HMRC estimates that 750,000 people a year out of the 11.5 million who should file the paperwork for Self-Assessment fail to lodge their return in time!
It was reported going into the final week of January this year that more than 3 million people were yet to send their 2018/19 tax return in. That figure was likely to have reduced, but it’s certainly amazing when you consider the penalties and charges for missing the deadline and subsequent late filing.
Tax penalties apply for the late filing of Self-Assessment (SA) tax returns and late payment of tax due under SA.
It’s important to remember as well that, for your clients, the late filing penalty system changed for returns and payments from the 2010/11 year onwards. This can bring severe implications for clients of yours that have to file for Self-Assessment and end up missing the January deadline.
An initial fine of £100 will be imposed to clients if they didn’t get their info to you – or to HMRC – in time.
90 days is then provided to file after which a fine of £10 per day will begin to incur and could see a potential penalty of up to £900. After 6 months, a further penalty of either 5% of the tax due or a £300 charge will be owed, and your client will be further out of pocket – whichever is greater.
How can you effectively manage client communications around tax filing and penalties?
With your own App you can set up small client groups for Self-Assessment and send notifications to prepare clients for the deadline. Whether they are filing themselves or you are filing for them and need their documentation – notifications are five times more effective than email and land straight on their device home screen.
You can also detail the relevant penalties at each stage post-deadline, so it enables your clients to receive important information immediately on what they need to do – and the consequences if they don’t. This helps to strengthen the relationship and save you valuable time and resources as you prepare for and come out of the busiest period of the year.
Thousands of firms worldwide are already using push notifications as part of their digital strategy and engaging with clients on their chosen device 24/7.
To find out more about how your own App can benefit your practice, reduce stress, save time and ease your firm both into and out of the self-assessment period and other important deadlines then book a free demonstration today.