Terms & Conditions

Terms of Business and Terms of Engagement

 

 

Terms of Business

 

The following standard terms of business apply to all engagements accepted by Accolade Accountancy. All work carried out is subject to these terms except where changes are expressly agreed in writing.

 

 

1. Introduction

1.1 These terms and conditions set out the terms under which we undertake our business.

 

 

2. Ethical Guidelines

2.1 We are bound by the ethical guidelines of the Association of Chartered Certified Accountants, and accept instructions to act for you on the basis that we will act in accordance with those ethical guidelines. A copy of these guidelines can be viewed at our offices, on request or can be seen at www.accaglobal.com. We will not be liable for any loss, damage or cost arising from our compliance with statutory or regulatory obligations.

 

 

3. Fees

3.1 Fees in respect of our routine services are based on monthly fixed charges which will be agreed with you before we commence our work. If we agree any other terms these will be agreed with you before we commence our work.

3.2 Our monthly paid fixed fees are payable one month in advance and must be paid before we commence our work.

3.3 Our monthly paid fixed fees are treated as standalone services in the month.

3.3 Our fixed charges are dependent upon you supplying us with all information requested promptly and on first request.

3.4 Non routine work and other charges not included in our fixed fees for example advice on buying or selling a business, raising finance, preparing business plans, tax planning and tax Enquiries are charged at our hourly rates. The rates chargeable will be agreed with you in writing before any work is undertaken.

3.6 It is our intention to give you where possible an estimate of the fees for work not covered by our fixed fee charges. If we provide you with an estimate of our fees for any specific work, then the estimate will not be contractually binding unless we explicitly state that that will be the case.

3.7 All monthly fees must be paid on the 1st  of each month by standing order. All other invoices raised are due for payment on receipt.

3.8 Queries on any invoices must be raised on receipt.

3.9 If a standing order is unpaid, or missed, we will make an administration charge of £5.00 per missed payment.

3.10 In the event of our credit terms being breached we may levy credit charges and interest. We also reserve the right to suspend our services or to cease to act for you on giving written notice if payment of any fees is unduly delayed. We intend to exercise these rights only where it is fair and reasonable to do so.

3.12 No discount or refund is given for contracted services not used.

3.13 In some cases, you may be entitled to assistance with your professional fees, particularly in relation to any investigation into your Tax Affairs by HM Revenue & Customs. Assistance may be provided through insurance policies you hold or via membership of a professional or trade body. You will remain liable for our fees regardless of whether all or part are liable to be paid by your insurers.

3.15 Unless otherwise agreed to the contrary our fees do not include the costs of any third party, counsel or other professional fees.

3.16 If a client company, trust or other entity is unable or unwilling to settle our fees we reserve the right to seek payment from the individual giving us instructions on behalf of the client and you agree that we shall be entitled to enforce any sums due against the individual nominated to act for you.

3.17 In the case of a dispute over the level of fees charged we reserve the right to require that the matter is dealt with through arbitration. We recommend that arbitration is undertaken by the fee arbitration service provided by AAT for members. The fee arbitrator will be appointed by the AAT president; the fee will be as negotiated with the AAT arbitrator.

 

 

 

4. Client monies

4.1 Fees paid by you in advance for professional work to be performed shall not be regarded as clients' monies.

 

 

5. Internal disputes

5.1 If we become aware of a dispute between the parties who own or are in some way involved in the ownership and management of the business, it should be noted that our client is the business and we would not provide information or services to one party without the express knowledge and permission of all parties. Unless otherwise agreed by all parties we will continue to supply information for the attention of the directors. If conflicting advice, information or instructions are received from different directors in the business we will refer the matter back to the board of directors and take no further action until the board has agreed the action to be taken.

 

 

6. Investment services

6.1 Investment business is regulated under the Financial Services and Markets Act 2000.

6.2 If, during the provision of professional services to you, you need advice on investments, including insurances, we may have to refer you to someone who is authorised by the Financial Services Authority or licensed by a Designated Professional Body as we are not.

 

 

7. Commissions or other benefits

7.1 In some circumstances, commissions or other benefits may become payable to us in respect of transactions which we arrange for you. Where this happens we will notify you in writing of the amount and terms of payment.

