Accountants fault???

adeeeeeee

Hi
In the financial tax year 2006/2007 I had my accountant do my self assessment tax return and provided them with all of the information necessary to do this.

That particular year I was pleased to learn I was due a tax rebate of almost £1200.

A few months ago I had a letter from HMRC telling me they will be investigating me for that year because of discrepancies. Now I have found out they want the £1200 back because the accountant did not declare the correct information. I do not have insurance for tax investigations but I am not happy with this situation and would like to know what steps I should follow now?

If anyone can help it would be much appreciated.

Cheers

LinasPilibaitisisbatman

Well it depends.

did the accountant follow best practice and perform their role with appropiate care and integrity. If so you have no steps other than finding a new one and voicing your concern.

If its neglience then you should seek legal advice and take action for any costs incurred by their errors.

Have you actually spoke to the accountant about it. It may be HMRC are in the wrong and misintepretating something.

adeeeeeee

Hi and thanks for your reply.

What I need to really find out is I pay my accountant to provide me with a service which I obviously have to provide necessary details to them.

I have provided them with all of the details for the tax return and they have not adhered to those details and made errors. ie they did not include information they were provided with to HMRC. After they sent the return in I was issued a cheque for £1200. Now that the inland revenue want that money back because of my accountants mistake, should, and can I, claim compensation and/or not pay it because of their errors??

LinasPilibaitisisbatman

It depends on what the errors are tbh.

As for compensation. What are you losing by returning the £1200 you were not entitled too. You cant claim the 1200 back.

Its quite possible the accountant followed perfectly logical thinking and the HMRC's outcome is wrong and needs disputed.

whitewing

Did they not provide the info to you for you to sign off?

(Not being narky, just wondering too how you stand in that respect.)

adeeeeeee

The errors are as follows:

Accountant provided with all earnings and information for tax year by myself.

Some of those earnings were not declared to HMRC through no fault of my own.

HMRC send cheque for £1200.

2 years later, HMRC investigate.

HMRC want £1200 back after investigation.

Cost to me was £200 for my accountants to do tax return.

I pay for a service which accountant did not give me correctly.

What is my legal posistion and what should i do next?

Cheers again.

Ste_C

It is self assessment - therefore the buck stops with you.

Were you given the figures to check before the return was submitted to HMRC?

adeeeeeee

no, it was sent off before i was supplied with a copy

Cook_County

What qualifications did the accountant have?

What experience did they have?

How long had they been in business?

How did they get the information from you, in what format?

Why did HMRC open a section 9A enquiry?

Who responded? How? When? Why?

Poppy9

Under self assessment it means you are responsible for your checking your tax return is a true account.

First step is to talk to your accountant about this error to establish what went wrong.

Is he part of a firm or an independent sole trader?

Does he belong to an accounting body?

Self assessment is not difficult, have you considered doing it yourself because if as you say you give your accountant all the necessary information you are basically paying him to fill in a form.

trevormax

didt you sign any declerations on the self assessment forms? These days they can be submitted online but you should still be signing the decleration to say that you agree to what is down on the SA forms.