Briefly the facts are -
- Client (sub-contractor) subjected to a routine s9 investigation.
- We ask the client to return his prime records (basically a box of receipts + bank statements) to allow us to double check eveything and submit them to HMRC.
- Client returns his records to us, and it quickly becomes apparent that he did not give us everything the first time.
- In the box we discover several sales invoices with receipts for raw materials stapled to them which were not there when we originally had his records. All are to private householders (as opposed to his normal sub-contract work) and all appear to have been paid in cash.
- A quick check indicates that he has done several "cash jobs" which he didnt disclose when we did the accounts/return and his tax liability has therefore been understated by circa £4k+. Obviously this raises doubts in our minds about previous years too.
- I tackle him about this, he demands that I return his records to him (no doubt intending to "lose" the documents he mistakenly gave us). Obviously I refuse.
- The next day he telephones again demanding his papers and saying that he has a "friend" who is an accountant and who will be taking over his affairs.
- We then receive a hand delivered clearance letter (pushed through the door and not even in an envelope) demanding all his records, all our working papers, etc. from someone purporting to be an "accountant" but quoting no qualifications, and who does not appear on any institute membership list that I can find.
- I write back politely pointing out that his new client owes a considerable bill, that our duty is to forward his prime records to HMRC as requested, and that he should know that he has no entitlement to our working papers.
- Today another letter was hand delivered by this "accountant". It is highly offensive, it would be funny if it was not so infantile, and, it is also quite threatening in both tone and content.
What would your next move be?