Problem Accountant

[Scruff]

What did your Payslips and payroll summaries reflect? Did you pay yourself according to these or just an arbitrary amount?

[SueEllen]

Mr Marky Mark : They automatically stopped paying my salary when I said I was looking for a new contract and forgot to start paying me when I told them I'd found one. I did agree to the 7k but it was the best choice at the time but I was reliant on their professional advice like most of us.

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The bit in bold is what they did wrong.

Regardless of whether you are in a contract or not, there should be sufficient funds in your company to pay your salary and other company expenses for the year.

Dividends are simply a bonus for the risk you take in running a company and if there are no profits you shouldn't take dividends.

In other words until you have 12 months salary and known company expenses in your company account you shouldn't take dividends.

[DallasDad]

You can change the RTI if filed after the close of the tax year by filing an earlier year update (EYU)

It is a bit of a pain as you have to use HMRC software which 99.9% of accountants hate!

https://www.gov.uk/payroll-errors/co...our-fps-or-eps

I have done this for clients who have joined from previous accountants who have been in the same situation as you incorrect RTI filed.

As others have said change you accountant ASAP !!

OP I think you have found your new accountant!

[Jeremiah@RHJAccountants]

[QUOTE=Taro;2269686]Folks,

Jeremiah@RJHaccountants : I was told that the RTI cannot be changed under any circumstances. That makes me even more miffed. Thanks for your information.

Your accountant is 100% wrong as it can be changed using EYU and i have done this for many clients.

You really need to change your accountant ASAP as if they are making this kind of mistake what else have they done incorrectly with there advice

[Taro]

Thank You

Folks,

That was my first post to the forum. I'll attempt to respond to your replies ;

Fred Bloggs : I've made noises but I'm drafting a formal letter to explain how I feel and the reasons for dropping them. They are quite defensive about it.

Mr Marky Mark : They automatically stopped paying my salary when I said I was looking for a new contract and forgot to start paying me when I told them I'd found one. I did agree to the 7k but it was the best choice at the time but I was reliant on their professional advice like most of us.

Sten : I had to trust their advice and recommendation and agreed to it. It was the best choice given the information I had.

Sue Ellen : Thanks. I hope they don't read this forum

Jeremiah@RJHaccountants : I was told that the RTI cannot be changed under any circumstances. That makes me even more miffed. Thanks for your information.

Psychocandy : I appreciate your comment and I'm going to do just that but was looking to see if there are any precedents on this forum.

[psychocandy]

I'd be telling the accountant to stump for any extra cost due to their mistake and get a new accountant asap.

[Jeremiah@RHJAccountants]

You can change the RTI if filed after the close of the tax year by filing an earlier year update (EYU)

It is a bit of a pain as you have to use HMRC software which 99.9% of accountants hate!

https://www.gov.uk/payroll-errors/co...our-fps-or-eps

I have done this for clients who have joined from previous accountants who have been in the same situation as you incorrect RTI filed.

As others have said change you accountant ASAP !!

[stek]

Hello Folks,

My accountant made an error by posting only £3k salary instead of £10k on HMRC RTI which cannot be changed. I told them I'd be paying too much corporation tax so to compensate they included a £7k end of year bonus which was added to the following years salary. This meant ;

a) The year in which the £3k salary was submitted had insufficient class 1 NICS and needs a £600 top up.
b) The £7k is lumped onto the following year salary so I pay more personal tax.

I am well miffed with my accountant for being so careless. What can I do?

Thanks for reading


Taro

Why did you sign the accounts off then if this was happening?

[SueEllen]

You do know you can change accountants?

And I would do it asap regardless of where it is in your company year and the cost.

[MrMarkyMark]

Where did they get the 3K salary amount from, in the first instance?
Did you agree to the 7K bonus "idea" to top it up?

Obviously they should give good advice, but you should also know some of this yourself.

[Fred Bloggs]

Have you complained formally in writing to the owner of the accountancy firm?

[Taro]

Hello Folks,

My accountant made an error by posting only £3k salary instead of £10k on HMRC RTI which cannot be changed. I told them I'd be paying too much corporation tax so to compensate they included a £7k end of year bonus which was added to the following years salary. This meant ;

a) The year in which the £3k salary was submitted had insufficient class 1 NICS and needs a £600 top up.
b) The £7k is lumped onto the following year salary so I pay more personal tax.

I am well miffed with my accountant for being so careless. What can I do?

Thanks for reading

Taro