Ceasing to Act Flashcards
Is a letter of disengagement compulsory?
No it is strongly recommended
What should be included in the letter of disengagement?
A note as to whether the outgoing member will advise HMRC of the changed arrangements
A note of any tax issues that need to be addressed
Details of outstanding fees
What statement should be included in a response to a client’s permission given to resign from an engagement?
We concluded that continuing our relationship was not compatible with our professional obligations
What should you do when an ex-client’s new adviser asks for documents?
Seek consent and pass docs to new adviser
After ceasing to act for a client, you receive info from HMRC relating to that client, what should you do?
Forward the info to the client
How much notice must a member give before ceasing to act for a client?
Reasonable notice subject to any provisions in the engagement letter
What should you do when you want to cease to act for a client?
Inform the client before you cease to act
Inform HMRC after ceasing to act
You are told a ex client has a new adviser who is requesting papers from the old client, what do you do?
Refuse to hand over any papers until you have received written instruction to do so
What should you do when you receive correspondence relating to a former client?
Advise the sender to address future correspondence direct to the client
Forward the correspondence to the client
Your client has decided not to use a tax adviser any more, what should you do?
Cease to act and hand over any information relevant to the client which they are likely to need to deal with their own tax affairs
When should a member who has accepted a client’s instructions to cease to act, cease to act?
When they have completed any professional or legal obligations or when the client’s requires it or there is reasonable notice to the client of their intention to cease to act
What details should be in the letter of disengagement?
Details of any impending deadlines and the action required
Details of any outstanding fees
Documents still in the possession of the adviser that belong to the client
What does the phrase ‘we concluded that continuing our relationship was not compatible with our professional obligations’ mean for a tax adviser’s position?
The adviser has resigned for professional reasons that are not a matter of public record
