Tax Returns

[ERR]

Having trusted a consultant to complete tax returns on my behalf, online and ontime I note that no return has yet been made, I get no return to my calls. Has anybody had a similar experience ? Any advice on how to move forward welcome.

Many thanks

 

[Graham_07]

1) The taxpayer is ultimately responsible for timely filing of tax returns even if there is an agent acting.
2) What returns are you referring to ? Is it Income Tax F11 due by 31/10/07 (paper filing and paper payment or ROS filing and paper payment) or 15/11/07 ( ROS filing and online payment ) If so, and not yet filed, you are immediately liable for a 5% , rising to 10% surcharge onto the liability for the year and possible higher profiling for Revenue audit.
3) If you are having no success with the existing firm, a move to another firm would be warranted ASAP. Perhaps a recommendation to another firm from a colleague who has had a more positive experience than you would be the way to go.

 

[bazermc]

Having trusted a consultant to complete tax returns on my behalf, online and ontime I note that no return has yet been made, I get no return to my calls. Has anybody had a similar experience ? Any advice on how to move forward welcome.

Many thanks

Was the consultant a professinal qualified member of the Institute of tax?

 

[extopia]

In the past, I too have been in the position of having qualified tax professionals fail to complete returns on time, and of having difficulty contacting the accountant during the busy tax season. All manner of excuses were offered at the time, from work pressures to bereavement (which of course may have been true).

I would suggest, if you are penalised for the late return, that you negotiate with the accountant to reducing his or fee accordingly.

Of course if the accountant cannot complete the returns (if you have failed to supply all the information required, in good time, for example), the accountant may not be to blame.

 

[ubiquitous]

In the past, I too have been in the position of having qualified tax professionals fail to complete returns on time, and of having difficulty contacting the accountant during the busy tax season. All manner of excuses were offered at the time, from work pressures to bereavement (which of course may have been true).

Where accountant or other tax professionals have suffered bereavement, illness or other personal difficulties, the Revenue and CRO are normally very accommodating once this is explained to them and usually waive late filing penalties without quibble, or on production of medical certs etc. Focusing solely on fee discounts in this sort of scenario is a poor solution for everyone, especially the client whose tax or CRO filing record should not suffer due to another person's illness or bereavement. That said accountants unfortunately get sick, and suffer bereavements, as often as the rest of us, and sometimes at times that are inconvenient to say the least.

 

[extopia]

..the Revenue and CRO are normally very accommodating once this is explained to them and usually waive late filing penalties without quibble, or on production of medical certs etc. Focusing solely on fee discounts in this sort of scenario is a poor solution for everyone...

Well obviously if the accountant negotiates waiver of penalties or late fees due to personal problems suffered by the accountant, there would be no issue where the client needs to negotiate lowering of the accountant's fees.

There was no intention on my behalf to imply that bereavement is not an acceptable reason for an accountant failing to carry out his or her duties to the client. I would imagine almost any client would be understanding in such a situation, provided of course that the client is informed about what is going on.

 

[Graham_07]

The difficulty here is that the OP may have fallen into a situation where for no reason other than the advisor "being snowed under" results in the return being late. It does happen that people drop in their data to their advisor and assume things are going along only to find that returns may be filed late. It is important (A) to ensure that all items required to compile the return are submitted to the advisor and (B) that they are provided in ample time to ensure a timely return. It has long been my policy, in the case of repeat clients to send the client a letter around the year end time advising what is required and the latest date by which I need it to guarantee a timely submission. I also advise that data received after that date cannot be guaranteed to be submitted on time and any penalties are solely the clients responsibility. That system appears to largely work as we had 98% of 2006 returns submitted by this year's filing deadline. If someone submits their data to their advisor early enough and hears nothing for a few months, I think it important that the client follows up to see what state the returns are at as ultimately, they are responsible.

