This
letter sets out the basis on which we act as your tax agent and advisor.
This engagement will commence with your Tax Return for the year to
5 April 2008.
Our
Services to You
We will
prepare the accounts of your business and the income tax computations
based thereon from your accounting records and other information and
explanations provided by you. We will not carry out an audit of those
records.
We will prepare your Personal Self Assessment Tax Return together
with such supporting schedules as are appropriate and we will prepare
your Self Assessment of Tax and Class 4 National Insurance Contributions.
We will send your Tax Return and business accounts for your approval
and signature. We will then submit the Tax Return to the Inland Revenue.
We will tell you how much Tax and National Insurance Contributions
you should pay and when. If appropriate, we will initiate repayment
claims when tax has been overpaid.
We will deal with the Inland Revenue regarding any amendments required
to your Tax Return and prepare any amended Tax Returns, which may
be required.
We will advise as to any 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 Inland Revenue. We will not however be responsible for making
any claim on your behalf to any Tax Credit Reliefs.
We will deal with all communications relating to your Tax Return addressed
to us by the Inland Revenue or passed to us by you. However, if the
Inland Revenue choose your Tax Return for enquiry, this work may need
to be the subject of a separate assignment/fee note and we would refer
you to the section below relating to fees.
Your
Responsibilities: Provision of Information by You
You
are legally responsible for making correct returns by the due date
and for payment of tax on time. Failure to meet the deadlines may
result in automatic penalties, surcharges and/or interest.
To
enable us to carry out our work your agree:
a) That
all Returns are to be made on the basis of full disclosure of 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 of those documents;
c) That we can approach such third parties as may be appropriate for
information that we consider necessary to deal with your affairs;
d) To provide us with information in sufficient time for your Tax
Return to be completed and submitted by the due date of 31 January
following the end of the tax year. In order that we can do this, we
need to receive all relevant information by 31 October following the
end of the tax year.
e) To forward to us on receipt, copies of all Inland Revenue Statements
of Account, PAYE coding notices, notices of assessment, letters and
other communications received from the Inland Revenue to enable us
to deal with them as may be necessary within the statutory time limits.
f) To keep us informed about changes in your circumstances if they
are likely to effect your tax position.
g) To advise us immediately about any theft of stock/cash or assets
from the business.
h) To provide full disclosure to us of all assets/monies introduced
into the business together with satisfactory evidence of the source
of any such introductions.
Other
Services and General Tax Advice
We will
be pleased to assist you generally in tax matters if you so require.
To enable us to do this you need to instruct us in good time.
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. It is our policy to confirm
in writing advice upon you may wish to rely.
We will be pleased to advise on any of the following tax matters if
so requested and these will be the subject of a separate engagement:
- Pay
As You Earn including year end returns and matters relating to your
employees;
- Forms
P11D;
- Obligations
under IR35;
- Returns
for sub-contractors;
- VAT
Returns;
- Inheritance
tax
Professional
Rules and Practice Guidelines
We will
observe the by-laws, regulations and ethical guidelines of the Institute
of Chartered Accountants in England and Wales and accept instructions
to act for you on the basis that we will act in accordance with those
guidelines. In particular, you give us authority to correct Inland
Revenue errors. A copy of these guidelines is available for your inspection
in our offices.
Client
Monies
We may,
from time to time, hold money on your behalf. Such money will be held
in trust in a client bank account, which is segregated from the firm's
funds.
Retention
of Records
During
the course of our work we will collect information from you and others
acting on your behalf and will return any original documents to you
(or notify you to collect them from us) following preparation of your
accounts and Tax Return, subject to our fees for any such work having
been paid accordingly. You should retain them for 7 years following
the end of the tax year. This period may be extended if the Inland
Revenue enquire into your Tax Return.
Should for any reason, eg. cessation of business, any records be held
in storage for a period longer than 3 months from final instruction
and due notification from ourselves relating to collection of records,
we reserve the right to make a charge on an annual/pro rata basis
of £50 plus VAT for storage in archive.
