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Clients with Undeclared Earnings

Thu, 18 Apr 2024 09:56:01 GMT

Undeclared Earnings - Making a Voluntary Disclosure to HMRC

Undeclared earnings can be a common issue in many cases involving self employed Claimants.

Although there is no obligation under legal privilege to make a voluntary disclosure to HMRC, depending on the circumstances of the case, there could be merit in exploring the potential of the Claimant making a voluntary disclosure.

This could allow the Claimant to pursue a claim for loss of net income based on their ‘true’ rather than ‘declared’ level of profits.

However, there are a number of important considerations for the Claimant, including but not limited to:

Evidence is key – is there evidence to support the undeclared earnings?
Cost – a tax liability to pay, potential penalties and professional fees.
A willingness to make a disclosure from a moral position, rather than purely to assist the claim.
Do the benefits to the case outweigh the cost of making the disclosure?

If you have a case involving undeclared earnings, we would be happy to discuss the Claimant’s circumstances and potential avenues with you.

At Forths we have a specialist Tax Investigations and Disclosures Team who assist individuals in bringing their tax affairs up to date with HMRC. Working in conjunction with our Forensic Team, we are able to provide a service to Claimants whose circumstances and case merits making a voluntary disclosure.

To discuss potential case, contact liamb@forthsonline.co.uk

Tax Changes 2024 - National Insurance / State Pension

Wed, 10 Jan 2024 10:17:03 GMT

Recent tax changes announced by Chancellor Jeremy Hunt may mean that any future loss calculations may require review.

If you have an ongoing case that we have assisted with, we would be happy to discuss this with you.

Likewise, for any potential new instructions we are always happy to have an initial chat.

National Insurance Cuts

On 6th January 2024 cuts to National Insurance rates will come into effect for employed Claimants:

The main NI rate is being cut from 12% to 10%.

From April 2024 for self employed Claimants:

Class 4 NI rate will reduce from 9% to 8%, and;
Class 2 NI contributions will be scrapped.

The changes will affect future Loss of Earnings calculations.

State Pension Changes

There will also be a rise in State Pension of 8.5% from April 2024.

Losses to State Pension are considered on a case by case basis.

How We Can Assist

Our experienced team assist with Loss of Earnings, Pension Loss and Loss of Dependency elements in all types of PI, Clinical Negligence and Fatal cases.

Our approach is to ensure that your client’s Special Damages are optimised. We offer flexible solutions and reporting styles depending on the case requirements, and can assist you in the information discovery process. We are also happy to liaise directly with clients to assist in the progress of the case.

For more information about our hourly rates for Expert CPR or White Label / Agency Services, and deferred payment terms, talk to our team.

Call us on 0113 387 5670

Email - enquiries@forthsonline.co.uk

Pension Loss Update - Pension Allowance Changes

Tue, 11 Jul 2023 15:50:40 GMT

In the 2023 budget, Chancellor Jeremy Hunt announced fundamental changes to the Annual Allowance and Life Time Allowance charges for pensions savers.

What are The Allowances?

The Annual Allowance is the amount that an individual can pay into their pension scheme (both their own and their employer contributions) each year before paying Tax on the contributions made.

The Life Time Allowance is the total amount an individual’s pension fund can be before they pay additional Taxes on their pension benefits.

What Has Changed?

The Annual Allowance has increased from £40,000 per annum to £60,000 per annum.

The Lifetime Allowance, which was £1,073,100, has been abolished.

What Does This Mean for Your Client?

If you have a high earning client (often in the public sector where employer contributions are more generous), then your current calculation of lost pension benefits may include deductions for tax under both the Annual and Lifetime Allowance schemes and so may now be materially understated.

How Can We Help?

Our team have vast experience in assessing pension loss claims for all types of occupations and are fully au fait with the changes to the Tax rules from April.

We would be happy to carry out a review of your pension loss calculations either on a stand alone basis or in conjunction with other relevant heads of claim.

Festive Opening Hours 2022

Mon, 19 Dec 2022 11:41:43 GMT

Our opening times over the Festive Period are as follows:

Friday 23rd Dec - 9am to 3pm

Monday 26th Dec - CLOSED

Tuesday 27th Dec - CLOSED

Wednesday 28th Dec - 9am to 5.30pm

Thursday 29th Dec - 9am to 5.30pm

Friday 30th Dec - 9am to 3pm

Monday 2nd Jan - CLOSED

Tuesday 3rd Jan - 9am

Tax Changes and Calculating Losses

Tue, 06 Dec 2022 09:34:33 GMT

You will be aware of recent changes to Corporation Tax, Income Tax and Dividend tax rates and allowances following the Mini Budget and Autumn Statement.

These changes will have an impact on how financial losses are assessed in cases involving Claimants operating through their own Limited Company, particularly those with a larger loss and / or involving dividends.

For many years it was safe to assume that the most efficient way to extract additional profits from a Limited Company was by way of dividends. As a result of the recent changes, and depending on the Claimant’s circumstances, this assumption may no longer be the case and alternative methods may need consideration.

Our experienced team can assist in all types of cases involving self employed Claimants and we are fully alive to how these changes will impact on how financial losses are presented in a case.

There are also many other factors that will need to be carefully considered, such as:

Has the company suffered a reduction in profitability, or has it ceased trading entirely.
The level of actual and expected profitability of the company and the impact on its marginal corporation tax rate.
Does the Claimant have other income sources that may utilise their personal allowance and affect their marginal rate of income tax.
Is the Claimant expected to work beyond their state retirement age.
Does the Claimant have income in excess of £100,000 and, therefore, their personal allowance would be abated (applies to both actual and or expected levels of income).
Changes already announced to the tax free dividend allowance.
Does the Claimant have other dividend income that would utilise their tax free dividend allowance.

To discuss a potential case under no obligation, contact us on 0113 387 5670, email enquiries@forthsonline.co.uk or click here

Assessing Public Sector Pensions

Tue, 05 Apr 2022 13:22:50 GMT

Quantifying pension losses for members of public sector schemes is complex given the nuances of different schemes.

Since the ruling on the McCloud Judgment was made December 2018 there are additional considerations for solicitors to be alive to when assessing pension losses for members of public sector schemes.

Who does this affect?

Claimants who are members of public sector pension schemes in employment before 31 ^st March 2012, and were still in employment on 1 ^st April 2015 (or 1 ^st April 2014 for LGPS).
This doesn’t necessarily need to be a continuous period of employment. This also applies to Claimants who have since left employment, or who have started receiving their pensions, so long as they were employed on the above relevant dates.

How does it affect cases?

A comparison of claimants’ benefits in their current career average pension versus their potential benefits had they remained final salary members will be required for almost all public sector pension loss cases meaning that both projected and residual benefits will need to be considered in both schemes.
For Claimants who have already retired, their actual pension benefits may be increased to take account of these changes – therefore a calculation of their revised actual pension benefits may also be required, in addition to a calculation of their projected pension benefits.

Current position:

Claimants in active service will move to a career average scheme from 1 ^st April 2022.
When Claimants who haven’t already retired, or aren’t planning to retire in the near future, approach retirement they will be provided with details of their possible pension benefits accrued between 1 ^st April 2015 (or 1 ^st April 2014 for LGPS) and 31 ^st March 2022, in both the legacy scheme (final salary) and the new scheme (career average) and they can choose which benefits to receive.
For Claimants who have already retired or will do so in the near future, this choice will be offered as soon as practicable, and any changes to pension benefits should be backdated.

How can we help?

As most Claimants will want to seek to optimise their benefits, this may increase the amount of pension loss claimed in some cases.

This is particularly relevant to Claimants who are now approaching retirement age or where they were in the early phases of their employment in 2012.

There is no straightforward indicator of who will be better off under each part of the scheme, so a comparison calculation will be needed in all cases where the Claimant was a member of a public sector scheme in the relevant period to ensure that losses are not understated.

For more information about hourly rates and deferred payment terms, please contact us today.

We assist in all types of Personal Injury and Clinical Negligence cases. To discuss any of the following scenarios under no obligation.

Self Employed Claimants – CLICK HERE

Pension Loss (Public or Private Sector Claimants) – CLICK HERE

Fatal Cases – CLICK HERE

Call us on 0113 387 5670

No Permission for an Expert? No Problem

Wed, 18 Aug 2021 09:06:31 GMT

Did you know that we offer White Label / Agency Services when you do not have permission from the Court to formally appoint an Expert in quantum.

We have developed this service for complex and high value personal injury and clinical negligence cases that can be problematic and time consuming.

There are generally two scenarios in which this service can be beneficial:

You have been denied formal leave by the Court to appoint an Expert in quantum.
You want to outsource the quantum elements of the case due the complex nuances involved and to build a more accurate picture of the client’s losses from an earlier point in the case.

We undertake this work across all types of Loss of Earnings, Pension Loss and Loss of Dependency scenarios, on a combined and standalone basis. For example, you have drafted the Loss of Earnings element of the Schedule yourself, but require some input in relation to Pension Loss.

It may often be the case that you require some abbreviated calculations to support your client’s losses, and again, we can assist in this regard.

For more information about the benefits of our White Label Service, along with hourly rates (which are structured alongside current CJC guidelines) and deferred payment terms, please contact us today:

Call : 0113 387 5670

Email: enquiries@forthsonline.co.uk

Cases Involving Ill Health Retirement

Mon, 24 May 2021 11:39:04 GMT

Cases involving ill health retirement are complex by nature and our experienced team are fully au fait with all the different nuances.

Whether a Claimant qualifies to receive an ill health pension will be defined by the severity of their injuries resulting in an inability to perform their working duties.

The Claimant’s ability to receive an ill health pension will also be subject to pension scheme rules and criteria.

Generally, the outcome will be determined by the Claimant’s individual circumstances, and whether they are entitled to receive a pension unreduced or with enhanced benefits and how this interplays with their loss of earnings claim.

There are a number of cases which have formed how Claimants who are unable to return to work following an accident or negligence are compensated.

Parry v Cleaver (1970)

In this case it was held that the Claimant was entitled to receive the full net value of the ill health pension, and that the pension should not be deducted from the loss of earnings up to normal retirement age.

Longden v British Coal Corporation (1997)

The circumstances in this case related to the Claimant taking a tax free pension lump sum, in a similar vein to Parry & Cleaver, the Claimant only had to offset the post retirement age element of lump sum received early against their losses.

How can we assist?

Our experienced team can assist in all types of cases involving ill health retirement in consideration of both public and private sector employed Claimants.

To discuss a potential case, call us on 0113 387 5670, email us at enquiries@forthsonline.co.uk or fill out a Contact Form .

Considering Covid and Client Losses

Tue, 16 Feb 2021 17:57:30 GMT

The Covid-19 pandemic has caused difficulty and hardship for many families, individuals and businesses.

In these times, we are regularly being asked to consider the impacts of Covid-19 on Claimants in all types of cases. However, in relation to Covid-19, there are so many different factors to consider, so we need to adapt our approach depending on the Claimant’s circumstances.

Things to Consider?

Should the impact be considered during the period of past loss only, or should we try and estimate an ongoing impact?

As we saw with the financial crisis of 2008, these situations do not last indefinitely, and whilst there will always be exceptions, in our opinion, unless there is evidence to support an ongoing / long term impact, then any “Covid adjustment” should be limited to the period of past loss only, with the future loss being pleaded based on “normal” trading conditions.

Self Employed Claimants:

Is the impact over a limited time frame or could it be ongoing / long term
Potentially opportunities created, hence a positive impact
Diversification / Change in nature of business trading / profitability
Business closure
Bankruptcy
SEISS claims based upon pre Covid years trading

Employed Claimants:

Furlough
Redundancy / Lost job
Employer closure
Pensions
Loss of an employment in the period of loss that is no longer available due to Covid-19
Bankruptcy

Without doubt Covid-19 has brought new challenges to assessing Claimants’ losses and we are already seeing the Courts looking at the impact of Covid-19 on an individual basis rather than applying generic reductions.

Our team are on hand to assist in all types of personal injury, clinical negligence and fatal cases.

Our approach:

There is no uniform approach and we consider all cases depending on the nature of the Claimant’s circumstances. The key to approaching any case where Covid-19 has had an impact, is to ensure that evidence is well sourced and presented, and that arguments and projections are reasonable.

If you have a case that you may like to discuss with our team:

Call us on 0113 387 5670

Email us at enquiries@forthsonline.co.uk

Visit www.forthsonline.co.uk and fill out an Enquiry Form

High Earner Pension Considerations

Tue, 12 Jan 2021 13:18:56 GMT

The Claimant was a head teacher, with a projected final salary of £105,000. Based on her projected pensionable service, she would have received a gross pension of £60,000 per annum from her retirement. She has actually received an ill health pension of £50,000 per annum, and so her annual pension loss, before Income Tax, appears to be £10,000.

However, due to salary increases towards the end of her career, the Claimant’s projected pension benefits for AA purposes increased significantly. The excess pension accrued over the annual limit would be subject to tax at the Claimant’s highest tax rate, and would have led to total tax charges of £26,000 during the period of loss. Due to ‘Scheme Pays’ arrangements, these tax charges would initially be paid by the Teachers’ Pension Scheme, and clawed back by a reduction to the Claimant’s pension, of £1,600 per year.

In addition, the Claimant’s total pension benefits for LTA purposes exceed the current lifetime limit of £1,073,100. As the Claimant would not have taken a pension lump sum, the excess pension over the LTA would be subject to a tax charge of 25%. Again, due to Scheme Pays arrangements, this tax charge would be paid by a reduction to the Claimant’s pension, of £1,750 per year.

No AA or LTA charges would have been applicable to the Claimant’s ill health pension. Therefore, by taking account of the projected AA and LTA charges, the potential annual pension loss, before Income Tax, has reduced from £10,000 pa to £6,650 pa.

To discuss a potential case on a no obligation basis, you can:

Call us on 0113 387 5670

Email us at enquiries@forthsonline.co.uk

Fill out an Enquiry Form

Festive Opening Times

Mon, 21 Dec 2020 13:47:05 GMT

We would like to extend thanks and best wishes to all our clients as this difficult year draws to a close.

Our opening hours during the festive period are as follows:

Christmas Eve – 9.00am – midday

Tuesday 29th December – 9.00am – 5.30pm

Wednesday 30th December – 9.00am – 5.30pm

Thursday 31st December – 9.00am – midday

For enquiries or to discuss a potential case, contact us by:

Phone – 0113 387 5670

Email – enquiries@forthsonline.co.uk

Or click here

Loss of Earnings and Pension Case Study

Thu, 19 Nov 2020 11:35:24 GMT

At the date of the accident in March 2017 the Claimant was a Band 6 Nurse having joined the NHS in 2012. We were instructed to assess Claimant’s loss of earnings and pension.

It was contended that, but for the accident, the Claimant would have continued working on a full-time basis as a Nurse within the NHS gaining promotion to a Band 7 role with effect from April 2018 and continuing in that role until retirement at age 68 (being their State Retirement Age).

Following a period of absence and phased return, the Claimant was ultimately unable to continue in her pre-accident role. In March 2018, the Claimant changed roles, but remained on a full time basis in Band 6.

Due to continuing symptoms, the Claimant was forced to reduce her working hours to part-time with effect from December 2018. Despite this, it was ultimately necessary for the Claimant to retrain a process that she commenced in April 2019.

As a consequence of retraining, whilst the Claimant remained in the NHS, she moved to a Band 5 role with effect from April 2020 and will now continue in such until age 68.

As a complicating factor, the Claimant was assessed as being Disabled due to her injuries suffered within the meaning of The Equality Act 2010.

Points to Consider….Projected and Actual Scenarios

The relevant points we had to consider within the loss of earnings were to make sure that the Claimant’s progress through both Band 6 and Band 7 in the projected scenario were correctly pleaded. Further, it was necessary to take account of a split Multiplier as the Claimant was not due to reach the top of Band 7 until several years after the notional date of Trial.

It was also necessary to take a similar approach to the actual scenario given the Claimant’s move to Band 5 close to the Trial date.

A further complicating factor on the earnings scenario was the need to apply a differing Table C and Table D Discounts to the Multipliers to account for the Claimant’s disablement due to her injuries suffered in the accident.

Considering Pension Loss

In relation to the Claimant’s pension loss, as well as suffering an evident loss from the Career Average (CARE) Scheme, which the Claimant joined from April 2015, as a result of the differing level of earnings, the Claimant also suffered a loss from the Final Salary Scheme.

