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.
- Where is Section 809 of ITA 2007? 157 6
- Goodwill and the Summer 2015 Budget 403 4
- Self Assessment - income for US property 42 2
- ACCA Special Business Resolutions... 333 4
- Just another average day trying to deal with HMRC 756 7
- Laptop help needed I bought the wrong operating system 275 8
- Copies of every transaction can't be OK!! 1,166 12
- Time to ditch Sage? 598 10
- Accounting Web - What is happening? 2,057 47
- Do you use commercial software for Self Assessment tax returns? 646 21
- Seafarer's Earnings Deduction 228 2
- HMRC Post 733 10
- Star v Sage for bureau payroll work 88 2
- www.pool.adzio 293 4
- Losses carry forward to self employed 368 6
- First director's salary payment 3 months after ltd company formation 403 6
- The Higgs Decision 473 5
- Selling Business 161 1
- Freelance/Employee 777 18
- FHL - hedge purchase 190 2
- Chart of account segments; Balance sheet vs P&L 776
- Any knowledge of salesorder.com 423
- Could and would anyone here carry out a hot file review of some non statutory audit work please? 376
- Electric Car 313
- S222 Charge 258
- Corporation tax penalties and fines on the CT600 226
- IP trans to holding company 205
- Software to Deal with Amazon and Ebay Sales 196
- AIA 193
- Best way to convert Sage data to VT Transaction+ 190