Getting hassle from client

Getting hassle from client

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I have a bit of a stressful situation!

I took on a client in 2012 who had started trading in 2007 but never declared a penny despite being '000s over the VAT threshold - to cut a long story short I prepared accounts for him for 2007-2012 but despite me completing the tax returns he has never given me the OK to submit them.

He also wanted a limited company set up to go forward which I did for him but he never used it - the company has now been struck off but he now says he has signed up for a new contract under the company name so he wants it undissolved!

I have chased him so many times to get everything filed but he just continues trading, never having declared anything and well over the VAT threshold.

He has emailed me this week to say he wants copies of all accounts prepared, all workings, details of everything he's paid me plus the company undissolved otherwise he will take further action!

I must admit with my wife having just come out of intensive care this is the last thing I need so just wondered if any members could advise on the best way to handle it...

Replies (6)

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By ShirleyM
08th Jul 2015 07:49

What further action?

Personally I would call his bluff.

A bit late in the day for this question, but why did you form the company in the first place? I refuse to form a company for anyone unless I am convinced they will keep good records and keep up to date with filings.

Send him the accounts you prepared and copies of your invoices (ignore the company restoration) along with a disengagement letter.

File a SAR regarding the VAT and for trading without disclosing the income.

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By cheekychappy
08th Jul 2015 08:11

Disengage and get your blood pressure back to normal. This is one numpty you could do without by the sounds of things.

Stress like this can build up over time but getting rid will feel like a big weight is off your shoulders.

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By ireallyshouldknowthisbut
08th Jul 2015 08:47

.

Agreed.  Sounds like you have been paid, be gone foul beast.  

I cant think he wants your workings unless he is off anyway. 

 

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Universe
By SteveOH
08th Jul 2015 08:51

I echo the above

I'm sorry to hear about your wife.I wish her well. It makes you realise what are the important things in life to worry about. You certainly don't need to spend any more time with this particular client.

In a polite way, just tell him to take a running jump. Say that you no longer wish to act for him and set out in a disengagement letter the work that you have completed for him and mention that Tax Returns were not filed as no authority had been received. You should also mention that the limited company was struck off the register due to inaction on his part.

Make sure that the disengagement letter is courteous and professional but still gives the reasons for no longer acting for him. Make no mention, of course, of you filing a Suspicious Activity Report.

I never understand why we, as accountants, seem to have such a reluctance to stop acting for awkward or dishonest clients. I'm sure there are never any similar questions on solicitors' blogs. They just get rid.

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By JCresswellTax
08th Jul 2015 09:50

Agree with the above advice

In your disengagement letter, I would also mention the advice you have provided in terms of getting up to date and paying what he is owed.  Also to mention that you advised him to register for VAT.

You do not want anyone coming back to you and trying to claim you never advised him of these things.

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By refs8
08th Jul 2015 12:36

Important of good files and documentation

Often these are bullies and think they can get away with it. Stand up to him, but the important thing is good files and documents to back it up. File notes of meetings, copies of letters etc.,

If you have these then just sit back and "enjoy" getting rid of him.

I once returned a hairdresser her books and records "personally" when she called me a "muppet" - it was a personal visit to resign, in the middle of her busy salon !

Hope you wife is getting better

 

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