Do I Need Personal Tax Advice? A Guide to Knowing When to Call an Expert
For most people, the UK tax system is something that happens to them. If you're an employee, tax is deducted automatically via PAYE, you get a P60 once a year, and you rarely think about it. But as your life becomes more complex, you start a side-hustle, become a landlord, sell some investments, or earn a higher salary – the world of tax can become a minefield.
It's easy to go from "simple" to "complex" without realising it. This leads to a nagging anxiety: "Am I paying too much tax? Or worse, am I paying too little and risking a big bill from HMRC?"
At Plouta, our mission is to empower you with the clarity to take control of your finances. This guide will explore the difference between the professionals who can help, the benefits of seeking advice, and the 8 key "red flags" that signal it's time to stop guessing and hire a tax professional.
What You’ll Learn in This Guide:
The Key Players: The difference between a Financial Adviser, an Accountant, and a Tax Adviser.
The 8 "Red Flags": Key life events and income levels that mean you should get advice.
The Benefits: How an adviser can save you money, time, and stress.
The Cost of Advice: What to expect (Flat Fee vs. Hourly).
Who's Who? Financial Adviser vs. Accountant vs. Tax Adviser
First, let's clear up the confusion. These roles are different, and you need the right person for the job.
Financial Adviser (My Role): I'm your future-planner. My job is to look at your entire financial life and help you build a holistic plan to achieve your goals (e.g., "How can I retire early?"). I specialise in pensions, investments (ISAs), and protection, and I ensure your plan is tax-efficient.
Accountant: An accountant is your compliance expert. They are primarily focused on recording and reporting your past and present financial data accurately. They are essential for running a limited company (payroll, VAT, annual accounts) and for filing your Self Assessment tax return.
Chartered Tax Adviser (CTA): This is the tax specialist. A CTA is the person you call for complex, high-stakes tax problems. They are the experts in specific areas like Inheritance Tax, Capital Gains Tax on a business sale, or complex residency issues.
For this article, when we say "tax professional," we're generally referring to an Accountant for annual compliance and a Tax Adviser for complex planning.
8 Red Flags: It's Time to Get Tax Advice
If you are a straightforward PAYE employee with no other income, you probably don't need a tax adviser. But if any of the following apply to you, seeking professional advice is a very smart move.
1. You've Become Self-Employed or a Landlord
Once you have income that isn't taxed at source, you must file a Self Assessment tax return. An accountant can not only file this for you but, more importantly, ensure you are claiming every single allowable expense to reduce your profit and, therefore, your tax bill.
2. You've Sold an Asset and Made a Profit
Did you sell a buy-to-let property, a large number of shares outside an ISA, or some cryptocurrency? You may be liable for Capital Gains Tax (CGT). The rules on how to calculate your "cost basis" and what reliefs apply are complex. An adviser can calculate your CGT liability for you and advise on how to manage the bill.
3. Your Income Has Tipped Over £60,000 (and you have children)
Welcome to the "High Income Child Benefit Charge." If you or your partner earn over £60,000, you have to start paying back your Child Benefit via a tax charge. An adviser can show you how making a pension contribution can reduce your "adjusted net income," potentially allowing you to keep your Child Benefit and save for retirement in a highly tax-efficient way.
4. Your Income Has Tipped Over £100,000
This is the "60% Tax Trap." For every £2 you earn over £100,000, your £12,570 tax-free Personal Allowance is reduced by £1. This creates a brutal effective tax rate of 60% on your income between £100,000 and £125,140. A tax adviser can show you strategies, like pension contributions, to reclaim this allowance.
5. You're a Limited Company Director
This is a must. An accountant is essential for your company's annual accounts and Corporation Tax. A tax adviser can work with your financial adviser on the most tax-efficient way to take your profits – is it a small salary? Dividends? Or large employer pension contributions? Getting this mix wrong can cost you thousands.
6. You're Worried About Inheritance Tax (IHT)
If your total estate (property, investments, savings) is approaching or is over the tax-free thresholds, you need specialist advice. An IHT adviser can help you with strategies like gifting, trusts, and using specific investments to ensure your legacy goes to your family, not the taxman.
7. You Have International or Cross-Border Finances
Do you have a non-UK passport, work abroad, own a property overseas, or have "non-dom" status? UK tax residency rules are incredibly complex. This is not a DIY job. You need a specialist adviser to ensure you are compliant in all countries and not paying tax unnecessarily.
8. You've Received a "Nudge" Letter from HMRC
HMRC is increasingly using data to send automated, targeted letters about areas like rental income or crypto gains. If you get one, your first call should be to an accountant. They can help you understand what's being asked, calculate any tax owed, and communicate with HMRC on your behalf, which is far less stressful than handling an enquiry alone.
The Benefits: Is Paying for Tax Advice Worth It?
People often hesitate because of the cost, but good advice is an investment, not an expense.
Peace of Mind: The single biggest benefit. Knowing your tax affairs are 100% correct and compliant provides immense relief from financial anxiety.
Saving You Money: A good adviser will almost always save you more than their fee by identifying tax reliefs and allowances you didn't know existed.
Saving You Time: Filing a complex tax return can take many frustrating hours. An accountant does it for you, freeing you to focus on your business or family.
