Hi
I have received clerance letter for a client who is refusing to the pay for the accounting and payroll work done for them. Client is self employed. I have contacted my relevant body (ACCA) and have been advised that i should only supply the minimum information which is last accounts prepared and a trial balance and that i should seek legal advice regarding remaining information. I wanted to find out if i can hold the payroll information until i receive a payment. Thanks in advance
Replies (11)
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Are you seeking your legal advice here?
Withholding payroll information would be a very aggressive stance to take.
Standard for a payroll bureau; why should accountants be any different?
Withholding info is the only leverage available. If that's aggressive, so be it. Not paying your bill is a pretty aggressive stance!
Standard for a payroll bureau; why should accountants be any different?
Because most professional accountants behave in a professional manner. I would never consider withholding records or information that would cause a(n ex-)client to be unable to function properly and/or meet their statutory obligations.
I don't think that scaring the ex-client into paying by risking them [***] up their innocent employees' tax is very professional or morally defensible.
If your case is solid why not just go through the Moneyclaim Online route? Far less emotional and generally gives you the same outcome without showing yourself as a total [***].
Is this the same client that did not trust your tax return workings? Have your taken legal action etc yet?
I don't know the full facts but agree with Cooper. If you have done the work you need to get paid. I probably would not have sent the accounts though.
Have they paid for the payroll?
I'm not sure about the legal position, but ethically I think payroll is the one piece of information I wouldn't withhold. The problem is that withholding payroll doesn't just screw the ex-client, it screws their entirely blameless employees.
1. Disengage to stop yourself running up any more cost.
2. Send what info they need to pick up there obligations (Inc payroll info, vat return to point of disengagement)
3. Sue and keep going