Dilemma

System

OK guys and gals quick straw poll what would you do?

I have an ex client (husband and wife partnership) - I gave them their 04 - 05 returns to sign and send in October 2005. They finally filed them in March 2006 and so incurred the £300 penalties and fines etc.

They have been in contact twice this year asking for meaningless bits of information (that I kindly provided). Each time I suggested that their new accountant got in touch with me for (apart from professional niceties) all the balance sheet balances, capital allowances etc etc.

Whilst on HMRC website this afternoon, I spot that they are still on my client list, and curiosity got the better of me, and guess what - no returns filed.

Do I have any obligation to remind them that 31 January is only 48 hours away?

Do I have any professional obligation to do anything? If so, what?

Your views much appreciated.

Thanks

Claudia

System

Re:Dilemma

Hi Claudia.

If they're on the website as your clients, I would give them a quick call to remind them. They probably won't thank you for it - they seem to be late payers. I would also got the association removed.

Scott.

System

Re:Dilemma

You don't have any obligations as such as it is their responsibility to ensure their tax returns are prepared. There are plenty of advertisements on the television/radio/bill-boards etc about the tax returns - they are grown up people who should be responsible enough not to have their noses wiped!

We generally give them a call, purely out of courtesy, but if they don't get us the records in time, it is generally a case of "hard cheddar" and they win the £100 prize.

From the information they have been asking you for, it does sound like they have another accountant who should have gone through the proper channels re clearance.

Kind regards
Steve

System

Re:Dilemma

No sensible info, particularly re capital allowances have been asked for, so no proper tax return can be completed.

Methinks that they might be cheap skates, but have now realised that they can't do it themselves, and so have buried their heads in the sand.

Problem is 2 x late tax returns = dead cert investigation.....

Also, if I did phone them up tomorrow, there is no way that I could complete their tax returns on time - also wouldn't want to. So on that basis, would phoning them just be rubbing their noses in it.

Oh - I wish I had never looked now

Claudia

System

Re:Dilemma

I would just give them a ring and see where you stand. If they want you to do their return, then just advise them that it will be a late one with a penalty imposed.

Some clients never seem to learn.

Regards
Steve

System

Re:Dilemma

If you've got time I'd phone them, remind them & quote them a stupidly high fee for preparing the returns. If they say go ahead then just think of the money, if not then delete them off your list for good!

System

Re:Dilemma

I think I would see clear of these clients. They sound like bad news and do you want to get any more tangled anyway?

System

Re:Dilemma

I did phone them and got him (who hates paperwork) and apparently their returns were filed over the weekend, which suggests to me a DIY job :shock:

I bet they end up paying more in tax than an accountants fee to do it properly :roll:

Some people eh!

Claudia

System

Re:Dilemma

Send a letter to HMRC explaining that they are still on your schedule, but that you no longer act for them. Advise HMRC that you take no responsibility for their affairs and that all future correspondence should be addressed to them.

HMRC understand the situation, often better than we do.

Michael