Accountant issues
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Karentpain
Posts: 3 Newbie
My partner has been working for a year for a Company who when he joined wanted him to be a limited company, which he did. He was given an accountant to use by his company and set up a direct debit to pay the accountants fees weekly.
Through the course of the year my partner has found out that the accountant is unregulated and furthermore is run by a man who has been in prison for fraud and is a current bankrupt. Other people that work for the company have had terrible problems with misinformation, refusal to return receipts for previous years and abusive behaviour from this accountant.
As a result, my partner decided to change his accountant and become a sole trader. He has his own unit and does work outside of the Company he works for so from an HMRC perspective, there is no problem with him doing this. However, today my partner has been told by his boss and the accountant that he must stay with this dodgy accountant or leave. I'm certain he can't do this, but as this accountant is unregulated, my partner doesn't know what to do. Work options in his trade are limited where we live, so leaving is not a simple option.
Has anyone ever had this happen to them or would know what we can do?
Through the course of the year my partner has found out that the accountant is unregulated and furthermore is run by a man who has been in prison for fraud and is a current bankrupt. Other people that work for the company have had terrible problems with misinformation, refusal to return receipts for previous years and abusive behaviour from this accountant.
As a result, my partner decided to change his accountant and become a sole trader. He has his own unit and does work outside of the Company he works for so from an HMRC perspective, there is no problem with him doing this. However, today my partner has been told by his boss and the accountant that he must stay with this dodgy accountant or leave. I'm certain he can't do this, but as this accountant is unregulated, my partner doesn't know what to do. Work options in his trade are limited where we live, so leaving is not a simple option.
Has anyone ever had this happen to them or would know what we can do?
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Comments
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There is something which does not fit here. You say that he has a "boss" and that the boss has told him he must "leave". That sounds very like employment and by being self-employed he is probably breaking HMRC IR35 regulations.0
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That's a good point, I will look into that. It would be the quickest way to ditch the accountant. I suspect the reason all his workers are self employed is to avoid paye and pension contributions. I will contact HMRC 😊0
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Karentpain wrote: »That's a good point, I will look into that. It would be the quickest way to ditch the accountant. I suspect the reason all his workers are self employed is to avoid paye and pension contributions. I will contact HMRC 😊
He isn't self-employed if he is working for a limited company (even if he "owns" the limited company). No business can literally force another limited company to do anything (such as using a specific accountant), however that business can choose who they work with based on any criteria they choose.
Is your partner fully aware of his responsibilities as a Director of a limited company?0 -
He should have been made aware if his responsibilities as a director by his accountant. I doubt the accountant knows to be able to advise.0
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Regarding the 'accountant' there is nothing wrong with him not being regulated or to prevent him from trading with a fraud conviction (that I know of). He may have been a registered professional until his conviction. I would be more worried about your partner falling under IR35 rules.
Sadly it is up to your partner to find out his responsibilities as a director and if the accountant is not registered with an institute there is no fall back on him. Your partner should look for a new accountant. Oh and no your partner cannot be told which accountant they must use this is a big red flag.May you find your sister soon Helli.
Sleep well.0 -
Regarding the 'accountant' there is nothing wrong with him not being regulated or to prevent him from trading with a fraud conviction (that I know of). He may have been a registered professional until his conviction. I would be more worried about your partner falling under IR35 rules.
Yep, literally anyone can call themselves an accountant and run an accountancy practice - it's unlike other professions such as solicitors and architects which are protected by law.
Whether you are wise to choose an unqualified, or unregulated accountant, or one with criminal convictions is a different matter.0 -
Yep, literally anyone can call themselves an accountant and run an accountancy practice - it's unlike other professions such as solicitors and architects which are protected by law.
Whether you are wise to choose an unqualified, or unregulated accountant, or one with criminal convictions is a different matter.
Couldn't agree moreMay you find your sister soon Helli.
Sleep well.0
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