Accountant failed to submit any paperwork since start of FY

[MsGee]

Hi,

I am also going to post this in legal but any advice appreciated

I have been self employed for a number of years, happily submit own tax returns etc.

In April 2013 I set up a limited company and appointed accountants to take care of my company accounts, namely: annual financial statements; all wage and PAYE / RTI paperwork; P14/P60 and P35 and company secretarial services.

I received a letter last week from HMRC saying the company had been flagged as dormant. The accountant has done NOTHING. Not a single RTI payment.

They are 'bemused' as to how this happened and will fix it. But I have lost faith in them.

HMRC said that they may issue a penalty but not sure (looking less likely).

The contract with the accountants does not have anything about ending the contract in the case of not fulfilling terms. Just that it lasts for one term.

My questions are:

1. I should get rid of the accountant yes? I am debating going alone vs finding another accountant at short term.
2. If I refuse to pay a penny am I in breach of contract or should I just email to dissolve contract as they are in breach?
3. Is there anything else I should do?

Any help appreciated on this!

I'd perhaps talk to them first. Did you sign a letter of engagement outlining the service they were providing? This should have covered expectations and if they have messed up they should act swiftly to correct.
How did you not know though? Co secretarial and payroll etc are all on-going in year processes.

For instance, did you provide them with info on what your payroll needed? I'm struggling to understand how you'd not realise sooner than a co house letter saying the company was dormant!

I do have a letter of engagement but this doesn't cover what happens if they mess up, other than I can complain.

I did press them about RTI stuff and he said not to worry - I am on a small salary + dividend and the accountant said to just pay those on the 30th every month and he would take care of everything else (same every month).

I admit that I have been naive but he assured me that all I have to do is pay the same amount every month and send him the income and expenditure figures at the end of the year.

Personally if I received that level of service, I would not be comfortable and would look to go elsewhere.

You pay your accountant good money to take the worry of HMRC and Companies House deadlines away from you and that if you need to give them any information that they will ask you for it well in advance of it being due...and being told not to worry isnt very reassuring when HMRC is telling you nothing has been done.

Too many people put up with rubbish service when ok, yes it can be a pain having to relay the information again but its all worthwhile when you find an accountant who explains everything to you and regularly informs you of upcoming deadlines etc as they should do for the money you are paying them so that you can feel reassured everything is taken care of.

There are lots of accountants out there (two on this thread alone!)
Go find one who provides the services you need.

I asked about the letter of engagement as I'd be inclined to approach their professional body if they have messed up as royally as it perhaps sounded

RTI thing is odd though, HMRC presumably aren't looking for any payment for a set up such as yours and it seems from re-reading that it's perhaps just the payroll scheme that Hmrc are claiming as dormant and not the actual company itself (which wouldn't be Hmrc writing to you in the first case.)
Anyway, talk to the accountant. Having years of doing small payrolls I have seen Hmrc muck up massively and nothing surprises me. I've had the opposite to what you've had previously, where payroll schemes seemed to be difficult to close after a business ceased It may be some sort of glitch as its first year of RTI and there is also a waiver in place whereby no-one is receiving penalties for the first year, so that bit is surprising too.
Rambling really, but check with the accountant - it may not be them that's messed up. If it is - find someone else, and appeal any penalties as being first year. And complain!!