Abacus Accountancy Terms & Conditions
GENERAL DEFINITIONS
These terms and conditions of engagement will form the basis of the contact between the above named party and Abacus Accountancy (GB) Limited.
1. INTRODUCTION
1.1 This letter sets out the basis on which we are to act as your tax agent and adviser.
1.2 Your spouse is legally responsible for his / her own tax affairs and will be dealt with independently. However, if both spouses sign this letter you agree that we can disclose to your spouse such details of your financial affairs as are required to consider your combined tax position.
2. PERIOD OF ENGAGEMENT
2.1 This engagement will commence with your tax return for the current tax year, as indicated by the date above.
2.2 We will deal with matters arising in respect of years prior to the above year, as appropriate, although this may be subject to an additional charge. Any additional work will be agreed with you before we commence.
3. OUR SERVICE TO YOU
3.1 We will prepare the income and expenditure account of your business and the income tax computations based thereon from your accounting records and other information and explanations provided by you. We will not carry out an audit of those records.
3.2 We will prepare your personal tax return together with such supporting schedules as are appropriate and we will prepare / check the Inland Revenue's calculation of your self-assessment of tax and Class 4 national insurance contributions.
3.3 We will send you your tax return, business accounts, tax computations and supporting schedules for you to approve and sign. We will then submit your tax return to the Inland Revenue. You authorise us to file the return electronically.
3.4 We will tell you how much tax and national insurance contributions you should pay and when. If appropriate we will initiate repayment claims when tax and national insurance contributions have been overpaid.
3.5 We will deal with the Inland Revenue regarding any amendments required to your return and prepare any amended returns which may be required.
3.6 We will advise as to possible claims and elections arising from the tax return and from information supplied by you. Where instructed by you, we will make such claims and elections in the form and manner required by the Inland Revenue.
3.7 We will deal with all communications relating to your return addressed to us by the Inland Revenue or passed to us by you. However, if the Inland Revenue 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.
4. YOUR RESPONSIBILITIES: PROVISION OF INFORMATION BY YOU
4.1 You are 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, surcharges and / or interest.
4.2 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 your 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 your affairs;
(d) to provide us with information in sufficient time for your tax return to be completed and submitted by the due date. In order that we can do this, we need to receive all relevant information by 60 days prior to the due date at the latest;
(e) to forward to us on receipt copies of all Inland Revenue statements of account, PAYE coding notices, notices of assessment, letters and other communications received from the Inland Revenue to enable us to deal with them as may be necessary within the statutory time limits; and
(f) to keep us informed about significant changes in your circumstances if they are likely to affect your tax position.
5. OTHER SERVICES AND GENERAL TAX ADVICE
5.1 We will be pleased to assist you generally in tax matters if you so require. To enable us to do this you will need to instruct us in good time.
5.2 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.
5.3 It is our policy to confirm in writing advice upon which you may wish to rely.
6. INVESTMENT ADVICE
Investment business is regulated under the Financial Services Act 1986 and the Financial Services and Markets Act 2000. We are not licensed under these Acts.
7. EXCLUDED SERVICES
7.1 You will continue to deal with other matters required by law, such as:
Inheritance Tax;
Capital Gains Tax.
7.2 You will deal with claims and any related correspondence, appeals or other matters in respect of working tax credits and child tax credits.
7.3 We will be pleased to advise on any of these matters if so requested.
8. PROFESSIONAL RULES AND PRACTICE GUIDELINES
We will observe the bye-laws, regulations and ethical guidelines of The Chartered Institute of Taxation and accept instructions to act for you on the basis that we will act in accordance with those guidelines. In particular you give us authority to correct Inland Revenue errors. A copy of these guidelines is available for your inspection in our offices.
9. COMMISSIONS OR OTHER BENEFITS
In some circumstances, commissions or other benefits may become payable to us in respect of transactions which we arrange for you. The fees that would otherwise be payable by you as described will not take into account the benefit to us of such amounts. You consent to such commission or other benefits being retained by us without our being liable to account to you for any such amounts.
