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renegade1972

accountancy fees dispute

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hi,not sure if im posting in the right section,but here goes

my friend had an investigation carried out by HMRC and subsequently was fined a large sum of money,during the whole episode his accountant was abviously complying with HMRC for any info etc that they needed,,he is a sole trader self employed,,,his wife does all the book keeping and sorts out all the vat etc,,so normally the accountant will receive the books already sorted,,he then sits down totals everything up and submits the self assesment,,,the accountant in this case has hardly any work to do as its already been done by my friends wife,,,,i also had this same accountant for 4 years and it was exactly the same with me,,,,i would log all my incomings and outgoings into a book and all he had to do was add up the columns and submit my assesment,,and he charged me nearly 500 quid for his services,,anyway i have since changed accountant.

after the investigation he then receives a bill for just over £4000 for the investigation which is outrageous to say the least,considering most of the work was carried out by his wife

also he was fined £3000 for claiming a wage for his wifes book keeping services but wasnt paying stamp duty for her which the accountant told him this was ok to do,but after the investigation it transpires he should of been paying stamp duty,,,in the interview room when this question was presented to the accountant he had no reply

so now hes at the stage where the his accountant of just over 30 years is now threatning recovery action etc etc unless the bill is payed up immediately,,,

we really need some info on where he stands legally and what the best course of action would be

any help would be much appreciated

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Make the 'Professional Negligence' of paying his wife without a stamp due to advice given, the mainstay of this. Your friend could also counterclaim that because he was misled, is due compensation of the amount he was fined from the accountant.

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