 

[simplyjoe]

What is the latest date of records submission do you use before you can guarantee completion on time. I use 30 June on the basis that most of the work then has to be completed in 20 weeks. I find that this deadline is needed given that more than likely there will be 3 weeks holidays therein as well as additional work for revenue audits, company accounts, illness and emeregency work. This also usually gives the clients 26 weeks to get their act together.

 

[ubiquitous]

What is the latest date of records submission do you use before you can guarantee completion on time. I use 30 June on the basis that most of the work then has to be completed in 20 weeks.

My own experience is that such guarantees simply don't work. If the target is the deadline itself, then there is a fair chance that tax return won't be finally completed until just before the deadline.

It is much better to encourage the client to bring in records as early as possible in the year and to stress to them that the earlier they bring in their records, the earlier their work will be completed and the lower their risk will be of missing the deadline. I suspect that 30 June is much too late in the year to be getting records in from the majority of clients. There is only 10 months in the year up to 31 October. If most clients' records are sitting at home for 6 of these 10 months, and a month or so is lost due to holidays in July/August, then you only have 3 months left, and end up doing a year's work in a quarter of the year.

If a client wants work done urgently for some particular reason, we try to accommodate them where at all possible (and do so in the vast majority of cases). That said, we would never offer any specific guarantees unless the work is at such a stage that we are 100% happy that we can deliver.

 

[Graham_07]

What is the latest date of records submission do you use before you can guarantee completion on time.

I use 31 July and, strangely enough, find that works quite well. A large amount of the records come in well in advance of that through our initial year end letters so we don't end up suddenly with 3/4 of the years returns to do in 3 months. By 30 June we had 50% filed and by 31 July 65% filed and we monitor % filed on a monthly basis from end January so theres constant watch on target filings. Anyone with a year end of December has 7 months which is more than enough. Obviously any other year ends, such as August would be done earlier anyway so by time ROS opens for filing there would be quite a few ready to go and that gives a good start.

My own experience is that such guarantees simply don't work. If the target is the deadline itself, then there is a fair chance that tax return won't be finally completed until just before the deadline.

The target cannot obviously be the deadline itself. Our target date of records in by 3 months before the deadline gives us sufficient to guarantee submission. After that from 1 August on its strictly and I mean strictly a FIFO basis on records coming in. It works well so far ( enough to head to Lanzarote in mid-October for a week )

 

[ubiquitous]

I use 31 July and, strangely enough, find that works quite well. A large amount of the records come in well in advance of that through our initial year end letters so we don't end up suddenly with 3/4 of the years returns to do in 3 months. By 30 June we had 50% filed and by 31 July 65% filed and we monitor % filed on a monthly basis from end January so theres constant watch on target filings.

That's the key to it really. The higher the mid-year percentages, the lower the hassle and stress at year-end.

so by time ROS opens for filing there would be quite a few ready to go and that gives a good start.

Which reminds me, why on earth isn't ROS open for business for Form 11 2007 submissions from January 1 2008? After all the 2007 tax rules were put into law in the Finance Act some 7-8 months previously. Its ridiculous that there is a further delay stretching into Feb 2008 before one can file a Form 11 for 2007.

The target cannot obviously be the deadline itself.

Just to clarify, I meant "target date" as the self-imposed deadline for completion of an assignment - not the date by which we aim to receive the records.

 

[Graham_07]

Which reminds me, why on earth isn't ROS open for business for Form 11 2007 submissions from January 1 2008? After all the 2007 tax rules were put into law in the Finance Act some 7-8 months previously. Its ridiculous that there is a further delay stretching into Feb 2008 before one can file a Form 11 for 2007.

True, I'd have clients without December dependent income, just ordinary accounts with say June 07 year end and it would be great to have them filed on first week of January, especially those that have RDI's set up and do the whole pay & file then and close the case.

Mind you, it's even worse for CT1's, the CT1 for 2007 year end's was not out til sometime in the summer. I'd a few Feb/Mar/Apr 07 acs ready & had to hold the CT for a few months. They might be surprised at the level of early filing they'd get if the ROS returns were available to file earlier.