Should Accountants Entertain Last-Minute Tax Return Filing Requests?

Filing taxes can feel overwhelming, and it is very common that things are left until the eleventh hour. You might be dealing with several procrastinators waiting until the last minute to file their Self Assessment tax returns.

You must even be able to name those clients pushing up against an impending busy season deadline. In fact, 20,947 taxpayers completed their return at the very last minute! 

Despite being a crucial obligation, the most common reason why people procrastinate is that they do not want to think about taxes. Most accountants find that their clients leave it too late, and in a rush to file on time, they end up making simple mistakes.

People tend to be creatures of habit, and some clients will likely remain so without intervention. 

SHOULD YOU ENTERTAIN LAST-MINUTE TAX RETURN FILING REQUESTS? 

The straightforward answer is no. Unless there is an unavoidable situation, it is best not to delay Self Assessment tax return filing. As accountants, you must ensure that you have all the necessary information in advance as clients might delay in providing the same. Many of your clients will always rush in at the last minute, and it is best to acknowledge the perpetually late and encourage them to submit their information earlier. 

For those clients wondering if there are any benefits to completing their tax returns on time, here are some thoughts:

• The sooner you file your Self Assessment tax returns, the sooner the refund will get processed and the sooner your clients will get their tax bills. 
• When your clients file early, they will get notified by HMRC, and the refund process will begin immediately, and they will get the money in just a few weeks. The extra cash could help them plan expenses efficiently.
• Your clients who might be trying to forecast their cash needs might benefit from knowing exactly how much their next tax bill will be and can thus plan effectively.
• For earnings taxed under PAYE, your clients can pay their Self Assessment tax monthly via PAYE.
• No more threat of getting fined. Filing In time is the only way to guarantee that one won’t have to pay fines. Even when there is no tax bill, your clients can face penalties. Given how a single day’s late fine is £100 and £10 per day up to a maximum of £900 (90 days) for every day it is late, early filing helps avoid these penalties and address issues in advance. 
• There will be no risk of scams! Fraudsters usually target late filers with false messages claiming to be HMRC, threatening court action, or saying someone is due a rebate.
• Your clients will get extra time to budget for the tax they owe. Filing Self Assessment calls for a lot of paperwork, and even for those of your clients who download and maintain monthly records, last-minute mistakes and omissions are possible. Filing early prevents last-minute stress.
• Given the vast number of taxpayers filing their returns, early filing can help your clients get through HMRC call centers if they need help.

Moreover, filing tax returns early doesn’t mean you must pay the liability immediately. And you don’t want us to remind you of the heaps of paperwork that will pile up for you at the last hour. Thus, it is best to communicate deadlines of when things need to be submitted and give them the nudge to file early.

WRAPPING UP

We recommend that you don’t entertain last-minute Self Assessment tax return filing requests and that you start reminding your clients to file their Self Assessments on time. The sooner you get all the necessary data, the faster you can file their returns. 

If you are concerned and stressed about the increased workload on your team, there is no reason to hit the panic button. QXAS can quickly and efficiently prep your client’s submission cutting out long, frantic hours and stress. Not only will you save big but also gain resources you can absolutely trust. 

QXAS TAX PREPARATION SERVICES IS YOUR LEADING LIGHT FORWARD 

QXAS’ Self Assessment tax returns outsourcing services ensure that your team gets the best support. With our tax prep services, you will be able to find the status of each tax return, ask for reports and identify those tardy clients who might need that extra nudge. What’s more? Our FTE managers will be checking all tax returns twice before we would submit them for your review.

THE QXAS ADVANTAGE

• Data security measures of the highest standards
• Highly experienced and certified tax prepares
• Customised pricing & Multiple engagement models
• India’s First GDPR & ISO 27701 compliant Tax outsourcing services provider
• Fully compliant: ISO 27001 for information security & ISO 9001 for quality
• 100% score in all BSI audits