Terms and Conditions

APRIL 2025

Please find below our Schedule of Services, Terms and Conditions, and Privacy Notice. These documents outline the framework under which we deliver our services and manage client relationships.

When reviewing the Schedule of Services, please note that it includes a full list of all the services we offer. However, you only need to refer to the services specifically agreed upon in your Engagement Letter, as not all listed services may apply to you.

These documents were last reviewed in April 2025 and come into effect from that date. They are subject to change, and it is your responsibility to ensure you are reviewing the most current version available via the provided link.

SCHEDULE OF SERVICES

PREPARATION OF STATUTORY FINANCIAL STATEMENTS IN COMPLIANCE WITH THE COMPANIES ACT 2006

SCHEDULE OF SERVICES

This schedule should be read in conjunction with the engagement letter and the terms of business.

1. RESPONSIBILITIES AND SCOPE FOR FINANCIAL STATEMENTS PREPARATION SERVICES

1.1. Your responsibilities as directors or members

1.1.1. As directors of a company or members of a limited liability partnership (LLP), you are responsible for preparing financial statements that give a true and fair view and comply with the Companies Act 2006 (the Act), or where applicable, the Act as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 (SI 2008/1911). You must not approve the financial statements unless you are satisfied they meet these requirements.

1.1.2. If abridged accounts are to be prepared:

• For a company, you are responsible for obtaining the necessary consents from all shareholders and for delivering the required statement to the registrar in accordance with The Small Companies and Groups (Accounts and Directors’ Report) Regulations 2008 (as amended).
• For an LLP, you are responsible for obtaining the necessary consents from all members and for delivering the required statement to the registrar in accordance with The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008, as amended by The Limited Liability Partnerships, Partnerships and Groups (Accounts and Audit) Regulations 2016.

1.1.3. In preparing the financial statements, you are required to:

• Select suitable accounting policies and apply them consistently;
• Make judgements and estimates that are reasonable and prudent; and
• Prepare the financial statements on a going-concern basis unless it is inappropriate to presume that the entity will continue in business.

1.1.4. You are responsible for keeping adequate accounting records that disclose with reasonable accuracy the financial position of the entity at any time, and for ensuring that the financial statements comply with applicable accounting standards and relevant legislation.

1.1.5. You are also responsible for safeguarding the assets of the entity and for taking reasonable steps to prevent and detect fraud and other irregularities.

1.1.6. If audit exemption is being claimed, you are responsible for determining whether the entity meets the relevant conditions for exemption from an audit under sections 477, 479A, or 480 of the Companies Act 2006 (as applied, where relevant, to LLPs), and whether it can be claimed for the year.

1.1.7. You are responsible for ensuring compliance with all applicable laws and regulations and for identifying, preventing, and detecting any non-compliance.

1.1.8. You agree to provide us with all necessary accounting records, information, and explanations, including minutes of relevant meetings, as and when required for the purpose of our work.

1.1.9. If the financial information we prepare is published electronically (e.g., on a website), you must:

• Inform us of the planned publication and obtain our consent;
• Ensure that the published information is not misleading;
• Implement controls to prevent unauthorised changes to published information.

We reserve the right to withhold our consent for publication if the information is presented inappropriately.

1.1.10. You are responsible for maintaining and ensuring the integrity of all electronically published information. We are not responsible for reviewing or monitoring any changes after initial publication.

1.2. Our responsibilities as accountants

1.2.1. You have engaged us to help prepare financial statements in accordance with the Companies Act 2006 (as applied, where relevant, to LLPs) and applicable accounting standards (e.g., FRS 102, FRS 102 Section 1A, or FRS 105). These statements may be used for filing with the Registrar of Companies and for meeting tax compliance obligations.

1.2.2. Unless you advise otherwise, we will plan our work on the basis that no statutory or regulatory assurance report (e.g., audit) is required. Our work will be limited to compiling the financial statements from the records and information you provide, and we will not perform procedures required for assurance engagements such as audits or reviews.

1.2.3. You have advised us that the entity is exempt from audit. We will not independently verify this, but if we discover otherwise, we will notify you.

1.2.4. As we are not undertaking an audit, we will not provide assurance that the financial statements are free from material misstatement, nor will we be assessing internal controls or searching for fraud or error.

1.2.5. Because we are not verifying the records, we cannot confirm that the financial statements will present a true and fair view. Responsibility for their accuracy remains with you.

1.2.6. We will inform you if we believe your accounting records are insufficient for preparing financial statements and may recommend improvements.

1.2.7. We have a professional obligation to ensure financial statements are prepared in accordance with applicable accounting principles. If accounting policies or principles used are inappropriate, we will not compile the statements.

1.2.8. If we believe the financial statements may be misleading, we will discuss necessary adjustments or disclosures with you. If these are not made and we consider the statements misleading, we will withdraw from the engagement.

1.2.9. We may request written confirmation of oral information or explanations provided to us during our work.

1.2.10. Where relevant, we will convert the financial statements into iXBRL format for HMRC filing. We will use professional software to apply standard data tags and will seek your approval for non-standard or judgemental tags. You remain legally responsible for the iXBRL submission and will be required to approve the tagging report.

PART 2 C – PREPARATION OF NON-STATUTORY FINANCIAL STATEMENTS IN COMPLIANCE WITH A FINANCIAL REPORTING FRAMEWORK

SCHEDULE OF SERVICES

This schedule should be read in conjunction with the engagement letter and the terms of business.

1. RESPONSIBILITIES AND SCOPE FOR FINANCIAL STATEMENTS PREPARATION SERVICES

• Your Responsibility for the Preparation of Financial Statements

1.1.1. You are responsible for providing us with full access to all accounting records, supporting documentation, and any other relevant financial information necessary for the preparation of the financial statements. This includes minutes of management meetings and any other material disclosures relevant to the compilation.

1.1.2. You are responsible for ensuring, to the best of your knowledge and belief, that all financial information used internally or externally is complete and accurate. You must also ensure that the activities of the entity are conducted honestly, the assets are safeguarded, and reasonable steps are taken to prevent and detect fraud or other irregularities.

1.1.3. You are responsible for reviewing and approving the financial statements to confirm that they have been prepared on an appropriate accounting basis, and for confirming that all necessary information and explanations have been provided to us.

1.1.4. You are responsible for ensuring that the entity complies with all applicable laws and regulations, and for identifying, preventing, and addressing any instances of non-compliance.

1.2. Our Responsibilities as Accountants

1.2.1. You have engaged us to assist with the preparation of financial statements that comply with relevant accounting standards and legislation, and that provide sufficient and appropriate information for taxation and other statutory purposes. We will compile the financial statements based on your accounting records and the information and explanations you provide.

1.2.2. We will plan our work on the basis that no statutory report (such as an audit or assurance report) is required unless you notify us otherwise in writing. We may carry out such enquiries or procedures as we consider appropriate but are not required to carry out procedures necessary for assurance engagements unless specifically agreed in writing.

1.2.3. Our work does not constitute an audit under International Standards on Auditing (UK) or other similar standards. As such, we cannot provide assurance that the financial statements are free from material misstatement due to fraud, error, or other irregularities, nor will we assess the adequacy of internal controls.

1.2.4. Since we are not undertaking an audit or assurance engagement, we cannot express any opinion as to whether the financial statements present a true and fair view.

1.2.5. We will advise you on whether your records are sufficient for the preparation of financial statements and recommend improvements where we identify deficiencies during our work.

1.2.6. We have a professional duty to prepare financial statements in accordance with generally accepted accounting principles based on the records and information you provide. The selected accounting policies will be disclosed in the notes to the financial statements. We will not compile financial statements if we believe the accounting policies used are inappropriate.

1.2.7. We also have a professional responsibility not to allow our name to be associated with financial information that we believe may be misleading. If we become aware of such concerns, we will discuss them with you to agree appropriate adjustments or disclosures. If these are not made or we are not provided with sufficient information, we will withdraw from the engagement.

1.2.8. As part of our normal procedures, we may request that you confirm in writing any oral representations made during the course of our work.

1.2.9. Where applicable, and where you have instructed us to do so, we will convert the financial statements into the iXBRL (inline eXtensible Business Reporting Language) format required by HMRC. We will use professional software to apply standard tags without prior approval, consulting you only on non-standard or judgement-based tags. You remain legally responsible for the accuracy of the iXBRL data, and we will provide a tagging report for your approval.

PART 2 D – PREPARATION AND MAINTENANCE OF ACCOUNTING RECORDS

SCHEDULE OF SERVICES

This schedule should be read in conjunction with the engagement letter and the terms of business.

1. RESPONSIBILITIES AND SCOPE FOR ACCOUNTING SERVICES

• Your Responsibility to Provide Information

1.1.1 You agree to make available, on a timely basis and as requested, all accounting records and related financial information necessary for us to carry out our work. This includes, but is not limited to, supporting documents and minutes of management meetings. You also undertake to provide full and accurate explanations and disclosures relevant to the preparation and maintenance of the accounting records.

1.1.2 You are responsible for ensuring, to the best of your knowledge and belief, that the financial information provided—whether for internal use or accounting purposes—is complete and accurate. You are also responsible for ensuring that business activities are conducted with integrity, that assets are adequately safeguarded, and that reasonable steps are taken to prevent and detect fraud or other irregularities.

1.1.3 It is your responsibility to ensure that the business complies with all relevant laws and regulations. This includes taking reasonable steps to prevent any instances of non-compliance and identifying and addressing any that may occur.

• Preparation and Maintenance of Accounting Records

Our Responsibilities

1.2.1 If you are subscribed to our monthly retainer service, we have agreed to undertake the following accounting and related services on your behalf:

• Maintain and update the accounting records of the business; and
• Complete postings to the nominal ledger.
• Maintain records of all receipts and payments;
• Perform monthly reconciliations of all bank balances with the respective bank statements;
• Provide a detailed listing of all ledger balances;

Your Responsibilities

1.2.2 You have agreed that you will:

• Maintain and reconcile the purchase and sales ledgers;
• Prepare stocktake details annually, including quantities, pricing, and totals, in a format that allows for verification against supplier invoices / Provide us with the valuation report prepared by your independent stock takers; and
• Prepare a summary of work-in-progress at the accounting date and supply the underlying documentation and information used in its compilation.

PART 2 E – PERSONAL TAX – INDIVIDUALS, SOLE TRADERS AND COUPLES

SCHEDULE OF SERVICES

This schedule should be read in conjunction with the engagement letter and the terms of business.

RESPONSIBILITY AND SCOPE FOR PERSONAL TAX SERVICES

1.1 Recurring Compliance Work

1.1.1 We will prepare your self-assessment tax return(s), including any supplementary pages required, based on the information and explanations provided by you. This includes where applicable, income as a deemed employee under the IR35/off-payroll working rules. Once we have received your formal approval, we will submit the return(s) to HM Revenue & Customs (HMRC).

1.1.2 If you operate a business as a sole trader, we will prepare your business accounts using either generally accepted accounting principles or the cash basis (as elected), based on records and other relevant information you or your representatives provide.

1.1.3 If you receive property income, we will calculate the rental income and allowable expenses, applying either the cash basis or accruals basis depending on your election and applicable thresholds.

1.1.4 We will calculate your income tax, National Insurance contributions (NICs), and capital gains tax (CGT) liabilities and advise on payment amounts and due dates. We will also review HMRC’s tax calculations, submit any required repayment claims, and advise on late payment interest or penalties if applicable.

1.1.5 Based on information provided by you, we will advise on relevant tax claims and elections (excluding tax credits and universal credit unless separately instructed). Where authorised, we will submit these to HMRC on your behalf.

1.1.6 We will review PAYE coding notices provided to us and advise accordingly.

1.1.7 If instructed and subject to an additional fee, we will prepare and submit in-year CGT returns for disposals of UK residential property, and if applicable, non-residential property and property-rich entities for non-residents. These must be submitted within 60 days of completion.

1.2 Additional Services and Exclusions

1.2.1 Our standard services are limited to those outlined above. Any additional work you ask us to carry out will be agreed upon separately, potentially under a new engagement letter.

Examples of additional services include, but are not limited to:

• Advice on drawing funds from personal service companies under IR35;
• Guidance on cash or accruals basis accounting and related elections;
• Assistance with Making Tax Digital for Income Tax Self-Assessment (MTD ITSA);
• Advice on aligning your accounting year with the tax year and claiming overlap relief;
• Preparation and submission of in-year CGT returns;
• Advice on one-off transactions, such as asset sales;
• Trust registration requirements;
• Responding to HMRC enquiries or investigations;
• Amending previously submitted tax returns;
• VAT registration and compliance (UK and non-UK);
• Guidance on tax credits and universal credit, subject to household circumstances.

1.2.2 If specialist advice is required, we may refer you to a qualified specialist.

1.3 Legal and Policy Changes

1.3.1 Advice is based on current laws and practices at the time it is given. We are not responsible for the consequences of relying on outdated advice if laws or your circumstances change.

