Terms of Business

SMITHFIELD ACCOUNTANTS LLP-TERMS OF BUSINESS 6th June 2017

The following terms of business apply to all engagements accepted by Smithfield Accountants LLP. All work is carried out under these terms except where changes are expressly agreed in writing.

1.0 Professional rules and practice guidelines

1.1 We will observe the bye-laws, regulations and ethical guidelines of the Institute of Chartered Accountants in England and Wales and accept instructions to provide services to you on the basis that we will act in accordance with them. You can see copies of these requirements in our offices. The requirements are also available on the internet at www.icaew.co.uk/membershandbook. We confirm that we are Registered Auditors eligible to conduct audits under the Companies Act 2006.

2.0 Investment advice

2.1 If during the provision of professional services to you, you need advice on investments, we may have to refer you to someone who is authorised by the Financial Conduct Authority [or licensed by a Designated Professional Body], as we are not. However, as we are licensed by the Institute of Chartered Accountant in England and Wales, we may be able to provide certain investment services that are complementary to, or arise out of, the professional services we are providing to you. Such advice may include generic advice on investments, pensions, etc. In the unlikely event that we cannot meet our liabilities to you, you may be able to claim compensation under the Chartered Accountants' Compensation Scheme in respect of exempt regulated activities undertaken.

3.0 Commissions or other benefits

3.1 In some circumstances we may receive commissions or other benefits for introductions to other professionals or transactions we arrange for you. In this case we will notify you in writing of the amount, the terms of payment and receipt of any such commissions or benefits. The fees you would otherwise pay as described below will not be reduced by such amounts. You agree that we can retain the commission or other benefits without being liable to account to you for any such amounts.

4.0 Clients' money regulations

4.1 We may, from time to time, hold money on your behalf. The money will be held in trust in a client bank account, which is segregated from the firm's funds. The account will be operated, and all funds dealt with, in accordance with the Clients' Money Regulations of the Institute of Chartered Accountants in England and Wales.

4.2 To avoid excessive administration, interest will only be paid to you where the amount earned on the balances held on your behalf in any calendar year exceeds 100. Subject to any tax legislation, interest will be paid gross.

5.0 Retention of records

5.1 During our work we will collect information from you and others acting on your behalf and will return any original documents to you following preparation / audit of your financial statements/tax return. In the case of tax returns, you should retain them for 6 years from the 31 January following the end of the accounting year. You should retain them for longer if HM Revenue & Customs enquire into your tax return.

5.2 Whilst certain documents may legally belong to you, unless you tell us not to, we intend to destroy correspondence and other papers that are more than seven years old, except documents we think may be of continuing significance. You must tell us if you wish us to keep any document for any longer period.

6.0 Conflicts of interest and independence

6.1 We reserve the right during our engagement with you to deliver services to other clients whose interests might compete with yours or are or may be adverse to yours, subject to 7 below. We confirm that we will notify you immediately should we become aware of any conflict of interest involving us and affecting you /the company/the partnership.

7.0 Confidentiality

7.1 We confirm that 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 statements relevant to our engagement.

8.0 Data Protection Act 1998

8.1 To enable us to discharge the services agreed under our 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 / your business / company / partnership / its officers and employees. We confirm when processing data on your behalf we will comply with the relevant provisions of the Data Protection Act 1998.

9.0 Proceeds of Crime Act 2002 and Money Laundering Regulations 2017

9.1 In common with all accountancy and legal practices the firm is required by the Proceeds of Crime Act 2002 and the Money Laundering Regulations 2017 to:

  • have identification procedures for all new clients;
  • maintain records of identification evidence; and
  • report in accordance with the relevant legislation and regulations.

10.0 Quality control

10.1 As part of our ongoing commitment to providing a quality service, our files are periodically reviewed by an independent regulatory or quality control body. These reviewers are highly experienced and professional people and, of course, are bound by the same rules for confidentiality as our principals and staff.

11.0 Help us give you the best service

11.1 We wish to provide a high quality of service at all times. If at any time you would like to discuss with us how we could improve our service, or if you are dissatisfied with the service you are receiving please let us know by contacting Elias Poli or Sara Roberts.

11.2 We will look into any complaint carefully and promptly and do all we can to explain the position to you. If we have given you a less than satisfactory service we undertake to do everything reasonable to put it right. If you are still not satisfied you may of course refer the matter to our Institute.

