for the first time ever we've had a couple of clients who we couldn't complete self assessment returns for
both were given numerous reminders throughout the year, but neither responded or provided any records at all - both still showing as having unsubmitted returns with HMRC
not sure what we should do in this situation?
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Nothing. What else can you do?
Given the total lack of response they have probably either left the country or switched accountants.
Until they get back in touch (if ever) it's not your problem.
my approach
With these cases, I make a diary note to send them an email in late March that £10 per day penalties start from 1 May. I tell them that if they do not respond I will disengage at the end of April.
p.s. Don't assume that because the return is showing as outstanding on HMRC that they haven't filed. It can take days before the HMRC status is updated.
very true
p.s. Don't assume that because the return is showing as outstanding on HMRC that they haven't filed. It can take days before the HMRC status is updated.
That is very true - I checked the HMRC website this morning to see whether a number of clients had paid their outstanding tax bills, and the date is still showing as 29th January. Not very helpful!
Quick letter
Explaining deadline missed, 5% surcharge & daily penalty rules, loss of fee protection insurance if appropriate. Wait a while and then disengage.
I was sending monthly reminders via email from about November.
I had one client that hadn't been in contact. I then decided to send them a quick text message and the next day the wife of the client gave me a call. Apparently they don't look at that email address anymore.
I've had that problem
Best send the odd reminder snail mail.
Why not say in the November reminder, "If you don't let me have your stuff by X, I cannot guarantee that your tax return will be submitted on time", then leave it at that?
The danger with type of client is that the time spent chasing equals the fee!
My approach
I will send an email asking for the data and then an email a month later chasing.
I may then send a text.
Finally I will phone them. Sometimes I phone call works. Other times they'll say they'll send the data and still don't!
I have 13 clients who haven't submitted their tax return data. I think one has changed accountants but couldn't be bothered to tell me. Most of the others have said they will send the data and I think they will eventually. I'll send an email once a month and then chase for next years data in April the same way as with other clients. If I don't get any sense out of them if I have to get to the phoning stage I will give up then. I have a quick and easy system of chasing so I don't mind keeping them in the loop.