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