I have a sole trader and have been given the p&L for year ended Apr17, the net loss doesn't match to the self assesement submission they have sent me. I have added back the depreciation and cant obviously see what the difference could be. Should I go back to the previous accountant to detail it out further? what is the etiquette? Also the sales figure doesn't match to the spreadsheet that the client gave them, again should I question further? Are they obligied to answer any of my questions?
Thanks in advance
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Replies (7)
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They are under no obligation to assist with your work.
Indeed, they could ask you for fees if you ask them to do anything.
They may help and it’s worth asking (nicely) but expect a robust response.
What is the exact year end of the accounts are you looking at?
What self assessment return are you comparing these with?
Politely ask for the reconciliation from sales and the tax comp.
If I received that request from you, chances are I would grit my teeth and send a short email giving a what-I-would-have-considered easy methodology. I would after-the-fact acknowledge that it maybe wasn’t to obvious unless you were me. Or, if I’d done one, I would just send you the info.
Whatever the process, you’ll either have your answer, or can tell the client that the previous accountant is being awkward because nothing matches, which will show you in a better light.
Taking @Wanderer's point a step further if accounts are made up to the end of April, then for a self assessment tax return the 2017/18 return would contain results from the 'April 2017' year end accounts.
I wouldn't be embarrassed about asking. The accountant will most likely have a tax computation showing the movement between the P&L and tax return. If the income is different could there be accruals and reversals or CIS deductions added in?
I don't see any issue in asking, if the adjustments are not obvious (percentages of items included in admin costs, etc)
As a matter of course I ask in my clearance/info request letter for "the latest Tax Return and supporting computations". If I lose a client I send that on without thinking.
I cant see why any professional accountant would refuse to send this information.