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Where Taxpayers and Advisers Meet

Accountant won't send my documents

Terence1
Posts: 6
Joined: Wed Aug 06, 2008 3:15 pm

Postby Terence1 » Fri Dec 03, 2004 7:20 am

Inland rev have asked for my documents for an enquiry into my Tax return. I have been asking my accountant to do this for two months so far he has not done this. I have now been given 14 days to comply or penalty fines may be issued. I seem to be stuck in the middle any advice would be helpful.

Lambs
Posts: 1478
Joined: Wed Aug 06, 2008 3:15 pm

Postby Lambs » Sat Dec 04, 2004 5:45 am

Have you advised the Inland Revenue of the problem? Under the circumstances, I suggest you do so, personally, at your earliest opportunity.

Despite the fact that you have apparently appointed an accountant to act on your behalf to deal with tax matters, you must appreciate that your own tax affairs are your own legal responsibility, and the Revenue will act accordingly. However, if it's not genuinely within your power to make these records available to HM Inspector, then you MUST inform them accordingly, as soon as possible.

Terence1
Posts: 6
Joined: Wed Aug 06, 2008 3:15 pm

Postby Terence1 » Sat Dec 04, 2004 6:05 am

Thank You for your reply. I have been in contact with the revenue, they are sympathetic but say they cannot put any pressure on the accountant. Is it possible to get another accountant to take over the enquiry if I can get my documents back.

Lambs
Posts: 1478
Joined: Wed Aug 06, 2008 3:15 pm

Postby Lambs » Sat Dec 04, 2004 1:14 pm

I am surprised at the Revenue's response: it is within the powers conferred on them by way of The Taxes Management Act, to request the provision of documents relevant to a taxpayer's affairs, from a third party. Specifically, s20 TMA '70. I can only infer that they are hoping for an 'amicable' arrangement between you and your agent.

However, I should stress that it would normally be better for you to get your agent to provide the information, than have to resort to such extremes.

Yes, you may appoint a new agent to act on your behalf at any time, insofar as the Inland Revenue is concerned. However, as you no doubt realise, asking a new firm of accountants/tax advisers to answer questions about a tax return, with which they weren't originally involved, will probably involve more time, effort and expense.

I can only assume that you have reached an impasse with your current agent: often this is as a result of a disagreement over the amount of, or failuer to pay, fees. Your accountant/tax adviser may legitimately argue that he or she has a 'lien' over your books and records, if work done on them hasn't been paid.

If I have understood your circumstances correctly, then you face a difficult decision: appoint a new agent, on the understanding that dealing with this enquiry is likely to be more expensive; or retain the services of your current agent, maintaining a relationship that may be irrevocably 'soured.'

Instinctive
Posts: 1797
Joined: Wed Aug 06, 2008 3:15 pm

Postby Instinctive » Sun Jan 02, 2005 8:32 am

Why is your accountant refusing to release the records?

Have the Revenue stated the reason for the enquiry?

At which stage has the enquiry reached?

What line of business are you in and what is the approximate level of your annual profits?

RP

Terence1
Posts: 6
Joined: Wed Aug 06, 2008 3:15 pm

Postby Terence1 » Sat Feb 12, 2005 4:32 am

I have now 14 days for my accountant to supply invoices and receipts under section 97aa Taxes mangement Act 1970 which he does not seem to want to do. how far will the revenue take the penalties. I was just a small fry Taxi driver who does not even work anymore. At what stage will they cease there action against me.

Lambs
Posts: 1478
Joined: Wed Aug 06, 2008 3:15 pm

Postby Lambs » Sun Feb 13, 2005 12:00 pm

Terence, they will not cease their action against you: you will have to comply with their request, so far as is reasonably possible.

You have not told us why your accountant will not release the records, and this is crucial to any advice that we might give. Does your accountant hold all of your books and records, or just some? (In which case, have you handed over everything else?)

Is there any chance that the Inland Revenue and your accountant might agree for an officer to examine your records at the premises of the accountant, if indeed there is an issue of unpaid fees such that your accountant is not prepared to give up his or her lien?

Whatever happens, it is vitally important that you maintain a dialogue with the Revenue, so that they understand that you are doing your best to be compliant.

Lambs

Terence1
Posts: 6
Joined: Wed Aug 06, 2008 3:15 pm

Postby Terence1 » Sun Feb 13, 2005 11:46 pm

After three months he did send a schedule of income and expenses. The revenue also asked for my purchase invoices and receipts which he has not or will not do. My accountant has all my receipts mainly petrol receipts and has no reason not to send them other than that he might have lost them.
He does know however that I am no longer self employed so after this has finished he will not get anymore work from me.

Terence1
Posts: 6
Joined: Wed Aug 06, 2008 3:15 pm

Postby Terence1 » Mon Feb 21, 2005 12:12 am

My accountant has now informed me that he has lost all of my documents. I am waiting for a reply from the revenue. Any ideas what I can expect now.

Thanks

vinodkumar
Posts: 31
Joined: Wed Aug 06, 2008 3:22 pm

Postby vinodkumar » Fri May 20, 2005 9:01 am

I would ask the Accountant to pay for part retrieval of the records as all the records will not be restored now. The type of records you MAY be able to obtain will be bank statments, paid chqs, lodgments, etc but the bank may charge you a lot and it could be time consuming.
Assuming you had paid all your professional fee there is no reason for your Accountant to hold a lien over your records. Accordingly you may want to ensure that your Accountant pays for it esp. as he has candidly advised you that the fault lies with him.


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