Self employment

Self employment

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One of my clients is a self employed commission agent

One of the companies who use his services have insisted on seeing his accounts and need  to ensure that his tax affairs are up to date

He is reluctant to produce his accounts as it will show details of transactions with other companies and they are not prepared to accept a letter from us as his accountant that his tax affairs are up to date

As a sole trader he is not obliged to produce his accounts to a third party but the company is very persistent.

What should my client do?

Replies (4)

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By cymraeg_draig
25th Oct 2010 17:58

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Write to them pointing out that due to Data Protection issues you are unable to supply the information requested and stating that his affairs are in order etc.  If they refuse to accept your word for it challenge them. Ask them are they implying that you are lying in some way and if so would they care to say so in writing.

This sounds like some pompous jobsworth at the company, Find out who he/she is and who their boss is - sometimes you need to deal with the organ grinder - not the monkey.

 

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By Trevor Scott
25th Oct 2010 19:47

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Perhaps your client could consider offering to show his confidential and private financial information (ie summarised accounts/tax returns and tax statements) to the said company’s own accountants/auditors who could independently confirm that his affairs are up to date.

Otherwise I would ask for the person's reasoning in requesting the information so that you may better understand their concerns and therefore work with them to find a resolution. I wouldn’t get difficult with the company, even if the guy is an idiot, the business may be lost.

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By Tosie
26th Oct 2010 09:13

status

Could it be that they are worried about his status as self employed.?

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By Roland195
26th Oct 2010 09:36

What would the accounts prove anyway?

Supposing you show them a set of accounts, who is to say that they :-

1. Present a True & Fair view

2. Have been used as a basis for a SA return

3. Said SA return has been submitted to HMRC 

Therefore, sending the accounts will not prove his tax affairs are up to date. 

I suspect this is a just a misguided attempt to get supprting evidence for any employment status disputes with HMRC in the future but equally could be an excuse to get a look at the accounts for other purposes - perhaps they want to see how much your client is earning.

 

 

 

 

 

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