1.3.2 We do not accept liability for losses arising from legal or policy changes announced after the advice was given.

1.4 Your Responsibilities

1.4.1 You are legally responsible for:

• Ensuring the completeness and accuracy of your tax returns;
• Filing returns on time;
• Paying taxes by the due dates.

1.4.2 You must review and approve your tax return(s) before submission. This responsibility cannot be delegated.

1.4.3 You remain responsible for any errors in returns submitted without your formal approval if they are based on your instructions.

1.4.4 To assist us effectively, you agree to:

• Fully disclose all sources of income, deductions, and relevant transactions;
• Provide accurate and complete information;
• Notify us promptly of property disposals and associated costs, especially if you may be non-resident for CGT purposes;
• Authorise us to contact relevant third parties where needed;
• Submit required information in time for us to meet filing deadlines.

1.4.5 You must inform us of any material changes in your circumstances that could impact your tax position.

1.4.6 If HMRC sends you an agent authorisation code or form 64-8, you agree to share it with us promptly to enable us to act on your behalf.

1.4.7 You agree to share any correspondence from HMRC with us in a timely manner to allow for a proper response.

1.4.8 You are responsible for monitoring your business turnover for VAT registration thresholds. If you instruct us to assist, we will help you register within the required time frame, subject to timely notification.

1.4.9–1.4.11 If you import or supply goods/services within the EU and are subject to VAT rules such as IOSS, OSS or local VAT registration, it is your responsibility to comply. We can advise if instructed.

1.4.12 You are responsible for employment taxes and for assessing the employment status of anyone working for you, including under the off-payroll rules if applicable. We can advise on this only if separately engaged to do so.

1.5 Joint Clients (Couples)

1.5.1 Where we act for you and your spouse/partner, both parties agree that we may communicate with either of you regarding your shared or individual tax affairs unless instructed otherwise. This includes matters such as the high income child benefit charge, marriage allowance, and CGT on jointly held assets.

1.5.2 Each of you confirms that any instruction, information or signature provided by one of you is given on behalf of both, unless explicitly stated otherwise. If a conflict of interest arises, we may need to cease acting for one or both of you or refer you for separate advice.

PART 2 F – TRUSTS AND ESTATES TAX RETURNS

SCHEDULE OF SERVICES

This schedule should be read in conjunction with the engagement letter and the terms of business.

1. RESPONSIBILITIES AND SCOPE FOR TRUST / ESTATE TAX RETURN SERVICES

• Ongoing Compliance Services

1.1.1 We will prepare the trust’s/ estate’s self-assessment tax return and any required supplementary pages, as well as inheritance tax returns, based on the information and explanations you provide. Once you approve the draft, we will file the return with HMRC on your behalf.

1.1.2 We will maintain the accounting records for the trust/ estate using the information provided by you or your representatives, for use in preparing annual accounts and tax returns.

1.1.3 We will prepare income, expenditure, and capital accounts (with a balance sheet) from the accounting records and information provided, and submit these for your approval.

1.1.4 We will calculate the income tax, capital gains tax, and inheritance tax liabilities of the trust / estate, advise you of payment amounts and deadlines, and alert you to any late payment interest or penalties. We will also verify HMRC’s tax calculations and initiate refund claims if applicable.

1.1.5 We will advise on claims and elections relating to the tax return, based on the information you supply. If instructed, we will submit these to HMRC in the required format.

1.1.6 Where applicable, we will prepare and file in-year capital gains tax (CGT) returns for disposals of UK residential property (and, for non-UK resident trusts, UK non-residential property or property-rich entities), subject to a separate fee. Please note returns must be filed within 60 days of completion.

1.1.7 Where income or capital distributions to beneficiaries are required under the terms of the trust / will, we will assist in preparing the necessary documentation.

1.1.8 Trustees must maintain accurate records of beneficial ownership and comply with trust registration obligations under anti-money laundering regulations.

If not yet registered with HMRC:

• 1.9 Trustees will be responsible for completing trust registration and confirming registration for tax purposes.

or

• 1.10 We will register the trust using the information you provide, assuming all data is received within reasonable time based on mutually discussed fees.

If already registered:

• 1.11 Trustees will be responsible for updating or confirming registration details annually.
  or
• 1.12 We will update or confirm registration details using information you provide, subject to timely receipt based on mutually discussed fees.

• Foreign Account Tax Compliance Act (FATCA) and Common Reporting Standard (CRS)

• Under FATCA (US regulations), the trust must determine whether it is a Financial Institution (FI) or a Non-Financial Foreign Entity (NFFE). If it is an FI, registration with the IRS and annual HMRC reporting is required.

• Similar obligations may arise under CRS with over 90 other jurisdictions.

• We can assist with categorisation and compliance under FATCA/CRS based on mutual agreed fees. If the trust is an FI, we will help assess system adequacy for identifying foreign beneficiaries and support the IRS registration. You agree to provide all necessary information to complete the annual return to HMRC accurately.

• Excluded, Ad Hoc, and Advisory Services

1.3.1 Our services are limited to those outlined above. Any additional work will only be undertaken upon request and may be subject to separate engagement terms and fees. Examples include:

• Guidance on HMRC trust registration for non-taxable trusts
• Inheritance tax charge advice and payment schedules
• Advice on one-off transactions (e.g., asset sales)
• Preparation of inheritance tax forms
• HMRC enquiries into tax returns
• HMRC assessments related to inheritance tax

1.3.2 Where specialist advice is required, we may refer you to a third party or seek advice on your behalf.

1.4 Legal and Regulatory Changes

1.4.1 Advice previously given should not be relied on without checking it remains valid following any legal, policy, or circumstantial changes.

1.4.2 We accept no liability for losses resulting from changes in law, practice, or policy announced after our advice is given.

1.5 Your Responsibilities

1.5.1 As trustees / executors, you are legally responsible for:

• Ensuring tax returns are correct and filed on time
• Paying tax on time
• Maintaining registration with HMRC’s Trust Registration Service

1.5.2 Legal responsibility for approving the return cannot be delegated. You agree to review and confirm accuracy before approval.

1.5.3 You remain responsible for errors in unapproved returns based on the data provided to us.

1.5.4 You agree to:

• Disclose all relevant income, charges, allowances, and capital transactions
• Provide true, complete, and timely information
• Provide trust registration/update data as required
• Notify us within 30 days of any distributions
• Disclose details of UK residential property disposals before completion
• Authorise contact with third parties if necessary
• Supply all relevant information at least 15 days before the deadline. A surcharge may apply for late submissions
• Provide sufficient information for timely inheritance tax return preparation
• Supply receipts, payments, and invoices to prepare accounts

1.5.5 Keep us informed of any material changes affecting tax liabilities. If in doubt, consult us.

1.5.6 Forward your HMRC agent code or signed form 64-8 to allow us to act as your tax agent.

1.5.7 Send us all HMRC communications promptly to ensure timely handling within statutory limits.

1.5.8–1.5.12 Additional VAT, IOSS/OSS, and payroll obligations apply depending on your specific activities. You remain responsible for compliance unless we are separately engaged to assist.

1.5.13 Under the Trustee Act 2000, trustees are responsible for regularly reviewing the trust’s investments and maintaining a clear investment policy.

• We will maintain the accounting records of the trust/ estate on your behalf from the information and explanations provided to us by you, or by others on your behalf, for the purposes of preparing the annual trust/ estate accounts and tax returns.

• We will prepare the income and expenditure and capital accounts together with a balance sheet of the trust/ estate from the accounting records and other information and explanations provided by you, or by others on your behalf, and will obtain your approval of the accounts.

• We will calculate the income tax and capital gains tax and inheritance tax liabilities of the trust/ estate and will advise you how much you should pay and when. We will advise you on the interest and penalty implications if tax is paid late. We will also check HMRC’s calculations of the tax liabilities and initiate repayment claims if tax has been overpaid.

• We will advise you on possible tax-return-related claims and elections arising from information supplied by you. If instructed by you, we will make such claims and elections in the form and manner required by HMRC.

• There is an in-year capital gains tax (CGT) reporting and payment requirement for disposals of UK residential property. Where instructed, and subject to a separate fee, we will prepare the in-year return for each disposal, calculate the CGT due and submit the return to HMRC.

• If the terms of the trust/ will require income or capital payments to be made to the beneficiaries, we will assist you in preparing all necessary forms relating to such payment.

• Under anti-money laundering legislation trustees are obliged to maintain accurate and up-to-date records in writing of beneficial owners and report specified information about the trust to HMRC.

If the trust or estate is not already registered on HMRC’s trust register

• We will register the trust along with details of settlors, trustees and beneficiaries on the trust register maintained by HMRC using the information provided by you. Provided the necessary information is supplied by within 30 days of the deadline we will register the trust along with the appropriate details within the time limits required.

If the trust or estate is already registered on HMRC’s trust register

• We will update or confirm that no change is required to the details of settlors, trustees and beneficiaries on the trust register maintained by HMRC using the information provided by you. Provided that the necessary information is supplied within 30 days of the deadline we will update/confirm the appropriate details on HMRC’s trust register within the time limits required.

Note : Not all clients will be within the scope of FATCA

• Foreign Account Tax Compliance Act (FATCA) and Common Reporting Standards (CRS) 
  • International Tax Compliance (United States of America) Regulations 2014 require the trust to determine whether it is a Financial Institution (FI) or a passive or active Non-Financial Foreign Entity (NFFE). If the trust is a Financial Institution, it must register with the US Internal Revenue Service (IRS) and file annual returns with HMRC.
  • Similar arrangements have or will come into force with more than 90 other countries. This is, or will be, based on Common Reporting Standards (CRS).

• We will assist you with your responsibilities under the International Tax Compliance (United States of America) Regulations 2013 as a result of the USA Foreign Account Tax Compliance Act (FATCA).

• We will assist with the categorisation of the trust into either a Financial Institution (FI) or a Non-Financial Foreign Entity (NFFE) that is either passive or active.

If the trust is determined to be a Financial Institution, we can/ will assist in ensuring that the trust has adequate systems to identify beneficiaries that are foreign citizens (either US or other countries under Common Reporting Standards (CRS)), who are or who may become beneficiaries to whom payments may be made. We can also assist you with the initial online registration with the IRS

• You agree to provide us sufficient information to enable the annual return to HMRC to be accurately completed. You must provide us with all the information that we may require from time to time to enable us to advise you properly, and the provision of adequate systems shall always remain your ultimate responsibility.

• Excluded, ad hoc and advisory work

• 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. If appropriate we will agree with you a separate fee for any such work that you instruct us to undertake. Examples of such work that you may wish to instruct us to undertake include:

1. advising on whether trusts – including any non-taxable trusts – should be registered on HMRC’s trust registration service (NB the deadline for registering non-taxable trusts has been extended to 1 September 2022);
2. advising you of the occasions of charge to inheritance tax, the basis of the charge and when the tax liability is due for payment;
3. advising on ad hoc transactions (for example the sale of assets held by the trust /estate);
4. preparing inheritance tax returns;
5. dealing with any enquiry opened into the trust’s/ estate’s tax returns by HMRC; and
6. dealing with any enquiries and/or assessments raised by HMRC in relation to inheritance tax.

• If specialist advice is required, we may need to seek this from, or refer you to, appropriate specialists.

• Changes in the law, in practice or in public policy

• 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, practice, public policy or in your circumstances.

• We will accept no liability for losses arising from changes in the law (or the interpretation thereof), practice or public policy that are first published after the date on which the advice is given.

• Your responsibilities

• As trustees/ executors you have legal responsibility for:

1. ensuring that the trust’s/ estate’s tax returns are correct and complete;
2. filing any returns by the due date;
3. paying tax on time; and
4. ensuring that the trust is recorded on HMRC’s Trust Registration Service.

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

• Legal responsibility for approval of the return cannot be delegated to others. As Trustees/ Executors you agree to check that the returns that we have prepared 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.

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

1. that all returns are to be made on the basis of full disclosure of all sources of income, charges, allowances and capital transactions;
2. to provide all information necessary for dealing with the trust’s/ estate’s taxation affairs; we will rely on the information being true, correct and complete and will not audit the information;
3. to provide all information necessary for dealing with the trust’s/ estate’s registration and updates on HMRC’s trust register, eg details of settlors, beneficiaries and trustees; we will rely on the information being true, correct and complete and will not audit the information;
4. to advise us of distributions made within 30 days of such an event;
5. to provide full details of all UK residential property disposals including associated costs/valuations prior to disposal. Where you consider that you will be non-UK resident in the tax year of disposal, full details of all UK property disposals, including disposals of shares in property rich companies, must be advised prior to exchange of contracts on any property disposal. If information is received after this, we cannot guarantee that we can provide advice on the amount of capital gains tax due or submit an in-year return within 30 days of the completion of the disposal;
6. to authorise us to approach such third parties as may be appropriate, for information that we consider necessary to deal with the trust’s/ estate’s taxation affairs;
7. to provide us with information in sufficient time for the trust’s/ estate’s self-assessment tax returns to be completed and submitted by the due date; to do this, we need to receive all relevant information at least 30 days before the due date; if feasible, we may agree to complete your return within a shorter period but may charge an additional fee mutually discussed for so doing;
8. to provide us with information in sufficient time for the trust’s/ estate’s inheritance tax returns to be completed and submitted by the due dates; and
9. to provide us with records of receipts & payments, records of invoices issued & received, and all other information to enable us to prepare income & expenditure and capital accounts.

