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Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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Our company accountant has submitted VAT returns that were

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Our company accountant has submitted VAT returns that were incorrect, going back 4 years. This was uncovered by a VAT inspection. We are now faced with paying an additional £27K VAT plus £1K interest and a suspended fine. Our accountant has professional indemnity insurance and has supplied the details. What do we need to state in the email to the claims handler which will back our claim for negligence.
Hello my name is ***** ***** I will help you with this.
For now please let me know whether they have admitted liability at this point? Alex
Customer: replied 2 years ago.
Yes, verbally they have admitted they made mistakes and we have the amended VAT returns which highlight that in every VAT quarter there were errors made.
You need to write and set out your losses and request a refund within 14 days or say you will go to Court within 14 days. You should make sure you send this signed delivery and keep a copy.
If they do not refund you then you can issue proceedings in the County Court. You can either do this online at: or by completing form N1 and take it to your local County Court.
The Court will then issue a claim which a copy will be sent to the Defendant who will have a limited time to defend it, if not you can enter Judgment and enforce.
If the claim is for £10,000 or less it will be a small claim so you will not need legal representation. Over this value you would need representation for trial.
Can I clarify anything for you about this today please? Alex
Customer: replied 2 years ago.
Thank you for your response. Can you clarify whether our losses include the VAT that has been underpaid - as we do owe this money but such a large sum will seriously hinder our cash flow. Can we claim for our time in responding to the VAT inspector? So, I suppose what I need to clarify is what would our losses comprise?
You could claim interest, penalties and time spent dealing with the inspection. But you can't claim the underpayment because you would have needed to pay that anyway. But if you need to borrow funds to repay it because of cash flow then you could claim interest paid on those sums. Can I clarify anything for you about this today please? Alex
Customer: replied 2 years ago.
No, that's clear. Thanks for your help.
Great. If I could ask you to rate my answer before you go today please, otherwise the site doesn't credit me for the time spent with you. Good luck. Alex
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