I wonder how large partnerships deal with this on a merger?
I can see a difference as the same partners will transfer to the new place but still there is a new entity of some form taking over the old practice clients
Mention of SSAP16 brings memories back to those of us getting on in years. I spent ages getting on top of it for PEII in the early 1980s, never actually having to draw up inflation accounts in practice, and it was withdrawn soon after I qualified.
Might have been good practice though as I moved into tax and had to deal with all sorts of unintelligible nonsense that still comes out in every Finance Act.
I lived there briefly in the 1970s and it's not a bad area, certainly on the eastern side, outside the city itself.
One thing you might look at is commuting to Cardiff or even Bristol. If you're driving, at least there are no tolls on the bridge anymore.
I assume that "applied for EIS" is an application for advance assurance.
Whatever else, you should advise the client to do nothing until you have the EIS assurance. And then it is only valid if you have provided all the information to HMRC.
From what you have set out, it is likely to be refused anyway.
You are right though to identify EIS as a specialist area and while it is a good idea, there are all sorts of unsuspected traps that can deny EIS to an investment.
HMRC only require an authorised person to sign, and they don't check to see that they are authorised. Ultimately it's between the members of the committee or the board of directors who is authorised.
I'm not a lawyer and would be interested to see any views, but I understood "nominated partner" to mean the individual who is acting on behalf of the other partners.
I can't see how an NP can refuse to act if all the partners agree.
As others have said, this is not a problem for the accountant but one for the partnership as a whole, who currently appear not to be meeting their legal obligations because of the inaction of one individual.
I agree with Matrix. If there is no salary or dividend in 17-18 there's nothing to go on the tax return. There may be a tax charge on the overdrawn DLA but that is for the company.
But if there is a BIK for the interest free loan account, there should have been P11d submitted. I bet there wasn't one but that is a company issue.
Secondly the BIK on the loan should be included on the personal return which will be difficult without the company accounts.
You should tell him that without the accounts, he will be unable to submit a tax return as neither he nor you will know the amount of the BIK.
It may be possible to put in a return with estimated figures and full disclosure and hope that gets him off the late filing penalty, or just treat the penalty as a cost of ignoring the legal separation of the company from its shareholders.
This all takes me back. But I bet the head office of any of the FTSE100 companies will still have a notice board, even if it's not brass plated with someone employed to polish it.
Do large accountancy firms still use their address for clients' registered offices? They used to and would have a list somewhere in the reception.
Thanks for all the replies.
The services are file storage and sharing I understand. The supplier appears to accept that customer is UK based which is correct. Therefore added VAT at UK rate, though I don't think technically it is UK VAT to be recovered in the normal way.
Yes it is Irish registration and ends with a letter.
Totally agree that any supply to a UK registered customer should be zero rated.
What I have now found out is that the supplier has different platforms which are charged at different rates. I can't be sure but the one used by the client is normally only used by customers for private, not business use, hence the supplier is geared up to charge VAT. It also appears that supplier is aware that this platform is used by a number of one man band type customers but that is how they deal with VAT.
I imagine that a few customers in this position simply recover the VAT through the return as normal, seeing a 20% rate on an invoice, that is hardly surprising. It is only because this is a new client and moving from the flat rate scheme, that I picked this up when advising what codes to use on his bookkeeping software.
The supplier is a large operation so arguing with them over fairly small amounts is probably fruitless.
Thanks again for the input
Thanks for the reply and the link to the VAT reclaim.
The client is based in the UK with no other place of operation. Not sure if this helps, and the VAT charged on the supply is the UK rate (20%) even though the supplier is definitely an Irish company with an Irish VAT reg. This is what I would expect when the recipient is not VAT registered.
The amounts are not really significant, though even small amounts are welcome if it's just a question of giving them your VAT number.