Although the Final Salary Scheme had come to an end in March 2015 (some 2 years pre accident) the Claimant still suffered a loss due to her benefits being linked to her ongoing employment.

But for the accident, had the Claimant achieved promotion to Band 7, then her pension benefits from the Final Salary Scheme would have been based on her final Band 7 earnings. As the Claimant was forced into a Band 5 role, the Claimant’s Final Salary benefits were based on this, hence her suffering a loss from the Final Salary Scheme.

Outcome

Total losses assessed in relation to earnings and pension in this matter were circa £950,000.

To discuss a potential case with a member of our team, contact us here , or call 0113 387 5670

The Importance of Good Discovery

Mon, 10 Aug 2020 17:45:50 GMT

The importance of a thorough discovery process can not be overstated in the context of any litigation and that certainly follows for personal injury and clinical negligence cases.

It is simply impossible to arrive at an accurate assessment of loss of earnings without the relevant financial information and documentation being available to do so and such relevant information will only be available if this has been properly requested in the discovery process.

For employed Claimants, given that earnings information is relatively homogenous (pay slips, P60’s, P11d’s etc) the discovery process tends to be clearer, however, this is often not the cases for self employed individuals.

There is no standardised way that self employed individuals keep their accounting records and, as a result, complexities can arise in requesting the information required in order to substantiate their loss of earnings.

At Forths, we recognise such complexities and appreciate the importance of a thorough and comprehensive discovery process to assist in the robust presentation of loss of earnings claims.

In many of the cases that we are instructed on, outside of the initial basic enquiries, we undertake the full discovery process in respect of the loss of earnings element of the claim, requesting all necessary financial (and other corroboratory information) from both the Claimant and all relevant third parties.

We often find that not only does this approach ensure that all relevant information is collated and conserved contemporaneously, the route to arriving at a fully substantiated calculation is streamlined.

If you have a case that you feel would benefit from our assistance in the discovery phase, or would like to discuss a case generally, you can call us on 0113 387 5670, email us at enquiries@forthsonline.co.uk or fill out an Enquiry Form and we will call you back.

Forths Joins Frenkel Topping Group

Thu, 23 Jul 2020 14:52:54 GMT

We are delighted to announce that Forths Forensic Accountants is now part of the Frenkel Topping Group.

Our businesses have had a strong working relationship for many years, share similar cultures and have a real focus on service delivery and client retention.

We are committed to delivering market leading expert services in relation to in all types of personal injury and clinical negligence cases, commercial disputes, criminal litigation and tax investigations.

As we are now part of a larger business, this will extend our offering to clients (both in terms of pre and post settlement services in the context of personal injury and clinical negligence cases), and allow access to a wider network of independent experts.

We are looking forward to continuing to develop our relationships with both solicitors and insurers and delivering the enhanced offering that this exciting move now brings.

8th Edition Ogden Tables Revision

Wed, 22 Jul 2020 16:58:01 GMT

The 8th Edition of the Government’s Actuarial Tables have been released with revisions to the Ogden Tables.

The Ogden Tables assist in quantifying lump sum compensation payments in personal injury and fatal cases.

The revisions to the tables, which provide discount rate multipliers for England and Wales (minus 0.25%) and Scotland (minus 0.75%), will have an impact on both loss of earnings and loss of pension calculations.

There have also been a set of Additional Tables published which provide multipliers at minus 0.75%, minus 0.25% and 0%, which can be used to establish future losses for multiplicands payable from any age at the date of trial to any future age up to 125 years old.

Our experienced team are fully au fait with Ogden Tables and the recent revisions, both in the context of cases in England and Wales, as well as in Scotland.

If you have a case that may require a review and an update, we would be happy to discuss this with you anytime.

Call us on 0113 387 5670, email us at enquiries@forthsonline.co.uk or fill out a Contact Form and we will be in touch.

Comparing Pre / Post Accident Earnings and Pension Loss

Mon, 06 Jul 2020 14:26:00 GMT

Why Comparing Pre-Accident Net Earnings to Post-Accident Net Earnings Doesn't Always Work. You Could Undervalue a Claim for Lost Earnings and Pension.

You have a Band 5 Nurse who commenced her employment with the NHS in April 2013 but then had an accident in April 2014 following which she was unable to work.

Per the Case Study link below, her net salary from April 2013 to March 2014 was £16,389.

The following would lead to an increase in post-accident net salary:

Each year the Nurse would have worked her way up the spinal points on the Band 5 Pay Scale
Each year the Nurse would also have been entitled to an inflationary pay increase, which is a pay increase over and above the spinal point increases noted above
Each Tax Year the Personal Allowance for Income Tax and Primary Threshold for National Insurance Contributions increase. Given that the Nurse is a Basic Rate Taxpayer, this will increase her take home pay each year post-accident.

With reference to the Case Study above, if the accident had not occurred and the Nurse had continued working beyond April 2014, her net salary from April 2020 to March 2021 would have been £22,182, which is £5,793 higher than that paid to her from April 2013 to March 2014 of £16,389. This would, in turn, also noticeably increase the multiplicand to attach to the future loss of net earnings and the salary used to calculate the pension loss.

Therefore, given the above, it is evident that, in this scenario, if you had simply compared pre-accident net earnings to post accident net earnings you would be significantly undervaluing your client’s claim for loss of net earnings and any subsequent corresponding pension loss

We regularly assist to correctly assess client’s loss of net earnings and pension benefits, taking into account annual salary scale increases and annual increases in tax allowances. We assist on either an Expert or Non-Expert (White Label / Agency) basis depending on the nature of your case.

To discuss a potential case, call us on 0113 387 5670, email us at enquiries@forthsonline.co.uk or fill out an Enquiry Form and we will contact you directly.

Future Loss of Earnings - Precise or Broadbrush?

Mon, 08 Jun 2020 17:03:03 GMT

Irani -v- Duchon [2019] EWCA Civ 1846

When it comes to future loss of earnings the question that we often see asked is whether a particular scenario warrants a precise or a more broadbrush approach.

Further clarification was provided on this point in the Court of Appeal case of Irani -v- Duchon [2019] EWCA Civ 1846, a rare Court of Appeal case that wholly related to certain key features of the assessment of loss of earnings in the case in question.

A copy of the full Court of Appeal judgement can be found here - https://www.bailii.org/ew/cases/EWCA/Civ/2019/1846.html

In this case, the ‘but for’ scenario, i.e. the projected earnings of the Claimant, a young, highly educated research engineer, was relatively easy to calculate, as they could be assessed with reference to available empirical evidence.

However, the same could not be said for the residual earnings position, which had a number of different evidential issues and imponderables which resulted in the judge at the initial trial adopting a broad brush (or Blamire approach) to the assessment of future loss of earnings.

The Court of Appeal concluded that the default position for the assessment of future loss of earnings should always be the multiplicand / multiplier approach, however, if it was simply not possible to pull together sufficient evidence for either the ‘but for’ or the residual scenario then a lump sum approach could be considered.

It was held by the Court of Appeal that, in this case, the extent of the imponderables in the residual scenario meant that the trial judge had little choice but to adopt a lump sum approach in the calculation of future loss of earnings.

Whilst the judgement in this case could be taken as a vindication for the adoption of lump sum approaches in future loss of earnings assessments, in reality the Court of Appeal made it very clear that this should be a last resort option and that the preferred approach should be that of multiplicand / multiplier.

Based on this decision, therefore, it would appear imperative that Claimant Solicitors fully investigate all aspects of a future loss of earnings claim to ensure that as much evidence is provided in support of the same.

To discuss a potential case on a no obligation basis, call us on 0113 387 5670, email us at enquiries@forthsonline.co.uk or fill out an Enquiry Form and we will contact you directly.

Optimising Client Damages

Wed, 20 May 2020 08:37:01 GMT

Our team of forensic accountants are regularly instructed by solicitors and barristers to ensure that Claimant’s financial losses are accurately assessed and presented.

In particular we are instructed to ensure that there is a thorough consideration of all features relating to the Claimant’s financial losses.

This can often involve multiple factors and scenarios that require interrogation and analysis. Typical examples where we regularly add value to the case include:

Self Employed Claimants, for example:

Where trading pre / post accident or negligence has varied.
Involving Limited Companies or multiple businesses.
Change in the nature of the business.

Employed Claimants, for example:

Impact on career progression.
Lengthy periods of absence.
Complex packages involving bonuses, commissions, benefits (e.g. health cover, company car etc).
High earning Claimants.

Pension Loss, where further investigation can enhance the overall value of the claim, for example:

In consideration of multiple schemes, e.g. Defined Benefit / Defined Contribution.
Movement from Final Salary to Career Average Revalued Earnings Schemes (CARE).
Limited Company Directors’ contributions.
If pension is drawn down early post accident / negligence.

We lend our forensic accountancy skill set and experience to analyse such factors and to ensure that they are properly investigated and appropriately presented.

We provide both Expert and Non-Expert / Agency Services depending on the nature of the case.

If you have a PI / clinical negligence / fatal case that may involve such circumstances as above and wish to discuss this further, please call us on 0113 387 5670, email us at enquiries@forthsonline.co.uk or fill out an Enquiry Form and we will contact you directly.

Exaggerated Damages Leads to Costs Penalty

Mon, 11 May 2020 16:03:47 GMT

A recent High Court decision has highlighted the need for the accurate assessment and presentation of client’s heads of damage.

In the case of Morrow v Shrewsbury RUFC, Mrs Justice Farbey made the order to deduct 15% of the Claimant’s costs after the client had exaggerated and inflated his claim for damages.

The judge viewed that the exaggeration by the Claimant, who worked as an independent financial adviser, was ‘built into the structure’ of the presentation of his claim.

As a result, the parties were ‘poles apart’ on the quantum elements of the case, and the costs penalty was applied after the Defendant contested that the Claimant’s exaggeration had prolonged the trial.

The decision highlights that the accurate assessment and presentation of client damages can assist in the smoother settlement of cases. For solicitors, this of course leads to swifter costs resolution and an optimisation of costs.

Through our forensic accountancy analysis and interrogation, we ensure that your client’s damages are thoroughly investigated and robustly presented.

We assist in complex cases involving both self employed and employed Claimants. Typical examples include consideration of:

Changes to nature of business post accident.
New start businesses.
Impact on career progression.
Pension losses.
Loss of dependency in fatal cases.

We are regularly instructed by Claimant solicitors to assist in quantifying their client’s financial losses on either an Expert Part 35 or Non-Expert / Agency / White Label basis (for when you do not have permission to instruct an Expert in quantum).

To arrange a phone consultation to discuss a potential case on a no obligation basis, call us on 0113 387 5670 or fill out an Enquiry Form

Business Continuity - Coronavirus Update

Mon, 16 Mar 2020 16:40:54 GMT

Here at Forths Forensic Accountants we are continually reviewing information and guidance in relation to the coronavirus pandemic.

Our focus has been on ensuring that we have robust business continuity strategies in places to continue to service the needs of our clients, whilst heeding advice from experts and government to ensure the safety of clients, staff and the general public.

To this end we have developed stress tested and comprehensive home working contingencies for staff as required.

Throughout this difficult period our team will still be on hand to provide our normal level of service, and should you need to contact us for any reason, please do not hesitate.

If there is anything case specific, or generally, that you would like to discuss with us, please:

Call us on 0808 169 9090

Email us at enquiries@forthsonline.co.uk

Fill out a Contact Form

Finally, we would like to send our best wishes in this challenging time.

The Forths Team

Cases Involving Non UK Jurisdictions

Mon, 09 Mar 2020 09:48:07 GMT

Here at Forths, we are continually developing our depth of technical forensic accounting expertise in relation to all aspects of personal injury disputes.

One such area is the incidence of taxation in different jurisdictions.

Over the years we have developed a significant specialism in cases involving Jersey based Claimants, who have been involved in accidents and who are seeking to pursue claims for lost income / earnings arising therefrom.

Our knowledge of the complexities and particular nuances of the Jersey Tax system, coupled with the enactment of the Damages (Jersey) Law 2019, enables us to be well placed to prepare accurate assessments of a Claimants’ net losses for use in proceedings.

Case Study Example

One such example is of a case in which the Claimant worked as a self employed architect, via her own Limited Company, whose involvement in a road traffic accident in Jersey had seriously disrupted the growth and expansion of her business. The Claimant had remunerated herself by way of director’s salary, pension contributions and dividend income, which necessitated an assessment of the company’s projected net profit after Corporation Tax, but for the accident, and subsequently a calculation of the Claimant’s projected net income, after Tax and Long Term Care Contributions (‘LTCC’).

We also have experience of calculating personal Tax at the marginal rate, after allowing for various reliefs, including second earner’s relief, under Jersey’s fiscal system.

In other Personal Injury cases with unusual features, we have undertaken work for English lawyers on road traffic accident claims involving British nationals which were being pursued overseas.

In these cases we liaised with the solicitors’ appointed German and Maltese advocates, to formulate the dependency loss and past and future loss of net earnings claims, respectively, in accordance with the relevant judicial protocol.

We are also fully au fait with the workings of the Scottish Tax and judicial system, undertaking a considerable amount of work for Claimants North of the border.

To discuss a case involving aspects outside of UK jurisdiction, talk to our team. We will ensure that the claim is accurately quantified and correctly presented to the Courts. We are always happy to utilise our existing skill set to investigate and report upon new matters.

To discuss a case on a no obligation basis, call us on 0113 387 5670, email us at enquiries@forthsonline.co.uk or fill out an Enquiry Form

Loss of Net Income from Self Employment

Tue, 21 Jan 2020 16:15:18 GMT

Self Employed Loss of Net Income

If your Claimant works on a self employed basis and has suffered a period of absence and / or restricted capacity, then they will have potentially suffered a loss of net profit, and a subsequent loss of net income.

A Claimant’s loss of net profit can arise from a loss of sales, or when additional costs have been incurred (e.g. additional wages costs as a result of employing someone to cover their workload during the affected period), or when the Claimant has had to change the nature of their work which is less profitable.

When your Claimant works on a self employed basis, the loss of net income calculation can be more complex when compared to a Claimant working on an employed basis, as their pre accident / negligence trading patterns need to be considered, market conditions and the availability of work during the affected period, as well any savings made in costs that would have been incurred had the Claimant been able to continue working as normal.

Partnerships and Limited Companies

In addition to trading on a sole trader basis, the loss of net income calculation can be more complex if your Claimant trades via a Partnership or a Limited Company.

A Claimant is entitled to claim for their share of the Partnership’s / Limited Company’s loss of net profit, based on their percentage holding in the Partnership / percentage shareholding in the Limited Company.

It is not uncommon for a Claimant’s relation (e.g. wife / husband) to also have a shareholding in the Limited Company or percentage holding in the Partnership despite having no active role within the business, rather it is for tax planning purposes only. In some instances, it is possible to assess the Claimant’s economic input into business to assess their share of the loss of net profit, rather than their strict shareholding.

RECENT EXAMPLE:

The Claimant was involved in an accident, he traded via a Limited Company, undertaking work in the telecommunications industry, predominately in Fibre Optics.
Following his involvement in the accident, whilst he incurred various periods of absence, he was able to return to work, but suffered on ongoing loss as he was unable to undertake work at a height and had to change the nature of his work, which was ultimately less profitable than his pre accident work.
The Claimant held 100% of the shares in his Limited Company, and so was entitled to claim 100% of the company’s loss of net profit arising due to the accident.
The Claimant’s loss of net income was calculated after taking account of Corporation Tax, as well as Income Tax and National Insurance Contributions.

In complex scenarios such as these, we can assist. We provide both Expert CPR and White Label (Agency) Services.

We are happy to assist in gathering the relevant financial information in order to assess the Claimant’s losses. The earlier involvement in your case allows us to ensure that all relevant information is obtained in a timely manner.

To discuss your case on a no obligation basis:

Call us on 0113 387 5670

Email us at enquiries@forthsonline.co.uk

Fill out an Enquiry Form and we will call you back

Festive Office Hours

Liamb@forthsonline.co.uk (Liam Bottomley) — Fri, 13 Dec 2019 09:58:28 GMT

Please note that the office will be closed from 2pm on Friday 13th December for our office party.

Monday 23rd Dec – 9am to 5.30pm

Tuesday 24th Dec – 9am to 4pm

Friday 27th Dec – 9am to 4pm

Monday 30th Dec – 9am to 5.30pm

Tuesday 31st Dec – 9am to 4pm

Thursday 2nd Jan – 9am to 5.30pm

Friday 3rd Jan – 9am to 5.30pm

Loss of Dependency Case Study

Liamb@forthsonline.co.uk (Liam Bottomley) — Mon, 11 Nov 2019 18:09:17 GMT

In fatal accident cases, Claimants will usually suffer a loss of dependency on the Deceased’s income, earnings and/or pension benefits.

