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Where Taxpayers and Advisers Meet

Incorrect accountancy advice, Form 17

landlord12345
Posts:2
Joined:Thu Aug 12, 2021 2:17 pm
Incorrect accountancy advice, Form 17

Postby landlord12345 » Thu Aug 12, 2021 2:26 pm

Several years ago, my husband and I had our tax returns for the two properties we own completed by a registered accountancy firm. They recommended a Deed of Trust, so that we could
Declare our rental income in my name, as I am a lower rate tax player. We did this, and were told quite explicitly that my husband no longer needed to complete tax returns.
We continued to submit tax returns for me putting the rental income in my name and paying at a lower rate of tax.

Last year while we were completing my tax return, we saw reference to something called a form 17. We realised that this should have been completed originally. We have since submitted this to HMRC, and repaid tax owing for James
until this was completed on a 50-50 basis, as directed by the Let Property Campaign.

We believe the accountancy firm was negligent in not letting us know we should have completed a form 17 alongside the declaration of trust. We are currently taking the accountancy firm to court on this basis. Has anyone else been successful in doing this? The firm claim that they are not negligent, and that we are no worse off than we would have been had we not received the advice in the first place. This seems to be ludicrous position, and it is quite clear they had no idea at the time that a Form 17 was even a thing. Legal advice has been supportive of our position, though we intend to take the case to court without this as it is Small Claims. Any advice gratefully received.

bd6759
Posts:3586
Joined:Sat Feb 01, 2014 3:26 pm

Re: Incorrect accountancy advice, Form 17

Postby bd6759 » Sun Aug 15, 2021 10:47 pm

You seem to have a strong claim. A competent professional acting with reasonable care would have given you complete and correct advice. You suffered a loss because of this.

I am surprised their insurers haven’t settled.

Have you complained to their professional acciciation?

landlord12345
Posts:2
Joined:Thu Aug 12, 2021 2:17 pm

Re: Incorrect accountancy advice, Form 17

Postby landlord12345 » Sun Aug 22, 2021 11:54 am

No we haven’t. It’s been a hassle getting them to respond at all and they recommended the wrong ombudsman - the FOS. We will pursue this is court isn’t successful


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