My new client was a client of Christopher Lunn And Co for many years and HMRC has opened enquiries into a large number of CLAC's ex clients. They have information that they share with newly appointed accountants in piecemeal and am now seeking to go back 10 years. There is no way I can verify whether the information they say they hold is correct. They are also seeking to establish whether my client was negligent in not noticing that the accounts were not correct which I have rebutted. Can we share our experiences without divulging client private details?
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Am I right in remembering that HMRC have seized all the files.
If not will Lunn's not give you access to the old information?
HMRC standard letters
We also have a client affected by this - trouble is HMRC keep sending standard letters which are a little threatening in tone. We have written back to say we have reviewed and there is no declaration required as the Returns are correct, but to no avail, she is still getting letters.
In your case gpyyow you may be best to let HMRC open an enquiry and take it from there.
If they were to open an enquiry and they have siezed the files would they have to disclose them??. If not how could you answer their queries??
CLAC
I have a client formerly with CLAC and I am being asked to re-prepare two years; accounts.
There must be hundreds of clients affected by CLAC who are going to end up with large accountancy fees to hopefully mitigate threatened tax liability. So is everyone taking this lying down or is there some body set up for former clients of Christopher Lunn & Company so that we can at least establish if we need to do this extra work?.
I am not saying if CLAC has done anything wrong, perhaps they haven't but the problem of proving innocence is likely to be costly.
As far as I am aware all Lunn's clients are subject to an ongoing investigation
HMRC doubt the veracity of the returns therefore are asking for new information. This is normal with investigations so I'm not sure what you expect HMRC to do when this doubt occurs. Yes the client has to pay again but that's Lunn's fault and it is to him that any claims for reimbursement should go
We have seen a few of these
clients are being asked to make a disclosure -so they need to go back and rework accounts. In the cases we have seen the new accountants have had great difficultly working out what the original accounts were based on and it appears that some of the expense claims were ficticious.
My take on this is that is depends on the accusation. Where there is fraud/deliberate dishonestly, HMRC can go back 20 years, where the taxpayer is careless then it is 6, otherwise 4 years. So you need to play judge and jury and go from there. In most cases where the client has no financial/accounting/tax knowledge and has fully delegated work to the accountant it would seem that 4 years is acceptable.
One of the things that the Lunn practice seem to have done is inflate the provision for accountancy fees in the accounts. I know that many of my clients have not got a clue about provisions and so actually even something like this is not really clear cut - generally your client accepts your provision and trusts you to have been accruals accounting. Now it is a very different thing if I say to you "Look I will double the provision in the accounts, charge you a bit more, but you will get a massive amount of tax relief", clearly you are involved in dishonsted conduct.
Virtual Tax Support for accountants: www.rossmartin.co.uk
Ouch
I must say having seen a couple of the accounts that CLAC prepared I am not surprised HMRC are sniffing around. My client says he used to take his books in and the accounts took two hours to prepare... c£500000 turnover with no accounting records apart from bank statements.
Company went into solvent liquidation but HMRC are investigating the directors.
C lunn and co
My company has always had a strong trading history and I find it truly devastating that I am meeting with the iquidator this week. I had no background in accounting and simply presented accurate turnover and cost figures to c lunn each year. Hmrc have gone back to year dot and do not appear to care that I have been completely honest, have worked my backside off and provided employment and training
C lunn and co
My company has always had a strong trading history and I find it truly devastating that I am meeting with the iquidator this week. I had no background in accounting and simply presented accurate turnover and cost figures to c lunn each year. Hmrc have gone back to year dot and do not appear to care that I have been completely honest, have worked my backside off and provided employment and training
Old Post
I know this is an old post, but just dealing with a case now.
Have HMRC been helpful in providing CLAC workings or info from files?
Thanks