This is still the case if the Claimant’s income was similar to the Deceased’s income (and in fact, there will be a loss of dependency unless the Claimant’s income would have been more than double the Deceased’s income, in cases with one financial dependent).

To calculate the loss of financial dependency, the Deceased’s and Claimant’s projected net income should be calculated throughout the period of loss. This will take into account all earnings, income and pension benefits that the Deceased and Claimant would have received, but for death. No credit needs to be given for changes to the Claimant’s actual income as a result of death (for example, increasing hours to cover living expenses).

While projected employed earnings may be straightforward to calculate, cases including individuals aiming for promotions, self-employment, trading via limited companies, or workplace pension schemes can be more complex.

Loss of Dependency Example:

The husband was involved in a fatal accident, and he ran his own limited company. His wife worked as a teaching assistant.

Although the Claimant didn’t work in the company, she received a salary and dividends from the company for tax planning purposes, in addition to her salary as a teaching assistant, so their annual net income was similar. However, as the company ceased trading after the accident, using the argument set out in case law such as Ward v Newalls , the losses were calculated based on all dividends being attributable to the husband.

The Claimant increased her hours of work following her husband’s death, in order to cover her living expenses. However, no credit needs to be given for these extra earnings.

Based on this, the husband’s projected net income was calculated as £67,000 per annum, despite his pre-death net income, per his Tax Returns, being £40,000 per annum. Similarly, the wife’s projected net income was calculated as £9,000 per annum, despite her pre-accident income being £40,000 per annum.

Therefore, despite the Tax Returns showing very similar pre-death income, the loss of dependency on earnings was calculated as £41,667 per annum ((£67,000 + £9,000) x 662/3% - £9,000).

To discuss a potential case:

Call us on 0113 387 5670

Email us at enquiries@forthsonline.co.uk

Fill out an Enquiry Form

Assisting with Pension Losses

Wed, 04 Sep 2019 06:34:41 GMT

Employed Claimant Pension Loss Example

Almost all the UK’s employed workforce will now be a member of their employer’s workplace pension scheme.

Therefore, if your Claimant is employed and has suffered a loss of earnings (even if this is only a past loss of earnings), then consideration needs to be given for a corresponding pension loss.

Every relevant employee now has to pay a minimum of 5% of their qualifying earnings into their workplace pension, with their employer paying 3%, giving 8% in total.

For example, if an employee has suffered a past loss of earnings of £10,000pa (gross), they could have a corresponding pension loss of £800 (8% of £10,000).

However, in reality, the pension loss calculation is much more complex than this. It is dependent upon the type of scheme the employer offers and what they deem as qualifying earnings.

Indeed, some employers still offer a more lucrative Final Salary or CARE pension scheme (e.g. NHS, Civil Service, Police, Fire Service, Armed Forces, Teachers, Royal Mail), which would give a much higher value pension loss than that estimated in the above calculation.

To discuss a potential case, contact us on 0113 387 5670, email enquiries@forthsonline.co.uk or fill out a Contact Form .

Fatal Accident / Lost Years Pension Claims

In fatal accident and lost years claims, do not forget to consider a loss of dependency or lost years on State Pension, in addition to any private or workplace pensions, whether this be for an employed or self-employed individual.

For example:

The husband was involved in a fatal accident, he was a self-employed Electrician.
His wife was a self-employed Beautician.
They were of a similar age and had no private pension provisions
Her annual loss of dependency on his State Pension from retirement would be £2,921pa, calculated as follows:

£8,767 [His State Pension] + £8,767 [Her State Pension] x 66.66% - £8,767 [Her State Pension]

We offer both Expert CPR and White Label / Agency Services to assist in quantifying your client’s financial loss, either in consideration of both earnings and pension loss, or on a standalone basis.

Call us on 0113 387 5670

Email us at enquiries@forthsonline.co.uk

Or fill out a Contact Form and we will be in touch

New Discount Rate

Tue, 16 Jul 2019 09:05:06 GMT

On 6th December 2018 the Lord Chancellor presented a call for evidence around the setting of the Personal Injury Discount Rate, pursuant to the enactment of the Civil Liability Act 2018.

In the Civil Liability Act, important changes were made to the way that the Discount Rate, prescribed by the Lord Chancellor, would be set. Specifically, these changes were intended to ensure that the Discount Rate reflects the return that, in the opinion of the Lord Chancellor, a Personal Injury Claimant could reasonably be expected to receive from investing a lump sum award of damages for future loss in a diversified low risk portfolio.

This differs from the previous basis of assessment, whereby the Discount Rate was set with reference to very low risk investments.

On the basis of this call for evidence, on Monday, the Lord Chancellor revised the Discount Rate from -0.75% to -0.25%, a rate which will come into force on 5th August 2019 and remain for a period of up to 5 years.

It is likely that the new Discount Rate will be relatively well received by the Claimant community whilst the Defendant community will be disappointed, in that the rate represents the lowest end of their range of expectations.

So what does this mean?

The Discount Rate change will impact on the value of claims where there are elements of future loss to the Claimant.

In a practical and general sense, claims for future loss will decrease based on the revised Discount Rate.

How can we assist?

If you already have instructed us on a case, please contact us if you wish our report / calculations to be updated for the revised Discount Rate.

We assist in quantifying complex special damages elements in all types of PI and clinical negligence cases, including where there is a future loss.

We are regularly instructed to assist in calculating loss of earnings, pension loss and dependency claims, either on an Agency or Expert basis.

To discuss a case on a no obligation basis, call us on 0113 387 5670, email us at enquiries@forthsonline.co.uk or fill out an Enquiry Form .

Is my Expert an Expert?

Fri, 07 Jun 2019 13:17:12 GMT

The events in the recent criminal carbon credits fraud trial, in which the main prosecution Expert Witness was found to have no academic qualifications and had not even read a book on the subject he purported to be an expert in, have unfortunately resulted in unwarranted negative publicity for Experts as a whole.

Regardless of the obvious questions around the due diligence that the CPS adopted in selecting their Expert, the fact is that the Expert in this instance, was not what he held himself out to be and that had huge ramifications for both the specific trial in question and, in all probability, historic trials that he has been involved in.

In terms of the wider ramifications for other Experts, this will no doubt lead to a greater critical examination of credibility type issues, particularly in trials, for Experts on both sides of the fence and it is important, therefore, that credibility is established at the date of instruction.

So what makes an Expert expert in the context of legal proceedings? At Forths, we believe that there are 3 main elements; professional qualifications, experience and an understanding of duty to the Court.

Professional qualifications are vital in that they provide the academic and, importantly, ethical framework which is the foundation on which specific experience and knowledge of the Court system are built to create a rounded and effective expert with the integrity to avoid cutting corners and partisan behaviours.

With Forths, you can be assured that all of our signatory Experts are fully qualified accountants with many years full time experience in the Forensic Accountancy field and are au fait with all of their duties under the relevant procedure rules.

We are renowned for our robust and well reasoned opinions and for reports that clarify and simplify complex issues.

As has been shown by recent events, occasionally all may not be as it seems but you can trust in us and know that our Experts are true experts in the work they undertake.

To discuss a potential case under no obligation, contact us here .

Personal Injury Discount Rate Review

Liamb@forthsonline.co.uk (Liam Bottomley) — Tue, 23 Apr 2019 10:33:44 GMT

On March 19th, 2019, David Gauke, the Lord Chancellor and Justice Minister, began the Government’s review into the personal injury discount rate. The results of the review, which has a strict 140-day window for completion, are expected to be published on 5th August.

What is the personal injury discount rate?

The payment received by a claimant who has been the victim of either a personal injury or clinical negligence is adjusted by a factor called the “personal injury discount rate”.

Lump sum payments (or periodic payments if applicable) made to claimants are calculated on the basis of future ongoing annual losses a claimant will experience (the “multiplicand”) and another amount ascertained by referring to the personal injury discount rate (the “multiplier”).

The “multiplicand” and “multiplier” are then multiplied by each other and the result of this calculation is the current value of the eventual loss over the lifetime of a claimant who invests that lump sum in a “risk adverse” way over the remainder of their lifetime.

The discount rate is calculated against the returns made on index-linked Government security following the ruling in the Wells vs Wells [1999] 1 AC 345 case that claimants should be treated as ordinary investors who sought certainty and security in their investment approach – a “very low risk” approach.

Why is the personal injury discount rate being reviewed?

When the discount rate was first set in 2001, it was set at a rate of 2.5%. The return on index-linked government investments plummeted following the financial crisis around a decade ago, eventually leading to a change in the discount rate to -0.75% on 20th March 2017. The new discount rate represented a shift from a “very low risk” investment strategy to a “low risk” investment strategy.

As a result, this change in the personal injury discount rate has led higher than previously awarded levels of compensation for claimants. A 25-year old with a life expectancy of 70 would receive 51.33 times the lump sum with a discount rate of -0.75% as opposed to 26.4 times the lump sum with a discount rate of 2.5%.

The change in approach has not been without controversy. Liz Truss, the Lord Chancellor at the time, announcing the new policy, was praised by claimants for the move however defendant insurers called for a meeting with Philip Hammond, the chancellor, within 24 hours to ask the Government to change its mind. At the time, very few expected the discount rate to be set at a negative figure and this change, insurers contend, means that insurance premiums have been pushed up for businesses and consumers as a result of having to pay much higher lump sums to personal injury or clinical negligence claimants

Opposing views

Speaking to ClaimsMag , Association of Personal Injury Lawyers president Brett Dixon said that “the needs of some catastrophically injured people are best served by a lump sum payment, others by instalments and still others by a combination of the two. If the government is determined to make changes to the discount rate, it is important to make sure we have a new way of using periodical payment orders at the same time.” He urged the government to place the needs of victims whose lives have been changed through no fault of their own as the highest priority.

In welcoming the announcement of the review, James Dalton, director, general insurance policy, Association of British Insurers (ABI) told AOL that “Insurers remain committed to paying 100% compensation and want to see a process for setting the discount rate that delivers a fair outcome for claimants, motorists and taxpayers. The outcome of the review must deliver this, and we will continue to play our part to ensure that it does.”

There is little doubt about the importance of the outcome of the personal injury discount rates review to both sides. As summed up by the Law Gazette , "the government will today set the ball rolling on potential changes to the personal injury discount rate - with insurers and claimants standing to lose or gain millions depending on fractional shifts".

Forensic Accountants

Our experienced team assist in all types of personal injury and clinical negligence cases ranging from thousands to multi million pounds in value. We have specialist expertise to assist in quantifying loss of earnings, loss of pension and dependency elements, particularly in cases with complex scenarios.

For more information, or to discuss a potential case, call us on 0113 387 5670, email us at enquiries@forthsonline.co.uk or fill out an Enquiry Form and we will contact you directly.

Festive Opening Times

Liamb@forthsonline.co.uk (Liam Bottomley) — Thu, 20 Dec 2018 07:44:48 GMT

Our opening times over the Festive Season are as follows....

Thank you from all the team at Forths for your support this year. We wish you all the best for 2019 and look forward to working with you next year.

Festive Opening Times:
Friday 21st December - 9am - 2pm
Monday 24th December - 9am - 4pm
Thursday 27th December - 9am - 5.30pm
Friday 28th December - 9am - 5.30pm
Monday 31st December - 9am - 4pm
Wednesday 2nd January - 9am - 5.30pm

If you have an enquiry out of office times, you can contact us here , or by emailing enquiries@forthsonline.co.uk

Civil Liability Bill Update

Thu, 21 Jun 2018 00:00:00 GMT

The government recently voted on the report stage of the proposed Civil Liability Bill after amendments put forward by key members of the House of Lords.

Former Lord Chief Justice, Lord Woolf, had led efforts to persuade the government to remove the proposed tariff for whiplash injuries. In addition, a further proposed amendment from the Lords was to increase the small claims limit for RTA cases to £5000 and £2000 for other personal injury cases.

Lord Woolf also argued that the judiciary should be set the task of assessing damages rather than the government.

Small Claims Limit

After considering the amendments put forward, the proposals were voted down by peers. However, the government did make some concessions.

Lord Keen of Ellie the justice spokesman suggested that the Ministry of Justice (MoJ) was considering that vulnerable road users, including cyclists and pedestrians, were omitted from the small claims limit increase.

It was also stated that the MoJ was considering a requirement for insurance companies to report on how premium savings are passed onto consumers following the reforms.

Further to this, Lord Keen stated that a review of the damages tariff must be undertaken within three years of implementation, and thereafter every three years.

The amendments put forward by the Lords were significant. However, peers voted 218 to 205 against.

Assessing Personal Injury Damages - call 0113 387 5670

Still to be considered by the government is the amendment to the personal injury discount rate. Currently set at -0.75% to represent ‘very low risk’ investment, there are indications that the rate will be amended to reflect investments that are ‘low risk’ following the settlement of cases.

The recent developments represent another step forward towards further reforms and will be met with contrasting opinion from both Claimant and Defendant sides of the personal injury market.

At Forths Forensic Accountants we assist in quantifying financial loss in all types of personal injury and clinical negligence cases, with particular expertise in complex and high value loss of earnings and loss of pension calculations.

To discuss a potential case with one of our experienced forensic accountants, call us on 0113 387 5670, email us at enquiries@forthsonline.co.uk or fill out an Enquiry Form and we will contact you directly.

"Tainted Gifts" - Revisited

Thu, 19 Apr 2018 00:00:00 GMT

You may remember, in June 2017, we published a short article titled "Tainted Gifts" - Is Recoverability an Issue? in which we explored the importance, or not, of the recoverability of “tainted gifts” in confiscation proceedings .

Click here to read more - www.forthsonline.co.uk/announcements/tainted-gifts-in-confiscation-proceedings

We concluded by stating that the recoverability of “tainted gifts” does not appear to be a factor when calculating the recoverable amount, on the basis that it would defeat the point of POCA to say that “tainted gifts” have no value and, as such, should not be included as part of confiscation proceedings, simply because the Defendant cannot get them back.

In support of our opinion, a recent Court of Appeal case, involving a solicitor who was jailed for stealing millions from her clients and the Church of England, found that the judge who issued the original confiscation order had been wrong to discount the value of various “tainted gifts” which she had given to her family from the stolen money.

To summarise, in November 2017, the Defendant was ordered to pay back more than £1.9m, made up of £1.5m (free property) and £470k of “tainted gifts”, which the prosecution appealed on the basis that the “tainted gifts” figure should have been higher by approximately £500k.

The judge held that it would be disproportionate to include sums in the recoverable amount unless there was some legal or moral basis on which to consider that they would be recoverable by the Defendant from the recipients.

The Court of Appeal disagreed, stating that it is hard to conceive of a case where it would be proper to reduce the amount in a confiscation order in the “tainted gifts” regime without hearing oral evidence from the Defendant and those called on her behalf, and without full disclosure of documents concerning the financial circumstances of all relevant persons.

Further, that it is wrong to embark on a process almost akin to tracing the stolen money into the hands of third parties, and to find that if no assets could be found which represented the gift, then that gift should not be included in the recoverable amount.

The “tainted gifts” regime operates by the imposition of an order on the convicted person as an incentive for them to recover the proceeds of their crime from persons to whom they have passed them, by whatever means are available.

What those persons have done with them, or whether they received them knowing of their criminal origin, are likely to be largely irrelevant factors. What matters is whether the Court is satisfied that the resulting order is disproportionate. If not, then the order must be made in the full value of the tainted gifts.

As a result, the Court allowed the appeal and substituted the sum of £2.45m in the confiscation order.

For more information or to discuss a potential case with our criminal defence forensic accountants, call us on 0113 387 5670, email us at enquiries@forthsonline.co.uk or fill out an Enquiry Form and we will contact you directly.

Unexplained Wealth Orders (UWO)

Mon, 12 Feb 2018 00:00:00 GMT

Unexplained Wealth Orders (UWO) have come into force giving new powers to the National Crime Agency, the Serious Fraud Office and the Crown Prosecution Service.

The new legislation allows the crime agencies to freeze and recover assets that they believe have been obtained from proceeds of crime . The powers will be used to investigate those suspected of serious crime and where the assets in question are valued at £50,000.

It is believed the powers will be used as a tool to assist the crime agencies in targeting individuals rather than those suspected of high level organised crime and corruption.

