Right of Lien and Payroll Information

Can payroll information be held under right of lien until outstanding invoice is settled

Didn't find your answer?

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)

Please login or register to join the discussion.

By Ruddles
20th Feb 2018 16:53

No

Thanks (0)
avatar
By andy.partridge
20th Feb 2018 17:08

Are you seeking your legal advice here?

Withholding payroll information would be a very aggressive stance to take.

Thanks (0)
Replying to andy.partridge:
avatar
By kamran37
21st Feb 2018 09:41

Not seeking legal advice. Just opinion on the situation.

Thanks (0)
By coops456
21st Feb 2018 05:30

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!

Thanks (1)
Replying to coops456:
By Ruddles
21st Feb 2018 09:25

coops456 wrote:
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.
Thanks (0)
Replying to Ruddles:
avatar
By kamran37
21st Feb 2018 09:45

So what can an accountant do if a client refuses to pay without any valid reason apart from issuing court proceedings.

Thanks (0)
Replying to kamran37:
avatar
By andy.partridge
21st Feb 2018 10:06

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 [***].

Thanks (1)
avatar
By Matrix
21st Feb 2018 07:15

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?

Thanks (0)
Replying to Matrix:
avatar
By kamran37
21st Feb 2018 09:44

Yes the same client and yes have issued county court proceedings. They have not paid for payroll and accounts. I contacted ACCA and was informed that i had to send minimum information which was accounts and a trial balance.

Thanks (0)
avatar
By Jdopus
21st Feb 2018 14:52

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.

Thanks (0)
Replying to Jdopus:
avatar
By WhichTyler
21st Feb 2018 20:36

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

Thanks (0)