Accountancy fees are tax deductible. However, this does not mean that if you pay more for an accountant, you will pay less in tax.

Income tax is charged at 20%, therefore you would only make a 20% saving in your tax bill if you hired a more expensive accountant.

To explain this more clearly, it is best if an example is used:

If ‘Accountant A’ charges £400.00 a year and ‘Accountant B’ charges £200.00 a year, you would pay £40.00 extra a year towards tax if you hired ‘Accountant B’ however; the other £160.00 would go into your pocket. Therefore, it is always beneficial to hire an inexpensive accountant providing they can provide a quality service.

If you are still unsure or have any queries at all, please do not hesitate to phone or email us, or alternatively, you can simply use the live chat link available.

Want to learn more?

Subscribe to our newsletter to get accounting tips like this right to your inbox

About The Author

Lee Murphy

MAAT and ICPA accountant, with a passion for making accountancy and bookkeeping accessible. Other interests include cloud-based software development for web and mobile access, keeping fit, reading, and entrepreneurship.

More posts by this author