Is my friend, an accountant negligent?

Is my friend, an accountant negligent?

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I am pretty active in claiming capital allowances for our clients property portfolios. I was chatting to an accountant and friend at a seminar, who said he refuses to even consider reviewing his clients property portfolios because he says its down to them. He put down the telephone on a broker one of his clients found.

His letter if engagement doesn't specifically include or exclude this, although his website talks about being pro active.

Do people think my friend is being negligent , could this put him in trouble in years to come?

Replies (5)

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By johngroganjga
25th Feb 2015 12:07

If he is missing opportunities to claim capital allowances for clients, that a court finds that a reasonably competent accountant should have been expected to find, the answer to your question is yes.

But there is a difference perhaps between identifying and claiming capital allowances on new expenditure that clients incur, and identifying missed opportunities in previous years. 

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By pauld
25th Feb 2015 14:49

I wonder

You seem very concerned about your friends activities i.e. checking his letters of engagement, reviewing his website. Is it possible you and are friend are one?

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By User deleted
25th Feb 2015 14:52

If he's happy ...

... that such claims are the responsibility of the taxpayer, and nothing to do with him, presumably he would have no objection to referring his clients to you to deal with their capital allowance claims?

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By Matrix
25th Feb 2015 16:30

Capital allowances on such portfolios is a specialist area incurring high professional fees. I expect a cost/benefit exercise would be necessary.  I don't see that you have any evidence that he has failed to make claims.  Maybe he should refer clients to a specialist to cover himself if it is not his area, have you suggested this?

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By dropoutguy
25th Feb 2015 17:08

Let's tweak it a little

A client trades from Premises A.

They sell and move to premises B, which they themselves build.

What would a competent accountant do to ensure that capital allowances were claimed properly in those circumstances?  And when would his/her responsibility start?

 

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