Schedules of Services

These schedules must be read in conjunction with the General Terms of Business and the Engagement Proposal provided to you.

Please refer to the Terms of Business for terms and conditions applying to all clients.

Please refer to your engagement proposal for confirmation of which of the following services we have agreed to provide under our engagement:

A.     BOOKKEEPING SERVICES

B.     VALUE ADDED TAX (VAT) RETURNS AND MAKING TAX DIGITAL (MTD) FOR VAT

C.     DIRECTORS’ PAYROLL SERVICE

D.     EMPLOYEES’ PAYROLL SERVICE

E.     SUBCONTRACTORS CONSTRUCTION INDUSTRY SCHEME (CIS)

F.      MANAGEMENT ACCOUNTS

G.     BENEFITS-IN-KIND (P11D) RETURNS

H.     VAT/ACCOUNTS REVIEW

A.    BOOKKEEPING SERVICES

1. Our responsibilities

1.1 We have agreed to carry out the following bookkeeping services on your behalf:

  • Complete the postings to the nominal ledger (purchase ledger, sales ledger etc)
  • We will post the transactions to the nominal ledger based on the records and relevant information provided to us by you
  • We will reconcile the bank and petty cash, but you will make the payments
  • We will reconcile other balance sheet accounts if applicable
  • We will close the bookkeeping period and prepare the financial reports within agreed time scale

1.2. We will assist you with our bookkeeping services up to the amount specified in the service details. 

1.3 We will rely on the accuracy and completeness of the documents and information you provide to us. Accordingly, our engagement cannot be relied upon to disclose errors, fraud, or other illegal acts that may exist. However, it may be necessary to ask you for clarification of some of the information you provide, and we will inform you of any material errors, fraud or other illegal acts that come to our attention unless they are clearly inconsequential. 

1.4 In addition, we have no responsibility to identify and communicate significant deficiencies or material weaknesses in your internal controls as part of this engagement, and our engagement cannot therefore be relied upon to make disclosure of such matters.

2. Your responsibilities

2.1 You have agreed that you/your staff will:

  • Keep the records of receipts and payments;
  • Make all relevant bank payments;
  • Deliver all records and relevant information to us in a timely manner.​

2.2 You are responsible for adopting sound accounting policies, for maintaining an adequate and efficient accounting system, for safeguarding assets, for authorizing transactions, for retaining supporting documentation for those transactions, and for devising a system of internal controls that will, among other things, help assure the preparation of proper financial statements.

2.3 You are responsible for management decisions and functions, for designating a competent employee to oversee any of the services we provide, and for evaluating the adequacy and results of those services. 

2.4 You are responsible for the design and implementation of programs and controls to prevent and detect fraud, and for informing us about all known or suspected fraud affecting the Company involving

  • management
  • employees who have significant roles in internal control, and
  • others where the fraud could have a material effect on the financial statements

2.5 You are also responsible for informing us of your knowledge of any allegations of fraud or suspected fraud affecting the business received in communications from employees, former employees, regulators, or others. In addition, you are responsible for identifying and ensuring that the entity complies with applicable laws and regulations.

2.6 In order for us to complete this engagement, and to do so efficiently, we require unrestricted access to the following documents and information concerning your business:

  • Access to your accounting records
  • Sale invoices
  • Purchase invoices, with indication of where they should be allocated, where needed
  • Bank statements
  • Details of bank, debit card, credit card and cash payments, with indication of where they should be allocated, where needed
  • Details of money paid in to the bank and cash receipts, with indication of where they should be allocated, where needed
  • Stock and work-in-progress details

2.7 You agree to accept responsibility for any effect on your accounting records and financial statements of basic financial information or transaction documents not submitted to us for processing and entry, or losses that may result from their absence.

2.8 For purposes of entry of the financial information from your basic transaction documents, classification according to the agreed-upon chart of accounts will be performed by you or your employees. As business conditions change, we may mutually agree to change/modify this arrangement.

