Having spent a while browisng various threads on this I had to post a question myself on this.
I recently disengaged a client I've had for a 2 years. Reasons for this were failing to pay my bills, initially struggled to VAT Register the client despite the turnover. On registering only one VAT quarter was submitted, the following two were ignored and no information was supplied to me and they remain outstanding. Both VAT & large Self Assessment bills are outstanding, due to the sums outstanding the client has mentioned bankruptcy and limited company formation, plus other personal debts are involved. The relationship was always good despite the above, and I did my best to help the client during the 2 years but really could not be bothered with the hassle chasing a client which did not care about their own affairs.
On disengagement the client fortunatly paid me the next day (leaving me in shock!). A few weeks on I receive a Professional Clearance letter in the post today for this client from an ICAEW registered firm. No signed authority from the client yet however.
So how do I inform the firm of the 'circumstances that we need to be aware of' without leaving myself open to things like slander, yet giving them the courtsey of knowing how much of a headache this client will be for them.
Do I obtain authority to release the information, and call the new accountant informally giving him a background then forward the paperwork? Speak to my professsional body? Or forward the information and not comment?