I have just provided all of the usual information to one of my ex-client's new accountants ie last year tax return, capital allowances, accruals. It was a sole trader who gave me everything listed in a spreadsheet so there was no bank account to reconcile. I moved a few things around, took some out to claim AIA, accrued for my fees, disallowed some phone etc but no major changes as the client was very organised. The new accountant now wants a detailed breakdown of each of the categories of expense on last year's tax return. I have never been asked for that before. Would you supply that information? It's not that I object necessarily in principle, it's just that my amended version of the spreadsheet probably won't mean much to anyone else and I would have to spend some time appending explanations to it. I think I'm just a bit wary as I have never been asked for so much detail on the previous tax return before. I'm not sure why he needs it.
Of course you should be willing to supply that information - on payment of your invoice for your standard hourly rate to prepare the information in that format!!!
Otherwise if the new accountant wants that level of details , and I too have no idea why, let them ask the client for the original records!
I didn't prepare accounts, it was a simple sole trader with not many transactions which were already categorised on the spreadsheet. so I just used the what I had been given with a few changes to do the tax return to keep her costs down. Having looked at the spreadsheet it's actually quite clear, I was tidier than I thought I was! But I still can't think of why he would need the information.
I suspect he is asking for the info because there are no accounts and he may well be preparing a retrospective set. Ive seen that done before.
Not sure which governing body you are with, if any, but the ACCA state the following in relation to the computations, backed by case law:-
'Where the members work relates to taxation, the question of ownership will depend on the nature of the work to be done. If the work is of a tax compliance nature, the entire tax file will often be deemed to belong to the client'.
I would suggest, given you dont have to wade through them to add a loads of notes and that they will be fairly self explanatory, that you send them. Would you be ok with doing so?
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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
I'm MAAT. The client has started a ltd company. I don't do Ltd co accounts which is why I suggested she find someone else. I can send them, I'm confident they are right. I just don't like the feeling I'm being checked up on. If I could think of why he would need it I wouldn't be so bothered.
Hi
That explains it as the Accountant has to supply accounts with the CG34 that he will (presumably) be submitting to HMRC to agree the valuation of the goodwill transferred to the Ltd co.
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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
