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Jenny
Jenny, Solicitor
Category: Law
Satisfied Customers: 6339
Experience:  Qualified Solicitor specialising in Employment Law and general legal matters. Please start your question For Jenny Only
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I was advised by my accountant that I would incur a late

Resolved Question:

Hi,
I was advised by my accountant that I would incur a late filing fee from companies house for £750 which I duly budgeted for. I have subsequently received a bill for £1,500. My accountant said this is right and that he hadn't realised that the rules had changed, hence the wrong information he gave to me. I have not budgeted for the extra outlay. Do I have any recourse as regards ***** ***** advice. My accountant said he had not known of the new rules as he had never had a client whose accounts were late two years in a row. Thanks
Submitted: 2 years ago.
Category: Law
Expert:  Jenny replied 2 years ago.
Hello my name is ***** ***** I am happy to help you today.
You have the right to expect your accountant to know the tax rules if you are paying them to advise on tax issues. If you are going to suffer a loss as a result of this then you can take action to recover your losses (I would imagine the losses would amount to overdraft interest and fees), you may also be able to argue if you had been given the correct advise you would have acted differently so the loss is more than these fees.
Your accountant should have insurance to cover issues such as this. I would suggest you tell him that you intend to recover your losses and to notify his insurer of this fact.
Hopefully he will make you a sensible offer so you will not have to take this matter through the court system.
If you have any further questions please do ask. If I have answered your question I would be grateful if you would take the time to rate my answer. Thank you and all the best.
Customer: replied 2 years ago.
thank you for your speedy response, can you please advise whether the additional £750 I now have to pay (in addition to the £750 I expected) would be considered a loss to me in terms of what I might seek in recompense. Thanks
Expert:  Jenny replied 2 years ago.
It has to be a direct loss, you can argue that it is recoverable if your position is that if you had been advised of the additional fee you would have acted differently and filed in time.
Customer: replied 2 years ago.
Thank you, ***** ***** any particular wording or term (legal or otherwise) that would be advisable to include in any correspondence when advising them of my position in term of seeking recompense.
Thanks
Expert:  Jenny replied 2 years ago.
Hi you should say that you consider that the failure to advise you correctly amounts to professional negligence and that you intend to recover your losses.
Ultimately you may need to raise a claim in the county court if they will not settle.
If you have any further questions please do ask. If I have answered your question please do take the time to rate my answer. Thank you and all the best with this.
Customer: replied 2 years ago.
Thanks, ***** ***** couple more things - in terms of my intent to recover my losses, as my argument would be that I would have not filed late and therefore seek the full £1,500 (would I have the right to seek the full amount) would I then ask for the details of their insurance company ie, "I intend to recover my losses and request the details of your insurance company in the first instance in order to do so". Do I also need to go to submit to court when seeking to claim from their insurance company or do I just write to them?
Would it also be wise to suggest an alternative i "however, whilst I am seeking to recover my losses, if you feel there is an alternative to going through your insurance company, I am happy to discuss a way forward"
Than you
Expert:  Jenny replied 2 years ago.
Hi you will not be able to recover the full £1500 as you have knowingly accepted the fact that there would be a £750 fee.
The rest of your suggestions are very sensible.
Customer: replied 2 years ago.
Hi
Just so I am clear, my argument is that if I had known about the £750 in addition to the £750 I expected as a result of late filing, I would have filed on time and therefore received no late penalty fee at all. I just want to clarify the reasons I would not seek the whole amount rather than £750. I would understand it if it was £750 within a certain timescale and going out of this timescale incurred an additional £750. However in this situation, the 1,500 relates to the same timescale as it would be for the original amount of £750. My accountant said they did not realise the fee was increased to £1,500 and not the £750 they told me - so if I am saying I would have filed on time if I had known the fee was higher than I expected and therefore not incurred any fee at all, I'm a little unclear of why I would like to to pay £750. I do apologise if my initial explanation of the situation was not clear and has muddled things at all.
Expert:  Jenny replied 2 years ago.
No problem, I was not clear on the above, you can argue that the loss is £1500 on that basis.
Hope that helps.
Customer: replied 2 years ago.
many thanks, ***** ***** it was my initial explanation that was not clear, rather than your advice. You have been very helpful. Have an enjoyable rest of the day
Expert:  Jenny replied 2 years ago.
You too! All the best with this. I would be grateful if you would take the time to rate my answer as I am not otherwise credited for my time.
Many thanks
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