Amending ct 600 and accounts

Jmann Registered Posts: 68 Regular contributor ⭐
I took over a client. His previous accountant submitted last year's accounts & ct600. Client drew some money from the company. The accountant did not advise or allocated minimum salary to the directors. Also he neither submit ct600a nor paid s419 tax on overdrawn DLA.

The client wants me to redo the accounts and amend the ct600. I explained to the client that
-It would be risky to do as he opens himself for an enquiry and it would be costly to handle the enquiry, so savings made in CT may outweigh the benefits!
-Amending the accounts would reduce DLA - then no BIK (balance would go below £5k) may be some S419 tax to be paid.

Has any one dealt with this type of scenario? I would be interested to hear from other members their experience and whether they would amend the accounts or not. And any other pitfalls I have not thought about.

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