 

 

8. Retention of records

8.1 During the course of our work we may collect information from you and others relevant to your affairs. We will return any relevant documents to you if requested. Documents and records relevant to your affairs are required by law to be retained as follows: Individuals, trustees and partnerships - with trading or rental income: 5 years and 10 months after the end of the tax year; otherwise: 22 months after the end of the tax year; Companies - 6 years from the end of the accounting period;

8.2 Whilst certain documents may legally belong to you we may destroy correspondence and other papers that we store, electronically or otherwise, which are more than 7 years old. You must tell us if you require the return or retention of any specific documents for a longer period.

 

 

9. Notification

9.1 We shall not be treated as having notice, for the purposes of our audit/accounts/tax responsibilities, of information provided to members of our firm other than those engaged on the specific assignment.

 

 

10. Timetable

10.1 The services we undertake to perform for you will be carried out on a timescale to be determined between us on an ongoing basis.

10.2 The timing of our work will in any event be dependent on the prompt supply of all information and documentation as and when required by us.

 

 

11. Third parties

11.1 Any advice we give you will be supplied on the basis that it is for your benefit only and shall not be disclosed to any third party in whole or part without our prior written consent. It may not be used or relied upon for any other purpose or by any other person other than you without our prior written consent. If our advice is disclosed to any third party (with or without our consent), then we accept no responsibility or liability to that third party for any consequences that may arise to them, should they rely on the advice.

11.2 If it is proposed that any documents or statement which refer to our name, are to be circulated to third parties, please consult us before they are issued.

 

 

12. Contracts (Rights of Third Parties) Act 1999

12.1 The advice and information we provide to you as part of our service is for your sole use and not for any third party to whom you may communicate it unless we have expressly agreed that a specified third party may rely on our work. We accept no responsibility to third parties, including any group company to whom the engagement letter is not addressed, for any advice, information or material produced as part of our work for you which you make available to them. A party to this agreement is the only person who has the right under the Contracts (Rights of Third Parties) Act 1999 to enforce any of its terms.

 

 

13. Confidentiality

13.1 Communication between us is confidential and we shall take all reasonable steps to keep confidential your information except where we are required to disclose it by law, by regulatory bodies, by our insurers or as part of an external peer review. Unless we are authorised by you to disclose information on your behalf this undertaking will apply during and after this engagement.

13.2 We may on occasions, subcontract work on your affairs to other tax or accounting professionals. The subcontractors will be bound by our client confidentiality terms.

13.3 We reserve the right, for the purpose of promotional activity, training or for other business purpose, to mention that you are a client. As stated above we will not disclose any confidential information.

 

 

14. Quality of service

14.1 We aim to provide a high quality of service at all times. If you would like to discuss with us how our service could be improved or if you are dissatisfied with the service that you are receiving please let us know.

14.2 We undertake to look into any complaint carefully and promptly and to do all we can to explain the position to you. If we do not answer your complaint to your satisfaction you may take up the matter with the Association of Accounting Technicians.

 

 

15. Communication

15.1 We will communicate with you and with third parties predominately via email or by other electronic means. The recipient is responsible for virus checking emails and any attachments.

15.2 With electronic communication there is a risk of non-receipt, delayed receipt, inadvertent misdirection or interception by third parties. We use virus-scanning software to reduce the risk of viruses and similar damaging items being transmitted through emails or electronic storage devices. However electronic communication is not totally secure and we cannot be held responsible for damage or loss caused by viruses nor for communications which are corrupted or altered after despatch. Nor can we accept any liability for problems or accidental errors relating to this means of communication especially in relation to commercially sensitive material. These are risks you must bear in return for greater efficiency and lower costs.

15.3 Any communication by us with you sent through the post is deemed to arrive at your postal address two working days after the day that the document was sent.

 

 

16. Applicable law

16.1 This engagement letter, the schedule of services and our standard terms and conditions of business are governed by, and should be construed in accordance with English law. Each party agrees that the courts of England will have exclusive jurisdiction in relation to any claim, dispute or difference concerning this engagement letter and any matter arising from it. Each party irrevocably waives any right to object to any action being brought in those Courts, to claim that the action has been brought in an inappropriate forum, or to claim that those Courts do not have jurisdiction.

 

 

17. Data Protection Act 1998

17.1 We confirm that we will comply with the provisions of the Data Protection Act 1998 when processing personal data about you and your family. In order to carry out the services of this engagement and for related purposes such as updating and enhancing our client records, analysis for management purposes and statutory returns, legal and regulatory compliance and crime prevention we may obtain, process, use and disclose personal data about you.

 

 

18. Money Laundering Regulations 2007

18.1 In accordance with the Proceeds of Crime Act 2002 and Money Laundering Regulations 2007 you agree to waive your right to confidentiality to the extent of any report made, document provided or information disclosed to the Serious Organised Crime Agency (SOCA).

