A recent survey has shown that for under 35’s – 50% prepare their tax return themselves or get family and friends to do it for free. Any why wouldn’t they?
The free online MyTax service has been substantially improved over the last couple of years and is super easy to use. As the under 35’s have grown up with computers and online programmes they find navigating the MyTax service a breeze.
For basic salary tax returns, in the majority of cases, having a tax agent prepare the return adds no value at all. The tax agent cannot create deductions that don’t exist.
Preparing your own tax return is also empowering. You are learning new skills and building your knowledge. Delegating basic tasks you can do yourself and relying on someone else (the tax agent) doesn’t make any sense.
For accounting practices that have been relying on servicing this basic salary and wage tax return market, the outlook is not good. These fees are in an inevitable decline and the only unknown is how quickly this whole market is wiped out. For these practices, the question is: What ‘new’ services can you provide to clients that add value? Also, are you trained up with the expertise to provide these services?