Accountant letter

vinukmathews

I have been approced by an new client, whom I have never seen before, asking for income confirmation letter. This person is a taxi driver and he himself did his taxi accounts and returns previous year. He now wants a income confirming letter from me for that period for some purpose. As an AAT licensed memebr, am i able to provide such letter without submitting the return?

MarieNoelle

Hi

Whether acceptable or not, I personally would be very uncomfortable signing off accounts I have not prepared or reviewed myself. You may also find something in the guidelines for practitioners that prevent you from doing so. Maybe a call to the AAT ethical advice helpline would clarify your position?

vinukmathews

Hi,

Thanks for answering me.

Another client goes to me who wants a income confirmation letter. He provides me a contract which shows he will receive £20000 after completeing the contract. He wants me to give him a income confirmation letter based on this contract writing "based on the contract he is estimated to earn an income of £20000 in three months time"

This contract is not with the end client but with a recrutment agency, who is in subcontract with end client and there is a clause in my client's contact that they may terminte him if he underperform at any time.

Can I provide a letter for him keeping in mind the termination clause?

Thanks

douglasstroud

Is this an existing client who you have previously done accounts for?
If not why get involved, just tell them to give the letter to whoever requires the proof, what other information can you provide that the letter does not.

vinukmathews

I emailed to ethics but this didnt give a clear answer.

@MarieNoelle Can you help me if possible. Thanks

MarieNoelle

My advice still stands - I personally wouldn't get involved.
As far as the taxi driver is concerned, why can't he just print off the SA302 from his personal tax account - this will show his income as reported on his tax return. If the third party insists on having an accountant signing it off, then insist on charging the client for a full review of the accounts.
Regarding the second client you can not provide any more assurance than any of us as to whether he will get the income, so follow the advice @douglasstroud gave you.
Hope this helps.

vinukmathews

Thanks for your help!!

burg

I'd echo the above from MarieNoelle. We cannot confirm a clients future income. If (and in this case its a no) I had prepared the accounts then I'd be prepared to provide accounts and possible comment about the past which MAY mean the future is likely to be X but with no guarantees and a disclaimer that they need to make their own assessment as to how likely that is.