Accountant made a errors

**malvolio** · 18 December 2012, 07:59

If your reserves are that marginal your're doing something wrong. Perhaps, as a director of a company, you should have a better idea of what you are doing with your money? And on that basis, probably going it alone is not the smartest idea...

And what do you want us to say? Sue them for compensation? They are your advisors, you are the director, it's your legal responsibility to understand how your company is being managed and what its liabilities are.

Gestures are meaningless, YourCo's only sensible claim is for the lost interest and bank charges incurred by going overdrawn.

HTH. Probably doesn't...

**pmeswani** · 18 December 2012, 08:38

Originally posted by Southern Fairy View Post

Hi all,

I am having a problem and a friend of mine recommended asking for some advice on here.

I have been contracting for 4 years now and use account services by Brookson. They cost around £130 a month minus vat and for the last few years have been fine.

At the start of 2012 I suddenly found myself being called by my bank as my Business account has gone overdrawn.. So I logged in immediately to find my corp tax and QT VAT bill had gone out which left me several thousand in the red. I thought it had to be a mistake as I only take out what they tell me to do so via payslips.

<snip>

I am convinced now I should do my own accounting and does anyone have any good resources I can download to assist me?

Appreciate any feedback.

My first question to you is why didn't you know about your Corp Tax returns due date before the payment went out of your account? My second question would be, when you received your Corp Tax documentation to sign, why didn't you read it fully to make sure everything was done correctly?

**EMEAfixer** · 18 December 2012, 09:15

mistakes can happen

Originally posted by Southern Fairy View Post

Accountant made a errors

Well, as you can see above, mistakes can happen. Your accountant is human too. As director you were ultimately responsible, and I would say you should have noticed the car lease and mileage were not correct. You do review your monthly P&L summary, don't you?

I would not think you are entitled to any compensation here, so I would advise you graciously accept any small gesture they might make when they respond on Wednesday.

**Sausage Surprise** · 18 December 2012, 09:20

I pay my corp tax and VAT by bank transfer and would know if making such a payment would make me overdrawn.
Who paid yours??
Do you not control your company account?

**d000hg** · 18 December 2012, 09:27

Originally posted by malvolio View Post

If your reserves are that marginal your're doing something wrong. Perhaps, as a director of a company, you should have a better idea of what you are doing with your money? And on that basis, probably going it alone is not the smartest idea...

Totally disagree, running with less than £5k to spare isn't marginal.

However agree with the points about why you didn't check your CT return... even if you didn't spot the missing lease (quite possible) didn't you know in advance how much you were going to pay?

**psychocandy** · 18 December 2012, 09:36

Got to agree with some of the posters here.

Possibly the accountant ****ed up but ultimately its your shout. You can't leave it all to them without at least understanding whats going on.

My accountant is excellent and so far never gets anything wrong. Doesn't stop me querying things after I check it and think things are wrong or I don't understand. So far its been me wrong every time so far!!! The point is you need to understand yourself.

**BA to the Stars** · 18 December 2012, 10:29

You should be setting aside amounts from the company income received to cover your VAT & Corporation Tax. I would suggest that you set up a seperate account and transfer the appropriate amount each time you receive payment.

**northernladuk** · 18 December 2012, 10:42

Reading through your post and the catalogue of errors I am finding it hard to see how you can point the finger at your accountant..

At the start of 2012 I suddenly found myself being called by my bank as my Business account has gone overdrawn.. So I logged in immediately to find my corp tax and QT VAT bill had gone out which left me several thousand in the red. I thought it had to be a mistake as I only take out what they tell me to do so via payslips.

How often do you actually log in to your bank account to check it? You know you are legally recognisable for your accounts? Accountants advise you what to do, you are still responsible for it.

I have reduced this to just shy of £1000 in the red and by the end of Jan this will be clear by reducing dividends.

You won't be reducing dividends, you will be stopping them. Dividends can only be paid from profit so it is possible you have made a number of illegal payments already. I would go back to your accountant and work through with him what was paid from profit and what wasn't.

Where do I stand with regards to seeking compensation from them? I am not after blood nor the full amount, but a gesture of around 50% would be nice

If you have been fined by HMRC I would expect that back but you are responsible for your finances so I can't see why the accountant should pay up.

Anyone else had this issue before and how did you handle it?
I am convinced now I should do my own accounting and does anyone have any good resources I can download to assist me?

Speak to your accountant is the way to deal with the issue. And about doing your own finances?? Really? I would just take your current responsibilities a little more seriously before dumping your accountant IMO.

I would also agree running your account so you cannot cover a 5k deficit is about as marginal as it gets and this situation is evidence why.

I would suggest you go speak to SJD. They do a spread sheet you fill in which allows you to track and account for every single penny. You can argue you are doing all the work and they just crunch the numbers at the end of the year but knowing what is in your bank to the penny at the end of every month is invaluable to me. I know exactly what my finances are doing and let the accountant do the stuff I don't understand.

Interesting they are letting you do a car lease when nearly all the advice on this forum is not to bother with them as well.

**pmeswani** · 18 December 2012, 10:44

There is a niggling feeling that the OP is spinning a story here. However, the one question I have is... can you pay your Corp Tax by Direct Debit? I have never had this arrangement, and haven't researched it either. For VAT, I pay by Direct Debit. I still can't believe the OP didn't know beforehand about his Corp Tax obligations, as well as how much is in their Business Bank Account. I do wonder who is actually the Directory of the OP's Ltd Company.... I smell a fish or a rat, not sure which one yet.

Accountant made a errors