Tel: 01621 850000

Terms and Conditions

 

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LETTERS OF ENGAGEMENT FOR SOLE TRADER CLIENTS 

 

In accordance with the recommendations of our professional body, this letter confirms the basis on which we provide services to you so as to avoid any misunderstandings of our respective responsibilities.

 1.1 In all cases Accounting Plus UK : Your Accountants will be referred to as “we”, “us” and “our”

 1.2 In all cases the client will be referred to as “you”, “your”, “your company” and “director(s)”

1.3 We reserve the right to alter these terms and conditions at any time giving you 30 days notice.

Nature of services Commitment to you. 

 It is our intention to offer a service of excellence in relation to the needs and requirements of your company. We aim to ensure your company’s affairs are dealt with in an efficient and effective manner and will endeavour to ensure the processing of your accounting information is performed to the highest standards by continuing assessments of our policies and procedures. Reports will be issued in accordance with the terms set out below. We welcome feedback, and would actively encourage you to advise us where areas excel and where areas can be improved.

 

A. ANNUAL ACCOUNTS – SOLE TRADERS Your responsibility for the preparation of accounts 1. You have undertaken to make available to us, as and when required, all the accounting records and related financial information necessary for the compilation of the accounts. You will make full disclosure to us of all relevant information.

The accounts need to be approved by you before we are able to issue our report. 2. You are responsible for ensuring that, to the best of your knowledge and belief, financial information, whether used by the business or for the accounts, is reliable. You are also responsible for ensuring that the activities of the business are conducted honestly and that its assets are safeguarded, and for establishing arrangements designed to deter fraudulent or other dishonest conduct and to detect any that occur.

3. You are responsible for ensuring that the business complies with the laws and regulations applicable to its activities, and for establishing arrangements designed to prevent any non-compliance with laws and regulations and to detect any that occur.

 

Our responsibilities for the preparation of accounts

1. We will compile your annual accounts based on the accounting records [maintained by you] and the information and explanations given to us by you. We shall prepare draft annual accounts for your approval. A copy of the accounts shall be sent to you [monthly] [quarterly]

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 will use reasonable skill and care in the preparation of your accounts but will not be responsible for errors arising from incorrect information supplied by you.

4. We will report, with any variations that we consider may be necessary, that in accordance with your instructions and in order to assist you to fulfil your responsibilities, we have compiled, without carrying out an audit, the accounts from your accounting records and from the information and explanations supplied to us. 5. We have a professional duty to compile accounts which conform with generally accepted accounting principles. Where we identify that the accounts do not conform to accepted accounting principles, or if the accounting policies adopted are not immediately apparent, this will be made clear in our report, if it is not clear in the accounts.

 

Fees

Our fees are computed on the basis of time spent on your affairs and the responsibility and skill involved by the partners and staff of this firm It is our normal practice to advise a Fee for the year for agreed accountancy services as set out in our Letter of Appointment and request that clients make arrangements to pay their fees via monthly standing order. The standing order will be applied to fees for the current and ensuing years. Once you have agreed the fees based on the assessment of the amount of work and time involved we would be grateful if you would agree to pay an amount to us monthly no later than the 28th of each month (or earlier should commence of work be required before that time as we will be unable to commence work until the first payment has been made. There may be occasion where you require additional services which are not part of the services as agreed under the Letter of Appointment. This may occur if your business materially changes ie changes in trade, move to a Partnership arrangement, Selling the business, specific Tax advice (general tax advice relating to your current circumstances is already costed for) or other external forces which contribute to a change. Any of these areas may determine a reassessment of the time spent on your affairs. If the time spent will be in excess of the original estimates an additional cost will be incurred. Where there is no material change the costs will be absorbed and the original estimate will continue. As a matter of good practice we review the charging structure on an annual basis to ensure you receive the correct charges for the time taken on your affairs. Should amendments be required to the charging structure we will advise you accordingly. Should additional charges be incurred and an invoice raised in these circumstances our terms relating to payment of amounts invoiced and not covered by standing orders, where appropriate, are strictly 30 days net. Prompt payment discounts may only be taken if the payment is received by us within 14 days of the issue of any invoice. Interest will be charged on all overdue debts at the rate stated on the invoice, which is currently 7.4% (APR 14.8%) or, at the rate for the time being applicable under the Late Payment of Commercial Debts (Interest) Act 1998, whichever is the higher.

