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Accountants are qualified professionals regulated by professional bodies. Their work is very complex and primarily involves:
This work can be challenging. For example, the UK Tax Code runs to over 20,000 pages, covering rules, reliefs and exemptions that can help reduce a tax bill.
If mistakes are made, it can be very costly for a client. However, not all mistakes amount to accountancy professional negligence.
An accountant’s negligence is where the work falls below the standard reasonably expected of a competent accountant and causes a financial loss. There would be no claimable negligence if the mistake caused no loss – for example, if an error in a tax return or financial accounts was later rectified.
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We handle various cases where clients have been let down by their accountant, resulting in a financial loss. The most common examples of negligence are:
A large part of an accountant’s work is providing tax advice and completing tax returns for individuals and businesses. Most people pay income tax through PAYE and don’t need an accountant. However, if you’re self-employed, are a business owner/director or have taxable income in addition to your salary (such as investment income or savings interests), you may need an accountant to prepare accounts, calculate tax due and submit tax returns.
Things can go wrong if:
UK tax is complicated. The HMRC tax code runs to over 20,000 pages. There are thousands of exemptions and reliefs for individuals, the self-employed and businesses. Accountants are expected to know the main ones, and if a mistake leads to a client paying more tax than they should, they can be liable.
Key reliefs and exemptions include:
Accountants are often required to value businesses or shareholdings for purchasers, investors or existing shareholders. If valuations are done negligently or without proper information, this can lead to losses.
There are strict time limits for filing personal and company tax returns and paying tax.
A £100 penalty applies if a personal tax return is up to 28 days late. Further penalties and interest follow if returns or tax remain unpaid. If your accountant misses deadlines and this causes penalties and interest, they may be liable.
Tax avoidance means using allowances, reliefs and exemptions to lawfully reduce a tax bill. This differs from tax evasion, which refers to submitting false information intended to reduce a tax bill and which is illegal.
Some accountants have historically recommended convoluted schemes to lower tax bills. These often required HMRC approval, but after the General Anti-Abuse Rule in 2013, such schemes are now rare. If HMRC later deems the scheme unlawful, the client may face late payment penalties and interest. In such cases, there may be a claim against the accountant for negligent advice.
To be successful in a claim against an accountant, it is not enough that they just made a mistake. You must be able to prove negligence. There are three key legal elements to establishing negligence:
The burden of proof is on the person bringing the claim. The standard of proof is the balance of probabilities – is it more likely than not that the accountant failed to exercise reasonable skill and care, leading to the financial loss?
Many accountant negligence claims require an expert witness (often a forensic accountant) to review documents and give an opinion on whether the work was negligent. If they believe there was negligence, this can provide persuasive evidence for a successful settlement.
Where there is a factual dispute, it is usually addressed by contemporary documents and witness statements.
With over 17 years’ experience in financial and professional negligence law, our expert solicitors specialise in claims just like yours, offering trusted support from start to finish.
We’ve recovered over £150 million in compensation for victims of negligent financial advice, proving our ability to deliver meaningful results.
We succeed in the vast majority of negligence claims we take on, with a 90% success rate, giving you real confidence in a positive outcome.
You only pay if we win your case. Our clear, fixed-percentage fees mean no hidden costs, providing complete peace of mind throughout the process.
We’re fully authorised and regulated by the Solicitors Regulation Authority (SRA No. 468940), ensuring your claim is handled with integrity, professionalism, and complete accountability.
You’ll receive clear, jargon-free advice, regular updates, and one dedicated solicitor throughout your case, ensuring continuity, confidentiality, and personalised support every step of the way.
After acting on tax advice from their accountant, Mr and Mrs S unknowingly disqualified themselves from valuable Capital Gains Tax relief. The mistake has led to an ongoing professional negligence claim worth over £60,000.
After purchasing a property, Mr & Mrs K discovered significant structural defects not identified in the surveyor's report. We are representing them in a claim exceeding £100,000.
Mr R had a pension fund worth over £340,000 and was advised to invest it in a plan drawing £20,000 annually. The investment's value declined, and delayed annuity purchase led to reduced income. We secured £80,000 in compensation for him.
Throughout the entire process, you’ll receive regular updates, clear guidance, and fast responses to any queries. Your dedicated solicitor will be your main point of contact from day one to resolution.
Accountancy errors can result in significant financial loss and unexpected liabilities. Our No Win, No Fee agreement allows you to pursue compensation without additional financial pressure.
