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Effectively disengaged?

Client submits own accounts

Didn't find your answer?

I'm sure I've read this somewhere on this very board.

A client of ours has not paid us fees for quite some time. As a result, partner has instructed us not to do any further work until the fees are paid.

I've got them on my watchlist, and yesterday discovered the May 2020 accounts which are outstanding (and seriously overdue) have been filed, along with the May 2021 accounts. They appear to have been done most likely on the WebPortal filing service using the Micro template. We haven't been approached by another firm to act. The CT return appears unsubmitted however.

Am I right in thinking that, irrespective of any formal correspondence, my firm has effectively been disengaged?

Replies (9)

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By Paul Crowley
17th Sep 2021 11:50

Disengagement must be formal
You cannot reply to the new agent without client authority to do so
Need to confirm to client that you are no longer acting and request authority to reply to the new agent. I would accept an email as authority
Partners should decide what that says as clearly you did not prepare the last 2 accounts

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Replying to Paul Crowley:
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By Wanderer
17th Sep 2021 11:57

OP says no new agent has been in touch.

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Replying to Wanderer:
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By Paul Crowley
17th Sep 2021 12:37

I must slow my reading down and pay attension
But the position needs to be made clear so OP's firm still needs to send a disengagement letter, in my opinion.

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By David Ex
17th Sep 2021 12:04

thevaliant wrote:

Am I right in thinking that, irrespective of any formal correspondence, my firm has effectively been disengaged?

It appears you’ve been “de facto” disengaged but I personally wouldn’t leave it hanging in the air. Arguably still contractually engaged unless your standard terms deal with the situation.

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Flag of the Soviet Union
By thevaliant
17th Sep 2021 15:30

Thank you all for the replies.

I do agree about the disengagement letter. I'll find out on Monday whether the partner agrees.......

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Replying to thevaliant:
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By Paul Crowley
17th Sep 2021 15:50

If you still have access to the corporation tax on HMRC then the letter should point out what still needs to be done
IE file the corporation tax returns

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By I'msorryIhaven'taclue
17th Sep 2021 20:52

This weekend's background task is to figure out the best way to go about introducing a time lapse clause into LofEs. Too many slackers who've either stopped paying regularly or stopped responding altogether. Cut-off!

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RedFive
By RedFive
18th Sep 2021 15:53

I have;

DISENGAGEMENT

18. Should we resign or be requested to resign a disengagement letter will be issued to ensure that our respective responsibilities are clear.

19. Should we have no contact with you for a period of 3 months or more we may issue a disengagement letter and hence cease to act.

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Replying to RedFive:
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By Andy Reeves
05th Oct 2021 10:12

Not sure that helps. You could already issue a disengagement letter at any time you choose, and for any reason you want to.

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