Accountants advise clients on tax issues, complete tax returns and advise on business related financial issues for their clients. They have a professional code of conduct and a duty of care to act in the best interest of the client.
Accounting malpractice occurs when clients are given incorrect advice that has caused an additional outlay of tax, or caused serious difficulties with and or financial loss from HMRC.
You may have been advised by a negligent accountant in the following circumstances:
- Giving incorrect tax advice
- Missing deadlines to file an annual tax return
- Failing to draw up accurate accounts
- Failing to advise on tax regulations
- Overvaluing company assets
- Failing to advise on capital allowances in a commercial property transaction
If you feel you have suffered negligence in accounting or find yourself in a position where you face tax penalties, or worse still, prosecution from HMRC you need to take action without delay.
A complex issue for many accountants, if you have bought or sold a commercial property you might have lost out on allowances worth thousands of pounds. For a more detailed explanation of capital allowances please get in touch.
Selling of Goodwill on Incorporation
Were you advised of goodwill tax relief? Prior to December 2014, there were tax clauses in place that helped sole trader and partner businesses to be more tax efficient by selling the goodwill of their business into a new limited company. Accountants who refused this, or did not advise on the tax efficiencies of changing from sole trader to limited company could find themselves at the centre of an accountancy negligence claim.
For a more detailed explanation of the sale of goodwill on incorporation please click here.
Suing Your Accountant - The Sue The Expert Plan
It may feel like a daunting prospect to contemplate suing your accountant for negligence, however it need not be stressful with our planning process.
With our assistance we will work with you to:
- Establish what the accountant was contracted to do
- Whether the serviced provided was sub standard and what we refer to as ‘breach of duty’
- Demonstrate that you have suffered financial loss
- Assess whether your financial loss is a direct cause accountant negligence
At this point, accountants or their insurers may well dispute your claim so we collaborate with an independent accountant as an expert witness.
Our expert accountant will prepare a report that;
- Analyses the facts
- Establishes a duty of care owed to you
- Assesses whether the work done by your accountant is negligent
- Identify specific allegations of negligence that can be advanced
- Link the negligence to your loss
Very often when we serve a report that highlights negligence in accounting, a defendant or their insurers admits liability, leaving just the value of your claim to be negotiated.
Contact us to see if you have an accountancy negligence and malpractice claim and we can help you recover your financial loss on 0345 052 3529, [email protected] or use the contact form here.