hello all
Without going into the knitty gritty of details, I wanted to know if a new accountant can start acting for his/her client's even though the previous accountant is being difficult and not supplying professional clearance to the new one. As such there is no known 'issues' in the professional relationship, just the fact that a qualified accountant is being unprofessional and this post is going here after months of polite chasing. Any advice shall be much appreciated. Thanks
Replies (6)
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There is no such thing as "professional clearance". It might be a useful term to use to describe the letter sent to previous agents, but you certainly don't need clearance from them. The letter simply asks if they are aware of any reason why you shouldn't act. Given that they haven't told you of any, then there is nothing stopping you acting, provided that your other checks - ML etc - are OK.
As to getting the information that you need, that will depend on what the client has. Copies of accounts should be a given, and many accountants supply a copy of a tax return. You can ask HMRC for a copy of a return if you don't have one. The rest you'll just have to work out for yourself. It's generally quite possible to work out the opening balance sheet from subsequent transactions and a bit of guesswork.
If I don't get a reply to a second reminder, I give up and set about it with what I have
Has your Guy Paid the Previous Accountant
Usually the reason the previous agent will delay sending Info is that they have not been paid and are using that as leverage. Tell your client to go and see him with a view to coming away the information you need.You might want to ask for some money up front on fees as if he hasnt paid the previous guy there is a chance he wont pay you. Failing that do what cloudcounter says and just get on with the job, certainly dont wait months to hear.
Interesting spelling
Spelling it KNITTY brings a whole new meaning to it, but I fear it is incorrect.
possibly
Whether that spelling of nitty/knitty is incorrect is what a client of mine would describe as a mute point
Complaints
Funny, brings back memories of days gone by when the partner of the firm I was employed by was signing a letter he had dictated. He told the typist she had wrongly spelled 'mute point' as moot point. I tried to tell him she was right but seniority rules.
Anyway
Under accountant's lien an accountant may refuse to hand over books on which he has worked if he has not been paid for that work. Clients often argue about this rule, bur as the deadline for filing approaches with £100 automatic penalty for 1 day late, and others to follow, including possible supervision of accounts, they usually see sense, and pay their debt.
Only once have I had another accountant go ahead and file a client's return under these circumstances, and she was not paid either.