

•      No planning ahead, just filing backward

With a good accountant:

•       Handled on your behalf, throughout the year

•       Tailored to your industry and situation

•       Reliefs and allowances proactively identified

•       Professional accountability and HMRC liaison

•      Forward-looking tax planning, not just compliance

Finding the right accountant - that’s the hard part

Here’s the thing: most self-employed people who decide to get an accountant don’t know where to start. And with thousands of firms across the UK, ranging from high-street generalists to niche specialists in their exact trade, finding the right match isn’t as simple as Googling “accountant near me.”

That’s precisely the problem TaxReady was built to solve. Tell us about your situation - the kind of work you do, roughly what you earn - and we’ll give you a free estimate of your likely tax position and connect you with the best-matched local accountant from highly rated UK firms. Matched on your income type, your location, and real Google review data. Not a sponsored listing. Not the firm that paid the most to appear. The right firm for you.

Worth knowing: TaxReady’s matching takes less than 30 seconds. You don’t need your P60, your accounts, or any documents to hand. Just tell us what you do and where you are, and we’ll do the rest. No sign-up required. No sensitive data. Completely free.

A note on what we mean by “estimate”

The number TaxReady gives you isn’t a formal tax calculation - it’s a free, AI-powered estimate designed to give you a realistic sense of your likely tax position and, critically, whether there might be meaningful savings to explore. Think of it as the starting point of a conversation, not the end of one. The end of the conversation is a qualified accountant who knows your full situation.

What we’ve found is that for most self-employed people, that starting point is genuinely eye-opening. When you see the gap between what you currently expect to pay and what you might reasonably pay with the right advice, the decision to speak to an accountant tends to be clear.

The bottom line

The UK tax system isn’t going to get simpler. Making Tax Digital is currently being rolled out. The rules around property income, contractor status, and dividend taxation keep shifting. What works this year might not be optimal next year. The self-employed people who consistently manage their tax well aren’t the ones who are better at reading HMRC guidance, they’re the ones who have someone good in their corner.

If you’ve been handling your own return and quietly hoping for the best, it’s worth taking two minutes to find out where you actually stand. The estimate is free. The match is instant. And the call with the right accountant could easily be worth several hundred pounds - maybe more.

Check your tax free at taxready.uk

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