Long story short - I recently took over a client who's previous accountant has suffered a very bad illness. Its come to light that he has had an investigation ongoing with HMRC for 2+ years. Its clear that this previous accountant did a royal F up on the lot. Thing is HMRC are saying that they dont care as its the clients due care to do their own taxes. I am well aware of this but the extent of the damage done is horrific. This investigation has given me such brain fuzz that I cant think straight - I barely got any records out of previous accountant and it seems most was destroyed/shredded.
Am I correct in thinking I will not be help liable for any wrongdoing on this investigation - its not like I produced the worng info. I know the client will be gratefully effected - am I right in thinking they can sue this accountant?
Lastly - HMRC are requesting proof of various gift payments from relatives. We provided them with the transfer/statement of the monies but they now are requesting the family members bank statements for three months prior - can they do this? It seems to me a witch hunt to be fair but as many of you are aware HMRC are like a pack of wolves.
Any advice will be appreciated