Advice needed - should I sack client?!!

Emrhino

Hi all,

Been getting a bit stressed about this one for a while...

Most of my clients are quite obviously honest and want to do the right thing - I only have one about whom I am getting bad vibes!

He seems to be 'involved' to some extent in a couple of other family businesses (i.e. invoices made out to him, he makes payments on their behalf etc) but tells me they are his wife and son's businesses and he is just helping out as they are new to managing a business.

His mobile phone bills (which he wants to put through as expenses) are addressed to him but 'trading as' one of these other businesses.

He tells me he has no other income than that which he takes from his own business but I am not totally convinced. He 'jokes' a lot about 'if he goes down he's taking me with him, ha ha' which does not instill me with confidence either!

Does anyone else insist on seeing personal bank statements as well as business accounts? People normally bring these to me anyway but he has not.

He has also ignored a couple of pieces of advice I having given him regarding employee status (IR35 etc) and keeps I insisting I am wrong about entertaining being disallowable for tax purposes because 'all his friends claim for meals out'.

I have put my advice in writing to him but it's wearing a bit thin now.

I suppose I'm lucky not to have been in this position before but I am seriously contemplating telling him to find someone else - I don't really have grounds to suspect dodgy dealings. It's just a feeling I am getting and I'd rather not be involved...

I already know what I need to do really but I would appreciate your thoughts..

Rachel

If you do not feel comfortable acting for him then don't. You can usually tell if someone is being honest. Can you have a chat and ask for all the info you need and judge from that whether you want to act for him or not?
Good luck

Emrhino

Hi Rachel,

I have had a couple of chats with him already to try to suss him out - I can't say that he's being dishonest, he's just listening to a lot of people giving him conflicting advice and I don't think he understands the impact of the choices he makes (although I am trying my best to explain it to him - and always put it in writing!)

I also think he doesn't tell me anything unless I ask him directly about it - 'What she doesn't know can't hurt her' kind of mentality...which bothers me...

sdv

Emrhino wrote: »

Hi all,

Been getting a bit stressed about this one for a while...

Most of my clients are quite obviously honest and want to do the right thing - I only have one about whom I am getting bad vibes!

He seems to be 'involved' to some extent in a couple of other family businesses (i.e. invoices made out to him, he makes payments on their behalf etc) but tells me they are his wife and son's businesses and he is just helping out as they are new to managing a business.

His mobile phone bills (which he wants to put through as expenses) are addressed to him but 'trading as' one of these other businesses.

He tells me he has no other income than that which he takes from his own business but I am not totally convinced. He 'jokes' a lot about 'if he goes down he's taking me with him, ha ha' which does not instill me with confidence either!

Does anyone else insist on seeing personal bank statements as well as business accounts? People normally bring these to me anyway but he has not.

He has also ignored a couple of pieces of advice I having given him regarding employee status (IR35 etc) and keeps I insisting I am wrong about entertaining being disallowable for tax purposes because 'all his friends claim for meals out'.

I have put my advice in writing to him but it's wearing a bit thin now.

I suppose I'm lucky not to have been in this position before but I am seriously contemplating telling him to find someone else - I don't really have grounds to suspect dodgy dealings. It's just a feeling I am getting and I'd rather not be involved...

I already know what I need to do really but I would appreciate your thoughts..

This all about ETHICS!

Did you do an ethics unit?

If you feel (have suspicion) that your clients is not acting with integrity then you should decline the assignment.

If you are not sure then you can always ring AAT ethics line to get specific advise.

I think the bigggest worry I would have is a posibility of the Money Laundering Regulations breaches.

I don't mean to worry you, but to be safe; ring the AAT Ethics line and log the conversation and advise in the client's file

Emrhino

Yes, I have studied 'Ethics' as part of AAT and CIMA for over 10 years. Not always quite as easy to make a decision in practice as in theory though, unfortunately.

Thanks for your comments. I will try the AAT helpline as you suggest.