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Accountant gone AWOL

Accountant gone AWOL

One of my recent client is having real problems getting hold of his previous accountant to get all his paperwork back. 

The clients total  VAT reclaim on his purchases was disallowed since he did not produce evidence of purchase invoice for a van.

The client has tried contacting the accountant several times. The client knows that the accountant is abroad doing some charity work. He does not know when the accountant will be back. It has now been a two months.

I wrote to HMRC explaning the situation. No response on this.

HMRC are chasing (debt collectors) the client for the full VAT on his sales without deduction for purchases. He explained the situation to them. They just advised him to change accountants.

What can be done

- Get HMRC off the client's back for a month or so?

- If clients is not able to get the documentation from the previous accountant on time.

Thanks

Replies

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21st Mar 2011 15:36

Copy

Get a copy invoice from whoever supplied the van.

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21st Mar 2011 16:51

Cynical

Your new client may be totally honest and upfront with you, but I would be wary, as I tend to take criticisms of previous accountants with a pinch of salt if all I have is one persons 'say so'.

A reasonably good accountant would not go abroad (for any reason) for 2 months without returning client records, or having someone in the office to oversee the office admin and handle the odd emergency requirement.

Are you sure you haven't been sold a 'pup' and there is no invoice (under the counter sale?).

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21st Mar 2011 18:10

Called previous accountant several times

Thanks for the response.

Shirely over the past week I called the previous Accountant several times, there was no response. Though I do not know if he had informed his clients of his leave.

I may be being naive. So far client's story checks out.

 

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21st Mar 2011 18:23

.

A reasonably good accountant would not go abroad (for any reason) for 2 months without returning client records, or having someone in the office to oversee the office admin and handle the odd emergency requirement.

 

Posted by ShirleyM on Mon, 21/03/2011 - 16:51

 

Sometimes things happen - after all I went out of circulsation for a couple of months without warning anyone - having a heart attack kind of stops you thinking about work :)

I also came accross a case, many years ago, of an accountant who went abroad (back "home" to Nigeria) and it later transpired that he had been obtaining VAT and Tax refunds for his clients, pocketting the refunds, then "disappeared".

I agree with you, however, I'd be cynical.  Far more likely there never was any paperwork for the van.

 

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21st Mar 2011 20:17

More to it than has been explained

"The clients total  VAT reclaim on his purchases was disallowed since he did not produce evidence of purchase invoice for a van."

There's a lot of information missing.

Why would there be any VAT on inputs disallowed unless HMRC had asked for evidence? How much VAT are we talking about?

How long as this been going on for? 

He's changed accountants. Can't you send a 64-8, fax a copy when you phone them and ask for time to sort things out. As CD says, getting a copy of the van invoice should solve the problem.

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22nd Mar 2011 09:40

I agree, ask for a copy invoice from supplier.

Anthony

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