Exiting client and new agent ignoring us

Exiting client and new agent ignoring us

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We had a client who we prepared SA for 05 April 2011 for and even thought we made him aware of vat threshold he stated no need, we list bank and turnover meant should have registered 18 months ago.

They were advised of this and obviously not answer wanted to hear went elsewhere.

Now new agent and client ignoring or details of this.

Question is. As think they will adjust fIgures to suit , should I inform HMRC? Should I actually give it any thought at all as no longer our client

Replies (8)

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By vince8
31st Aug 2012 09:06

No longer acting but

Did you issue a disengagement letter which could have included your views on VAT? I use one to make clear that I will not be responsible for any future work or anything that crops up with earlier years. I would also use it to highlight any current issues unresolved and a reminder of any impending time limits. You could still issue one now to highlight your concern. 

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By ShirleyM
31st Aug 2012 09:26

Send a disengagement letter

Confirm the services completed, and the services still outstanding (eg. VAT Registration).

If you are really sure that the VAT registration won't be made, then make a SOCA report but do not contact HMRC, otherwise leave them to get on with it as it isn't your problem anymore.

I am pretty sure HMRC will pick up on the turnover, unless they fiddle the turnover, and that is whole different ball game.

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By zarathustra
31st Aug 2012 09:35

Why make things difficult for yourself?
There has been no crime committed that you are aware of.

Plenty more clients out there.

Just get on with life. Let the new agent worry about them.

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By The Black Knight
04th Sep 2012 11:20

Crime - VAT?

It's Vat, thought all VAT defaults were potentially criminal.

SOCA/HMRC might actually be interested as there has been an amnesty.??

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By teresaweezer
04th Sep 2012 11:33

Why make things difficult for yourself?

I agree with zarathustra - I had a very similar situation, my colleague called the VAT office and they didnt seem particularly interested, saying it would get picked up when the accounts are filed.

It is up to the new accountant to deal with it as they wish - make of that what you will!

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By Michaelr205
04th Sep 2012 11:46

Exiting client and new agent ignoring us

If you have reason to believe that HMRC won't be correctly informed then it is a case for SOCA.

You have no choice in this.

Consider also if/when they eventually get caught, you will probably be implicated.

disengagement letter (optional) together with SOCA report (mandatory) is the best route to take but remember the rules re "tipping off".

Sometimes it feels like the 1 or 2% of problem clients completely overshadow the rest!

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By David Gordon FCCA
04th Sep 2012 12:11

not your problem
As said it is not your problem if your records are in order. I am not sure about SOCA. Technically there has been no concealment of income.What client has done is not register. That is client's responsibility and may not be delegated to the accountant. If you advised him you did your job, end of story.
If the successor accountant is a member of one of the recognised accounting bodies, a note to that organisation would be in order, and appropriate. Nevertheless confine yourself to the Professional behaviour issue, how the client behaves is no longer your concern.
I do understand you feeling peeved, but it happens.

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By mydoghasfleas
04th Sep 2012 12:46

How do you know?

"Now new agent and client ignoring or details of this."

How do you know the new agent is ignoring this.  Did the new accountant ask for clearance?  Did you mention the non-registration?

A SOCA report is probably appropriate now because of your suspicion but you should consider the reasons for your suspicions.  Are you thinking, the client went due to my insistence about VAT, therefore the new accountant has lower standards than me"? 

 

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