When is a good time to get a new accountant?
Now! Aha I would say that... But seriously, there are some things to bear in mind regarding when to engage a new accountant.
Filing Deadlines*
No one wants to think about their taxes until they absolutely have to - I can understand the principle of out of sight out of mind. 630,000 people filed their self-assessment tax return on the 31st January deadline in 2022. You are not alone.
Starting with a new accountant just before filing deadlines can cause unnecessary stress. You want your accountant to gain a thorough understanding of your business and develop a strong relationship with you. It can take a little time to go through the necessary processes of getting set up together, ensuring you are on the same page in preparing your records and accounts, and to determine the appropriate tax treatments where there are complexities.
If you're changing accountants then a disengagement process is customary which involves sending a letter to the outgoing accountant and requesting the information they hold, and it may take a little time for your new accountant to catch up from where they left off.
That's not to say it's impossible to fit in the last-minuters, but why not make it easier for yourself and bring that conversation forward.
* The tax year runs from 6th April to 5th April (for instance, 6th April 21 to 5th April 22). The filing deadline for online self-assessment returns is 31st January after the end of the tax year (for instance, 31st January 23).
Making Tax Digital for Income Tax Self-Assessment
UPDATE: Government announces phased mandation of Making Tax Digital for ITSA - GOV.UK (www.gov.uk) (19 Dec 2022)
(Those earning over £50,000 are now set to begin MTD ITSA in April 2026 and those earning between £30,000 and £50,000 in April 2027. This is delayed from April 2024 which was the case when this blog was initially written. I’ve edited the below to reflect the new dates.)
You may not have heard that Making Tax Digital (MTD) for Income Tax Self-Assessment is due to arrive from April 2026. HMRC have been a bit quiet about it so far, so in case you don't believe me, here's a link or two:
Using Making Tax Digital for Income Tax - GOV.UK (www.gov.uk)
(disclaimer: these links were correct at the time of publishing this blog but may change in future)
This is a big change to what we're all used to - we’ll need to file quarterly data to HMRC via MTD compliant digital software, complete an end of period statement after the year-end, and then submit a final declaration by 31st January (which essentially replaces the current annual self-assessment return).
Why are they doing this? Well they expect that through this increase in surveillance HMRC will get additional tax revenue of £2.9bn over the MTD programme lifecycle, says the National Audit Office (p312, love them). Can you get out of it? In the vast majority of cases, unfortunately not.
Changing habits and training up in digital record keeping can take time, as can choosing the most appropriate software provider to fit your needs at a reasonable price. April 2026 may feel like a long way off but it is strongly advised to practise this new schedule early so that you're not stung with unnecessary penalties and interest when it really matters.
So the answer really is now! Or at least quite soon... I wasn't just saying it.