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0203 318 3024

info@123contracting.co.uk

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Join The 123 Way

Client Engagement - Terms & Conditions

Join The 123 Way

Client Engagement T&C

The purpose of this page is to set out the basis on which we are to act and to clarify our respective responsibilities.

An engagement letter is a legal document that all accountants provide their clients with - if we ever update our engagement we will let all clients know by email.

A. Professional obligations

Where you give us confidential information we shall at all times keep it confidential, except as required by law or as provided for in regulatory, ethical or other professional pronouncements applicable to this engagement.
We reserve the right to act during this engagement for other clients whose interests may be adverse to yours. We will notify you immediately should we become aware of any conflict of interest to which we are subject in relation to you.

B. Role as Advisors

This section of the letter is to set out the basis on which we have agreed to act as business advisors in our role as your accountants. In this role we will offer advice on the business which the director will be free to accept or ignore as they wish. In providing such advice, we shall be acting in a customary professional capacity, not an executive one.
We will provide our professional services outlined in this section of our 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 or other authorities.

1 Accounting

As directors you are responsible for maintaining proper accounting records and for the preparation of the accounts which satisfy the requirements of the Companies Acts. In providing the following accounting assistance we shall be acting on behalf of the directors.

1.1 We understand that you require us to prepare your annual financial statements. It was agreed that we should carry out the following accounting and other services:

(a) prepare the trial balance from bookkeeping records provided by you
(b) prepare the accounts for approval by yourselves.

1.2 We understand that you have agreed to:

(a) provide us on a monthly basis with your expenses and sales detailed on our spreadsheet based bookkeeping software, that we will provide you with.

2 Corporation tax

2.1 We will prepare from the accounts and other information and explanations provided by you the company’s corporation tax return and computations, together with all supporting schedules.

2.2 We will send you the tax return and supporting schedules for you to approve and sign. We will then submit it, with the accounts and computations, to HM Revenue & Customs.

2.3 We will advise you of the amounts of corporation tax to be paid and the dates by which the company should make the payments. Where appropriate we will initiate repayment claims when tax has been overpaid.

2.4 We will deal with all communications relating to the company’s tax return addressed to us by HM Revenue & Customs or passed to us by the company. However, if HM Revenue & Customs 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.

2.5 We will prepare the tax provisions and disclosures to be included in the company’s statutory accounts.
Dividends, payments under deduction of tax and to participators

2.6 Where the company has made a loan to a participator such as a shareholder, tax is payable. We can be responsible for advising you of the tax payable only if you notify us of details of such loans before the end of the relevant accounting period.

Your Responsibilities: Provision of Information by You

2.7 The company is 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 and/or interest.

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

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

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

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

(d) to provide us with information in sufficient time for the company's tax returns to be completed and submitted by the due date following the end of the accounting period. In order that we can do this, we need to receive all relevant information within two months of the year end;

(e) to forward to us on receipt copies of notices of assessment, letters and other communications received from HM Revenue & Customs to enable us to deal with them as may be necessary within the statutory time limits; and

(f) to keep us informed about significant transactions or changes in circumstances.

2.9 We will be pleased to assist the company generally in tax matters, including VAT, 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.

2.10 It is our policy to confirm in writing advice upon which the company may wish to rely.

2.11 We will be pleased also to advise the directors and executives on their personal income tax and capital tax affairs.

2.12 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.

3 Payroll and year end returns

3.1 With effect from the date of sign up we will maintain your payroll records, supply you with completed annual salary information, complete your year end return form P35 with forms P14 and P60 and supply you with the completed form P35 for signature and submission by you to HM Revenue & Customs with forms P14 and the forms P60 that you will retain.

3.2 In order to do this we need to comply with the Employer’s Guide to PAYE: we will consider with you the detailed information that is required and the form in which it is to be provided.

3.3 Sections 11 and 12 of the Data Protection Act 1998 place express obligations on you as a data controller where we as a data processor undertake the processing of personal data on your behalf. We therefore confirm that we will at all times comply with the requirements of the Data Protection Act 1998 when processing data on your behalf. In particular we confirm that we have adequate security measures in place and that we will comply with any obligations equivalent to those placed on you as a data controller.

3.4 If you take on employees 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.

3.5 We will complete forms P11D for higher-paid employees for approval and submission by you to HM Revenue & Customs. You will supply the form P11D information to your employees by the due date.

3.6 You agree to supply us with complete and accurate details of all benefits and expenses for the tax year (not the accounts year) within 14 days of the end of the tax year.

4 Value Added Tax (VAT)

4.1 If you are required to register for VAT we will undertake the completion of your VAT returns. We cannot be held responsible for any penalties or default surcharges arising from the late submission of VAT returns. However, we will endeavour to meet the relevant deadlines if we receive all the company’s VAT records within 7 days of the end of the VAT return period. You have undertaken that you/your staff will ensure that:

(a) all relevant VAT records are forwarded to us within 7 days of the end of the VAT return period;

(b) valid VAT invoices are received for all payments where VAT is being reclaimed;

(c) the VAT rating of supplies is correctly dealt with, i.e., between positive and zero rates and exempt supplies;

(d) we are notified in writing of any positive-rated own consumption;

(e) any input VAT on non-business expenditure is clearly marked on supporting invoices;

(f) we are notified each quarter of any payments to or for the benefit of directors or staff for fuel used for private mileage, together with the business mileage for each such person, for each quarter;

(g) all supplies made by the business are shown in the records made available to us.

C. General Terms and Conditions of Business

This section sets out our general terms and conditions of business in respect of the services provided by 123 Contracting to you. All work is undertaken subject to these general terms and conditions except where changes are expressly agreed in writing.

5 Fees

5.1 Our fees are computed on the basis of a monthly set amount. These fees are reviewed on a regular basis and are subject to revision at least yearly. In the absence of any request for information it is assumed that our charges will be accepted as computed in our normal manner.

5.2 If it is necessary to carry out work outside the responsibilities outlined in this Client Engagement it will involve additional fees. Accordingly we would like to point out that it is in your interest to ensure that your records etc., are completed to the agreed stage and that you recognise that any additional matters you request us to undertake may be subject to additional charges. All additional charges will be confirmed with you before any additional work is undertaken.

5.3 Unless otherwise agreed, our fees will be billed at monthly intervals during the course of the year and, subject to the paragraph below, are payable in full before any report is signed or accounts or returns are made available.

5.4 It is our normal practice to request that clients make arrangements to pay their fee on a monthly standing order. These standing orders will be applied to work agreed in this Client Engagement; any other work undertaken on your behalf, for the current and ensuing years outside of this engagement will incur additional fees.

Client Engagement - page 2

About us

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Limited Company Accounts

Being a Sole Trader

Tax Return

Business Structure Review

Business Banking

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