% of tax returns completed by now - poor result

% of tax returns completed by now - poor result

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I was hoping we would have got  at least 80% of tax returns completed by now - Its November next week! Last year was terrible for me due to my own fault.

Our result is very poor. Our completion is only 17%. Clients have not provided the information. Despite asking for this on 1st September.

The reason for this post is to ask those highly efficient accountants who have completed 80% or more of their tax returns ( they must be), how did you do it?  Do you offer carrot or stick? What was this?  Did you say if information not received by X date we may not be able to complete your tax return?

I want to make sure by this time next year at least 80% of our tax returns are completed. 17% is just too low. 

Replies (26)

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By ShirleyM
31st Oct 2011 07:00

Good organisation

We start writing to/emailing our clients in April and we already have the bulk of our returns completed.

Just explain that by calculating the tax early they don't have to pay the tax any earlier, but they then know what to budget for, and this can be a big help in these tough times. Also, if they are entitled to a refund then they will get the refund earlier.

Make it as easy as possible for them by listing the information included on the previous years return so that they remember everything you need. You can also send a list of other income/reliefs that should go on the tax return if their circumstances have changed.

Finally, we point out that the work is processed on a first come, first served basis, and our quotations are based on records being received promptly. Also a good idea to point out the new penalty regime!

This enables us to take time off between Xmas, and the New Year, and we have free time in January to take on the new clients who have left it very late, who we re-educate for the following year.

 

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By Ken Howard
31st Oct 2011 07:28

You need to pester earlier

I'm at about 90% either submitted or with the client for approval. We send a letter on 6 April reminding them of the tax year end and giving them a personalised list of the info we need with a general list of declarations on the back for reference.  A couple of months later (end May/early June), we send another letter/email asking for the information.  A further reminder is sent in September, and then again in October.  The remaining 10% are now getting weekly reminders.

I've tried the other approaches mentioned, i.e. higher fees for being late or lower fees for being early, but it never really worked for me.  Clients didn't seem bothered about a discount for being early (perhaps we are too cheap anyway?) and wouldn't pay the extra for being late - they'd rather pay the £100 fine and for it to be late!  Maybe once the new penalties have bedded in, clients may see it differently?  I also experienced some resentment from those clients who really were working all hours to survive - a couple of whom regarded it as yet another kick in the teeth.

Last year, we had all our returns done by Christmas which was a first for us and allowed us to enjoy a bit of extra time off for the first time ever.

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By petersaxton
31st Oct 2011 08:15

I blame myself

I started chasing in April. I've got around 40% of tax returns done.

I think it's best to have company clients with 31 March year end so I can make more efficient dividend decisions alongside personal tax.

This means that most of my company accounts are due by 31 December. I also get their personal tax done at the same time. This leaves January to do my self employed clients and any other personal tax returns. I find I can do the January work really quickly so that isn't a problem. What concerns me more is getting the company information well before Christmas.

I don't like the idea of threatening my clients with surcharges or offering discounts. I think my prices are low enough as it is. If I say I may not be able to do the work before the deadline I am worried some clients may panic and go to another accountant.

I chase my clients regularly and say I will do the work first come first served.

I've had some clients been persuaded and after being regular last minute people they now send the information early.

I am now in the position of having a lot of company work to do and relatively little personal tax.

I think I should have worked harder on the company accounts but I usually have a lot of other work to do especially when new clients come to me with immediate problems.

If you have a problem with clients providing information then remind by email but chase by phone. Phone is a lot more effective especially if a client has ignored your email.

 

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By Jimess
31st Oct 2011 08:52

This year has been strange...

We always issue our tax return letters in April along with a copy of last years tax return data, we also contact clients shortly before their accouting year end to discuss the items we need for the year end accounts and when we need them.  Up to last year we found this worked really well and the rush jobs in December and January were mainly the ones that always drag their feet.  This year, however we have had to continually chase and had to issue a reminder letter in early October specifying 31 October as last date of receipt to guarantee tax returns will be submitted on time to gather in the work that clients have not yet brought in. A lot of the work that has come in early is from clients who pay us monthly. Jobs that we normally get done in June or July have only just come in to the office.  I reckon at the moment we have about 60% of our tax returns (with accounts in most cases) to process and several 31 March and 30 April company clients to process. The work is now falling through the door at a much faster rate than we can move it. Client after client has said that they were hanging on to their money as long as possible - they know that books in = payment on account.  Does not help us with our work planning at all!  Sign of the economic times I guess.  I have explained to them that it is false economy leaving things to the last minute but their money priorities do not always fall in line with our work planning.  I can see lots of late evenings and weekends worked this tax return season. 