• You will keep us informed of material changes in circumstances that could affect the income, capital gains and inheritance tax liabilities of the trust/ estate. If you are unsure whether the change is material, please tell us so that we can assess its significance.

• 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 agent with HMRC.

• You will forward to us HMRC statements of account, copies of notices of assessment, letters and other communications received from HMRC by you in time to enable us to deal with them as may be necessary within the statutory time limits. Although HMRC have the authority to communicate with us when form 64-8 has been submitted, it is still 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.

• If you carry on a business as trustees/ executors and make supplies for VAT purposes, you are responsible for monitoring the 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 the UK VAT registration threshold is exceeded, and you would like us to assist in notifying HMRC of your liability to be VAT registered, we will be pleased to assist in the VAT registration process. Please notify us of your instructions to assist with the VAT registration in good time to enable a VAT registration form to be submitted within the time limit of one month following the month in which the VAT registration threshold in force at that time was exceeded. We will not be responsible if you fail to notify us in time and, as a result, incur a late registration penalty. The same applies for equivalent non-UK taxes.

• You are responsible for employment taxes, pensions (including auto-enrolment) and the assessment of the employment status of your workers. If your business is not small, you are responsible for assessing the employment status under the off-payroll working rules of any contractors providing services to your business and for employment taxes if they are deemed employees. If you do not understand what you need to consider or what action you need to take, please ask us. We will not be in a position to assist you in complying with your responsibilities if we are not engaged to provide such a service. We are not responsible for any penalty that is incurred.

• You are reminded that, under the Trustee Act 2000, it is your responsibility to regularly review the trust investments and to have a clear investment policy.

PART 2 G – PARTNERSHIP TAX RETURNS

SCHEDULE OF SERVICES

This schedule should be read in conjunction with the engagement letter and the terms of business.

1. RESPONSIBILITIES AND SCOPE FOR PARTNERSHIP TAX RETURN SERVICES

• Recurring Compliance Work

1.1.1 We will prepare the partnership’s self-assessment tax return and accompanying annual partnership statement, including all relevant supplementary pages, using the information and explanations provided by the partnership. Once we receive your formal approval, we will submit the return to HM Revenue & Customs (HMRC).

1.1.2 We will prepare the partnership’s business accounts in accordance with the agreed and applicable accounting framework, using the books, records, and other information provided by you or by third parties acting on your behalf.

1.1.3 Based on the partnership accounts, we will compute the income and capital gains figures for inclusion in the partnership tax return.

1.1.4 If requested, we will advise you, in your capacity as partners, on potential claims and elections relating to the partnership tax return, based on the information provided in the format and manner required by HMRC.

1.1.5 Where instructed, we will provide each partner—or their agent—with their respective allocation from the partnership return, derived from the partnership statement, to enable them to complete their individual self-assessment tax returns.

1.1.6 This engagement covers work relating solely to the tax affairs of the partnership. Services related to the individual partners (e.g., preparation of their personal tax returns or associated elections and claims) will be covered under a separate engagement letter.

• Excluded, Ad Hoc, and Advisory Work

1.2.1 Our services are limited to those described above. Any additional taxation, advisory, or one-off services that you instruct us to perform will be considered separately and may be subject to a separate engagement letter at our discretion. A separate fee will be agreed with you for such work. Examples include, but are not limited to:

1. a) Advising on Making Tax Digital for Income Tax Self-Assessment (MTD ITSA), which will require digital recordkeeping and quarterly/annual submissions via compatible software. MTD ITSA will be mandatory for general partnerships from 6 April 2025 for trading and property income;
   b) Advising on the potential benefits and implications of aligning your partnership’s accounting year end with the tax year, and assisting with the transition and overlap relief claims;
   c) Advice on one-off transactions (e.g., acquisition or disposal of assets);
2. d) Advice on the use of the cash basis for accounting, including assistance with making the relevant election;
3. e) Handling HMRC enquiries into the partnership’s tax return;
4. f) Preparation of amended tax returns and related correspondence with HMRC.

1.2.2 Where specialist advice is needed, we may either seek it from, or refer you to, appropriately qualified professionals.

• Changes in Law, Practice, or Public Policy

1.3.1 We do not accept liability if you act on our prior advice without first confirming that it remains valid in light of changes to legislation, HMRC practice, public policy, or your own circumstances.

1.3.2 We are not liable for any losses arising from changes in law (or its interpretation), practice, or policy that occur after the date the advice was provided.

• Your Responsibilities

• The partners are legally responsible for:

1. a) Ensuring the partnership tax returns are accurate and complete;
2. b) Filing returns by the statutory deadline; and
3. c) Paying tax liabilities on time.

Failure to meet any of these obligations may result in interest and/or penalties.

1.4.2 Legal responsibility for reviewing and approving the tax return cannot be delegated. You must ensure the returns and statements we prepare are accurate and complete before approval.

1.4.3 You remain responsible for any errors in returns submitted without formal approval, based solely on the data you provided to us.

1.4.4 To allow us to fulfil our responsibilities, you agree:

1. a) To ensure full disclosure of all income sources, charges, allowances, and capital transactions in your returns;
2. b) To provide complete and accurate information and documents relating to the partnership’s tax affairs; we will rely on this information and will not audit it;
3. c) To authorise us to contact third parties for information necessary to address the partnership’s tax obligations; and
4. d) To provide all necessary information in good time to allow us to complete and file the tax return by the due date. To meet this timeline, we require all relevant documentation by reasonable time.

1.4.5 You must inform us of any material changes in circumstances that may impact the partners’ tax positions—such as changes in partnership structure or profit-sharing arrangements. If you are unsure whether a change is material, please consult us.

1.4.6 HMRC will send an agent authorisation code valid for 30 days. Please forward this to us promptly so we may register as your tax agent with HMRC.

1.4.7 You agree to send us any HMRC correspondence promptly so we can respond within statutory deadlines. Although HMRC may deal directly with us once form 64-8 is submitted, they are not required to send us all communications—so your cooperation is essential.

1.4.8 You are responsible for monitoring the partnership’s turnover in relation to VAT thresholds. If you are unsure of your obligations, please ask us. If the turnover exceeds the UK VAT registration threshold and you would like our help with registration, please notify us in good time to allow submission of the required VAT registration form within one month of exceeding the threshold. We will not be responsible for penalties if you fail to notify us in time. The same applies to similar taxes in other jurisdictions.

1.4.9 You are responsible for employment-related obligations, including payroll taxes, pensions (e.g., auto-enrolment), and assessing the employment status of workers. If your business is not considered “small,” you must also assess contractors under the off-payroll working rules and handle employment taxes for deemed employees. If you need guidance, please contact us. Unless separately engaged, we are not responsible for assisting you with these obligations or any penalties incurred.

PART 2 H – LIMITED LIABILITY PARTNERSHIPS (LLP) TAX RETURN

SCHEDULE OF SERVICES

This schedule should be read in conjunction with the engagement letter and the terms of business.

1 RESPONSIBILITIES AND SCOPE FOR LIMITED LIABILITY PARTNERSHIPS (LLP) TAX RETURN SERVICES

1.1 Recurring compliance work

1.1.1 We will prepare the LLP’s self-assessment tax return, including the annual partnership statement and any supplementary pages required, based on the information and explanations provided by the LLP. Once we receive your formal approval, we will file the return with HM Revenue & Customs (HMRC).

1.1.2 We will compile the LLP’s business accounts in accordance with generally accepted accounting principles, using the books, records, and other relevant information supplied by you or on your behalf.

1.1.3 We will calculate the LLP’s income and capital gains based on the business accounts, for inclusion in the tax return.

1.1.4 If instructed, we will advise the LLP members on possible claims and elections related to the tax return, based on the information provided in the format required by HMRC.

1.1.5 If requested, we will provide each LLP member, or their agent, with a summary of their allocation from the partnership statement to assist in the preparation of their personal self-assessment tax returns.

1.1.6 Our work under this engagement is limited to the LLP’s tax affairs. Any services for individual members (such as their personal tax returns or related claims and elections) will be covered under a separate engagement letter.

1.2 Excluded, ad hoc, and advisory work

1.2.1 Our services under this agreement are limited to the scope described above. Any additional taxation, advisory, or ad hoc services will be outside this scope and provided only upon your specific instruction. Such services may require a separate engagement letter and fee arrangement. Examples of services you might engage us for include:

a) Advice on ad hoc transactions (e.g., sale or purchase of assets);

b) Handling enquiries into the LLP’s tax return opened by HMRC; and

c) Preparing amended returns and liaising with HMRC, if needed.

1.2.2 If specialist advice is necessary, we may consult with or refer you to relevant professionals.

1.3 Changes in the law, practice, or public policy

1.3.1 We will not be liable if you rely on advice we gave previously without first confirming with us that it remains valid following any change in law, practice, policy, or your specific circumstances.

1.3.2 We accept no liability for losses resulting from changes in legislation, its interpretation, practice, or policy first made public after we provided our advice.

1.4 Your responsibilities

1.4.1 LLP members are legally responsible for:

a) Ensuring that the LLP’s self-assessment tax returns are accurate and complete;
b) Submitting returns by the required deadlines; and

c) Paying any tax due on time.

Failure to do so may result in penalties and/or interest.

1.4.2 The legal responsibility for approving the tax return cannot be delegated. You are required to review and confirm the accuracy and completeness of the returns we prepare before giving your approval.

1.4.3 You remain responsible for errors in returns submitted without your approval, based solely on the information you have provided to us.

1.4.4 To support our work, you agree to:

a) Ensure full disclosure of all income sources, deductions, allowances, and capital transactions;
b) Provide all necessary documents and information concerning the LLP’s affairs — we will assume the accuracy and completeness of these and will not audit them;
c) Authorise us to obtain relevant information from third parties as required; and
d) Supply us with timely information to allow completion and filing of the LLP’s tax return by the due date, following the end of the tax year. To meet this deadline, all information must be received at least 15 days. If late, we may still complete the return but may apply an additional charge as may be mutually decided.

1.4.5 You must keep us informed of any material changes affecting the LLP’s tax position, such as changes in members or profit-sharing arrangements. If unsure whether a change is material, please let us know.

1.4.6 HMRC will issue an agent authorisation code valid for 30 days. Please send this to us immediately upon receipt so we can register as your agent with HMRC.

1.4.7 You agree to forward any correspondence from HMRC to us promptly. While HMRC may communicate directly with us upon receipt of form 64-8, they are not required to send us copies of all letters issued to you.

1.4.8 You are responsible for monitoring the LLP’s monthly turnover to assess whether it needs to register for VAT, if not already registered. If the threshold is exceeded and you would like us to handle VAT registration, please notify us in time. We can assist with the registration, provided we are instructed early enough to file within one month following the month in which the threshold was crossed. We are not liable for late registration penalties due to delayed notification. This applies equally to non-UK VAT regimes.

PART 2 I – CORPORATION TAX

SCHEDULE OF SERVICES

This schedule should be read in conjunction with the engagement letter and the terms of business.

1.1 Recurring Compliance Services

1.1.1 We will use commercial software to apply iXBRL tags to the financial statements as appropriate for submission via the HMRC gateway.

1.1.2 Where necessary, we will manually review and amend iXBRL tags if the software’s tagging is missing or inaccurate.

1.1.3 On request, we will provide you with a summary of the applied tags for your approval.

1.1.4 We will prepare the company’s corporation tax self-assessment (CTSA) return. After receiving your formal approval and signature, we will submit the return to HMRC.
If you provide pre-tagged accounts, please note we accept no liability for errors in tagging or any rejection of the iXBRL return by HMRC.

1.1.5 We will prepare the corporation tax computation and supporting schedules using the financial statements and information provided by you.

1.1.6 We will inform you of the corporation tax amount payable and relevant payment dates. Where applicable, we will initiate claims for overpaid tax and advise on late payment interest and penalties.

1.1.7 If instalment payments are due, we will notify you and, based on the information you provide, calculate quarterly instalments by the agreed date.

1.1.8 We will advise on relevant tax claims and elections arising from the information you provide. Where instructed, we will make such submissions to HMRC.

1.1.9 Our services under this engagement relate solely to the company. Any work for directors or shareholders personally will require a separate engagement.

• Excluded Services, Ad Hoc and Advisory Work

1.2.1 Our services are limited to those set out in section 1.1 unless we agree otherwise in writing. Additional work may be subject to a separate engagement and fee agreement.

