Tax error by my accountant; should he pay the fine?

[wstn_promise]

Since being self-employed a few years ago, when I used a local accounting firm to handle my VAT and PAYE etc, I have used the same firm to do my annual tax return. I still do, even though I am now back in salaried employment.

Each year I send them my information and they do the filing. My thinking is that they did all this for the company I had and for myself, and therefore if any issue about that time should come up now, they are still on hand to deal. They charge me £500 plus VAT for doing my income tax.

Last year they filed my return, but forgot to mention my private healthcare benefit from work. HMRC has now written to me demanding the tax, the interest and a fine. The total bill is being haggled over but looks like being about £1200, of which £90ish is the fine.

I think the accountants should pay the fine, because they were told of this benefit but plain forgot to declare it. I get that I'm liable for the accuracy of my return, but if all they are offering is a data entry service which I'm expected to check, well that's not worth £600 a year to me. I'll do it myself, won't make the errors and won't incur fines.

What does the panel think?

 

[Commercial]

IMO you are liable for the fine.
I had a similar circumstance a few years ago and I was left paying the fine.
However, it depends on the accountancy firm etc. Hopefully they will be reasonable

 

[Bronte]

I think the accountants should pay the fine, because they were told of this benefit but plain forgot to declare it.

Are your sure they forgot? If they did then they clearly did not do their work correctly. You mention £1200 but say the fine is only £90, is that correct? Has the accountancy firm confirmed they forgot to claim it? You mention HMRC and £, are you based in the UK?

 

[T McGibney]

This is obviously a UK query (OP, this is an Irish site) and HMRC policy regarding fines for minor errors may differ from that of the Irish Revenue.

In Ireland, taxpayers are not subject to fines on correction of minor errors in Form 11 returns although they obviously must pay up any tax shortfall and interest may be charged if the figures are substantial.

I have no idea what the story is in the UK.