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Accountant Issued incorrect payment

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    #11
    Originally posted by contractDudeUK View Post

    Is there a legal route that I can take here?
    Yes.
    1) Pay HMRC what you owe them.
    2) Sue the accountant for losses. But that won't be the money you owe the HMRC. The best you'll get from them is money for your time spent sorting it, any HMRC fines and perhaps some professional fees (lawyers and other accountancy firms). IMO it's probably not worth the hassle.

    If you don't have the cash, contact HMRC and tell them what's happened. In this circumstance they'll likely be more able to help by giving you some more time to pay.

    No matter what.... You owe it... you gotta pay it...
    See You Next Tuesday

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      #12
      Originally posted by northernladuk View Post
      Do either of you have Freeagent? Could either of these situations have been avoided if you were on it? Genuinely interested.
      I don't see that it would stop a mistake like this arising, but assuming the receipt was put to "Refund" --> "Corporation tax", it would throw the figures. Whether it would be/how long until it's picked up on depends on how frequently client/accountant looks at the figures, and how savvy they are. The accountant's evidently spotted the mistake further down the line.

      It sucks, and the accountant have clearly mucked up here, but I don't see that it makes them liable for repaying a tax amount that was incorrectly paid to you. Potentially they might refund a portion of their fees as a goodwill gesture.

      Comment


        #13
        Originally posted by Maslins View Post
        I don't see that it would stop a mistake like this arising, but assuming the receipt was put to "Refund" --> "Corporation tax", it would throw the figures. Whether it would be/how long until it's picked up on depends on how frequently client/accountant looks at the figures, and how savvy they are. The accountant's evidently spotted the mistake further down the line.

        It sucks, and the accountant have clearly mucked up here, but I don't see that it makes them liable for repaying a tax amount that was incorrectly paid to you. Potentially they might refund a portion of their fees as a goodwill gesture.
        But Freeagent shows clearly what the figures should be. If they just gave him the printout of the returns it could be difficult to spot the mistake but Freeagent gets it pretty close and shows the figure pretty clearly. If Freeagent said X and there is a big difference with the refund the alarm bells should be ringing.
        'CUK forum personality of 2011 - Winner - Yes really!!!!

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          #14
          Originally posted by northernladuk View Post
          But Freeagent shows clearly what the figures should be. If they just gave him the printout of the returns it could be difficult to spot the mistake but Freeagent gets it pretty close and shows the figure pretty clearly. If Freeagent said X and there is a big difference with the refund the alarm bells should be ringing.
          My understanding is the source of the problem actually relates to another poor sod of a client (not the OP). The accountant told them to pay their CT, but gave them the payment reference relating to the OP by mistake.

          So that company has made a payment of their CT in good faith, but HMRC won't have it, as it was allocated to the OP's company instead, then refunded to the OP. Hence that company will be pestered for a payment that in their mind they've already made.

          FreeAgent can't stop an accountant giving someone the wrong payment reference.

          At some point the client who made the payment or accountant might spot that that person's accounts showed the CT as nicely clear, yet HMRC showed it as still due. Or the OP/accountant spot that he got a refund that wasn't expected. It obviously has been spotted now, but the OP already got the money and from the sounds of things has spent it.

          You would hope that a savvy client getting a big CT refund they weren't expecting might query it...but I appreciate some will just be of the view that the accountant/HMRC must be right and go along with it.

          Comment


            #15
            Originally posted by Maslins View Post
            My understanding is the source of the problem actually relates to another poor sod of a client (not the OP). The accountant told them to pay their CT, but gave them the payment reference relating to the OP by mistake.

            So that company has made a payment of their CT in good faith, but HMRC won't have it, as it was allocated to the OP's company instead, then refunded to the OP. Hence that company will be pestered for a payment that in their mind they've already made.

            FreeAgent can't stop an accountant giving someone the wrong payment reference.

            At some point the client who made the payment or accountant might spot that that person's accounts showed the CT as nicely clear, yet HMRC showed it as still due. Or the OP/accountant spot that he got a refund that wasn't expected. It obviously has been spotted now, but the OP already got the money and from the sounds of things has spent it.

            You would hope that a savvy client getting a big CT refund they weren't expecting might query it...but I appreciate some will just be of the view that the accountant/HMRC must be right and go along with it.
            Ah. Right. Thank you for that.
            'CUK forum personality of 2011 - Winner - Yes really!!!!

            Comment


              #16
              OK, genuine question not trying to bait anyone.

              For those who use an accountant, do you not have access to your online HMRC account? Or emails from HMRC when submissions are made?

              This could easily have been avoided if you had looked at either of these two bits of information.
              Originally posted by Stevie Wonder Boy
              I can't see any way to do it can you please advise?

              I want my account deleted and all of my information removed, I want to invoke my right to be forgotten.

              Comment


                #17
                Originally posted by SimonMac View Post
                OK, genuine question not trying to bait anyone.

                For those who use an accountant, do you not have access to your online HMRC account? Or emails from HMRC when submissions are made?

                This could easily have been avoided if you had looked at either of these two bits of information.
                I have access to mine and I can submit via Freeagent but my accountant does do it. Don't see any emails to be fair so might look in to that.
                'CUK forum personality of 2011 - Winner - Yes really!!!!

                Comment


                  #18
                  Originally posted by SimonMac View Post
                  OK, genuine question not trying to bait anyone.

                  For those who use an accountant, do you not have access to your online HMRC account? Or emails from HMRC when submissions are made?

                  This could easily have been avoided if you had looked at either of these two bits of information.
                  Think I fall into NCOTBAC territory today, I didn't know I had an online HMRC account... I do now and will take action, but this wasn't my default level of awareness.

                  Comment


                    #19
                    Originally posted by fibio View Post
                    Think I fall into NCOTBAC territory today, I didn't know I had an online HMRC account... I do now and will take action, but this wasn't my default level of awareness.
                    Sometimes it's better to say nothing.
                    'CUK forum personality of 2011 - Winner - Yes really!!!!

                    Comment


                      #20
                      Originally posted by contractDudeUK View Post
                      Funds were used for paying pensions+dividends+salary.
                      Were the dividends legal if not having this money means that the company is in debt? If so then you will need to rectify that problem as well and sort the tax and NI due.
                      I'm not fat, I'm just fluffy.

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