Quality
of Service
We aim
to provide a high quality 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 you are receiving please let us know.
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 Institute of Chartered Accountants in England and Wales.
Fees
Our
charges are computed on the basis of fees for the time spent in your
affair (which depends on the levels of skill and responsibility involved)
and disbursements incurred in connection with the engagement. Work
outside the scope of this engagement may be subject to additional
fees, however, we will always endeavour, where possible, to provide
a quotation for any additional work for the avoidance of any dispute.
This engagement covers normal routine accountancy based services.
In the case of any enquiry based work e.g in relation to any Inland
Revenue/Customs & Excise/PAYE enquiries, this work would always
generally be considered to be outside the scope of "normal routine
accountancy based services". We are able to offer all clients
the opportunity to protect against additional fees pertaining to such
enquiry work under the auspices of our Fee Protection Scheme, full
details of which have been/will be provided to you under separate
cover.
All work undertaken will be subject to VAT at the prevailing rate
and tax invoices will be issued at the appropriate times.
Our invoices are payable on presentation. We reserve the right to
charge interest as per conditions shown on our invoices in the case
of overdue accounts. We may terminate our engagement and cease acting
if payment of any fees billed is unduly delayed. However, it is not
our intention to use these arrangements in a way which is unfair or
unreasonable.
Limitations
of Liability
The
advice which we give to you is for your sole use and does not constitute
advice to any third party to whom you may communicate it.
We will provide the professional services outlined in this letter
with due care and diligence. However, we will not be responsible for
any losses, penalties, surcharges, interest or additional tax liabilities
arising from the supply by you or others of incorrect or incomplete
information, or from the failure by you or others to supply any appropriate
information or your failure to act on our advice or respond promptly
to communications from us or the tax authorities.
E-mail may be used to enable us to communicate with you. As will other
means of delivery this carries with it the risk of inadvertent misdirection
or non-delivery. It is the responsibility of the recipient to carry
out a virus check on any attachments received.
Electronic
Communication
As
Internet communications are capable of data corruption we do not accept
any responsibility for charges made to such communications after their
dispatch. For this reason it may be inappropriate to rely on advice
contained in an e-mail without obtaining written confirmation of it.
All risks connected with sending commercially sensitive information
relating to your business are borne by you and are not our responsibility.
If you do not accept this risk, you should notify us in writing that
e-mail is not an acceptable means of communication.
Applicable
Law
This
engagement letter is governed by and construed in accordance with
English law. 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 part irrevocably waives
any right it may have to object to any action being brought in those
courts, to claim that that action has been brought in an appropriate
forum, or to claim that those courts do not have jurisdiction.
In common with all accountancy and legal practices, the firm is required
by the Proceeds of Crime Act 2002 and the Money Laundering Regulations
2003 to:
-
Maintain identification procedures for all new clients;
- Maintain
records of identification evidence;
Report-in
accordance with the relevant legislation and regulations-to the National
Criminal Intelligence Service.
Data
Protection
To enable
us to discharge the services agreed under this engagement, and for
other related purposes including updating and enhancing client records,
analysis for management purposes and statutory returns, crime prevention
and legal and regulatory compliance, we may obtain, use, process and
disclose personal data about you. You have a right of access, under
data protection legislation, to the personal data that we hold about
you. For the purposes of the Data Protection Act 1998, the Data Controller
in relation to personal data supplied about you is Gwen Brookes.
Agreement
Of Terms
In due
course we will require you to confirm your acceptance of these Terms
& Conditions, in writing, before we are able to act on your behalf.
This letter of acceptance will supersede any previous engagement letter
for the period concerned. Once agreed the letter will remain effective
from the date of signature until it is replaced. You or we may vary
or terminate our authority to act on your behalf at any time without
penalty. Notice of variation or termination must be given in writing.
