The year 2020 has been a rollercoaster ride because of the global pandemic that hit the world. As we enter this new decade- 2021, we start with new hope and aspirations. 2020 was a huge washout but all of us are hoping for new beginnings. With the vaccine out, all of us are praying for some normalcy and soon get back on track. Work from home may still remain an option now for cost-conscious businesses. We must try and put all dark memories behind us to a grinding halt as corona’s minute spikes engulf our planet Earth. Hence, tax planning is vital in this new year.
Nobody likes the stack of paper files piling up. If this is what your office looks like, it’s time for tax return season. The date 31st January is a tough time for all accountants and practices. It’s a deadline to file a self-assessment tax return. With tax filing, comes the headache. You may reduce this headache and ensure there is no stress on your team merely by following these simple tips to tackle the upcoming tax season rush.
Running an accountancy practice is challenging. Especially during the tax season rush. It is the busiest time of the year for all the accountants across the UK. Tax season requires you to be a little ahead of the game. The news of HMRC declining tax extension deadline has taken a troll on accountants’ lives. The UK tax year runs from 6th April 2020 and finishes on 5th April 2021. Your accounts must be calculated between these dates.
So, just tag along! Tax return is a documentation to file with the HM Revenue and Customs (HMRC) declaring taxation on your income.
- Plan Ahead:
You need to plan ahead so that business development doesn’t lag behind when the team focuses on meeting all important deadlines.
You may choose tax outsourcing services to get extra help during this rush season by also making the season profitable. You would already be busy managing regular clients work meanwhile you may also undertake new clients tax returns which sounds profitable.
- Learn to say NO:
Plan ahead and then plan your own deadlines to file a tax return. Instead of keeping HMRC’s deadline as a target, set your own and communicate the same with your team so that everyone is on the same page.
Make it easier to file taxes by gathering all the information beforehand and keeping all receipts sorted and filed up. Having said that, make sure the tax return checklist is handed out and all the necessary documents are present before filing taxes. Make use of technology and tools to streamline processes and time to prepare and file taxes. This will make the tax journey smoother and efficient in filing taxes.
If you are already associated with an outsource Accounting & bookkeeping company in the UK, it becomes the responsibility of the outsourced firm to look after documentation and file return on time on your behalf.
- Track Progress:
Track the progress with your team where they are in terms of HMRC’s requirement. Make sure to match records with that of HMRC’s list. You need to be prepared for the crisis because many things may go wrong especially during tax season. Be flexible for the surprises to pop in.
- Set fees at an appropriate level:
You must charge fees if the documents come in late and also charge lower fees or reward for those who provide early or on-time documentation.
- Spread the workload:
Aim to complete 75% of tax assessment by December and rest 25% in January before the deadline of course!
When you choose outsource accounting and bookkeeping services, it becomes their responsibility to file tax returns allowing you more time to greater client experience. So, it’s the right time to delegate the workload to other personnel. This will make things easier during the tax season.
- Consider other options:
You may always choose tax outsourcing services to lower the burden and save cost than your own hourly rate.
Don’t fret! The tax season pressure can be greatly reduced by following the above top tips.