I recently binned off a client who turn out are basically a bunch of crooks. 3 director’s originally but the main director resigned as a director and transferred his shares to the other directors as the child maintenance were chasing him and he didn’t want to pay anything! Lovely chap!
Anyway, disengagement letter sent and its been signed by the ex-director. The wording is as follows:
Signed………………………
For and on behalf of
A Bunch of Crooks Ltd
I want this off my desk but should I request that someone authorised to sign on behalf of the company do so?
Thanks.
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Replies (17)
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i wouldn't split hairs, you've disengaged, move on
the ex director is clearly still there and accessing company documents, so I'd say you've done what you can here
You don't have to get a client's agreement to disengage.
And what if you don't get another copy back signed by a current officer?
I'd just move on.
We dont ask ex-clients to sign dis-engagement letter so may be in future you could slightly re-word the letter so you dont need to either.
The ex-director's signature if worthless when you know he no longer has authority, but as others have said a clearly worded document to someone in authority doesn't demand a response.
If you are a concerned send your letter recorded delivery (or whatever they call it now).
If you resign appointment you do not need approval from the client.
Notwithstanding, be careful, ensure that you have a carefully written "Attendance note" setting out your reasons for resigning. Also, consider whether you are on the Money Laundering hook.
If you have resigned because you think they are "A bunch of crooks" you infer that indeed a Money Laundering report is to be filed.
If you receive the usual professional letter from a successor firm of accountants, carefully consider your reply.
It is not unknown for "Unco-operative" clients to blame their woes on the previous accountant.
It may be worthwhile flying the details past your PI insurer, just in case.
If you resign appointment you do not need approval from the client.
Notwithstanding, be careful, ensure that you have a carefully written "Attendance note" setting out your reasons for resigning. Also, consider whether you are on the Money Laundering hook.
If you have resigned because you think they are "A bunch of crooks" you infer that indeed a Money Laundering report is to be filed.
If you receive the usual professional letter from a successor firm of accountants, carefully consider your reply.
It is not unknown for "Unco-operative" clients to blame their woes on the previous accountant.
It may be worthwhile flying the details past your PI insurer, just in case.
Personally, a company named A Bunch of Crooks Ltd would have caused me to think twice before acting.
Last time I asked a shepherd if he was shearing that sheep, he told me no, and to go get my own.
Last time I asked a Welshman if he was shearing that sheep he told me that his love life was none of my business.
We never ask a client to sign a disengagement letter.
We just send it and tell them we are no longer acting, exactly what has been done to date and tell them to find a new accountant.
Just keeps it simple.
Sadly because of today's PC brigade your quite humorous answers miss the point.
In these matters the money laundering rules do have an impact. Read the rules.
A true story
23 years ago a (Soon to be ex) client came into my office to sign his ITR. I told him that his desired entry for CGT was wrong. He just insisted on his version of the rules.
HMRC picked this up and he was fined £3,000. He sued me for the £3,000, saying that I should not have let him submit the return.
My PI insurers paid up. I was furious. They patiently explained to me that if they fought the case it would cost them more. As it is the guy's solicitors copped £9,000 fees and costs.
Never underestimate the power of a person to be vindictive in these circumstances.
PS
I still use the same PI company. (Gawd bless'em) They have never penalised me for clients' shortcomings over the years.
So despite you being an FCCA (or maybe you were an office junior 23 years ago) the client was sufficiently qualified to instruct you that you were wrong and you went ahead and filed a tax return you believed to be wrong and was subsequently proven to be wrong.
Isn't that just asking for trouble?
Dear Andypartridge
No, things are not that simple.
It was to do with the value and timing of sale of shares of a private company.
The information on the return was correct. The client believed, insisted, he would not be liable to tax. I told him that if he did it that way, he might be liable.
If I had done what you said, my IP provider, HMRC, et al would have amputated my private parts.
As it was, my IP provider commented, exact words engraved on my memory, "These things happen, don't worry".