New Powers to Crime Agencies

Critics have argued that the defence against such orders would be very difficult, with individuals having two options, to either comply with the UWO or not. Failure to comply could lead to contempt of court charges, and if misleading or false information is provided in response to a UWO, a separate criminal charge could be brought, which may lead to imprisonment.

If an individual complies with the UWO, the crime agency that imposed it must decide what action to take within 60 days.

Unexplained Wealth Orders were introduced through the Criminal Finances Act 2017.

Criminal Defence Forensic Accountants - Call 0113 387 5670

Our experienced team of criminal defence forensic accountants assist solicitors and barristers in a wide range of cases involving serious crime.

Our team has a wealth of experience in cases involving money laundering, fraud, proceeds of crime (POCA), tax evasion, theft from employer, counterfeiting and benefit fraud.

We also undertake work at Legal Aid Agency rates.

To discuss a potential case with our criminal defence forensic accountants, email us at enquiries@forthsonline.co.uk , call 0113 387 5670, or fill out an Enquiry Form and we will contact you directly.

Impact of the Criminal Finances Act 2017

Thu, 11 Jan 2018 00:00:00 GMT

The Criminal Finances Act 2017 (CFA) came into force on 30th September 2017. It represents a radical overhaul of the Proceeds of Crime Act 2002 (POCA) anti-money laundering and confiscation regime. The act also creates a new offence that is relevant to solicitors and other professionals providing any form of tax advice - failing to prevent the facilitation of tax evasion. CFA strengthens civil recovery of the proceeds of crime; creates ‘unexplained wealth orders’ and extends existing investigation powers in relation to money laundering and terrorist finances.

Reinforcement of civil recovery powers

The new Act adds a further 45 new sections to Part 5 of POCA (which deals with civil recovery) and brings in to force two entirely new chapters - 3A ‘Recovery of listed assets in summary proceedings’ and 3B ‘Forfeiture of money held in bank and building society accounts’.

Chapter 3 of POCA 2002 already allowed officers to:

search for cash;

detain cash (on ‘reasonable grounds’ that cash is suspected to be ‘recoverable property’ – i.e. the proceeds of crime); and

forfeiture of seized cash where the court is satisfied (on the civil standard - balance of probabilities) that the cash is ‘recoverable property’.

The new provisions extend powers far beyond just cash, allowing all but the search provisions to apply to monies in bank or building society accounts. The practicalities are that bank accounts may be frozen (for up to 2 years) under an ‘account freezing order’ followed by forfeiture.

There is provision for the account holder to be informed of the making of the freezing order and for monies to be withdrawn – for example to meet living expenses or to allow the running of a business, as well as to meet appropriate legal costs. There are also provisions to set aside or vary the order and for late objections and appeals.

Chapter 3A, extends similar provisions (including search powers) to assets including precious metals, precious stones, watches, artistic works, face-value vouchers and postage stamps. As with bank accounts a minimum value of £1,000 applies.

s14 of CFA extends the POCA definition of cash to include gaming vouchers, fixed-value casino tokens and betting receipts. The idea is to cover what might be described as ‘cash substitutes’ which could be used by criminals as alternative means of holding and transferring value.

Unexplained wealth orders

In the aftermath of the Panama Papers scandal the government gave law enforcement agencies new powers to seize suspected criminal property without bringing a prosecution. Two groups of individuals – politically exposed persons (PEPs) or those involved or associated with serious crime can be made subject to an unexplained wealth order (UWO).

Serious crime refers to an offence set out in Schedule 1 to the Serious Crime Act 2007 (including some drug trafficking, arms trafficking, people trafficking and modern slavery offences, organised crime, money laundering, firearms offences, prostitution offences, fraud, tax evasion, bribery, counterfeiting and trade mark offences, poaching and environmental offences).

In the case of PEPs, no proof of a link to criminal behaviour is required. Orders for disclosure of the nature and extent of their interest in property and an explanation as to how they obtained it can be made by the High Court where there are reasonable grounds for suspecting that a person holds assets disproportionate to their known income. Failing to comply with an order can mean that the property is deemed to be ‘recoverable’ for the purposes of the civil recovery provisions of part 5 of POCA.

UWO’s require an individual to set out the nature and extent of his interest in the property specified in the order, and to explain how he obtained that property in cases where that person’s known income does not explain ownership of that property. Amending the original proposals, the House of Lords lowered the threshold so that a UWO can be made with property valued at £50,000 rather than £100,000.

Failure to prevent the facilitation of tax offences

The Act creates, at sections 44 to 52, a new offence of failing to prevent the facilitation of tax offences. This new offence may be committed by an organisation such as a limited company or a partnership (but not by an individual). The essence of the offence is that where an individual has committed an offence which has facilitated a tax offence by another, then the organisation with which he is connected (typically his employer) may be prosecuted for its failure to prevent the individual committing his offence.

The new offence is modelled on s7 of the Bribery Act 2010 offence of failure of commercial organisations to prevent bribery.

For example, if an employee of a bank or a firm of accountants facilitates a tax offence by a customer or client, then not only will that employee be liable to prosecution (as he is now) for his criminal conduct in facilitating the tax offence but the organisation will be liable to prosecution for this new offence. In this way the government intends to hold organisations to account for the criminal misconduct of their employees and other persons acting on their behalf.

Under existing law, the organisation would only be liable to prosecution if the ‘directing minds’ of the organisation were engaged in criminal conduct. Because employees who commit tax evasion facilitation offences are typically not at the most senior level of the organisation which employs them the organisation itself is not currently at risk of prosecution. The Act changes that.

As with the Bribery Act offence, guidance will be issued to assist organisations to set up appropriate procedures to prevent tax evasion facilitation offences by their employees and agents. Key principles are likely to include risk assessment, prevention procedures, due diligence, staff training, monitoring and review.

Suspicious Activity Reports and the moratorium period

Powers in CFA aim to make the Suspicious Activity Reports (SAR’s) regime more effective. New s12, allows the National Crime Agency (NCA) to require any person within businesses subject to the Money Laundering Regulations, and obliged to make a Suspicious Activity Report, to provide relevant information to the NCA where the NCA has received a SAR (whether from that person or another) or a request by an overseas authority. If necessary, an order may be made compelling disclosure of the required information (with a penalty of up to £5,000 for non-compliance).

The previous SARs regime meant that where a bank/accountant/lawyer made a SAR, they were then relieved of any obligation of client confidentiality with regard to the content of the SAR, but were not able to provide follow up information or further details to the NCA where ordinary client confidentiality prevented that disclosure. So once the report had been submitted the reporter was effectively stopped from providing further details. The provisions in the Act remove any obstacle to the supply of further information (except where legally privileged).

Increasing investigation powers

CFA contains various provisions relating to powers of investigation. In particular amendments made by s7 allow ‘disclosure orders’ under s357 POCA 2002 to be obtained in connection with money laundering investigations and, by s33, the investigation powers of Part 8 POCA 2002 become available for revisits under s22 POCA 2002 to a defendant’s available amount in relation to an existing confiscation order.

Conclusion

The CFA is intended to significantly improve the UK government’s ability to tackle money laundering, corruption, tax evasion and terrorist financing. Financial profit is at the heart of almost all forms of serious and organised crime and the new provisions in the Act are intended to create new powers to help both law enforcement agencies and the private sector investigate and tackle these types of crimes.

Our criminal defence team assists solicitors and barristers across the UK in a wide range cases involving serious crime. We also undertake work at Legal Aid Agency rates. To discuss a case with our experienced team of forensic accountants, call us on 0113 387 5670, email us at enquiries@forthsonline.co.uk or fill out an Enquiry Form and we will contact you directly.

Discount Rate Change to be Delayed?

Thu, 14 Dec 2017 00:00:00 GMT

MPs have called for the latest change in the personal injury Discount Rate to be delayed.

At a recent justice committee meeting, it was recommended that the government gather ‘unambiguous’ evidence about the way in which Claimants invest lump sum damages awards prior to any changes in legislation.

Personal Injury Discount Rate

The Discount Rate is applied when assessing the level of compensation a Claimant should receive by way of a lump sum. It is based on the levels of risk involved when a Claimant invests the damages award, and therefore how much they can make as a return. The lower the interest rate, the higher the level of lump sum compensation a Claimant will receive.

The proposed change relates to the rate being set at ‘low risk’, with some estimating this to be set between 0 and 1%.

It was announced in September that changes to the Discount Rate would go ahead. However, the proposals are yet to be approved by parliament.

In February 2017 the Discount Rate was changed from 2.5% to -0.75% by the then Lord Chancellor Liz Truss, without a consultation taking place, therefore causing some criticism. The MoJ was also criticised for failing to provide a financial impact statement based on the new Discount Rate.

Discount Rate Change

The ongoing speculation around the Discount Rate change draws divided opinion from both Claimant and Defendant camps in the market.

This latest announcement from the justice committee, recommending that evidence be gathered prior to parliament making a decision on the proposed Discount Rate change, will further delay matters. However, given the divided opinion following the rate change in February, the government will be hoping to decide on a system that is fair for all going forward.

Our team of forensic accountants assists in quantifying special damages in all types of PI and clinical negligence cases, in particular around complex loss of earnings , loss of pension and loss of dependency .

To discuss a case under no obligation call us on 0113 387 5670, email us at enquiries@forthsonline.co.uk or fill out an Enquiry Form and we will contact you directly.

Christmas and New Year Opening Times

Thu, 14 Dec 2017 00:00:00 GMT

Our Christmas and New Year opening times are as follows:

Friday 22nd December – 9.00am to 2.00pm

Wednesday 27th December – 9.00am to 5.30pm

Thursday 28th December – 9.00am to 5.30pm

Friday 29th December – 9.00am to 5.30pm

Tuesday 2nd January – 9.00am to 5.30pm

We thank you for your support throughout 2017 and look forward to continuing to support all our clients in 2018.

Wishing you the best for the Festive Season and 2018.

The Forths Team

Recent POCA Cases

Mon, 20 Nov 2017 00:00:00 GMT

Our criminal defence forensic accountants assist solicitors and barristers in a wide range of cases involving Proceeds of Crime Act (POCA) . Here are some of our recent results....

Criminal Defence Accountants - call 0113 387 5670

R-v-A - NCA led operation into a conspiracy to supply controlled drugs of class A.

The alleged benefit obtained as a result of the Defendant’s particular and general criminal conduct was c£40,000 (value of drugs) and c£370,000 (property transferred) respectively.

Total benefit c£410,000.

We were able to demonstrate that the assumptions made by the Prosecution were incorrect, leading to an Order being made for the value of the drugs only.

Total reduction in benefit c£370,000.

R-v-L - Conspiracy to commit mortgage fraud.

The alleged benefit obtained as a result of the Defendant’s particular and general criminal conduct was c£406,000 (mortgage advance) and c£886,000 (property transferred) respectively.

Total benefit c£1,292,000.

Not only, were we able to demonstrate that the assumptions made by the Prosecution were incorrect, but we were also successful in reducing the particular benefit, leading to an Order being made for just c£8,500.

Total reduction in benefit c£1,283,500.

R-v-K - NCA led investigation.

Conspiracy to defraud, possession of articles for use in fraud and concealing, disguising, converting and transferring criminal property.

The alleged benefit obtained as a result of the Defendant’s particular and general criminal conduct was c£2,000,000 and c£5,300,000 (property transferred) respectively.

Total benefit c£7,300,000.

We were able to demonstrate that the assumptions made by the Prosecution were incorrect, leading to an Order being made for c£4M.

Total reduction in benefit c£3,300,000.

Our team of forensic accountants undertake work at Legal Aid Agency rates. To discuss a potential case, call us on 0113 387 5670, email us at enquiries@forthsonline.co.uk or fill out an Enquiry Form and we will contact you directly.

Small Claims Limit Update

Wed, 01 Nov 2017 00:00:00 GMT

Lord Chancellor David Lidington has confirmed that the government plans to push ahead with its proposals to increase the small claims limit.

Speaking at a justice select committee meeting, Mr Lidington said that the small claims limit for RTA cases would rise to £5,000 and the limit for other PI cases would be set at £2,000. A fixed tariff of damages would also be introduced under the changes.

Details of when the reforms are to be implemented were not confirmed by Mr Lidington. However, he did state that they were in the pipeline, but that Brexit negotiations were the government’s priority.

Small Claims Limit Increase: Our View

The impact of the increase in the small claims limit (notwithstanding any further reforms) will serve to reduce costs / disbursements recoverable from insurers such that, inevitably, there will be an increase in the adoption of damages based agreements.

What is certain is that there will still be Portal cases with potentially complex loss of earnings calculations and scenarios, and this is where our team of experience forensic accountants can assist.

Special Damages Calculations - Call 0113 387 5670

At Forths, we have always tried to provide innovative solutions such as our Expert Portal and White Label Services, and we are currently in discussions with our clients around how we will support them on lower value cases when the changes come into play.

We are always open to suggestions and so if you would like to discuss any potential ideas, do please get in touch.

If you have a case involving complex loss of earnings (for example, a self employed client), loss of pension or a dependency claim , our team of forensic accountants can assist.

To discuss a case, call us on 0113 387 5670, email us at enquiries@forthsonline.co.uk or fill out an Enquiry Form and we will contact you directly.

Fixed Costs Reforms Latest

Fri, 15 Sep 2017 00:00:00 GMT

Reports emerged this week that the implementation of extended fixed costs is unlikely to happen before April 2019, or potentially October 2019.

Lord Justice Jackson released details of the extended fixed costs proposals at the end of July this year. However, the government has not yet announced when the consultation into the proposed reforms would commence.

Fixed Costs Proposals

Among the proposals were a fixed costs grid outlining ‘complexity bands’ based on the level of work that would be involved in a case, the introduction of an ‘intermediate track’ for claims up to a value of £100,000, and also the introduction of fixed costs across all fast track cases.

The government has said that it would set out more details of the reforms, but it is unclear when this will happen. The delays in part may be down to the knock on effect of the general election earlier this year.

It has also been highlighted that the Civil Liability Bill, which covers the potential tariff for whiplash damages, has not been included in the bills presented to parliament following the general election.

Clinical Negligence Fixed Costs

This week has also seen clinical negligence lawyers meet with MPs to raise their concerns over the proposed fixed costs in clinical negligence cases.

Members from the Society of Clinical Lawyers (SCIL) were at Westminster to state their position against the proposals, and reinforce that the most important factor remains patient safety.

According to a recent National Audit Office report, it is estimated that the Department of Health will save an £90m a year by 2020/21, but that the costs of claims will increase from £1.6bn to £3.2bn.

With the Department of Health is in the process of preparing its response to a consultation, Lord Justice Jackson has urged that a working party should be set up including the Civil Justice Council, health ministers and representatives from both Claimant and Defendant sides.

Our team of forensic accountants assist in quantifying the loss of earnings, loss of pension and loss of dependency elements in all types of personal injury and clinical negligence claims.

To discuss a potential case on a no obligation basis you can call us on 0113 387 5670, email us at enquiries@forthsonline.co.uk or fill out an Enquiry Form and we will contact you directly.

Date Announced For PI Discount Rate Review

Thu, 27 Jul 2017 00:00:00 GMT

The government has announced a date by which it is to make a decision on whether to revise the current discount rate for personal injury damages.

A date of 3rd August has been suggested for the MoJ to respond to the consultation which closed in May. It was revealed in a recent House of Lords debate that there had been 135 responses to the consultation on the discount rate.

Personal Injury Discount Rate Consultation

Justice Minister Lord Keen of Elie said it is was the hope of the government that the consultation would ensure a fairer system for both claimants and defendants, and it would keep true to the principle that claimants were paid ‘no more or no less than they should be’.

There was criticism of the decision made in February this year to amend the rate from 2.5% to -0.75% prior to a consultation. However, it was said that the previous Lord Chancellor, Liz Truss, had acted correctly under a legal obligation to amend the rate which was deemed outdated.

When the discount rate amendment was announced, the decision was faced with criticism from defendants, with suggestions it would impact on insurance premiums and the NHS. There was also criticism of the MoJ for failing to provide a financial impact statement based on the new discount rate.

Special Damages Awards

There are still contrasting views from both side of the fence, and there have been calls for the rate to be reviewed and set by a panel of experts rather than the Lord Chancellor.

Recommendations have also been made for the discount rate to be reviewed regularly to ensure there is neither over compensation nor under compensation.

When the announcement on the consultation is made on 3rd August it is widely expected that there will be a further amendment to the current -0.75% discount rate.

