Engagement letters

Engagement letter issued 1 year after work completed

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ICAEW registered accountancy firm completed work for me in Septemeber 2021 including VAT return.

I signed an engagement letter in Septemeber 2022, for ‘Annual accounts year end 2022’ and ‘corporation tax return 2022’.

It has turned out they have completed the VAT return with many mistakes and given incorrect VAT advice, which in turn have resulted in every other return since 2021 being incorrect. – This has been confirmed by the new accountants ACCA reg taking over.

Not only did this firm submit this VAT return incorrectly they have also:

Failed to submit SH08 signed in November 2021 – missed deadline notified us after the tax year - 24th of April 2022

Submitted director P60 before end of LTD tax year – after we had issued formal complaint and professional clearance had been sent. – With incorrect salary and employment address.

This firm keep referring to the engagement letter signed in Septemeber 2022 – stating they did not agree to do the work, so it was our responsibility.

Multiple other mistakes 

The accountant spent 7 hours on this VAT return.

They state that the VAT return was submitted on compliance only. What does this mean?

Can they refer to an engagement letter that was issued a year later ?

Replies (4)

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By lionofludesch
25th Nov 2023 13:03

What are you looking for from us? You know it's a poor service, we know it's a poor service and, more than likely, the accountants you dealt with know it's a poor service too.

But this is a forum about accountancy. You're telling us about a legal problem which you have. You need a legal forum.

If you've suffered a financial loss as a result of this, ultimately, you're going to need to weigh this loss against the costs of recovering it through legal action .

Thanks (3)
By Calculatorboy
25th Nov 2023 20:21

First complain to the firm, if not satisfied complain to the icaew ( its usually all explained in the engagement letter )

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Replying to Calculatorboy:
By I'msorryIhaven'taclue
25th Nov 2023 21:48

I'm with Lion on this. Let's call a spade a spade, this is pure bellyaching !

OP, you need to have suffered some amount of financial loss (or, I suppose, and for the sake of any purists, some degree of pain or sufference) in order to commence an action for negligence. Go look up "tort of negligence"and see for yourself the parameters.

And, come to that, you're asking the panel to put one of their own to the sword. This week DJKL for frying Mars bars in an effort to remove the VATable chocolate; next week the rest of us for behaving like the Citizens' Advice Bureau in dishing out impromptu and unpaid for advice to the likes of you.

Are you not aware of the age-old maxim that to inform is dishonourable? Go wake up and smell the coffee!

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Replying to I'msorryIhaven'taclue:
By Justin Bryant
27th Nov 2023 10:39

The tort of negligence is more appropriate to non-contractual situations. See: https://www.accaglobal.com/gb/en/student/exam-support-resources/fundamen....

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