B.    VALUE ADDED TAX (VAT) RETURNS AND MAKING TAX DIGITAL (MTD) FOR VAT

The purpose of the work is to assist you in your legal obligation to file Value Added Tax (VAT) returns with HM Revenue & Customs. 

1. Initial registration

1.1 You will complete HMRC’s sign up process to enable submission of your VAT return under Making Tax Digital unless it is agreed in writing that we will complete this on your behalf.

1.2 Where it is agreed in writing that we are submitting the MTD VAT returns, if you haven’t already done so you will need to authorise us as an agent on the HMRC portal using your Business Tax Account. This is completed online and you will need your government gateway ID. This authorises HMRC to communicate with us as your agent, although they consider that you should still take ‘reasonable care’ over your tax affairs.

2. Our responsibilities

2.1 We will prepare/review your monthly/quarterly/annual VAT returns on the basis of the information and explanations supplied by you.

2.2 Based on the information that you provide to us we will tell you how much you should pay and when. If appropriate we will initiate repayment claims where tax has been overpaid. We will advise on the interest and penalty implications if VAT is paid late.

2.3 Where appropriate, we will calculate the partial exemption annual adjustment.

2.4 Where appropriate, we will calculate the annual Capital Goods Scheme adjustment.

2.5 We will forward to you the completed return calculations for you to review, before you approve the VAT return for onward transmission by you/us to HMRC.

2.6 We will submit the MTD for VAT return data online to HMRC on the basis of the data provided by you or as per any other arrangements set out in the engagement proposal or other written agreement.

3. Ad hoc and advisory services

3.1 Examples of work not covered under this engagement but that you may wish to instruct us to undertake include: 

  • advising on ad hoc transactions
  • reviewing and advising on a suitable partial exemption method to use in preparing the return
  • assisting with HMRC’s VAT Return enquiry
  • making recommendations to you about the use of MOSS (mini one-stop shop) if you supply digital services to consumers in the EU
  • Providing you with advice on VAT, Excise Duty, Customs Duty, Landfill Tax, Insurance Premium Tax, Aggregates Levy, Climate Change Levy. 

3.2 Where specialist advice is required on occasions, we may need to seek this from, or refer you to an appropriate specialist.

4. Your responsibilities

4.1 Even though you are engaging us to help you meet your VAT obligations, you are legally responsible for:

  • Ensuring that your returns are correct and complete;
  • Filing any returns by the due date; and
  • Making payment of tax on time.  

Failure to do this may lead to automatic penalties, surcharges and/or interest.

4.2 Legal responsibility for approval of the return cannot be delegated to others. You agree to check the returns that we have prepared for you are correct and complete before approving them.

4.3 You are no less responsible for errors in unapproved returns, submitted on the basis of the information provided to and processed by us, than if you had confirmed your approval of the returns.

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

  • that all returns are to be made on the basis of full disclosure;
  • that you are responsible for ensuring that the information provided is, to the best of your knowledge, accurate and complete. The VAT returns are prepared/reviewed solely on the basis of the information provided by you and we accept no responsibility for any VAT liabilities arising due to inaccuracies or omissions in the information you provide which may lead to a misdeclaration on which penalties and interest may arise;
  • that file any returns by the due date or providing approval to file to us in a timely manner to enable filing of the return (where we file the return on your behalf);
  • that you will keep us informed of material changes in circumstances that could affect your VAT obligations. If you are unsure whether the change is material or not please let us know so that we can assess the significance;
  • to authorise us to approach such third parties as may be appropriate for information that we consider necessary to deal with your affairs; and
  • To provide us with all the records relevant to the preparation of your monthly/quarterly VAT returns as soon as possible after the return period ends. We would ordinarily need a minimum of 14 days before submission to complete our work.

