Terms & Conditions for our Services

    PRODUCTION OF ANNUAL ACCOUNTS

    The purpose of this work is for us to prepare your year-end accounts so as to assist you in meeting your obligations as company directors under the Companies Act 2006.

    This schedule should be read in conjunction with the engagement letter and the standard terms of business.

    Our Responsibilities – What we agree to do and be responsible for:

    1. Preparing accounts in accordance with the requirements of the Companies Act 2006 for your approval based on the accounting records you maintain. We will rely on any information and explanations you give us.
    2. We will advise you as to the adequacy of your records for preparation of the annual accounts and make recommendations for improvements which we consider necessary. We shall not be responsible if, as a result of you not taking our advice, you incur losses or penalties.
    3. We have a professional duty to prepare accounts that conform to generally accepted accounting principles. As directors, you have a duty to prepare accounts that comply with the Companies Act 2006 and any accounting standards that apply. We will prepare the accounts so as to meet these requirements. The accounts we prepare for filing purposes will, unless you instruct us otherwise, be prepared on the basis of taking all available filing exemptions and so may not be identical to the accounts prepared for members.
    4. Provide a report with the accounts addressed to the Board of Directors. This will show that we have not carried out an audit but have compiled the accounts from the accounting records and from information and explanations supplied to us.
    5. Submit the accounts to the Registrar of Companies.

    Your Responsibilities – What you agree to do and be responsible for

    1. Unless we have also agreed to carry out a bookkeeping service you will carry out all the day-to-day accounting work. This will include:
      • keeping the record of receipts and payments;
      • reconciling your records with the bank statement;
      • maintaining records of debtors and creditors;
      • carrying out or arranging for a valuation of the year-end stock levels; and
      • preparing details of any year-end work-in-progress.
    2. You agree to make your accounting records and related financial information available to us in line with the request we will make on or around your year-end date. You recognise that a failure to do so could have an impact on the price or the speed of our work.
    3. Even if we have not directly requested it, you agree to disclose to us in full any information that is relevant to the accounts and may have a bearing on the financial position of the company. You also agree to make available to us minutes of management, directors and shareholders meetings.#You will approve and sign the accounts thereby acknowledging responsibility for them.
    4. Company accounts need to be completed and filed with Companies House within certain deadlines set out in the Companies Act 2006. Failure to submit on time will result in penalties. We will, therefore, plan our work so as to ensure sufficient time is allowed to meet the submission deadlines. However, if you fail to provide your accounting records in line with our request as noted above or do not promptly answer any queries that we raise, you understand that we will not be responsible for any late filing penalties charged for a late submission.
    5. We have a professional responsibility to not allow our name to be associated with accounts that we believe may be misleading. We are not required to search for such matters, but if we become aware that information in the accounts may be misleading we will discuss this with you so that appropriate adjustments or disclosures can be made. Where the adjustments or disclosures we consider appropriate are not made and we consider that the accounts remain misleading, we will withdraw from the engagement. In these circumstances, you agree that we have a right to invoice you for our time spent preparing and discussing the accounts with you as well as time spent on any other work that is not completed as part of our resignation.
    6. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than you for our work or for the report. If you wish or are asked, to provide a copy of the accounts to a third party you must seek our consent before you do this. You are not entitled to disclose our work to a third party without our express permission. We may grant consent subject to certain conditions which you must comply with. In every situation where we do grant consent, you agree to ensure that the report remains attached to the accounts shown to the third party.
    7. If financial information is published, which includes a report by us or is otherwise connected to us, on the company’s website or by other electronic means, you must:
      • inform us of the electronic publication and get our consent before it occurs; and
      • ensure that it presents the financial information and our report properly.
    8. We have the right to withhold consent to the electronic publication of our report or the accounts if they are to be published in an inappropriate manner.
    9. You must set up controls to prevent or quickly detect any changes to electronically published information. We are not responsible for reviewing these controls nor for keeping the information under review after it is first published. You are responsible for the maintenance and integrity of published information, and we accept no responsibility for changes made to any information after it is first posted.

    Other considerations

    Limitation of liabilities and Changes in the law

    1. We have no responsibility to report whether any shareholder of the company has notified the company that they require an audit. Therefore we have no responsibility to do any work in respect of this.
    2. We will not check whether the company is exempt from audit. However, if our work indicates that the company is not entitled to an exemption from an audit we will inform you. If this happens we will discuss with you the need to appoint auditors.
    3. We will not specifically check the adequacy of your accounting records. However, if any issues arise during the course of our work then we will recommend improvements.
    4. We shall plan our work on the basis that no report is required on the accounts from us by statute or regulation unless you inform us in writing to the contrary. In carrying out our work we will make enquiries of you and undertake any procedures we judge appropriate, but we are under no obligation to perform procedures such as would be required for an audit or another type of assurance engagement.
    5. Our work will not be an audit of the accounts in accordance with International Standards on Auditing (UK). This means that our work will not provide any assurance that the accounting records or the accounts are free from material misstatement, whether caused by fraud or other irregularities or error. It also means that we are unable to provide any assurance as to whether the accounts present a true and fair view.

    CORPORATE TAX RETURN

    The purpose of the work is to assist you in your legal obligation to file an annual corporation tax return with HM Revenue & Customs. This includes calculating and advising you of your tax payments or refunds.
    This schedule should be read in conjunction with the engagement letter and the standard terms and conditions.