18.2 You also acknowledge that we are required to report directly to SOCA without prior reference to you or your representatives if during the course of undertaking any assignment the person undertaking the role of Money Laundering Reporting Officer becomes suspicious of money laundering.

18.3 As a specific requirement of the Money Laundering Regulations we may require you to produce evidence of identity. Copies of such records will be maintained by us for a period of at least five years after we cease to act for the business.

18.4 As with other professional services firms, we are required to identify our clients for the purposes of the UK anti-money laundering legislation. We may request from you, and retain, such information and documentation as we require for these purposes and/or make searches of appropriate databases.

 

 

19. Implementation

19.1 We will only assist with implementation of our advice if specifically instructed in writing.

 

 

20. Intellectual property rights

20.1 We will retain all copyright in any document prepared by us during the course of carrying out the engagement save where the law specifically provides otherwise.

 

 

21. Interpretation

21.1 If any provision of the engagement letter or schedules is held to be void, then that provision will be deemed not to form part of this contract.

21.2 In the event of any conflict between these terms of business and the engagement letter or appendices, the relevant provision in the engagement letter or schedules will take precedence.

 

 

22. Lien

22.1 Insofar as permitted to do so by law or professional guidelines, we reserve the right to exercise a lien over all funds, documents and records in our possession relating to all engagements for you until all outstanding fees and disbursements are paid in full.

 

 

23. Limitation of liability

23.1 We will provide our services with reasonable care and skill. Our liability to you is limited to losses, damages, costs and expenses caused by our negligence or wilful default.

23.2 Exclusion of liability for loss caused by others We will not be liable if such losses, penalties, surcharges, interest or additional tax liabilities are due to the acts or omissions of any other person or due to the provision to us of incomplete, misleading or false information or if they are due to a failure to act on our advice or a failure to provide us with relevant information.

23.3 Exclusion of liability in relation to circumstances beyond our control, We will not be liable to you for any delay or failure to perform our obligations under this engagement letter if the delay or failure is caused by circumstances outside our reasonable control.

23.4 Exclusion of liability relating to the discovery of fraud etc, We will not be responsible or liable for any loss, damage or expense incurred or sustained if information material to the service we are providing is withheld or concealed from us or wrongly misrepresented to us or from fraudulent acts, misrepresentation or wilful default on the part of any party to the transaction and their directors, officers, employees, agents or advisers. This exclusion shall not apply where such misrepresentation, withholding or concealment is or should (in carrying out the procedures which we have agreed to perform with reasonable care and skill) have been evident to us without further enquiry.

23.5 Indemnity for unauthorised disclosure, you agree to indemnify us and our agents in respect of any claim (including any claim for negligence) arising out of any unauthorised disclosure of our advice and opinions, whether in writing or otherwise. This indemnity will extend to the cost of defending any such claim, including payment at our usual rates for the time that we spend in defending it.

23.6 Limitation of aggregate liability, we have discussed and agreed a limitation in our aggregate liability to you and any third parties which we both regard as fair and reasonable in the circumstances of this assignment. The aggregate liability, to you and any third party and whether in contract, tort or otherwise of this firm, its partners, employees and agents for any losses in any way connected with any of the services provided to you under the terms of this letter of engagement (and including interest) shall not exceed the amount stated in the engagement covering letter.

 

 

24. Professional Indemnity Insurance

24.1 In accordance with our professional body rules we are required to hold professional indemnity insurance. Details about the insurer and coverage are available on request.

 

 

25. Authorisation and Registration

25.1 Accolade Accountancy is registered with AAT and can be found on the register of members at http://www.AAT.co.uk

 

26. Reliance on advice

26.1 We will endeavour to record all advice on important matters in writing. Advice given orally is not intended to be relied upon unless confirmed in writing. Therefore, if we provide oral advice (for example during the course of a meeting or a telephone conversation) and you wish to be able to rely on that advice, you must ask for the advice to be confirmed by us in writing.

 

 

27. Conflicts of interest

27.1 We will inform you if we become aware of any conflict of interest in our relationship with you or in our relationship with you and another client. Where conflicts are identified which cannot be managed in a way that protects your interests then we regret that we will be unable to provide further services.

27.2 If there is a conflict of interest that is capable of being addressed successfully by the adoption of suitable safeguards to protect your interests then we will adopt those safeguards. Where possible this will be done on the basis of your informed consent. We reserve the right to act for other clients whose interests are not the same as or are adverse to yours subject of course to the obligations of confidentiality referred to above.

