Accountant messed up – who needs to pay the fine

8 October 2025 13:15

What to Do When Your Accountant Misses a Filing Deadline and You Face a Fine

Managing a Special Purpose Vehicle (SPV) for a buy-to-let property portfolio involves careful financial oversight and timely compliance with tax regulations. While engaging an accountant can streamline this process, what happens when they fall short—and you are penalized as a result?

Understanding the Situation

In this scenario, a property business operates through an SPV, and their accountant handles the annual accounts and filings. Unfortunately, the accountant failed to submit the necessary documentation by the HMRC deadline last year. As a consequence, HMRC has levied a £300 fine on the company.

The accountant initially assured that they would contact HMRC to rectify the situation. However, it appears that no action has been taken, and the fine remains unresolved. This situation raises important questions about accountability and the best course of action moving forward.

Navigating Penalties and Potential Recourse

Confirm the Fine and Its Validity
Ensure the fine is accurate and pertains to the missed deadline. Review HMRC correspondence carefully to verify the amount and reason for the penalty.
Communicate with Your Accountant
Reach out to your accountant to request a detailed explanation of their actions—or lack thereof—regarding the penalty. If they initially promised to contact HMRC, ask for confirmation of their efforts and any supporting documentation.
Assess Your Options for Resolution
Appealing the Fine: In some cases, penalties can be contested if you can demonstrate that the oversight was due to reasonable cause or that there was a failure in the accountant’s duties. Contact HMRC directly to inquire about the process for appealing or requesting a penalty waiver based on exceptional circumstances.
Requesting a Remission: HMRC may consider remission of penalties if you can show that you took prompt action once the oversight was discovered, or if other mitigating factors exist.
Legal and Professional Advice
Consult with an independent tax adviser or legal professional who specializes in tax disputes. They can provide guidance on whether you have grounds to challenge the penalty and assist with the appeal process if appropriate.
Consider Changing Your Service Provider
Given the apparent lack of proactive communication and resolution, it may be prudent to evaluate and select a more reliable accountant or accountant firm for future filings. Reliable professional support is crucial in ensuring compliance and avoiding penalties.