Our team of forensic accountants assist in the pre-settlement phase of cases to quantify the loss of earnings , loss of pension and loss of dependency elements in all types of personal injury and clinical negligence claims.

To discuss a potential case on a no obligation basis you can call us on 0113 387 5670, email us at enquiries@forthsonline.co.uk or fill out an Enquiry Form and we will contact you directly.

Survey Reveals Claimant View of Discount Rate

Tue, 20 Jun 2017 00:00:00 GMT

A survey into the personal injury Discount Rate has revealed the perceptions of Claimant practitioners.

The research was commissioned by leading QC Bill Braithwaite and has highlighted the perceptions and predictions of Claimant lawyers following the introduction of the new -0.75% rate in March this year.

Former chancellor Liz Truss faced criticism from insurers when a new Discount Rate of -0.75% was announced. However, prior to the change, the rate had not been updated since 2001 despite pressure from Claimant practitioners.

When the new rate was announced, it was confirmed that it would be subject to review following a further government consultation.

PI Discount Rate Consultation

The research has revealed that 81% of Claimant practitioners believe that the government will release the findings of its latest consultation next year.

Other key findings include:

Only 10% believe that the government will leave the rate at -0.75%.
16% believe it will change to 0%.
65% believe it will be amended to between 1% and 1.5%.
28% of Claimant practitioners have settled future loss claims since the rate change.

The government will be met with opinions from both Claimant and Defendant sides of the coin.

The majority of Claimant practitioners seem to be resigned to the fact that the Discount Rate will change.

Recently a different report highlighted that insurance companies had collectively suffered losses of £3.5bn following the change to the rate.

Forensic Accounting in PI and Clinical Negligence Cases

Our team of forensic accountants assist in the loss of earnings , loss of profit , loss of pension and dependency elements in a wide range of personal injury and clinical negligence cases.

Our input can ensure that the Claimant’s special damages are accurately quantified in order to assist in the smoother settlement of cases, and we can often ensure swifter costs resolution for our clients.

To discuss a personal injury or clinical negligence case with our experienced team of forensic accountants, you can call us on 0113 387 5670, email us at enquiries@forthsonline.co.uk or fill out an Enquiry Form and we will contact you directly.

"Tainted Gifts" - Is Recoverability an Issue?

Tue, 06 Jun 2017 00:00:00 GMT

The involvement of third parties in confiscation proceedings can be problematic, especially in the context of “tainted gifts”.

The case of R v Smith (2013) EWCA Crim 502 highlights the importance, or not, of the recoverability of “tainted gifts” when assessing their value.

In this particular case, the appellant argued that sums of money given to family members were irrecoverable and, therefore, should be regarded as having no value for the purposes of determining the recoverable amount.

However, the Court of Appeal ruled that it did not matter whether, or not, there was a likelihood of the “tainted gifts” being returned by the recipient, on the basis that:

There is no mention of recoverability when valuing “tainted gifts” under s81 of POCA.

The purpose of the “tainted gifts” provision is to prevent Defendants from dissipating their assets by giving them away.

Intuitively, therefore, it would defeat the point of POCA to say that “tainted gifts” have no value and, as such, should not be included as part of confiscation proceedings, simply because the Defendant cannot get them back.

It is apparent therefore that the recoverability of “tainted gifts” is not an issue when calculating the recoverable amount.

Forensic Accountants - call us on 0113 387 5670

If you require an Expert's assistance, we have an experienced team of forensic accountants who assist solicitors and barristers in a wide range of criminal defence cases relating to proceeds of crime , money laundering , fraud and confiscation .

We also undertake work at Legal Aid Agency rates.

To discuss a case or for a quote, you can call us on 0113 387 5670, email us at enquiries@forthsonline.co.uk or fill out an Enquiry Form and we will contact you directly.

Prison and Courts Bill Postponed

Thu, 20 Apr 2017 00:00:00 GMT

It has been confirmed that the government will not press ahead with the legislation behind the Prison and Courts Bill in the lead up to the general election that was announced for 8th June.

Following Teresa May’s announcement this week, the leader of the House of Commons has confirmed that the proposed legislation will not be included before parliament is dissolved in May given that the legislation has not yet passed through the bill committee.

Personal Injury Reforms

The news will be welcomed by claimant solicitors as it means that the expected date of the proposed reforms to the personal injury market, which would impose a rise in the small claims limit and a tariff system in whiplash claims, will not come into effect in October 2018 as previously estimated.

However, the announcement also means that there will be a postponement of the ban on defendants making pre-medical offers.

Until the results of the general election are announced, it is unclear when the proposed reforms to the personal injury market under the Prison and Courts Bill will be back on the government’s agenda.

The Criminal Finances Bill

The House of Commons announcement has also confirmed that the Criminal Finances Bill will go ahead as planned with lords amendments to the legislation taking place next week.

The Bill will bring new powers to the National Crime Agency (NCA) to request further information from financial institutions where there is a suspicious activity report (SAR).

The Criminal Finances Bill would also bid to tackle unexplained wealth through the seizure of criminal assets, alongside creating a criminal offence for a failure to prevent tax evasion.

Its overall aim is to crackdown on financial crime and money laundering with criminal investigation and financial agencies sharing data and information.

Forensic Accounting Services – 0113 387 5670

Our team provides the forensic accounting assistance in the quantum elements of a wide range of legal disputes.

The personal injury team assists in the complex loss of earnings , loss of pension and dependency elements in all types of claims.

The criminal litigation team assists solicitors and barristers in cases involving proceeds of crime, fraud , money laundering and confiscation .

To discuss a case with our team of experienced forensic accountants, call us on 0113 387 5670, email us at enquiries@forthsonline.co.uk or fill out an Enquiry Form and we will contact you directly.

The Relevant Day in Proceeds of Crime Cases

Thu, 13 Apr 2017 00:00:00 GMT

If the Court decides that the Defendant has a criminal lifestyle it must make assumptions for the purposes of deciding whether they have (a) benefited from their criminal conduct, and (b) deciding their benefit from the conduct.

The first and third assumptions are that any property transferred to, or expenditure incurred by the Defendant at any time after the relevant day, was obtained / met by them as a result of their general criminal conduct (transfers and expenditure). The Relevant Date is clearly significant for rebutting these assumptions.

The second assumption is that any property held by the Defendant at any time after the date of conviction was obtained by him as a result of his general criminal conduct (property held).

Seemingly, therefore, it is irrelevant when the property was actually acquired. Or is it?

In accordance with the second assumption, the Crown’s financial investigator will usually attempt to value the benefit obtained by the Defendant in one of the following ways:

The full current market value
The purchase price
The value of mortgages obtained / further advances obtained
Rental income

At worst, our forensic accountants have seen cases where several of these methods have been used in conjunction with one another, leading to double or even triple counting (and at the very least, a selection of the highest values given by the alternatives).

In our experience, however, where a property has been purchased prior to the relevant day, the Court is often sympathetic to the overwhelming burden imposed by the Crown on the Defendant, when attempting to rebut the second assumption, such that funds accumulated / transactions taking place prior to the relevant day (which were used to purchase the property in question) are not normally considered to form part of the Defendant’s general criminal conduct.

Our approach to dealing with the second assumption is necessarily unique to each case however, generally speaking, even where property is caught by the second assumption (i.e. the assumptions cannot be wholly rebutted) and it was purchased prior to the relevant date, then we would seek to calculate the increase in the value of the property from the start of the relevant period to date and then the proportion of that which was obtained as a result of the use of legitimate funds during that period (applying Waya).

Forensic Accountants - call us on 0113 387 5670

We also undertake work at Legal Aid Agency rates.

To discuss a case or for a quote, you can call us on 0113 387 5670, email us at enquiries@forthsonline.co.uk or fill out an Enquiry Form and we will contact you directly.

Personal Injury Discount Rate Consultation

Fri, 31 Mar 2017 00:00:00 GMT

The government has launched a consultation into the Discount Rate for personal injury damages.

Last month Justice Secretary Liz Truss announced that the Discount Rate was to be adjusted from 2.5% to -0.75%, with the change coming into effect on 20th March. When the adjustment was announced, Mrs Truss pledged that there would be a review into how the rate would be set in the future.

The rate adjustment was met with fierce criticism from insurers, whilst Claimant practitioners welcomed the change.

Damages in Personal Injury Claims

The consultation begins the process of a ‘root-and-branch’ review of how damages in personal injury claims are calculated, with a six week deadline set for responses.

The consultation will look at number of issues:

The methodology for calculating the rate.
Whether the rate should be set by an independent body.
Whether the rate needs to be reviewed more frequently.
Periodical Payment Orders, and whether they are more suitable than lump sum payments.

Mrs Truss said that the review will determine whether the current framework is fair for both Claimants and Defendant parties, and that it is not to review the recent rate change, but to look at the process that has been in place for the 16 years prior.

From a Claimant perspective, the review will assess the risk elements of how damages are invested, and ultimately, whether Claimants are receiving the right amount of compensation.

Following the discount adjustment there were warnings from insurers that premiums would rise in order to cover the cost. The government also set aside an extra £6bn to cover the cost to the NHS over the next five years.

A link to the consultation can be found here – https://consult.justice.gov.uk/digital-communications/personal-injury-discount-rate/

Forensic Accounting

Our team of forensic accountants assist in calculating damages in all types of personal injury and clinical negligence claims. We assess the elements involving loss of earnings , loss of profit , loss of pension and loss of dependency for both employed and self employed Claimants.

To discuss your client’s case on a no obligation basis with our experienced forensic accountants, you can call us on 0113 387 5670, email us at enquiries@forthsonline.co.uk or fill out an Enquiry Form and we’ll contact you directly.

MPs Call For Inquiry Into Personal Injury Reforms

Mon, 20 Mar 2017 00:00:00 GMT

An inquiry into the personal injury reforms has been called for by MPs on the justice select committee.

The announcement was made on 17th March to confirm that the committee will be launching an inquiry into the controversial reforms under Part 5 of the Prison and Courts Bill, which relate to RTA whiplash claims and the plans to raise the small claims limit.

Personal Injury Reforms

Respondents have been invited to make written submissions of no more than 3,000 words by Friday 31st March.

The basis of submissions is to address five specific issues outlined in the official press release:

The definition of whiplash and the prevalence of RTA-related whiplash claims.
Whether or not fraudulent whiplash claims represent a significant problem and, if so, whether the proposed reforms would tackle this effectively.
The provisions in Part 5 of the Bill introducing a tariff to regulate damages for RTA-related whiplash claims, with an uplift in exceptional circumstances; and banning the settlement of claims without medical evidence.
The impact of raising the small claims limit to £5,000 for RTA-related whiplash claims, and of raising the small claims limit to £2,000 for personal injury claims more generally, taking account of the planned move towards online court procedures.
The role of claims management companies in respect of these matters.

Recently the proposed personal injury reforms have been questioned by MPs with the justice select committee chairman suggesting the MoJ should be targeting claims management companies. Beyond this, a member of the transport select committee suggested that the reforms would put genuine Claimants at the ‘risk of injustice’ rather than reducing insurance fraud.

Forensic Accounting Services - 0113 387 5670

At Forths our team of forensic accountants assist solicitors in the complex loss of earnings , loss of pension and loss of dependency elements in a wide range of personal injury claims.

Our Expert and Agency forensic accounting services have been developed to provide robust, independent and accurate findings to assist in quantifying a Claimant’s financial loss.

For an initial no obligation chat about your case with our experience team of forensic accountants, call us on 0113 387 5670, email us at enquiries@forthsonline.co.uk or fill out an Enquiry Form and we’ll contact you directly.

Personal Injury Discount Rate Change

Mon, 27 Feb 2017 00:00:00 GMT

Lord Chancellor Liz Truss has today announced a change in the discount rate used by Courts to calculate personal injury settlements from 2.5% to negative 0.75%.

The personal injury discount rate has been changed for the first time since 2001, and will come into effect on 20th March 2017. However, the government has announced that it will open a consultation before Easter to review the framework and consider further options for reform.

Personal Injury Discount Rate

The discount rate is used to reflect the value of money when calculating damages.

The Lord Chancellor has said that Claimants must be treated as risk averse investors as they will be dependent on the lump sum of damages often for long periods or the duration of their life.

The change will impact on the value of claims where there are heads of future loss.

Critics of the change have noted that the cost of claims will be driven up significantly, and that many Claimants will be over compensated. The Association of Insurance Brokers (ABI) has already warned that the cost of motor premiums could rise as a result.

In the context of clinical negligence claims, Truss warned of the knock on effect on the NHS and other public serving organisations with personal injury liabilities.

Calculating Damages in Personal Injury Claims - Call 0113 387 5670

For Claimants, could the change in discount rate mean that the major heads of claim for future losses will be challenged more aggressively?

If you have instructed us to assist in quantifying your Claimant’s losses and would like to review the claim in light of the discount rate change, please contact us.

We assist solicitors in the complex loss of earnings , loss of profit , loss of pensio n and loss of dependency elements in personal injury and clinical negligence cases.

To discuss your personal injury or clinical negligence case with our team of forensic accountants on a no obligation basis, you can call us on 0113 387 5670, email enquiries@forthsonline.co.uk or fill out an Enquiry Form and we will contact you directly.

Clinical Negligence Fixed Fees + Other PI Updates

Wed, 01 Feb 2017 00:00:00 GMT

Clinical Negligence Fixed Fee Consultation

On 30th January 2017, the government announced details of its consultation into the fixed costs regime in clinical negligence claims.

Health secretary Jeremy Hunt announced that the consultation will run until 1st May 2017 and is aimed at addressing the issues the government believes are affecting the clinical negligence litigation process.

The reforms are intended to drive down the cost of legal fees in lower value cases, up to £25,000, which the government argues are disproportionate to the level of damages awarded to Claimants.

The consultation proposes a fee scale for clinical negligence claims valued between £1,000 and £25,000. Also proposed as a potential option is adding a percentage of damages to fees.

The proposed threshold was originally reduced from £250,000 to £25,000, and brought in line with the upper limits set in other areas of personal injury reforms.

There will be greater clarity as the findings are announced in May, although in the meantime, the NHSLA is facing an investigation by the National Audit Office (NAO) into its processes for defending claims.

Personal Injury Discount Rate

The Lord Chancellor was this week expected to make an announcement in relation to her review of the Personal Injury Discount Rate following a consultation that began in December 2016.

However, it was confirmed on the London Stock Exchange that the announcement was not to take place as expected, but that there is a commitment to making an announcement in February.

The Discount Rate for PI compensation has been set at 2.5% since 2001, and Claimant groups have argued that this is too high given how interest rates have fallen since then. The knock on effect is that many Claimants are not receiving adequate compensation.

While there has been support for the consultation from the MoJ and from the Association of Personal Injury Lawyers (APIL), there had been an unsuccessful legal challenge from the Association of British Insurers which argued that the government consultation had not been properly completed.

The review was implemented again recently as the government ran consultations into the PI Discount Rate in both 2012 and 2013 but never published the results.

Insurance companies have expressed their concern against the review on the basis that compensation payout levels will have to increase and that insurers may have to pass the additional costs on in the shape of higher premiums, something the sector has been claiming to avoid through the whiplash reforms.

Whiplash Compensation Reforms

Meanwhile, research into the whiplash reforms commissioned by Claimant lawyers has revealed the potential impact it could have on the sector.

The research was commissioned by Access 2 Justice, and confirms that up to 35,000 jobs in the sector would be at risk if the proposed whiplash and small claims limit reforms go ahead.

Claimant law firms would lose out in approximately £20m in revenues with the research also highlighting that more than one in four firms could lose virtually all revenues from personal injury work.

How Forths Can Assist

Our team of forensic accountants assist in all types of personal injury and clinical negligence cases in the quantum elements including loss of earnings , loss of profit , loss of pension and loss of dependency .

To discuss a case on a no obligation basis, call us on 0113 387 5670, email us at enquiries@forthsonline.co.uk or fill out an Enquiry Form and we’ll contact you directly.

Report into Personal Injury Reforms Impact Assessment

Fri, 13 Jan 2017 00:00:00 GMT

The consultation into the government’s proposed changes to the PI industry closed recently.

The debate around the personal injury reforms continues to gather pace, with the issue being debated by government this week after being raised by Labour MP Rob Marris, who is a former partner at Claimant law firm Thompsons.

Personal Injury Reforms

Justice minister Sir Oliver Heald appeared to suggest that there will be no U-turn made by the government over the proposals, and that he was sure that the insurance companies will pass on the £40 per year savings onto motorists.

