posted 9th November 2025
Negligent Tax Advice — How to Make a Claim Against Your Accountant.
What Is Negligent Tax Advice?
Negligent tax advice occurs when a tax adviser, accountant, or financial professional provides incorrect, careless, or incomplete guidance that leads to a financial loss or HMRC penalty.
For example, if your accountant failed to claim reliefs, gave incorrect VAT advice, or mishandled your self-assessment, you may be entitled to recover compensation for those losses.
At Tax Investigation Helpline in Birmingham, we regularly help individuals and businesses identify when professional advice has fallen below acceptable standards — and guide them through the process of making a claim.
When Is Tax Advice Considered Negligent?
A professional may be deemed negligent when:
- They give inaccurate tax advice that causes you to overpay or underpay tax.
- They miss filing deadlines, resulting in penalties or interest charges
- They fail to check the accuracy of returns submitted to HMRC.
- They don’t apply relevant reliefs or allowances.
- They advise on tax avoidance schemes later deemed unlawful.
- They fail to warn about HMRC compliance risks.
In legal terms, this means the accountant owed you a duty of care, breached that duty, and caused financial loss as a result.
Get Negligent Tax Advice Today
If you believe you’ve received negligent tax advice or suffered losses due to an accountant’s mistake, our expert team is here to help. Complete the short form below and one of our Birmingham-based tax investigation specialists will contact you for a confidential, no-obligation consultation.
Examples of Negligent Tax Advice.
- Misclassifying self-employed income as PAYE.
- Incorrectly advising on IR35 status.
- Failing to apply CIS deductions correctly.
- Providing wrong advice on VAT registration thresholds.
- Submitting inaccurate capital gains tax calculations.
- Recommending aggressive tax avoidance schemes that trigger HMRC investigation.
How to Prove Accountant Negligence.
- Duty of care — that a professional relationship existed (e.g. engagement letter, invoices, or emails).
- Breach of duty — the accountant failed to act with reasonable skill or care.
- Causation — their negligence directly caused your loss.
- Loss — you suffered financial harm (e.g. penalties, lost refunds, or overpaid tax).
Our specialists can help gather and assess this evidence. Book a free consultation.
Frequently Asked Questions (FAQ).
- What is considered negligent tax advice?
Negligent tax advice is advice that no reasonable professional would have given in the same situation, leading to financial loss or penalties.
- Can I sue my accountant for bad tax advice?
Yes. If your accountant breached their duty of care and you suffered a loss, you may bring a professional negligence claim against them.
- How long do I have to make a claim?
You typically have six years from the date of the negligent act, or three years from when you discovered the issue — whichever is later.
- Do accountants have insurance for negligence?
Yes. Most registered accountants must carry professional indemnity insurance, which can cover compensation payouts.
Why Choose Tax Investigation Helpline?
We’re a specialist firm focusing solely on HMRC disputes and professional negligence in tax matters.
Our Birmingham-based team has decades of experience dealing with:
- HMRC tax investigations and enquiries.
- CIS, VAT, IR35, and COP8/COP9 cases.
- Accountant negligence and mis-advice claims.
We combine technical tax knowledge with legal and negotiation expertise to secure the best possible outcome for our clients. Call us today on 0121 8277 971 or complete our contact form for a confidential consultation.
If you’ve suffered losses because of negligent tax advice, it’s vital to act quickly.
With the right support, you can recover your losses and restore peace of mind.