    Our Responsibilities – What we agree to do and be responsible for:

    1. Profit from accounts prepared under generally accepted accounting principles may require adjustment to arrive at the profit figure assessed for tax. We will prepare the company’s tax return, the computation with these adjustments and support schedules required from the accounts and information and explanations you provide to us.
    2. After obtaining the written approval and signature of the proper officer or other person authorised to act for the company in this regard, we will submit the return, computation and accounts online to HM Revenue & Customs in the required Extensible Business Reporting Language (XBRL) format, a type of computer language. In order for us to make this submission, unless we have been separately engaged for this purpose, you will be responsible for providing us with accounts in inline Extensible Business Reporting Language (iXBRL) format at the time when the company tax return is approved. We will not be responsible for the accounts or the iXBRL tagging.
    3. It is mandatory for the Company Tax Return to be delivered electronically using the iXBRL format, which includes the statutory accounts. It is the company’s responsibility to ensure that the accounts have been accurately tagged if relevant, the statutory audit not providing assurance on this matter.
    4. Tell you how much tax the company should pay and when. If appropriate, we will initiate repayment claims when tax has been overpaid. We will advise on the interest and penalty implications if corporation tax is paid late.
    5. 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. Advise you when additional corporation tax is due on loans by the company to directors or members or their associates, and calculate the payments due or the amount repayable when the loans are repaid.
    7. Advise as to possible claims and elections arising from the tax return and from information supplied by you. Where instructed by you, we will make such claims and elections in the form and manner required by HM Revenue & Customs.
    8. We will also provide other such taxation advisory and ad hoc services as requested and agreed from time to time. These may be the subject of a separate engagement letter. Where appropriate we will discuss and agree on an additional fee for such work when it is commissioned by you. Examples of such work include:
      dealing with any enquiry opened into the company’s tax return by HM Revenue & Customs;
      preparing any amended returns which may be required and corresponding with HM Revenue & Customs as necessary.

    Your Responsibilities – What you agree to do and be responsible for:

    1. The Directors, on behalf of the company, are legally responsible for:
      • ensuring that the CTSA return is correct and complete;
      • ensuring that the information in the return is provided in Extensible Markup (XML) format;
        filing any returns by the due date; and
      • making payment of tax on time. Failure to do this may lead to automatic penalties, surcharges and/or interest.Please note:
      • 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.
      • It is mandatory for the company tax return to be delivered electronically using the Extensible Business Reporting Language (XBRL) format, a type of computer language. Unless you have requested otherwise above, it is your responsibility to ensure that the accounts have been accurately tagged in the iXBRL format.
    2. To enable us to carry out our work the directors agree:
      • that all returns are to be made on the basis of full disclosure of all sources of income, charges, allowances and capital transactions;
      • 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;
      • that we can approach such third parties as may be appropriate for information that we consider necessary to deal with the company’s affairs;
      • to provide us with information in sufficient time for the company’s tax returns to be completed and submitted by the due date;
      • 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
      • to provide us with information on advances or loans made to directors, members 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.
    3. 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. These changes could include but are not limited to circumstances which could give rise to a change in CIS status, the requirement to make Payment of Corporation Tax by Instalments, Research and Development activities, changes in the number of Associated Companies and matters which may have an impact of Remuneration Planning.
    4. You will forward to us HM Revenue & Customs statements of account, copies of notices of assessment, letters and other communications received from HM Revenue & Customs in time to enable us to deal with them as may be necessary within the statutory time limits. Although HM Revenue & Customs 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 HM Revenue & Customs to avoid any breakdown in communication.

    Other considerations

    Ad hoc and advisory work

    1. Unless otherwise agreed, you will continue to deal with other matters required by law, such as:
      • Pay As You Earn including year end returns, compliance with National Minimum Wage requirements and matters relating to your employees;
      • Forms P11D;
      • Returns for subcontractors;
      • VAT returns;
      • Obligations under IR35;
      • Managed service company legislation;
      • Compliance with Employment Related Securities and submission of Form 42; and
      • Forms CT61.
    2. We will be pleased to assist the company generally in tax matters if you advise us in good time of any proposed transactions and request advice. We would, however, warn you that because tax rules change frequently you must ask us to review any advice already given if a transaction is delayed, or if an apparently similar transaction is to be undertaken.
    3. Where specialist advice is required on occasions we may need to seek this from or refer you to appropriate specialists.
    4. We are able to offer HMRC Dispute and Enquiries Service to cover the cost of our fees arising from HM Revenue & Customs investigations. If you would like further details of this service please let us know.
    5. We will be pleased also to advise the directors and executives on their personal income tax and capital tax affairs. In such cases, we will need to agree on separate terms with the individuals concerned.

    Limitation of liabilities – Changes in the law

    1. We will not accept responsibility if you act on advice given by us on an earlier occasion without first confirming with us that the advice is still valid in the light of any change in the law or your circumstances.
    2. We will accept no liability for losses arising from changes in the law or the interpretation thereof that are first published after the date on which the advice is given

    COMPANY SECRETARIAL SERVICE

    The purpose of the work is to assist you with all company secretarial work.

    This schedule should be read in conjunction with the engagement letter and the standard terms and conditions.

    Our Responsibilities – What we agree to do and be responsible for:

    1. We will prepare from the information and explanations provided by you, your returns together with any supporting schedules. We will not audit or otherwise check the underlying records.
    2. We will send you the returns and any supporting schedules for you to approve after your making the records available to us.
    3. We will complete other returns reflecting changes in directors, shareholders etc as requested.
    4. We will maintain the statutory records and minutes on behalf of the company secretary from the information supplied.

