Year end

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Dear all 

 

I have inherited a client about 6 months ago.  Despite numerous client clearance requests nothing has been handed over.  Further, the accounts ending 31st May 20 seem to have been filed in 19-20 self-assessment.

 

There are obvious  errors here, and there are future concerns such as unknown overlap profits etc

 

No previous returns are available to see.

 

What would be the best way to approach this issue?

 

Regards

Replies (4)

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By David Ex
08th Sep 2021 12:14

Disengage or get a decent fee upfront to get the client’s affairs straight.

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By DKB-Sheffield
08th Sep 2021 12:39

As a starting point, the client should have received much of the information required from their previous accountant when the returns (etc.) were filed. If the previous advisor is uncooperative, I'd throw the ball back into the client's court and tell them, in no uncertain terms, that unless you receive the information, you may well be unable to proceed with the engagement!

Refusal by the third party accountant to comply with your request could happen for many reasons! Whilst a lack of response is unprofessional, the client may not have paid, they may not be satisfied the client has given approval, or in a recent case of mine, the client actually 'left' the previous accountant before the last tax return was prepared (i.e. DIY with multiple errors).

The latter example may explain the May 2020 accounting period being included in the 2019/20 return! Does the return actually detail the Agent as the one who filed it?

With regards overlap, you may struggle with this one! If the client has moved accountants regularly, it may have got missed, and not chased, by numerous accountants previously! The previous advisor may not have it! HMRC may be your only port of call!

I agree with previous points, you'll probably need a substantial first-year fee to resolve this. I'd also be looking very carefully at the client, particularly if they are unable to provide information they should already have!

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By Paul Crowley
08th Sep 2021 13:37

If appointed agent you can usually see prior year returns if filed by client

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RLI
By lionofludesch
08th Sep 2021 14:43

HMRC know what the overlap relief is.

Ask them.

You may as well ask them to provide copies of returns too. If you tell them there may have been errors in the past, you may find that their eyes light up and they become more cooperative.

However, don't try to correct anything unless you can convince yourself that was was submitted was wrong. Don't guess.

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