Too late to claim

The claimant company employed the defendant firm of chartered accountants in the late 1990s to provide tax advice regarding a discretionary bonus scheme with a view to minimising National Insurance (NI)

Between 2000 and 2003 HMRC issued demands for NI from the company in respect of the bonuses. The company eventually settled with the department handing over £104 096 in unpaid NI and interest.

The firm brought proceedings against the defendant in May 2011 to recover the sum on the grounds the accountants had been negligent and failed in their continuing duty to advise the claimant of changes in the law which had allegedly happened in 2003.

It was held that the action was time-barred under the Limitation Act 1980 s 14A.

The company appealed.

The High Court agreed the business’s claim was time-barred. The alleged breach had...