Examples include:

• Advice on ad hoc transactions (e.g., asset sales or acquisitions)
• Calculation and advice on section 455 tax for director/shareholder loans
• R&D and other enhanced expenditure reliefs
• Capital allowance claims on property renovations
• Group allowance statements for carried-forward losses
• Corporate interest restriction returns
• Country-by-country reporting, senior accounting officer responsibilities, and tax strategy compliance
• Responding to HMRC enquiries or compliance checks
• Preparing and submitting amended tax returns and liaising with HMRC

1.2.2 (For engagements involving personal service companies)

Where applicable, we may also provide:

• Advice on deemed employment status under IR35 (see 1.2.3)
• Calculations of deemed employment payments and payroll reporting
• Payroll compliance under the off-payroll working rules
• Assistance determining company size and preparing status determination statements for contractors

1.2.3 We may refer you to a specialist or seek external advice where complex or specialist input is required.

1.3 Legal, Regulatory and Policy Changes

1.3.1 We are not responsible if you rely on prior advice without confirming its validity in light of subsequent legal, regulatory, or policy changes.

1.3.2 We accept no liability for losses arising from legal or policy changes published after our advice is given.

1.4 Your Responsibilities

1.4.1 As company directors, you are legally responsible for:

• Ensuring tax returns and iXBRL accounts are accurate and complete
• Submitting returns on time
• Paying tax liabilities on or before the due date

Failure to do so may result in penalties and interest.

• You cannot delegate responsibility for approving the tax return. You must review and approve the return we prepare before submission.

1.4.3 You remain responsible for any errors in submitted returns, even if you do not formally approve them.

1.4.4 To enable us to perform our work, you agree to:

• Provide finalised iXBRL accounts [prepared internally or by third parties]. You are fully responsible for the accuracy, consistency, and completeness of the tagging.
• Ensure full disclosure of all taxable income, deductions, and capital transactions
• Provide complete and accurate records and documentation
• Authorise us to liaise with third parties as necessary
• Supply all required information by reasonable time to allow timely completion of the CTSA return. Additional fees may apply for urgent work.
• Submit projected financial information no later than four weeks before each instalment payment deadline
• Disclose director/shareholder loans and repayments within three months of the relevant year-end

1.4.5 Notify us of any material changes affecting your tax position. If unsure, please seek our guidance.

1.4.6 You will receive an HMRC agent authorisation code (valid for 30 days). Please send it to us promptly so we can register as your agent.

1.4.7 Forward to us all HMRC correspondence, including statements, assessments, and letters, in a timely manner.

1.4.8 You are responsible for monitoring turnover for VAT registration purposes. If registration is required, you must instruct us in good time to ensure a timely VAT registration application. We are not responsible for penalties resulting from late registration.

1.4.9 You are responsible for PAYE, NIC, pensions, auto-enrolment, and determining employment status. If your business is not small, you must comply with the off-payroll working rules for contractors. Please consult us if you need support—we cannot assist unless formally engaged, and we are not responsible for any related penalties.

1.5 Personal Service Companies

1.5.1 We will assist you in determining whether IR35 applies to engagements undertaken by the company.

1.5.2 Where needed, we may refer you to a specialist for further advice.

PART 2 J-A – PAYROLL SERVICES
(NO OFF PAYROLL WORKING)

SCHEDULE OF SERVICES

This schedule should be read in conjunction with the engagement letter and the terms of business.

1       RESPONSIBILITIES AND SCOPE FOR PAYROLL SERVICES

• Recurring compliance work

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

1. calculating the pay as you earn (PAYE) income tax deductions, including at the Scottish and Welsh rates of income tax, if applicable;
2. calculating the employees’ national insurance contributions (NIC) deductions;
3. calculating the employer’s NIC liabilities;
4. calculating statutory payments, for example, statutory sick pay and/or statutory maternity pay;
5. calculating reclaims of statutory payments, for example, maternity payments
6. calculating employee and employer pension contributions for employees who are members of workplace pension schemes (including those who are auto-enrolled) on the basis of the information that you provide to us;
7. processing any employee and employer pension contribution refunds through the payroll on the basis of the information that you provide to us.
8. calculating other statutory and non-statutory deductions including employment allowance, apprenticeship levy; and
9. submitting information online to HM Revenue & Customs (HMRC) under Real Time Information (RTI) for PAYE.

• Ancillary payroll services

• Before the time of payment through the payroll or due date, we will prepare and send to you the following documents for delivering information to HMRC:

1. payroll summary report showing the reconciliation from gross to net for each employee and all relevant payroll totals;
2. Full Payment Submission (FPS) for taxable pay and payrolled benefits-in-kind and expenses for each employee;
3. a payslip for each employee;
4. a form P45 for each leaver;
5. a report showing your PAYE and NIC liability, student loan repayments, apprenticeship levy and due date for payment; and
6. a workplace pension contributions report showing
7. i) any 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;
8. ii) any employee pension contribution refunds payable to any employee; and

iii) any employer pension contribution refunds due to you for any employee who has ceased membership of the scheme(s).

• We will submit FPS online to HMRC after the data to be included therein has been approved/on the basis of the data provided] by you. (FPS must normally reach HMRC on or before the contractual payday, i.e, the date that employees are entitled to be paid) but we will file it for you on, or before, the actual day that monies change hands if you have made us aware of that date in order to be compliant with PAYE regulations. You must ensure the data provided to us is complete and accurate and your attention is drawn to your legal responsibilities as set out below.

• For each tax month we will prepare, if appropriate, an Employer Payment Summary (EPS) from the information and explanations that you provide to us. (Examples of EPS data include statutory payments, employment allowance, construction industry scheme deductions , apprenticeship levy allowance allocated to that PAYE scheme and apprenticeship levy payable to date and confirmation that no payments were, or will be, made to employees during that tax month or for future tax months.)

• We will submit the EPS online to HMRC after the data to be included therein has been approved/on the basis of the data provided by you. (The EPS must reach HMRC by the 19th of the month following the tax month to which it relates.) You must ensure that the data provided to us is complete and accurate and your attention is drawn to your legal responsibilities as set out below.

• At the end of the tax year we will:

1. prepare the final FPS (or EPS) and submit this to HMRC after the data to be included therein has been approved/on the basis of the data provided by you; (the due date for submitting final FPS is on or before the last actual payday of the tax year (however as made clear above we will still require to know the contractual pay day too as that is held within the FPS), failing which, the final EPS for the year must reach HMRC by 19 April following the end of the tax year;) you must ensure that the data provided to us is complete and accurate and your attention is drawn to your legal responsibilities as set out below;
2. prepare and send to you Form P60 for each employee on the payroll at the year-end so you can give them to employees by the statutory due date of 31 May following the end of the tax year;
3. prepare and send to you a statement for every employee for whom benefits-in-kind have been payrolled identifying every benefit provided to each employee during the tax year and the cash equivalent of each benefit treated as PAYE income so you can give them to employees by the statutory due date of 31 May following the end of the tax year;
4. give you details of the Class 1A NIC on payrolled benefits-in-kind which will need to be accounted for on form P11D(b) and the due date for payment;
5. give you details of the Class 1A NIC on expenses accounted for in the payroll which will need to be accounted for on form P11D(b) and the due date for payment;
6. give you the figures that need to be included on forms P11D to account for income tax in respect of expenses for which Class 1 NIC has been accounted for in the payroll.

• 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. Anything that you receive in your PAYE online account should be forwarded to us for action.

• We will submit national insurance number (NINO) verification requests as appropriate to verify or obtain a NINO for a new employee.

• Any enquiries from individual employees regarding their pay or other payroll details will be referred back to you.

• Excluded, ad hoc and advisory work

• 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. Examples of such work that you may wish to instruct us to undertake include:

1. work in connection with employee workplace pension schemes other than that detailed above including helping with setting up and administering workplace pension schemes, including referring you to appropriate specialists where necessary;
2. agreeing with you which employer-provided benefits-in-kind will be processed through the payroll and for which employees, processing through the payroll cash equivalent notional amounts on employee benefits-in-kind, notifying HMRC of in-year changes, advising you on the payment of associated Class 1A NIC, preparing and submitting return P11D(b) and notifications to employees;
3. ensuring that all employees are paid at least the national living wage / national minimum wage;
4. helping you to ascertain whether you are eligible to claim employment allowance and/or allocate employment allowance across your multiple or associated/connected companies’ PAYE schemes;
5. helping you to allocate apprenticeship levy allowances across your multiple or associated/connected companies’ PAYE schemes;
6. preparing and submitting returns P11D and P11D(b) for employee benefits-in-kind and expenses and advising on the payment of associated Class 1A NIC (such work, if undertaken, is covered in a separate schedule of services);
7. dealing with any compliance check or enquiry by HMRC or any other official compliance body into the payroll data submitted and corresponding with HMRC or other such body as necessary;
8. preparing and submitting any amended returns or data for previous tax years;
9. assisting you in the operation of the Construction Industry Scheme (CIS) for subcontractors;
10. conducting PAYE, and benefits and expenses health checks; and

1. advising on ad hoc transactions, for example, termination payments to employees.

• If specialist advice is required, we may need to seek this from, or refer you to, appropriate specialists.

• Changes in the law, in practice or in public policy

• 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, practice, public policy or in your circumstances.

• We will accept no liability for losses arising from changes in the law (or the interpretation thereof), practice or public policy that are first published after the date on which the advice is given.

• Your responsibilities

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

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

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

• Employers cannot delegate these legal responsibilities to others. You agree to check that submissions 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.

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

1. that all information required to be delivered online is submitted on the basis of full disclosure;
2. 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;
3. 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);
4. to advise us in writing of changes of payroll pay dates;
5. to notify us at least 7 working days or such other period as agreed with us before the payroll pay 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 starter checklist showing full names, address, date of birth, gender, national insurance number, start date, etc) and details of their remuneration package 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 and qualifying earnings are payable;
• names and dates of birth of all apprentices aged under 25;
• names and dates of birth of all employees aged under 21;
• all changes to remuneration packages including benefits-in-kind to be payrolled;
• employee expenses which need to be included in payroll to account for either income tax or Class 1 NIC or both;
• expenses for each employee if the expense is to be reimbursed gross through payroll as an addition to net pay;
• information necessary to enable us to calculate statutory payments, ie, statutory sick pay, statutory maternity pay, statutory adoption pay, statutory paternity pay, statutory shared parental pay, statutory parental bereavement pay;
• irregular and/or ad hoc payments and the dates to be paid; and
• all leavers, their annual salary before any salary sacrifices, how often paid, unworked notice period, contractual payment in lieu of notice (PILON), date of termination of employment, age, number of years’ service, the last payment prior to termination and when paid, and the components parts of the termination package, including statutory redundancy pay, compensation for loss of office, any bonus payable on termination and any payments made after the leaving date.

1. to confirm that you have reviewed your entitlement to the employment allowance and confirm that you wish us to make the legal declaration claim on your behalf;
2. to tell us the value of the apprenticeship levy allowance that is being allocated in the range £0 to £15,000 to each PAYE scheme – indicating payroll name and PAYE scheme reference;
3. to notify us within 7 working days of your receiving or becoming aware of any opt-out notices or any other requests to cease membership of a scheme, so that we can cease to calculate any relevant pension contributions and process any required refunds;
4. to register with HMRC in advance of the tax year, to notify which benefits-in-kind are to be payrolled for which employees (as agents, we cannot do this);
5. 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;
6. to authorise us to approach such third parties as may be appropriate, for information that we consider necessary to deal with your payroll; 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.

• If the information required to complete the payroll services set out above is received later than the dates specified above or agreed with us, we will still endeavour to process the payroll and returns to meet the filing deadlines; but we will not be liable for any costs or other losses arising if the payroll is late or the returns are filed late in these circumstances.

• 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 as may be mutually discussed on case-to-case basis.

• 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. You should also keep a note of any telephone communication you have with HMRC’s tax credits helpline or DWP’s universal credits helpline, including the date and time of the call, and the name of the helpline operator(s).

PART 2 J-B – PAYROLL SERVICES
(INCLUDES OFF PAYROLL WORKING)

SCHEDULE OF SERVICES

This schedule should be read in conjunction with the engagement letter and the terms of business.

1             RESPONSIBILITIES AND SCOPE FOR PAYROLL SERVICES

• Recurring compliance work

1.1.1   We will prepare your UK payroll for each payroll period to meet UK employment tax

requirements, specifically:

1. calculating the pay as you earn (PAYE) income tax deductions, including at the Scottish and Welsh rates of income tax, if applicable;
2. calculating the employees’ national insurance contribution (NIC) deductions;
3. calculating the employer’s NIC liabilities;
4. calculating statutory payments, for example, statutory sick pay and/or statutory maternity pay;
5. calculating reclaims of statutory payments, for example, maternity payments;
6. calculating employee and employer pension contributions for employees who are members of workplace pension schemes (including those who are auto-enrolled) on the basis of the information that you provide to us;
7. processing any employee and employer pension contribution refunds through the payroll on the basis of the information that you provide to us;
8. calculating other statutory and non-statutory deductions including employment allowance, apprenticeship levy; and
9. submitting information online to HMRC under Real Time Information (RTI) for PAYE.

• Where you have contractors working for your company/ business through their own personal service companies, we will help you to determine whether or not your company/ business is “small” under the off-payroll working rules.

• Where you have contractors working for your company/ business through their own personal service companies and your company/ business is not “small” under the off-payroll working rules, we will help you to determine the deemed employment status of those contractors.

