- Original Poster
- #1
Hello
I am looking for some advice. It recently transpired that my accountant assumed the VAT code for various expenses over a 2-3 period, resulting in overpaid VAT of around £30,000. This came to light after I repeatedly raised complaints about the bookkeeper working on my account, and finally these were taken seriously, resulting in seniors at the accountancy firm looking over things. Ultimately the bookkeeper was let go, because the management agreed that his work was not to an acceptable standard. The VAT was also reclaimed.
What I want to know is, am I potentially eligible for compensation from the accountant due to the reduced earnings my business would have experienced as a result of this error? For example, we would have used £30,000 extra of extra cash on buying stock to resell.
I am very conscious that ultimately, I sign off on the VAT returns before they are submitted. However, I also do expect my accountant to do their work to a sufficient standard, and that I shouldn't have to check every transaction to ensure they have done their job.
To add some context, I am generally unhappy with the work done by this accountant and want to switch firms as soon as possible. The only thing is I will face a hefty alignment fee for moving firms mid-year, an I am wondering I will be able to come to an agreement with my current accountant in which they offer some kind of compensation which will cover that alignment fee.
Thanks in advance
I am looking for some advice. It recently transpired that my accountant assumed the VAT code for various expenses over a 2-3 period, resulting in overpaid VAT of around £30,000. This came to light after I repeatedly raised complaints about the bookkeeper working on my account, and finally these were taken seriously, resulting in seniors at the accountancy firm looking over things. Ultimately the bookkeeper was let go, because the management agreed that his work was not to an acceptable standard. The VAT was also reclaimed.
What I want to know is, am I potentially eligible for compensation from the accountant due to the reduced earnings my business would have experienced as a result of this error? For example, we would have used £30,000 extra of extra cash on buying stock to resell.
I am very conscious that ultimately, I sign off on the VAT returns before they are submitted. However, I also do expect my accountant to do their work to a sufficient standard, and that I shouldn't have to check every transaction to ensure they have done their job.
To add some context, I am generally unhappy with the work done by this accountant and want to switch firms as soon as possible. The only thing is I will face a hefty alignment fee for moving firms mid-year, an I am wondering I will be able to come to an agreement with my current accountant in which they offer some kind of compensation which will cover that alignment fee.
Thanks in advance
