Your Professional Negligence Claim - Recovering Losses Due To Accountant Negligence

Professional accountants offer services such as VAT reporting and annual/monthly accounting. They deal with these tasks in line with statutory reporting regulations. This is why many individuals and businesses rely on their services.

Our accountant is an invaluable member of our management team because they possess specialist knowledge that we do not. We can't normally deal with every aspect of our business or financial affairs and this is why we outsource parts to qualified professionals.

We rely on our accountant to make sure we comply with any relevant regulations in what is an increasingly complicated system. But what should we do if we discover that our accountant has made a mistake that will cost us money. Mistakes are made. Accountant negligence does exist. But do we have any recourse under law if we suspect accountant negligence?

Thankfully the answer is yes. In English law there is the rule of "reasonable reliance" which establishes that a "duty of care arises" when a person gives advice to another person whom he knows will place reliance upon that information.

Of course proving accountant negligence may not be a straightforward matter. The UK Ministry of Justice has published a protocol designed to apply for someone wishing to make a professional claim against a professional such as an accountant as a result of that professional's alleged negligence. Visit their website for more information

The first step in this protocol advises the claimant to provide preliminary written notification to the professional of their intention to make a claim including a brief outline of the claimant's grievance and a general indication of the financial value of the potential claim.

The protocol then goes on to outline another ten or so detailed steps to be completed before one agrees a final settlement.

The detail and complexity of each of these steps clearly demonstrates the need to invest a considerable amount of time and expertise if one is to have any hope of pursuing a successful accountant negligence claim. You should always get advise from a professional in order to comply with this protocol. Many law firms have experienced solicitors who deal specially with professional negligence claims - a highly complex area of the law.

Whilst the costs of specialist advice may be not insignificant they need to be weighed up against the value of a successful claim and the time an effort saved on the side of the claimant. Nowadays many such firms will consider a no-win-no-fee arrangement whereby their costs are recovered only after settlement of the claim.

So in summary, you have the right under English law to seek redress if you have suffered loss as a result of accountant negligence. There is a process for making such claims and, due to its complexity; you would be advised to seek expert guidance from specialist as before embarking on a professional negligence claim.