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As the calendar flips to the last quarter of the year, accountants across the UK brace themselves for another tax season. This is a period of heightened activity and responsibility, with some assessing their capacity and technology and others gearing up to outsource tax preparation services.
What are you up to?
Although the benefits of filing early are well known, it is a fact that most clients do not even consider it. But it is always a good idea to prepare in advance, isn’t it?
The early tax season for accountants is a time to plan and equip themselves to navigate the complex realm of tax regulations and ensure a smooth process for their clients. It is also important to assess one’s capacity and technological readiness and anticipate the workload.
Does that sound exhausting? Let us help you out. In this blog post, we will explore the key aspects accountants must consider and the steps they should take to be fully prepared for the tax season.
Tax regulations are constantly evolving, and staying up to date with the latest changes is crucial. Regularly review official publications, such as tax updates and circulars released by HMRC. Attend relevant seminars, webinars, and training sessions to enhance your knowledge and understanding of the changing tax landscape. You can also opt for outsourced tax preparation and let experienced tax experts take care of the process.
Staying updated allows accountants to provide accurate and compliant advice to clients and file efficiently, ensuring they maximise their tax benefits while staying within legal boundaries.
The early tax season is the best time to gather, organise, and review your clients’ documents. Start by reviewing all the necessary financial statements, receipts, invoices, and other relevant documents, and ensure they are complete, accurate, and in order. Organise the paperwork systematically, either physically or digitally, to facilitate easy access and retrieval when required.
Establish open and clear communication channels with your clients. Schedule meetings or send out communications to discuss their financial situation, understand any significant changes, and gather the required information. If you outsource tax returns, your extended team can help you with this process.
Apart from sending regular reminders to collect documentation, it is also important to proactively address any queries your clients may have and provide guidance on record-keeping practices. This helps streamline the tax preparation process, build trust, and maintain a strong client relationship to ensure a smoother tax season experience for both parties.
Assessing your firm’s technological readiness is crucial at this stage to ensure the busy season passes by smoothly. Embrace technology to streamline and automate various aspects of tax preparation and utilise cloud-based solutions and accounting and tax return software to enhance efficiency and accuracy. Such tools can assist in calculations, record-keeping, data entry, and generating reports.
If your firm still uses traditional methods and outdated technology, this is a good time to explore options that integrate with HMRC’s systems to facilitate seamless electronic filing and reduce manual errors. You may also have to check with your tax preparation outsourcing partner about their expertise in these software tools.
Must Read: How Automation & AI are Revolutionising Tax Season for Accountants
Accounting can be a demanding profession, especially during the tax season. Reach out to your colleagues and professional network to share knowledge, best practices, and challenges faced during the tax season. Participate in industry forums, networking events, or online communities to engage with like-minded professionals or speak to your outsourced tax preparation provider.
Collaborating with others can provide fresh perspectives, offer support, and foster a sense of camaraderie. Remember, you are not alone in this journey; collective wisdom can make the tax season more manageable.
The tax season can be intense, with multiple deadlines and an increased workload. Efficiently manage your time and prioritise tasks to ensure timely completion. Break down larger projects into smaller, manageable tasks and set realistic deadlines for each.
Delegate responsibilities, if possible, to ensure equitable distribution of work among team members. The best way to reduce the workload is by seeking external help through tax preparation outsourcing. A well-structured plan and a proactive approach to workload management will help you maintain productivity, reduce stress, and deliver high-quality results.
As an accountant’s responsibility for tax season, there may be certain mandates and best practices that you will need to follow. Let’s look at some frequently asked questions that are crucial for accountants.
According to HMRC, a tax preparer must keep clients’ records for at least five years from the end of the last financial year. For corporation tax and VAT, the records must be kept for at least six years from the end of the last financial year.
Although these periods may seem long, it is easier when they are stored digitally on the cloud. If you outsource tax preparation services, make sure you retrieve all the necessary records and documentation from your partner.
Typically, taxpayers are liable for their own tax returns. If a return is filed late or contains errors, HMRC will penalise the taxpayer as per the applicable procedure. The taxpayer is accountable for paying these penalties, although an accountant or tax preparer may file their taxes. In short, HMRC does not hold an accountant or tax preparer liable for any issues with tax returns.
However, your client (taxpayer) can sue you for errors or late filing, which may lead you to pay heftier compensations and lose business. Therefore, it is essential to be vigilant with tax preparation. If you outsource tax returns, make sure all the applications are complete, accurate, and submitted on time.
Accountants play a pivotal role in ensuring individuals fulfill their tax obligations while optimising their financial outcomes. Being prepared and proactive is the key to success during the tax season.
Stay updated, organise client documentation, communicate effectively, leverage technology, collaborate with peers, and manage your workload efficiently. If you are short of capacity and need extra hands to sail through the busy season effectively, tax preparation outsourcing can be a model solution.
By following these steps, accountants can navigate the complexities of the tax season and make the tax season a success.
If you need professional support with tax preparation, we’re just a call away. Talk to us today and hire highly experienced tax experts for your team. Call us at +44 208 146 0808 or email us at [email protected] to learn more.
Dinesh is a seasoned accounting and tax professional with more than 20 years of experience, specialising in UK personal tax. He has a proven track record of streamlining tax processes and building strong client relationships, consistently delivering accurate and compliant taxation services tailored to client needs.
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