4.5 If the records are provided later or are incomplete or unclear thereby delaying the preparation/review and submission of the VAT return, we accept no responsibility for any default surcharge penalty that may arise. Where feasible we may agree to complete your return within a shorter period but may charge a minimum additional fee of £90 for doing so.

4.6 You are responsible for bringing to our attention any errors, omissions or inaccuracies in your VAT returns which you become aware of after the returns have been submitted in order that we may assist you to make a voluntary disclosure.

4.7 If an error committed by HMRC means that you have not paid the tax due or have been incorrectly repaid tax, the time spent dealing with the error will be invoiced to you in accordance with our terms of businesses. However, please note that in some circumstances you may be able to claim for professional costs incurred and compensation from HMRC. Further details can be found at https://www.gov.uk/complain-about-hmrc

4.8 If you are involved with any other business which is not registered for VAT you are responsible for monitoring your monthly turnover to establish whether you are liable to register for VAT.  If you do not understand what you need to do, please ask us. If you exceed the VAT registration threshold, and wish us to assist you in notifying HMRC of your liability to be VAT registered, you must give us clear instructions to assist you in the VAT registration process. You should notify us of your instructions in good time to enable the VAT registration application form to be submitted within the statutory time limit of one month following the month in which you exceeded the VAT registration threshold in force at that time.  We will not be responsible if you fail to notify us in time and incur a late registration penalty as a result.  The same applies to equivalent non-UK taxes.

4.9 If you provide digital services to consumers in the EU, you are responsible either for registering for VAT in that member state, or for registering for VAT Mini One Stop Shop (‘MOSS’) in an EU member state, by the 10th day of the month following your first sale to an EU customer.  Please note that the online filing deadline for MOSS is 20 days after the end of the calendar quarter.

4.10 It is our policy to confirm in writing advice upon which you may wish to rely.

C.    DIRECTORS’ PAYROLL SERVICE

1. Our responsibilities

1.1 We will prepare your UK payroll for directors and those receiving pay up to the primary threshold for national insurance contributions to meet UK employment tax requirements, specifically: 

  • Agreeing with you at the start of the tax year, the annual salaries to be processed for the year from 6th April to 5th April;
  • calculating the pay as you earn (PAYE) income tax deductions, including at the Scottish and Welsh rate of income tax, if applicable;
  • calculating the employees’ national insurance contributions (NIC) deductions;
  • calculating the employer’s NIC liabilities; and
  • submitting information online to HMRC under Real Time Information (RTI) for PAYE.

1.2 We will submit Full Payment Submissions (FPS) online to HMRC, based on the salaries agreed above.

1.3 For each payment we will prepare and submit to HMRC an Employer Payment Summary (EPS) based on the salaries agreed above by the 19th of the month following the tax month to which they relate.

1.4 At the end of the tax year we will:

  • prepare the final FPS (or EPS) and submit this to HMRC. The due date for submitting final FPS is on or before the last contractual payday of the tax year, failing which, the final EPS for the year must reach HMRC by 19 April following the end of the tax year; and 
  • prepare and retain the P60’s on our file, which can be provided to you upon request;

1.5 We will deal with any online secure messages sent to us by HMRC in respect of your payroll, for example, code number notifications, student loan repayment notices, and generic notification notices.

2. Your responsibilities

2.1 Even though you are engaging us to help you meet your payroll obligations, you are legally responsible for: 

  • ensuring that the data in your payroll submissions is correct and complete;
  • complying with auto-enrolment obligations;
  • making any submissions by the due date; and
  • paying tax and NIC on time.  

Failure to do any of the above may lead to penalties and/or interest.

2.2 Employers cannot be delegated to others.

2.3 You are no less responsible for errors in unapproved returns, submitted on the basis of the information provided to and processed by us, than if you had confirmed your approval of the returns.

