Dealing with matters of finance can be quite a complex area whether it is for businesses or for individuals. Fines imposed by the taxman can be stressful and also financially crippling if submissions are not sent in on time or are incorrect. If you are relying on an accountant or third party to help you with submissions or your accounts, the buck ultimately stops with you. However if your accountant has provided bad or negligent advice which has resulted in a financial loss for you or your business, you may well have a strong claim for professional negligence. In this article, can I sue my accountant for bad advice, we take a look at the circumstances and the process involved.
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For a free initial discussion on how we can help you sue an accountant for bad advice, get in touch with us today. We will review your situation and discuss the options open to you in a clear and approachable manner. Early expert legal assistance can help you evaluate your options, saving you money and also avoiding the stress of dealing with these issues on your own. Simply call us on 0345 901 0445 or complete our online enquiry form and a member of the team will get back to you.
What are the types of things an accountant can get wrong?
The work of an accountant can be very detailed and as such, there is a great deal of margin for error. Typically, examples of poor quality work include:
- Failure to detect fraudulent activity.
- Entering data incorrectly
- Not conducting a proper audit.
- Providing negligent tax advice.
- Not submitting tax returns in a timely manner.
- Incorrect categorisation of income and expenditure.
What qualifies as professional negligence by your accountant?
For a claim to be successful, there are a number of points that must be satisfied:
- You need to demonstrate that your accountant owed you want is referred to as “a duty of care”. This will normally take the form of a written contract between yourself and the accountant or alternatively evidence of an ongoing professional relationship between yourselves.
- Once this has been established, you need to be able to show that the accountant has breached this duty of care i.e their actions are not what could have been reasonably expected from a qualified accountant.
- You have to be able to demonstrate an actual loss.
- You have to be able to demonstrate that this loss occurred as a result of the actions of the accountant.
There is a difference between receiving poor service and service that is negligent so carefully consider the checklist above to ensure that you have a case for professional negligence. If you realise that the service offered by your accountant may have been poor but can’t be classed as negligent, you may be able to pursue a complaint against your accountant through the accountant’s regulatory body. There are a number of these organisations, each with their own code of conduct. Your complaint may result in disciplinary action being taken against your accountant but there is little chance of financial damages being paid to you.
Are there any other considerations to make?
There may well be time limitations to making a claim. This will normally be six years but can be varied depending upon the complexity of the claim.
There are alternatives to going to court. This includes what is known as pre-action protocols which are designed to find a route to settlement without the need to go to court. Remember, the court system can be expensive, slow and stressful and mediation may be a viable alternative.
How we can help
We have a proven track record of dealing with professional negligence claims against accountants. We will guide you through the process and ensure all checks are carried out swiftly and efficiently and we firmly believe that with the right solicitors by your side, the entire process will seem more manageable and far less daunting.
How to Contact our Commercial Litigation Solicitors
It is important for you to be well informed about the issues and obstacles you are facing. However, expert legal support is crucial in terms of saving you money and ensuring you achieve a positive outcome.
To speak to our Litigation solicitors today, simply call us on 0345 901 0445, or allow a member of the team to get back to you by filling in our online enquiry form. We are well known across the country and can assist wherever you are based. We also have offices based in Cheshire and London.
Disclaimer: This article provides general information only and does not constitute legal advice on any individual circumstances.
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