• Where you have contractors working for your company through their own personal service companies and your company is not “small” under the off-payroll working rules we will help you prepare employment status determination statements to give to those contractors and labour supply agencies that you have contracted with.
• If specialist advice is required, we may need to seek this from, or refer you to, appropriate specialists.

• Where a director/employee of your company is a deemed employee of a client under the IR35 off-payroll working rules, we will calculate the deemed employment payment(s) and:

1. account via payroll to HMRC for associated PAYE tax, including at the Scottish and Welsh rates of income tax if applicable, and employee and employer NIC;
2. advise on / make appropriate entries in the corporation tax computation to eliminate the deemed payments; and
3. advise on/ make appropriate entries in the director’s/ employee’s self-assessment tax return.

• To enable us to calculate the deemed employment payment(s), you agree to provide us with the following information at least 7 days prior to due date for each assignment for which a director/employee was a deemed employee of the PSC’s client:

1. fees for off-payroll work paid by the client to the company;
2. payments that would have been employment income made by the client directly to the director/employee;
3. expenses paid by the company to the director/employee that would have been deductible for tax against employment income had the director/employee been directly employed by the client;
4. capital allowances on equipment bought by the company for the deemed employment;
5. pension contributions paid by the company for the director/employee; and
6. salary and benefits paid by the company to the director/employee and PAYE tax and employee NIC, and as a separate figure employer NIC, accounted for to HMRC.

• Where the off-payroll working rules apply to work carried out by contractors for your company and your company pays the personal service companies of deemed employees, we will prepare the necessary records in your UK payroll for each payroll period to meet UK employment tax and off-payroll working requirements, specifically:

1. calculating the pay as you earn (PAYE) income tax deductions, including at the Scottish and Welsh rates of income tax, if applicable;
2. calculating the deemed employees’ NIC deductions;
3. calculating the employer’s NIC liabilities;
4. calculating other statutory and non-statutory deductions including apprenticeship levy;
5. indicating in payroll that the individual is a deemed employee by setting the off-payroll worker (OPW) marker; and
6. submitting information online to HMRC under Real Time Information (RTI) for PAYE.

• Where you are onward paying to an employee/director of the company fees received by the company where the employee/director has been treated as a deemed employee in the payroll of a third party under the off payroll working rules, we will prepare your UK payroll for each payroll period to meet UK employment tax and IR35 and off-payroll working requirements, specifically:

1. treating the employees’ pay up to the amount of net fees received under the off-payroll working rules as not subject to pay as you earn (PAYE) income tax deductions nor employee or employer national insurance contributions (we shall need evidence of what monies have already been subjected to PAYE/NIC), and
2. submitting information online to HMRC under Real Time Information (RTI) for PAYE.

• Ancillary payroll services

• Before the time of payment through the payroll or due date, we will prepare and send to you the following documents for delivering information to HMRC:

1. payroll summary report showing the reconciliation from gross to net for each employee and deemed employee if acting as an engager or fee payer under off-payroll working rules] and all relevant payroll totals;
2. a payslip for each employee, and deemed employee if acting as an engager or fee payer under off-payroll working rules;
3. a form P45 for each leaver – both actual employee and deemed employees
4. a report showing your PAYE and NIC liability, employee student loan repayments, apprenticeship levy and due date for payment; and
5. a workplace pension contributions report showing:
6. i) any employee and employer pension contributions payable in respect of each actual employee (but not deemed employee) to the respective workplace pension scheme(s) of which they are members and the due date(s) for payment;
   ii) any employee pension contribution refunds payable to any employee; and

iii) any employer pension contribution refunds due to you for any employee who has ceased membership of the scheme(s).

• We will submit FPS online to HMRC after the data to be included therein has been approved/on the basis of the data provided by you. (FPS must normally reach HMRC on or before the contractual payday, ie, the date that employees are entitled to be paid) but we will file it for you on, or before, the actual day that monies change hands if you have made us aware of that date in order to be compliant with PAYE regulations. You must ensure the data provided to us is complete and accurate and your attention is drawn to your legal responsibilities as set out below.

• For each tax month we will prepare, if appropriate, an Employer Payment Summary (EPS) from the information and explanations that you provide to us. (Examples of EPS data include statutory payments, employment allowance, construction industry scheme deductions ,apprenticeship levy allowance allocated to that PAYE scheme and apprenticeship levy payable to date and confirmation that no payments were, or will be, made to employees during that tax month or for future tax months.)

• We will submit the EPS online to HMRC after the data to be included therein has been approved/on the basis of the data provided by you. (The EPS must reach HMRC by the 19^th of the month following the tax month to which it relates.) You must ensure that the data provided to us is complete and accurate and your attention is drawn to your legal responsibilities as set out below.

• At the end of the tax year we will:

1. prepare the final FPS (or EPS) and submit this to HMRC after the data to be included therein has been approved/on the basis of the data provided by you; (the due date for submitting final FPS is on or before the last actual payday of the tax year (however as made clear above we will still require to know the contractual pay day too as that is held within the FPS), failing which, the final EPS for the year must reach HMRC by 19 April following the end of the tax year;) you must ensure that the data provided to us is complete and accurate and your attention is drawn to your legal responsibilities as set out below;
2. prepare and send to you Form P60 for each employee and deemed employee on the payroll at the year-end so you can give them to employees by the statutory due date of 31 May following the end of the tax year;
3. prepare and send to you a statement for every employee for whom benefits-in-kind have been payrolled identifying every benefit provided to each employee during the tax year and the cash equivalent of each benefit treated as PAYE income so you can give them to employees by the statutory due date of 31 May following the end of the tax year/
4. give you details of the Class 1A NIC on payrolled benefits-in-kind which will need to be accounted for on form P11D(b) and the due date for payment;
5. give you details of the Class 1A NIC on expenses accounted for in the payroll which will need to be accounted for on form P11D(b) and the due date for payment;
6. give you the figures that need to be included on forms P11D to account for income tax in respect of expenses for which Class 1 NIC has been accounted for in the payroll.

• 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 that you receive in your PAYE online account should be forwarded to us for action.

• We will submit national insurance number (NINO) verification requests as appropriate to verify or obtain a NINO for a new employee.

• Any enquiries from individual employees regarding their pay or other payroll details will be referred back to you.

• Excluded, ad hoc and advisory work

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.

Examples of such work that you may wish to instruct us to undertake include:

1. work in connection with employee workplace pension schemes other than that detailed above including helping with setting up and administering workplace pension schemes, including referring you to appropriate specialists where necessary;
2. ensuring that all employees are paid at least the national living wage/national minimum wage;
3. helping you to ascertain whether you are eligible to claim employment allowance and/or allocate employment allowance across your multiple or associated/connected companies’ PAYE schemes;
4. helping you to allocate apprenticeship levy allowance across your multiple or associated/connected companies’ PAYE schemes;
5. preparing and submitting returns P11D and P11D(b) for employee benefits-in-kind and expenses and advising on the payment of associated Class 1A NIC (such work, if undertaken, is covered in a separate schedule of services);
6. dealing with any compliance check or enquiry by HMRC or any other official compliance body into the payroll data submitted and corresponding with HMRC or other such body as necessary;
7. preparing and submitting any amended returns or data for previous tax years;
8. assisting you in the operation of the Construction Industry Scheme (CIS) for subcontractors;
9. conducting PAYE, and benefits and expenses health checks; and
10. advising on ad hoc transactions, for example, termination payments to employees.

For personal service companies, or where the client is contracting with a personal service company

1. helping you determine deemed employment status under IR35/off-payroll working rules for work undertaken for clients by the company

1. where deemed employment status under the April 2000 IR35 rules applies to work undertaken for clients by the company, calculating the deemed employment payment where deemed employment status under the April 2000 IR35 rules applies to work undertaken for clients by the company and accounting through payroll to HMRC for the tax and NIC etc;
2. where the April 2017 (extended to April 2021) off-payroll working rules apply and your personal service company (PSC) is onward paying tax- and NIC-free salary to a director or employee of up to the amount of net fees received by the PSC for client work carried out by that individual who has been treated as a deemed employee in a third party payroll under those rules, advising on and calculating statutory payments;
3. where the April 2021 off-payroll working rules apply and your company pays deemed employees’ personal service companies, accounting via payroll for tax and NIC etc on the payments;
4. where you have contractors working for you through their own personal service companies, helping you to determine whether you are “small” under the April 2021 off-payroll working rules;
5. where you have contractors working for you through their own personal service companies, and your company is not “small” under the April 2021 off-payroll working rules, helping you to determine the deemed employment status of those contractors (subject to section 1.3.2 below) and prepare employment status determination statements to give to labour supply agencies and those contractors;
6. work in connection with employee workplace pension schemes other than that detailed above including helping with setting up and administering workplace pension schemes, including referring you to appropriate specialists where necessary;
7. agreeing with you which employer-provided benefits-in-kind will be processed through the payroll and for which employees, processing through the payroll cash equivalent notional amounts on employee benefits-in-kind, notifying HMRC of in-year changes, advising you on the payment of associated Class 1A NIC, preparing and submitting return P11D(b) and notifications to employees;
8. ensuring that all employees are paid at least the national living wage / national minimum wage;
9. helping you to ascertain whether you are eligible to claim employment allowance and/or allocate employment allowance across your multiple or associated/connected companies’ PAYE schemes;
10. helping you to allocate apprenticeship levy allowance across your multiple or associated/connected companies’ PAYE schemes;
11. preparing and submitting returns P11D and P11D(b) for employee benefits-in-kind and expenses and advising on the payment of associated Class 1A NIC (such work, if undertaken, is covered in a separate schedule of services);
12. dealing with any compliance check or enquiry by HMRC or any other official compliance body into the payroll data submitted and corresponding with HMRC or other such body as necessary;
13. preparing and submitting any amended returns or data for previous tax years;
14. assisting you in the operation of the Construction Industry Scheme (CIS) for subcontractors;
15. conducting PAYE, and benefits and expenses health checks; and
16. advising on ad hoc transactions, for example, termination payments to employees.

• If specialist advice is required, we may need to seek this from, or refer you to, appropriate specialists.

• Changes in the law, in practice or in public policy

• 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, practice, public policy or in your circumstances.

• We will accept no liability for losses arising from changes in the law (or the interpretation thereof), practice or public policy that are first published after the date on which the advice is given.

• Your responsibilities

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

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

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

• Employers cannot delegate these legal responsibilities to others. You agree to check that submissions 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.

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

1. that all information required to be delivered online is submitted on the basis of full disclosure;
2. 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;
3. 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);
4. to advise us in writing of changes of payroll pay dates;
5. to notify us at least 7 working days before the payroll pay date of all transactions or events which may need to be reflected in the payroll for the period, including details of:

• all new employees and deemed employees under the off-payroll working rules (including starter checklist showing full names, address, date of birth, gender, national insurance number, and start date ) and details of their remuneration package including benefits-in-kind to be payrolled;
• for employees and deemed employees under the off-payroll working rules 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 and qualifying earnings payable;
• all changes to remuneration packages including benefits-in-kind to be payrolled;
• employee expenses which need to be included in payroll to account for either income tax or Class 1 NIC or both;
• expenses for each employee if the expense is to be reimbursed gross through payroll as an addition to net pay;
• the details of each invoice payment net of VAT that will form the earnings for each pay period;
• information necessary to enable us to calculate statutory payments, eg, statutory sick pay, statutory maternity pay, statutory adoption pay, statutory paternity pay, statutory shared parental pay, statutory parental bereavement pay;
• irregular and/or ad hoc payments and the dates to be paid; and
• all leavers, their annual salary before any salary sacrifices, how often paid, unworked notice period, contractual payment in lieu of notice (PILON), date of termination of employment, age, number of years’ service, the last payment prior to termination and when paid, and the components parts of the termination package, including statutory redundancy pay, compensation for loss of office, any bonus payable on termination, and any payments made after the leaving date.

1. to confirm that you have reviewed your entitlement to the employment allowance and confirm that you wish us to make the legal declaration claim on your behalf – indicating payroll name(s), PAYE scheme reference(s) and] industry sector;
2. to tell us the value of the apprenticeship levy allowance that is being allocated in the range £0 to £15,000 to each PAYE scheme – indicating payroll name and PAYE scheme reference.
3. to notify us within 7 working days of your receiving or becoming aware of any opt-out notices or any other requests to cease membership of a scheme, so that we can cease to calculate any relevant pension contributions and process any required refunds;
4. to register with HMRC in advance of the tax year, to notify which benefits-in-kind are to be payrolled for which employees (as agents, we cannot do this);
5. 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;
6. to authorise us to approach such third parties as may be appropriate, for information that we consider necessary to deal with your payroll; and
7. to approve:

• in-year and final FPS by at least 15 working days before contractual pay dates so that they can be submitted on or before payday, or as agreed with us;
• in-year and final EPS by at least 7 days before the 19th of the month following the tax month;
• revised year to date FPS for an earlier year within 7 days of notifying you of the data therein.

• 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.

