I have recently taken on a client to complete his bookkeeping and supply him with the information to file his own VAT return (cash accounting).
A couple of weeks ago I collected his papers for and it had a few bits missing and one of these was the bank statements which only went up to Sept 15 (supplied mid month to mid month). I keep chasing him and keep getting told it will be with me soon. I know that there will be vatable payments and receipts but I have no idea as to what the value will be
I now don't know how to proceed as the VAT return (qtr to Sept 30) is due to be filed on Monday because this is a new client I obviously want to build a good, lasting relationship but concious of the fact that I must receive all of the information.
So do I stad my ground and not send him the VAT figures until he lets me have the bank statements (he missed filing his last return for qtr to June 11) or
Do I send him the info but put a disclaimer on it saying that it is supplied but based upon incomplete information received
Yep Mark, you can only do your best. I'd do him an estimate (does he have pay-in books) and also write to the bank in his name, asking for copy bank statements sent to yourself and written up to the 4th of each month.
He'll likely be charged for the copies so that should drive home how important they are.
I have all of the income receipts from his shop but he also has an online shop which has income directly into his bank account which I don't know about.
Well, as it's a new job, you'll have to go off what he tells you about the unknown income, or base it on prior info. Getting him out of a penalty should be good kudos with this new one, but yes, put in a disclaimer. HTH Tim
I would send what you have with a disclaimer that you have not checked x/y/z as you are missing the information.
As the client is sending in the return you are doing nothing wrong. If you were sending the return in on behalf of the client I would be a little more cautious.
I would then take this oppartunity to remind the client what you need to prepare the VAT return and I find sending a checklist makes it easy for my clients.
I'm with Rob, you can only send him what hes actually given you, the missing receits/bank statements providing its not alot of monies worth can go on the next vat return ok, but at least you would have done your bit and hopefully he will process it on time his end and not get a penaulty. Just stress to him that next time all paperwork has to be with you on time so it doesn't happen again! Alternatively ask him to go on line and download his bank statements, thats if he banks on line. I have a client who always downloads me the last 5 days of the month as it will be on the next statement which won't get to me on time before the VAT return is due.
Hi
Thanks very much for your advice. It has been very reassuring
When I get back to the office later I will run the report & email it to him so at least he has 3 days to get it filed
Amanda, he does have online banking & I tried to get him to download the statement and even more frustating is that he probably has the printed statement from the bank by now
Oh well, clients don't you just love them
Regards
Mark
Hi Thanks very much for your advice. It has been very reassuring When I get back to the office later I will run the report & email it to him so at least he has 3 days to get it filed Amanda, he does have online banking & I tried to get him to download the statement and even more frustating is that he probably has the printed statement from the bank by now Oh well, clients don't you just love them Regards Mark
He also has to get the amount payable in HMRC's hands by the 7th as well surely and there's no way that's going to happen now. I don't think anything will happen if this is a first offence sort of thing - but if next quarter's return isn't done on time and paid on time that's where the problems begin. They'll probably also escape a penalty the second time but it does mean for the next 12 months none of the returns can be late. That's going on old rules - things may have changed - but if they have changed I reckon things will be even harsher now.
__________________
Never buy black socks from a normal shop. They shaft you every time.
If hes set up to pay by Direct Debit then its due out of his bank account on the 10th of Nov so will give him a couple of extra days, thats providing he does this method, if not then like Peasie has said he may not have enough time. It sounds like your client needs a kick up the ****!
Good luck at least you know you hae done your bit ok.
Best not to omit the Online shop income. How would you do it if you knew there was going to be a VAT visit next month - It'd go down better going the extra mile and estimate an over-declaration rather than knowingly underestimate the amount due. Just my thoughts. kind regards Tim