    Your Responsibilities – What you agree to do and be responsible for:

    1. You are responsible for making correct returns by the due date.
    2. To enable us to carry out our work you agree:
      • 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.
      • That we can approach such third parties as may be appropriate for information that we consider necessary to deal with your affairs.
      • To provide us with information in sufficient time for your returns to be completed and submitted.
      • To provide us within seven days of signing, certified copies of directors and shareholder notices, minutes or resolutions.

    The advice that we give can only be as good as the information on which it is based. In so far 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.

    PARTNERSHIP TAX RETURN

    The purpose of the work is to assist you in prepare the income tax and capital gains tax computations based on the partnership accounts from the accounting records and other information and explanations provided by you.
    This schedule should be read in conjunction with the engagement letter and the standard terms and conditions.

    Our Responsibilities – What we agree to do and be responsible for:

    1. Prepare the Partnership self assessment tax returns and the annual Partnership Statements together with any supplementary pages required from the information and explanations that the Partnership provides to us. After obtaining the approval and signature of one of the Partners nominated to deal with the Partnership’s tax affairs we will submit these to HM Revenue & Customs (HMRC).
    2. Prepare the Partnership business accounts in accordance with generally accepted accounting practice from the books, accounting records and other information and explanations provided to us by you and/or by others on your behalf.
    3. Prepare the income tax and capital gains tax computations based on the Partnership’s business accounts for inclusion in the Partnership tax return.
    4. If instructed we will provide each partner or their agent with details of the partner’s allocations from the return to enable partners to fill in their self assessment tax returns.
    5. Advise you as to possible tax return related claims and elections arising from information supplied by the Partnership. Where instructed by you we will make such claims and elections in the form and manner required by HMRC.

    Your Responsibilities – What you agree to do and be responsible for:

    1. The Partners are legally responsible for:
      • Ensuring that the Partnership self assessment tax returns are correct and complete;
      • Filing any returns by the due date; and
      • Making payment of tax on time.

        Please note:

      • 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. The Nominated Partner agrees to check that returns and partnership statements we have prepared for the Partnership are complete before you approve and sign them.
    2. To enable us to carry out our work you agree:
      • That all returns are to be made on the basis of full disclosure of all sources of income, charges, allowances and capital transactions;
      • To provide all information necessary for dealing with the Partnership affairs: we will rely on the information and documents being true, correct and complete and will not audit the information or those documents;
      • To authorise us to approach such third parties as may be appropriate for information that we consider necessary to deal with the Partnership affairs; and
      • To provide us with information in sufficient time for the Partnership 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 30th November following the end of the tax year. Where feasible we may agree to complete your return within a shorter period but may charge an additional fee for so doing.
    3. You will keep us informed of material changes in circumstances that could affect the tax liabilities of the partners including, by way of example, changes in the partners in the Partnership. If you are unsure whether the change is material or not please let us know so that we can assess its significance.
    4. 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 when form 64-8 has been signed and submitted it is essential that you let us have copies of any correspondence received because HMRC are not obliged to send us copies of all communications issued to you.
    5. The work carried out within this engagement will be in respect of the Partnership’s tax affairs. Any work to be carried out for the individual partners will be set out in a separate letter of engagement.
    6. You are responsible for monitoring the Partnership’s monthly turnover to establish whether it is liable to register for VAT if it is not already registered. If you do not understand what you need to do, please ask us. If it exceeds the VAT registration threshold, and you wish us to assist in notifying HMRC of its liability to be VAT registered we will be pleased to assist in the VAT registration process. You should notify us of your instructions to assist in the 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 VAT registration threshold in force at that time was exceeded. We will not be responsible if you fail to notify us in time and incur a late registration penalty as a result. 

    Other considerations:

    Ad hoc and advisory work

    1. Where you have instructed us to do so, we will also provide such other taxation advisory and ad hoc services as may be agreed between 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:

    2. Dealing with any enquiry opened into the Partnership tax return by HMRC; and
    3. Preparing any amended returns which may be required and corresponding with HMRC as necessary
    1. Where specialist advice in certain areas is required on occasions we may need to seek this from or refer you to appropriate specialists.

    Limitation of liabilities – Changes in the law

    1. We will not accept responsibility if you act on advice given by us on an earlier occasion without first confirming with us that the advice is still valid in the light of any change in the law or your circumstances.
    2. We will accept no liability for losses arising from changes in the law or the interpretation thereof that are first published after the date on which the advice is given

      PERSONAL TAX RETURN

      The purpose of the work is to assist you in your legal obligation to file an annual tax return with HM Revenue & Customs. This includes calculating and advising you of your tax payments or refunds.
      This schedule should be read in conjunction with the engagement letter and the standard terms and conditions.

      Our Responsibilities – What we agree to do and be responsible for:

      1. Prepare your personal tax return and all supporting schedules as necessary.
      2. Deal with matters arising in respect of years prior to the above year, as appropriate.
      3. Forward to you the tax return form and supporting schedules for review and signature. Once you have checked, approved and signed the return, we shall submit it to the HMRC.
      4. Tell you how much tax you should pay and when. If appropriate we will initiate repayment claims when tax has been overpaid.
      5. Deal with the HMRC regarding any amendments required to your return and prepare any amended returns that may be required.
      6. Advise as to possible claims and elections arising from the tax return and from information supplied by you. Where instructed by you, we will make such claims and elections in the form and manner required by the HMRC.
      7. Deal with all communications relating to your return addressed to us by the HMRC or passed to us by you. However, if the HMRC choose your return for enquiry this work may need to be the subject of a separate assignment in which case we will seek further instructions from you.

