These terms and conditions will apply when you sign up to our standard letter of engagement unless we specify otherwise.

 

Bookkeeping

 

It is agreed that we should carry out the following accounting and other services:

 

• keep the records of receipts, payments and balances;

• reconcile the balances monthly with the bank statements;

• post and balance the purchase and sales ledgers;

• extract a detailed list of ledger balances;

• prepare details of the annual stocktaking and work in progress, suitably priced and extended in a form which will enable us to verify the prices readily by reference to suppliers’ invoices;

• complete the postings to the nominal ledger;

 

You 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 that we encounter.

 

 

Management Accounts

  

Preparing a set of management accounts involves us in completing the writing up of your books and records, insofar as they are incomplete when presented to us, from the information and explanations supplied to us and preparing draft accounts therefrom for your approval.

 

In order to prepare a robust set of management accounts, we would expect with your co-operation to:-

 

                (a)            maintain records of all receipts and payments of cash;

                (b)            reconcile cash book balances monthly/quarterly* with the bank statements;

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

                (d)            extract a detailed list of ledger balances.

 

You will also provide estimates of any stocks at the end of each period.

 

You understand that we will not be carrying out an audit and accordingly will not verify the assets and liabilities of the business, nor the items of expenditure and income.  To carry out an audit would require additional work to comply with generally accepted auditing standards which we are not authorised to carry out.

 

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.

 

The accounts are prepared for your exclusive use within your business.  They should not be shown to any other party without our prior consent.  To ensure that anyone reading the accounts is aware that we have not carried out an audit, we will annex to the accounts a short report.  This report must remain attached to any accounts shown to any other parties.

 

 

Accounts Preparation

 

As director of the company, under the Companies Acts you are responsible for:

• ensuring that the company maintains proper accounting records and for preparing accounts

• determining whether for any reason the exemption is not available in respect of the period.

 

You will 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.

 

For financial years beginning on or after 06 April 2008, a private company is usually required to file its accounts at Companies House within 9 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 five months of the year end, and all subsequent queries are promptly and satisfactorily answered.

 

We have agreed to act as your agent and to:

 

• submit the accounts to the Registrar of Companies;

• complete and submit the company’s annual return;

• 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

• maintain the statutory books.

 

                       

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.

 

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 Acts 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.

 

VAT Returns

 

If at the time of engaging us, you are not VAT registered and if registration becomes necessary, we will endeavour to ensure that you register in time provided that:

 

                (a)            you notify us in writing within 14 days of the end of each month of the total value of supplies you have made in that month;  and

                (b)            you notify us immediately in writing if the value of taxable supplies that you will make in the next 30 days is likely to exceed the annual registration limit then in force.

 

It should be understood that our appointment as your agent does not absolve the company or its directors from their statutory responsibilities.  We would draw your attention to the strict rules and time limits for the submission of such returns and the substantial penalties which may arise if these are not observed.  It is therefore essential that we receive full information from you promptly to enable us to ensure that the returns are made on a timely basis.  Completed returns will be sent to you for approval and signature prior to submission on the company’s behalf.

 

  

If we are instructed to 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 14 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 14 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.

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Corporation Tax

 

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 shareholder.

 

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.

 

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 no later than 6 months before the deadline for reporting;  and

 

(d) to forward to us on receipt copies of all statements of account, 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.

 

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.

 

 

Payroll

 

In order for us to prepare your payroll and HMRC payroll returns known as Real Time Information (RTI) returns we will need the following information from you:

 

Personal details of all employees (i.e. name, NI number, home address,) and other data as required by HMRC.

 

Notification of new employees or employees leaving your employment.

 

All P45's received by you.

• If no P45 is received, you are required to provide Starter Check Lists, or equivalent, and pass that information to us for processing.

• Notification of any employee who is ill for four or more calendar days, including weekends, bank holidays etc in time for the operation of payroll to enable us to operate statutory sick pay for you.

• Notification of any employee who becomes pregnant or who adopts, or whose partner becomes pregnant or adopts. This will enable us to operate statutory maternity, adoption and paternity pay.

• Details of any money or benefits made available to employees which arise directly or indirecty from their employment with you whether by you or by a third party.

• Hours worked, rates of pay, bonuses, the amount of any pension deductions, etc.

• Any notice of coding received by you.

Payroll returns must be received by HM Revenue & Customs on or before pay day otherwise significant penalties may be charged. Interest will be charged by HMRC if income tax and National Insurance contributions payments are late or less than indicated by the return.

 

We will assist in the preparation and submission of PAYE returns as required by HMRC and other authorities. However, our appointment as your agent does not absolve the company or its directors from their statutory responsibilities. It is essential that we receive full information from you promptly to enable us to file returns in time to avoid penalties.

 

We will provide a payroll service for the month ended and all subsequent months.

 

CIS (Construction Industry Scheme) Returns
 

It is your sole responsibility to establish the employment status of each and every one of your subcontractors. In respect of the employment status of subcontractors we cannot advise therefore we accept no liability in the event that HM Revenue & Customs challenges the employement status of one or more of your subcontractors.

 

Under the new rules, CIS registration will be lost if returns are made late or tax is paid late. HM Revenue & Customs no longer has discretion regarding whether or not to cancel registration.  I/We cannot be held responsible or liable for financial loss or consequential financial loss if your CIS registration is cancelled for late submission where we have not received the necessary information on a timely basis or for any late payment occurring as a result.

 

 

Company Formation

 

If you have instructed us to form a company under Companies House, we will form the company and based on the name you have instructed against the details of the registered address and service addresses provided.

 

For each shareholder, we will need to verify your ID using two forms of ID prior to setting up any new company.

 

 

Consultancy

 

Consultancy services are specialist work carried out by a suitably qualified professional.  The work that is carried out will be based on the instructions of the client and where we are unable to provide such services, we reserve the right to withdraw such work.

 

Consultancy work is charged on time basis and should be paid based on effort worked.  If the work requries rework or scope of works are changed, this will be fully reimbursable.