I have just picked up a new limited company client from another local accountant (AAT).
The client has told them that they wish to leave and to expect the usual professional clearance letter from us. However the accountant has got a bit upset and has pointed to a clause in their letter of engagement to the effect that the engagement automatically renews each year and if they don't give notice within 2 months after their year end date then it automatically renews for a further 12 months. So basically they are tied in for a further year.
I have never come across a firm of accountants include terms like this before. It strikes me that it is unethical but reading through the AAT code of ethics it is silent.
Anyone know if this sort of thing is enforceable?