Advice on self assessment

Advice on self assessment

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I acquired a new client (sole trader) about 6 months ago.  He had 2 years of VAT returns to do plus 14/15 self assessment.  I asked for a copy of 13/14 to review and its nonsense - thousands in sundry expenses plus his drawings in as wages.  He only turns over about £35k.  I want to redo 13/14 and submit 14/15. He clams to have no records (or money for that matter).  I've been asking for months for him to take his bank statements, export in a CSV and analyse the business expenses that way.  This cannot be reconciled in any way to his 13/14 numbers.  I haven't seen anything for 14/15 and we are a week away from the deadline. I'm not working next weekend for a client who wont pay top $ and that I've chased for months.

The problem I have is that while I don't want to let the client down, I cant see anyway to get any decent accounts without some effort from either me or the client.  And these accounts will not be perfect as the client doesn't have ANY receipts but I am willing to use the bank statements but I need the client to sort out which transactions are personal as I have no way of knowing.  He says mice ate his records.  Plausible for 13/14, not so much for 14/15.

Client hasn't responded to emails to meet up etc and I know he wont want to pay more that £200 for his tax return. He's now employed so wont need me beyond 15/16.

What should I do?  I want to walk away but he's actually a nice guy.  I'll feel that I'm letting him down.  However I don't work for free.

Do I ask him to go online and submit 14/15 as an estimated return and fix it later to buy some time? (if and when he can get me some records)

Any thoughts?

Replies (15)

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By cheekychappy
21st Jan 2016 18:40

He's this late already. I'm sure missing another deadline will not phase your client.

 

I think disengaging now is bad timing should he get his [***] in gear in the next day or so. I'd try and help as much as possible (but wouldn't give him special treatment).

 

If he still hasn't got anything together by the 31st, I would disengage then. 

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By User deleted
21st Jan 2016 20:01

Kidding
"He says mice ate his records. Plausible for 13/14 ...".

Plausible?! Seriously?

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Replying to Matrix:
RLI
By lionofludesch
22nd Jan 2016 09:57

Actually

Phil Yaboots wrote:
"He says mice ate his records. Plausible for 13/14 ...". Plausible?! Seriously?

Actually yes.  I've had that here.  They didn't finish the meal but they made a helluva mess.

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By hje
21st Jan 2016 20:05

Disengage

and walk away:

 

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Replying to Auxilia:
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By thomas
22nd Jan 2016 09:42

Nice summary

hje wrote:

and walk away:

 

Nice summary of my dilemma!  I suppose I'm also aware that I don't want someone out there saying xxx Accountants let me down the week before the tax deadline.  I'll see what, if anything comes in today.  I do seem to take ownership of the deadlines and it really bothers me to see clients get fines.

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Replying to the_fishmonger:
RLI
By lionofludesch
22nd Jan 2016 10:25

Preference

thomas wrote:

I do seem to take ownership of the deadlines and it really bothers me to see clients get fines.

It bothers me when clients prefer to pay fines rather than pay me.

Everyone has issues from time to time but the day they get a fine is usually the beginning of the end.

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By vras
21st Jan 2016 20:47

Bad Client

Have you got a letter of engagement signed by him? It should contain fee details, so there can be no disagreement.

Can you get a payment up front? Put it in your letter.

Personally, for £200 for such a case, I would walk away. He will be very nice until you have done the work. See how nice he is when you ask for payment.

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By Paul D Utherone
21st Jan 2016 21:50

Don't beat yourself up over it

You've done all the running, he's done nothing to help himself.

Just disengage and be clear that it is now too late for you to assist him to beat the 2014-15 deadline so he must either do it personally or find someone who's willing to assist at this VERY late stage

 

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By Matrix
21st Jan 2016 22:49

It is his return and not yours, he is aware of the deadline and the penalty.  You don't need to do anything but it is annoying to have these outstanding returns on the list.  Either he will come in with his records and then you can decide what to do or you will never hear from him, in either case you can disengage if you wish. 

I got some records today after a final chaser after no contact for 4 months so you never know.  I have a term in my engagement letters which says that if I don't hear from the client in 6 months then we may issue a disengagement letter or cease to act, not used it yet.

 

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By Tim Vane
21st Jan 2016 23:03

The other problem you have is that you know the 13/14 return to be incorrect, misleading, and completely understating the tax payable (e.g. drawings taken as expenses).

Does this not require you to submit a SAR if the client does not amend the return?

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the sea otter
By memyself-eye
22nd Jan 2016 10:11

Nice guys

"get washed away like the snow and the rain" I forget which song that line comes from but you need to disassociate your feelings from the facts. This man is a pain in the backside. Either get a wedge of money up front and wait for him to wake up or walk away. Simples!

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Replying to 2556950:
Tony s
By Tony S
22nd Jan 2016 10:57

Rhinestone cowboy!

memyself-eye wrote:

"get washed away like the snow and the rain" I forget which song that line comes from but you need to disassociate your feelings from the facts. This man is a pain in the backside. Either get a wedge of money up front and wait for him to wake up or walk away. Simples!

 

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By Zrinka
22nd Jan 2016 13:01

I have a lot of "clients"

I have a lot of "clients" friends calling me now with records only half done.

The best way is to tell them that price goes up when time goes down. Since he is a solo trader what means man in business he will understand.

I am more than happy to work 24/7 to reach the dead line but that cost money 

 

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By ireallyshouldknowthisbut
22nd Jan 2016 13:56

.

"I'm also aware that I don't want someone out there saying xxx Accountants let me down the week before the tax deadline"

Funny I have been putting it out there in my local area that its simply not worth calling me up in January for a return for 2014/15. Which is the reputation I would like to project. Not that I will fit people in at the last gasp.

Seems to be working, that and the big note on my website contact page :)

 

 

 

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Replying to possep:
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By thomas
22nd Jan 2016 17:30

different tho

ireallyshouldknowthisbut wrote:

"I'm also aware that I don't want someone out there saying xxx Accountants let me down the week before the tax deadline"

Funny I have been putting it out there in my local area that its simply not worth calling me up in January for a return for 2014/15. Which is the reputation I would like to project. Not that I will fit people in at the last gasp.

Seems to be working, that and the big note on my website contact page :)

 

 

 

 

I agree with your statement above, however saying XYZ accountants are too busy in Jan to take on new work is wholly different to someone saying XYZ accountants had agreed to do my work but let me down at the last minute.

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