Accountant Issues

[mmmunch]

Wonder if any advice from someone who's had a similar experience.

Set up a limited company 5 years ago for when I was a contractor- its still going but nothing has gone through it for the last 18 months so going to get it put to dormant.
About 3 years ago, set up another, traded for about 6 months then the major contract finished so no further funding going through it.

Accountant is a 'mother' of my daughters dance partner- pretty flakey all round, always last minute every time. More-so for the 2nd companies accounts where they were late submitting the accounts and I got a huge fine- they were unwilling to help at all so after speaking to HMRC they suggested to dissolve the company and the fine would be wiped- all good and nothing more done.

Now, 5 years after I started, she's now chasing for fees- fair enough, she did the work but its surprising that they haven't asked sooner as the first account now has about £50 in it, so will need to pay the fees from my own personal account.

I told her I could not pay the sum all in one go, and have been paying from April a sum to to reduce the balance- however, she's been hassling my wife by text daily with stroppy emails saying I haven't paid, its outrageous etc. (for context I'm currently working in the ME). I've sent them screen-shots this evening, showing the money left the account by faster payment on the 1st- they've clearly not looked at their accounts.

Can anyone confirm what the situation would be for the dissolved company (not that i don't want to pay it) but what's the procedure for paying fees for a 14 month dissolved company?

For info, daughter doesn't dance with her daughter anymore and both will be joining me over her in August so not fussed if she does get the arse.

thanks,

J

[Jasandjules]

If the Ltd company has closed then there is no money to pay the accountant............................

[Trailhead]

Jasandjules said:

If the Ltd company has closed then there is no money to pay the accountant............................

This.

The company owes the money, not you.

She should have contested the winding up of the company at the time.

[StevieBee]

My understanding is that you are not liable for any debts as you are protected under the limited liability structure. When the company was dissolved, creditors would have been given the opportunity to object or claim debts be paid and if they didn't, tough! If the accountant raised the invoice after the company was dissolved, there was no entity to which that invoice applied.

They could, if they were so inclined, issue legal proceedings to reinstate the company to then chase the debt - which would be pointless as you'd still be protected under limited liability.

You would think an account would know all this, wouldn't you?

Obviously there's the moral and social angles to consider but legally, I'm fairly sure you can tell them to 'do one'.

[MaxFromage]

As an accountant myself, I hate useless accountants. I would knock the fine off from what she says is due and then look at a compromise on the fees. Unless it's written in your engagement letter, she doesn't really have any leverage. You've probably lost out in a number of ways over the years.

[Adam B]

MaxFromage said:

As an accountant myself, I hate useless accountants. I would knock the fine off from what she says is due and then look at a compromise on the fees.

+1

If she filed late due to her incompetence she should pay the fine not you

[mmmunch]

MaxFromage said:

As an accountant myself, I hate useless accountants. I would knock the fine off from what she says is due and then look at a compromise on the fees. Unless it's written in your engagement letter, she doesn't really have any leverage. You've probably lost out in a number of ways over the years.

Thanks all for the comments- appreciated.

Engagement letter- nope, never got given one, let alone signed one..

[MaxFromage]

Is she a qualified accountant? Tell her to stop hassling your wife otherwise she won't get another penny.

[sideways sid]

It is likely that after you have deducted the cost of the HMRC penalty and also your time attending to matters that she should have been handling on your behalf, the net payable will be nil or thereabouts.

Given the relationship, it might be best to provide a (fair/sensible) account showing a net balance due to her of GBP50 or similar, and pay it, rather than be 'that client who didn't pay his bill'.