You know when you just know you shouldn't have agreed to take something on ??? I've been asked to submit some old SA returns for a guy who has been out of the country for some years. I get the impression he's come back to the UK to find HMRC still want his old returns - 2006/07, 2007/08 for definite, and then possibly all others afterwards (although it may be they then know he was out of the UK as these subsequent years don't appear on the HMRC statements I've been given dated June 2012 so I think I can ignore these)
He's given me some sales invoices for 2006 (July to December) - but these turn out to be for a Limited Company (obviously his company as it has his name in the title) which last had accounts filed to April 2005, and which was struck off in 2009. He's given me a handwritten note to say he worked for a building company under CIS for about 3 months April to June 2006 but has no vouchers - and apparently the building company went bust in 2010 !!
Basically it means I have no income details, and very little in the way of expenses. Any ideas welcomed please. What would anyone else do ?
I think I've probably got all I'm going to get - that was my point really. There is nothing. so how do you complete a tax return when you have no information at all - and are unlikely to get any ?
I think because he's been out of the country since 2007 he has no records. I have a duplicate 2008 tax return - which is dated 6/4/08 but that is handwritten so won't be when it was actually issued, and I have a SA statement dated June 2012 which says they are wanting 2007 and 2008 tax returns. I'm guessing the 2008 return will actually be nil as I don't think he was in the country, it's the 2007 return which is the problem. If he has no bank statements showing money in, and no Ltd company accounts were filed which would have shown salary then really we're stuffed ! so, what do you do ?
Prepare the tax returns based on the information you do have, make a note of it in the other information section on the return.
Also ensure that the returns are signed by the client with the appropriate disclaimer that they are prepared based on all information and explanations received etc. I would also consider a 'letter of representation'. Generally used for company clients, particularly audit, this gives a list of assumptions made and is signed by the client to say that they agree them.
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