2.4 To enable us to carry out our work, you agree:

  • that all information required to be delivered online is submitted on the basis of full disclosure;
  • to provide full information necessary for dealing with your payroll affairs and workplace pension scheme contributions and refunds; we will rely on the information and documents being true, correct and complete and will not audit the information or those documents;
  • to agree with us the name(s) of the person(s) authorised by you to notify us of changes in directors and in rates of pay and other information relevant to the services provided under this schedule; we will process the changes only if notified by that/those individual(s);
  • to keep us informed of changes in circumstances that could affect the payroll; if you are unsure whether a change is material, please tell us so we can assess its significance; and
  • to authorise us to approach such third parties as may be appropriate, for information that we consider necessary to deal with your payroll;

2.5 If you require us to make a correction after the FPS or EPS has been submitted, you will let us know as soon as possible and, ideally, before the next payroll run. This will be subject to a separate fee which will be charged to you at our hourly rates and be payable in accordance with our terms of business.

D.    EMPLOYEES’ PAYROLL SERVICE

1. Our responsibilities

1.1 We will prepare your UK payroll for each payroll period to meet UK employment tax requirements, specifically:

  • Calculating the pay as you earn (PAYE) deductions, including at the Scottish rate of income tax, if applicable;
  • Calculating the employees’ National Insurance Contributions (NIC) deductions; 
  • Calculating the employer’s NIC liabilities;
  • Calculating statutory payments, for example, Statutory Sick Pay and/or Statutory Maternity Pay;
  • Calculating employee and employer pension contributions for employees who are members of workplace pension schemes on the basis of the information that you provide to us;
  • Calculating other statutory and non-statutory deductions; and
  • Submitting information online to HMRC under RTI for PAYE.

1.2 We will prepare and send to you the following documents before the time of payment through the payroll or due date for delivering information to HMRC:

  • Payroll summary report showing the reconciliation from gross to net for each employee and all relevant payroll totals;
  • FPS for taxable pay and payrolled benefits for each employee;
  • A payslip for each employee unless not required;
  • A form P45 for each leaver;
  • A report showing your PAYE and NIC liability and due date for payment; and
  • A report showing employee and employer pension contributions payable in respect of each employee to the respective workplace pension scheme(s) of which they are members and the due date(s) for payment.

1.3 We will submit FPSs online to HMRC after the data to be included therein has been approved by you.  (FPSs must reach HMRC normally on or before the payroll pay date).  You must ensure the data provided to us is complete and accurate and your attention is drawn to your legal responsibilities as set out above.

1.4 We will prepare, where appropriate (for example, to recover statutory payments, claim deductions under the NIC holiday scheme or CIS deductions, confirm that no payments were made to employees), for each tax month, an EPS from the information and explanations that you provide to us.

1.5 We will submit EPSs to HMRC after the data to be included therein has been approved by you.  (EPSs must reach HMRC by the 19th of the month following the tax month to which they relate).  You must ensure the data provided to us is complete and accurate and your attention is drawn to your legal responsibilities as set out above.

1.6 At the end of the payroll year we will:

  • Prepare the final FPS (or EPS) including employer annual declarations and submit this to HMRC after the data to be included therein has been approved by you.  (The final FPS (or EPS) for the year must reach HMRC by 19 April following the end of the tax year).  You must ensure the data provided to us is complete and accurate and your attention is drawn to your legal responsibilities as set out above.
  • Prepare and send to you by the statutory due date Form P60 for each employee on the payroll at the year end.

1.7 We will deal with any online secure messages sent to us by HMRC in respect of your payroll.

1.8 We will submit National Insurance Number (“NINO”) verification requested as appropriate to verify or obtain a NINO for a new employee.

1.9 We will deal with all communications relating to your payroll return addressed to us by HMRC or passed to us by you.  However, if HMRC 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.

1.10 Where you have instructed us to do so, we will also provide such other taxation advisory and ad-hoc services as may be agreed between you and us from time to time. These may be the subject of a separate letter of engagement, at our option.  Where appropriate, we will discuss and agree an additional fee for such work when it is commissioned by you.  Where specialist advice is required on occasions, we may need to seek this from, or refer you to an appropriate specialist.

