Accountant & Tax Adviser Negligence Compensation
Claims for Negligent Tax Advice

To pursue a professional negligence claim you must usually establish three key elements: duty of care, breach of duty, and causation & loss.

1. Duty of care: You must show that your accountant or tax adviser had a legal obligation to act with reasonable skill and care towards you. Typically this arises through an engagement letter, contract or by the nature of the professional relationship.
2. Breach of duty: You need to show the accountant failed to act to the standard expected of a reasonably competent accountant in the same circumstances. Expert accountancy or tax advice may be required to establish what that standard is and where the adviser fell short.
3. Causation and loss: You must demonstrate that you suffered a financial loss and that this loss was directly caused by the accountant’s breach of duty. This requires quantifying your loss and linking it to the negligent advice or service.

Evidence may include engagement letters or contracts, tax returns, HMRC correspondence or notices, bank statements, financial records, and potentially expert reports.

At TLW Solicitors we work closely with independent accountancy and tax experts to analyse the documentation, assess what went wrong and quantify the losses you incurred.

Our process is designed to be clear, transparent and focused on helping you recover what you have lost:

1. Initial confidential consultation – Contact us for a free no-obligation discussion about your case with our professional negligence team.
2. Investigation – We gather relevant documents, review the advice given, and if necessary instruct independent experts to assess whether negligence may have occurred.
   Building the claim – We identify the breaches of duty, assess the losses you have suffered, prepare the expert reports and build your evidence base.
3. Pre-Action Protocol – We send a Letter of Claim to the accountant or tax adviser, set out alleged breaches and quantify losses. We then engage in correspondence, exchanges of information, and attempt negotiation or alternative dispute resolution (ADR) including mediation.
   Settlement or court proceedings – Many matters settle through negotiation or ADR without going to court. If a settlement cannot be agreed we will guide you through issuing formal court proceedings and representing your interests.
4. Resolution – We aim to secure the compensation you deserve by negotiation or at trial if required. Throughout we keep you informed, take care of the legal process and work on a no-win no-fee basis (in most cases) so you only pay if we succeed.
   

At every stage our focus is on achieving the best outcome for you as efficiently as possible.

Professional negligence claims are subject to strict time limits. In most cases you need to start the legal action within six years of the negligent act or omission. In some cases, where the damage was only discovered later, you may have three years from the date you became aware of the problem.

Because these time limits can be complicated to apply particularly when losses emerge over time or relate to tax investigations, it is vital to seek specialist legal advice as soon as you think there is a claim.

Compensation for accountant negligence aims to put you back in the financial position you would have been in had you not received negligent advice. Depending on your case you may be able to claim for:

• Additional tax liabilities or HMRC penalties you had to pay as a result of the substandard tax work.
• Missed investment or business opportunities
• Professional fees and costs incurred in rectifying the problem
• Costs associated with dealing with HMRC investigations or audits
• Interest on overpaid or mis-calculated tax
• Other proven financial losses directly linked to the advice

Every case is assessed individually with care to ensure that your full losses are identified and valued.

At TLW Solicitors we understand that bringing a professional negligence claim can feel daunting. That is why we offer most claims on a no-win no-fee basis.

This means you pay no legal fees unless we successfully recover compensation for you. That gives you peace of mind and ensures access to justice without upfront cost.

Our professional negligence team has the specialist experience you need when facing negligent advice from accountants or tax advisers. We:

• Have a strong track record of recovering compensation for clients across the UK
• Work with leading independent financial, tax and accountancy experts
• Provide clear, honest advice about the strength of your case
• Aim to resolve claims efficiently without unnecessary delay or cost
• Act in our clients’ best interests always

When you choose TLW Solicitors you will be guided through the entire process by experienced professionals who understand the technicalities of accountant negligence and know how to build a compelling case. Get in touch to start your claim process today.

Here is an example of a key UK case that helps to illustrate how the courts view professional negligence or liability of accountants and auditors.

Amathus Drinks PLC & Ors v EAGK LLP & Anor [2023] EWHC 2312 (Ch): In this case the High Court refused the defendant’s application to strike out a claim when it was alleged that the defendant audit/accountancy firm owed a duty of care to the buyers of a company in preparing completion accounts and a completion certificate. The court held that despite contractual disclaimers (a so-called Bannerman clause) the buyers had a realistic prospect of proving a duty of care. 

The case is significant because it shows that accountants or auditors cannot always rely on standard disclaimers to avoid liability to third parties who rely on their work.