3 Questions

michelle sandham
michelle sandham Registered Posts: 8 Regular contributor ⭐ ? ⭐
I have 3 indepentant questions which I need advice with. So help Please.

1) I have a potential client who I met in October 2009, who should be filing a tax return for next Sunday(31st Jan), despite several requests for the paperwork from this client so as to undertake a set of year end accounts and signature of my letter of engagement I still do not have anything fom her and I have had a multitude of excluses.

I am starting to have a bad feeling that by the length of time it is taken to actually get the work, that receiving payment of any invoice once the work is undertaken will be extremely hard. As she was to be the first client of my Practice I really dis not wantto drop her but I am starting to think that this contract might not be worth my while.

What would anyone else do in this situation?

2) A further client has been closed 2 two month as a result of a water leak, which they have claimed through their insurance. They have sent me through a profit and loss where they have shown the insurance claim as other sales but appear to have netted off the expenses against the monies received in, instead of showing it as a cost of the business.

Does this seem the correct treatment?

3) As part of verification of new clients I like to do a background check on the company and it's directors as part of my client verification / money laundering checks. Which company search Websites would people recommend, thats relatively low in price but for as much info as possible?

As always any help from the formum is appreciated


  • AK002
    AK002 Registered Posts: 2,492
    I know for a few clients i've done in the office that any insurance money received has been netted off against the cost of the repairs as the business isn't actually suffering these costs as the insurance are paying it... Only cost the business suffer is the insurance premium every year and any excess that needs paid.

    Never heard of it being in other sales and then netting the expense off there...
  • JodieR
    JodieR Registered Posts: 1,002
    in answer to no 1, all you can do is point out to the client that they'll get a penalty if the return's not filed on time, and also make it clear that you won't submit the return until you've been paid. ball's in their court then.
  • deanshepherd
    deanshepherd Registered Posts: 1,809
    1) Agree with AK002
    2) Agree with JodieR
    3) Veriphy (but only if I cannot obtain ID directly from the directors)
  • Monsoon
    Monsoon FMAAT, AAT Licensed Accountant Posts: 4,071 ? ? ?
    I am starting to think that this contract might not be worth my while.

    What would anyone else do in this situation?

    You've answered your own question! You do not want clients who are consistently late and rubbish with providing information - you spend more time chasing them than working on their file.
    Decide how much you want this client, make sure they are aware of penalties and decide how much you wish to chase them before you cut your losses. I know it's hard when you're starting out but there are plenty more clients out there and good ones at that!

    ID checks - www.amlsearch.co.uk (but don't waste money on Ltd Co reports, a Co House check is enough!)
    Legatio KYC (Know Your Client)

    We onoly electronically check if we haven't met them in person.
    Personal searches about £5 + VAT.
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