Insolvent Client - where do my obligations end? | AccountingWEB

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.

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cymraeg_draig |
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Anonymous |