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Professional negligence against company’s accountants

Appointment Type: Expert advisor

Service Area: Professional Negligence

Industry: Legal and Professional

Sub-category: Accountancy and tax

Litigation Type: Other

Size of Case: Under £100,000

Appointed as expert for the claimant company bringing a claim for professional negligence against the company’s former accountants. It was alleged that the firm of accountants had recommended a dividend distribution scheme in contravention of tax legislation. Having followed the advice provided by their accountants the client was required to make significant PAYE payments and faced penalties for underpaid tax.

In concluding on the extent to which the actions of the defendant were negligent, we considered the requirements stipulated by the various professional bodies of which the defendant was a member.

Despite there being limited records of communications between the claimant and the defendants, we identified a number of failings in the actions of the accountants.