Tax preparer job description: eleven duties, the seasonal problem and a template

Tax preparation looks like data entry until the client mentions, in passing, that they sold a flat last year. The job is mostly asking the right questions before the forms are opened.

This article sets out tax preparation duties: eleven of them in four groups, how the UK Self Assessment cycle shapes the role, the standard HMRC expects of anyone representing taxpayers, the seasonal staffing problem, and a template. It is a description of the role and contains no tax advice.

A return has stages, sign-offs and a record of who checked what. See how New Dynamics workflows let you define your own stages, forms and approvals with a completion view instead of a spreadsheet.

Eleven duties, in four groups

O*NET's Tax Preparers "prepare tax returns for individuals or small businesses", and its task list divides cleanly.

Gather

1. Review the records. Review "financial records, such as income statements and documentation of expenditures to determine forms needed to prepare tax returns".
2. Interview the client. Interview clients "to obtain additional information on taxable income and deductible expenses and allowances", the part that catches the flat sale.
3. Chase what is missing, which is most of the first fortnight of any engagement.

Compute

4. Work out the position. Compute "taxes owed or overpaid", and complete entries on forms "following tax form instructions and tax tables".
5. Apply what applies. Use "all appropriate adjustments, deductions, and credits", correctly and within the rules.
6. Handle the unusual. Consult "tax law handbooks or bulletins to determine procedures for preparation of atypical returns", and know when to pass a case to someone more senior.

Explain

7. Tell the client enough. Furnish taxpayers "with sufficient information and advice to ensure correct tax form completion".
8. Explain the rules to individuals and companies in language they can act on.
9. Answer questions and look forward, providing "future tax planning to clients" where the role allows it.

Check

10. Check other people's work. Check "data input or verify totals on forms prepared by others to detect errors in arithmetic, data entry, or procedures".
11. Price the work, calculating "form preparation fees according to return complexity" where the role includes it.

The UK shape of the job

GOV.UK describes Self Assessment as "a system HM Revenue and Customs (HMRC) uses to collect Income Tax". Tax "is usually deducted automatically from wages and pensions", and "people and businesses with other income must report it in a Self Assessment tax return". Four things follow for anyone doing the work:

1. The cycle starts after 5 April. A return is filled in "after the end of the tax year (5 April) it applies to".
2. Registration has its own deadline. Someone new to Self Assessment must tell HMRC by 5 October, and "you could be fined if you do not tell HMRC by 5 October".
3. Filing and paying late costs money. "You may have to pay interest and a penalty if you do not file and pay on time."
4. Records are the client's job, and the preparer's problem. Taxpayers "need to keep records (for example bank statements or receipts)" to fill in a return correctly.

Deadlines and thresholds change, so check current GOV.UK guidance rather than a job description written three years ago.

The standard HMRC expects

Anyone can prepare a return for somebody else in the UK, which is exactly why HMRC publishes a standard for agents. It sets out "what we expect from you if you represent or give advice to taxpayers", and gives "guidance on the minimum standards that have been set for all agents and, in particular, those that are not related to any professional body". HMRC expects "high standards that promote tax compliance from anyone who represents or gives advice to taxpayers".

One line from its updates belongs in every job description and induction: following the move from Government Gateway to GOV.UK One Login, "agents must never ask any client to share their sign in details".

Put the standard in the role, name who in the firm is responsible for it, and state what happens if a client asks for something the standard does not allow. This is general information rather than tax advice.

The seasonal problem

The work is concentrated, and firms handle it in one of three ways, each with a cost:

• Seasonal hiring. Cheap in the quiet months, expensive in errors and supervision if people arrive in December and are expected to be useful in January.
• Year-round staffing with other work, such as bookkeeping, payroll or accounts preparation, which keeps knowledge in the building but needs a genuine second workstream.
• Smoothing the client base, by pricing, deadlines and client agreements that stop every return arriving at once. The hardest and the most effective.

Say in the job description which one this role is part of, and what happens in the other eight months. Candidates can tell when a role has been designed around a peak and will leave accordingly. Our bookkeeper job description covers the most common second workstream.

