Implicit accounts approval

Would you submit in this basis

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31 Dec 17 YE, filing deadline is today (ok, Sunday, but as good as). We’ve sent the client the accounts & CT600 (amongst other items) as one package through VirtualCabinet, so I can see that he’s read both items. 

 

However, for whatever reason, he has only signed the CT600, not the accounts. This was last week, since then there’s been multiple emails, phone calls & texts to try and contact him, stating the deadline and what he needs to do, also the option of extending the deadline  

Would you:

1. Accept his approval of the tax return as implied approval of the accounts and submit them. 

2. Shortened the year-end to give you/him more time. 

3. Continue to chase, but ultimately do nothing as it’s in his court. 

I’m leaning towards #3, but interested to hear other people’s views. 

Thanks 

Replies (12)

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By Cloudcounter
28th Sep 2018 08:38

I'd go for #1. The accounts are an integral part of the tax return and the net profit is clearly stated in the computations. He would surely not have approved the tax return if he didn't agree the accounts.

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Accountants & Business Advisers
By Gladstone
28th Sep 2018 09:28

I'd also go with option #1 as it is likely that he assumed that tax return is the only document to sign. This is usually evident when Client is asked for the first year sign-off ie first set of returns for him/her.

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By ireallyshouldknowthisbut
28th Sep 2018 09:53

Depends very much on the client.

Some of mine would thank me warmly for filing it on time.
Others would be aghast
Some just need a well timed kick in the [***], and this might be just the ticket.

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By andy.partridge
28th Sep 2018 09:58

I would plump for 1. but only on the basis that the client has seen the the tax comp - ie. documentation that would provide the bridge between the accounts and tax numbers.

Additionally I would inform the client that I intend to do so and that they should let me know as a matter of urgency if this was not their wish.

(Also, I would still chase the signature afterwards on the pretext that 'you' and your processes might be audited.)

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By JCresswellTax
28th Sep 2018 10:01

Another vote for #1

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By adam.arca
28th Sep 2018 13:32

Bucking the trend here but I'd go option 3.

The client has already been chased multiple times by the sounds of it, so what was the point of that if implied acceptance is now assumed? Also, legally, the CTR can't exist until the accounts exist and the accounts don't technically exist until they're approved in general meeting. And lastly, a tax return (regardless of the fact that it picks up the turnover and profit) is way too far removed from a set of accounts in look and feel for it to be safely assumed that signing one equates to signing the other. All in my opinion, of course.

Just to be clear, I don't try to be a pedantic old fart and there are times when I do go with assumed consent but this isn't one of them for me.

I also try to avoid this situation where the client doesn't sign the correct doc by only sending them one thing at a time where possible. Sometimes have to send the abbs with the approval accounts but would never personally send the CTR at the same time as the approvals.

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blue sheep
By NH
30th Sep 2018 13:19

1 of course

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By MartinJG
30th Sep 2018 14:34

Option 3 for me.

I have posted a question this morning covering similar ground.

You have sent multiple reminders. Presumably you have informed that there will be a fine of £150 for late submission which increases after a period 3 months. Why has he ignored you? One can only speculate but be careful about taking responsibility and the legal implications. I am afraid there is a growing trend in this. It is the director's responsibility to sign off a set of accounts. If he is not happy with them, he should raise this with the accountant. Presumably, you have given him plenty of opportunity to raise any queries. My advice is to stick to your guns and remind yourself of your professional obligations. Why take a bullet for a bad client when you have good ones to look after.

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ALISK
By atleastisoundknowledgable...
30th Sep 2018 16:04

Thanks for all of your replies.

I went for #3 in the end.

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Replying to atleastisoundknowledgable...:
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By andy.partridge
02nd Oct 2018 12:08

The punishment option. The client will be ecstatic, assuming they are a [***].

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Replying to andy.partridge:
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By andy.partridge
02nd Oct 2018 12:20

Just for clarity, the word I used was m a s o c h i s t.

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By Jack the Lad
02nd Oct 2018 11:36

Sorry, I do NOT agree with #3, satisfying though that may be!

I agree with Andy Partridge: approval of the accounts is implied, so you should have filed. You can chase for signed accounts afterwards -- at least your hands will be clean.

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