The
purpose of this engagement T&C is
to set out the basis upon which you have instructed us in connection with your
affairs.
Accountancy services
We
agree to finalize the accounts from your accounting records and draft accounts
prepared by you and from the information supplied to us either directly by you
or under your authority.
As
members of the Institute of Financial Accountants, we are able to prepare and
sign the final accounts for sole traders, partnerships and companies below the
statutory audit limit.
We
will examine the records and make such inquiries as we consider necessary to
enable us to prepare the accounts for you but will not be performing an audit.
If
your board of directors has not already agreed and documented minutes regarding
a decision not to have an audit, it should do so without delay, and copy of the
relevant minute should be sent to us for our records.
Other services
We
are able to offer a range of supplementary accountancy services, such as
investigating irregularities for suspected fraud and these can be performed
upon our receiving specific instructions from you. We understand people’s needs
vary and are happy to tailor our services to your specific identified
requirements.
As
to the specific tasks to be performed, you agree that:
- You
will be responsible for bookkeeping i.e the records of receipts
and payments;
- You
will be responsible for reconciling
the balances of monthly bank statements;
- You
will be responsible for keeping posted and balanced the purchase
and sales ledgers and the nominal ledger regularly;
- You
will be responsible for preparing a detailed list of ledger
balances regularly and at the end of the year;
- You
will be responsible for preparing details of the annual year-end
stocktaking suitably priced and extended;
- We will
be responsible for calculating and submitting the PAYE tax liability returns for your employees;
- You
will be responsible for Pension Auto Enrolment compliance
- You will be responsible for
preparing and submission of your VAT returns, we are happy to provide any
guidance on vat matters;
- You will be responsible for
assistance and advice on your computer business software;
- You will be responsible for
reviewing your budgets and budgetary controls
You will be responsible for
reviewing and advising on costing.
Should
you require further or different services we would be happy to supply them on
request. These include preparing accounting reports in support of claims, (e.g.
for insurance company certificates or for grants) or about your business (or an
aspect of your business) or about a business you hope to acquire, management
accounting and business advice. In the event that you would like us to
undertake such work for you we will send you a further letter setting out the
basis of our instructions.
Revenue tax returns
You
will appreciate that the responsibility for the prevention and detection of
irregularities rests with you, and our examination of the accounting records
should not be relied upon to disclose irregularities that may exist. We shall discuss
the accounts with you prior to their finalization and after any adjustments
arising from these discussions are made, we shall ask you to approve the
accounts by asking you to sign the following statement that will be
incorporated into the accounts:
“I
approve these accounts and confirm that I have made available all relevant
records and information for their preparation”.
We
shall send you a questionnaire each April which we hope you will find helpful
in collating the material which you will need to send to us. You may find it
helpful to arrange with your bank, building society, and broker for them to
send the information directly to us on a regular basis and we shall be pleased
to help establish such arrangements.
The
return will be sent to you to review and sign before it is submitted to the HM Revenue
& Customs on your behalf. It is essential that the return is
carefully reviewed by you to check that no source of income or gain has been
inadvertently omitted, since the accuracy of the return remains your legal
responsibility.
We
will also advise you of your tax position for the year and the likely payment
date of liabilities.
The
late submission of a tax return, as well as the omission of a source of income
or gain, will give rise to a penalty. We therefore recommend that tax returns
are submitted ideally by 30 September, and certainly no later than 1st January
following the tax year.
To
meet that timetable materials should reach us as soon as possible after 5th
April each year and preferably no later than the 31st August to ensure
completion by the deadline.
We
will be happy to review the interim payments on account shown on the HMRC
statement of account, apply for any postponement which may be necessary and
advise you in connection with the payment of tax due thereon.
We
have asked you to sign the appropriate authority which enables the HMRC to send
us copies of the statement of account.
Responsibilities
We
are bound by Code of Ethics of our professional institute, the Institute of
Financial Accountants, and accept instructions to act for you on the basis that
we will act in accordance therewith. You or your staff will deal with all
matters required to be completed by officials of your business; for example,
VAT returns, PAYE, forms P11D and CT61, but we should be pleased to advise you
and undertake these tasks on your behalf if so requested.
Professional Indemnity Insurance
Under
the provisions of the EU Service Directive 2006/123/EC of 12 December 2006 on
services in the internal market, the UK has implemented legislation (SI 2999 of
2009) which sets out the duties of service providers, including what
information has to be made available to a recipient of a professional service:
‘where
the provider is subject to a requirement to hold any professional liability
insurance or guarantee, information about the insurance or guarantee and in
particular- (i) the contact details of the insurer or guarantor, and (ii) the
territorial coverage of the insurance or guarantee.’
Accordingly,
we state that we are required to hold Professional Indemnity Insurance and this
is currently held with
Caunce
O'Hara & Company Limited
82 King Street, Manchester, M2 4WQ
Tel - 03333 211 403 , Fax - 0161 839 2100
Email -
[email protected]The territorial coverage of our PII is worldwide with the
exception of the United States.