      Your Responsibilities – What you agree to do and be responsible for:

      1. Under the self-assessment regime there are a number of key dates by which returns and payments must be made. Failure to meet the deadlines may result in automatic penalties, surcharges and/or interest. You are responsible for making correct returns and for payment of tax on time.
      2. To enable us to carry out our work:
        • to make a full disclosure to us of all sources of income, charges, allowances and capital transactions and to provide full information as necessary for dealing with your affairs; we will rely on the information and documents being true, correct and complete;
        • to provide us with information in sufficient time for your tax return to be completed and submitted by 31st January following the end of the tax year. In order to meet this date, you agree to provide us with all the relevant information as soon as possible after the end of each tax year.
        • to forward to us on receipt copies of all HMRC statements of account, PAYE coding notices, notices of assessment, letters and other communications received from the HMRC to enable us to deal with them as may be necessary within the statutory time limits;
        • to keep us informed about any significant changes in your circumstances if they are likely to affect your tax position.
      3. You agree that we can approach such third parties as may be appropriate for information that we consider necessary to deal with your affairs;

      Other considerations

      Spouse

      Your spouse is legally responsible for his/her own tax affairs and should be dealt with independently. However, if both spouses sign this letter you agree that we can disclose to your spouse such details of your financial affairs as are required to consider your combined tax position.

      VALUE ADDED TAX (VAT) RETURN

      The purpose of the work is to assist you in your legal obligation to file VAT returns with HM Revenue & Customs.
      This schedule should be read in conjunction with the engagement letter and the terms and conditions of business.

      Our Responsibilities – What we agree to do and be responsible for:

      1. Prepare your VAT returns on the basis of the information and explanations supplied by you.
      2. Based on the information that you provide to us we will tell you how much you should pay and when. If appropriate we will initiate repayment claims where tax has been overpaid. We will advise on the interest and penalty implications if VAT is paid late.
      3. Where appropriate we will calculate the partial exemption annual adjustment.
      4. Forward to you the completed return calculations for you to review, before you approve the VAT return for onward transmission by us to HMRC.

      Your Responsibilities – What you agree to do and be responsible for:

      1. You are legally responsible for:
        • Ensuring that your returns are correct and complete;
        • Filing any returns by the due date; and
        • Making payment of tax on time.

          Please note:

        • 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 them.
      2. To enable us to carry out our work you agree:
        • That all returns are to be made on the basis of full disclosure;
        • 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 misdeclaration on which penalties and interest may arise;
        • That we can approach such third parties as may be appropriate for information we consider necessary to deal with the VAT returns;
        • To provide us with all the records relevant to the preparation of your VAT returns as soon as possible after the return period ends.
        • We would ordinarily need to receive the relevant VAT records within 12 days of the end of the VAT period for us to be able to complete our work. If the records are provided later or are incomplete or unclear thereby delaying the preparation and submission of the VAT return, we accept no responsibility for any “default surcharge” penalty that may arise. Where feasible we may agree to complete your return within a shorter period but may charge an additional fee for so doing.
      3. You will keep us informed of material changes in circumstances that could affect your VAT obligations. If you are unsure whether the change is material or not please let us know so that we can assess its significance.
      4. 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 has the authority to communicate with us when we are registered as your authorised agents, it is essential that you let us have copies of any correspondence received because HMRC is not obliged to send us copies of all communications issued to you.
      5. 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.
      6. 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.

      Other considerations

      Ad hoc and advisory work

      1. Where you have instructed us to do so, we will also provide such other taxation ad hoc and advisory services as may be agreed between us 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. Examples of such work include:
        • Reviewing and advising a suitable partial exemption method to use in preparing the return;
        • Dealing with all communications relating to your VAT returns addressed to us by HMRC or passed to us by you;
        • Making recommendations to you about the use of cash accounting, annual accounting, flat rate and other suitable methods of accounting for VAT; and
        • Providing you with advice on VAT as and when requested. Where the advice is provided in writing, the information provided and the query raised will be set out with our response to you
      2. Where specialist advice is required in certain areas we may need to seek this from or refer you to appropriate specialists
      3. Where you have instructed us to do so, we will also provide such other taxation advisory and ad hoc services as may be agreed between from time to time. These may be the subject of a separate engagement letter, at our option.

      Limitation of liabilities – Changes in the law

      1. We will not accept responsibility if you act on advice given by us on an earlier occasion without first confirming with us that the advice is still valid in the light of any change in the law or your circumstances.
      2. We will accept no liability for losses arising from changes in the law or the interpretation thereof that are first published after the date on which the advice is given

      MAKING TAX DIGITAL FOR VAT (MTDFV)

      Initial registration

      We will register you for MTD for VAT (MTDfV). By instructing us to sign up on your behalf you are agreeing to HMRC’s terms of participation. This may result in certain changes that may include changes to deadlines. You will need to complete HMRC’s sign-up process to enable submission of your tax return.

      Recurring compliance work

      We will prepare your MTD for VAT (MTDfV) returns on a monthly/ quarterly/annual basis.

      If we are engaged for bookkeeping services we will keep all records to meet the digital record-keeping requirements of MTDfV. You must ensure that the data provided to us is complete and accurate.

      We will not check digital records which you keep to meet the requirements of MTDfV and which you provide to us for preparation of the MTDfV returns. You may be required to provide us with your data digitally and we will tell you if/when that is the case. If your software is incompatible with ours we will agree with you an appropriate solution which might include the use of alternative third-party functionally compatible software and/or a spreadsheet(s) which satisfy the statutory requirement for digital linkage. Where your digital records are incompatible with our software we may require an additional fee. You must also provide us with confirmation that your digital records are complete and accurate.