 

 

28. Period of engagement and termination

28.1 Unless otherwise agreed in the engagement covering letter our work will begin when we receive your implicit or explicit acceptance of that letter. Except as stated in that letter we will not be responsible for periods before that date.

28.2 Each of us may terminate this agreement immediately by giving notice in writing to the other party. Termination will be without prejudice to any rights that may have accrued to either of us prior to termination.

28.3 In the event of termination of this contract, we will endeavour to agree with you the arrangements for the completion of work in progress at that time, unless we are required for legal or regulatory reasons to cease work. In that event, we shall not be required to carry out further work and shall not be responsible or liable for any consequences arising from termination.

 

 

29. Disengagement

29.1 Should we resign or be requested to resign disengagement letter will be issued to ensure that our respective responsibilities are clear.

29.2 Should we have no contact with you for a period of 2 months or more we may issue a disengagement letter and hence cease to act.

 

 

 

Terms of Engagement

 

 

1. Bookkeeping and monthly accounts (if applicable)

 

1.1 We will prepare from the information and explanations provided by you:

 

a) Records of bank receipts and payments;

 

b) Records of cash receipts and payments;

 

c) Reconciliations of the bank and cash control accounts;

 

d) A record of sales;

 

e) A record of purchases;

 

 

1.2 You are responsible for providing us with the following information required for us to prepare the accounting records:

 

a) Sales invoices;

 

b) Purchase invoices;

 

c) Bank statements;

 

d) Details of bank and cash payments;

 

e) Details of bank and cash receipts;

 

1.3 We prepare a monthly profit and loss account and balance sheet based on the information supplied. This is intended to assist you in monitoring your business only. The accounts are not suitable to use for your tax return as they may not be adjusted for debtors, creditors, stock and other items which are required to produce a set of financial accounts.

 

 

2. VAT services (if applicable)

2.1 We will prepare your VAT returns on the basis of the information and explanations supplied by you.

2.2 We will tell you how much you should pay and when. If appropriate we will initiate repayment claims where tax has been overpaid.

2.3 We will forward to you the completed return calculations for you to review, before you approve the VAT return for onward transmission by us to HM Revenue & Customs.

2.4 We will also provide such other taxation ad hoc and advisory services as may be agreed from time to time. These may be the subject of a separate engagement letter, at our option. Where appropriate we will discuss and agree an additional fee for this work when it is commissioned by you.

2.5 Where specialist advice is required in certain areas we may need to seek this from or refer you to appropriate specialists.

2.6 We will not accept responsibility if you act on advice previously given by us without first confirming with us that the advice is still valid in light of any change in the law or your circumstances.

2.7 We will accept no liability for losses arising from changes in the law or the interpretation thereof that occur after the date on which the advice is given.

 2.8 You are legally responsible for:

 

a) Ensuring that your returns are correct and complete;

 

b) Filing any returns by the due date; and

 

c) Making payment of tax on time. Failure to do this may lead to automatic penalties, surcharges and/or interest.

 

The signatory to the return cannot delegate this legal responsibility to others. The signatory agrees to check that returns we have prepared for you are complete before he/she approves and signs them.

2.9 To enable us to carry out our work you agree:

 

a) That all returns are to be made on the basis of full disclosure;

 

b) That you are responsible for ensuring that the information provided is, to the best of your knowledge, accurate and complete. The VAT returns are prepared solely on the basis of the information provided by you and we accept no responsibility for any VAT liabilities arising due to inaccuracies or omissions in the information you provide which may lead to a mis-declaration on which penalties and interest may arise;

 

c) That we can approach such third parties as may be appropriate for information we consider necessary to deal with the VAT returns; and

 

d) To provide us with all the records relevant to the preparation of your VAT returns within 14 days of the end of the VAT return period. If the records are provided later or are incomplete or unclear thereby delaying the preparation/review and submission of the VAT return, we accept no responsibility for any charges or penalties that may arise.

 

2.10 You will keep us informed of material changes in circumstances that could affect the tax liabilities of the company. If you are unsure whether the change is material or not please let us know so that we can assess the significance or otherwise.

2.11 You will forward to us HMRC statements of account, copies of notices of assessment, letters and other communications received from HMRC in time to enable us to deal with them as may be necessary within the statutory time limits. Although HMRC have the authority to communicate with us through the form 64-8 it is essential that you let us have copies of any correspondence received from HMRC to avoid any breakdown in communication.

