Insolvent Client - where do my obligations end?
I have a client that I have been doing the book-keeping and the annual accounts for, for the last 3 years. He is notoriously bad at passing over paperwork to bring his books up to date, but over the last 18 months, he became progressively worse. He has not paid any of my fees for the last 18 months / 2 years, but I felt that I could not abandon him when he really needed help. However, now I simply just don't have the time to spend on something that I know will not be paid for.
The client owes a lot of money in tax and I have advised that I think he is insolvent and should seek advise from an Insolvency Practitioner. Due to the above, the accounts are very behind - nearly up to April 2009 year end but still waiting on answers to lots of queries. I believe that as part of the insolvency process, a statement of affairs has to be produced, which needs to detail the financials as they stand now.
My question is this: Do I have an obligation to carry on working on the accounts, knowing that I am not going to be paid for what I have done already, let alone what I would have to do? What happens with the companies accounts that are due at companies house etc if a company is insolvent and seeking voluntary liquidation?
Any advice is appreciated, thank you.
- S.455 Tax again 330 6
- Closing down loss-making company 687 13
- Entrepreneur relief and deduction of Amortisation of Goodwill Pre2002 338 14
- Tips on meals 470 4
- co-operatives & Societies 63 1
- Client gets a penalty and being threatening! 592 7
- HMRC having technical difficulties 1,178 20
- Xerocon 2016 1,462 40
- FHLs and Entrepreneurs Relief 187 4
- Website Content 441 6
- Company restructure - Share valuation, ERS and PAYE 179 3
- Directors in dispute 136 1
- Incorporate to utilise dividend allowance next year? 707 12
- Incorporated company charity 143 2
- property capital gains 338 3
- Taxation of sinking fund contributions 440 5
- Overpaid In Employers NI - RTI EYU for hundreds of employees 430 2
- Director owns 47% of shares in company A and 100% of shares in Company B. Is Company B a participator in Company A for S455 purposes? 265 2
- Stumped - IHT 497 6
- No PAYE Registration but need auto enrolment 596 12