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Trader tip-off

02 May 2007
Issue: 4106 / Categories: Forum & Feedback

I have prepared final accounts for a client who ceased trading in August 2006. The client was VAT registered and the balance of VAT shown as payable at cessation is about £6,000. The client has not paid this over to HMRC and indicates to me that he has no intention of doing so. To me this is clearly wrong, but what do I do about it?

I have prepared final accounts for a client who ceased trading in August 2006. The client was VAT registered and the balance of VAT shown as payable at cessation is about £6 000. The client has not paid this over to HMRC and indicates to me that he has no intention of doing so. To me this is clearly wrong but what do I do about it?
Do I tip off HMRC? I would hardly feel very professional representing the client in the VAT enquiry which follows knowing that I 'blew the whistle' but am unable to inform him. The client will have a jolly good idea where the 'tip off' came from which I shall be unable to confirm or deny. Where is the integrity to my client?
Alternatively do I tip off the client before telling HMRC and risk imprisonment?
The fairest and...

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