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.