problem with accountant and maturinity funding

cmac

hi
i ve ended up in a real mess through my own stupidy, by totally trusting my accountant!!
I ve a really small buisness only 6 staff and its hairdressing so no big bucks sorry to say.
3 of my girls went on maternity last year.
only after 3 months of really struggling to pay all this I found out I could get the funding up front. My accountant didnt think it was a good idea (was it a better one to put me out of buisness?) I finally got the funding.

All ok untill now all maternity to the girls is now paid and im left with a 3K bill to pay back to the NI ???

I obvoiusly have ask my accountant what has happened only to be told that she doent really know its the tax office fault!

ive rang them (the NI) and got the figures that were sent out WAY too much I have to send a letter requesting a copy of all correspondence to find out whos fault this actually is

Does anyone know if I can do anything about this if its my accountants fault
Any views at all will be greatly received

thanks in advance

Savvy_Sue

I'm not sure I understand your post, who sent what figures where etc.

But ...

While this is being sorted out, I would either be looking for a new accountant, or at the very least finding someone else to do payroll, maybe just payroll, but someone who either understands it or is prepared to find out about anything at all out of the ordinary!

We contract our payroll out, and changed our service provider after a year in which I had regularly had the answer "I don't know, I haven't come across that before, you'd have to phone the tax office and ask them." To which I regularly wanted to say "Isn't that what I pay you for?"

We now have a provider whose response to questions is either "you need to do this" or "I'll check that and get back to you."

cmac

thank you for your reply.
i am trying to find out who calculated the figures as my accountant has blamed the NI office and they are saying "only send out what is requested" so I have requested copies of all letters etc. sent from accs to NI.
I am also looking for a new accountant so heres hoping?
do I have any redress on this matter

lincsdan86

Hi, Interesting read.

I would ask your accountant for all copies of their wages calculations. When people go on Maturnity leave, assuming they are entitled for you to pay them it. You are able to claim back the entire amount including the NI and then you are also compensated a little extra through the NI. So basically all the money you pay out is then set off against any other NI contributions you have to pay across. (if the rules havent changed). Assuming your accountant uses a payroll program, this should be done for them and it is pretty idiot proof.

If I was you I'd get yourself a better accountant, if not completely then just someone else doing your payroll and refuse to pay for your current accountants services until this has been sorted out.

Once everything is sorted you should get any over payments back from HMRC.

cmac

thank you
its a real mess I did go see them but sorry to say i didnt really understand and she was unable/unwilling? to make it any clearer.
just said she didnt know why it happened I think the problem has arose because she didnt tell me I could get the funding up front so for 3 months I was struggling to pay it all as my PAYE no where near covered it . When i found out by way of someone else and ask her she said it was a bad idea ??
now I find out why!!
Good plan to not pay them untill cleared up thanks

lincsdan86

What qualifications does this person have? Your accountant should have told you everything you needed to know when you asked about the Maturnity pay in the first place.

Do you know how much you have been paying the girls on Maturnity leave? Unless you have you own scheme in place, they should have received 90% of their wage for the first 12 weeks and then 90% or 117.18 whichever is lower for the remaining time.

The whole reason the funding is there is to help business much like yourself support the pregnant ladies and support your business through the period. How is that a mad idea? TBH your accountant doesn't install much confidence.

cmac

I know I have completely lost faith in them and yes the girls got the right amounts that much I do know.
Its really bad I have this 3K to pay back that I was unaware of as some of the money has been paid by credit to my NI account the cheques I received from NI were for approx the same amount I paid out to the girls.
Its really scary as I dont have that sitting in the bank to pay back. she has suggested that its paid monthly £400 at a time on top of my normal PAYE

lincsdan86

You might want to ring up HMRC to discuss the matter and see if they would agree to paying it back over a period of time. Explain the whole situation with your accountant, as it wouldnt hurt. I would definately want to know how she has worked things out though, as it is a little shocking that she has got it so wrong. I wish you luck with you situation and keep us up to date with it all.

cmac

Thank you for your support and help i will post on here as it unfolds
thanks again it helps to know your not alone
cmac