12.0 Contracts (Rights of Third Parties) Act 1999

12.1 Only someone who is a party to this agreement has the right under the Contracts (Rights of Third Parties) Act 1999 to enforce any of its terms. This clause does not affect any right or remedy that exists independently of the Act.

12.2 The advice we give you is for your sole use and is confidential to you and will not constitute advice for any third party to whom you may communicate it. We will accept no responsibility to third parties for any aspect of our professional services or work that is made available to them.

13.0 Fees

13.1 Our fees are calculated on the basis of the time spent on your affairs by the principals and staff and on the levels of skill or responsibility involved. Our fees will be billed at intervals agreed with you, together with outlays and VAT and our invoices will be due for payment when issued.

13.2 If we need to do work outside the responsibilities outlined in our engagement letter, we will advise you in advance. This will involve additional fees.

13.3 We sometimes ask clients to pay a proportion of their fee on a monthly standing order. These standing orders will be applied to fees for work performed under our engagement letter for the current and ensuing years.

13.4 We reserve the right to charge interest on overdue accounts at the current rate under the Late Payment of Commercial Debts (Interest) Act 1998. We also reserve the right to terminate our engagement and cease acting if payment of any fees billed is unduly delayed.

14.0 Applicable law

14.1 Our engagement with you is governed by, and interpreted in accordance with, English law. The Courts of England shall have exclusive jurisdiction in relation to any claim, dispute or difference concerning our engagement letter and terms of business and any matter arising from or under them. 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 inconvenient forum, or to claim that those courts do not have jurisdiction.

15. Complaints Procedures

15.1 We aim to provide you with a fully satisfactory service and the partners will seek to ensure that this is so. We undertake to look into any complaints promptly and to do what we can to resolve the position. If you are still not satisfied you may of course, take up the matter with ICAEW by whom we are regulated .

1.0 TAXATION SERVICES

TAX CREDIT CLAIMS

1.1 Responsibilities for making tax credit claims.

1.1.1 We can file a claim for you as part of our existing package of tax compliance work.

1.1.2 In order that we can complete a claim form on your behalf, there are deadlines for submitting, and updating claims, and we would ask that you let us know of relevant details and changes as soon as they arise.

VAT RETURN

1.2 Responsibilities for the preparation of VAT returns.

1.2.1 We will prepare return form VAT 100 from the records of your business/ company/partnership. We will not audit or otherwise check the underlying records. When the VAT return has been completed from the information supplied, we will send you the return form as soon as it is prepared for you to review. We can only ensure it is returned to you for submission, if the data is received at least 14 days before the submission date. If you agree the return you should then sign it and submit it to HM Revenue & Customs together with the required payment. If you consider the return to be incorrect please consult us immediately.

1.2.2 You are legally responsible for making a correct VAT return, and for payment of VAT on time. We can accept no responsibility for any default surcharge that may arise if the books and records are not available to us within 14 days after the return period ends or the books and records prove to be incomplete or unclear, and in particular are not written up to the end of the period, thereby delaying the preparation and submission of the VAT return, or you fail to submit the return [ and the required payment to H M Revenue & Customs on time after we have sent the return to you for signature.

1.2.3 Further, as the returns are prepared solely on the basis of information provided by you, we can accept no responsibility for any VAT liabilities arising due to inaccuracies or omissions in your accounting procedures which may lead to a misdeclaration whether or not it is one on which penalties and interest may arise.

CT61s

1.3 Payments under deduction of tax and loans to participators.

1.3.1 We will complete, using information provided by you, return form CT61 regarding payments made to and by the company under deduction of tax. We will send the form CT61 to you for approval and signature which should be returned to us for submission to the H M Revenue & Customs. We will advise you of the amounts of income tax that are due, and the due date for payment. You must inform us immediately if the company receives or pays any amounts under deduction of tax.

PAYROLL

1.4 Payroll and year end returns.

1.4.1 We will maintain your payroll records, supply you with completed weekly and monthly wages and salary payslips for you to pass to employees with their wages, supply you with a completed H M Revenue & Customs payslip for the PAYE and national insurance contributions for you to send to the Collector of Taxes with a cheque which you will draw, 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 the H M Revenue & Customs with forms P14 and the forms P60 that you will pass to each employee.