 

Anti money laundering legislation

All accountants must comply with onerous duties imposed by the Proceeds of Crime Act 2002, the Terrorism Act 2000 and the Money Laundering Regulations 2007 (the “Anti Money Laundering Legislation”, which became effective 15th December 2007)are intended to inhibit the activities of terrorists and other criminals by denying them access to technical expertise. If we fail to perform these duties, we risk imprisonment. Before we accept your instructions, we may need to obtain ‘satisfactory evidence’ to confirm your identity. In certain circumstances, we may need to obtain evidence confirming the identities of third parties, the source of any funds or other property, the purpose of any instructions or any other matter. We may also need to obtain such evidence after we have begun to act on your instructions. We assume that our clients are honest and law abiding. However, if at any time, there appears to be grounds to suspect (even if we do not actually suspect) that your instructions relate to ‘criminal property’, we are obliged to make a report to the National Criminal Intelligence Service (“NCIS”), but we are prohibited from telling you that we have done so. In such circumstances, we must not act on your instructions without consent from NCIS. If NCIS do not refuse consent within 7 working days we may continue to act. If NCIS issue a refusal within that time, we must not act for a further 31 days from the date of the refusal. ‘Criminal property’ is property in any legal form, whether money, real property, rights or any benefit derived from criminal activity. It does not matter who carried out the criminal activity or how removed the property is from the original crime. Even if you are honest in your dealings, if your property represents a benefit from someone else’s crime, we must still make a report. Activity is considered ‘criminal’ if it is a crime under UK law, no matter how trivial, and whether carried out in the UK or abroad. For example, tax evasion is a criminal offence but an honest mistake is not.

 

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. If the total sum of money held on your behalf exceeds £2,000 for a period of more than 2 months, or such sum is likely to be held for more than 2 months, then the money will be placed in an interest-bearing client bank account. All interest earned on such money will be paid to you. Subject to any tax legislation, interest will be paid gross. If there are grounds to suspect (even if we do not actually suspect) that any monies held in a client account is derived directly or indirectly from any criminal activity whatsoever, we may not release such monies until we receive permission to do so from NCIS.

 

Ownership of records and suspension of services

In the event of non-payment of invoices or non receipt of the monthly Standing Order for fees for services rendered which becomes month than 1 month in arrears we reserve the right to suspend all services to you including access to any internet connections or website service to you, we will also exercise a particular right of lien over the books and records in our possession and withhold the documents and services until such time as payment of our fees is received in full. We reseve the right to Terminate our agreement should payment not be received within 45 days of due date. (due date being either the invoice due date or the normal date of receipt of Standing Order) If we exercise our right to terminate we will exercise the right of lien over any books and records held whether manually or computerised until such time as all monies are received. In addition to this we will issue Legal action through the courts to recover all monies due. Once cleared funds are received the lien will be lifted by no later than 30days after date of cleared funds receipt. A reconnection fee of £100 plus VAT may be charged. We accept no responsilbilty for Penalties, surcharges or any other fines imposed due to the suspension and reconnection of services due to non payment.

 

Termination of contract

Both parties are entitled to terminate this agreement at any time giving 1 months notice in writing. In some circumstances a termination charge may be incurred for all administration work in closing down your account. In the event of your owing fees to us will reserve the right to hold all records and information until full payment is made. In the event of a termination and subject to the above terms we will provide all records complete to the specified date of termination.

 

File destruction

Whilst certain documents may legally belong to you, unless you tell us not to, we intend to destroy correspondence and other papers that we store which are more than seven years old, other than documents which we think may be of continuing significance. If you require the retention of any document, you must notify us of that fact in writing.

 

Ethical guidelines

We will observe the ethical guidelines and accept instructions to act for you on the basis that we will act in accordance with those guidelines.

 

Customer service

We are committed to providing a high standard of customer service. We would welcome any ideas as to how our service to you could be improved, or if you are dissatisfied with the service you are receiving, please let us know. In the event that you have a complaint, please advise us immediately we will look into this carefully and promptly and do all we can to explain the position to you or address your concerns. All complaints will be dealt with within 7 working days.

 

Third parties

All accounts, statements and reports prepared by us are for your exclusive use within your business or to meet specific statutory responsibilities. No third party shall acquire any rights pursuant to our agreement to provide professional services.

