Client not paid - can i legally defer filing documents?

Client not paid - can i legally defer filing...

Didn't find your answer?

I have a client who is a historically bad payer (v late payment, cheques bouncing etc) - I have tried to get him to set up a STO but he won't.

In November I sent his SA returns with a bill for other work as well stating that I would file the returns online once his bill had been settled. (normally I would give a months credit so he did in fact have 2months to pay).

He sent the returns back signed but with no payment - he told me he was sending the signed returns back - I told him again I wanted payment before filing,

In January I emailed him and said that although I had rec'd the returns back I would file them online when I rec'd payment. He responded saying payment would be in my account that week.

2 weeks later still no payment so I emailed again with the same contents of the email.

Consquently I did not file the returns prior to the deadline (though penalties will be voided as no tax to pay ).

On Friday 30th after I had finished work he sent an email asking me to confirm that the reutrns were sent in on time and he would send payment. I then had a 2nd email saying the same this week. I've only just picked these emails up as had a few days off after the 30th!

My question is that can he legally refuse to pay as I haven't filed the returns (even though this was a very small part of the bill) as I did state initially that I would file after payment rec'd (although my bill does state as standard wording it is for filing the returns) aswell. Basically do I have a leg to stand on?

any helpful advice appreciated!
ADP

Replies (6)

Please login or register to join the discussion.

avatar
By AnonymousUser
06th Feb 2009 16:52

Thanks for helpful advice but..........FAO ANON
Quite simple - I normally post under my firms name however my logon details post my name - I posted in two different categories as my question falls across two different categories and simply as I copied and pasted forgot to change the details to my firms name.

Many thanks everyone else for the helpful comments though. The situation has now been sorted satisfactorily however once payment is cleared I will be removing myself as his accountant.

Thanks (0)
avatar
By pawncob
06th Feb 2009 12:40

It seems to me
That you changed the terms of the contract unilaterally half way through.The fact that your client didn't agree to the amended terms means that the previous agreement stands.
If you're going to change the payments terms, you must do so when he doesn't owe you anything.

Thanks (0)
avatar
By User deleted
06th Feb 2009 10:44

Da Ja Vu
Why have you submitted the same question in a different name? Did you not like the answers that you got when you submitted this question as Pauline Street!!!!!

Thanks (0)
avatar
By neileg
06th Feb 2009 10:07

I disagree with Simon
Even if filing the SATR was fundamental to a contract that existed prior to November, that changed in November. Of course the client could challenge the change of terms but would be unlikely to be able to enforce specific performance as a remedy. It appears the the client has not challenged the change in terms, just ignored them.

I have never heard anyone suggests that the relationship between tax advisor and client was one of agent and principal. In the very unlikely event that this could be substantiated, the agent is free to disengage from the relationship unless bound by specific contract terms. We don't know if these exist (but I doubt it) as the usual engagement letter would not include such terms.

Thanks (0)
avatar
By Dave Paveley
05th Feb 2009 23:16

I think..

..you made it clear on several occasions that the terms and conditions of your engagement are that your fees would need to be settled in advance of the filing. No money, no filing.

I think it is your client that doesn't have a leg to stand on.

Hopefully, you have that agreement documented in the emails you have sent and received if not in the letter of engagement itself.

Thanks (0)
avatar
By pawncob
05th Feb 2009 22:18

Hmmmm
It may be a small part of the bill, but it is the raison d'etre.
Your agreement was to complete and submit the return, regardless of whether or not he paid you. The payment is a seperate matter, being the non fulfillment of his part of the contract.
You are acting as agent and take instructions from your principal. If you don't like/won't obey those instructions then you must notify him and give him the chance to undertake the task himself. He can't submit the returns if you've retained them.

Thanks (0)