1.4.2 In order to do this we need to comply with the Employer's Guide to PAYE. We will require from you the following information by the 15th of each month for monthly paid and 3rd day of each week for weekly paid employees:

  • (a) personal details of all employees (i.e., name, NI number, home address, etc.);
  • (b) all P45 forms received by you;
  • (c) if any casual labour is taken on, you are required to operate P46 procedures. The completed P46 form should be passed to us for processing;
  • (d) notification within two weeks of any employee who is sick for four or more calendar days, including weekends, bank holidays, etc. This will enable us to operate statutory sick pay for you;
  • (e) notification of any employee who becomes pregnant. This will enable us to operate statutory maternity pay;
  • (f) details of any money or benefits made available to employees by you or by a third party through you;
  • (g) hours worked, rates of pay, bonuses, etc.;
  • (h) notification of employees engaged by you or leaving your employment; and
  • (i) any notice of coding received by you.

1.4.3 The end of year payroll returns must be received by the H M Revenue & Customs by 19 May following the end of the tax year otherwise penalties will be levied. There may also be interest payable if all tax and National Insurance payments, due by 19 April following the end of the tax year, are late. We cannot guarantee to have the returns etc., completed in time to meet this deadline, unless we have all the relevant information within 15 working days of the end of the tax year.

1.5 Forms P11D (expenses and benefits).

1.5.1 We will complete forms P11D for the directors and 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.

1.5.2 There are penalties for the late submission of and incorrect information on form P11D. You agree to supply us with complete and accurate details of all benefits and reimbursed expenses paid to or on behalf of directors or higher paid employees for the tax year (not the accounts year) within 30 days of the end of that year. (Note: A higher paid employee is someone who receives (at the current level) 8,500 pa including the taxable value of benefits).

1.6 Personal service companies (IR35)

1.6.1 We will advise on whether the company is subject to the personal services legislation on a contract by contract basis. You authorise us to seek an opinion from the H M Revenue & Customs where we consider it appropriate. If there are contracts that we consider are within the personal service legislation we will calculate the deemed salary, prepare the corporation tax computations using the prescribed method, prepare and submit the supplementary P35 and P14 and advise you how much tax and national insurance to pay and by when and whether to pay any actual salary before the year end and if so how much.

1.7 Data Protection Act 1998

1.7.1 The processing of personal payroll data where the firm is acting as a data processor places additional requirements on the firm in connection with the Data Protection Act 1998. 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.

2.0 CORPORATE SERVICES

2.1 Company secretarial

2.1.1 A private company/ limited liability partnership is required to file its financial statements at Companies House within nine months of the year end. The company/designated members will be liable to a fine if it fails to do so. We accept no responsibility for fines or regulatory action taken against the directors/ members where the statutory financial statements are not available for filing.

2.1.2 You have agreed to complete all the returns which are required by law to be filed at Companies House, for example, the annual return and the notification of changes in directors/ members. We shall, of course, be pleased to advise you on these and any other company secretarial matters if requested.

3.0 CONSULTANCY SERVICES

3.1.1 There are many other areas where we can be of assistance and we will be pleased to discuss any matters with you. These other services include:

  • (a) reports in support of returns or claims, e.g., insurance company certificates, government grants, etc.;
  • (b) advice on financial matters;
  • (c) management accounting, including such matters as cash flow statements, costing systems, etc, and advice on management;
  • (d) advice on the selection and implementation of computer systems;
  • (e) investigations for special purposes, e.g., acquisitions of other businesses or examination of specific aspects of your business; and
  • (f) advice on the selection and recruitment of staff.

4.0 INVESTMENT SERVICES

4.1 Referral to a Permitted Third Party (PTP).

4.1.1. Should you require advice on investment business which we are unable to give as we are not authorised by the Financial Conduct Authority we can introduce you to a suitable PTP.

4.1.2 The PTP will issue you with his own terms and conditions letter, will be remunerated separately for their services and will take full responsibility for compliance with the requirements of the Financial Services and Markets Act 2000. We will act as introducers but would be pleased to comment on, or explain any advice received and if required attend any meetings with you.

4.1.3 We will inform you if any introductory fee/ commission is received and agree with you how this is to be dealt with at that time. In general, we do not receive any introductory fee/commission. The income received by that firm in respect of advice given to you will be advised to you by the PTP directly.

Website by Mdb Web & Data Solutions
Valid XHTML 1.0 Transitional