Ernst & Young and Peter Jenkins, its head of VAT, face a writ for damages of at least #500,000 from a client over the firm?s advice on VAT registration.
The Royal College of Obstetricians and Gynaecologists has lodged a writ in the High Court claiming a breach of written contract by the defendants for their work as professional advisers and auditors between 1988 and 1996.
The college?s claim, which has not yet been served, centres on E&Y?s advice – in 1988 or 1989 – to seek an exemption from VAT registration, backdated by Customs & Excise to 1973.
In a high-profile case, the college won an #800,000 refund of VAT after rebate expert Mainprice & Co represented the college bef-ore the VAT tribunal in 1996, and argued successfully that the doctors? body should be VAT-registered and was entitled to a claim.
Accountancy Age understands that the college, which is currently drafting a detailed statement of claim, will seek to reclaim interest and professional fees incurred totalling more than #500,000.
The college declined to comment before the writ had been served, while E&Y said it was ?unaware of any proceedings being served?.
The second largest improvement in ‘significant’ levels of financial distress since the EU Referendum was in professional services, found research from Begbies Traynor
Just one half of UK practices have implemented a pricing structure around auto enrolment implementation and advice - with many suffering increased costs
Deloitte's north-west Europe foray; BDO, Smith & Williamson investment paths; Shelley Stock Hutter; and Wilkins Kennedy discussed by editor Kevin Reed on our Friday Afternoon Live broadcast
Accountants should alter their perspective on auto-enrolment to maximise business opportunities, according to Eric Clapton.