      Based on the information that you provide to us, we will tell you how much VAT you should pay and when. If appropriate, we will initiate repayment claims where tax has been overpaid. We will advise on the interest and penalty implications if VAT is paid late.

      Where appropriate, we will calculate the partial exemption annual adjustment.

      Where appropriate, we will calculate the annual Capital Goods Scheme adjustment.

      We are not responsible for considering or applying for any of the exemptions from MTDfV. However, if you feel that you are eligible for exemption, please let us know. We are happy to discuss this and may correspond to HMRC on your behalf if needed, or we can guide you on whom you should contact for this.

      We will advise you of any relaxations applicable in relation to the digital records for supplies made and received. Where the requirements are impossible, impractical or unduly onerous we will seek to reach agreement with HMRC on a specific relaxation, but this may be subject to an additional fee.

      We will submit your MTDfV return data online to HMRC after the data to be included therein has been approved/on the basis of the data providedby you.

      We will agree with you any supplementary information to be submitted on a voluntary basis with the MTDfV returns prior to submission.

      Where you are invoice (accruals) accounting for income tax, we will perform an annual reconciliation of VAT outputs to accounting turnover.

      Ad hoc queries by way of telephone and email enquiries are not routine compliance and may result in additional fees. As indicated below, where appropriate we will aim to discuss and agree additional fees but it may not always be possible to agree these in advance and we reserve the right to charge you an additional fee for these queries. 

      Ad hoc and advisory services

      Where you have instructed us to do so, we will provide such other taxation ad hoc and advisory services as may be agreed between us from time to time. These services will be subject to our standard terms and conditions of business unless we decide to issue a separate engagement letter. An additional fee may be charged for these services.  Examples of such work include:

      1. advising on ad hoc transactions and queries (including telephone conversations), preparing and submitting information in the relevant format to HMRC and calculating any related tax liabilities
      2. reviewing and advising on a suitable partial exemption method to use in preparing the return
      3. dealing with all communications relating to your MTDfV returns Intrastat returns/EC sales list returns/MOSS returns addressed to us by HMRC or passed to us by you
      4. making recommendations to you about the use of cash accounting, annual accounting, flat rate and other suitable methods of accounting for VAT
      5. making recommendations to you about the use of VAT Mini One Stop Shop (MOSS) if you supply digital services to consumers in the EU
      6. providing you with advice on VAT excise duty/customs duty/landfill tax/insurance premium tax/aggregates levy/climate change levy as and when requested
      7. work required to rectify the position where your software is incompatible with our software.
      8. reviewing your record keeping processes and providing advice on potential improvements to enable compliance with the MTDfV requirements, including digital links for the transfer of data between different software.

      Where the advice is provided in writing, the information provided and the query raised will be set out with our response to you.

      Where specialist advice is required in certain areas, we may need to seek this from or refer you to appropriate specialists. We will only do this when instructed by you.

      Changes in the law or practice or in public policy

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

      We will accept no liability for losses arising from changes in the law or practice or in public policy that are first published after the date on which the advice is given. 

      Your Responsibilities

      You are legally responsible for:

      1. ensuring that your returns are correct and complete and in an appropriate digital format and capture the appropriate level of data
      2. ensuring your record keeping system is compliant with the new requirements for the digital recording and transfer of data
      3. filing any returns by the due date
      4. making payment of tax on time.

      Failure to do this may lead to automatic penalties, surcharges and/or interest.

      You cannot delegate this legal responsibility to others. You agree to check that returns that we have prepared for you are complete before approving them.

      Where we are keeping your digital records, you are responsible for providing us with the following information required for us to prepare the return:

      1. sales invoices
      2. purchase invoices
      3. bank statements
      4. details of bank and cash payments
      5. details of bank and cash receipts
      6. work-in-progress details
      7. access to your accounting records.

      We have also agreed that you will provide the following:

      1. a record of the amounts owed to the business
      2. a record of amounts owed by the business
      3. a list of accruals
      4. a list of prepayments
      5. private use adjustments.

      To enable us to carry out our work you agree:

      1. that all returns are to be made on the basis of full disclosure
      2. that you are responsible for ensuring that the information provided is, to the best of your knowledge, accurate and complete and that all digital links are in the manner proscribed. The returns are prepared solely on the basis of the information provided by you and we accept no responsibility for any liabilities arising due to inaccuracies, omissions or breakdowns in digital links concerning the information you provide, that may lead to a misdeclaration on which penalties and interest may arise
      3. to authorise us to approach such third parties as may be appropriate for information we consider necessary to deal with the returns
      4. to provide us with all the records relevant to the preparation of yourmonthly/quarterly/annual returns as soon as possible after the return period ends.  We would ordinarily need a minimum of 14 days before submission to complete our work. If the records are provided later or are incomplete or unclear, thereby delaying the preparation and submission of the return, we accept no responsibility for any penalty that may arise.  Where feasible, we may agree to complete your return within a shorter period but may charge an additional fee for so doing.
      5. to inform us that you have made the tax payment based on your calculated return.

      You will keep us informed of material changes in circumstances that could affect your obligations, for example:

      1. change in the nature of your business
      2. change in turnover
      3. change of type of supply for VAT
      4. change in your type of business entity such as from sole trader into partnership
      5. acquisition or disposal of land or property etc
      6. starting to make supplies which are exempt from VAT
      7. you have reclaimed VAT within the last 10 years, having spent over £250,000 in purchasing, building or redeveloping a property, and the extent to which it is being used for taxable and/or exempt purposes has changed since you first reclaimed the VAT (ie Capital Goods Scheme adjustments will apply to this or any other items that fall within the scope of the Capital Goods Scheme).

