Whether they find the process too complicated or simply forget, there is a growing number of people who are not filing their tax returns.
According to Government statistics, an estimated 1.1 million customers missed the self-assessment deadline in 2024.
This will result in a lot of people facing a lot of penalties – a problem that might get worse as Making Tax Digital (MTD) creates additional deadlines throughout the year.
If you are working with clients who are at risk of missing tax deadlines, then it is worth understanding why it happens and how it can be addressed.
Why do people miss tax deadlines?
It is tempting to lay the blame solely at the feet of those who fail to make the correct filings within the deadline, given that 11,581,962 people did successfully file on time.
However, there are more factors that might be at play than people being forgetful or uncertain about procedure.
Earlier this year, concern was raised that HM Revenue and Customs (HMRC) were failing in their responsibility to provide helpful advice for those facing difficulties with tax filings.
Around 44,000 customers had their calls abruptly terminated after being on hold for more than an hour.
While this number is significantly lower than the 1.1 million that ultimately missed the deadline, it is not unreasonable to assume there may be some overlap between the two groups.
It is also worth noting that any issues with HMRC’s communications will be exacerbated the closer that deadlines get.
If people are unsure of what to do with their taxes, then they will seek the help of HMRC.
If you have clients who deal with self-assessment tax returns, then encouraging them to file early could solve a lot of problems.
Why are early tax filings so important?
The obvious benefit is that people are less likely to miss the deadline if they do something early.
Self-assessment tax returns can be filed as soon as the tax year begins and must be done by the end of January.
This gives even the most avid procrastinator plenty of months to put off the filing and still make it comfortably within the deadline.
The bigger benefit is having more time to figure things out.
Whether that involves phoning HMRC or consulting experts like yourselves, a person filing their tax returns early can beat the rush and get valuable advice.
Why don’t people file their tax returns early?
If filing tax returns early is so beneficial, it might seem odd that more people do not do it.
The biggest barrier to filing tax returns is the perceived complexity of doing it.
That complexity never changes, regardless of when in the year it is filed, so many people try to block out the prospect of having to wrestle spreadsheets and figures until it cannot be avoided.
Glasscubes can help you to transform the way that your clients approach their tax returns by streamlining the process so that it is pain-free.
You will also benefit from not having to drive yourself to insanity, constantly requesting information.
The automated reminders do all the following up so that you can focus on doing more important work. Then our intelligent AI goes further, analysing records as they arrive, saving even more time.
If stress and confusion are contributing factors to people missing tax deadlines, let’s take them away and see what happens.
When tax filings no longer feel stressful, your clients can casually complete them months in advance and never miss a deadline again.
End the fear of self-assessment tax filings. Book a demo today!
