Questions to Ask Before You Appoint Your Accountant
Start with qualifications and who actually does the work
Choosing a freelance tax accountant in Milton Keynes is a bit like choosing a mechanic. Anyone can say they're good, so ask for evidence. Ask whether they hold ACCA, ICAEW, CIOT, AAT or ATT membership, and whether they carry professional indemnity insurance. Anyone in the UK can call themselves an "accountant", but a regulated one answers to a professional body.
Next, ask who will handle your file. Many self-employed people in Milton Keynes, from Bletchley tradespeople to consultants working in Central MK, are surprised when a junior prepares their return. Ask who your named contact is and how quickly they reply.
Ask about their experience with people like you
A sole trader with £30,000 of profit and a contractor with a limited company need very different advice. Ask how many self-employed clients they have in your trade and whether they've dealt with HMRC enquiries.
Useful questions:
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Do you act for clients in my sector (construction, creative, IT, delivery, therapy)?
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Have you handled Self Assessment disclosures or "check" letters?
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Can you advise on sole trader versus limited company?
Understand what the engagement letter covers
A proper engagement letter should list exactly what's included. Ask whether the fee covers bookkeeping, the Self Assessment return, the SA302 or tax year overview you need for mortgages, and answering HMRC letters. Also ask whether you'll be authorised through a 64-8 agent authorisation, which lets them deal with HMRC on your behalf.
Check they work with current thresholds
A good adviser knows the figures without looking them up. These are the main 2026/27 numbers worth testing them on:
|
Item |
2026/27 figure |
|
Personal Allowance |
£12,570 |
|
Basic rate (20%) |
up to £50,270 |
|
Higher rate (40%) |
£50,271 to £125,140 |
|
Additional rate (45%) |
over £125,140 |
|
Class 4 NIC |
6% between £12,570 and £50,270, 2% above |
|
Trading allowance |
£1,000 |
|
VAT registration threshold |
£90,000 turnover |
Rules change, so ask how they keep current. Reading HMRC guidance and the Budget announcements should be routine for them.
Ask how they'll calculate your bill
Ask for a worked example. Say you earn £40,000 profit. Income tax is £27,430 taxable at 20%, which gives £5,486. Class 4 NIC is 6% of the same £27,430, giving £1,645.80. The total is £7,131.80.
A good accountant will also explain payments on account. Because that bill exceeds £1,000, you'd normally pay £3,565.90 on 31 January and the same on 31 July, plus any balance. Many first-year clients are caught out by this, so make sure your accountant warns you early.
Discuss Making Tax Digital early
Making Tax Digital for Income Tax began on 6 April 2026 for sole traders and landlords with qualifying income above £50,000. The threshold falls to £30,000 from April 2027 and £20,000 from April 2028. Ask whether they use MTD-compatible software, who submits the quarterly updates, and what their charges are for the end-of-period statement and final declaration. If you're below the threshold now, ask when it will affect you.
Practical Matters: Fees, Deadlines and Day-to-Day Working
Get the fee structure in writing
Ask whether the fee is fixed, hourly or monthly. Fixed fees help with budgeting, but check what falls outside them. Common extras include late paperwork, HMRC investigations and tax planning advice. A basic sole trader return might be a few hundred pounds, but quotes vary with complexity, so compare like with like.
Questions worth asking:
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What does the quoted fee exclude?
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Is there an extra charge for HMRC correspondence?
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Is there a charge for the first-year set-up?
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Will fees rise when MTD quarterly reporting starts?
Agree who keeps the records
HMRC requires you to keep business records for at least five years after the 31 January submission deadline. Decide whether you'll use bookkeeping software, a spreadsheet or hand receipts to your accountant. Cloud software tends to make quarterly updates easier.
A practical case: a Newport Pagnell electrician I advised kept receipts in a shoebox for years. When we digitised them, we found £2,800 of unclaimed van and tool costs. Neat records pay for themselves.
Confirm their deadline system
Ask how they remind you and when they need your information. The key dates are below.
|
Date |
What happens |
|
5 October |
Register for Self Assessment if new |
|
31 October |
Paper return deadline |
|
31 January |
Online return and payment due |
|
31 July |
Second payment on account |
|
1 February |
£100 late filing penalty begins |
Further penalties follow after three, six and twelve months, plus interest on unpaid tax. Ask whether they will file well before the deadline rather than in the last week of January.
Ask about expenses and allowable costs
A good adviser will explain what HMRC accepts as "wholly and exclusively" for business. That means costs such as stock, insurance, software, travel to temporary workplaces and a proportion of home costs. They should also discuss simplified expenses and mileage at 45p per mile for the first 10,000 business miles, then 25p. Ask how they treat capital allowances and the Annual Investment Allowance if you buy equipment.
Check they understand your other income
Many freelancers have PAYE income too. A P60 or P45 from an employer, a rental property or dividends can all change the figures. Ask how they combine them and watch the effect on the Personal Allowance, which tapers away between £100,000 and £125,140 of income. If you earn near that range, planning matters.
Also ask about the High Income Child Benefit Charge and student loan repayments, both of which are collected through Self Assessment.
Ask what happens if HMRC writes to you
HMRC may open a check into your return. Ask whether the fee for dealing with this is included or whether you can take out fee protection insurance. Find out how they handle correspondence, how quickly they respond and whether they'd attend a meeting with you. Agents with experience here will explain the process calmly, including the right to appeal and the discovery assessment time limits.
Planning, Trust and Making the Final Decision
Ask about tax planning, not just compliance
A cheap return-filing service is not the same as planning advice. Ask whether they'll review your position before the tax year ends on 5 April. Sensible planning includes pension contributions (relief is available on up to 100% of relevant UK earnings, within the £60,000 annual allowance), timing of equipment purchases and using your family's allowances where legitimate.
Discuss when to become a limited company
Incorporation isn't always better. The company route can reduce NIC, but corporation tax, dividend tax and extra administration all apply. Ask your accountant to model both options using your own figures before you decide. Treat anyone who recommends incorporation without calculations with caution.
Raise VAT early
If your turnover is heading towards £90,000 in any rolling 12 months, you must register for VAT. Ask whether they'll monitor this and discuss the Flat Rate Scheme or cash accounting, if suitable. Voluntary registration can benefit businesses that sell to other VAT-registered customers.
Look for clear communication and fair boundaries
You should expect plain English and a prompt reply. Ask how they communicate (email, portal, phone), what response times they offer and whether they'll tell you if something is outside their expertise. A good adviser will say, "I'm not the right person for that," and that honesty is reassuring.
Check references and online reputation
Ask for client references or read independent reviews, remembering that reviews can be selective. Check the professional body's online register. You can also search the firm on Companies House or ask to see their anti-money-laundering registration, which is a legal requirement for accountancy firms.
Choosing with confidence
The best freelance tax accountant in Milton Keynes isn't necessarily the cheapest or the most local. It's the one who answers your questions clearly, shows genuine knowledge of the rules and explains their pricing without hesitation. Take two or three introductory calls, bring your last return and a rough profit figure, and compare how each one responds.
Hire someone who helps you understand your own numbers. Done well, the relationship saves you money, protects you from penalties and gives you time back to run your business.
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