      Where you wish us to deal with HMRC communications, you will forward to us all communications received from HMRC such as statements of account, copies of notices of assessment and letters. These must be provided in time to enable us to deal with them as may be necessary within the statutory time limits. It is essential that you let us have copies of any correspondence received because HMRC is not obliged to send us copies of all communications issued to you.

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

      1. If you provide digital services to consumers in the EU and are over the registration limits you are responsible for either registering for VAT in that member state or registering for MOSS in the UK.
      2. If you are involved with any other business that 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 do not understand what you need to do, please ask us. 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.

      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.

      Our services as detailed above are subject to the limitations on our liability set out in the engagement letter and in our standard terms and conditions of business. These are important provisions, which you should read and consider carefully.

      CORONAVIRUS JOB RETENTION SCHEME (CJRS) CLAIM

      This schedule should be read in conjunction with the engagement letter, schedule of services for payroll and the standard terms and conditions.

      Initial registration

      1. We are already registered to act as agents for your payroll services. You have instructed us to submit a claim to the CJRS on your behalf. Our work is limited to assisting you in the submission of the claim.

      Recurring compliance work

      1. We will prepare your CJRS claim for returns on a weekly or monthly basis as agreed.
      2. The scheme is expected to run until the end of October 2020. If it is extended beyond this date, we will advise you of this change and will discuss with you the continuation of our services under this Schedule of Services.

      Record-keeping

      1. To be eligible for the grant, you must agree with your employees that they will be furloughed. You are then required to confirm this with them in writing. There needs to be a written record of the arrangement. A record of this communication must be kept for five years.
      2. We will not check nor confirm the records that you keep in order to meet the requirements of CJRS, nor those that you provide to us for preparation of the CJRS claim.
      3. We are not responsible for deciding which employees are furloughed and/or the period they are furloughed. In order to be entitled to the grant, an employee should be furloughed for at least three consecutive weeks.
      4. Based on the information that you provide to us, we will:
      • calculate the grant for gross pay for the furloughed employees
      • calculate the grant for employer’s national insurance contribution
      • calculate the grant for employer pension contribution
      • submit your CJRS return data online to HMRC on the basis of the data provided by you. Your attention is drawn to your legal obligations on paragraph 18.
      1. We will only deal with one nominated person within your organisation. The identity of this person should be notified to us in writing before we make any application to the CJRS.
      2. Any enquiries from individual employees concerning their furloughed wages or other payroll details will be referred back to that nominated person.
      3. If you wish to change the identity of the nominated person, this must be confirmed with us in writing.
      4. We assume no responsibility for losses or distress caused by miscommunication as to the identity of the nominated person.

      Ad hoc and advisory services

      1. Where you have instructed us to do so, we will provide such other taxation ad hoc and advisory services as may be agreed between us from time to time. These services will be subject to the terms of this engagement letter and standard terms and conditions of business unless we decide to issue a separate engagement letter. An additional fee may be charged for these services.

      Examples of such work include:

      • advising on ad hoc transactions and queries (including telephone conversations), preparing and submitting information in the relevant format to HMRC, and calculating any related tax liabilities
      • dealing with all communications relating to your CJRS returns addressed to us by HMRC or passed to us by you
      • reviewing your record-keeping processes and providing advice on potential improvements to enable full compliance with the CJRS requirements.
      1. Where our advice is provided in writing, the information provided and the query raised will be set out with our response to you.
      2. Ad hoc queries by way of telephone and email enquiries are not routine compliance and may result in additional fees. Where appropriate we will aim to discuss and agree additional fees; however, it may not always be possible to agree these in advance. We reserve the right to charge you an additional fee for these queries.
      3. Where specialist advice is required in certain area, ie employment law, we may need to seek this from, or refer you to, appropriate specialists. We will only do this when instructed by you.

      Changes in the law or practice or in public policy

      1. We will not accept responsibility if you act on advice given by us on an earlier occasion without first confirming with us that the advice is still valid in the light of any change in the law or practice or in public policy or your circumstances.
      2. We will accept no liability for losses arising from changes in the law or practice or in public policy that are first published after the date on which the advice is given.

