Accountant responsiblilty to file returns

Accountant responsiblilty to file returns

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A friend of mine had her husbands company closed because Companies House did not receive a return. I have been told the the return was filled out and returned to the accountant (ACCA qualified) to agree and forward to Companies House. According to Companies House they had contacted the Accountant a number of times notifying him of the outstanding return and their intentions to close the The Accountant has resigned with a letter of appologie, but in the mean time the directors have had to set up a new company and buy back the old one.

Is there any come back on the Accountant?
Will this effect the Directors "credit rating" or reflect badly on the directors?
Dodie Napier

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David Winch
By David Winch
10th Nov 2006 21:57

Possible claim for negligence

Dodie

The directors should seek legal advice. They may have a basis upon which to sue the accountant for negligence and recover from him what it has cost them to sort out the problem. The accountant will have insurance to cover such claims.

It might be the old company which should make the claim rather than (or perhaps as well as) the directors.

Very much depends upon the particular facts in terms of who did what and when.

It will also be relevant to know what the directors did in order to deal with the problem. Did they resolve it the cheapest and best way?

David

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By AnonymousUser
10th Nov 2006 17:22

Company's Officials Responsibility
The responsibility is that of the company’s officials i.e. Co. Sec and directors to ensure filing is done within the time limit.

Co. House will write to the registered office in relation to overdue filing not the accountant, unless the reg office is at their place.

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By User deleted
10th Nov 2006 19:04

Return fee, registered office
Some questions...

1) The return fee - was a cheque issued? who was it made payable to? Did the cheque get cashed ? Maybe point 4) below applies ?
2) Registered Office - presumably at the accountants' office ?

and because there's often additional facts that might be relevant...

3) Was there any fee or other ongoing dispute with the accountant
4) Did the directors expect the accountant to pay the annual return fee even if the company had overdue unpaid fees and then "whistle" for his money ?

If 2) applies I believe there most certainly should have been a written warning of the consequences of non-filing of returns issued by the accountant to the directors

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