Destroying ex-client records?

Destroying ex-client records?

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I picked up a client over 12 months ago that had the usual sob story about why they had 5 years tax returns outstanding...obvously this was a full fee up front before we would start the work and to no surprise the client kept promising he would be in with the some of the money and that if we could just start the work he would have us squared up in no time.

I sent them a letter in January to disengage and request they collect their records.  I havent heard anything back so I need to know what my options are for getting rid of them?  Can I give them a deadline of 90 days to collect them and then securely shred them?  Sadly, there is nothing in our LOE about this but I will be adding something in there if possible.

Replies (7)

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By HeavyMetalMike
16th Mar 2015 11:40

Oh dear. The good news is that you didn't do a full years fee with those promises. I assume.

The bad news, and this assumes he has signed eng letter and so is a client, I reckon you've got t hold on their records for 6 ish years after ceasing to be a client? I think.

So rent-free storage too you have to provide.

 

Drop them at their house/business premises?

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By mgandc
16th Mar 2015 13:21

How big are the records?

Is there much to them in terms of size/weight?

Can you send registered post/courier to the latest address you hold?

I don't see that you can shred them but getting rid of them probably sounds good

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By Moonbeam
16th Mar 2015 17:26

So the moral of this tale is..

Presumably refuse to keep paperwork until have received hard cash.

It's a good story to help me personally pause and reflect.

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By Melody
16th Mar 2015 18:18

Scare them!

Tell them you'll have to archive their records if they don't collect them in ....... days, and then it will take up to 1month to retrieve them when he is ready to get his tax return done, for which they'll need the records.

This could cost them up to £600 extra in late filing penalties to HMRC before interest on any tax due (assume they'll be in the £10 per day window and then tip into the over 6 months period), plus of course your (suitably inflated) storage fee of £ ...... !

You can egg it further if you like by adding extra stuff about how implacable HMRC is, both in getting its payments and penalties and also the consequences to the would-be client if they don't collect these records but try to do an estimated tax return without these records and do not have them available if HMRC decides to investigate them.

At least you'll enjoy writing the letter!

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By User deleted
16th Mar 2015 18:47

Scare them more

Tell them that you don't have the storage space and unless they arrange to pick them up within 14 days you'll dispose of them securely. 

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By ShirleyM
16th Mar 2015 18:52

I'd just send the records back by post/courier

Without a return address!

It would be worth the cost to get rid.

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By mrme89
16th Mar 2015 19:37

Scare them...

Sounds like the type of client that wouldn't give a toss what you did with the records.

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