Damages from another accountant.

Damages from another accountant.

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In February   2010  I  was   requested   by an   affiliate  of the  Certified Accountants  to undertake  the taxation work for   a new   client  which  he had taken  on. Having known this accountant for about three years   I agreed.

I was to undertake both the company’s corporate tax and the personal tax returns of the managing director.  The other accountant   would do the final accounts & book keeping.

In June of this year I issued two invoices.  One for corporate tax which was paid and one for personal taxation   which remains   unpaid.  I have sent  the usual reminders and  if necessary I was prepared  take the matter to the small claims court.

However  I  received  a reply from the client   claiming  that he  had  already  paid for the  personal  tax  as  it was included in the monthly  standing  order  paid    to the another  accountant.  

Naturally   I   took  this   up with  the other  accountant     and  he sent  me a copy  of  an email  which  he sent  to the client  in November  2009 and much to my  surprise  it states that the monthly  fee  includes   personal taxation.  He did say  that  latter on after I came on the scene  that  he  told the client that  I would issue separate invoices  however  I have not  received any written  confirmation of that.    In March   2010  I did  send  this accountant  a model  engagement  letter for him to use  for his accountancy service   which excluded   taxation however  it looks  as if he never sent it on to the client.

Therefore do  I  invoice   the accountant   directly     and  then  take him to court if he  does not pay   or do  I  issue   a writ for damages    against  him.   Should   I also  claim   damages  for  a loss of future  income.   In addition I am very tempted to make a professional complaint about him because he   withheld    vital information from me. 

Replies (7)

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By petersaxton
19th Nov 2011 07:11

More information needed

You say you issued two invoices but you didn't say who you issued them to.

My guess is that you issued them to the client of the other accountant. If the other accountant asked you to do the work then you should have invoiced the other accountant. I would cancel the unpaid invoice to the other accountants client and issue the accountant with the invoice.

I would ensure you know who your client is and issue engagement letters to the correct person.

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By uktaxpal
19th Nov 2011 08:31

agreed.Need an al with client re;taxation services.Discuss/with client and accountant.

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By andy.partridge
19th Nov 2011 09:33

If I were the the client . . .

I would not pay you unless I had signed a separate letter of engagement with you for the work. If that was not in place, that is not the fault of the other accountant.

If it is in place, you should pursue your claim against the client. If the client believes they have paid the other accountant for a service they have not received from them, that is a matter for them to discuss together and is not a reason for monies to be withheld from you.

 

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By ireallyshouldknowthisbut
19th Nov 2011 10:12

.

Or in other words, apologies to client for the confusion, pick up the phone and discuss with other accountant.

No lawyers required.

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By Monsoon
19th Nov 2011 11:08

Definitely discussion first

It's not nearly at a point for legal action or damages. If the client has a contract with the other accountant for personal tax, but no contract with it for you, then he owes you nothing. If he has a contract with each of you for personal tax, he owes both of you (and agreeing to pay 2 people for the same service is a bit silly). If your contract is with the other accountant, you take the issue up with him. Simples.

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By ShirleyM
19th Nov 2011 11:18

Isn't this a bit unusual?

Didn't you find out at the beginning who you would be invoicing?

If I undertake a task that I don't feel qualified for, or have insufficient experience, I discuss it with my client first, and allow them to decide if they want to engage the specialist direct (and therefore pay them direct) or for me to engage the specialist on their behalf. This makes a big difference to my liability!

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By [email protected]
23rd Nov 2011 19:34

Reply from OP

Thanks for the replies.    I am pleased with the comments  and take comfort from the suggestions. 

The client  was in fact  the very first client that  the other  accountant took on so  I was trying to find a way forward  which  might  not  prevent us from working together in the future.

 

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