      Your legal obligations

      1. You are legally responsible for:
      • ensuring compliance with the rules set up in the CJRS
      • ensuring that you send the confirmation in writing to your employee confirming that they have been furloughed
      • ensuring that furloughed employees have been asked to stop working for at least three consecutive weeks, and you are keeping them on your payroll
      • ensuring that the furloughed employee do not carry out any work while they are on a leave of absence. This includes providing services or generating revenue
      • ensuring that furloughed staff receive at least 80% of their regular wage/reference pay up to the monthly cap of £2,500. Deductions such as administration charges from this amount are not permitted
      • ensuring your record-keeping system is compliant with the CJRS requirements.
      1. Failure to do any of the points in clause 18 may lead to the clawing back of the grant, automatic penalties, surcharges and/or interest. We assume no liability for these penalties.
      2. You cannot delegate your legal responsibilities to others.
      3. To enable us to carry out our services, you agree:
      • to tell us about all employees who are furloughed in the claim period. This should include furloughed employees who are paid weekly, every two weeks and/or monthly. You accept that we will not be able to make another claim for the same claim period
      • that all returns are to be made on the basis of full disclosure
      • that you are responsible for ensuring that the information provided is, to the best of your knowledge, accurate and complete. The returns are prepared solely on the basis of the information provided by you and we accept no responsibility for any liabilities arising due to inaccuracies or omissions concerning the information you provide, which may lead to a misdeclaration and on which penalties and interest may arise
      • to authorise us to approach such third parties as may be appropriate for information we consider necessary to deal with the returns. In the event we pay third parties for their advice or other services, you agree to indemnify us for that cost
      • to provide us with all the complete records relevant to the preparation of your returns, including bank account details as soon as possible. We would ordinarily need a minimum of 3 days before submission to complete our work. If the records are provided later or are incomplete or unclear, thereby delaying the preparation and submission of the return, we accept no responsibility for any penalty or inability to claim under the CJRS that may arise. Where feasible, we may agree to complete your return within a shorter period but may charge an additional fee.
      • Where you wish us to deal with HMRC communications on your behalf, you will forward to us all communications received from HMRC such as statements of account, copies of notices of assessment and letters. These must be provided in time to enable us to deal with them as may be necessary within the statutory time limits. It is essential that you forward us copies of any correspondence received because HMRC is not obliged to send us copies of all communications issued to you.
      • You are responsible for bringing to our attention any errors, omissions or inaccuracies in your returns that you become aware of after the returns have been submitted in order that we may assist you to make a voluntary disclosure.

      Limitation of liability

      1. Our services as detailed above are subject to the limitations on our liability set out in our standard terms and conditions of business.

      PAYROLL AND RTI REPORTING

      The purpose of the payroll report, real time information (RTI) reporting and year-end returns is to assist you in preparing your UK payroll for each payroll period to meet UK employment tax requirements.

      This schedule should be read in conjunction with the engagement letter and the standard terms and conditions.

      Our Responsibilities – What we agree to do and be responsible for:

      1. We will prepare your UK or Ireland payroll for each payroll period to meet UK or Ireland 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;
        • where applicable, calculating the pension contributions (employer and employee); and
        • calculating other statutory and non statutory deductions.
      2. We will prepare and send to you the following documents for each payroll period at or before the time of payment:
        • a payroll summary report showing the reconciliation from gross to net for each employee and all relevant payroll totals. This summary will also show, where relevant, the other details that will be submitted online to HMRC on or before the employee payment dates;
        • 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, and
      3. We will prepare your Full Payment Submission (FPS) reports including all details required and based on the information provided by you. We will submit the FPS reports to HMRC prior to or at the time that employees are paid. Where you have no payments to make to HMRC in a particular month (or the payment you are making to HMRC has been reduced by statutory payments or construction industry scheme deductions suffered), we will prepare and submit the required Employer Payment Summary (EPS). If an error is made with regard to an earlier tax year, an Earlier Year Update (EYU) report may be required.
      4. At the time of your final payroll report (FPS or EPS) for each tax year, we will make the necessary declarations and indications to HMRC and liaise with you where any of the information is not available to us. We will subsequently send you form P60 for each employee on the payroll at the year-end.
      5. We will deal with and, where necessary, process any adjustments to your payroll communicated to us by HMRC (this may be, for example, updated tax codes and identified National Insurance numbers). Please let us know if you require a copy of such correspondence.

      Your Responsibilities – What you agree to do and be responsible for:

      1. You are legally responsible for the accuracy of these returns. You agree to provide us with complete and accurate information regarding your employees and payments due to them, whether or not tax is to be deducted. It is vital that we are provided with correct and accurate data for each employee before their first wages payment is made.
      2. Our payroll team will provide you with specific details of the information we require and when we need to have this information from you. You agree to provide the information they request. You recognise that where information is not provided to us within the timeframe we outline, we are not responsible for any delays for payments to employees or HM Revenue & Customs. Similarly, we are not responsible for any penalties imposed by HM Revenue & Customs.
      3. You will be responsible for managing any childcare scheme operated for the benefit of your employees and for contacting us where you require advice as to available exemption levels.
      4. You will be responsible for completing the checks on a new employee’s eligibility to live and work in the UK in accordance with the Government’s Code of Practice “Preventing Illegal Working” and section 8 of the Asylum and Immigration Act 1996.
      5. You will be responsible for monitoring the annual leave entitlement of your employees and dealing with all aspects, legal or otherwise, of being an employer. In particular, you will be responsible for ensuring that your workers are paid at least the National Minimum Wage.
      6. If you operate within the construction industry you agree to provide us with details of construction industry scheme (CIS) deductions suffered that you wish to offset against your PAYE payments to HMRC (company subcontractors only). This information must be received for each “tax month” and by the date in which the tax month ends. In addition, if you are a contractor within the construction industry but we are not providing services in regard to the operation of your CIS scheme, you agree to provide us with details of the CIS deductions you have withheld in each tax month, if you wish us to advise you of the total amount due to HMRC (CIS and PAYE taxes combined).
      7. As you are legally responsible for the accuracy of these returns, you must review the payroll summaries that we send to you and inform us if any of the information that we hold is incorrect:
        • If we don’t hear from you before the FPS (or EPS) submission date, we will take that as your approval for us to submit the return.

      If you require us to make a correction after the FPS (or EPS) has been submitted, you will let us know as soon as possible and, ideally, before the next payroll run.

      PAYROLL SERVICES – AUTO ENROLMENT (INITIAL SET UP)

      This schedule should be read in conjunction with the engagement letter and the standard terms and conditions.

