accountant claiming I was personal client

suewell

Free Member
Feb 29, 2012
9
0
Im new on here, so not sure how this works, but would greatly appriciate any help at all
In 2001 I as director of a Limited Company approched a local accountant I found in the Yellow Pages to do the accounts for my Limited company started in 2000, she agreed to the work, in 2006 I moved to the Midlands and had paid her all I owed her except r £218, I then opened another company, the first was no longer trading due to family difficulties, however I was told I still had to do company returns and bookwork for the original company as it was a year behind (which has contanstantly confused me) The new Ltd company was formed which was clothing retail, she then asked me (as she was still having to do returns for the old company), if I wanted her to complete the returns for this company and the first 6 years had run smoothly although her fees had become pricey and I had a uninformed price hike in 2007. She told me she worked on an hourly rate back in 2000, then in 2008 I visited her office to find a student doing my bookeeping, this has not been reflected in her invoice.
Over night my personal life become a mess and with an autistic child, and marital problems I dont know how I have survived the last 4 years, I had to sell my house and now my situation is volitile to say the least. In 2007 I sent her an email and asked her about making the origonal company Dormant, we spoke on the phone and I assumed this had happend until 1 month prior to having to file companies house returns and I had a late return penalty that year of £750. Still this company was not trading but filing a year late...for some unknow reason still baffling me. the second company's books were completed on time, but not the following yearfine with a £250 . With the downturn that hit the retail industry everyhting went bad so quickly. The short of it is first company started in 2000 was regretably struck off in 2001 and the second company I have applied for a DS01 and will be disolved in March 2012, I informed her a creditor this was going to happen. She is now taking me personally to the small claims court for the amount unpaid. There was never a contact or letter of engagement between us, or a personal liability for debt, she says that I was her client not the companies although ALL work was for the company. All the work carried out by her was only tax returns PAYE, end of year, Web filing for Companies House etc nothing personal for me. On one hand she become a friend so I feel guilty, (never mix business with pleasure) on the other hand I have asked for a breakdown of invoices which she has given me is partially broken down, I still have not recieved any agreement through the post and now she says it wa a verbal contract.... I dont know where I stand Im now having sleepless weeks let alone nights. I might add that hers was the only debt remianing of the two companies and I did try offering her small payments from the company rather than paying her nothing but she was insistant that it was all or nothing I also told her that I was in personal financial trouble back in 2008. Im at my wits end if anyone can help :redface::|
 

MyAccountantOnline

Business Member
Sep 24, 2008
15,241
10
3,323
UK
myaccountantonline.co.uk
If the accountant provided services to your company (and you gave no personal guarantee that you'd pay them personally if the company wouldnt/couldnt) she is in the same boat as any other creditor and wont be paid for the work done if the company has no funds to pay/doesnt exist.
 
  • Like
Reactions: suewell
Upvote 0
Business Listing
Nov 4, 2005
13,090
2,896
Just to note for other reading this - accountants who are members of professional bodies have to issue such letter of engagement (LOE). The LOE sets out the scope of work, who the 'contract' is with etc.

It is also necessary to review the LOE on a regular basis for long standing clients to ensure the terms are still valid. The LOE should be in place to avoid any confusion etc.

My advice to anyone who will listen :eek: – make sure that you have one with your accountant.

My advice here – I think the accountant could be trying it on!:eek:

If the invoices for services were made out to the limited company and the amounts were paid from the Limited company bank account then this will IMO show where the relationship lies.

Write back to her and advise her of this – if that fails then is there the possibility of you applying for legal aid or do you have legal cover on your home insurance policy so that you can get help to fight the case in court.

Good luck
 
  • Like
Reactions: suewell
Upvote 0

MyAccountantOnline

Business Member
Sep 24, 2008
15,241
10
3,323
UK
myaccountantonline.co.uk
  • Like
Reactions: suewell
Upvote 0

Alpha

Free Member
Feb 16, 2004
3,192
474
64
West Midlands
Thay are quite probably trying to get you to pay by transferring the debt to you personally (something which is easily refuted via small claims court but you have to respond)

The only possible personal debt that I can think of might be for producing a directors personal self assessment return but that should be defined by any letter of engagement.
 
  • Like
Reactions: suewell
Upvote 0

Strontium Dog

Free Member
Dec 2, 2008
430
83
My LOE says that the directors become personally responsible for pmt if the company becomes insolvent...

I think you will find that this needs to be signed as a deed to be effective. There is also the possibility that the person signing it should have been advised to take independent legal advice, and signed a waiver if they did not wish to !
 
Upvote 0

Latest Articles