• If the information required to complete the payroll services set out above is received later than the dates specified above or agreed with us, we will still endeavour to process the payroll and returns to meet the filing deadlines; but we will not be liable for any costs or other losses arising if the payroll is late or the returns are filed late in these circumstances.

• 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 as may be mutually decided.

• 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. You should also keep a note of any telephone communication you have with HMRC’s tax credits helpline or DWP’s universal credits helpline, including the date and time of the call and the name of the helpline operator(s).

PART 2 K – BENEFITS-IN-KIND RETURNS

SCHEDULE OF SERVICES

This schedule should be read in conjunction with the engagement letter and the terms of business.

1. RESPONSIBILITIES AND SCOPE FOR BENEFITS-IN-KIND RETURN SERVICES

• Recurring compliance work

• We will prepare/ review form P11D as may be required for each employee, including directors, based on the accounts, information and explanations provided to us on your behalf.

• We will prepare/ review form P11D(b) to include the Class 1A NIC on benefits-in-kind and expenses, both on forms P11D and included in payroll.

• We will submit the form 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 approved 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 expenses both returned in form P11D and included in payroll that you are obliged to pay HMRC by the due date and send payment instructions to you.

• Excluded, ad hoc and advisory work

• 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. Examples of such work that you may wish to instruct us to undertake include:

1. assisting you with calculating the values for tax and NIC of benefits-in-kind provided to employees, including when provided by way of salary sacrifice and other optional remuneration arrangements;
2. dealing with any compliance check or enquiry by HMRC into the benefits-in-kind returns submitted;
3. preparing any amended returns which may be required and corresponding with HMRC as necessary;
4. advising on PAYE settlement agreements and/or approved expenses scale rates; and
5. conducting PAYE and benefits and expenses health checks.

• If specialist advice is required, we may need to seek this from, or refer you to, appropriate specialists.

• Changes in the law, in practice or in public policy

• 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, practice, public policy or in your circumstances.

• We will accept no liability for losses arising from changes in the law (or the interpretation thereof), practice or public policy that are first published after the date on which the advice is given.

• Your responsibilities

• Even though you are engaging us to help you meet your end-of-year benefits-in-kind return obligations, you are legally responsible for:

1. 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 form P11D and amounts of benefits-in-kind and expenses in the payroll] are correct and complete;
2. filing any returns by the due date after the end of the tax year; and
3. making payment of Class 1A NIC on time.

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

• The approver of the return cannot delegate this legal responsibility to others. The approver agrees 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.

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

1. that all returns are to be made on the basis of full disclosure;
2. 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;
3. to notify us within 15 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;
4. 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
5. to approve the returns 30^th June so they can be submitted on or before the filing deadline of 6 July after the end of the tax year.

If we do not hear from you by the above deadline, subject to any other agreement between us, we will take your silence as your approval for us to submit the returns.

• If the information required to complete the benefits-in-kind returns set out above is received later than 30^th June after the end of the tax year, we will still endeavour to process the information onto the BiK returns to meet the submission date but we will not be liable for any costs or other losses arising if submission is late.
• 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.

PART 2 L-GB –GREAT BRITAIN VAT RETURNS (MAKING TAX DIGITAL (MTD) FOR VAT)

SCHEDULE OF SERVICES

This schedule should be read in conjunction with the engagement letter and the terms of business.

1          RESPONSIBILITIES AND SCOPE FOR VAT RETURN SERVICES

• Initial registration

• We will sign you up for MTD for VAT. By instructing us to sign up on your behalf you are agreeing to HMRC’s terms of use. This may result in changes that may include changes to deadlines. You will complete HMRC’s sign up process to enable submission of your VAT return.

• 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 relevant official 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.

• Recurring compliance work

• We will prepare your MTD for VAT returns on a monthly/ quarterly/ annual (as mentioned in Engagement Letter) basis.
• We will keep all accounting records to meet the digital record keeping requirements of MTD for VAT. You must ensure that the data provided to us is complete and accurate.

Or

• We will check the digital accounting records which you keep to meet the requirements of MTD for VAT and which you provide to us for preparation of the MTD for VAT returns. You may be required to provide us with your data digitally and we will tell you if/ when that is the case. If your software is incompatible with ours we will agree with you an appropriate solution which might include the use of alternative third party functionally compatible software and/or a spreadsheet(s) which satisfy the statutory requirement for digital linkage. Where your digital records are incompatible with our software, we may require an additional fee. You must also provide us with confirmation that your digital records are complete and accurate.

• Based on the information you provide to us, we will tell you how much VAT you should pay and when. Where appropriate, we will initiate repayment claims if tax has been overpaid. We will advise on the interest and penalty implications if UK VAT is paid late.
• Where appropriate, we will include import VAT from any digital import certificates (postponed VAT accounting) and/or C79s we receive from you.

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

• Where appropriate, we will calculate the annual Capital Goods Scheme adjustment.
• We are not responsible for considering or applying for any of the exemptions from MTD for VAT. However, if you feel that you are eligible for exemption, please let us know. We are happy to discuss this and may correspond with HMRC on your behalf if needed, or we can guide you on whom you should contact for this. This may be subject to an additional fee.

• We will advise you of any relaxations applicable in relation to the digital records of supplies made and received.

• We will submit the MTD for VAT return data online to HMRC after the data to be included therein has been approved by you.

• We will agree with you any supplementary information to be submitted on a voluntary basis with the MTD for VAT returns prior to submission.

• Where you are invoice (accruals) accounting for income tax, we will perform an annual reconciliation of VAT outputs to turnover.

• Ad hoc queries by way of telephone and email enquiries are not routine compliance and may result in additional fees. As indicated below, where appropriate we will aim to discuss and agree additional fees but it may not always be possible to agree these in advance and we reserve the right to charge you an additional fee for these queries.

• Ad hoc and advisory services

• 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. Examples of such work that you may wish to instruct us to undertake include:

1. reconciling VAT outputs with turnover
2. advising on ad hoc transactions
3. reviewing and advising on a suitable partial exemption method to use in preparing the return;
4. dealing with all communications relating to your VAT returns addressed to us by HMRC or passed to us by you;
5. processing import and export declarations including deferred import entries that require postponed VAT accounting (at present we assume that these are handled by you or your customs agent);
6. making recommendations to you about the use of cash accounting, annual accounting, flat-rate and other suitable methods of accounting for VAT;
7. making recommendations to you about the use of the VAT One Stop Shop (OSS) Union and/or non-Union schemes and/or the VAT Import One Stop Shop (IOSS) if you supply services or goods to consumers in the EU;
8. advising on the VAT liability of supplies of goods or services to consumers outside Great Britain;
9. work required to rectify the position where your software is incompatible with our software; and
10. reviewing your record keeping processes and providing advice on potential improvements to enable compliance with the MTD for VAT requirements, including digital links for the transfer of data between different software.

Where the advice is provided in writing, the information that you have provided to us and the query raised will be set out with our response to you.

• If specialist advice is required, we may need to seek this from, or refer you to, appropriate specialists.

• Changes in the law, in practice or in public policy

• 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, practice or public policy or in your circumstances.

• We will accept no liability for losses arising from changes in the law (or the interpretation thereof), practice or public policy that are first published after the date on which the advice is given.

• Your responsibilities

• You are legally responsible for:

1. ensuring that your returns are correct and complete and in an appropriate digital format and capture the appropriate level of data;
2. ensuring your record keeping is compliant with the new requirements for the digital recording and transfer of data
3. filing any returns by the due date; and
4. paying VAT on time.

Failure to do any of these may lead to penalties, surcharges and/or interest.

• 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.

• 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.

• Where we are keeping your digital accounts records, you are responsible for providing us with the following information required for us to prepare the records:

• Access to your accounting records
• Sale invoices
• Purchase invoices
• Bank statements
• Details of bank and cash payments
• Details of bank and cash receipts
• Stock and work-in-progress details

We have also agreed that you will provide the following:

• A record of the amounts owed to the business
• A record of amounts owed by the business
• A list of accruals
• A list of prepayments
• Private use adjustments
  • To enable us to carry out our work, you agree:

1. that all returns are to be made on the basis of full disclosure;
2. that you are responsible for ensuring that the information provided is, to the best of your knowledge, accurate and complete and that all digital links are in the manner prescribed; the returns are prepared/ reviewed] solely on the basis of the information provided by you and we accept no responsibility for any liabilities arising due to inaccuracies, omissions or breakdowns in digital links concerning the information that you provide which may lead to a misdeclaration on which penalties and interest may arise;
3. to authorise us to approach such third parties, as may be appropriate, for information we consider necessary to deal with the returns;
4. to provide us with all the records relevant to the preparation of your monthly/ quarterly/ annual returns as soon as possible after the return period ends; we would ordinarily need a minimum of 7 days before submission to complete our work. If the records are provided later or are incomplete or unclear, thereby delaying the preparation/ review and submission of the return, we accept no responsibility for any ‘default surcharge’ penalty that may arise; and
5. to inform us that you have made the tax payment based on your calculated return.

• 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 tell us so that we can assess its significance.

• You will forward to us HMRC statements of account, copies of notices of assessment, letters and other communications received from HMRC, in sufficient time to enable us to deal with them as may be necessary within the statutory time limits. Although HMRC has the authority to communicate with us when form 64-8 or online authorisation has been submitted, it is essential that you let us have copies of any correspondence received, because HMRC is not obliged to send us copies of all communications issued to you and, in most cases, will not do so.

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

• 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 you 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.

PART 2 M – TAX INVESTIGATIONS

SCHEDULE OF SERVICES

This schedule should be read in conjunction with the engagement letter and the terms of business.

1. RESPONSIBILITIES AND SCOPE FOR TAX INVESTIGATION SERVICES

• Investigation by HMRC.

• We will act on your behalf in the matter of the current investigation by HMRC.

• Where required, we will prepare a report on your behalf giving full disclosure of your tax affairs and, once agreed by you, submit it to HMRC.

• We will negotiate with HMRC on any question of taxation, interest and penalties. The outcome of some income tax enquiries may be related to, or impact on, claims to tax credits and universal credit.

• We must make it clear that if, at any time, we consider that:

1. you are not cooperating with us and/or answering our enquiries fully and frankly; or
2. you are unwilling to make full disclosure or you refuse to do so;

we will immediately cease to act and inform HMRC of that fact (albeit not the reasons for ceasing to act). In that event, any fees you have already paid will not be reimbursed and you will remain liable for any unbilled costs.

• If specialist advice is required in connection with the investigation, we may need to seek this from, or refer you to, appropriate specialists.

• Your responsibilities

• To enable us to carry out our work in relation to the investigation you agree:

1. that all information to be given to HMRC in the course of the investigation is to be made on the basis of full disclosure of all sources of income, charges, allowances and capital transactions;
2. to provide full information necessary for dealing with the investigation;
3. to authorise us to communicate with such third parties as may be appropriate, and that we consider necessary to deal with the investigation;
4. to provide information promptly to enable us to deal with the investigation expeditiously and to act in your interests in order to qualify for such reduction as may be appropriate for the cause of the error and the level of disclosure if there are tax liabilities or penalties for earlier years;
5. to forward to us immediately on receipt, copies of all HMRC correspondence, statements of account, PAYE coding notices, notices of assessment, letters and other communications received from HMRC as may be relevant to the investigation to enable us to deal with them as may be necessary; although HMRC have 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 all communications issued to you, and, in most cases, will not do so;
6. to keep us informed about significant changes in your circumstances if they are likely to affect the outcome of the investigation; if you are unsure whether the change is material, please let us know so that we can assess its significance or otherwise; and
7. to notify us immediately of any insurance cover you have for enquiries by HMRC into your tax returns.

PART 2 N – UNPROMPTED TAXATION DISCLOSURES

SCHEDULE OF SERVICES

This schedule should be read in conjunction with the engagement letter and the terms of business.

1. Responsibilities and scope for unprompted tax disclosures
   • Specified Matter:

• We will provide taxation advice to you in respect of a voluntary disclosure to HMRC.

• Where required, we will prepare a report on your behalf giving full disclosure of your UK taxation affairs and, once it is agreed by you, submit it to HMRC on your behalf. We may also use HMRC’s online Digital Disclosure Service to:

1. register you for an appropriate disclosure facility after you agree to that approach; and
2. submit information to HMRC relating to your disclosure, once it is agreed by you.

• We will negotiate with HMRC on any issue relating to taxation, interest and penalties with the aim of settling your United Kingdom taxation affairs.
• We must make it clear that if at any time we consider that:

1. you are not cooperating with us and answering our enquiries fully and frankly; or
2. you do not fulfil your responsibilities as per 1.2 below; or
3. you are unwilling to make full disclosure or you refuse to do so;

then we will immediately cease to act and inform HMRC of that fact (albeit not the reasons for ceasing to act). In that event, any fees you have already paid will not be reimbursed and you will remain liable for any unbilled costs.

• As part of the disclosure, either we (on your behalf) or HMRC may propose alternative dispute resolution to resolve matters. In such cases, we will negotiate on your behalf as part of this process. However, if the mediation is not successful and the case continues, the terms set out in this engagement letter will continue to apply to all work carried out on your behalf following the mediation.