2. Your responsibilities

2.1 Even though you are engaging us to help you meet your payroll obligations, you are legally responsible for:

  • Ensuring that the data in your payroll submissions is correct and complete;
  • Complying with auto-enrolment obligations;
  • Making any submissions by the due date; and
  • Making payment of tax and NIC on time.  

Failure to do this may lead to automatic penalties, surcharges and/or interest.

Employers cannot delegate this legal responsibility to others.  You agree to check that submissions we have prepared for you are complete before you approve them.  You are no less responsible for errors in unapproved returns, submitted on the basis of the information provided to and processed by us, than if you had confirmed your approval of the returns.

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

  • that all information required to be delivered online is submitted on the basis of full disclosure;
  • to provide full information necessary for dealing with your payroll affairs and workplace pension scheme contributions: we will rely on the information and documents being true, correct and complete and will not audit the information or those documents;
  • to agree with us the name(s) of the person(s) authorised by you to notify us of changes in employees and in rates of pay and other information relevant to the services provided under this schedule.  We will process the changes only if notified by that/those individual(s);
  • to advise us in writing of changes of payroll pay dates;
  • to notify us at least 10 working days prior to the payroll date of all transactions or events which may need to be reflected in the payroll for the period, including details of:

–   All new employees (including full names, address, date of birth, gender, National Insurance number, their start date and starter form) and details of their remuneration packages including benefits in kind to be payrolled;

–   For employees whose benefits in kind are being payrolled, their names, the identity of the benefits in kind, and the cash equivalent amounts to be included in payroll;

–   For employees who are active pension scheme members, name of pension scheme, pensionable pay, employee and employer contribution rates, dates from / to which contributions payable;

–   Names and date of birth of all apprentices aged under 25;

–   Names and date of birth of all employees aged under 21;

–   Information necessary to enable us to calculate statutory payments, i.e. statutory sick pay, statutory maternity pay, statutory adoption pay, statutory paternity pay, statutory shared parental pay;

–   All leavers, including deaths of employees, their leaving date, termination arrangements, and any payments to be made after their leaving date;

–   All changes to remuneration packages including benefits in kind to be payrolled;

–   Any changes to the employees’ bank accounts; and

–   Irregular and / or ad hoc payments and the dates to be paid.

  • to approve:

–   In-year and final Full Payment Submission (“FPS”) by at least 5 working days prior to payroll pay dates so that they can be submitted on or before the payroll pay date, or as agreed with us;

–   In-year and final Employer Payment Summary (“EPS”) by at least 5 days prior to 19th of the month following the tax month; and

  • if we do not hear from you by the above deadlines, subject to any other agreement between us, we will take your silence as your approval for us to submit the return;
  • you will keep us informed of changes in circumstances that could affect the payroll.  If you are unsure whether the change is material or not please let us know so that we can assess the significance; and
  • that we can approach such third parties as may be appropriate for information that we consider necessary to deal with your affairs.

2.3 If the information required to complete the payroll services set out above is received less than 5 days before the payroll date we will still endeavour to process the payroll and returns to meet the agreed payroll date and filing deadlines but we will not be liable for any costs or other losses arising if the payroll is late in these circumstances.  We may charge an additional fee of £50 for work carried out in a shorter time period.

2.4 You will forward to us any communications received from HMRC in sufficient time to enable us to deal with them as may be necessary within the requisite time limits.  Although HMRC have the authority to communicate with us when form 64-8 has been signed and submitted it is essential that you let us have copies of any correspondence received because HMRC are not obliged to  send us copies of all communications issued to you and, in most cases, will not do so.