The justice minister stated that the number of claims had increased from 460,000 to 770,000 over the last ten years, with 90% of claims relating to whiplash.

Meanwhile, a report commissioned by Claimant groups opposed to the PI reforms has stated that the reforms would benefit insurers at the expense of taxpayers and motorists.

An independent economics consultancy was appointed by the Law Society, Association of Personal Injury Lawyers and Motor Accident Solicitors Society to review the government’s impact assessment (IA) and consultation on the small claims limit.

Small Claims Limit Consultation

The report suggests that the impact assessment makes an assumption that civil justice solicitors produce “no benefits to society”. The suggestion is that the impact assessment is flawed as it takes into account the potential increase in insurer’s profits, but not the reduction in legal fees that law firms will experience.

It states that, “The IA makes the implicit assumption that solicitors, and the civil justice system as a whole, produce no benefits to society so that any reduction in solicitors’ revenues is a benefit to society.”

With the government set to release its response to the consultation at the end of January, there will likely be some further clarity around the implementation of the proposals. In the meantime there will no doubt be continuing debates from both Claimant and Defendant sectors.

Our team of forensic accountants assist personal injury solicitors in calculating the loss of earnings , loss of profit , loss of pension and loss of dependency elements in all types of cases.

To discuss a potential case, call us on 0113 387 5670, email us at enquiries@forthsonline.co.uk or fill out an Enquiry Form and we’ll contact you straight away.

Personal Injury Discount Rate Consultation

Tue, 13 Dec 2016 00:00:00 GMT

Following a threat of legal action from the Association of Personal Injury Lawyers (APIL), the government is to announce the findings of its consultation into the discount rate for personal injury claims.

The discount rate is applied to a lump sum of damages awarded to personal injury Claimants to ensure that they are not over compensated. It takes relates to the amount deducted from the Claimant’s compensation to take into account any income from low risk investments of the awarded damages.

Personal Injury Damages Discount Rate

Since 2010, the rate has been set at 2.5% based on yields generated by ILGS (index-linked government stock). However, APIL has argued that as yields have declined due to changes in the economy, the rate is now set too high, and as a result it believes that many Claimants are now being under compensated.

The consultation into the discount rate was issued by the MoJ in August 2012, with a further consultation released in February 2013. The first consultation considered how the rate should be set, with the latter relating to the legal framework.

However, following pressure from APIL, the government confirmed that it will now publish its findings at the end of January 2017.

Calculating Special Damages in Personal Injury

Our team of forensic accountants assist personal injury practitioners in assessing the quantum elements of all types of case in relation to special damages. The results of the consultation into the discount rate will naturally have an impact on how the assessment of a client’s damages are analysed going forward.

If your client has a loss of earnings , loss of pension or loss of dependency element that requires consideration, you can discuss the case with our experienced team of forensic accountants in order to establish the accurate level of loss.

To discuss a case on a no obligation basis, call us on 0113 387 5670, email us at enquiries@forthsonline.co.uk or fill out an Enquiry Form and we will contact you directly.

Industrial Disease Claims - Companies House Records

Fri, 25 Nov 2016 00:00:00 GMT

The government has abandoned plans to reduce the amount of time it keeps records of dissolved companies kept on Companies House.

It faced criticism from campaigners in August after plans emerged that it Companies House would reduce the amount of time information about dissolved companies was kept from 20 years to just six.

Companies House Records

Companies House keeps a record of every company incorporated in the UK, including director and shareholder information, along with records of company accounts.

If the proposals went ahead, more than 2.5m company records would have vanished.

In June 2015, when the decision was made to make previously paid for information available free of charge on Companies House, there was a sharp rise in the number of company searches conducted. However, Companies House received complaints that the decision did not adhere to data protection law.

Campaigners in support of asbestos, and other industrial disease related illness, victims voiced their concern that some negligent companies would never be brought to account over the impact of historic working conditions on former employees lives.

Industrial Disease Claims

Many industrial diseases take many years to develop, and it was argued that the implementation of the proposals would have denied many victims their access to justice.

Our team of forensic accountants regularly use Companies House in order to access relevant records that assist in assessing the quantum aspects of legal cases.

We also assist solicitors in industrial disease cases where there is a loss of earnings , loss of pension or loss of dependency element involved in the case.

If you have an industrial disease case and would like to have an initial chat with our team of forensic accountants, call us on 0113 387 5670, email enquiries@forthsonline.co.uk or fill out an Enquiry Form and we will contact you directly.

Recent Criminal Cases

Wed, 02 Nov 2016 00:00:00 GMT

Our experienced team of forensic accountants assist in criminal solicitors and barristers in a wide range of cases, in pre or post trial phases across the UK. We undertake work at Legal Aid rates. To discuss a case or to receive a quote contact our team on 0113 387 5670 or email enquiries@forthsonline.co.uk

We assist in cases involving money laundering , proceeds of crime , confiscation orders and fraud .

Criminal Defence Forensic Accountants

Here is a summary of some recent cases our team of forensic accountants has assisted in:

R v T

Offence and Background:

Defendant alleged to have committed fraud by abusing her position as an administration and finance coordinator of a large shopping centre to steal £19,244.41. Denying the charges, the Defendant was alleged to have stolen money from customer lockers and an onsite childrens’ activity centre, which the management company of the shopping centre was responsible for collecting from.

Our Work on the Case:

Our forensic accountants reviewed daily logs compiled by the management company along with various witness statements to gain a better understanding of the systems and controls in place for collecting the monies.

We found that the Crown’s case was flawed in that a number of the Defendant’s colleagues had access to the monies and computer records. We found that there were a number of discrepancies in the management company’s records showing both surpluses and shortfalls.

Outcome:

The investigation by our team of forensic accountants showed that no theft of monies had in fact occurred. We were also able to show that a total in excess of £38,000 was identified from unknown sources.

The Crown offered no evidence on the first day of trial, with the Defendant’s solicitor stating that our report had a decisive impact on the thinking of the CPS.

R v S

Offence and Background:

Defendant was charged with 2 counts of producing Class B controlled drugs, 2 counts of handling stolen goods and 3 counts of concealing criminal property. The Defendant also owned various businesses and a property at which a cannabis farm was found.

Our Work on the Case:

Our forensic accountants analysed the Defendant’s personal and business accounts, and produced a full audit trail and evaluation of transfers treated as monies laundered. We also provided a reconstruction of rental and trading income.

Outcome:

The case was ultimately dropped by the Crown.

Call for a Quote - 0113 387 5670

R v N

Offence and Background:

Defendant was charged with 4 counts of possessing a controlled drug, possession of criminal property as £15,782.53 in cash and converting criminal property.

Our Work on the Case:

Our forensic accountants analysed the Defendant’s business and personal accounts, tax returns, sales books and records of his business.

Outcome:

The analysis completed by our team of forensic accountants was sufficient to explain that the monies received into the Defendant’s bank accounts explained all of the alleged cash expenditure identified by the Crown.

The Defendant pleaded guilty to an amended indictment of possession of drugs only.

To discuss a case with our team of forensic accountants or to receive a quote, call us on 0113 387 5670 or email enquiries@forthsonline.co.uk

Developments in the PI Market

Wed, 26 Oct 2016 00:00:00 GMT

It has emerged recently that the government’s proposals for reforms to the personal injury legal market have been put on hold.

The personal injury reforms were originally announced last November in the Autumn Statement. They centred around proposals to remove the right to claim for low value soft tissue injuries alongside proposals to raise the small claims limit from £1,000 to £5,000.

Personal Injury Reforms

However, according to reports, the government has intimated that the proposals still remain on the agenda, but just not for the moment. One claim has been that the MoJ are less keen on the proposals as a result of resistance from the legal sector, although it does concede that the number and cost of whiplash claims remains too high.

The news clearly has resulted in contrasting opinions from both claimant and defendant sides of the market.

There have been calls from both sides to encourage solicitors and insurers to work together with the government to clampdown on cold calling and fraudulent claims.

In further developments, an independent SRA study has found that the PI market is ‘generally working well’ having adapted well despite LASPO reforms.

Personal Injury Market Survey

An online survey into the PI market estimated to be worth £3bn revealed that:

Only 12% believe that solicitors are continuing to process frivolous claims.
MedCo has improved the relationship between solicitors, insurers and MROs.
Consumers still have a high level of access to legal services, despite concerns that there is a lack of knowledge within firms looking to diversify into new areas of PI.
Almost 1/3 of firms are continuing to diversify.
There were some concerns over poor solicitor competence, and even poor quality of evidence.
Claimant practitioners raised issue with some defendant firms making pre-medical offers.

It is clear from the recent developments that there continues to be active debate around the future of the PI market, and the SRA has confirmed that it will undertake a review of the concerns raised in the survey.

Our experienced team of forensic accountants assist in the complex special damages elements of all types of personal injury claims, particularly around loss of earnings , loss of pension and loss of dependency . To have an initial chat through a case on a no obligation basis, call us on 0113 387 5670, email us at enquiries@forthsonline.co.uk or fill out a Contact Form and we will be in touch.

Money Laundering and POCA - New Legislation

Wed, 19 Oct 2016 00:00:00 GMT

New legislation to tackle money laundering and proceeds of crime has been recently published by the government.

In the announcement made on 13th October 2016, it has been confirmed that law enforcement agencies will be given new powers to seize assets and funds that are believed to have been acquired through the proceeds of crime.

Confiscation of Assets - call our Forensic Accountants on 0113 387 5670

Law enforcement officers will now be able to seize a range of items, such as jewellery and works of art, under the new proposals. Officers will also be able to take swift action to freeze funds held in bank accounts that are believed to be linked to criminal activity, including funds linked to terrorism and corruption.

Also announced was the introduction of unexplained wealth orders, which will be used to force those suspected of criminal activity to justify how their gains have been acquired.

Announced under the Criminal Finances Bill is the strengthening of partnerships between the public and private sectors to help work against criminal activity. As a result, the National Crime Agency (NCA) will have powers to demand the release of information from financial institutions if it is believed that it will help in their investigations.

Also, given the increase in financial information that will be shared between public and private sectors, the NCA will also be granted more time to investigate financial transactions as an enhancement of the suspicious activity reports regime.

Proceeds of Crime

The new powers granted to law enforcement agencies, alongside a push for sharing of financial information, are aimed at reducing money laundering in the UK, as it will be made more difficult for those involved in criminal activity to hide their income and assets.

Our team of criminal defence forensic accountants assist criminal solicitors and barristers across the UK in cases involving fraud , money laundering , confiscation orders and proceeds of crime (in both the pre and post conviction process). We also undertake work at Legal Aid Agency rates.

To discuss a case, or for a quote, call our experienced team of forensic accountants on 0113 387 5670 or email enquiries@forthsonline.co.uk . Alternatively, fill out an Enquiry Form and we will contact you straight away.

Rise in Clinical Negligence

Wed, 05 Oct 2016 00:00:00 GMT

According to NHSLA data, a record £1.4bn was paid out last year as a result of clinical negligence.

Given the looming consultation on the government’s proposals to implement fixed costs in clinical negligence claims, the figures have drawn comments from both Claimant and Defendant sides.

The figure of £1.4m has risen steeply when compared to the £583m that was paid out in 2008. The NHSLA has blamed the rise on an increase in clinical negligence claims and legal costs.

Special Damages in Clinical Negligence Claims - Call 0113 387 5670 for a Quote

However, Claimant clinical negligence practitioners have argued that the cost of fighting such claims is increasing as a result of the NHSLA delaying the settlement of claims and ultimately trying to defend more cases than it settles.

Questions have also been raised in relation to why so many instances of medical negligence are happening in the first place, as this would reduce the number of claims and therefore associated legal costs.

The Association of Personal Injury Lawyers (APIL) has been talking with the government about ways in which it could save money. One of the key points has included the NHSLA accepting failures to help avoid legal costs being pushed up.

The Society of Clinical Negligence Lawyers (SCIL) also commented that generally, when the NHSLA has passed cases onto its panel legal firms, settlement became more achievable.

SCIL went on further to call for a full and proper review into all the factors that affect clinical negligence claims.

The NHSLA has said that it not only wants to reduce the number of claims by learning from what goes wrong and supporting the implementation of changes. It confirmed that it also wants to put a limit on legal costs in lower value cases.

Clinical Negligence Fixed Fees Consultation

The Department of Health consultation into the proposed fixed fees in clinical negligence cases could be released next month, it has been reported.

There is still a large amount of uncertainty as to how a new system will be implemented and the affects it will have on this area of the legal market.

Our team of forensic accountants assists clinical negligence practitioners across the UK in dealing with the quantum aspects of claims, such as loss of earnings , loss of pension and loss of dependency in catastrophic cases.

To discuss a case with us and to request a quote, call us on 0113 387 5670, email us at enquiries@forthsonline.co.uk or fill out an Enquiry Form and we will contact you straight away.

Self Employed Loss of Earnings

Tue, 27 Sep 2016 00:00:00 GMT

In claims involving self employed Claimants our experienced team of forensic accountants assist solicitors in the quantum elements around loss of earnings , loss of profits and loss of chance/opportunity. We also assist where there is a dependency element to consider in fatal accident cases.

Loss of Earnings - Self Employed

Common scenarios in which our forensic accountants are called upon to assist in calculating losses for self employed Claimants include:

new start / or growth businesses
trading through partnerships / limited companies
Claimants with a number of businesses, perhaps interrelated
where the accident has had an impact on a number of facets of the business, such as sales and cost structure
where there has been a change to their business / nature of operation, as a result of the accident

Forensic Accounting - 0113 387 5670

Given the complex nature of cases involving self employed Claimants there is often a large amount of information that needs to be gathered in order to support the quantum aspects of the claim.

Do bear in mind that we are more than happy to undertake the information discovery process on your behalf, and liaise with your client directly if required.

Our forensic accountants can assist through our Expert or Agency services, and we are flexible to your requirements.

To discuss a case involving a self employed Claimant, call us on 0113 387 5670, email us at enquiries@forthsonline.co.uk or fill out an Enquiry Form and we will contact you directly.

Accelerated Payment Notices Recover £3bn for HMRC

Tue, 06 Sep 2016 00:00:00 GMT

HMRC has recovered £3bn in unpaid tax as a result of issuing Accelerated Payment Notices to those it suspected of tax avoidance.

Accelerated Payment Notices (APNs) were first introduced in 2014, and have been considered controversial by many, including many MPs and tax professionals.

An APN is a demand from HMRC to repay in full the amount of tax it believes it is owed by an individual within 90 days of receiving the notice. Essentially an individual in receipt of an APN must make an upfront payment of the disputed amount of tax prior to entering into a two tier appeal process which are heard at a Tax Tribunal.

Accelerated Payment Notices (APNs)

Should an individual be successful in overturning the APN at the Upper Tax Tribunal, they will be entitled to a refund from HMRC. However, according to the new financial secretary to the Treasury, HMRC has been successful in 90% of appeals lodged against Accelerated Payment Notices in the last year.

Latest figures reveal that since August 2014, HMRC has issued 60,000 Accelerated Payment Notices to individuals suspected of tax avoidance. Predominantly, HMRC has targeted investors in tax avoidance schemes such as film investment schemes. However, there have been a number of successful challenges against the APNs brought by the advisers behind such schemes.

The new power adopted by HMRC appears to be proving successful when compared to figures released last year . From August 2014, when APNs began to be issued, to March 2015, HMRC had recovered £596m in unpaid tax.

Although controversial HMRC will continue to issue APNs to those it strongly suspects of having unpaid tax liabilities.

Forths Forensic Accountants - Tax Disclosures Services - call 0113 387 5670

If you have unpaid tax or undeclared income, whether through property, online trading or offshore bank accounts and assets, you should consider making a voluntary disclosure to HMRC in order to reduce your risk of higher penalties, and in certain extreme cases, criminal prosecution.

At Forths Forensic Accountants we have a specialist team of tax investigations and disclosures professionals who assist individuals in a wide range of issues relating to their tax position. We would advise anyone who may have undeclared tax liabilities to discuss their circumstances in complete confidence with a member of our team. If you are in receipt of an Accelerated Payment Notice, your window to reduce your tax penalties could have closed.

To discuss your tax position in complete confidence with Forths Forensic Accountants specialist tax professionals, call us on 0113 387 5670, email us at enquiries@forthsonline.co.uk or fill out an Enquiry Form and we will contact you directly.