      Our Responsibilities – What we agree to do and be responsible for:

      1. Using the data supplied by you we will identify those individuals who would qualify as a ‘worker’ for auto enrolment purposes and will produce a list of them. We will send you this list together with the definition of a ‘worker’ and, if required and requested, Pension Regulator guidance on how to assess workers’ earnings and if the worker is under a UK contract. You should review this definition for any individual not included on the payroll records and inform us of any changes.
      2. We will help you to establish which category each worker falls into, whether entitled worker, eligible jobholder or non-eligible jobholder.
      3. If required, we will prepare and send to you a notice to send to each non-eligible jobholder that sets out certain information about opting in to an automatic enrolment scheme and what this means for them. They do not need to be automatically enrolled but have the right to opt in. If the non-eligible jobholder chooses to opt in, you will enrol them onto the scheme on receipt of an opt-in notice. We will assist you in this process [delete if not required]. We will send information to the pension scheme about those non-eligible jobholders who choose to opt in.

      Your Responsibilities – What you agree to do and be responsible for

      1. You are responsible for establishing the staging date applicable for your payroll. You will advise us if you bring forward, postpone or otherwise delay any aspect of your staging. We will assist you in establishing the staging date that applies. This is the date that you, as an employer, must start to auto enrol your workers.You will choose a pension scheme that meets the automatic enrolment qualifying criteria and we recommend that you take appropriate independent advice. You can:
        • choose the existing scheme used by the business if it is an eligible scheme for auto enrolment
        • go through the National Employment Savings Trust (NEST); or
        • seek the advice of a financial adviser on a suitable pension scheme.
      2. You are responsible for providing the required statutory information to your workers.
      3. You will enrol all eligible jobholders into an eligible pension scheme on the appropriate date. We will assist you in this process. If required, we will prepare and send to you for distribution a notice for each eligible jobholder telling them that they have been or will be enrolled, and setting out what that means for them, and also detailing their right to opt out (and to opt back in again). We will send information about the eligible jobholders to the pension scheme. (For eligible jobholders who are already active members of a qualifying scheme, we will prepare a notice for you to send them giving them information about the scheme. This is the only action required for such members).

      PAYROLL SERVICES – AUTO ENROLMENT (PENSIONS CONTRIBUTIONS)

      Our Responsibilities – What we agree to do and be responsible for:

      1. Where applicable, a report showing your pension contributions so as to meet the requirements of the workplace pension automatic enrolment regime.
      2. Regarding the ongoing work on auto-enrolment on workplace pensions if applicable, whilst we accept no responsibility for errors or omissions that arise as a result of incorrect data supplied to us.
        • deduct from each payroll period the pension contributions as instructed by you;
        • pay over the pensions contributions deducted and your employer pension contributions to your pension provider;
        • maintain and preserve the records required for auto-enrolment based on the information you supply to us;
        • maintain information and records that will highlight when the triennial enrolment processes must occur. We will inform you in advance of this date so that you can make the necessary communications with the staff member and so that the firm can re-enroll as required;
        • assist you in monitoring the status of these employees to determine whether ‘non-eligible’ or ‘entitled workers’ become ‘eligible workers’ and thus require auto-enrolment. This review will take place at the start of each payroll period;
        • ensure that new staff are incorporated into the scheme in accordance with your instructions; and
        • process any opt-out and opt-in requests and ensure that repayments are made to employees in accordance with your instructions.

      Your Responsibilities – What you agree to do and be responsible for:

      1. Regarding auto-enrolment on workplace pensions if applicable, you will provide all new staff with the required auto-enrolment information. In addition you will provide us with complete and accurate information regarding:
        • your employees and pension contributions due from them;
        • details of your employer contributions;
        • information of all new staff, including their auto-enrolment status, before you first pay them;
        • if an employee changes their status regarding auto-enrolment, or details of any changes in employee working so that we can determine whether the employment status has changed in relation to auto-enrolment; and
        • the performance of spot-checks on the information that we hold in order to monitor its accuracy.
        • You must let us know, immediately and prior to the employee payment dates and HMRC reporting dates, if you believe any of the data shown in these documents is incorrect.

      BOOKKEEPING SERVICES

      Our Responsibilities – What we agree to do and be responsible for:

      We will prepare from the information and explanations provided by you, your books of prime entry as follows:

      1. Records of bank receipts and payments.
      2. Records of cash receipts and payments.
      3. Reconciliations of the bank and cash control accounts.
      4. A record of sales.
      5. A record of purchases.
      6. An analysis of expenditure.
      7. A reconciliation of the VAT account in accordance with the VAT scheme if applicable.
      8. A record of amounts owed to the business.
      9. A record of amounts owed by the business.
      10. A list of accruals.
      11. A list of prepayments.

      Your Responsibilities – What you agree to do and be responsible for:

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

      1. Sales invoices.
      2. Purchase invoices.
      3. Bank statements.
      4. Details of bank and cash payments.
      5. Details of bank and cash receipts.
      6. Stock and work-in-progress details.
      7. Access to your accounting records.
      8. A record of the amounts owed to the business.
      9. A record of the amounts owed by the business.
      10. A list of accruals.
      11. A list of prepayments.

      REGISTERED OFFICE SERVICE

      Our Responsibilities- What we agree to do and be responsible for:

      We will maintain the company’s register of people with significant interest from the information provided to us.

      With regard to the registered office facility we will only forward any documents addressed to the registered office within 5 working days to the either the address of the nominated person for the company or to another specified address.

      Your Responsibilities- What you agree to do and be responsible for:

      To enable us to carry out our work you agree:

      1. To provide full information necessary for compliance with the Register of People with Significant Control Regulations 2015.

      2. That we can approach any such third parties as may be appropriate for information that we consider necessary to deal with your affairs.