Figure out who is best for you

The sight of this year's tax return landing on your doormat may be enough to send you scuttling to the nearest accountant.

There are more than 10,000 accountants in the UK, and choosing the right one is never going to be straightforward. Choosing the wrong one could cost you thousands of pounds in unnecessary tax and even fines. Even if you already have an accountant, now is a good time to assess whether you are getting the services you need for the right price.

First, ask yourself why you want an accountant. As accounting and tax software gets better, this is a question even the self-employed can fairly ask themselves.

Possible answers might be:

• you want someone to take the hassle off you;

• you need someone to nag you into doing your tax return;

• your affairs are complicated so you need good advice;

• you want to minimise your tax bill and need creativity;

• you haven't a clue what you're doing and need all the help you can get.

Once you have identified your needs you can work out which accountant can help. There's no point in choosing an accountant who is slow if you are looking for one to nag you into action. If you haven't a clue and want to know, you've got to choose one with good communication skills.

If you're looking to get the hassle of filling in the form off your back and not much more, then price is the key issue. But price won't be the only issue if you want a lot of advice or some planning to minimise tax bills. Clarity and competence will then be the key factors.

From my many years of experience, price is rarely an issue between an accountant and a client if the client receives the service they wanted. But it is always an issue if they didn't.

The first step in finding the right accountant is to ask friends, family, colleagues, or even competitors for personal recommendations. Every accountant prefers to get their work this way because it tends to produce the type of work they want. One place to avoid is the Yellow Pages.

You should make sure the accountant you choose is qualified and registered with your national Institute of Chartered Accountants or the Chartered Association of Certified Accountants.

This does not guarantee that they are better than an unqualified accountant (although it should help), but they will be regulated and insured in case things go wrong.

Next, visit the accountant. Don't be taken in by the premises or the glossy brochures. There used to be a joke, among the people who regulate accountants, that the glossier the brochures in reception, the worse the firm.

Make sure you like and understand the person you meet. Also make sure that they aren't just a 'front person' put up to impress you. Ask who will do the work and if it's not the person in front of you, ask to meet the person you will deal with. If you don't like the first accountant you meet, try some more.

Before you pick someone, make sure you know exactly how things will work. Ask them to make clear:

• what information they want from you;

• how long they will take to deal with it;

• when they want it;

• what information they will send you about your tax;

• how often they will send it;

• whether they will deal with all letters from the Inland Revenue for you;

• how they will let you know about important events in the tax year and your personal affairs.

Finally, and most important, make sure you know:

• how and when the accountant intends to charge;

• their estimate of costs;

• whether they are offering a fixed-price deal;

• if not, what their estimate covers and what it doesn't;

• how extras are billed;

• what you can do to cut the bill.

The last point is important. For example, a lot of accountants will have little work on over the early summer months. Ask if you can have a discount for getting the information to the accountant then. Also ask for an early payment discount, or offer a regular standing order for a fixed-price deal.

Last, see if there are things you can do to cut the price. This might just be adding things up before you send information in, but it all helps.

But how much do you pay?

If you're self-employed, not VAT registered,
keep goods and records, and only have bank
interest and pension contributions on your tax
return, expect to pay ?400 plus VAT in London for
accounts and tax; outside London you may pay
less. Remember:

• Bad, untidy, books add 50 per cent to the fee.

• You will pay at least ?100 extra if you do any
share dealing. If you deal a lot this will go up.

• You will pay more if you don't give your
accountant what they ask for.