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New CPR Rule Limiting Expert’s Reports In Civil Litigation – A Forensic Accountant’s Perspective On Navigating The Changes

Change is afoot in the litigation world, I am sure you are well aware of the fixed recoverable cost changes(!) – but did you know about the recent amendment to CPR Rule 28.14 (3)(c)? Effective October 1, 2023, this rule now imposes a 20-page limit on expert reports in Intermediate Track claims, ranging from ÂŁ25,000 to ÂŁ100,000 in value. As an experienced forensic accountant with a specific focus on loss quantum, I find myself contemplating: will this recent Read more…

By Richard Formby, ago

Navigating Complex Personal Injury Claims with Care: A Heartwarming Testimonial of Personalised Loss Quantum Support

In the world of forensic accounting and expert witness services, we believe it’s not just about numbers and reports. It’s about understanding the human side of the equation, especially cases involving personal injury and loss quantum. At Formby Forensics, our commitment to a personalised and empathetic approach was recently recognised with some heartwarming feedback from an injured party. A Touching Testimonial In a recent email exchange, we received a heartfelt message from an injured party who had experienced Read more…

By Richard Formby, ago

The Advantages of Engaging a Forensic Expert Witness who holds credentials as an ICAEW Chartered Accountant and Member of the Academy of Experts

I sometimes take it for granted, but first and foremost we are Chartered Accountants – that is what underlies our Expert Witness work on Loss Quantum and related financial matters surrounding disputes and litigation. So, whilst Formby Forensics provides forensic accountancy advice and opinion reports – that work is backed up with over 30 years of specialist forensic and accountancy experience. Our professional accountancy, taxation and financial advice work is underpinned by our membership of the Institute of Read more…

By Richard Formby, ago

Second Opinions: A Fresh Pair Of Eyes Can Help Get The Right Level Of Loss Quantum In Personal Injury Claims

At Formby Forensics, our expertise in personal injury cases often leads to clients seeking our valuable second opinions on Earnings Loss Quantum.  In these instances we conduct a thorough initial review of the evidence and provide timely preliminary advice, which can be followed up with a comprehensive CPR Part 35 report, if necessary. We provide valuable assistance in cases where a claim can greatly benefit from solid expert evidence, grounded in a realistic understanding of Loss Quantum. Our Read more…

By Richard Formby, ago

Personal Injury Loss Quantum: Pensions – Huge Value, Lots Of Issues, Not To Be Taken Lightly!

As Forensic Accountants we deal a lot with Pension Loss quantum calculations for Personal Injury and Fatal Accident Dependency claims. The Pension Loss topic typically lends itself well to White Label schedule drafting – and so the Court’s permission to use a forensic accountant, as your agent, to prepare the calculations is not required. So, if you are not dealing with the detail of such claims on a regular basis, or do not like ‘number work’ or ‘scheme Read more…

By Richard Formby, ago

Quantifying Losses: Examining Spousal Involvement in Personal Injury Claims with Limited Companies

Claimants with limited companies I have already noted the recent change to the taxation of company profits but there are other personal injury loss quantum issues with companies to be aware of. Earnings losses for claimants that trade through their own limited company, will typically be focused on the lost profits of the company (income adjusted for costs), that are attributed to the accident, reduced by taxes (based on how the profits would have been drawn from the Read more…

By Richard Formby, ago

Stay Ahead: Understanding Tax, Pensions, and Inflation Changes in Personal Injury Claims

Tax changes This year has so far been relatively straight forward on the tax side of things. Some allowances frozen (until 2028), Capital Gains Tax allowance being reduced over time, interesting tweaks to pension allowances and a change to corporation tax, but otherwise – last year (2022) was the year of multiple ‘political’ Budgets. Pension Contributions The Standard annual pension contribution allowance increased from ÂŁ40,000 to ÂŁ60,000 and the lifetime allowance charge was removed, from 6 April 2023. Read more…

By Richard Formby, ago

Personal Injury Discount Rate – Time of Change?

Of interest to those involved in dealing with Personal Injury claims There has just opened a Ministry of Justice consultation on the Personal Injury Discount Rate (PIDR), applicable to future losses/costs. At issue is whether there should be Dual-PIDRs, with different rates applied to different elements of future losses/costs.  Full details of the consultation can be found here. Many will be familiar with the PIDRs over the past 20 years of: 2001 – +2.5%, 2017 -0.75% and 2019 -0.25%. Read more…

By Richard Formby, ago

“Making Tax Digital” – what is it and what is the implication for gathering evidence for Personal Injury claims

From Manuscript Ledgers to Digital Records When I started out, as a trainee-chartered accountant, I had my trusted Casio Calculator – we didn’t have computers and neither did the clients. Computers were a rarity and business records were recorded by hand. Back in the day, one came across the most amazing manuscript ledgers and cashbooks (for small traders to large businesses to national institutions) – as well as some awful ones too. As time went by, I soon Read more…

By Richard Formby, ago

PI Loss Quantum – Parry v Cleaver- a ‘twist’ to watch out for!

With a Personal Injury Earnings Loss claim where the claimant has an Ill-health Pension and is also able to continue working (and so has Actual Earnings) then be very careful how those Actual Earnings are calculated – there may be a significant  impact on lost earnings. When a claimant has an Ill-Health Pension, we know from Parry v Cleaver (1970) AC1 that this pension income is not to be deducted from their But For income prior to their Read more…

By Richard Formby, ago