Are the tax advisor costs higher for self-employed individuals than for private individuals?
July 8, 2023 | 65,00 EUR | answered by Siegfried Eckstein
Dear tax advisor,
My name is Marie Endres and I am a self-employed entrepreneur. For some time now, I have been looking into my tax advisor costs and wondering if they are actually higher for self-employed individuals compared to private individuals.
My current situation is as follows: as a self-employed individual, I run my own business and therefore rely on professional tax advice. Over the past few years, I have noticed that my tax advisor costs have increased significantly, and I am wondering if this is generally the case for self-employed individuals or if there are individual reasons for this.
The current situation is not optimal for me as a self-employed individual, as I have realized that tax advisor costs make up a significant portion of my operating expenses. This results in my profit margin being significantly reduced, and I am thinking about how I can cut costs.
My concerns are that as a self-employed individual, I may bear higher tax advisor costs than private individuals who only have to submit their personal income tax return. This additional financial burden is weighing on my business, and I would like to know if there are ways to reduce these costs.
Therefore, my question to you as a tax advisor is: Are tax advisor costs actually higher for self-employed individuals compared to private individuals, and are there ways to reduce these costs? I am looking for solutions to make my tax advice more efficient and cost-effective, and I hope for your professional assessment.
Thank you in advance for your support.
Sincerely,
Marie Endres
Dear Mrs. Endres,
Thank you for your inquiry regarding the costs of tax advisors for self-employed individuals compared to private individuals. As a tax advisor with many years of experience in advising self-employed individuals, I can gladly assist you and provide some information on this topic.
It is generally true that the costs of tax advisors for self-employed individuals are usually higher than for private individuals who only need to submit their personal income tax return. This is mainly because self-employed individuals are typically faced with more complex tax issues. They not only need to accurately record their business income and expenses but also need to consider specific tax regulations that apply to businesses.
Typical services provided by a tax advisor for self-employed individuals include the preparation of business tax returns (e.g. sales tax, trade tax), advice on choosing the optimal legal form, reviewing contracts and agreements for tax implications, and support during tax audits by the tax office. All of these services require a high level of expertise and experience, which is reflected in the costs of the tax advisor.
However, there are various ways for self-employed individuals to reduce tax advisor costs. One option is to make collaboration with your tax advisor more efficient by preparing and providing your documents in an organized manner. The less time the tax advisor needs to spend on handling your tax matters, the lower the costs usually are.
Furthermore, you can consider whether it is worthwhile to undertake certain tax tasks yourself to save costs. However, this requires that you have sufficient expertise in tax matters and are familiar with the tax regulations for self-employed individuals.
Another way to save costs is to compare different tax advisors and potentially switch to a more affordable provider. It is important, however, to not only focus on the price but also on the quality of advice and the experience of the tax advisor.
In conclusion, the costs of tax advisors for self-employed individuals are usually higher than for private individuals because self-employed individuals are faced with more complex tax issues. By efficiently collaborating with your tax advisor, undertaking certain tax tasks yourself, and comparing different providers, you can save costs and make your tax advisory more efficient.
I hope that this information has been helpful to you and I am available for any further questions.
Kind regards,
Siegfried Eckstein
