Is the accountant saying the truth?

[RainWolf]

Can an accountant act on your behalf and accept payment without giving you full pricing details and a letter of engagement?
Thank you in advance for your help. Here is what happened.

Recently, I spoke to an accountant about helping me with my self-assessment. I had a lot of fines for not filing on time.

He asked me to sign a 64-8 form and then made a call on my behalf to HMRC.

They said the fines were waved so I had some time to put everything together. Of course, I wanted to know how much it would cost to handle everything. He asked me to pay £100 and we'd take it from there ( I explained I was in a bad financial situation so might not be able to afford their services. )

After paying the money, I came in with my records and gave him access. After a couple of weeks, I didn't see much progress. I came several times asking to help my clarify what position I was in.

I felt I wasn't getting clear answers so I called HMRC myself. They said there were no accounts due at the moment however if I've been self-employed they want to see the returns for the past two years.

After confronting him, he basically started asking questions he should have asked at the beginning ( such as am I representing you or the company. This is after sending the 64-8 about 3 weeks before! )

I never got any confirmation or response anytime I sent in the stuff he asked me for. I asked why. The basic answer is that he was busy with all the clients.

After getting angry, he said he would send me the letter of engagement as well as pricing, etc.
He did, as well as partly confirming the advice he'd given me.

I believe all this should have happened in the beginning - not almost after a month. Am I correct in that? What can I do about this?

 

[Chris Ashdown]

Get anothe accountant who does not get angry, but this time be very clear about what you are asking for and get a price and a timeline of what will happen

I imagine he thought he was never hired by you and with a lack of agreement played safe and did nothing. some might give a verbal suggestion of cost and a handshake others run the other way and send a thirty page agreement to be signed by the pope and his son in law

 

[MyAccountantOnline]

Can an accountant act on your behalf and accept payment without giving you full pricing details and a letter of engagement?
....

Sadly you need to bear in mind that ANYONE can call themselves an accountant; you dont need any qualifications or experience whatsoever to set yourself up as an accountant and to charge people for accountancy services. So yes anyone can take your money in this way.

If you have engaged a qualified accountant (in the main one registered with one of the Chartered bodies) they should have given you a letter of engagement and agreed the fee or basis of charging before undertaking any work.

Do you know if your 'accountant' is qualified with one of the UK accountancy bodies?

 

[RainWolf]

Do you know if your 'accountant' is qualified with one of the UK accountancy bodies?

Well, it says A.C.M.A. next to his name on the letter of engagement.

He works in a firm but everything is looking weird to me.

My problem is that he took money from me and gave me the impression that everything is being sorted. I kept asking what I need to pay. He said we'd calculate it.

Now, as Chris said, in his head he felt I hadn't hired him. I got that more or less when I confronted him. BUT he had taken my money, accessed my accounts, and spoke to HMRS on my behalf.

So how do you take money and not be hired?

 

[SteveHa]

ACMA is a management accountant, and not necessarily equipped or experienced to provide general accountancy or tax advice (it's not a given that they aren't, but not being is more common then being able to).

 

[MyAccountantOnline]

Well, it says A.C.M.A. next to his name on the letter of engagement.

He works in a firm but everything is looking weird to me.

My problem is that he took money from me and gave me the impression that everything is being sorted. I kept asking what I need to pay. He said we'd calculate it.

Now, as Chris said, in his head he felt I hadn't hired him. I got that more or less when I confronted him. BUT he had taken my money, accessed my accounts, and spoke to HMRS on my behalf.

So how do you take money and not be hired?

That would suggest he is a member of the Chartered Institute of Management Accountants. Generally an accountant who'd work in industry rather than practice but not always. http://www.cimaglobal.com

As an accountant I dont think you've had good service from what you've said.

What do you want to do?

 

[RainWolf]

Also,

As an accountant I dont think you've had good service from what you've said.

What do you want to do?

I am thinking of escalating. I told the accountant I would accept an honest apology and a written statement of the advice he's given me so far ( especially because he told me something different from what HMRC said ). But I haven't received that, even though he agreed to do it ( after virtually forcing him to apologise.

I wrote an email to CIMA and it looks like what he did was unethical. I just need more clarity on what my rights are before I proceed.

 

[Chris Ashdown]

You are right to be angry, but really need to just get on with life, you will not be able to work with him so don't waste time move on and use the time to make more money