• We will, if instructed by you on a case-by-case basis:

1. make appeals to HMRC against assessments and/or determinations of taxation and/or penalties issued by HMRC during the course of our work. These appeals may include requests for the collection of the amount assessed/determined to be postponed pending full resolution of the enquiry/investigation. We cannot guarantee that HMRC will accept the appeal and/or postponement application;
2. request HMRC undertake an internal review of their decision(s) and make representations to the review officer;
3. make representations to HMRC on your behalf if HMRC indicates it intends to publish your details (eg as a deliberate defaulter).

• Where specialist advice is required in connection with the voluntary disclosure, we may need to seek this from or refer you to appropriate specialists and/or tax counsel. We will only do this when instructed by you.

• Where you request us to advise on ancillary matters connected with the disclosure to HMRC, we will confirm your instruction in this regard in writing and, if appropriate, issue to you a separate engagement letter to cover these ancillary matters. Where it is not appropriate to issue a separate engagement letter, we will carry out this additional advice under the terms of this engagement letter (although we reserve the right to charge an additional fee).

• Your responsibilities

• To enable us to carry out our work in relation to the voluntary disclosure you agree:

1. that all information and documentation to be given to HMRC in the course of the voluntary disclosure is to be made on the basis of full disclosure of all sources of income, charges, allowances and capital transactions;
2. to provide full information necessary for dealing with the voluntary disclosure;
3. to authorise us to communicate with such third parties as may be appropriate and that we consider necessary to deal with the voluntary disclosure;
4. to provide information promptly to enable us to deal with the voluntary disclosure expeditiously and to act in your interests in order to qualify for such reduction as may be appropriate for the cause of the error and the level of disclosure if there are tax liabilities or penalties for earlier years;
5. to forward to us immediately on receipt copies of all HMRC correspondence, statements of account, PAYE coding notices, notices of assessment, letters and other communications received from HMRC as may be relevant to the voluntary disclosure to enable us to deal with them as may be necessary.. It is essential that you let us have copies of any correspondence received because HMRC is not obliged to send us copies of all communications issued to you and, in most cases, will not do so.
6. to keep us informed about significant changes in your circumstances if they are likely to affect the outcome of the voluntary disclosure. If you are unsure whether the change is material or not, please let us know so that we can assess its significance or otherwise;
7. to notify us immediately of any insurance cover you have for this voluntary disclosure including any queries raised by HMRC following its submission.
8. To the extent that our advice covers non-UK tax aspects, you must confirm this with an appropriately qualified professional adviser in the relevant territory before any irrevocable action is taken. We would be pleased to liaise with them as appropriate.

PART 2 P – TAX CREDITS

SCHEDULE OF SERVICES

This schedule should be read in conjunction with the engagement letter and the terms of business.

1. RESPONSIBILITIES AND SCOPE FOR TAX CREDIT SERVICES

• Recurring compliance work

• We will prepare your tax credits annual declaration (TC603D) (and, on request, a tax credits claim form (TC600)) from the information and explanations that you give us. After obtaining your approval and signature, we will submit the completed forms to HMRC.

• We will check your tax credit award notices (TC602) and annual review (TC603R) using the information you have given us. We will point out any errors or omissions on these documents and agree what action should be taken to inform HMRC.

• We will inform HMRC on your behalf of any changes in circumstances affecting your tax credit award which you notify to us. Notification is generally mandatory and must be done within 30 days of the change. The changes which must be notified are listed at https://www.gov.uk/changes-affect-tax-credits.

• When your tax credit claim ends, we will help you prepare the forms and other paperwork which is expected by HMRC from the information and explanations you give us. After obtaining your approval and signature, we will submit the completed forms to HMRC.

• Excluded, ad hoc and advisory work

• We will not provide the following services under this engagement but, if you have instructed us to do so, we will provide such other tax credits, 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. If appropriate, we will discuss and agree an additional fee for such work when it is commissioned by you. Examples of such work that we will not undertake unless you instruct us include:

1. advising you on your eligibility for working tax credit and/or child tax credit based on the information you give us about your household circumstances;
2. advising you of any possible claims or reliefs or other planning measures that may have a bearing on your tax credits entitlement including, but not limited to, gift aid, pension contributions, and trading loss reliefs;
3. explaining to you what you must report to HMRC, including the time limits for doing so, and what it would be in your interests to report to HMRC (but not obligatory for you to do);
4. assisting you with any tax credit examinations or enquiries raised by HMRC, or with any other communications with HMRC regarding your entitlement;
5. advising you on the implications that any changes to your tax credit award might have for other aspects of your tax affairs;
6. advising you on, and helping you claim, universal credit or other social security benefits; and

• Changes in the law, in practice or in public policy

• 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, practice, public policy or in your circumstances.

• We will accept no liability for losses arising from changes in the law (or the interpretation thereof), practice or public policy that are first published after the date on which the advice is given.

• Your responsibilities

• You are legally responsible for:

1. ensuring that that all documents and information submitted to HMRC are correct, complete and on time; and
2. ensuring that HMRC are informed promptly of any changes in your income or circumstances, and of any errors or omissions in any document sent to you by HMRC.

Failure to do any of the above may lead to or exacerbate an overpayment and may, in certain cases, give rise to penalties, and/or interest.

• Taxpayers who sign their claims, renewal or other forms cannot delegate this legal responsibility to others. You agree to check that documents that we have prepared for you are correct and complete before you approve and sign 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.

• Responsibilities in relation to joint tax credit claims are set out below under ‘You and your spouse/ partner’ if applicable.

• You will be responsible for informing HMRC of any changes in circumstances. Notification is generally mandatory and must be done within 30 days of the change. The changes which must be notified are listed at https://www.gov.uk/changes-affect-tax-credits (paper copy available on request).

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

1. that all claims, renewals and other reports are to be made on the basis of full disclosure of your income and circumstances;
2. 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;
3. to authorise us to approach such third parties as may be appropriate, for information that we consider necessary to deal with your affairs;
4. to provide us with information in sufficient time for your renewal forms to be completed and submitted by the due date following the end of the tax year; to do this, we need to receive all relevant information at least 15 days prior to the due date; and

• You will keep us informed of material changes in your circumstances that could affect your tax credit entitlement. If you are unsure whether the change is material, please let us know so that we can assess its significance. In particular, it is recommended that a record of working hours is maintained.

• You will forward to us HMRC notices, statements of account, letters and other 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. You should also keep a note of any telephone communication you have with HMRC’s tax credits helpline and provide us with details, including the date and time of the call, and the name of the helpline operator(s).

PART 2 R – CLOUD-BASED SERVICES

SCHEDULE OF SERVICES

This schedule should be read in conjunction with the engagement letter and the terms of business.

1. IT SECURITY REQUIREMENTS
   • Your responsibilities 
     • To support the delivery of cloud-based services, it is important to ensure that appropriate IT security measures are in place.

• You are responsible for:

1. providing us with a list of approved users;
2. ensuring that all usernames, passwords and any additional authentication measures required for access are kept secure and not shared with unauthorised individuals;
3. ensuring that you have appropriate security measures in place to prevent and/or detect viruses, trojans, malware or any other malicious code;
4. any internet link (eg through your internet service provider) to permit you to connect to the service; and
5. compliance with the service providers terms, if applicable.

• If any of your staff authorised for access leave or are no longer authorised, you must remove access using your administrative console. You must give us sufficient notice to be able to make the change on your behalf if you are not able to do this directly.

• Our responsibilities 
  • We are responsible for:

1. ensuring only our authorised staff are provided appropriate levels of access to your cloud-based systems;;
2. ensuring that all usernames, passwords and any additional authentication measures required for access are kept secure and not shared with unauthorised individuals;
3. having appropriate security measures in place to prevent and/or detect viruses, trojans, malware or any other malicious code; and
4. compliance with the service providers terms, if applicable.

2. CLOUD-BASED ACCOUNTING SOFTWARE

• • Provider

• The accounting software that will be hosted in the cloud is Zoho Books. This software and the associated hosting will be supplied by Zoho. 
• The contact details for this provider are:

• Suite 1.09, Challenge House, Sherwood Dr, Bletchley, Milton Keynes MK3 6DP, United Kingdom
• 0044 8000 856 099
• uk@eu.zohobooks.com 
  • The servers used by the supplier are based in Europe, specifically in Amsterdam (Netherlands) and Dublin (Ireland). However, the provider has servers located in multiple data centres around the world.

• If you wish to stop this service, cancellation takes effect immediately. However, you will only receive a full refund if you cancel within 5 days of renewal for a monthly plan, or within 15 days of renewal for an annual plan. After cancellation, your Zoho Books account will enter read-only mode and may be permanently deactivated if not accessed for 120 days. Please note that these are the supplier’s current terms and are subject to change.

• Our responsibilities

• We will send you an invoice per our agreed payment schedule for the services provided.
• When you stop the service, giving notice as per ‎1.4 above we will work with the supplier to obtain a backup of your data as at the end of the notice period.
• We are not responsible for any failure to deliver the service due to errors in transmission, internet outages, supplier infrastructure issues or any other failure that results in unavailability of the service. We are also not liable for any loss or corruption of data if you have breached the supplier’s terms.

• Excluded work 
  • 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 other ad hoc 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. Examples of such work that you may wish to instruct us to undertake include:

1. assisting you in the selection of specific accounting software relevant to your needs;
2. review of existing software for suitability to your business needs;
3. training for your staff in the use of the accounting software.

• Your responsibilities

• You shall pay the associated fee each month when it is due. If you do not make payment, then we will issue a written warning. 30 days after the warning we will stop the service until fees due have been paid or an alternative arrangement has been made.

• You are responsible for the maintenance of your accounting records.

• You will enter into a Terms of Use and Service Level Agreement with Zoho. You are responsible for ensuring that the terms are suitable for your requirements. Should you wish to discuss anything in these agreements please contact us prior to entering into the agreement.

PART 4 – TERMS OF BUSINESS

The following terms of business apply to all engagements accepted by Elmers Green Accountancy Services Ltd. All work is carried out under these terms except where changes are expressly agreed in writing.

1. Applicable law

• Our engagement letter, the schedules of services and our standard terms and conditions of business are governed by and should be construed in accordance with, English law. Each party agrees that 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 on any basis. Each party irrevocably waives any right 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.

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

2. Client identification

• As with other professional services firms, we are required to identify our clients for the purposes of the UK anti-money laundering legislation. We may request from you, and retain, such information and documentation as we require for these purposes and/or make searches of appropriate databases. If we are not able to obtain satisfactory evidence of your identity, we will not be able to proceed with the engagement.
• If you undertake business that requires you to be supervised by an appropriate supervisory authority to follow anti-money laundering regulations including if you accept or make a high value cash payments of €10,000 or more (or equivalent in any currency) in exchange for goods you should inform us.

• Any personal data received from you to comply with our obligations under The Money Laundering, Terrorist Financing and Transfer for Funds (Information on the Payer) Regulations 2017 (MLR 2017) will be processed only for the purposes of preventing money laundering or terrorist financing. No other use will be made of this personal data unless use of the data is permitted by or under enactment other than the MLR 2017, or we have obtained the consent of the data subject to the proposed use of the data.

3. Clients’ money
   • 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 ICAEW’s Clients’ Money Regulations.

• All client monies will be held in an interest-bearing account. To avoid excessive administration, interest will only be paid to you if the amount earned on the balances held on your behalf in any calendar year exceeds £25.00. If the total sum of money held on your behalf is enough to give rise to a significant amount of interest or is likely to do so, we will put the money in a designated interest-bearing client bank account and pay the interest to you. Subject to any tax legislation, interest will be paid gross.

• We will promptly return monies held on your behalf as soon as there is no longer any reason to retain those funds. If any funds remain in our client account that are unclaimed, and the client to which they relate has remained untraced for five years, or we as a firm cease to practise, we may pay those monies to a registered charity.

4. Commissions or other benefits

4.1       In some circumstances we may receive commissions or other benefits for introductions to other professionals or in respect of transactions which we arrange for you.

• If we receive any commissions or other benefits in connection with our work for you, these will be in addition to the fees you pay us. The fees you would otherwise pay will not be reduced by the amount of any such commissions or benefits. You agree that we may retain any such commissions or benefits without being required to account to you for them.

5. Confidentiality

• Unless we are authorised by you to disclose information on your behalf, we confirm that if you give us confidential information we will, at all times during and after this engagement, keep it confidential, except as required by law or as provided for in regulatory, ethical or other professional pronouncements applicable to us or our engagement.

• You agree that, if we act for other clients who are or who become your competitors, to comply with our duty of confidentiality it will be sufficient for us to take such steps as we think appropriate to preserve the confidentiality of information given to us by you, both during and after this engagement. These may include taking the same or similar steps as we take in respect of the confidentiality of our own information.

• In addition, if we act for other clients whose interests are or may be adverse to yours, we will manage the conflict by implementing additional safeguards to preserve confidentiality. Safeguards may include measures such as separate teams, physical separation of teams, and separate arrangements for storage of, and access to, information.

