Home For accounting professionals General accounting discussion
Current updates regarding coronavirus (Covid-19) and the precautions AAT are taking will be continually updated on the below page.

Please check this link for the latest updates:
We hope you are all safe and well and if you need us we will be here. 💚


monkeypuzzle47monkeypuzzle47 Feels At HomeMAAT, AAT Licensed Accountant Posts: 134
Hello I have a client whom is a Sole trader
They recently asked me to prepare some management accounts and cashflow forecast to the bank which i did in order to obtain a mortgage (whch has now been granted). They also employed me to do the tax return at year end.

I have now prepared the final accounts along with the tax return, and they were not happy with the amount of tax to pay. The client suggest I knock 5k from the income They said this is too much and they cant afford to pay. I told them that is the amount you have to pay based on your income from the information and explanations supplied to us.

They just sent me an email:-

that reads
"also i might ask you to leave the tax return to me. i'll file it myself if u dont mind".

How might I proceed in the most professional way with this.

Any advice please.

p.s They have already paid me for this service.


  • deanshepherddeanshepherd Font Of All Knowledge Registered Posts: 1,809
    Assuming they cannot be persuaded to 'do the right thing'..

    It sounds like they are going to 'tamper' with your figures so I would be drafting the disengagement letter.

    Next step will be to consider whether any Money Laundering report is required. Initial instinct is no, because an offence has not yet been committed, only a suspicion that an offence may be committed in future. Not sure that is enough to make a report.
  • Gem7321Gem7321 Experienced Mentor DevonMAAT, AAT Licensed Accountant Posts: 1,438
    If their taxable profits are going to be lower this year than last year you could do SA303 to reduce payments on account. You have to have reliable figures though, if the payments don't cover the actual amount of tax due the client will be charged interest.
  • monkeypuzzle47monkeypuzzle47 Feels At Home MAAT, AAT Licensed Accountant Posts: 134
    thanks for the advice. she is one of my payroll clients too! Such a hassle, but i do suspect she is going to tamper with the figures obviously.
  • mc25mc25 Well-Known Registered Posts: 232
    Definately could do as Dean suggest to cover you back. Good luck
Sign In or Register to comment.