PII Claim

PII Claim

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I’ve just been successful in securing a new client who’s last Accountant run up more that £2k in penalties from HMRC in just over two years due to late filing, not filing etc. So what, if any, are the chances that my client could claim from  their previous accountants PII for negligence, providing they had the insurance, and how do we get the policy details if they did?

Replies (3)

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Stepurhan
By stepurhan
07th Aug 2014 14:03

WE don't

Do not get involved in a dispute between a client and their previous accountant. You are only hearing their side of the story and could cause a lot of trouble for yourself if it turn out not to be entirely true.

If the client has genuinely suffered losses that are a result of the previous accountant's actions (or inactions) then a claim is likely to be good. All you can do is advise them what penalties have arisen and why. It is up to them to contact the previous accountant and seek legal advice on pursuing a claim if they wish to.

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By johngroganjga
07th Aug 2014 18:20

I essentially agree with the above, although I think you can be a bit more pro-active than @stepurhan suggests.

Firstly and most importantly take everything the client says about this with a very large pinch of salt. They would say that the late filing penalties were the accountants' fault wouldn't they?

Play devil's advocate and cross examine the clients very closely on whether the accountants may have a good defence that the clients were late in providing necessary information. Bear in mind that they will be reluctant to admit this.

If you think there may be a good claim to be made after you have done this, by all means report back.

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avatar
By User deleted
07th Aug 2014 19:23

You can see it now...

You can see how the conversation goes:

Client: I had £2k of late filing fees because of that accountant

You: Oh dear, that's not good. Did they say why they filed the accounts late?

Client: No, they were just trying to push the blame onto me and making excuses

You: Why did they blame you?

Client: They said I'd not given them the information soon enough but that's rubbish

You: When was the deadline for filing?

Client: The 31st

You: And when did you pass them the information?

Client: I emailed most of it at 8.30pm on the 30th and the rest just before lunch the next day

You: Ah well that could be the problem....

Client: I don't see why, I mean, how long does it take to add a few figures up and press a button? I could do it myself but the wife says it looks better to the Taxman if someone with Accountant in their title does it. And then they wanted me to check the accounts before they'd submit them! Can't they check them their end and get them right? Why do I need to do half the job for them? 

You: Oh dear, I've just remembered that we're not actually taking on new clients this month - HMRC won't let us take on more than a certain number a month as it overloads their systems. I know, it's ridiculous, but what can you do? But do feel free to ring back in a couple of months or so...

You - note to self - install caller display....

 

Would you count it as 'successful' still or 'a hideous mistake'?!

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