2.5 It is our policy to confirm in writing advice upon which you may wish to rely.

2.6 We will not accept responsibility if you act on advice given by us on an earlier occasion without first confirming with us that the advice is still valid in the light of any change in the law or your circumstances.  We will accept no liability for losses arising from changes in the law or the interpretation thereof that are first published after the date on which the advice is given.

E.  SUBCONTRACTORS CONSTRUCTION INDUSTRY SCHEME (CIS)

The purpose of the work is to assist you in your legal obligation to file Subcontractors Construction Industry Scheme (CIS) returns with HM Revenue & Customs. 

1. Our responsibilities

  • We shall submit the details of all new sub-contractors, which you give us under 2.1 below, to H M Revenue & Customs for verification as registered sub-contractors and on their reply, we shall confirm to you the rate of income tax which should be deducted from payments to each sub-contractor.
  • On the basis that you have confirmed that they relate to sub-contractors, we shall process the monthly details you provide under 2.1 below, calculate the appropriate tax deduction and provide you with pay statements showing the amount due to each sub-contractor.
  • We shall prepare your monthly sub-contractor form (form CIS330) and file it online by the deadline of the 19th of the month.
  • We will provide you with a copy of the completed return and submission receipt so you can make the relevant payment to HMRC before the deadline of the 19th of the month.
  • The scope of our services provided to you will be only as set out above, and all other services which we may offer are excluded. If you instruct us to do so, we will provide such other taxation, ad hoc and advisory services as may be agreed between us from time to time. These may be the subject of a separate engagement letter at our option. Where appropriate, we will agree with you a separate fee for any such work you instruct us to undertake.
  • If specialist advice is required, we may need to seek this from, or refer you to, appropriate specialists.

2. Your responsibilities

2.1 Even though you are engaging us to help you meet your CIS obligations, you are legally responsible for:

  • considering the employment status of everyone who works for you in the light of the work undertaken in each month and decide whether they are working for you as sub-contractors or as employees in that month.
  • providing us with the list of sub-contractors verified by HMRC at the date of this engagement and the name, address, National Insurance number and Unique Taxpayer Reference (UTR) of every other worker you engage as a sub-contractor after that date.
  • where a sub-contractor has not been verified, you are responsible for communicating directly with the sub-contractor and ensuring that they contact HMRC to enable their verification.
  • providing us each month with either:
  • details of the charges (labour, materials and VAT) from those workers whom you consider to be sub-contractors or
  • confirmation there are no sub-contractors
  • deducting the appropriate rate of tax from all of your subcontractor payments and paying this to HMRC by the deadline

Failure to do any of the above will lead to penalties and/or interest from HMRC

2.2 Employers/contractors cannot delegate these legal responsibilities to others.

2.3 You are no less responsible for errors submitted on the basis of the information provided to and processed by us, than if you had confirmed your approval of the returns. 

2.4 To enable us to carry out our work, you agree:

  • that all information required to be delivered online is submitted on the basis of full disclosure;
  • to provide full information necessary for dealing with your CIS affairs we will rely on the information and documents being true, correct and complete and will not audit the information or those documents;
  • to agree with us the name(s) of the person(s) authorised by you to notify us of changes in sub-contractors and other information relevant to the services provided under this schedule; we will process the changes only if notified by that/those individual(s); 
  • to notify us at least 5 working days before the CIS submission deadline (19th of the month) of all transactions or events which may need to be reflected in the CIS return for the period;
  • to keep us informed of changes in circumstances that could affect CIS; if you are unsure whether a change is material, please tell us so we can assess its significance;
  • to authorise us to approach such third parties as may be appropriate, for information that we consider necessary to deal with your CIS;

2.5 If the information required to complete the CIS services set out above is received later than the dates specified above or agreed with us, we will still endeavour to process the CIS and returns to meet the filing deadlines; but we will not be liable for any costs or other losses arising if the CIS is late or the returns are filed late in these circumstances. We may charge an additional fee of £50 for work carried out in a shorter time period.