 

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 party irrevocably waives any right it may have 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. Disclaimer We will not be liable for any loss suffered by you or any third party as a result of our compliance with the Anti Money Laundering Legislation or any UK law or at all.

 

Privacy Statement

 All information and records held by us will be treated as and kept confidential at all times unless instructed otherwise by you. Under the United Kingdom, data protection regime you are entitled to request details of personal information we hold on you. For this we will charge you £10 for each such request.

 

Limitation 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 to.We will provide the professional services outlined in the terms with reasonable care and skill. 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 or your inability to use the services offered. E-mail will be used to enable us to communicate with you. As with 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 and privacy and security procedures on any attachments received. Although we take up most care to ensure that viruses do not spread through the use of our accounting software, website or email, we cannot guarantee 100% security.

 

Agreement of terms

Once agreed, this letter will remain effective from the date of signature until it is replaced. Either party may vary or terminate our authority to act on your behalf at any time without penalty.

To termnate this agreement 30 days must be given in writing of Notice of termination. 

 

LETTERS OF ENGAGEMENT FOR SOLE TRADERS/INCORPORATED COMPANIES – APPENDIX NATURE OF SERVICES A. ANNUAL ACCOUNTS – SOLE TRADERS/PARTNERSHIPS (SEE ABOVE) B. PERSONAL TAX – INDIVIDUALS/SOLE TRADERS/PARTNERS C. PAYROLL PREPARATION, P.A.Y.E. AND N.I. RETURNS D. VAT RETURNS E. MANAGEMENT ACCOUNTS F. MAINTAINING ACCOUNTING RECORDS

 

B. PERSONAL TAX – INDIVIDUALS AND SOLE TRADERS [Your spouse is legally responsible for [his/her] own tax affairs and should be dealt with independently. We can act for both of you if you so wish. Your details will not be disclosed to your husband, spouse partner or any other Third Party without your express consent. 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. (a) We shall be pleased to act as your personal tax advisers in the UK with effect from .................and in accordance with Payments Terms as agreed (b) We will prepare your personal income tax and capital gains tax return together with all supporting schedules and prepare your self-assessment of tax and Class 4 National Insurance contributions. (c) We will forward to you your tax return form with tax computations and supporting schedules for your approval and signature. Once the return has been approved and signed by you and returned to us, we will submit to the Inland Revenue. You authorise us to file as your Agent the return electronically under the Inland Revenue Electronic Lodgement Service. (d) We will advise you as to amounts of tax and National Insurance contributions to be paid and the dates by which you should make the payments, including payments on account and the balancing payment, and if appropriate we will initiate repayment claims when tax and national insurance contributions appears to have been overpaid. (e) We will deal with the Inland Revenue regarding any amendments required to your return and prepare any amended returns which may be required. If the amendments are of a consequence of details not being forwarded to us by you when the first Return was prepared and submitted a charge will be made to re-file the Tax Return. (f) We will advise as to claims and elections arising from the tax return and from information supplied by you and, where instructed by you, we will make such claims and elections in the form and manner required by the Inland Revenue. (g) You have asked us to undertake all correspondence with the Inland Revenue on your behalf. We will register to act as your Agent and as such all documents will be sent to us. However to avoid any problems would you please send to us any forms or correspondence received from the Inland Revenue as soon as you receive them. In particular would you please ensure that no payments are made to the Inland Revenue without our confirmation that the demands are correct. (h) The Inland Revenue has powers to charge both interest and penalties if there is a delay in submitting a tax return. Such charges are automatic if the tax return is submitted after 31st January following the end of the tax year, or if any payments are made after the respective due dates. (i) It is therefore important that all details required for the preparation of your tax return are forwarded to us as soon as possible after 5th April each year and by 30th June at the latest. If the information is received after that date, we will not accept responsibility for any penalties or surcharges charged by the Inland Revenue. (j) The Inland Revenue audits a number of tax returns each year, many of these audits are the result of a random selection. Assistance in respect of such an audit beyond the answering of straightforward queries regarding entries on the tax return is additional work and will result in separate charges. We will keep you fully informed before undertaking any extra work in respect of such an audit. (k) We will provide our professional services outlined in this letter with reasonable care and skill. 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 your or others’ failure to supply any appropriate information or your failure to act on our advice or respond promptly to communications from us or the tax authorities. (l) You agree that we can approach such third parties as may be appropriate for information that we consider necessary to deal with your affairs. (m) We will submit form 64-8 to the Inland Revenue, which authorises the Inland Revenue to send us copies of formal notices. You will receive an authorisation code sent directly to you please forward this so we register to act on your behalf. If this authorisation code is not forwarded to us we cannot act on your behalf and cannot accept responsibility for any Penalties or Surcharges issued because of this. In practice, the Inland Revenue will treat this as authority to correspond with us, in which case they will not correspond with you except to the extent that they are formally required to do so. However, this authority does not apply to all Inland Revenue correspondence, and even where it does, the Inland Revenue sometimes overlook it. You should therefore always send us the originals or copies of all communications you receive from the Inland Revenue. Or (a) If you have not asked us not to become involved in your tax affairs with regard to income tax. Should you require it we can offer advice on the operation of all aspects of personal tax. (b) We will be pleased to advise on any other taxation matters referred to us and would strongly encourage you to approach us before entering into any complex or unusual transactions in order that we can assess their tax implications.

