Is my accountant accountable? Lost tax refund

Rosie_Lee_2

I ran a very small business between 2007-2010, whilst working part time for a government department. I hired an accountant at over £300 per year to complete my tax self-assessments for my business. In this time, I only met her once, dealing with her secretary when I went in to drop off my accounts (which I had prepared myself).

Last month, on MSE's advice, I checked my tax code to find that I'd been on emergency tax since 2007. The accountant hadn't asked me whether I had any other employment, and I hadn't thought to tell her. I know it now sounds daft, but I assumed that my National Insurance number would hook it all together at HMRC, and they would realise I had two incomes. HMRC now advise me that I can't claim back the £1,200 tax overpaid for 2007-2008 as I have gone over their 4 year time limit. My accountant says this is my fault, as I should have informed her about my other job.

Is there anything I can do to get my £1,200 back?

bris

I wouldn't think so because you did not disclose all your financial affairs to her. If you handed her you records then you would expect that to be all you records. By holding back details of another job she was never going to be able to give an accurate position to your tax affairs.

Wywth

Rosie_Lee wrote: »

I ran a very small business between 2007-2010, whilst working part time for a government department. I hired an accountant at over £300 per year to complete my tax self-assessments for my business. In this time, I only met her once, dealing with her secretary when I went in to drop off my accounts (which I had prepared myself).

Last month, on MSE's advice, I checked my tax code to find that I'd been on emergency tax since 2007. The accountant hadn't asked me whether I had any other employment, and I hadn't thought to tell her. I know it now sounds daft, but I assumed that my National Insurance number would hook it all together at HMRC, and they would realise I had two incomes. HMRC now advise me that I can't claim back the £1,200 tax overpaid for 2007-2008 as I have gone over their 4 year time limit. My accountant says this is my fault, as I should have informed her about my other job.

Is there anything I can do to get my £1,200 back?

If you were running a business, and presumably quite a successful one if you thought it wise to spend £300 per year on an accountant, and the accountant was unaware of your other job, then presumably she input your self assessment based on your your own self employment only.

How then do you calculate that you overpaid tax by £1200 per year from your other employment? Presumably most or all of your personal allowance was taken up by your own self employment profits?

Remember that whether or not you use an accountant, you are responsible for the inputs submitted regarding your own financial affairs to HMRC.

Mistral001

My accountant always asks me if I have any other income before coming up with a figure for how much I have to pay in tax.

Accountants always have disclaimers about their accounts being subject to information supplied to them so perhaps you need to read the precise wording on the disclaimer.

The first meeting with your accountant could be important. I am sure you did not deal with just the receiptionist then. If the PAYE job was mentioned by you at that meeting then that might be significant. If it was not and you just talked about your self-employment then the disclaimer would probably cover the accountant.

Rosie_Lee_2

No, it was not a successful business. It made losses every year, until I ran up such huge debts I closed it down. It provided my partially sighted partner with some sort of employment. I hired the accountant because I didn't trust myself to do the forms correctly.

I just assumed that HMRC would link my NI number from my business with my NI number from my job. But they clearly don't work that way. I'm a very honest person, trying to help someone out. I was certainly not witholding information on purpose. Surely my accountant should have asked?

nickj_2

the only thing about hmrc you can assume is that you can't assume that they will do anything

McKneff

No, it isnt up to your accountant, it is up to you to give the accountant all relevant details.

When it comes to government never, ever assume anything.

It really isnt your accountants fault.

Rosie_Lee_2

Thanks for your replies, although it's not what I was hoping for! Shortly after I engaged the accountancy firm it was taken over by my present accountant, which was the only time I met her. I can't remember now whether PAYE was discussed at the meeting with her or her predecessor

antrobus

Who actually completed and submitted your self assessment returns to HMRC?

Mistral001

It would appear here that the accountant simply told you that you had no profit every year and that was that. There was no need for them to deal with HMRC at all. Easy money for them.

It all depends on what they were hired to do I suppose. Were they hired to do the accounts for the business or to do that and fill in your tax returns.

I am a lillte confused about the whole thing myself as my accountant effectively fills in my tax return over the internet for me each year when they submit my profits to HMRC. I am always a bit nervous of this and wonder sometimes whether there is something I am missing. the old way of filling in a tax return every year by yourself by hand was tedious but maybe safer.

Rosie_Lee_2

I assumed (again - it's my downfall!) my accountant was completing and submitting my self assessments on line, on my behalf. Maybe I should check with her.

She used to give me a printed summary of the accounts I had prepared. This comprised of files of all my receipts, referenced to bank statements, all documented in a spreadsheet I set up and completed for her.

It was a huge amount of effort on my part, and did seem like easy money to me. I went along with it for peace of mind, as I was so concerned about getting something wrong and ending up in trouble with HMRC.