2.6 If you require us to make a correction after submission, this will be subject to a separate fee of £40.

2.7 HMRC will send you an agent authorisation code which expires within 30 days of issue. Please send this to us as soon as you receive it. This code will enable us to register as your CIS agent with HMRC. This authorises HMRC to communicate with us as your agent, although they consider that you should still take ‘reasonable care’ over your tax affairs.

2.8 You will forward to us any communications received from HMRC, in sufficient time to enable us to deal with them as may be necessary within the requisite time limits. Although HMRC has the authority to communicate with us when form 64-8 has been signed and submitted, it is essential that you let us have copies of any correspondence received, because HMRC are not obliged to send us copies of communications issued to you and, in most cases, will not do so.

F. MANAGEMENT ACCOUNTS

The purpose of the management accounts we will prepare is to assist you in monitoring the ongoing trading position of your business. In essence these are prepared to provide you with relevant information for decision making purposes.

1. Our responsibilities

1.1 We understand that you require us to prepare the monthly/quarterly management accounts of your business for the [month][quarter] ended [date] and subsequent [months][quarters].  These will comply with the measurement principles of United Kingdom Generally Accepted Accounting Practice.

1.2 We will prepare management accounts as stated in paragraph 1.1 above, which 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 financial information therefrom.

1.3 You understand that we will not be carrying out an audit in accordance with International Standards on Auditing (UK) and accordingly will not verify the assets and liabilities of your organisation, nor the items of expenditure and income. 

1.4 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 financial information.

1.5 The financial information is not suitable for submission with the self-assessment tax return, or for summary thereon.

1.6 We will report to you, as appropriate, that in accordance with this letter of engagement, we have not carried out an audit but have compiled the management accounts from the accounting records and from the information and explanations supplied to us.  To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than you for the work or for the report which we provide, which will provide an appropriate disclaimer of liability. Although we are aware that the management accounts will be made available to third parties, we neither owe nor accept any duty to any other party and shall not be liable for any loss, damage or expense of whatsoever nature which is caused by their reliance on the management accounts.

2. Your responsibilities

2.1 You have undertaken to make available to us, as and when required, all of your accounting records and related financial information, including minutes of management meetings necessary for the compilation of the financial information.  You will provide us with all information and explanations relevant to the purpose and compilation of the financial information and you will make full disclosure to us of all relevant information.

2.2 You are responsible for ensuring that, to the best of your knowledge and belief, financial information, whether used by the business or for the financial statements, is accurate and complete.  You are also responsible for ensuring that the activities of the business are conducted honestly, and for safeguarding the assets of the business and for taking reasonable steps to prevent and detect fraud and other irregularities.

2.3 You are responsible for ensuring that the organisation complies with the laws and regulations that apply to its activities, and for preventing non-compliance and detecting any that occurs

2.4 We understand that you have agreed that you will be responsible for maintaining records of all receipts and payments of cash;

G. BENEFITS-IN-KIND (P11D) RETURNS

1. Our responsibilities

1.1 We will carry out the following in respect of forms P11D and P11D(b):

  • We will prepare/review forms P11D as may be required for each employee including directors, from the financial statements, information and explanations provided to us on your behalf.
  • We will prepare/review forms P11D(b) to include, if relevant, the Class 1A NIC on benefits-in-kind and expenses, both on forms P11D and included in the payroll;
  • We will submit the forms P11D for any benefits/employees for whom benefits are provided but not payrolled, with the form P11D(b) after the form P11D(b) has been signed by you.
  • We will prepare and send to you the P11D information for you to forward to your employees and directors by the statutory due date of 6 July following the end of the tax year;
  • We will calculate your Class 1A NIC liability on the benefits and benefits, both returned in forms P11D and included in payroll, that you are obliged to pay HMRC by the due date and send payment instructions to either you or your bank to action payment.

