We've got a client of ours who we've recently informed we won't be acting for, for a few different reasons - essentially we can't trust him, or that he's going to be doing things correctly from his end after outright refusing to pay taxes to HMRC.
He's appointed a new accountant, however their professional clearance request is simply "Can you provide the invoices, and company authentication code?".
We feel we've got to mention the reasons as to why we're not acting for him, however we've not been asked in the usual "Any reasons as to why we shouldn't take on this client" way.
Are we obliged to inform the new accountant, or is it worth just letting it slide?
Maybe the new Accountants dont want to know, which is why they didnt ask. Or perhaps they just havent had the necessary experience to think to ask (wondering what body they are with).
If you have hard evidence of tax evasion then you would be reporting that, but is that just him verbalising? I mean - have you reported all the tax that is due in the usual ways - VAt returns/self assessments/CT return - cos if you have HMRC debt collectors will catch up with him.
Probably worth taking advice from your professional body on this one.
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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
Hi Jason
Think I would take that as an almost flippant comment, but only assuming his taxes wee up to date of course. Might be tempted to put a call out to the new accountants, but you need to be careful with this. What did your prof body suggest?
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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
