I have been an accountant for sole director limited company for a few years. The company activity is IT Consultancy
We have had a good relationship and she seemed someone who was law biding and honest.
Last year, she was told by her client that she would be converted to an employee and relunctantly agreed. We then took steps to close down the company.
Sent her the Final Accounts, Corporation Tax Return and Self Assessment for approval. The amount of tax due came to a surprise to her and told me since she had moved into employment as a much lower income she could not afford it. Obiously she has had taken out all the money from the company and spent it. I said we couldn't close the company until HMRC are paid.
She then contacted me telling me she been advised to complete the DS01. I said HMRC would object. This was a couple months back.
I then received a letter from HMRC last week saying they have objected to striking off the company due to they believe the company owes taxes. We have not filed the Corporation tax as yet as are waiting for the client approval.
I am dismayed she could actually do this. Should I report her ?
I will now have to disengage earlier than scheduled.