2.12 You are responsible for bringing to our attention any errors, omissions or inaccuracies in your VAT returns which you become aware of after the returns have been submitted in order that we may assist you to make a voluntary disclosure.

2.13 If you are involved with any other business which is not registered for VAT you are responsible for monitoring your monthly turnover to establish whether you are liable to register for VAT. If you exceed the VAT registration threshold, and wish us to assist you in notifying HMRC of your liability to be VAT registered, you must give us clear instructions to assist you in the VAT registration process. You should notify us of your instructions in good time to enable the VAT registration application form to be submitted within the statutory time limit of one month following the month in which you exceeded the VAT registration threshold in force at that time. We will not be responsible if you fail to notify us in time and incur a late registration penalty as a result.

2.14 If EC Sales Lists need to be completed you are responsible for obtaining all of your customers’ VAT registration numbers in other member states and to check any that you are not completely satisfied with, with HMRC.

 

 

3. Accounts – sole-traders and partnerships (if applicable)

 

3.1 We will prepare your accounts as agents on your behalf.

3.2 We will prepare the accounts from the records provided by you.

3.3 You agree that at the end of your financial year you will provide us with details of

 

a) Stocks and work in progress;

 

b) Amounts owing to creditors;

 

c) Amounts owing by customers;

 

d) Accruals and prepayments; and

 

e) Amounts recoverable under contracts.

 

 

3.5 Our report will be based on information gained from you, and we accept no responsibility for any losses arising out of implementing our report. Further, our report requires us to rely substantially upon your representations. Therefore we can accept no responsibility for any losses for issues not addressed in our report.

3.6 As part of our normal procedures we may request you to provide written confirmation of any oral information and explanations given to us during the course of our work.

3.7 We will not be carrying out any audit work as part of this assignment and accordingly will not verify the assets and liabilities of the business, nor the items of expenditure and income. To carry out an audit would entail additional work so that we could report on the truth and fairness of the accounts. We would also like to emphasise that we cannot undertake to discover any shortcomings in your systems or irregularities on the part of your employees.

3.8 We have a professional duty to compile accounts that conform to generally accepted accounting principles. Where we identify that the accounts do not conform to accepted accounting principles we will inform you and suggest amendments be put through the accounts before being published. We have a professional responsibility not to allow our name to be associated with accounts that may be misleading. In extreme cases, where this matter cannot be resolved, we will withdraw from the engagement and notify you in writing.

3.9 To ensure that anyone reading the accounts is aware that we have not carried out an audit, we will attach to the accounts a report stating this fact.

3.10 The intended user of the report is the proprietor. The report will be addressed to the proprietor.

 

 

4. Personal Tax Services (if applicable)

4.1 We will prepare your self assessment tax returns together with any supplementary pages required from the information and explanations that you provide to us. After obtaining your approval we will submit your returns to HM Revenue & Customs (HMRC).

4.2 We will calculate your income tax, national insurance contributions (NIC) and any capital gains tax liabilities and tell you how much you should pay and when, and initiate repayment claims if tax or NIC has been overpaid.

4.3 Other than as regards tax credits which are in effect a social security benefit we will advise you as to possible tax return related claims and elections arising from information supplied by you. Where instructed by you, we will make such claims and elections in the form and manner required by HMRC.

4.4 We will review PAYE notices of coding provided to us and advise accordingly.

4.5 We will also provide such other taxation ad hoc and advisory services as may be agreed from time to time. These may be the subject of a separate engagement letter. Where appropriate we will discuss and agree an additional fee for such work when it is commissioned by you. Examples of such work include advising on ad hoc transactions, preparing additional supplementary

pages to your tax return and calculating any related liabilities, dealing with any enquiry opened into your tax return by HMRC, preparing any amended returns which may be required and corresponding with HMRC as necessary and advising on the rules relating to and assisting with VAT registration

4.6. Where specialist advice is required on occasions we may need to seek this from or refer you to appropriate specialists.

4.7 We will not accept responsibility if you act on advice previously given by us without first confirming with us that the advice is still valid in light of any change in the law or your circumstances.

4.8 We will accept no liability for losses arising from changes in the law or the interpretation thereof that occur after the date on which the advice is given.

4.9 You are legally responsible for:

 

a) Ensuring that your self assessment tax returns are correct and complete;

 

b) Filing any returns by the due date; and

 

c) Making payment of tax on time. Failure to do this may lead to automatic penalties, surcharges and/or interest.