Confiscation Order Law Under Scrutiny

Fri, 26 Aug 2016 00:00:00 GMT

The law surrounding the confiscation of criminal proceeds be reviewed after it has faced criticism from MPs.

It has been argued that the confiscation of assets law which is governed by the Proceeds of Crime Act 2002 is difficult to enforce, and following scrutiny, The Law Commission has recommended that it be reviewed.

Confiscation Orders

In July this year, the Home Affairs Committee reported that the confiscation law needed to be improved, as it had been the case that criminal prosecutors often focussed on the recovery of criminal assets once a conviction had been secured, rather than during the conviction process.

It was argued that this then made it difficult for the court to establish whether a Defendant had the means to pay a confiscation order imposed on them following a conviction.

The report also highlighted that as of September 2015, there was still an outstanding shortfall of £1.61bn as a result of confiscation orders handed down to criminals. Also, according to figures released by the National Audit Office, in 2012-13, 26p of every £100 of criminal proceeds was recovered.

Proceeds of Crime

MPs have recommended that there needs to be improvements, including the addition of specialist financial investigators to trace assets believed to be obtained through criminal activity.

Moves have already been made, as earlier this year it was announced that the City of London Police will work with private sector law firms to assist in the process of identifying criminal proceeds, and seizing assets through confiscation orders.

Forths Forensic Accountants has one of the largest specialist criminal litigation teams in the UK, assisting solicitors and barristers in criminal and fraud cases.

To discuss a criminal or fraud case that involves a proceeds of crime (POCA) of confiscation of assets element, call us on 0113 387 5670, or email enquiries@forthsonline.co.uk . Alternatively, fill out Contact Form and we will contact you directly.

Proposal to Erase Companies House Records

Wed, 17 Aug 2016 00:00:00 GMT

Proposals to remove details of dissolved companies on Companies House after just six years have been met with concern. Under the proposals millions of company records and information about company directors could be erased.

The current system means that records are held for 20 years. However, recently it was recently challenged by company directors who claim that keeping their information public is a breach of data protection law.

Forensic Accounting

Campaigners have raised concern over the proposals, and suggested that if the changes do come into effect, it will remove the accountability of company directors. Professionals have also expressed their concern as Companies House is often used as a valuable resource when investigating companies and those associated with them.

The move will have implications for practitioners of criminal and personal injury law, particularly if their client has been alleged to have some involvement in fraudulent activity or is self employed.

Our team of forensic accountants regularly uses Companies House in order to assist in the quantum aspects in a wide range of legal cases, particularly when assessing elements of financial loss to businesses or in criminal and fraud investigations.

Forensic Accounting Services

For personal injury and clinical negligence solicitors we provide advice and assistance to calculate loss of earnings , pension loss and loss of dependency .

For criminal and fraud solicitors we can assist in cases involving proceeds of crime elements, money laundering and confiscation and restraint orders .

To discuss a case with our experienced team of forensic accountants, or to obtain a quote, call us on 0113 387 5670, email us at enquiries@forthsonline.co.uk or fill out an Enquiry Form and we’ll contact you directly.

Fraud in Personal Injury Cases - Hayward v Zurich

Mon, 01 Aug 2016 00:00:00 GMT

A Supreme Court ruling means that settlements in personal injury cases could be challenged if there is evidence to suggest that a Claimant has been fraudulent.

The ruling relates to a settlement awarded in Hayward v Zurich in which evidence emerged at a later date to suggest that the Claimant had been dishonest as to the level of his injuries.

Loss of Earnings Claim

In 2000 the Claimant brought a claim against his employer following an injury sustained at work in 1998. The Claimant sought to claim £420,000 in damages, which did account for damages for pain and suffering following the accident.

In 2003 the case settled before trial and the Claimant was awarded £135,000. The Defendant had admitted liability but considered the Claimant had exaggerated his position following a review of video surveillance.

However, in 2005, Zurich were contacted by the Claimant’s neighbours on the basis that they believed he had been dishonest about the extent of his injuries and recovery period. In light of the new evidence, Zurich pursued a claim against Hayward.

Initially, Zurich was successful in its claim against Hayward and in 2013 his settlement was reduced to £14,720, but, in August last year, the Court of Appeal ruled against this decision and restored the original settlement of £135,000.

Most recently, however, five Supreme Court judges have overturned the Court of Appeal’s decision citing that the Claimant had a ‘dishonest purpose’ in misrepresenting his claim, therefore reverting the settlement to £14,720.

Forensic Accounting - Call us on 0113 387 5670

For Claimant practitioners, the ruling highlights the importance of assessing damages accurately and allowing for proper quantification before presenting the claim.

Our team of forensic accountants are on hand to assist in building the quantum aspects of all types of personal injury, clinical negligence and industrial disease claims, specifically around loss of earnings , loss of pension and dependency elements.

We are always happy to have an initial chat through a case in order to establish the level of input that might be required to accurately assess the quantum aspects of the claim.

To discuss a potential case on a no obligation basis, call us on 0113 387 5670, email us at enquiries@forthsonline.co.uk or fill out an Enquiry Form and we'll contact you directly.

MoJ Claims Management Report 2015-16

Tue, 26 Jul 2016 00:00:00 GMT

A Ministry of Justice (MoJ) report into the claims management market has revealed some interesting statistics.

According to the report, the turnover of claims management companies (CMCs) operating within the personal injury claims market has fallen by 30% in the 2015/16 financial year. Turnover accounted for by personal injury CMCs fell from £310m to £215m.

Claims Management Regulation Report

The introduction of the ban on referral fees in 2013 resulted in a reduced number of personal injury CMCs. The report reveals that the number of PI CMCs now stands at 868 when compared to 2,316 in early 2013.

With ongoing challenges there remains a lot of uncertainty across the personal injury market. However, the report accredits the work that smaller CMCs have done with their personal injury solicitor clients in order to comply with the referral fee ban.

Following the reforms the volume noise induced hearing loss (NHIL) claims market saw an initial sharp rise. However, after targeting CMCs who were non compliant in their marketing efforts in this area, the number has declined.

Personal Injury Claims

Within the report, the MoJ claims that it will continue to target the CMCs that it believes are operating illegally, and that increased interventions will form part of this strategy.

The personal injury claims market continues to face challenges as a result of the reforms proposed by the government. However, the report states that the CMC market has begun to see some consolidation over a two year period.

Our team of forensic accountants assist in all types of personal injury and clinical negligence cases around the quantum elements of claims. To find out more about our services for personal injury and clinical negligence practitioners click here .

Alternatively, to discuss a potential case on a no obligation basis, call us on 0113 387 5670 or fill out an Enquiry Form and we’ll contact you directly.

Personal Injury Lawyers call for Insurance Fraud Review

Wed, 08 Jun 2016 00:00:00 GMT

Personal injury solicitors have called for independent research into insurance fraud in the UK.

The call comes off the back of the Ministry of Justice’s (MoJ) message that it is solicitors who need to act in order to curb insurance fraud.

The cost of insurance fraud in the UK is estimated at in excess of £3bn each year, which in turn costs each policyholder up to £50. Figures were obtained by the Insurance Fraud Taskforce, a body set up by the MoJ and HM Treasury.

Insurance Fraud

Those figures were recently challenged by the Association of Personal Injury Lawyers (APIL), which also cited that figures obtained from the Association of British Insurers stating that the level of cost associated to insurance fraud was not in line with those quoted by the insurance companies.

APIL has therefore called for an independent review in order to set realistic aims. Lord Faulks, the justice minister, has confirmed that the government will publish its own action plan based on the recommendations made by the Insurance Fraud Taskforce.

Lord O’Neill also confirmed the government’s plans to provide an update on the progress of the recommendations, and added that the Taskforce’s findings reflect and support the programme of proposed reforms for low value personal injury claims.

Personal Injury Reforms

As things stand there is clearly some disagreement with the findings of the Insurance Fraud Taskforce, with Claimant practitioners suggesting they do not give a true representation of the level of insurance fraud.

The Law Society has also called for a collaborative approach from both Claimant and Defendant practitioners in order to establish the level of the insurance fraud problem together, so that accurate measurements and targets are set.

It will be interesting to see how this the debate on insurance fraud develops.

Our team of forensic accountants assist in thousands of personal injury cases annually, assisting practitioners in the loss of earnings , loss of pension and loss of dependency elements.

For more information about our services or to discuss a case with us for an initial quote, call us on 0113 387 5670 or fill out an Enquiry Form and we’ll contact you straight away.

Criminal Finances Bill

Fri, 27 May 2016 00:00:00 GMT

Within the Queen’s Speech in May, a new Criminal Finances Bill was proposed.

The aim of the proposed legislation is to assist in tackling money laundering and tax evasion . Specifically, the legislation will reform the law around proceeds of crime to assist the Government in seizing funds and assets procured through criminal proceeds.

Key elements of the Criminal Finances Bill

Corporations could be made accountable if members of their staff have been found to be complicit in facilitating tax evasion.
Improving the Suspicious Activity Reports (SARs) processes to assist the National Crime Agency (NCA) in progressing reports of suspicious financial activity reported by institutions.
To make it easier for law enforcement and courts to seize criminal proceeds.

The aim of the Government is to continue to clampdown on money laundering and tax evasion in the UK. It is estimated that £224m in criminal proceeds was recovered in 2015-16.

To do this the Bill is also intended to improve the coordination between private and public sectors in collectively tackling financial crime. A recent survey found that fraud in the UK costs £193bn per year.

Forensic Accountants - 0113 387 5670

In terms of how organisations who fail to prevent staff in facilitating tax evasion, the level of penalties remain to be seen. However, under the Bribery Act, organisations can face an unlimited penalty should they be in breach of the legislation. Could a similar maximum penalty be imposed under the Criminal Finances Bill legislation.

For those who are engaged in criminal activity, particularly in relation to money laundering and tax evasion, the new Bill essentially gives the Government more power to seize what it believes has been accrued with proceeds of crime.

If you or a client have been suspected of money laundering or tax evasion you can talk to us in confidence.

Forths are one of the largest specialist forensic accountancy firms in the UK, acting for clients nationwide.

To discuss your circumstances or a particular money laundering or tax evasion case, call us on 0113 387 5670 or fill out an Enquiry Form and we’ll get back to you straight away.

Money Laundering and Tax Evasion Consultations

Tue, 26 Apr 2016 00:00:00 GMT

A consultation is to take place into new Government proposals that would assist in the clampdown of money laundering and tax evasion in the UK.

In light of the recent Panama Papers Scandal, the Government proposal consultation document suggested that offshore companies were using UK property, particularly high value property in London, as vehicles to assist in the money laundering and tax evasion process.

Tax Evasion in the UK

As present it is not illegal for offshore companies to own property in the UK, however, the method of doing so allows the real owners / beneficiaries to remain anonymous.

The new proposals would require the beneficiaries of offshore companies to be named on a public register, with only the named companies on the register able to buy and sell UK property; although, it remains to be seen as to whether this rule would apply retrospectively to offshore companies that currently own property in the UK.

Current statistics suggest that:

There are over 100,000 offshore companies that own property in the UK.
The value of the property owned by these companies is approximately £170bn.
There are around 36,000 offshore companies that own high value property in London.

The consultation on the new proposals coincides with new rules that will be introduced from June requiring all UK incorporated companies to list their beneficial owners on a public register.

Money Laundering - Unexplained Wealth Orders

The Home Office has also set out proposals for a consultation into Unexplained Wealth Orders which could assist in the seizure of cash and assets from individuals suspected of money laundering if they cannot prove how the money was earned.

Money laundering and tax evasion are both serious offences. We have a specialist team of forensic accountants to assist in such cases.

To speak to a member of our experienced forensic accounting team call us on 0113 387 5670 or fill out an Enquiry Form and we’ll contact you straight away.

Panama Leaks Scandal – Tax Evasion and Money Laundering on a Global Scale

Fri, 08 Apr 2016 00:00:00 GMT

In light of the recent Panama Leaks scandal, our team of forensic accountants and tax investigations professionals have been examining the findings, which could implicate many individuals, including state leaders and their families and associates of tax evasion and in extreme cases, money laundering .

The Panama Leaks scandal came about following leaked documents from Panamanian based law firm Mossack Fonseca which helps set up and administer companies in offshore jurisdictions and tax havens.

What are the Panama Leaks?

Largest ever document leak of 11.5 million documents, equivalent to 2,600 GB in size.
Includes details of 214,000 entities (e.g. ‘shell’ companies / trusts / foundations) that had been set up by Mossack Fonseca to assist their clients in tax evasion and avoidance.
The findings date back as far as 1977 and run to December 2015.
143 politicians, including 12 heads of state, their families and associates have been linked to the scandal.
More than 500 financial institutions have registered around 15,000 companies with Mossack Fonseca to help their clients avoid paying tax.

It is not clear how the documents were obtained, or how they were leaked, but once German newspaper Sueddeutsche Zeitung shared the information with the International Consortium of Investigative Journalists (ICIJ), 107 media organisations across 76 countries analysed the information over a year long period.

The findings of the investigation expose how the wealthy and powerful have used tax havens to help hide money and avoid paying tax.

Tax Evasion

In Germany, authorities have already begun to raid homes and business premises in order to gather evidence in cases they suspect that tax has been evaded illegally.

The scandal is set to rumble on over the coming weeks. Here in the UK, it has raised a large amount of public concern, particularly since one newspaper reported that the investment fund headed by PM David Cameron’s late father Ian, had not paid a single penny in tax on the profits it had made from its operation based in the Bahamas, and was originally incorporated in Panama in the 1980s.

These developments highlight the serious point that for individuals who have deliberately or innocently invested money offshore in order to evade tax, or launder money in more serious cases, will no doubt at some point in the future, fall onto HMRC’s radar and face potentially severe penalties and even a risk of criminal prosecution.

If you have assets or money offshore, or even if you believe you have underpaid tax here in the UK, you should speak to a tax investigations professional prior to contacting HMRC.

To discuss your circumstances in complete confidence with our tax specialists you can call us on 0113 387 5670 or fill out an Enquiry Form and we will contact you straight away.

HMRC Targets Alcohol Wholesalers Over Unpaid Tax

Mon, 14 Mar 2016 00:00:00 GMT

Alcohol wholesalers are being targeted by HMRC as it continues to clampdown on tax evasion in the UK. The Revenue estimates that £1.2bn in alcohol taxes are unpaid each year.

Alcohol wholesalers have until 31st March 2016 to register for HMRC’s Alcohol Wholesale Registration Scheme. Registration must be made online and following this, wholesalers will have to face a fit and proper persons test.

The wholesalers will also have to demonstrate that it keeps proper business records and that it does not conduct transactions with fraudsters.

HMRC’s Alcohol Wholesale Registration Scheme

HMRC believes that the approved list of wholesalers will help reduce the amount of unpaid taxes from alcohol trading, and will also assist legitimate traders by clamping down on competitors trading illegally.

As of 2017, purchasers will only be able to purchase alcohol from the approved wholesalers, a list of which will be published online.

The latest move by HMRC follows a trend of targeting certain industries in its efforts to clampdown on tax evasion in the UK. Previous sectors falling under the spotlight have included hairdressers, plumbers and even solicitors

Voluntary Disclosure of Unpaid Tax

Our team of experienced tax investigations professionals are regularly called upon by individuals, professionals and businesses to assist in dealing with HMRC, whether it be during a tax investigation or in making a voluntary disclosure of unpaid tax.

With more powers at it’s disposal, new tactics, a larger greater budget and resources, HMRC is becoming increasingly ruthless in targeting those who have unpaid tax liabilities.

Many may already be within HMRC’s sights, and we would urge those who believe that they may have underpaid tax, whether deliberately, or innocently as an oversight, to talk to our team of tax experts in the first instance in order to establish your position.

Forths Forensic Accountants have considerable experience in advising clients through tax investigations by HMRC and in making voluntary disclosures of unpaid tax.

To discuss your circumstances in complete confidence, you can call us on 0113 387 5670 or fill out an Enquiry Form and we will contact you straight away.

Fatal Accident Claims - Calculating the Multiplier

Thu, 25 Feb 2016 00:00:00 GMT

Judgments made by the House of Lords in relation to damages multipliers in two historic fatal accident cases have been overturned by the Supreme Court.

The ruling essentially means that the multiplier in assessing future damages in fatal accident cases should be taken from the date of the trial, rather than the date of death. This outcome had also been recommended in a Law Commission report entitled ‘Claims for Wrongful Death’.

In the cases of Cookson v Knowles [1979] and Graham v Dodds [1983] the House of Lords ruled that the multiplier had to be calculated from the date of death.

