HMRC spend millions of pounds 'educating' our clients. It all comes down to time management, that is getting things done by a deadline. Human nature dictates that many of us will get right to that deadline. It's not always good, and leave no time to maneuver if something goes wrong. Its the same reason I see so many people on motorways staying in the overtaking lane to right before their exit.
Personally I met the extended deadline with my personal return but HMRC doesn't discriminate between those who submit their return in May or at the very last minute. I don't feel shame at all.
Having said this, I would love my clients to spread their returns out over the year, but I'm not really naive enough to thing that I won't be in the same situation again next year, and in fact I budget for the rush by ensuring I'm bang up to date by the end of December with all of my other work.
I've been on my own now for 8 years (as of yesterday!), and have changed a few things to avoid the last minute rush:
- my client base has changed from sole traders and partnerships to limited companies, so the personal return aspect is easy (dividend and salary for most of them). This has the added benefit of smoothing out the workload, as December is by far our most popular year end - we've put a reminder system in place so that clients get regular reminders throughout the year - when I get to early December, I list the outstanding returns to focus. In early January, I split between those that I think will get submitted and those that won't. Cavalier I know, but I don't want those who care to suffer at the expense of those who don't. This year, all the ones I expected to get completed were completed. There are currently about 7 returns outstanding for clients who don't care, don't respond or don't understand! I've kicked them enough, you can take a horse to water etc.. - we now get the messier accounts (the ones you don't look forward to doing that take time and thinking about!) done and out of the way early in the year
I've also learnt that, at the end of the day, the penalty is £100, and some people will pay it. Of course, the penalty system has changed this year, but unfortunately some people will learn the hard way.