 

Taxpayers who sign their returns cannot delegate this legal responsibility to others. You agree to check that returns we have prepared for you are complete before you approve them.

4.10 To enable us to carry out our work you agree:

 

a) That all returns are to be made on the basis of full disclosure of all sources of income, charges, allowances and capital transactions;

 

b) To provide full information necessary for dealing with your affairs: we will rely on the information and documents being true, correct and complete and will not audit the information or those documents;

 

c) to authorise us to approach such third parties as may be appropriate for information that we consider necessary to deal with your affairs; and

 

d) To provide us with information in sufficient time for your tax return to be completed and submitted by the due date following the end of the tax year. In order that we can do this, we need to receive all relevant information by 30 June following the end of the tax year. We may agree to complete your return within a shorter period but may charge an additional fee for doing so.

 

4.11 You will keep us informed of material changes in your circumstances that could affect your tax liability. If you are unsure whether the change is material or not please let us know so that we can assess the significance or otherwise.

4.12 You will forward to us HMRC statements of account, copies of notices of assessment, letters and other communications received from HMRC in time to enable us to deal with them as may be necessary within the statutory time limits. Although HMRC have the authority to communicate with us through the form 64-8 it is essential that you let us have copies of any correspondence received from HMRC to avoid any breakdown in communication.

4.13 You are responsible for monitoring your monthly turnover to establish whether you are liable to register for VAT. If you exceed the VAT registration threshold, and wish us to assist you in notifying HMRC of your liability to be VAT registered, we will be pleased to assist you in the VAT registration process. You should notify us of your instructions to assist in your VAT registration in good time to enable a VAT registration form to be submitted within the time limit of one month following the month in which you exceeded the VAT registration threshold in force at that time. We will not be responsible if you fail to notify us in time and incur a late registration penalty as a result.

 

 

5. Company Accounts (if applicable)

5.1 We will prepare your accounts as agents on your behalf.

5.2 The advice that we give can only be as good as the information upon which it is based. Insofar as that information is provided by you, or by third parties with your permission, your responsibility arises as soon as possible if any circumstances or facts alter as any alteration may have a significant impact on the advice given. If the circumstances change therefore or your needs alter, advise us of the alteration as soon as possible in writing.

5.3 As director of the company, you are required by statute to prepare accounts (financial statements) for each financial year which give a true and fair view of the state of affairs of the company and of its profit or loss for that period. In preparing those accounts you must:

 

a) Select suitable accounting policies and then apply them consistently;

 

b) Make judgements and estimates that are reasonable and prudent; and

 

c) Prepare the accounts on the going concern basis unless it is not appropriate to presume that the company will continue in business.

 

It is your responsibility to keep proper accounting records which disclose with reasonable accuracy at any particular time the financial position of the company. It is also your responsibility to safeguard the assets of the company and for taking reasonable steps for the prevention of and detection of fraud and other irregularities with an appropriate system of internal controls.

5.4 You are responsible for determining whether, in respect of the year concerned, the company meets the conditions for exemption from an audit set out in section 477 of the Companies Act 2006, and for determining whether, in respect of the year, the exemption is not available for any of the reasons set out in Section 478 of the Companies Act 2006.

5.5 You are also responsible for making available to us, as and when required, all the company’s accounting records and all other relevant records and related information, including minutes of management and shareholders’ meetings.

5.6 You will also be responsible for preparing details of the following at the year end:

 

a) Stocks and work in progress;

 

b) Fixed assets;

 

c) Amounts owing to suppliers;

 

d) Amounts owing by customers; and

 

e) Amounts recoverable under contracts.

 

5.7 Our work will not be an audit of the accounts in accordance with International Auditing Standards. Accordingly we shall not seek any independent evidence to support the entries in the accounting records, or to prove the existence, ownership or valuation of assets or completeness of income, liabilities or disclosure in the accounts. Nor shall we assess the reasonableness of any estimates or judgements made in the preparation of the accounts. Consequently our work will not provide any assurance that the accounting records are free from material misstatement, irregularities or error.

5.8 As part of our normal procedures we may request you to provide written confirmation of any oral information and explanations given to us during the course of our work.

5.9 We have a professional duty to compile accounts that conform to generally accepted accounting principles. The accounts of a limited company are required to comply with the disclosure requirements of the Companies Act 2006 and Applicable Accounting Standards. Where we identify that the accounts do not conform to accepted accounting principles or standards we will inform you and suggest amendments be put through the accounts before being published. We have a professional responsibility not to allow our name to be associated with accounts that may be misleading. In extreme cases, where this matter cannot be resolved, we will withdraw from the engagement and notify you in writing of the reasons.

