Elizabeth Wilkinson and Mike Carter from our Dispute Resolution team share their guidance on whether you can sue an accountant for negligence.
Accountants are often heroes; putting plans in place to minimise tax liabilities and ensuring compliance with all the tax laws. But when it goes wrong and you are the one counting and paying the losses, what can you do?
If an accountant has been negligent, such losses may be able to be claimed from the accountants, or more likely, their insurers. Some tax errors could constitute an offence and lead to criminal charges against you or your business, so it is vital you have the errors rectified and then reclaim any losses.
Examples of negligence for which you may have a claim include:
- Providing wrong tax advice
- Making accounting errors
- Completing tax returns incorrectly
- Inaccurately valuing company assets, liabilities or shares
Complaints Against your Accountant
Accountants must exercise the skill and care which would be expected of a competent accountant.
If they fail to so this, leaving you out of pocket as a result, then you can look to them to reimburse you.
Whether you are claiming from a personal or business perspective, you must be able to prove that the loss was caused directly by the negligence of your accountant – “a causative link” – rather than other factors, such as the economy.
Process of Suing your Accountant
First, you should make a formal complaint through the accountancy firm’s complaints handling procedure. Details of how to do so should be included in their terms and conditions, often found on their websites.
Usually, you have 6 years to bring a claim from when the loss was suffered. In certain circumstances, it is 3 years from when the negligence was or could have been discovered. Our experts strongly suggest that you seek specialist advice at the earliest opportunity so that legitimate issues can be identified and resolved appropriately.
Independent accountants can act as expert witnesses to help assess whether the accountant was negligent or not and, if necessary, help to calculate the amount of your loss.
Contact a Professional Negligence Solicitor
There’s no denying that choosing to sue an accountant can be daunting and there can be lots of evidence required to have a strong chance of success in your claim.
Having the support of an experienced professional negligence lawyer can stand you in great stead to succeed in your claim.
Our team will first discuss the situation with you to identify and evaluate the claim you wish to make. If they believe they can get the desired outcome for you, they will be with you every step of the way. We encourage out of court dispute resolution, but if required we will fight your case in court.
Don’t leave it to stir; get a professional opinion as soon as you spot something unusual. The sooner something is identified, the quicker it can be rectified.
Get in touch with our professional negligence team using this contact form or give us a call on 0161 969 3131.