When is the Right Time to Start Reminding Clients to Send Their Tax Information?

The UK tax season begins in April and extends to January. For individuals filing Self Assessment tax returns, the October and January deadlines (for paper tax returns and online returns, respectively) are crucial.

With digitalisation becoming the way of life, more than 90% of taxpayers file their personal tax returns online. December and January are, therefore, the busiest months of the year for accountants.

Although the tax season lasts for several months, the most number of Self Assessment returns are filed close to the 31 January deadline. The statistics released by the UK government earlier this year reveal that over 630,000 customers filed their returns on the deadline day.

Evidently, accountants cannot escape the busy season rush no matter what. However, planning ahead and preparing clients to file early can help accountants be in better shape during the busy months of December and January.

But how early is really early to start preparing for the tax season?

The Right Time Is Now

We are currently in the mid of August, four months past the beginning of the tax season and four months away from the busy month of December. The right time to start preparing your clients and reminding them to submit their tax information is NOW!

It is a well-known fact that clients do not respond to initial emails and reminders requesting tax information immediately. In fact, most clients put off the task until the busy season. However, regular reminders or a face-to-face meeting can sometimes do the trick.

Our advice is – start sending reminders right now if you haven’t already. Begin with gentle reminders with a document checklist over email and gradually progress to phone calls. If they haven’t sent you their information by the end of September, arrange an in-person meeting to make them understand the importance and benefits of filing early.

Remember, your clients have only one tax return to worry about, but you will have hundreds or thousands to process during the busy season. So, the earlier you begin, the better the chances of convincing your clients.

What if You Miss?

We get it, the tax season preparations are keeping you busy. Reviewing your firm’s capacity, hiring additional help, evaluating your technologies and processes – there are endless things on your mind right now. Amid this pile of work, it is easy to miss sending an email or scheduling a meeting with your clients.

Months pass like days as the busy season approaches. If you are reading this blog just a few weeks ahead of the peak season, it is quite likely that you are freaking out.

How should you deal with the situation now?

Firstly, don’t panic. Relax and take a deep breath. It is human to sometimes miss or forget things. And it is never too late to get things going unless it’s the midnight of 31 January.

Call your clients now and follow it up with a quick email. Understandably, you may not have enough time to set up in-person meetings at this stage. Therefore, to get clients to understand the gravity of the situation, inform them about the spike in charges for filing during the busy season. Consider giving them a deadline to speed things up if need be.

“I don’t have the capacity to keep following up with clients…”

Capacity issues in the accounting world are real and getting worse each day. Accountants are often so engrossed in tax season preparations that they tend to miss following up with clients or simply cannot find time for it.

One of the best ways to battle this challenge is to outsource tax preparation services.

Outsourcing enables accountants to transfer the cumbersome tasks of compiling information and preparing and filing tax returns to experienced professionals outside your firm. This can help free up your internal staff, who can work on other critical tasks such as preparing the tax season strategy, coordinating with clients, and so on.

Moreover, hiring help overseas from countries like India not only helps you save costs but also creates new revenue opportunities for your practice. With the extra time and resources at hand, you can focus on marketing your firm during the tax season, attracting new clients, or simply selling other services to your existing clients.

Tax Season Doesn’t Always Have to be Taxing

Through the years, accountants have considered the tax season a not-so-pleasant time of the year. But not anymore! By planning well, starting early, and hiring professional help with a reliable tax preparation outsourcing firm like QXAS, you can easily navigate the tax season.

Was this article helpful? Check out more such useful resources on managing the Self Assessment tax season here.

To understand how outsourcing can benefit your practice during the busy tax season, speak to our expert advisors at +44 208-146-0808 or drop an email at [email protected].