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By MarionMorrison
31st Oct 2011 09:07

Good Year so far

We're running just under 39%. our best at this point for 5 years and 5% ahead of last year.  I claim this as a win for targeted nagging.  You hit up the people who are late at the beginning and don't bother with expecting much traction from bland reminder letters.  If I could impart one piece of wisdom to this profession before I die, it would be Pick Up the Bloody Phone and talk to people.

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By petersaxton
31st Oct 2011 09:18

So true

Two good points from the last two comments:

(a) phoning helps because it embarrasses people into acting more than a standard letter, but

(b) people want to wait as late as possible to pay their accountant so they delay sending the data unless they are on regular SO or DD payment.

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By Canary Boy
31st Oct 2011 09:48

74%

We have either completed or are working on 74% of our expected tax returns for self assessment.

Most of our clients pay by SO/DD.

We do nag

We are strictly first come first serve

We do have a fair number of repayment cases

We do go skiing in Jan/Feb! :¬)

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By Figurate
31st Oct 2011 11:11

I email and text people.  I have also been known to arrange to go round in person to collect, if I know I'll be in the area.

(Have done 80% - most of the later ones have a summer year end)

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Universe
By SteveOH
31st Oct 2011 10:03

I prepare accounts "in year"

I prepare simple accounts every quarter so that: (1) I have completed accounts to 31st March 2011 by about the end of April 2011, and (2) I can look at tax planning issues before the end of the tax year.

I get my way by "bullying" my clients into giving me the information. If they don't give me up to date information on a regular basis, then I suggest that they might be better off with another accountant. This has only happened once as most of my clients are quite happy for me to pester them. "I need an occasional kick up the backside" they say to me.

The only problem arises with new clients. But they soon come round to my way of working. Indeed, I lay it on the line while they are still prospects.

To answer FirstTab, all the 2010/2011 Tax Returns for clients that I had last year were filed long ago. I am now dealing with clients that I acquired this year.

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FT
By FirstTab
31st Oct 2011 10:05

Wow! Efficient accountants

Thanks efficient accountants and others who have taken some learning points from this. My hat off to efficient accountants for doing so well. I have learnt a  lot from this thread. 

This is the kick up the [***] I needed. With planning and real determination (pestering)  it can be done.

 

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Teignmouth
By Paul Scholes
31st Oct 2011 11:07

Deja Vu

FT - haven't you posted this or similar questions in the past?  Have you not had similar responses?

This must be the 10th time I've posted this on here.  Tell clients your own deadline is 5 July (or 30 June for companies).  Write to them in April with reminders/checklists etc then in May & June to warn them that the deadline is approaching.

Even though our terms state that we will increase fees in stages if the info is late, there is no need to do this or threaten them or say anything negative at all just "our deadline for your information is.....".  Most will comply and others will call in to ask for a few week's extension because of xxx and for any that don't comply, ignore them, send no mre reminders and if they come along in December, you either tell them you can't do it or charge them a great deal more money for doing the work.  In all of this you are doing the minimum of admin and leaving it entirely up to them.

We have achieved over 70% success in getting info in by 5 July for the past 4 years using this method, it works.

 

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FT
By FirstTab
31st Oct 2011 11:48

Paul

Thanks for your response.

I have posted the thread that last year was terribe. I have not posted this question before. Even if it is repeated I  do not see what the big deal is Paul. May be takes it takes a  few attempts to get through to me. May be I  am not as bright and sharp as some are here. In the end I do get it!

More repeated threads to come!

 

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Replying to Nongpoy:
Red Leader
By Red Leader
31st Oct 2011 13:06

50%

I've done 50% so far. This is about typical for the last several years.The highest has been 58% a few years ago. Letter sent in April telling them to send their info to me by 31 August, extra 10%/15% if they leave it until Dec/Jan. One reminder in October, usually by email. I find that 50% done by now (end-Oct) results in a reasonable Dec/Jan workload. I also make  a point of working a bit extra in November so that by 1 December I am working on a <7 day turnround for tax returns.