1.2 The scope of our services provided to you will be only as set out above and all other service which we may offer are excluded. If you instruct us to do so, we will also provide such other taxation ad hoc and advisory services in relation to P11D benefits as may be agreed from time to time. These may be the subject of a separate engagement letter. Where appropriate we will discuss and agree an additional fee for such work when it is commissioned by you. Examples of such work include:

  • dealing with any compliance check or enquiry by HMRC into the benefits-in-kind returns submitted
  • preparing any amended returns which may be required and corresponding with HMRC as necessary;
  • advising on PAYE settlement arrangements and/or approved expenses scale rates; and
  • conducting PAYE and benefits and expenses health checks.

1.3 Where specialist advice is required on occasions we may need to seek this from or refer you to appropriate specialists.

2. Your responsibilities

2.1 You are legally responsible for:

  • ensuring that your declaration on form P11D(b) is true to the best of your knowledge and belief and therefore that the entries on the related forms P11D and, if relevant, amounts of benefits-in-kind and expenses in the payroll, are correct and complete;​
  • filing any returns by the due date after the end of the tax year; and​
  • making payments of Class 1A NIC on time.

Failure to do any of the above may lead to penalties and/or interest.

If you registered online for payrolling of benefits before the tax year, you do not have to include payrolled benefits on the P11D.

2.2 Legal responsibility for approval of this return cannot be delegated to others. You agree to check that the forms that we have prepared for you are correct and complete before approving them.

You are no less responsible for errors in unapproved returns submitted on the basis of the information provided to and processed by us than if you had confirmed your approval of the returns.

2.3 To enable us to carry out our work, you agree:

(a)   that all returns are to be made on the basis of full disclosure;

(b)   to provide full information necessary for dealing with your benefits-in-kind; we will rely on the information and documents being true, correct and complete and will not audit the information or those documents;

(c)   to notify us by the agreed date after the end of the tax year of all transactions or events which may need to be reflected in the forms P11D for the period, including details of all employees during the year and details of their remuneration packages;

(d)   to authorise us to approach such third parties as may be appropriate that we consider necessary to deal with completing the benefits-in-kind returns; and

(e)   to approve the returns as soon as possible so they can be submitted on or before the filing deadline of 6 July after the end of the tax year.

2.4 To notify us within 14 working days after the end of the tax year of all transactions or events which may need to be reflected in the forms P11D for the period, including details of all employees during the year and details of their remuneration packages.

2.5 If the information required to complete the benefits-in-kind returns set out above is received more than 45 working days after the end of the tax year, we will still endeavour to process the information onto the relevant P11D returns to meet the submission date but we will not be liable for any costs or other losses arising if submission is late. In such circumstances, we may charge an additional fee of £50 for work carried out in a shorter time period.

2.6 You will forward to us any communications received from HMRC, in sufficient time to enable us to deal with them as may be necessary within the requisite time limits. Although HMRC has the authority to communicate with us when form 64-8 has been submitted, it is essential that you let us have copies of any correspondence received, because HMRC are not obliged to send us copies of communications issued to you and, in most cases, will not do so.

H.    VAT/ACCOUNTS REVIEW

1. Our responsibilities

1.1 We will carry out the following in respect of the VAT/accounts review service:

  • Review nominal accounts and tax codes
  • Review accounts receivable
  • Review accounts payable
  • Review reconciliation of bank accounts (including credit card accounts)
  • Review loan accounts and reconciliation
  • Review payroll control accounts and reconciliation (PAYE, National Insurance, pension, employees liabilities)
  • Review VAT control accounts and reconciliation
  • Provide a review report with the identified issues.

2. Your responsibilities

2.1 In order for us to complete this engagement, and to do so2.1 efficiently, we require unrestricted access to the following documents and information concerning your business:

  • Access to your accounting records
  • Sale invoices
  • Purchase invoices
  • Bank statements
  • Details of bank, debit card, credit card and cash payments
  • Details of money paid in to the bank and cash receipts
  • Stock and work-in-progress details