Accountant makes tax credit claim in error

C

Clonback

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My accountant claimed a tax credit for me which covers 6 years and I am not entitled to the claim.Revenue now want the tax paid back 10,000 and a penalty of 5,000
Is my accountant responsible or will I have to pay?
 
Do you have a letter of engagement ? (although negligence should be considered separately)
As noted above did you approve the tax returns as I would be surprised if the accountant filed the returns without agreeing them with your first. He acts as your agent and you cannot abdicate responsibility for the tax return because he filed it on your behalf.
what tax credit was it and have you any idea why the accountant thought you were due it ?
have you spoken to your accountant ? What has he said ?
 
I don't claim any particular knowledge here, but it would seem obvious that you are liable to Revenue for the tax due, (you would have been liable for this if no error was ever made) and also for the penalty (Revenue don't care who made the error).

The question is, have you any claim on the accountant. I don't see that you have any claim for the tax, for the penalty perhaps, and maybe for some element of compensation.

In practice how would you get this. I suggest that you tell the accountant that you are unhappy and then if s/he doesn't address your situation you will look at

1. making a complaint to their professional body
2. contacting their public liability insurers to advise that you are considering a claim.
3. Making a legal claim

option 3 may be more trouble than it is worth
 
It depends how the error arose. If the credit was claimed based on information provided to the accountant which proved to be inaccurate, clearly it's entirely your issue. However, if the accountant has made an error, the "standard" deal in my experience is that he/she covers any penalty/interest and you pay the tax.
 
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