However, in Knauer v MoJ [2016], Mrs Knauer’s husband made a dependency claim under the Fatal Accidents Act 1976 following her death as a result of mesothelioma aged 46. The damages hearing had originally taken place in July 2014 following an admission of liability by the MoJ in December 2013.

To discuss a Dependency Claim call us on 0113 387 5670

At the damages hearing the judge explained that he was ‘bound’ to take the decision applied by the House of Lords, but explained he would have preferred to take the route as recommended in the Law Commission report.

In this case, if the date of death was used as the point from which future losses were calculated, the Claimant would have been under compensated by around £58,000. On this basis, the judge granted a certificate for the case to be appealed directly in the Supreme Court.

At the appeal hearing, the House of Lords decisions were described as ‘illogical’ in the current legal climate. It was also cited that the current system, based on date of death, led to ‘under-compensation in most cases’.

Fatal Accident Compensation

In upholding the appeal brought by Mr Knauer, the Supreme Court judges said the House of Lords approach was ‘unscientific’. They also noted, in particular, that the Ogden Tables did not exist at the times of the cases of Cookson v Knowles [1979] and Graham v Dodds [1983].

This decision will act as game changer for solicitors dealing with dependency claims in fatal accident cases. Our team of forensic accountants have considerable experience in advising in dependency claims, and in particular, ensuring that such claims are not undersettled.

What remains to be seen, however, is whether the decision will lead to appeals from dependents in previous cases where the House of Lords approach had been applied.

If you are dealing with a dependency claim and would like to discuss the quantum elements with our team of forensic accountants, call us on 0113 387 5670 or email us at enquiries@forthsonline.co.uk .

Alternatively you can fill out an Enquiry Form and we will contact you straight away.

Extended Fixed Costs Proposals

Tue, 09 Feb 2016 00:00:00 GMT

Lord Justice Jackson, the author of LASPO (Legal Aid, Sentencing and Punishment of Offenders Act 2012) has recommended that the fixed recoverable cost regime be extended for all civil claims up to £250,000 in value.

Jackson believes that the current fixed costs model, which is applied to personal injury claims valued up to £25,000, is expensive. His recommendation is now that the fixed recoverable costs model should also extend across the lower end of Multi Track cases valued up to £250,000, in addition to Fast Track cases. However, Jackson did urge the government to stall their plans for fixed fees in clinical negligence cases in order to reduce the possibility of different types of fee scales for different cases.

Fixed Recoverable Costs

In his recent speech, Jackson went as far as to outline a proposed grid of fees based on 10 stages of the case which would aim to eliminate the need for costs budgeting.

Band	Case Value	Solicitor fees
Band 1	£25,000 - £50,000	£18,750
Band 2	£50,001 - £100,000	£30,000
Band 3	£100,001 - £175,000	£47,500
Band 4	£175,001 - £250,000	£70,250

( The fees do not take into consideration disbursements and VAT ).

Jackson argued that there was now a greater willingness amongst the profession to accept fixed fees but stopped short of saying that fixed costs should be applied to cases valued more than £250,000 as this would be too big a change to accept.

Despite the government confirming this week that in principle it remained supportive of extending fixed recoverable costs, it said it would look carefully at the proposals. Jackson did urge that if the proposals were taken as a priority then the changes could be accomplished this year, providing there was government support and/or a proper consultation process takes place.

Fixed Fees in Claims

The proposals have been met with criticism, particularly in relation to how the blanket system would work in highly complex cases, and also whether there will be an impact on access to justice.

With the announcement of the proposals still quite fresh, the topic will no doubt be met with mixed comments from both Claimant and Defendant practitioners.

Over recent years we have developed our services in order to meet the changing needs of the wider personal injury sector. Our team of forensic accountants prepares robust forensic accountancy work on an Agency or Expert basis in order to assist practitioners on both sides of the fence.

If you have a particular case that you would like to discuss, for example, in relation to self employed loss of earnings or loss of pension , call us on 0113 387 5670 or fill out an Enquiry Form and we’ll be in touch.

Law Society - Future of Legal Services Report 2016

Thu, 28 Jan 2016 00:00:00 GMT

The Law Society has outlined its vision of how the legal market will look in the year 2020 in a recently published report.

‘The future of legal services’ report was produced by three Law Society committees and from a literature review. Essentially, it predicts how the landscape of the legal market may change in the next five years.

In summary, the report suggests that:

The gulf between successful and struggling law firms will widen even further;
More small and medium size firms will struggle to close given the ageing solicitor demographic;
There will be more flexible working for fee earners;
Firms will employ fewer solicitors as technology advances;
More B2B solicitors as B2C numbers decline given a reduction in clients who are able to afford advice or gain access to legal aid;
Large accountancy firms will pose a threat, as will technology companies;
More solicitors will look to go in-house.

Changes in the legal sector have been commonplace over the recent years, with yet more reforms looming on the horizon as the government continues to consult on the industry, particularly in relation to regulation. With further changes in the market and a shifting landscape around regulation it could be said that this will increase and widen competition.

The report also outlined what it sees as the main drivers of change:

Global and national economic environments;
How legal services are bought;
Technology and innovation;
New market entrants increasing competition;
Political agendas including funding, regulation and access to justice.

Individuals Urged to Declare Offshore Assets to HMRC

Wed, 20 Jan 2016 00:00:00 GMT

HMRC continues to urge individuals who hold assets offshore, including property and bank accounts, to come forward in order to make a voluntary disclosure of unpaid tax.

If the assets held offshore have not been declared to HMRC, whether this is deliberate in order to evade paying tax (tax evasion) or purely as an innocent oversight (tax avoidance), then an individual could face a full tax investigation by HMRC. In extreme cases this can mean penalties of up to 200% of the tax owed and a risk of criminal prosecution.

Closure of the LDF

Until 1st January 2016 there was a favourable disclosure facility available to individuals with financial interests outside of the UK. The Liechtenstein Disclosure Facility (LDF) offered individuals immunity from criminal prosecution if they came forward to make a disclosure of unpaid tax. Similar terms were also available through the Isle of Man / Guernsey and Jersey Disclosure Facilities.

At this point, individuals cannot be guaranteed immunity from criminal prosecution over potential tax evasion. However, HMRC is encouraging those who believe they may have unpaid tax liabilities to make a voluntary disclosure in order to limit the potential penalties. We would always advised anyone looking to clarify their tax position to speak to us in confidence in the first instance in order to establish their circumstances and options available to them. We also assist other professionals in order to support their clients.

Declare Offshore Assets - call 0113 387 5670 in confidence

For those with property overseas, the Let Property Campaign offers individuals the opportunity to bring their tax affairs up to date with regards undeclared income, for example, through rental of the property. Individuals with offshore bank accounts are best discussing their circumstances in order to establish the best possible route given their situation.

We have a team of experienced tax investigations and disclosures professionals who assist individuals and clients of other professionals in dealing with HMRC and in making voluntary disclosures of unpaid tax.

To discuss your or your clients circumstances in complete confidence, you can call us on 0113 387 5670 or alternatively, fill out an Enquiry Form and we will contact you straight away.

The Danger of Undersettlement

Tue, 12 Jan 2016 00:00:00 GMT

Without doubt the reforms to the Personal Injury market, brought about by the enactment of LASPO, and the horizontal / vertical extension of the portal (and corresponding extension of the fixed recoverable costs regime) have brought about wide reaching changes and challenges for firms who continue to operate in the Personal Injury arena.

In an area that has historically become accustomed to streamlining, practitioners have had to streamline even further by implementing process changes that will enable them to survive in the post LASPO environment.

The danger, however, is that there is always a tipping point where ultra-efficiency ceases and professional indemnity issues arise and it is vital that practitioners stay on the right side of this.

Undersettlement of Claims

At Forths Forensic Accountants, we have evidence that the growth in the Personal Injury professional negligence market, , is actually occurring.

The nature of these cases has tended not to be around procedural issues (such as a failure to litigate or a failure to comply with Court directions leading to claims being struck out) rather the issues are ones of underassessment, i.e. the settlement of claims at amounts purportedly considerably less than they were worth.

In our experience these underassessment cases often have one of the following features:

A head of claim has been missed in its entirety.
A case has been settled as a low value / fast track matter, without recognition of the actual magnitude of the case.

Claims arising out of Professional Negligence

Given the increasing prevalence of these type of “second bite of the cherry” legal actions it is important, in the increasingly automated Personal Injury claims environment, that firms manage to get the right level of skillset into risk areas, such as loss of earnings and loss of pension, in order to both comply with their professional duties to their clients and avoid future professional indemnity issues.

Such issues, of course, have significant ramifications for firms, in terms of potential increases to professional indemnity premiums, and the time costs associated with defending such potential actions.

Forths Forensic Accountants have listened to our Personal Injury client’s requirements and developed, in conjunction with them, innovative services that they can utilise in order to provide comfort in such areas.

In addition to the more obvious / more traditional Expert instructions, on larger multi-track / catastrophic cases, our team of forensic accountants provides our clients with a range of Agency / White Label services and an Expert portal product, which allows them to utilise our skillset in a much larger range of cases, in a cost effective manner.

To discuss your case in more detail with our team of experienced forensic accountants and to hear how we can assist in you in quantifying the damages for your client, call us on 0113 387 5670 or fill out an Enquiry Form and we will contact you straight away.

Calculating Loss of Income and Investments in Brain Injury Cases

Wed, 06 Jan 2016 00:00:00 GMT

In brain injury cases, calculating loss of potential future income is particularly challenging. When issues about impaired judgement and altered behaviour of the victim arise, it can be complicated to be precise about the impact this could have on a business.

Our forensic accountants are regularly instructed in brain injury cases to consider the financial evidence in order to assist solicitors in the development and preparation of the case. The earlier that you instruct our expert forensic accountant the more clear the picture we can prepare in relation to the projected financial loss the victim will encounter as a result of the accident.

Loss of Income – Brain Injury Case Study

We were instructed by a solicitor who was acting on behalf of a man who had suffered a severe brain injury whilst crossing the road.

The claimant was the owner of a large size lighting retailer / wholesaler business which had a number of overseas supply chain agreements. His business had a number of significant contracts with national retailers.

By examining the post-accident period it became clear that there was downturn in trade within the business. However, there were complications in proving this due to the fact that the claimant had difficulty in recalling the financial timeline. The claimant was also unwilling to accept that personality changes and a decline in cognitive abilities had lead to a loss of contracts with retailers.

Assisting Solicitors in Quantum Elements of Claims

To assist the solicitor we prepared an in-depth report by compiling all relevant financial information to build a picture of the loss to the business, and in relation to the impact on the claimant’s earnings capacity, as a result of the accident. It was also important to recognise the impact of the reduction in cognitive ability in relation to the claimant’s personal earnings.

The case settled with a satisfactory outcome to the client. We were able to assist the solicitor in building a clearer and realistic picture of the financial loss, which in turn lead to a smoother settlement and therefore a swifter costs resolution.

We undertake a considerable amount of brain injury claims each year, and our team of forensic accountants has built a wide range of experience in this area.

For advice and assistance in calculating the quantum elements of loss in such cases you can call us on 0113 387 5670 or fill out an Enquiry Form and we will contact you straight away.

HMRC Convictions for Tax Fraud up 58%

Wed, 23 Dec 2015 00:00:00 GMT

Figures released recently show that the number of convictions for tax evasion and tax fraud achieved by HMRC last year were up 58%.

The figures show that prosecutions increased from 795 to 1,258 over the period to 2015, and that HMRC had exceeded its target number of convictions for the year which was set at 1,165.

During the period it has also been confirmed that there was an additional £26bn in unpaid tax recovered and over 400 years in custodial sentences handed out to the most serious offenders of tax evasion and fraud.

Despite the results HMRC has still been criticised for the low number of criminal prosecutions reached for offshore tax evasion.

Tax Evasion

As a result of continued pressure, HMRC has announced new draft legislation which could lead to an increase in prosecutions along with tougher sanctions and penalties, particularly for the most serious offenders and those who assist in tax evasion and tax avoidance.

One of the proposals removes the need for HMRC to prove, in serious cases, an offender’s intent to not declare income and gains. However, this power may be restricted to cases where the amount of unpaid tax is £25,000 or more.

Voluntary Disclosure of Unpaid Tax - call our team on 0113 387 5670 to discuss your circumstances

HMRC is facing continued pressure from the government to clampdown on tax evasion and tax avoidance, and to reduce the overall tax deficit. The recent announcement of additional funding of £60m by 2021 to help increase criminal prosecutions will assist HMRC, as will new powers and legislation.

The threat to individuals who have offshore bank accounts, or undeclared income from investments such as rental property is constant, and with HMRC having increased resources and powers, it may only be a matter of time before you fall under the spotlight, and at which point it may be too late. In serious cases, individuals can face stiff financial penalties and even criminal prosecution.

Even with favourable disclosure facilities such as the Liechtenstein Disclosure Facility (LDF) closing at the end of 2015, you will still be able to make a voluntary disclosure of unpaid tax in order to clear up your affairs.

To discuss your circumstances with our experienced team of tax investigations professionals in complete confidence, you can call us on 0113 387 5670 or fill out an Enquiry Form and we will contact you straight away.

Forths Criminal Defence and Fraud Team Grows

Tue, 08 Dec 2015 00:00:00 GMT

Specialist forensic accountancy firm Forths welcomes the senior hire of Beverley Ibbotson in a move that strengthens the Criminal Defence and Fraud Team

Beverley re-joins Forths from BDO in Leeds where she was a Director of Forensic Services.

Forensic Accounting - Criminal Defence

Forths Forensic Accountants is one of the largest specialist forensic accountancy practices in the UK serving solicitors, insurance companies, businesses and individuals. Established in 2002, the firm now consists of over 35 fee earning staff across all divisions operating from offices in Leeds and Manchester.

The hire means that Forths now boasts one of the UK’s largest and fastest growing departments in this field of expertise. The current team of 9 full time fee earners undertakes a wide range of work with particular expertise in proceeds of crime, fraud investigations, money laundering, trading standards and other regulatory breaches, fraudulent trading, benefit fraud, MTIC fraud, HMRC related offences of non or under declaration and advance fee fraud (boiler room).

Managing Director, Richard Forth, commented:

“Having seen a lot of growth in this area we are delighted to welcome Bev back to Forths. With over 20 years of specialising in forensic accountancy she brings a wide range of expertise and experience, and will bring a positive ongoing contribution to service our growing client base in this area.”

Smith -v- Manchester [1974] Award Applied Following Appeal

Sat, 31 Oct 2015 00:00:00 GMT

In a recent case the Court of Appeal ruled that it was appropriate to apply the Smith -v- Manchester [1974] award to quantify the Claimant’s future loss of earnings.

In Billet -v- MOD , the application of the Ogden Tables was used at the initial trial. However, upon appeal brought by the Defendant, the Judge ruled that the strict application of the tables was not suitable as the extent of the Claimant’s injuries were not considered to significantly affect his future loss of earnings in the open labour market.

The question centred on the classification of the Claimant’s level of disability following the accident. In this case, the Claimant had suffered a non-freezing cold injury whilst serving in the Army. The extent of his injury meant that he suffered pain in his feet in cold weather.

On hearing the appeal, Lord Justice Jackson considered that the Claimant had suffered “virtually no hindrance from his disability” therefore, that he should not be at a great disadvantage in the open labour market. In this instance, the Claimant had been a lorry driver in the Army for a number of years and it was agreed that he could still undertake this employment under conditions agreed at the appeal.

Lord Justice Jackson felt that the Claimant’s ‘outer fringe’ of disability was not accurately reflected by the reduction factors in the Ogden Tables. Therefore, in assessing his future loss of earnings, whilst avoiding over or under-settlement, Jackson considered it appropriate to refer to the Smith -v- Manchester [1974] awards rather than attempting to significantly alter the Ogden Tables.

In reducing the Claimant’s award for future loss of earnings from £99,000 to £45,000, the Court said that the broad brush approach of Smith -v- Manchester [1974] would have been no more scientific than significantly adjusting the Ogden Tables to reflect the Claimant’s level of disability.

There have been recent examples of cases involving lower level disability where the Courts have been uncertain in applying the Ogden Tables for fear of over or under-settlement.

Our team of Forensic Accountants can assist in quantifying a figure representative of the Claimant’s substantiable level of loss in all types of personal injury and clinical negligence claims. The ready acceptance of our conclusions on both sides of the fence reduces the escalation of legal costs and expedites settlement.