5.10 We will not be carrying out any audit work as part of this assignment and accordingly will not verify the assets and liabilities of the company, nor the items of expenditure and income. To carry out an audit would entail additional work to comply with International Auditing Standards so that we could report on the truth and fairness of the financial statements. We would also like to emphasise that we cannot undertake to discover any shortcomings in your systems or irregularities on the part of your employees.

5.11 If an audit of the accounts is required, you will need to notify us in writing. Should our work indicate that the company is not entitled to exemption from an audit of the accounts, we will inform you.

5.12 To ensure that anyone reading the accounts is aware that we have not carried out an audit, we will attach to the accounts a report stating this fact.

5.13 The intended users of the report are the directors. The report will be addressed to the directors.

5.14 Once we have issued our report we have no further direct responsibility in relation to the accounts for that financial year. However, we expect that you will inform us of any material event occurring between the date of our report and that of the annual general meeting that may affect the accounts.

 

 

6. Company Tax Services (if applicable)

6.1 We will prepare the company’s corporation tax return. After obtaining approval and signature of an authorised nominated director, we will submit it to HM Revenue & Customs.

6.2 We will prepare the corporation tax computation and supporting schedules required for preparation of the company tax return from accounts, information and explanations provided to us on your behalf.

6.3 We will tell you how much tax the company should pay and when. If appropriate, we will initiate repayment claims when tax has been overpaid.

6.4 We will inform you if instalment payments of corporation tax are due for an accounting period and the dates they are payable. We will calculate the quarterly instalments which should be made on the basis of information supplied by you by the date agreed.

6.5 We will advise you as to possible tax return related claims and elections arising from information supplied by you. Where instructed by you, we will make such claims and elections in the form and manner required by HMRC.

6.6 We will also provide other such taxation advisory and ad hoc services as may be agreed from time to time. These may be the subject of a separate engagement letter, at our option. Where appropriate we will discuss and agree an additional fee for such work when it is commissioned by you. Examples of such work include:

Advising you when corporation tax is due on loans by the company to directors or shareholders or their associates, and calculating the payments due or the amount repayable when the loans are repaid.

Dealing with any enquiry opened into the company’s tax return by HMRC.

Preparing any amended returns which may be required and corresponding with HMRC as necessary

6.7 Where specialist advice is required on occasions we may need to seek this from or refer you to appropriate specialists.

6.8 We will not accept responsibility if you act on advice previously given by us without first confirming with us that the advice is still valid in light of any change in the law or your circumstances.

6.9 We will accept no liability for losses arising from changes in the law or the interpretation thereof that occur after the date on which the advice is given.

6.10 The Directors, on behalf of the company, are legally responsible for:

 

a) Ensuring that the Corporation tax return is correct and complete;

 

b) Filing any returns by the due date; and

 

c) Making payment of tax on time. Failure to do this may lead to automatic penalties, surcharges and/or interest.

 

d) The signatory to the return cannot delegate this legal responsibility to others. The signatory agrees to check that returns we have prepared for the company are complete before he/she approves and signs them.

 

 

6.11 To enable us to carry out our work the Directors agree:

 

a) That all returns are to be made on the basis of full disclosure of all sources of income, charges, allowances and capital transactions;

 

b) To provide full information necessary for dealing with the company’s affairs: we will rely on the information and documents being true, correct and complete and will not audit the information or those documents;

 

c) To authorise us to approach such third parties as may be appropriate for information that we consider necessary to deal with the company’s affairs;

 

d) To provide us with information in sufficient time for the company’s tax return to be completed and submitted by the due date. In order that we can do this we need to receive all relevant information within 2 months of the end of the company’s financial year/period. Where feasible we may agree to complete your return within a shorter period but may charge an additional fee for doing so;

 

e) to provide information on matters affecting the company’s tax liability for the accounting period in respect of which instalments are due at least four weeks before the due date of each instalment. This information should include details of trading profits and other taxable activities up to the date the information is provided, together with estimates to the end of the accounting period; and

 

f) to provide us with information on advances or loans made to directors, shareholders or their associates during an accounting period and any repayments made or write offs authorised at least within three months of the end of the relevant accounting period.

 

6.12 The Directors will keep us informed of material changes in circumstances that could affect the tax liabilities of the company. If the Directors are unsure whether the change is material or not please let us know so that we can assess the significance or otherwise.

