I have worked with a client for a year now doing his bookkeeping. It's not much, just a few hours a quarter to get the VAT return done. But he doesn't give me the paperwork, he annotates the bank statement so I don't see VAT invoices. I have asked but rarely get them. He sends me what I do get in the post so I feel quite detached from the business. And on top of that I have to ask numerous times for him to pay my invoices. At £40 a quarter I've decided he's too much work.
Does anyone have a nicely worded letter I could use to let him know? I've never got rid of a client before!
It is with some regret that I no longer wish to act on your behalf in producing and submitting quarterly VAT returns.
For some time now you have had difficulty in sending me the required paperwork each quarter and as such, I can no longer represent your best interests in producing accurate VAT returns on a timely basis.
I trust you will have no difficulty in appointing someone else and I wish you every success for the future
Yours sincerely
Princess.
I would make sure you do it after he has paid any invoices due and that there isn't a return looming. Good luck with it.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Nice letter John. Q. If you end a client who is VAT registered, is it mandatory to give the VAT working papers? - I know every other working paper belongs to the accountant. Reason to ask is I'm sure I read somewhere, at sometime, that VAT w.papers flow onwards. Thanks
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Johnny - Owner of an overly-active keyboard.
A man who can read, yet doesn't, is in no way wiser than a man who can't.
I've quoted from that one before over the difference between the rights of lien over the papers and records of the self employed as opposed to limited companies where we basically have very few rights diue to the companies act requiring that the paperwork is accessible.
I digress, the entire document is worth reading but the bit that you want in relationship to ownership of the working papers in relation to VAT is "Taxation including VAT" in the left hand column half way down page 2.
HTH,
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.
Spooky Shaun - I was just looking at that document yesterday! Very useful and another highlight of the difference in how we treat s/e and ltds.
Princess - have you had the full and frank discussion with this client? Just a thought before ditching, especially if you are mid VAT period. Sometimes they just need to be told very clearly - no bit of paper to prove VAT re-claim, then no VAT reclaim occurs. Plus the danger of the item also hitting their DLA (or drawings) in the event I cannot ascertain for myself that its a business expense. Usually works with mine. Certainly worth a one warning and then you are out kind of discussion, unless you have had enough of him and still want to run. For the awkward payers I have a two/three lates and you pay up front policy.
I assume you have an engagement letter with this client? If so, then if you are going down the route you suggest, I would follow John's suggested email with the formal disengagement letter (or tag it on the bottom)
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Good luck with getting rid of them and you are right for £40 per quarter he is just not worth bothering with, you could earn that and more with a 'nice' client.
It's not easy making those decisions but once you have done it you will feel a load better!
My first one I got rid of years ago I was really worried but now it is just 2nd nature. I always now have a 'culling' on crap clients once a year and decide at the beginning of the year who I am going to get rid of and who I am going to keep. Then I work out the best time to let them down and do the deed. I have a possible 3 this year that will more than likely go. Cherry picking now is the name of the game for me, I am lucky that I am now in that position.
I had one who produces all the paperwork but it's like pulling teeth. Was getting on my nerves so I just hiked the price, thinking he would go, but he agreed to the price increase, so at least I'm being well paid for my time.
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
