Accountant in jail- help

[dogsandbudgey]

Without being outing my accountant is in jail for stealing clients money. I’ve just received a note from HMRC saying I owe 20k in outstanding Tax. My accountant has been stealing my money! What can I do I can’t afford this?!?

Have you called them and explained this to them?

It sounds like it's still legally owed but they might offer a TTP arrangement or a hold on enforcement.

Firstly contact the HMRC and explain the situation. Then contact whatever body regulates the accountants in the UK. They should have a fund to deal with something like this.

Sorry hit send too soon and then they will claim off the Accountants Indemity Insurance.

How did HMRC contact you and are you absolutely certain it was HMRC?

Do you have a personal tax/gateway account so you can login and check the tax owed.

I don't think theft is covered by professional indemnity insurance.

Also the accountant may not be a member of one of the accounting institutes

How did your accountant steal your money? Were you transferring money for your accountant to pay HMRC? My accountant does my tax return and calculates how much is outstanding to HMRC. I then log into my Govt Gateway account and pay it directly.

if you contact HMRC they should come to an agreement with you - and in the meantime, are you able to pursue a criminal case against your accountant for theft to try and get the money back?

FFS go to a proper lawyer, not Mumsnet!

This.
This is too serious for MN.

Firstly speak with the police and get a crime reference number id you believe you are one of the accountants victims- without this you won’t have evidence of the theft/fraud and therefore no access to any support there may be available.

I agree.

If you’re employed - check it you have access to an employee assistance program. They can be surprisingly helpful on navigating complex situations.

Make sure youve individually reported the crime against you if you think one has occurred. Also raise it with hmrc so they have the context.

Right, chartered accountant and chartered tax adviser here.

First: HMRC are the subject of many, many phishing attacks and attempts at fraud. Do not pay anyone until you’ve verified the position. Log on to your HMRC portal to verify the information. Only speak to someone from HMRC by phone when uou call the number on their website. Be prepared for a lengthy wait.

if it’s true, speak to HMRC. You still owe the tax (it won’t be written off) but you should be able to come to a payment arrangement given the circumstances.

Then speak to a lawyer. You’ll need to make a claim against the accountant. If they’re in jail then you’re unlikely to get your money back as I assume they’ll be declared bankrupt, but you might get something provided that your claim is lodged in time.

if they’re part of a professional body, eg ICAEW, then you can make a complaint but it wont help you to get your money back. And of they’re in jail for fraud then they’ll soon be struck off anyway. Their insurance is unlikely to pay out here are fraud is a standard exclusion on insurance policies.

I’m sorry that this has happened to you.

Sorry it’s actually my DH, he checked his online hmrc account which disclosed the £18k

Actually Mumsnet is a often a good place to start without spending more money on an expensive lawyer who might turn out to be useless. The OP can do the basic legwork which will save costs.

OP

1. report online to police - or go into a station if you are near
2. when you have the crime number, write (not call) HMRC and send by special delivery, telling them what has happened 3)check your house insurance. If you have legal cover, you might be able to get some free assistance
3. check if the accountant was registered with ICAEW and if so, what the ICAEW can do (warning - ICAEW can be quite useless - but still try)
4. if it is a limited company or partnership, and a director has acted so far outside his/her role, you can ‘pierce the corporate veil’ and sue him/her direct.

However, he/she might be made personally bankrupt by other creditors, so you would need to be quick.

You find out which prison and send the court documents there.