6.13 You will forward to us HMRC statements of account, copies of notices of assessment, letters and other communications received from HMRC in time to enable us to deal with them as may be necessary within the statutory time limits. Although HMRC have the authority to communicate with us through the form 64-8 it is essential that you let us have copies of any correspondence received from HMRC to avoid any breakdown in communication.

6.14 You are responsible for monitoring the monthly turnover to establish whether the company is liable to register for VAT, if it is not already registered. If the company exceeds the VAT registration threshold, and you wish us to assist in notifying HMRC of the Company’s liability to be VAT registered we will be pleased to assist in the VAT registration process. You should notify us of your instructions to act in relation to the company’s VAT registration in good time to enable a VAT registration form to be submitted within the time limit of one month following the month in which the current VAT registration turnover threshold was exceeded. We will not be responsible if we are not notified in time and a late registration penalty is incurred.

 

 

7. Payroll Services (if applicable)

 

7.1 We will prepare your UK payroll for each payroll period to meet UK employment tax requirements, specifically:

 

Calculating the pay as you earn (PAYE) deductions

Calculating the employees’ National Insurance Contributions (NIC) deductions

Calculating the employer’s NIC liabilities

Calculating statutory payments, for example, Statutory Sick Pay and/or Statutory Maternity Pay

Calculating other statutory and non statutory deductions

 

7.2 We will prepare and send to you the following documents for each payroll period at or before the time of payment:

Payroll summary report showing the reconciliation from gross to net for each employee and all relevant payroll totals

A payslip for each employee unless not required

A P45 for each leaver

A report showing your PAYE and NIC liability and due date for payment

 

7.3 We will prepare and send to you the following documents by the statutory due dates at the end of the payroll year:

Form P60 for each employee on the payroll at the year end

P35 (your year end annual return) a summary of the annual employer’s declarations, including the total payroll payments and deductions for your approval before the year end online declaration is made to HMRC

P14 or P60 for all staff who were on the payroll during the payroll year

We will submit your forms P35 and P14 after they have been approved by you.

 

7.4 We will also provide such other taxation ad hoc and advisory services as may be agreed from time to time. These may be the subject of a separate engagement letter, at our option. Where appropriate we will discuss and agree an additional fee for such work when it is commissioned by you. Examples of such work include:

Dealing with any enquiry opened into the payroll returns by HMRC

Preparing any amended returns which may be required and corresponding with HMRC as necessary

Where specialist advice is required on occasions we may need to seek this from or refer you to appropriate specialists.

7.5 We will not accept responsibility if you act on advice previously given by us without first confirming with us that the advice is still valid in light of any change in the law or your circumstances.

7.6 We will accept no liability for losses arising from changes in the law or the interpretation thereof that occur after the date on which the advice is given.

7.7 You are legally responsible for:

 

a) Ensuring that your payroll returns are correct and complete;

 

b) Filing any returns by the due date; and

 

c) Making payment of tax and NIC on time. Failure to do this may lead to automatic penalties, surcharges and/or interest.

 

Signatories to returns cannot delegate this legal responsibility to others. You agree to check that returns we have prepared for you are correct and complete before you approve and sign them.

 

7.8 To enable us to carry out our work you agree:

 

a) That all returns are to be made on the basis of full disclosure;

 

b) To provide full information necessary for dealing with your payroll affairs: we will rely on the information and documents being true, correct and complete and will not audit the information or those documents;

 

c) To agree with us the names of the persons authorised by you to notify us of changes in employees and in rates of pay. We will process the changes only if notified by that/those individuals;

 

d) To advise us in writing of changes of payroll pay dates;

 

e) To notify us at least 3 working days prior to the payroll date of all transactions or events which may need to be reflected in the payroll for the period, including details of all new employees and details of their remuneration packages, all leavers and details of termination arrangements, all remuneration changes etc

 

f) The Directors will keep us informed of material changes in circumstances that could affect the tax liabilities of the company. If the Directors are unsure whether the change is material or not please let us know so that we can assess the significance or otherwise; and

 

g) To authorise us to approach such third parties as may be appropriate for information that we consider necessary to deal with your affairs.

 

7.9 If the information required to complete the payroll services set out above is received less than 3 days before the payroll date we will still endeavour to process the payroll to meet the agreed payroll date but we will not be liable for any costs or other losses arising if the payroll is late in these circumstances. We may charge an additional fee for work carried out in a shorter time period.

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