I have taken on a new client (referral from an old client). He used to be a director of a company and used the company's accountant to file his tax returns. The company was subject to a buy-out and he has filed his own returns for the last 2 years. He has now asked me to act for him. Do I need to get clearance from his previous accountant.
As I used to work in-house for a partnership getting clearances was never an issue and as I never intended to take on new clients when I left but simply providing a service for the existing partners, I never thought I would need to go down the clearance route for anyone so hadn't given it much thought.
What do the more experienced agents out there think?
Thanks
Replies (6)
Please login or register to join the discussion.
I wouldn't feel the need.
You don't need the outgoing accountant's permission. Clearance is about the transfer of information and I don't think they'll have anything pertinent.
I wouldn't feel the need.
You don't need the outgoing accountant's permission. Clearance is about the transfer of information and I don't think they'll have anything pertinent.
I agree with your conclusion, but not with the part about clearance only being about the transfer of information. It isn't. First and foremost it's about whether there are any professional or other matters about the proposed appointment that the old accountant wants to make the new accountant aware of before the appointment is accepted. Only when the appointment has been accepted do questions about the transfer of information arise.
No clearance is required here for the same reason that you only need clearance from the last accountant, not the one before as well.
First and foremost it's about whether there are any professional or other matters about the proposed appointment that the old accountant wants to make the new accountant aware of before the appointment is accepted.
That's information too, John.
If you came to me, I would ignore the request. Any information I have is out of date and has no bearing on whether or not you should accept the appointment.
It has nothing to do with the behaviour of the previous accountant.
The Professional rule is: You ask for clearance, that's it. One easy letter, with one reminder. You have done what you are supposed to do. Why the need to think about it?
If he/she does not reply, you advise the client, in writing, carry out the ID checks, and get on with the job.
Keep in mind that an adverse reply, or not receiving any reply from a previous accountant, is not a bar to taking on a client. It is a warning about considering taking the client on. Use your judgment, and take advice of your Professional Body and or PI. It is only a free telephone call.
Prudently, attach a brief note to HMRC,with the 64-8, asking if there are any outstanding matters.
My experience is, not very often, but just sufficient occasions to encourage care, one might receive an unwanted response.
Do agree your fee in advance.