A tax advisor has a professional duty to provide accurate, competent, and diligent advice, ensuring compliance with tax laws, regulations, and best practices.
Tax Advice Negligence Claims
Tax advisors and accountants play a vital role in ensuring compliance with tax regulations, reducing liabilities, and preventing penalties. Whether you are self-employed or run a business, you rely on their expertise to provide accurate guidance and protect your financial interests.
Negligent tax advice occurs when a tax advisor or accountant fails to exercise reasonable care and skill, leading to errors, misstatements, or missed opportunities in tax filings and planning. If this negligence results in financial loss, unexpected penalties, or legal action, you may have grounds for a professional negligence claim.
Where negligent tax advice can occur?
There are several ways a tax advisor may breach their duty of care, including:
• Late filing of tax returns
• Failing to claim tax or business reliefs
• Failing to advise on liability to pay taxes, such as CGT or VAT
• Incorrectly calculating tax liability
• Failing to advise on risks
Negligent tax advice can have serious financial consequences, resulting in unexpected tax liabilities, penalties, and even legal repercussions. Errors such as incorrect tax filings, missed deadlines, or failure to claim eligible reliefs can lead to substantial financial loss. In some cases, poor advice may also trigger HMRC investigations, causing further stress, disruption, and additional costs.
Bringing forward a tax advice negligence claim
If you have suffered financial loss due to tax advice negligence, you may be able to bring a professional negligence claim.
Key considerations when making a claim:
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Time limits: Claims for professional negligence must usually be brought within six years of the date of the negligence. However, this can vary depending on when the negligence was discovered. Seeking legal advice as soon as possible is essential.
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Regulated tax advisors: Some tax professionals in the UK are regulated, meaning complaints can be raised with their governing body. However, if you have suffered financial loss, a negligence claim may often be the most effective remedy.
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Evidence gathering: To strengthen your claim, it is important to collect relevant documents, including tax returns, correspondence with the advisor, and evidence of financial loss.
At Specters, we specialise in tax advice negligence claims, helping individuals and businesses recover compensation for financial harm caused by professional mistakes.
Our legal negligence solicitors
Frequently asked questions
How do I prove tax advice negligence?
You must show that:
• The tax advisor owed you a duty of care.
• They breached their duty by providing incorrect or inadequate advice.
• Their negligence directly caused your financial loss.
How can I fund my claim?
Specters offer no win, no fee arrangements for most tax advice negligence claims. This means you can proceed with confidence, knowing you won’t face financial risk if your claim is unsuccessful.
Can I still claim if my tax advisor was unregulated?
Yes. Even if your tax advisor was not part of a professional body, they still owed you a duty of care. If their negligence resulted in financial loss, you may still have grounds for a claim.