10. CLIENT MONIES
We may, from time to time, hold money on your behalf. Such money will be held in trust in a separate bank account, which is segregated from the firm's funds.
11. RETENTION OF RECORDS
11.1 During the course of our work we will collect information from you and others acting on your behalf and will return any original documents to you following preparation of your return. You should retain them for seven years from the 31st January following the end of the tax year. This period may be extended if the Inland Revenue enquire into your tax return.
11.2 Whilst certain documents may legally belong to you, we intend to destroy correspondence and other papers that we store which are more than seven years old, other than documents which we consider to be of continuing significance. You must tell us if you require retention of a particular document.
12. REGULATORY REQUIREMENTS
We reserve the right to disclose our files to regulatory bodies in the exercise of their powers.
13. QUALITY OF SERVICE
13.1 We aim to provide a high quality of service at all times. If you would like to discuss with us how our service could be improved or if you are dissatisfied with the service you are receiving please let us know by contacting Paul Pritchard.
13.2 We undertake to look into any complaint carefully and promptly and to do all we can to explain the position to you. If we do not answer your complaint to your satisfaction you may take up the matter with The Chartered Institute of Taxation.
14. FEES
14.1 Unless otherwise agreed, our charges are computed on the basis of fees for the time spent on your affairs, which depends on the levels of skill and responsibility involved, and disbursements incurred in connection with the engagement. If work is required which is outside the scope of this letter, for example dealing with Inland Revenue enquiries into the tax return, then this will be a separate engagement for which additional fees will be chargeable. We will issue invoices upon completion of our duties for the tax period of engagement. We will add value added tax, if applicable, at the current rate.
14.2 Our invoices are payable on presentation. We understand and will exercise our statutory right to claim interest and compensation for debt recovery costs under the late payment legislation if we are not paid according to agreed credit terms. We may terminate our engagement and cease acting if payment of any fees billed is unduly delayed. However, it is not our intention to use these arrangements in a way which is unfair or unreasonable.
15. LIMITATION OF LIABILITY
15.1 The advice which we give to you is for your sole use and does not constitute advice to any third party to whom you may communicate it.
15.2 We will provide the professional services outlined in this 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 from the failure by you or others to supply any appropriate information or your failure to act on our advice or respond promptly to communications from us or the tax authorities.
15.3 E-mail may be used to enable us to communicate with you. As with other means of delivery this carries with it the risk of inadvertent misdirection or non delivery. It is the responsibility of the recipient to carry out a virus check on any attachments received.
16. ELECTRONIC COMMUNICATION
As internet communications are capable of data corruption we do not accept any responsibility for changes made to such communications after their despatch. For this reason it may be inappropriate to rely on advice contained in an e-mail without obtaining written confirmation of it. All risks connected with sending commercially-sensitive information relating to your business are borne by you and are not our responsibility. If you do not accept this risk, you should notify us in writing that e-mail is not an acceptable means of communication.
17. APPLICABLE LAW
This engagement letter is governed by, and construed in accordance with, English law. The Courts of England will have exclusive jurisdiction in relation to any claim, dispute or difference concerning this engagement letter and any matter arising from it. 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 inappropriate forum, or to claim that those courts do not have jurisdiction.
18. DATA PROTECTION ACT 1998
To enable us to discharge the services agreed under this 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. You have a right of access, under data protection legislation, to the personal data that we hold about you. For the purposes of the Data Protection Act 1998, the Data Controller in relation to personal data supplied about you is Paul Pritchard.
19. CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999
A person who is not party to this agreement shall have no right under the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this agreement. This clause does not affect any right or remedy of any person which exists or is available otherwise than pursuant to that Act.
20. AGREEMENT OF TERMS
20.1 This letter supersedes any previous engagement letter for the period covered. Once agreed, this letter will remain effective from the date of signature until it is replaced. You or we may vary or terminate our authority to act on your behalf at any time without penalty. Notice of variation or termination must be given in writing.
20.2 We should be grateful if you would confirm your agreement to the terms of this letter by signing below and returning one copy for our records.
20.3 If this letter is not in accordance with your understanding of the scope of our engagement, please let us know.