Short answer
How to find a qualified person to help with a personal tax return in the UK, US, Canada or Australia, what to bring, and the warning signs of a bad preparer.
Many people file their own tax return without trouble. Others reach a point where it makes sense to pay for help: a new side business, rental income, selling shares or property, moving countries, or simply a return that went wrong last year. This guide covers who can help in the UK, US, Canada and Australia, how to check them, what to bring, and the warning signs to watch for. It is general information, not tax advice. Deadlines and rules change, so always check the official tax authority website for the current year.
When paying for help is worth considering
- You started self-employment, freelancing or a side business.
- You let out property, including a room in your home.
- You sold investments, crypto assets, a second home or a business.
- You have income from abroad, or moved country during the tax year.
- You received a letter from the tax authority you do not understand.
- You have missed a deadline or think a past return was wrong.
If your situation is simple, the tax authority's own online service and guidance may be all you need.
United Kingdom: Self Assessment
In the UK, people who are self-employed, have untaxed income such as rent, or meet certain other conditions file a Self Assessment return with HMRC. You can do it yourself online through your HMRC account, use commercial software, or hire an accountant or tax adviser.
Anyone in the UK can call themselves an accountant or tax adviser, so check qualifications. For personal tax, look for membership of the Chartered Institute of Taxation (CIOT), the Association of Taxation Technicians (ATT), ICAEW, ICAS, ACCA or AAT. Ask who supervises them for anti-money laundering purposes.
To act for you, an adviser will usually need you to authorise them as your agent with HMRC. If your income is low and you cannot afford an adviser, charities such as TaxAid and Tax Help for Older People offer free help to people who qualify.
Be careful with "tax refund" companies that contact you, especially about work expenses such as uniforms or travel. Some take a large share of any refund, or ask you to sign forms that send your refund to them. You can claim many of these refunds from HMRC directly for free.
United States: tax preparers, CPAs and enrolled agents
US tax preparers range widely in training. Anyone who prepares federal returns for pay must have a Preparer Tax Identification Number (PTIN) from the IRS and must include it on the return they prepare. A PTIN shows the person is registered, not that they are qualified. Credentials that do mean training and oversight include:
- Certified Public Accountants (CPAs), licensed by state boards of accountancy.
- Enrolled agents (EAs), licensed by the IRS and specialising in tax. They can represent you before the IRS on any tax matter.
- Tax attorneys, licensed by a state bar, usually for complex or contentious matters.
The IRS publishes a searchable directory of federal tax return preparers with credentials and select qualifications. Some states have their own requirements for paid preparers, so check your state too. Free help is available for eligible taxpayers through IRS-sponsored volunteer programmes, including ones for older taxpayers.
Canada
In most of Canada there is no general licence for tax preparers, so anyone can offer the service. Look for a Chartered Professional Accountant (CPA), and check membership with the provincial CPA body. If you need someone to deal with the Canada Revenue Agency for you, you will need to authorise them as your representative. Free tax clinics run by volunteers through a CRA programme help people with modest incomes and simple returns.
Australia: registered tax agents
In Australia, only registered tax agents can charge a fee to prepare or lodge your tax return or give you tax advice. Check any agent on the Tax Practitioners Board (TPB) register before you hire them. Using a registered agent can sometimes give you more time to lodge than lodging yourself, but ask your agent how this applies to you rather than assuming it. The ATO also supports a free volunteer Tax Help programme for people on lower incomes.
What to bring
Whoever helps you, the more organised your records, the faster and cheaper the work. A typical list:
- Your tax reference numbers and identification (such as your Unique Taxpayer Reference in the UK, Social Security number or ITIN in the US, social insurance number in Canada, or tax file number in Australia).
- Last year's return and any letters from the tax authority.
- Year-end statements from employers and pension payers.
- Self-employment income and expense records, ideally summarised by category.
- Rental income and costs, mortgage interest statements and letting agent statements.
- Bank and investment interest, dividend statements and records of any sales of shares, crypto or property, with what you originally paid.
- Pension and charitable contributions.
- Details of any foreign income or foreign tax paid.
- Bank details for any refund to be paid into your own account.
Red flags
- Fees based on the size of your refund. It gives the preparer an incentive to inflate it. The IRS specifically warns against this.
- A preparer who will not sign the return or include their PTIN, sometimes called a "ghost preparer". In the US, paid preparers are required to sign.
- Refunds paid into the preparer's account rather than yours.
- Promises of a bigger refund than anyone else can get, before they have seen your paperwork.
- Asking you to sign a blank or incomplete return.
- Not asking for records or for evidence of the expenses they are claiming.
- Not giving you a copy of the return as filed.
- No verifiable registration where registration is required, such as the TPB register in Australia.
Remember that you are responsible for what is on your return, even if someone else prepared it. Read it before it is filed, and ask about anything you do not recognise.
Questions to ask
- What qualifications or registration do you hold, and where can I check them?
- Have you prepared returns with situations like mine?
- How is your fee calculated, and what would increase it?
- Will you be available after filing if the tax authority has questions?
- Will you represent me if my return is reviewed or audited?
- How will you send me documents and keep my data secure?
If you run a business, see hiring a small business accountant, and for fee structures, how accountants charge.