Trading Prior to Self Employed Registration

System
System Posts: 100,537 🤖 Admin 🤖
edited June 9 in General accounting discussion
A potential client came to see me recently, ebay trading & car boots, he would like me to complete his end of year accounts & tax return in a year's time as he has just registered as self employed having retired from the day job. He has said that to be honest he has been trading as an ebay business account for around three years albeit on a small scale ........

The point is........ what do other members do in the circumstances.

When clients come back for the tax return work I then issue a straightforward engagement letter and do the identity checks with passport id etc. I just feel a bit uncomfortable with this situation but am I being a bit unreal on business honesty. And at the end of the day it is his tax return that he signs.

Comments

  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Trading Prior to Self Employed Registration

    I personally would ring the AAT Ethics helpline in view of the fact that he has been trading for three years prior to going self-employed. There are potential money laundering issues here as he has admitted being in trade for around 3 years prior to registering as self employed.

    Kind regards
    Steve
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Trading Prior to Self Employed Registration

    I would agree with Steve.

    I used the Ethic helpline a few days ago - very useful!

    Regards

    Dean
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Trading Prior to Self Employed Registration

    Many thanks, I listened to so much of his reasons that I began doubting my own self!

    I emailed the client to say that I do not feel I could take on his business accounts and tax returns for the reasons you've pointed out. I think it was after a couple of glasses of wine but before coffee that I came to that conclusion on Friday evening.

    Regulations are there for everyone and despite his objections, it does matter to us all in practice and in business.

    However its a shame to have to turn a customer away who was very keen for me to take the work on especially when building up clients.
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Trading Prior to Self Employed Registration

    Sounds like you've made the right decision.

    Unfortunately, even accountants have to now question whether we take on work or not. We are now at the mercy of the ever rigorous money laundering regulations and I (personally) would look after number 1 before putting at risk my career because of someone's inability to be honest!

    Best regards
    Steve

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