What to do?
New client (partnership) has came to us after many years with old accountant.
the partnership is in the business of lending money on short term loans and making commissions on cashing cheques...you know the type.
Anyway. the client has been reporting £250k business profits every year for a while now.
When we review the debtor book and discuss this with client it is clear that significant debts need to be written off. We have indentified £800k of debts that relate back to many years ago! (bank debt increasing should have been a clue you would have thought).
The accounts for the current year show a loss of £700k!
I beleive that the previous agent was negligible and there may or may not be a report to governing body and / or a PII claim instigated, however I dont wish to get into that just now.
My question is what can we do about this loss?
Does this fit in with the new "overpayment relief" (formerly error or mistake)? Is this a change of accounting policy? Is this a current year write off subject to normal carry back 12 months and carry forward rules?
- Clients 692 15
- Simplified auto enrolment? 180 2
- UK Accountancy Franchise 173 3
- An officer and a gentleman 454 11
- Tax and children 130 1
- ACCA, ACPA, IFA, ICPA 556 8
- Does SMP and SPP go up if leave goes across 2 tax years? 386 16
- Directors obligation to notify 95 1
- Lets hear it for HMRC! 257 2
- Don't HMRC collect CT anymore? 139 1
- Starting new accounting business 329 6
- Leaving the flat rate scheme 155 4
- error on companies house accounts 756 18
- RTI penalties 133 1
- Bookkeeping software for cafe and VAT 168 2
- How do we get US withholding tax back? 320 5
- US Sales Tax 115 1
- Anti- Money Laundering - CIMA Practising Certification Application 205 3
- Group Relief 139 4
- R&D Credits 108 1
- QROP pension input amounts 501
- HMRC BENCHMARK EXPENSES 483
- write off loan or loan to equity swap or both 446
- EPS and CIS deductions 303
- Sole trade business in UK, but the owner works from EU 292
- Construction CIS LLP Company 285
- Stamp duty on house transfer between spouses 250
- SAGE winforecast 205
- LIVE: Budget aftermath webinar 188
- Overdrawn director account 175