How much do you make running your tax firm in Uk?

How much do you make running your tax firm in Uk?

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Just out of interest how how much can one make running a Tax firm in UK - filing tax returns individuals/businesses, occassional bookkeeping/accounting for businesses etc. Given that on average most online tax advisors charge £100 for tax return i recon it will take 1,000 clients to hit £100k annual turnover??

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By mrme89
13th Jun 2017 22:47

£100 for a tax return?
It depends what's on the tax return?!

Employment income and expenses, quids in, 5 minutes work!
Complex CGT calc, self employment income and rental income and £100 is dire.

The answer to your first question is that it depends.

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abc
By Kim Jong Un's Hair
13th Jun 2017 23:06

I don't get out of bed for less than £10

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Replying to Kim Jong Un's Hair:
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By sosleepy
19th Jun 2017 13:08

I don't get into bed for less than £23.50

And I've never had any complaints.

Or clients.

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By Tim Vane
13th Jun 2017 23:18

An equity partner at a top 10 firm can make anything from £500K to £2.5M per year (and more). Most big firms probably earn around 1/5 of their revenues from tax, so that equates to anything from 100K to 500K per year for the tax work.

But they sure as hell ain't charging £100 a return.

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paddle steamer
By DJKL
13th Jun 2017 23:49

You will usually not get the work to do the tax returns without doing the accounts, most tax compliance work is led from owners of small business entities, most will not go to one firm for accounts and a different firm for tax compliance.

An advisory business will work differently, but again you need a source of clients, referrals from other practices re complex tax advice is possible but you need a good reputation and contacts.

Accordingly you will likely need to be a one stop shop re accounts, tax compliance, most tax advisory and have preferred other firms for the more complex advisory issues.

Everyone's offer is different, I also deal with payroll, AE, vat. business finance and some general business advice in particular re retail and property investment/development (two industries I worked within outwith practice)

Certainly smaller clients do not that often split their work to different firms, the nearest I have like that is weekly payrolls which I do outsource to another firm, as a one man band to do otherwise would likely make holidays tricky.

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By practiceperson
14th Jun 2017 07:52

If you're running a tax firm by definition you should ideally be focusing on the more complex tax cases, in which case you won't be charging £100. If you're focusing on the 'general' personal and company tax returns, ie salary and dividends and you have also completed the accounts, then £100 is profitable because it will take you 10mins to complete and file. A 'standard' ltd company or sole trader won't want to use multiple accountants to do accounts and tax.

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By Maslins
14th Jun 2017 11:20

From what I've seen, a few modestly successful qualified accountants running their own one man band practice full time can make about £100k.

Of course if you do things very efficiently and/or have a team who work profitably that figure can be higher. Similarly if you're struggling to win decent paying work, it's likely to be lower.

I highly doubt one person could cope with 1,000 tax returns. I guess the situation I'm thinking of would be more like 100 clients paying £1,000/year (ball park), and for full Ltd Co compliance/modest advisory.

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Man of Kent
By Kent accountant
14th Jun 2017 11:53

I reckon you should charge £75 and you'll clean up.

You'll have 10,000 clients before you know it and you'll spend six months a year sipping champagne at your villa in Marbella.

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By NewACA
19th Jun 2017 13:04

My turnover last year was £215k from 100 businesses and 125 individuals. Only around 10 of those individuals did not have one of the above businesses. I have the equivalent of 1 full time member of staff as well as myself. It takes me around 1 to 2 hours a year to do a simple salary dividend (and related tax saving sundry work) tax return, with checks, reviews, Pre year end tax planning. Clients choose me as I know my tax, I am aca and cta qualified I give good accounting and general business advisory stuff very well. Most of my clients earn in excess of £100k profit before tax and pay me £200 to £300 to do their simple personal tax return, but upwards of £1k to do their Ltd co stuff because They know it will be done properly, with a proper MOT service and because they get proper advise on their affairs. To them it makes sense to pay a few hundred pounds more, but have it done properly and by someone that can save them thousands in tax compared to online monkey putting numbers into software and pressing buttons for £100.

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