Good afternoon I am really hoping someone can advise me.
I have had a request from someone who has not done their tax return for the past 3 years to do the bookkeeping on this. Of course I said I would help and it all came over in nice folders and files.
There was also 3 years of payroll missing which I have now created and brought up to date and decided once the easiest job was over I would start the accounts.
There was an envelope from his old accountants with a set of accounts in and his tax return working paper only when I looked at it, there are accounts from 2008/2009 and a tax return and a tax return from 2.09/2010 but no accounts!!
The client doesn't have the set of accounts and I have tried to contact the accountants for many days but to no avail. They must have done 2009/2010 as they have completed his tax return but without 2009/2010 opening balances how am I to start the accounts, I can see there is a loan and VAT and various other things but how can I start this with no opening balances and the chance that I will never get them - I have 2 weeks to complete this so any help or advise would be much appreciated and a complete godsend :)
Also they have done the accounts 01/08 - 31/07 but the tax returns obviously until 05/04/2010 so where would you suggest the bookkeeping is picked up from - I am currently thinking 01/08/2010 but am now questioning myself with tax return being until 05/04/10
Well, HMRC will have this information but even as an agent you would find it easier to get blood from a stone than get hold of the accounts that HMRC hold.
Previous tax returns will be more readily available but with the pressure that they are under with seemingly ever reducing numbers of front line staff don't expect a lot from them.
If its a limited company you can get the abreviated accounts from companies house (for a small charge) but the informations in those is very restricted to the point of pretty much useless.
With no history and no way of getting it for a client thats going to be hit with serious interest, penalties and surcharges you probably need to ask yourself whether or not taking this client on is worth your time and hassle.
I might take a client who has missed a deadline but to miss a deadline AND lose all documentation... Wouldn't touch them.
I assume that your engagement letter has a get out of jail free card that it is the clients responsibility to supply you with all required infromation in a timely manner so really its bat it back to the client and if they come up with the information, great. If they don't then it's your problem how?
Sorry its not a very helpful reply. Sure that others will be along with more client freindly replies later.
kind regards,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Thank you for your reply, its a sole trader who is going for an IVA and the court date is in just over 2 weeks, HMRC are taking him to court and has told him he needs to get the accounts done and obviously the IVA people want to see this before the court date!!!
Yes I do have an engagement letter which states that I am only responsible for the information that I have and nothing other and it is their responsibility to get me the information - on looking through it all, all the info is there and a letter from previous accountants which I have found another letter stating that they have filed his 2009/2010 tax return to 05/04/2010 but have not yet completed the actual accounts, so how did they get a tax return figure?!
My money is on that the accounts were prepared, tax return filed but client failed to pay or there was some debate over payment so they refused to issue accounts rather than them not existing.
If thats the case payment of any outstanding bill should see the accounts released to you.
You really need to talk to the existing accountants but its down to your client to give them permission to talk to you (they may not even respond to unsolicited correspondence from yourself until the client has given them permission to talk to you) and they probably won't talk to the client if there is money outstanding.
Maybe time to sit the client down and find out what they've perhaps previously ommitted to tell you about the relationship with the previous accountants.
Do it in your office in work hours and if you are getting a sob story from the client ask the client to give the encombants a ring there and then and see what the reaction is.
As I say, my money is on the root of this being outstanding fee's and if that gets sorted you get the accounts.
Another issue here is that you could spend a lot of time putting information together which will be necessary to your final report but useless without being able to add the opening balances.
If the opening balances cannot be obtained will the client pay for any work that you do that cannot be completed?
Although, as this is an IVA case I suspect that you have already had your payment up front?
Sorry I've not got any more useful suggestions, sometimes though its useful to just chat and realise that you are not missing something obvious (been there, done that, got the T shirt writing the book).
kind regards,
Shaun.
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Thanks Shaun yes sometimes reassurance is good :) especially as I can be one of these that sit here for hours wondering what the hell I am missing ha
There is a written paragraph from them that says we would request your books and records to prepare the next set of accounts 01/08/09 - 31/7/10 - 2009/2010 tax return is enclosed and require your signature and returning to us asap.
This is why I am confused as to how they have completed a tax return without a set of accounts!!!
I have my money up front but all I have been able to do so far is run all the payroll from then - present and then input the invoices and now I am stuck. I have tried calling the accountants but so far they have failed to pick up and I do not know where to go from here or what to do in the fact he needs this for the IVA before court and I cant possibly see how I can do them without opening balances just wondered if anyone had any ideas!!
Also if the accounts has been done umtil July but tax return April I am guessing they have possibly included the info up to April only or should I continue the account from August 10........that's if I can ever get these opening balances :(