Special work
We
would be pleased, if instructed, to represent you on any tax appeal. Due to a special
concession, members of the Institute of Financial Accountants are able to
instruct Counsel direct on your behalf and we can do this if you require, for
an additional fee (to be agreed).
In
the event that you would like us to undertake such work for you we will send
you a further letter setting out the basis of our instructions.
Investment Advice
This
letter does not instruct us to give you investment advice. This firm is not
regulated by a “IFA” or by the Financial Services Authority directly under the Financial
Services and Markets Act 2000. You should consult an Independent Financial
Adviser (regulated by the Financial Services Authority).
Complaints
If
you are dissatisfied with any of the work we undertake, please contact your
assignment partner or our senior partner. He or she will try to resolve matters
to your satisfaction. It is important that we receive feedback, good or bad, to
enable our service to you to continually improve.
This
procedure does not affect in any way your right to contact the Institute of
Financial Accountants if you remain dissatisfied with the outcome of our
complaints procedure. If you wish to make a complaint to the IFA, you should
look on the IFA website and download a Complaints Form from www.ifa.org.uk
Director,
Professional Standards
The
Institute of Financial Accountants
Institute of Financial Accountants
CS111, Clerkenwell Workshops
27-31 Clerkenwell Close, Farringdon, London, EC1R 0AT
Emil: [email protected], Website:
www.ifa.org.uk
NB:
The IFA does not become involved with arbitration in fees disputes.
Client Identification
In
common with all other professional accountancy and taxation firms, we are
required to establish positive identification of our clients, under the UK anti-money
laundering legislation (the Money Laundering Regulations 2020).
We
will request from you, and retain for a period of five years after the
conclusion of our business with you, such information and documentation as we
require for these purposes and/or make searches of appropriate electronic
databases. We regret that this law applies even if you have already been our
client for some years.
As
one of the requirements of the Money Laundering Regulations we will require you
to produce evidence of identity,
such as a passport, and evidence of
residence. It may be appropriate under the Regulations to seek renewal of these
documents from time to time.
We
are supervised under the above Regulations by the Institute of Financial
Accountants.
In
accordance with the Proceeds of Crime Act 2002 and Money Laundering Regulations
2007 you agree to waive your right to confidentiality to the extent of any
report made, document provided or information disclosed to the National Crime
Agency (“NCA”). In signing your copy of this Engagement Letter, you also
acknowledge that we are required to report directly to NCA, without prior or
subsequent reference to you or your representatives, if during the course of
undertaking any assignment the person undertaking the role of Money Laundering
Reporting Officer for this firm becomes suspicious of possible money
laundering. Under the provisions of the Proceeds of Crime Act 2002, you will
not be informed if or when such a step has been taken.
Client accounts
While
we do not normally hold clients’ monies, should we do so for you in the course
of this retainer they will be paid into a separate client account at our bank.
We will pay you any interest earned from the money whilst it is held by us in
that account.
General Data Protection Regulation
(GDPR).
We may obtain, use, process and disclose personal data about
you in order that we may discharge the services agreed under this engagement
letter, 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 confirm when processing data
on your behalf that we will comply with the relevant provisions of the General
Data Protection Regulation (GDPR).
Fees
We
are pleased to offer fixed fee per
annum payable monthly via direct debit (DD) covering following services. Fee
quoted on Accounting Firm platform is for items 1, 2 & 3 for ltd company type
clients.
- Statutory Accounts for companies’ house and
detailed accounts for HMRC
- Corporation Tax return
- Payroll for two employees, every extra employee
is £5 per payslip
- Personal tax return £150 (income from
company only i.e. salary + dividends, any other source of personal income
is subject to extra charges)
- Bookkeeping/vat is your responsibility,
guidance available. (We can provide bookkeeping services at £25 per hour
if needed)
- Companies House Annual return £45
Fees will be subject to 2% increase in line with inflation every year.
Please
note any tax/VAT investigation from HMRC
is subject to additional fees, we
suggest you should take a separate HMRC investigation insurance to cover
cost of investigation professional charges. Please ask us for more details if
you wish to.
Duration
Once
it has been agreed, this letter will remain effective from one year to the next
until this is replaced. This agreement may be ended by either of us giving
notice in writing to the other and we will cease to work from the date we
become aware that this retainer has ended. Any variations to this agreement
must be agreed in writing and you may be required to sign a new engagement
letter to continue our instruction.
This
letter of engagement is governed by, and is to be construed in accordance with,
the laws of England.
We
hope that this letter summarizes the terms under which you have asked us to act
on your behalf, in which case we should be grateful if you could kindly
acknowledge receipt of this letter and indicate your agreement to it by signing
the enclosed copy and returning it to us. If you do not agree with our
understanding of the agreement, please let us know as soon as practicable.
Yours
sincerely
Omer
Hanif (FFA)
Faraday
Keynes Ltd
For Client:
You
confirm that you have read and understood the contents of this engagement and
related terms and conditions and agree that it accurately reflects your fair
understanding of the services that you require you to undertake. Please note
this engagement T&C could be subject to enhanced scrutiny and might get
updated if further information is unearthed as Accounting Firm platform does
not allow us to do enhance due diligence at this stage of process.
