When should you hire a tax advisor?
A tax advisor can be worthwhile especially for those who have no time and desire to deal with tax return. Filing tax returns can be a complicated tax matter.
You have options to address your concerns on tax matters. The most comprehensive is to hire a tax consultant or tax preparer.
The Tax Advisor is the Man for Complex Cases
As a rule of thumb, the less expertise or interest you bring in tax matters, and the more complex your tax case is, the more likely it is to go to the tax advisor.
Basically, it’s similar to remodeling or renovating: almost everyone gets to repaint the bedroom. When wallpapering in the stairwell it is already more difficult, and even experienced do-it-yourselfers should leave their fingers on the replacement of the electrical and water pipes throughout the house.
When Do You need a Tax Advisor?
If you as an employee have only one income type (wage or salary), if there is no complicated family situation (e.g. divorced with maintenance benefits, outward work, family care cases, etc.), and you do not have any deductions beyond the usual lump sums and allowances (e.g. advertising expenses, special expenses, extra-unusual charges, etc.) you do not need a tax advisor. The reason: There is hardly any scope for advice or design. Here, a commercially available control software helps, which everyone can easily use. All programs offer an assistant that guides through the program. A small tax adviser, so to speak.
If, on the other hand, you have several types of income (e.g. as a landlord, entrepreneur, or even through significant capital gains), can deduct non-daily costs (e.g. expensive training, business expenses, study, weekend home trips, etc.), then hiring a tax advisor is a good idea. As a rule, the tax advisor calculates the time it takes to prepare your tax return.
Tax Advisor Costs
You can find affordable tax advisors who work for a daily rate of 500 eur or more. However, this value varies depending on the region and the competitive situation. Daily rates of up to EUR 1,200 or more are not uncommon. It is best to get an offer from 2-3 tax advisors. This is expensive, but this can save you a few hundred euros if necessary. However, we do not want to claim that the cheapest tax advisor is always the best. Just like with a tax software, you can deduct the cost of a tax advisor from the tax – that is, indicate your tax return.
What are the Alternatives to Tax Advisors?
If you decide not to go to tax adviser, but still have to file an income tax return, you have the following alternatives:
The preparation of the tax return using commercially available tax software like the TAXMAN. Here you will receive support for small money (less than 30 EUR) both for your individual tax questions and for the correct filling in of the tax forms.
The tax return with Magpie form. This is the most cost-effective option, but it is certainly also the most expensive option. Here you get absolutely no help and you most likely forget to deduct things from the tax.