 

ACCOUNTS INCORPORATED COMPANIES Responsibilities of Directors As director of the company, under paragraphs (171-177) of the Companies Act 2006 you are responsible for the principles, rules and standards which govern the way Directors operate and by reference to which their performance is judged. In addition to ensuring that the company maintains proper accounting records and for preparing accounts as set out in the Act, You are required to keep records of sales invoices, purchase invoices, receipts and payments, together with any other documents relating to the company’s transactions and activities. It will also be necessary for you to provide a record of stock at the company’s year end. A private company is required to file its accounts at Companies House within 10 months of the year end. The company will be liable to a fine if it fails to do so. In order to avoid this we will produce statutory accounts, suitable for filing, within the required period, provided all your records are complete and presented to us within three months of the year end, and all subsequent queries are promptly and satisfactorily answered within four months of the year end. Where we have agreed to act as your agent and to: (a) submit the accounts to the Registrar of Companies; (b) complete and submit the company’s annual return and any changes to incorporated status ie change of address and Directors (c) complete and submit the Corporation Tax CT600 (d) complete and submit any other forms required by law to be filed at Companies House, provided that you keep us fully informed of any relevant changes or events which are required to be notified to Companies House, within one week of the change or event; and (d) maintain the statutory books. Or If you have agreed to complete all the returns required by law, for example, the annual return and the notification of changes in directors. We cannot be held responsible for any fines, penalties or surcharges levied. We shall, of course, be pleased to advise you on these and any other company secretarial matters if requested. Responsibility of the accountants In relation to the accounts, we will prepare the company’s accounts on the basis of the information that is provided to us. We will also draft the accounts in accordance with the provisions of the Companies Act, and related Accounting Standards for approval by the Board. Should our work lead us to conclude that the company is not entitled to exemption from an audit of the accounts, or should we be unable to reach a conclusion on this matter, then we will advise you of this. Should your company not be exempt from audit we can appoint our audit firm to act for you in this matter. If this is the case you will become the client of the audit firm for audit purposes only. All other matters as described in the Letter of Engagement will be dealt through us as your agent.

 

A. INCORPOARTED COMPANY Continued:

Where you require your employees to prepare the book keeping entries and where you have instructed us to prepare your financial statements for the year(s) ended …………… and subsequent years. It is agreed that we should carry out the following accounting and other services:

(a) write up the accounting records of the company insofar as they are incomplete when presented to us;

 (b) complete the postings to the nominal ledger; and

 (c) prepare the accounts for approval by yourselves.

You have agreed that you or your staff will:

(a) keep the records of receipts and balances;

(b) reconcile the balances monthly with the bank statements;

 (c) post and balance the purchase and sales ledgers;

 (d) extract a detailed list of ledger balances; and

(e) prepare details of the annual stocktaking, suitably priced and extended in a form which will enable us to verify the prices readily by reference to suppliers’ invoices. Or

(f) provide us with a copy of the valuation produced by your independent stocktakers. And

 (g) prepare details of work-in-progress at the accounting date and make available to us the documents and other information from which the statement is compiled. You/your management are responsible for the detection of irregularities and fraud. We would emphasise that we cannot undertake to discover any shortcomings in your systems or any irregularities on the part of your employees or others, although we will advise you of any such circumstances that we encounter in preparing your accounts, unless prohibited from doing so by the Anti Money Laundering Legislation. We will report, with any variations that we consider may be necessary, that in accordance with your instructions and in order to assist you to fulfil your responsibilities, we have compiled, without carrying out an audit, the accounts from your accounting records and from the information and explanations supplied to us. We have a professional duty to compile accounts which conform with generally accepted accounting principles.

