Sacking a client

Psyche Registered Posts: 187 Dedicated contributor 🦉
Sad that this is happening with one of my first clients but it's a learning experience, right? :)

I have a client with whom I signed a letter of engagement, he wants to close down his limited company (contractor -- sole shareholder) as he is now a full-time employee. He gave me a sad story about his previous accountants not doing what they were supposed to. Long story short, he has failed to give me any documents (except a handful of receipts), his VAT registration number, he still owes money to his former accountants who didn't do his accounts because he didn't give THEM any paperwork... and won't return my phone calls...

I have drafted a letter warning him that unless I get the relevant paperwork by 30 September that I will terminate our letter of engagement and send a final invoice. Is there anything else I need to do to sever ties with this guy?

Other than ask for a deposit next time :)



  • Julia Crouch
    Julia Crouch Registered Posts: 68 Regular contributor ⭐
    Hi Psyche,

    I think that most MIP's have encountered this at some stage, especially with their first batch of clients!

    It shows just how important due diligence is when taking on a new client e.g writing to previous accountant for clearance and requesting ID with MLR requirements. I even have access to a software program through my bank that enables me to obtain a credit score for companies and business and this also keeps track for me.

    Sounds as though you have done all you can, I would be surprised if you get payment though, send your invoice and pursue as you see fit but you may end up writing off.

    When you get to the 30th September and you send your final letter with your invoice dont forget to advise HMR&C that you are no longer acting as his or the companies agent.


  • Psyche
    Psyche Registered Posts: 187 Dedicated contributor 🦉
    Thanks for the tip, due to lack of the VAT registration number I have not yet even sent form 64-8! Hopefully he will respond to my letter. I doubt I will get paid either but it won't hurt to try. :)
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