Accountants waiting for the deadline to submit Tax Returns
Discussion
Ball very much in their court with regards to the information they've confirmed they think they have all the info but haven't checked it yet.
Return sent to me for review & approval at 22:20 on the 31st last year!
Was wandering if there was a reason as I worked as a temp with HMRC during the first year of self assesment logging the incoming paper tax returns. There was a widely held belief that the accountants were holding all their paper returns until the deadline in an attempt to swamp HMRC.
Return sent to me for review & approval at 22:20 on the 31st last year!
Was wandering if there was a reason as I worked as a temp with HMRC during the first year of self assesment logging the incoming paper tax returns. There was a widely held belief that the accountants were holding all their paper returns until the deadline in an attempt to swamp HMRC.
HMRC have held that view ever since they set their own self imposed "window" for tax enquiries - which used to be 12 months after the filing deadline date i.e 31 January the following year.
Their expectation was that accountants would delay filing returns until the last minute - thereby restricting the amount of time available to HMRC to review the returns and select any for enquiry.
The reality is that MOST accountants are keen to submit the returns as quickly as they can as they have enough workload on their plate in December/January without deliberately putting themselves under even more time pressure.
The rules for the "enquiry window" have now changed, in effect, making the date of submission less relevant regarding lengthening or shortening the window. Therefore, there will be no perceived advantage in submitting tax returns as close to 31 January as possible.
If what HMRC believe is true, then they will see less bunching of the returns in January. My expectation is that nothing will change. Returns that are submitted in January are down to client behaviour, not accountant behaviour.
Their expectation was that accountants would delay filing returns until the last minute - thereby restricting the amount of time available to HMRC to review the returns and select any for enquiry.
The reality is that MOST accountants are keen to submit the returns as quickly as they can as they have enough workload on their plate in December/January without deliberately putting themselves under even more time pressure.
The rules for the "enquiry window" have now changed, in effect, making the date of submission less relevant regarding lengthening or shortening the window. Therefore, there will be no perceived advantage in submitting tax returns as close to 31 January as possible.
If what HMRC believe is true, then they will see less bunching of the returns in January. My expectation is that nothing will change. Returns that are submitted in January are down to client behaviour, not accountant behaviour.
Edited by Eric Mc on Monday 24th January 12:30
AndyAudi said:
Anyone else's accountants do this, is there a reason?
Ours always wait until the the very latest despite having the accounts finished months before.
(Sunday 31st @ 22:40 for mine last year)
Do you owe HMRC money ? If so why would you submit it any sooner?Ours always wait until the the very latest despite having the accounts finished months before.
(Sunday 31st @ 22:40 for mine last year)
My accountant filed mine last week but HMRC owe me money, that was as soon as it could have been done as we were waiting on info.
At the moment, a taxpayer is not liable to the £100 penalty if their return is late IF THEY DID NOT OWE ANY MONEY at 31 January. Onviously, if the return misses the 31 January deadline, HMRC will more than likely issue the £100 penalty anyway but will cancel it once the return goes in and it is obvious that no tax was due.
This is changing.
Next year, the £100 penalty will be levied even if the taxpayer owes nothing.
This is changing.
Next year, the £100 penalty will be levied even if the taxpayer owes nothing.
AndyAudi said:
Beardy10 said:
Do you owe HMRC money ? If so why would you submit it any sooner?
Nope not a thing.Don't think that has anything to do with it. Payment can surely still be delayed to 31st regardless of when you submit your return?
Maybe it's just our accountants!
AndyAudi said:
Ball very much in their court with regards to the information they've confirmed they think they have all the info but haven't checked it yet.
True to form they e-mailed me last night with a few simple questions for 4 out of 5 returns.Looking at Eric's comments on Agents possibly being fined in the future makes me wonder if it will be different next year!
None of us will be owe any tax so nice to know we'd get fines cancelled even if they are late this year.
Edited by AndyAudi on Monday 31st January 12:23
AndyAudi said:
Looking at Eric's comments on Agents possibly being fined in the future makes me wonder if it will be different next year!
None of us will be owe any tax so nice to know we'd get fines cancelled even if they are late this year.
The tax payer will face the fine, not the agent!None of us will be owe any tax so nice to know we'd get fines cancelled even if they are late this year.
Edited by AndyAudi on Monday 31st January 12:23
No new rules have been published uet as far as I am aware. Last year it was announced that agents would be in the frame for penalties in respect of problems with their clients' tax - if appropriate. Whether those penalties will include "Self Assessment late filing penalties" nobody knows at the moment.
Eric Mc said:
My hunch is that late filing will not be of main concern of HMRC. It's agents aiding and abetting clients to "hide" income or submit incorrect returns that will be the main focus of their attention.
Then surely formal proceedings are more relevant than "just" financial penalties as is the case now? Seems like a slippery slope to me?Gassing Station | Finance | Top of Page | What's New | My Stuff