Hi guys,
Had a prospective client email to ask if I can assist with residency queries as their current accountant (a bookkeeper) has recommended they get specialist help.
Client has not been resident for over five years but the bookkeeper has only just recommended they look elsewhere. No residence pages have been filed for prior years but it does not impact the tax due.
How much duty of care do you think I have as to informing the client their previous years tax returns are technically wrong? How far would you push the client to amend prior years? My current feeling is that the tax due is correct and is out of scope of my engagement, so move on and my first return will be correct. 2016/17 has already been filed so this is for future tax years. I did mention to the client that I would have expected to see those pages but they brushed it off.
Replies (2)
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My engagement letters state the year of commencement and specifically state that we will not be responsible for earlier years.
That said, I'm my year will be incorrect as a result of a previous error then I would consider it my responsibility to correct the error in order to get the current year right.
If there's no tax implications does it matter?
I would just note it on the file (possibly mention in an e-mail) that I had informed the client & move on.