What the job description must state

• The client base: individuals, sole traders, partnerships, small companies, landlords.
• The level: simple returns under review, complex returns, or reviewing others' work.
• Software, named, along with the practice management and document exchange systems.
• Review and sign-off: who checks, and what may be filed without a second pair of eyes.
• The season: hours expected at peak, and what the work is at trough.
• Standards: the HMRC standard for agents, anti-money-laundering obligations, and any professional body requirements the firm operates under.

How the role is measured

• Accuracy: errors found at review, and after filing.
• Return within budget, since a return that takes twice the estimate is a pricing or information problem worth knowing about.
• Client information obtained first time, which is the best predictor of a calm January.
• Filing ahead of the deadline, rather than on the day.
• Queries handled without escalation, for roles at the level where that is expected.

Avoid making returns filed the headline measure. It rewards speed over the question nobody asked, and the cost of a missed disposal or an overlooked source of income lands on the client and the firm.

A tax preparer job description template

Job title: Tax preparer [seasonal / permanent]

Reports to: [tax manager / practice manager]

Clients: [individuals, sole traders, landlords, small companies]

Software: [tax software, practice management, document portal]

Purpose: Prepare accurate returns for the firm's clients, gather the information needed to do that properly, and explain the outcome clearly.

Responsibilities

• Review client records and identify the information and forms required.
• Interview clients to establish income, expenses and allowances.
• Request outstanding information and follow it up to a deadline.
• Prepare returns from simple to [level], applying reliefs correctly.
• Refer atypical or complex matters to [role] rather than improvising.
• Explain the return and the amount payable to the client in plain language.
• Check returns prepared by others for arithmetic and data errors.
• Maintain records of work, advice given and client approvals.
• Work within the HMRC standard for agents and the firm's procedures.

Filing: returns are filed only after [review step], and never using a client's own sign-in details.

Season: [peak hours expectation]; other work at trough: [list].

Frequently asked questions

What are tax preparation duties?

Reviewing a client's financial records to identify the forms needed, interviewing them about income, expenses and allowances, computing the tax owed or overpaid, applying the adjustments, deductions and reliefs that apply, explaining the outcome, checking work prepared by others, researching unusual cases, and keeping accurate records of it all.

What does a tax preparer do?

Prepares tax returns for individuals or small businesses from the client's records and answers, applying the rules correctly and explaining the result. Depending on the role, they may also review colleagues' returns, answer client questions during the year and contribute to planning conversations.

Do you need a qualification to prepare tax returns in the UK?

Anyone can prepare a return for someone else, which is why HMRC publishes a standard for agents setting out the minimum standards expected of anyone who represents or advises taxpayers, particularly those not connected to a professional body. Firms may still require qualifications, and professional bodies impose their own rules on members.

What should a tax preparer job description include?

The client base, the complexity of returns handled, the named software, who reviews and signs off work, the hours expected at peak and what the work is at trough, and the standards the role operates under including the HMRC standard for agents and anti-money-laundering obligations.

How should a tax preparer be measured?

On accuracy at review and after filing, returns completed within the time estimated, how often client information is obtained first time, filing ahead of deadlines rather than on the day, and queries handled at the expected level. Counting returns filed rewards speed over the question that should have been asked.

Can a tax preparer use a client's HMRC login?

No. HMRC's standard for agents is explicit that agents must never ask a client to share their sign-in details. Agents use their own agent services access, and the job description and induction should say so plainly.

Your next step: design the year, not the January

1. Decide whether the role is seasonal, year-round or part of a smoothed client base.
2. Say what the work is in the quiet months.
3. Name the review step, and state that returns are never filed using a client's own login.
4. Measure accuracy and first-time information, not volume.

For hiring the peak team without lowering the bar, read and download our recruitment and selection guide. The guide is free to read, and the PDF uses our short download form.

Want return stages, reviews and sign-offs tracked in one place instead of a spreadsheet? Book a New Dynamics demo and bring your current workflow. You can also email contact@new-dynamics.com.