Accounts without Evidence

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T.C.
T.C. Registered, Tutor Posts: 1,448 Beyond epic contributor 🧙‍♂️
in General accounting discussion
I have been asked to complete a client's Tax Return based on a partnership she was in from February to April this year. All she has provided me with is spreadsheets because she is no longer in the partnership. She has also asked me to draw up the Partnership Return based on these spreadsheets. I have asked her to confirm that she is happy for me to do this with the limited information, but I am still not convinced that this is good enough. What would you do? She does not have access to the full accounts of the partnership anymore! :confused1:

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  • peugeot
    peugeot Registered Posts: 624 Epic contributor 🐘
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    Could you not write to the previous agent/partner who prepared the last set of accounts? Alternatively, could you not ask HMRC for a copy of the last partnership return, which would give you a starting point for the opening balance sheet position.

    Best regards
    Steve
  • T.C.
    T.C. Registered, Tutor Posts: 1,448 Beyond epic contributor 🧙‍♂️
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    Not clear

    Sorry, I should have made that a little more clear. The partnership only started in February 2007 and it my client left the partnership in April!
  • peugeot
    peugeot Registered Posts: 624 Epic contributor 🐘
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    On the basis that your client genuinely cannot provide any further information and the other partners are happy that your client and their ex-partner is providing limited information for you to prepare the partnership accounts and tax return, then that is the basis on which you might have to proceed. If you're not happy, however, in doing this then you should consider not taking on the client, perhaps?

    The spreadsheets might be sufficient enough to prepare an accurate partnership return and associated accounts, however, like you I would want to "backup" the information in the partnership financial statements with 3rd party evidence.

    Keep us posted on how you go on with this.

    Best regards
    Steve
  • claudialowe
    claudialowe Registered Posts: 275 Dedicated contributor 🦉
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    What has happened to the partnership since your client left?

    The other partner would also need these figures for their tax return surely?

    If your client submits half of a partnership return with different information to the other partner - then there will be trouble ahead.......

    I have, in the past, completed a partnership return where a partner has left midway through the year. I completed and submitted the partnership accounts and tax return, and then just sent a copy to the old partner telling them to put in on their return.

    Claudia
  • JodieR
    JodieR Registered Posts: 1,002 Beyond epic contributor 🧙‍♂️
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    I'd be very wary about this after a very bad experience (must have been about a year ago now - the whole sorry story is on the old forums somewhere), but basically the moral of the story is not to do anything with regards to a partnership without the full consent of all partners. Maybe I'm a bit over-cautious here but I wouldn't wish what I went through on anyone!
  • T.C.
    T.C. Registered, Tutor Posts: 1,448 Beyond epic contributor 🧙‍♂️
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    I have finally heard back from the other partner. He left a message to say that he would like me to do his Tax Return too, so I thought great, at least I can tie things together properly. I asked for all the paperwork etc.
    I received in the post today a VAT1 and VAT68 form with a covering note to say that the 'Tax Return' was enclosed and could I fill it in - no other paperwork, evidence or anything.
    Hence I am now looking for a book-keeper to sort it all out - they don't seem to have a clue. How can people like this run a business?
    Sorry...finished moaning now..! :mad2:

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