I recently had a case where I prepared a 2020 Tax Return for a self-employed builder. He complained about the amount of tax he had to pay and I informed him that there were unidentified deposits to his business bank account totalling over £7,000, which I treated as business income as he wasn't able to provide any evidence that they were anything else.
Out of the blue I received a phone call from another accountant asking for professional clearance to "check my workings". I argued that:-
a) I hadn't filed the Return with HMRC and therefore, couldn't give professional clearance because of my concerns over undeclared income.
b) The client hadn't paid my bill as, in his words, he "wanted a second opinion".
Because it was close to the filing deadline I ended up begrudgingly providing my 2020 draft accounts and workings and wrote off my invoice. I'm annoyed that the other accountant took this case on knowing my concerns over the business records and unpaid invoice and wonder whether anyone else feels the same and that I should have witheld the 2020 information. The old chestnut of not being paid not being a reason to provide information is so unfair when work is done in good faith. It didn't help by the new accountant threatening to report me to my institute for not providing information.
Does anyone think that the new accountant was in his right to act as he did or is it just sour grapes on my behalf?