Strategic Planning: They can help you structure your finances to be more efficient in the future, not just report on the past.
How Much Does Tax Advice Cost? (2025/26)
Fees will vary based on the complexity of your situation and the professional's experience.
Simple Self Assessment Return: A high street accountant might charge a fixed fee of £150 - £400.
More Complex Returns: For a landlord with multiple properties or a director, expect £400 - £800+.
One-Off Tax Planning Advice: For a specific, complex issue like IHT or CGT planning, a specialist tax adviser may charge a flat fee of £750 - £3,000+ or an hourly rate of £150 - £400+ per hour.
Conclusion: When in Doubt, Don't Guess
For a simple PAYE employee, your tax is handled. But as soon as your financial life expands – through property, self-employment, investments, or a higher salary – the potential for costly mistakes grows.
The UK tax code is one of the most complex in the world. You are not expected to be an expert in it. The smart move is to recognise when you've reached the limit of your own knowledge and call in a professional. An adviser's fee isn't a cost; it's a price you pay for accuracy, efficiency, and most importantly, peace of mind.
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General Questions About Hiring a Tax Adviser
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While there is overlap, an accountant typically focuses on preparing financial accounts, bookkeeping, and standard compliance (like filing returns). A tax adviser (often a Chartered Tax Adviser or CTA) specialises in tax law and complex planning. You might hire an accountant for your annual return but a tax adviser for a one-off complex issue like selling a business or inheritance planning.
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Fees vary by complexity and location:
Self-Assessment Return: £250 – £600 (fixed fee).
Hourly Rate: £150 – £400+ per hour for specialist advice.
Complex Advisory: Projects like IHT planning or business sales are often quoted as a fixed project fee (e.g., £1,500+) or a percentage of tax saved.
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You should consider professional advice if:
You have multiple sources of income (e.g., foreign income, multiple properties, crypto).
You are selling a major asset (business, second home).
You are planning your estate/inheritance.
You are facing an HMRC investigation.
You are becoming self-employed or starting a limited company for the first time.
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Fees for preparing business accounts and tax returns are generally tax-deductible for businesses. However, fees for personal tax advice (like personal Inheritance Tax planning) are usually not tax-deductible.
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If you are selling a property that hasn't been your main home for the entire time you've owned it, you likely need advice. You must report and pay CGT on residential property within 60 days of completion. An adviser can help you claim reliefs like Private Residence Relief (PRR) or Lettings Relief to reduce the bill.
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Common questions an adviser will answer include:
Gifting: How much can I gift tax-free? (e.g., £3,000 annual exemption, small gifts of £250).
7-Year Rule: If I gift assets now, will they be tax-free if I survive 7 years?
Business Relief: Do my business assets qualify for 100% relief?
Trusts: Should I set up a trust to protect assets for my grandchildren?
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Contact an adviser immediately. They can help you file quickly to minimise penalties. If you have a "reasonable excuse" (e.g., serious illness, bereavement), they can help you appeal the £100 late filing penalty.
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This is a major upcoming change.
From April 2026: Sole traders and landlords with income over £50,000 must keep digital records and send quarterly updates.
From April 2027: The threshold drops to £30,000.
FAQ: "Does this replace my annual tax return?" Yes, you will send quarterly updates and a final declaration instead of one SA100 return.
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Contractors often ask this. If your end client is a medium or large business, they decide your status. If they are a small business, you decide. An adviser can review your contract for "badges of trade" like right of substitution, control, and mutuality of obligation to see if you fall inside or outside IR35.
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Many businesses miss this. If you are developing new products, processes, or software (even if the project failed), you might be eligible.
SME Scheme: You can claim back up to 27p for every £1 spent on qualifying R&D.
FAQ: "Does it have to be a scientific breakthrough?" No, it just needs to be an advance in technology or science that wasn't easily deducible by a professional in that field.
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HMRC does not view crypto as gambling (which is tax-free).
Capital Gains Tax: You pay this on profits when you sell, swap, or spend crypto.
Income Tax: You pay this if you receive crypto from mining, staking rewards, or airdrops (in many cases).
Common Q: "Is swapping Bitcoin for Ethereum a taxable event?" Yes. You are disposing of one asset to buy another, so CGT applies at the point of the swap.
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From April 2025, the "non-dom" regime is being abolished and replaced by a residence-based system.
New Arrivals: No tax on foreign income/gains (FIG) for the first 4 years of UK residence.
After 4 Years: You will pay UK tax on worldwide income and gains.
IHT: Inheritance tax will also move to a residence-based system (likely after 10 years of residence).
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It is rarely random. Triggers include:
Consistently filing late.
Figures that vary wildly from industry averages.
Tip-offs from the public.
Data matching (e.g., HMRC seeing income from Airbnb or crypto exchanges that isn't on your return).
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Normal errors: 4 years.
Careless errors: 6 years.
Deliberate evasion: 20 years.
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Disclaimer: This guide provides general information about tax advice in the UK and is for informational purposes only. It does not constitute tax or financial advice. Tax laws are complex and subject to change. Always seek professional, regulated advice from a qualified accountant, tax adviser, or financial adviser who can assess your personal circumstances.