Any risk factors I should be aware or?

Any risk factors I should be aware or?

Didn't find your answer?

Im new to this..................I would appreciate your advice.

I've been approached by a client who is a sole trader to do his tax and accounts work. The client seems really nice and has been very upfront about the fact that he has a bankruptcy petition looming. What should I be aware of if I accept this engagement (other than putting him on DD)?

He presumably has losses from his previous business which may be used.

I guess he can't be a director so incorporating may not be an option for tax planning.

He's not taking any credit, assume he wouldnt get credit from anyone anyway now.

Is there any reason to walk away? (Im waiting on the professional clearance from previous advisor, assuming for now that will be ok)

Will be interested to hear your thoughts!

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By Tosie
23rd Aug 2011 21:39

nightmare

If he is declared bankrupt you cannot act or receive any fees. All his assets and liabilities become under the control of the official receiver. you just end up answering letters from the official receiver. I would wait to see if he is indeed declared bankrupt before getting involved.

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By sheffieldaccountant
24th Aug 2011 11:09

thank you

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