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By ShirleyM
31st Oct 2011 13:24

@FirstTab

If you were 'up North', and I wasn't such a lazy mutt, I would come into your office and get you properly organised!

I get a lot of pleasure from creating order out of chaos and it is so satisfying to see the results, and the benefits that come with it (OK - chaos may be a bit of an exaggeration but 'chaos' sounds better and more challenging than 'not quite properly organised').

Just an idea - but why don't you ask a college if there is Business Studies student who wants some work experience, and get them stuck into it?

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By thacca
31st Oct 2011 13:28

55%

I set my own deadline as 30th Nov - I had a really bad january four years ago and I put systems in place so it doesn't happen again - I managed to get a week of Snow Boarding in last year. By 30th Nov I think we will have 85% done including all directors. So it will just be any Sole Traders who have not brought their books in. They've had three letters now, the 1st two said by the 30 Sept and the last ,a final reminder, said by the 30 Nov. I will do my best for any who bring their records in after that but I won't lose any sleep over them.

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By petersaxton
31st Oct 2011 14:18

30 November is a good realistic deadline for personal tax returns but could present difficulties for company clients with 31 March year ends.

I do have sympathy for clients who are saving up desperately to be sure they can pay me.

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By thacca
31st Oct 2011 14:22

Companies 31 March

They also have a deemed 30 Nov deadline. They have to as I close the office between xmas and new year.

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By MarionMorrison
31st Oct 2011 14:27

The Unspoken truth

Whisper it soft - but I actually enjoy working like a complete maniac in January.  The intensity is a pleasure in itself.  The work has to be done sometime and I'd rather work 14 hour days in January and not bother coming in for a day in June, than work nice and evenly.  

January is the most depressing month of the year, it's dark, cold and unpleasant but if you are relentlessly busy, you don't realise.  By the time I get back from somewhere warm after the deadline it's the second half of Feb and starting to at least get lighter. 

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By petersaxton
31st Oct 2011 14:28

Promises

I get so much done in January and I always promise myself I will work like that during the rest of the year!

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FT
By FirstTab
31st Oct 2011 15:10

I need a Shirley

Shirley you or a duplicate of you is so what I need. This is the only time I wish I was up North. Nothing wrong with the North. I am too used to London. 

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Image is of a pin up style woman in a red dress with some of her skirt caught in the filing cabinet. She looks surprised.
By Monsoon
31st Oct 2011 15:42

Who knows...
I couldn't say what % of tax returns we have completed. My gut feeling is 40-50%. Not as many as I would have liked.

The main problem this year has been people arriving late; I still have a good third of clients still to come in. Contrast this to last year where all bar two were in by my deadline of end September. All I can attribute it to is people wanting to delay accountancy fees. I'm chasing to the point of nagging, and not getting very far.

I had a horrendous January a few years ago and vowed never again. It's been manageable for the last two years and I am hoping we get everything that comes in between now and end Nov by the xmas break. Here's hoping. That said, sadly I do thrive on deadlines and need a bit of pressure for me to kick into top gear. Contrast that with me being susceptible to stress and anxiety - go figure.

I swore I would get directors tax returns done early this year because they ought to be easy, right? Wrong. Chasing information, again. I've done about a third of my directors returns.

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By User deleted
31st Oct 2011 16:29

1 left to finish

But then I don't do that many that aren't just salary / divs from company accounts with March y/es. I've done most of that one - just need P45s - and already had the dosh upfront. I start the requests in April, again in June / July (reducing payments on account is an incentive) and then a final one in Sept / October giving a deadline in Oct / Nov. After that its up to them to remember. I think you have to start asking while they're getting bank statements, P60s etc in, after that and they'll have misplaced them.

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By petersaxton
31st Oct 2011 18:41

Flash

You don't have a lot of self-employed clients?

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By User deleted
31st Oct 2011 19:09

@ Peter

Nope, limited co's mainly so directors' tax returns..

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By petersaxton
31st Oct 2011 19:13

Strange

Around 40% of my business clients are self employed while 60% are limited companies.

How do you manage it? Not that have a preference!

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By User deleted
31st Oct 2011 19:31

Not really

Just the way it's worked.... I prefer limited co's but that hasn't made a difference. Maybe it's because I get recommended by limited co's to other limited co's? Or maybe there's another local accountant who's got all self-employed and is wondering where the limited co's are!!

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