Furthermore, the accounts of a limited company are required to comply with the Companies Act 2006 and applicable accounting standards. Where we identify that the accounts do not conform to accepted accounting principles, or if the accounting policies adopted are not immediately apparent, this will be made clear in our report, if it is not clear in the accounts. Book keeping prepared and maintained by us. Where we have agreed to act on your behalf and maintain the book keeping process we will apply generally accepted accounting principles to all transactions. Furthermore, the accounts of a limited company are required to comply with the Companies Act 2006 and applicable accounting standards. Where we identify that the accounts do not conform to accepted accounting principles, or if the accounting policies adopted are not immediately apparent, this will be made clear in our report, if it is not clear in the accounts. You are responsible to ensure all accounts are advised to us in a timely manner and to ensure that all accounts relate to the company for which we are agents.

 

B. CORPORATION TAX

Where you have instructed us to act as your agent we will prepare, in respect of each accounting period of the company, a computation for corporation tax purposes adjusted in accordance with the provisions of the Taxes Acts. We will also prepare the corporation tax return (form CT600) required under the Corporation Tax Self Assessment regulations. The corporation tax return, together with the supporting corporation tax computations, will be sent to you for approval and signature prior to submission to the Inspector of Taxes. It should be recognised that in law a taxpayer cannot contract out of his fiscal responsibilities and that computations and return forms are prepared by us as agent for the company. You are legally responsible for making correct returns and for payment of tax on time. If we ask you for information to complete the tax return and it is not provided within the time-scale requested, so that the preparation and submission of the return are delayed, we accept no responsibility for any penalty or interest that may arise. We will advise you of the corporation tax payments to which the company will be liable, together with the due date of payment. You must inform us immediately if the company pays or receives any interest or makes any other payment, or transfers any asset to any shareholders, Directors or employees. Where necessary we will deal with any queries raised by the Inspector of Taxes and negotiate with the Revenue on any question of taxation interest or penalties which may arise. Any queries which may subsequently instigate a Tax investigation are not covered in the price quoted in the Appointment letter and additional fees would be charged under these circumstances. To enable us to carry out our work you agree:

(a) to make a full disclosure to us of all sources of income, charges, allowances and capital transactions and 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;

(b) to respond quickly and fully to our requests for information and to other communications from us;

(c) to provide us with information in sufficient time for the company’s self-assessment tax return to be completed and submitted by the due date. In order to do this, we need to receive all relevant information by 3 months after the end of each accounting year ; and

(d) to forward to us on receipt copies of all statements of account, 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. You agree that we can approach such third parties as may be appropriate for information that we consider necessary to deal with your affairs and undertake to authorise such third parties to communicate directly with us.

 B. Continued

We will submit form 64-8 to the Inland Revenue, which authorises the Inland Revenue to send us copies of formal notices. In practice, the Inland Revenue will treat this as authority to correspond with us, in which case they will not correspond with you except to the extent that they are formally required to do so. However, this authority does not apply to all Inland Revenue correspondence, and even where it does, the Inland Revenue sometimes overlook it. You should therefore always send us the originals or copies of all communications you receive from the Inland Revenue. Or If you have not asked us to become involved in your tax affairs with regard to corporation tax we can offer advice on all aspects of corporation tax, should you so require. This advice is not covered in the general taxation advice given as is a specialist area and fees would be charged for advice given. We will be pleased to advise on any other taxation matters that may be referred to us and would strongly encourage you to approach us before entering into any complex or unusual transactions in order that we can assess their tax implications.

We offer a free no oligation meeting.

 

Fixed price fees payable over 12 months.

Tel 01621 850000 Fax: 01621 841514 email Stephanie@acplusuk.com or visit us at : Office 12, The Bentalls Centre, Colchester Road, Heybridge, Maldon CM9 4GD or go to the enquiries page

 

 

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