What This Means for You
“Accountant negligence often stems from basic yet critical errors — for example, failing to submit tax returns on time, miscalculating tax liabilities, or overlooking key exemptions and reliefs that would have lawfully reduced a client’s tax bill. One common scenario we see is HMRC imposing substantial penalties and interest after a late or incorrect tax return, which could have been avoided with reasonable care. From an expert witness perspective, the most persuasive evidence typically includes clear documentation — such as the accountant’s working papers, correspondence, and any advice given — combined with a forensic accounting report assessing whether the standard of care was met. If you suspect negligence, it’s vital to act quickly, gather records, and seek specialist legal advice. Early action can make all the difference in securing fair compensation and preventing further financial harm.”
Strict time limits apply for bringing accountant negligence claims, set by the Limitation Act 1977. If a claim cannot be settled and legal proceedings are needed, they must be commenced within 6 years of the negligent conduct complained about. This is the same time limit that applies to breach of contract claims, as engaging an accountant usually involves a contract for their services.
The law allows an exception where the claimant was unaware of the negligence at the time and that it had caused or would cause a later loss. For example, if an incorrect tax return was filed and was only later discovered by HMRC, with tax still owed and interest accruing. In such cases, the time limit for commencing court proceedings is:
When negligence is only discovered later, there is also a 15-year longstop deadline – legal proceedings must begin within 15 years of the negligent act, no matter when it was discovered.
Given these various time limits, if you believe you have suffered as a result of negligent advice or work, it is important to seek legal advice as soon as possible to understand your options and deadlines.
There is no upper limit for how much you can seek in an accountant’s negligence claim. The law allows you to claim full restitution – this means being put back in the financial position you would have been in but for the negligence.
You can claim for:
There is a general duty to mitigate losses – this means you must take reasonable steps to keep losses to a minimum where possible. Even if an ongoing loss was caused by negligence, you can’t let losses continue just to increase your claim if you could have reasonably reduced them. For example, if HMRC imposed penalties and interest, you are expected to settle those charges (if you can) rather than allow them to build up.
Accountant negligence often overlaps with poor financial advice or wider professional failings. If your situation involves multiple advisers or professionals, the related services below may also apply:
Yes, you can. If your accountant owed you a duty of care and their negligent work or advice caused you financial loss, you can bring a claim. You must be able to prove the elements of negligence (see above). Accountants are required by law to have indemnity insurance to cover them for negligence, and generally, their insurer usually handles the claim.
You can report poor service or misconduct to an accountant’s professional body (e.g., ICAEW, ACCA and the Financial Reporting Council). If they gave investment advice, they may also be regulated by the FCA. These professional bodies generally can’t award full compensation for negligence. For this, you will likely need a solicitor to bring a negligence claim against the accountant’s insurers.
An exception: if negligent financial investment advice is involved, you may claim through the Financial Ombudsman Service (FOS) for your losses after first complaining to the accountant.
Yes, if this led to a financial loss (such as HMRC penalties or interest) due to their negligence. Please see above for the elements required to prove negligence. If the mistake was corrected before any loss arose, there is no claim.
Yes, you can. Whether the accountant was freelance, self-employed or a sole trader makes no difference. All qualified accountants who offer this service must have indemnity insurance to cover negligence claims.
Yes. You don’t need to still be a client of the accountant who did the negligent work. As long as you are within the relevant time limits described above, you can still pursue a negligence claim.
You’ll need evidence that the accountant’s work fell below the required standard and caused your loss. A solicitor will help gather this — often requesting documents from the accountant early in the process.
Most claims also involve an expert report from an experienced forensic accountant assessing whether the work was negligent. This expert opinion can be persuasive evidence. If there’s disagreement about what happened, the claim may also rely on contemporary documents and witness statements.
Tim qualified as a solicitor in 1997 and has more than 25 years of experience advising clients on professional negligence, financial mis-selling and complex civil litigation matters. He oversees the firm’s professional negligence cases and advises on case strategy.
Tim has reviewed this page to help ensure the legal information is accurate, up to date and relevant to individuals considering a potential claim.
We offer a free, confidential consultation to help you understand your legal options. Our specialist solicitors handle professional negligence, pension and investment mis-selling, and fraud recovery claims across England and Wales. From day one, we’ll give you clear, practical advice tailored to your situation.
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You do not need legal representation to make a financial services claim. You can complain yourself at no cost and under FCA rules, the financial services provider must provide a response. If you feel this is unsatisfactory, you can complain to the statutory redress bodies, the FOS and FSCS who can award you compensation. This is a free service.
The information appearing within this website does not constitute legal advice and is provided for general information purposes only. No warranty, whether express or implied, is given in relation to such material, and we do not accept any liability for reliance on it.
Neglect Assist is a trading style of Wixted & Co Solicitors which is authorised and regulated by the Solicitors Regulation Authority (SRA) A copy of the SRA handbook can be obtained from www.sra.org.uk. Wixted & Co Solicitors, 57 Putney Bridge Road, London SW18 1NP.
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