How far can you go to extract unpaid fees

Can I use confidential information in court to obtain unpaid fees

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Relationship with client is breaking down as we can't persuade them to run their business properly. They have admitted pocketing much of the sales and have no intention of paying tax and won't submit VAT returns. I suspect they will soon be wound up by HMRC so I'm wondering whether I could use this admission to extract unpaid fees directly from the director/shareholder via the courts? Its pretty obvious that this is the case as cost of sales exceeds sales and another client has purchased goods from them and not been charged VAT!!

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By Accountant A
03rd Jan 2018 18:09

Two entirely separate issues. If client owes you money, you need to prove the client owes you money. If you suspect "suspicious activity" presumably you have already submitted a SAR and mentioning it anywhere, including a court, could potentially be tipping off.

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Replying to Accountant A:
Small Dog's RAT Return
By Oldmanwetmix
04th Jan 2018 22:03

I would think there is a difference between stating in court that director has admitted pocketing the company's money and therefore should make good the lack of funds to pay creditors, and stating in court that a SAR has been made.

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Replying to Oldmanwetmix:
David Winch
By David Winch
04th Jan 2018 22:17

Yes indeed. What you should avoid doing is stating that a SAR has been made. You can however refer to the client's improper conduct without saying that you have filed a report about it.
David

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RLI
By lionofludesch
03rd Jan 2018 18:12

@ OP

Er - no.

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David Winch
By David Winch
03rd Jan 2018 19:08

Presumably you have already submitted a Suspicious Activity Report to the NCA. But do not disclose this to the client or the court.
I would say the relationship has broken down - not "is breaking down".
David

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Oaklea
By Chris.Mann
04th Jan 2018 10:59

Although we'd all prefer to recover our time and therefore fees, in the course of our business dealings, one thing must remain paramount, without exception. Our professional approach to our duties.
As other have remarked, your first reaction should have been to assess whether the appropriate report should be made under the Money Laundering Regulations. Only you know whether such a report is necessary and, that is your responsibility.
If you are owed fees, which have already been notified to your client then in that situation, your only course of action is professional recovery, via the usual channels.
There is a distinction between; how we would like to react and, how, we actually react.

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Replying to Chris.Mann:
Small Dog's RAT Return
By Oldmanwetmix
04th Jan 2018 22:04

Of course maintaining professional standards is essential, my point was rather whether I could use information gained whilst acting for the client in making a case in court against a director.PS sorry if I unthanked some-one, can't quite work out those buttons.

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Portia profile image
By Portia Nina Levin
04th Jan 2018 11:02

Have you thought about paying the chap a visit with a baseball bat?

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Replying to Portia Nina Levin:
paddle steamer
By DJKL
04th Jan 2018 22:10

Whats your process re this, first offence one kneecap, second offence both kneecaps, third offence the baseball bat with the nails in it?

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Replying to DJKL:
Portia profile image
By Portia Nina Levin
05th Jan 2018 10:24

Well one would have to operate a zero-tolerance policy, whilst still allowing the individual the ability to earn their crust, so that they can carry on paying the fees.

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By KH
09th Jan 2018 15:01

One technique I once employed, at the suggestion of my then business partner, was to send my business partner's mates round for a cup of coffee ... so these three Brummy hell's angels called round to the offending non-payer, invited themselves in, and then sat ever so politely on his sofa till he came back from the bank with the money he owed me. I've never had to use this technique again....

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By JDBENJAMIN
09th Jan 2018 20:43

That is blackmail. You should either make a SAR or not, according to the facts of their behaviour. Whether they pay you is irrelevant to that.

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