Partner Article

Dear Tax Professional – How was it for you?

There was a big sigh of relief last Friday from tax professionals involved in completing tax returns for individuals, having worked long into the January evenings and weekends.

Many studies tell us that it’s human nature to procrastinate and the fact that it is to do with tax probably only exacerbates the issue. The figures highlight the issue - around 10.74 million tax returns were due to be filed by 31 January 2014. While only 93.4% made the deadline, more interesting is that fact that 5.6% of the returns filed – a staggering 569,847 – were submitted on the deadline day (over 21,000 just in the last hour before midnight!).

Actually, figures for both tax returns filed on time and over the internet were both up on previous years. So taxpayers are improving.

In the longer term, HMRC are attempting to remove more people from self-assessment. This year the increase was largely due to the High Income Child Benefit charge which may correct itself over the years ahead as individuals get up to speed with this charge and opt out of the benefit. Real Time Information should also lead to improved tax deductions from salaries and in the future HMRC could use information collected from banks and financial institutions so that only those with income not known to HMRC will need to file.

Until we get to that point, or there is a fundamental change in human nature, January will continue to be the dreaded month for those dealing with individual tax returns!

This was posted in Bdaily's Members' News section by Baker Tilly .