Hello All,
Wondering if you can help me with some advice on the below situation -
My accountant issued me with a CT rebate refund (large amount) in February of this year. I deposited the cash into my company account and used the funds for my use. Subsequently, in July, accountant calls me and mentions that the payment was issued in error so I/my limited company has to make a payment back.
In the meanwhile, as planned (prior to Feb), I have started the process to close my limited company as I knew I will not trading from April of this year. My accountant also knew about that.
In the middle of processing my final accounts, my accountant has started to demand the incorrectly issued payment. On probing the accountant further, I understand that the accountancy firm has been managing two companies with a similar name. So when requesting CT from the other company, they have incorrectly put my company's ID which meant the other company has made payment against my company ID. Given that my company is up to date with payments, HMRC automatically issued a refund for the amount which came straight through to me.
This is a school-boy error by the accountancy firm which they did admit to.
Now the accountant is asking me to make the payment to HMRC to clear the error payment and then go into debt management (as I am not trading anymore so no fresh funds coming into the account) to clear my own company closure liabilities.
I firmly believe, that the accountancy firm must take ownership and settle the matter with HMRC.
Also, as part of the final accounts, the accountant has added the error payment to my director's loan account, which means I personally will be liable for taxation.
What are my options here? Any recommendation?
Thank you.
Wondering if you can help me with some advice on the below situation -
My accountant issued me with a CT rebate refund (large amount) in February of this year. I deposited the cash into my company account and used the funds for my use. Subsequently, in July, accountant calls me and mentions that the payment was issued in error so I/my limited company has to make a payment back.
In the meanwhile, as planned (prior to Feb), I have started the process to close my limited company as I knew I will not trading from April of this year. My accountant also knew about that.
In the middle of processing my final accounts, my accountant has started to demand the incorrectly issued payment. On probing the accountant further, I understand that the accountancy firm has been managing two companies with a similar name. So when requesting CT from the other company, they have incorrectly put my company's ID which meant the other company has made payment against my company ID. Given that my company is up to date with payments, HMRC automatically issued a refund for the amount which came straight through to me.
This is a school-boy error by the accountancy firm which they did admit to.
Now the accountant is asking me to make the payment to HMRC to clear the error payment and then go into debt management (as I am not trading anymore so no fresh funds coming into the account) to clear my own company closure liabilities.
I firmly believe, that the accountancy firm must take ownership and settle the matter with HMRC.
Also, as part of the final accounts, the accountant has added the error payment to my director's loan account, which means I personally will be liable for taxation.
What are my options here? Any recommendation?
Thank you.
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