• You agree that the effective implementation of such steps or safeguards as described above will provide adequate measures to avoid any real risk of confidentiality being impaired.

• We may, on occasion, subcontract work on your affairs to other tax or accounting professionals. The subcontractors will be bound by our client confidentiality terms.

• We will inform you of the proposed use of a subcontractor before they commence work, except where your data will not be transferred out of our systems and the subcontractor is bound by confidentiality terms equivalent to an employee.

6. Conflicts of interest

• We will inform you if we become aware of any conflict of interest in our relationship with you or in our relationship with you and another client, unless we are unable to do so because of our confidentiality obligations. We have safeguards that can be implemented to protect the interests of different clients if a conflict arises. If conflicts are identified which cannot be managed in a way that protects your interests, we regret that we will be unable to provide further services.

• If there is a conflict of interest that is capable of being addressed successfully by the adoption of suitable safeguards to protect your interests, we will adopt those safeguards. In resolving the conflict, we would be guided by ICAEW’s Code of Ethics, which can be viewed at com/en/membership/regulations-standards-and-guidance/ethics. During and after our engagement, you agree that we reserve the right to act for other clients whose interests are or may compete with, or be adverse to, yours subject, of course, to our obligations of confidentiality and the safeguards set out in the paragraph on confidentiality above.

1. Data Protection DATA CONTROLLER

• In this clause, the following definitions shall apply:

‘client personal data’ means any personal data provided to us by you, or on your behalf, for the purpose of providing our services to you, pursuant to our engagement letter with you;

‘data protection legislation’ means all applicable privacy and data protection legislation and regulations including PECR, the UK GDPR and any other applicable national laws, regulations and secondary legislation in the UK relating to the processing of personal data and the privacy of electronic communications, as amended, replaced or updated from time to time;

‘controller’, ‘data subject’, ‘personal data’, and ‘process’ shall have the meanings given to them in the data protection legislation;

‘UK GDPR’ means the Data Protection Act 2018 as amended by the Data Protection, Privacy and Electronic Communications (Amendments etc) (EU Exit) Regulations 2020; and

‘PECR’ means the Privacy and Electronic Communications (EC Directive) Regulations 2003 (SI 2426/2003) as amended by the Data Protection, Privacy and Electronic Communications (Amendments etc) (EU Exit) Regulations 2020.

• We shall each be considered an independent data controller in relation to the client personal data. Each of us will comply with all requirements and obligations applicable to us under the data protection legislation in respect of the client personal data.

• You shall only disclose client personal data to us where:

1. you have provided the necessary information to the relevant data subjects regarding its use

1. you have a lawful basis upon which to do so, which, in the absence of any other lawful basis, shall be with the relevant data subject’s consent; and
2. you have complied with the necessary requirements under the data protection legislation to enable you to do so.

• Should you require any further details regarding our treatment of personal data, please contact our Data Protection Officer

• We shall only process the client personal data:

1. in order to provide our services to you and perform any other obligations in accordance with our engagement with you;

1. in order to comply with our legal or regulatory obligations; and

1. where it is necessary for the purposes of our legitimate interests and those interests are not overridden by the data subjects’ own privacy rights. Our privacy notice available at www.elmersgreen.co.uk contains further details as to how we may process client personal data.

• We may disclose the client personal data to other third parties in the context of a possible sale, merger, restructuring or financing of or investment in our business. In this event we will take appropriate measures to ensure that the security of the client personal data continues to be ensured in accordance with data protection legislation. If a change happens to our business, then the new owners may use our client personal data in the same way as set out in these terms

• We shall maintain commercially reasonable and appropriate security measures, including administrative, physical and technical safeguards, to protect against unauthorised or unlawful processing of the client personal data and against accidental loss or destruction of, or damage to, the client personal data.

• In respect of the client personal data, provided that we are legally permitted to do so, we shall promptly notify you in the event that:

1. a) we receive a request, from or on behalf of a relevant data subject, to exercise their data subject rights under the data protection legislation or a complaint or any adverse correspondence in respect of our processing of their personal data;
2. b) we are served with an information, enforcement or assessment notice (or any similar notices), or receive any other material communication in respect of our processing of the client personal data from the Information Commissioner’s Office or any other supervisory authority); or
3. c) we reasonably believe that there has been any incident which resulted in the accidental or unauthorised access to, or destruction, loss, unauthorised disclosure or alteration of, the client personal data.

• Upon the reasonable request of the other, we shall each co-operate with the other and take such reasonable commercial steps or provide such information as is necessary to enable each of us to comply with the data protection legislation in respect of the services provided to you in accordance with our engagement letter with you in relation to those services.

2. Disengagement

• If we resign, or are asked to resign, we will normally issue a disengagement letter to ensure that our respective responsibilities are clear.

3. Electronic and other communication

• Unless you instruct us otherwise, we may, if appropriate, communicate with you and with third parties by email or other electronic means. The recipient is responsible for virus checking emails and any attachments.

• With electronic communication, there is a risk of non-receipt, delayed receipt, inadvertent misdirection or interception by third parties. We use virus-scanning software to reduce the risk of viruses and similar damaging items being transmitted in emails or by electronic storage devices. Nevertheless, electronic communication is not totally secure and we cannot be held responsible for damage or loss caused by viruses or for communications which are corrupted or altered after despatch. Nor can we accept any liability for problems or accidental errors relating to this means of communication, especially in relation to commercially sensitive material. These are risks you must bear in return for greater efficiency and lower costs. If you do not wish to accept these risks, please let us know and we will communicate by paper mail, other than when electronic submission is mandatory.

• Any communication by us with you sent through the postal system is deemed to arrive at your postal address two working days after the day the document was sent.

4. Intellectual property rights and use of our name

• You are not permitted to use our name in any statement or document you may issue unless our prior written consent has been obtained. The only exception to this restriction would be statements or documents that, in accordance with applicable law, are to be made public.

5. Interpretation

• If any provision of our engagement letter or terms of business is held to be void, that provision will be deemed not to form part of this contract. In the event of any conflict between these terms of business and the engagement letter or appendices, the relevant provision in the engagement letter or schedules will take precedence.

6. Internal disputes within a client

• If we become aware of a dispute between the parties who own the business or who are in some way involved in its ownership and management, it should be noted that our client is the business and we would not provide information or services to one party without the express knowledge and permission of all parties. Unless otherwise agreed by all parties, we will continue to supply information to the registered office for the attention of the directors/ partners/ trustees. If conflicting advice, information or instructions are received from different directors/ partners/ trustees in the business, we will refer the matter back to the board of directors/ the partnership and take no further action until the board/ partnership has agreed the action to be taken.

7. Lien

• Insofar as we are permitted to so by law or by professional guidelines, we reserve the right to exercise a lien over all funds, documents and records in our possession relating to all engagements for you until all outstanding fees and disbursements are paid in full.

8. Limitation of third party rights
   • The advice and information we provide to you as part of our service is for your sole use, and not for any third party to whom you may communicate it, unless we have expressly agreed in the engagement letter that a specified third party may rely on our work. We accept no responsibility to third parties, including any group company to whom the engagement letter is not addressed, for any advice, information or material produced as part of our work for you which you make available to them. A party to this agreement is the only person who has the right to enforce any of its terms, and no rights or benefits are conferred on any third party under the Contracts (Rights of Third Parties) Act 1999.

9. Period of engagement and termination

• Unless otherwise agreed in our engagement letter, our work will begin when we receive implicit or explicit acceptance of that letter. Except as stated in that letter, we will not be responsible for periods before that date.

• Each of us may terminate our agreement by giving not less than 21 days’ notice in writing to the other party except if you fail to cooperate with us or we have reason to believe that you have provided us or HMRC with misleading information, in which case we may terminate this agreement immediately. Termination will be without prejudice to any rights that may have accrued to either of us before termination.

• We reserve the right to terminate the engagement between us with immediate effect in the event of: your insolvency, bankruptcy or other arrangement being reached with creditors; an independence issue or change in the law which means we can no longer act; failure to pay our fees by the due dates; or either party being in breach of their obligations if this is not corrected within 30 days of being asked to do so.

• In the event of termination of our contract, we will endeavour to agree with you the arrangements for the completion of work in progress at that time, unless we are required for legal or regulatory reasons to cease work immediately. In that event, we will not be required to carry out further work and shall not be responsible or liable for any consequences arising from termination.

10. Professional rules and statutory obligations

• We will observe and act in accordance with the Bye-laws, regulations and Code of Ethics of ICAEW including Professional Conduct in Relation to Taxation, and will accept instructions to act for you on this basis. In particular, you give us the authority to correct errors made by HMRC if we become aware of them. We will not be liable for any loss, damage or cost arising from our compliance with statutory or regulatory obligations. You can see copies of these requirements in our offices. The requirements are also available online at com/en/membership/regulations-standards-and-guidance.

11. Quality control

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

• When dealing with HMRC on your behalf we are required to be honest and to take reasonable care to ensure that your returns are correct. To enable us to do this, you are required to be honest with us and to provide us with all necessary information in a timely manner. For more information about ‘Your Charter’ for your dealings with HMRC, visit https://www.gov.uk/government/publications/hmrc-charter. To the best of our abilities, we will ensure that HMRC meet their side of the Charter in their dealings with you.

12. Reliance on advice

• We will endeavour to record all advice on important matters in writing. Advice given orally is not intended to be relied upon unless confirmed in writing. Therefore, if we provide oral advice (for example, during the course of a meeting or a telephone conversation) and you wish to be able to rely on that advice, you must ask for the advice to be confirmed by us in writing. Advice is valid as at the date it was given.

13. Retention of papers

• You have a legal responsibility to retain documents and records relevant to your financial affairs. During the course of our work we may collect information from you and others relevant to your tax and financial affairs. We will return any original documents to you, if requested. Documents and records relevant to your tax affairs are required by law to be retained as follows:

Individuals, trustees and partnerships:

1. with trading or rental income: five years and 10 months after the end of the tax year
2. otherwise: 22 months after the end of the tax year.

Companies, Limited Liability Partnerships, and other corporate entities:

1. six years from the end of the accounting period.

• Although certain documents may legally belong to you, we may destroy correspondence and other papers that we store electronically or otherwise 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.

14. The Provision of Services Regulations 2009

• Our professional indemnity insurer is Tokio Marine. The territorial coverage is UK.

15. Timing of our services

• If you provide us with all information and explanations on a timely basis in accordance with our requirements, we will plan to undertake the work within a reasonable period of time to meet any regulatory deadlines. However, failure to complete our services before any such regulatory deadline would not, of itself, mean that we are liable for any penalty or additional costs arising.

PART 5 – PRIVACY NOTICE

PRIVACY NOTICE

1.      ABOUT US AND THE PURPOSE OF THIS NOTICE

Elmers Green Accountancy Services Ltd (“Elmers Green”, “we”, “us”, “our” and “ours”) is an accountancy and tax advisory firm. We are registered in England and Wales as a company under number: 13958301 and our registered office is at 520 Birchwood Boulevard, Birchwood, Warrington, England, WA3 7QX.

This notice will tell you how we look after your personal data, about your privacy rights, and about our compliance with and your protections under Data Protection Legislation.

In this notice “Data Protection Legislation” means any applicable law relating to the processing, privacy, and use of Personal Data, including the Data Protection Act 2018 and the Privacy and Electronic Communications (EC Directive) Regulations 2003, as amended by The Data Protection, Privacy and Electronic Communications (Amendments etc) (EU Exit) Regulations 2020.

For the purpose of the Data Protection Legislation and this notice, we are the ‘data controller’. This means that we are responsible for deciding how we hold and use personal data about you. We are required under the Data Protection Legislation to notify you of the information contained in this privacy notice.

We have appointed a Data Protection Officer. Our Data Protection Officer is our Data Protection Point of Contact and is responsible for assisting with enquiries in relation to this privacy notice or our treatment of your personal data. Should you wish to contact our Data Protection Point of Contact you can do so using the contact details noted at paragraph ‎11(Contact Us), below.

2.      THE KIND OF INFORMATION WE HOLD ABOUT YOU

The information we hold about you may include the following:

• Your personal details (such as your name and/or address);
• Details of contact we have had with you in relation to the provision, or the proposed provision, of our services;
• Details of any services you have received from us;
• Our correspondence and communications with you;
• Information about any complaints and enquiries you make to us;
• Information from research, surveys, and marketing activities
• Tax Identification Numbers related to the services delivered

3.      HOW WE MAY COLLECT YOUR PERSONAL DATA

We obtain your personal data directly from you when:

• you request a proposal from us in respect of the services we provide;
• you engage us to provide our services and also during the provision of those services;
• you contact us by email, telephone, post or social media;

We may also obtain your personal data indirectly:

• from our client when it engages us to provide services and also during the provision of those services
• from third parties and/or publicly available resources (for example, from your employer or from Companies House.

4.      HOW WE USE PERSONAL DATA WE HOLD ABOUT YOU

We may process your personal data for purposes necessary for the performance of our contract with our clients and to comply with our legal obligations. This may include processing your personal data where you are an employee, subcontractor, supplier or customer of our client.

We may also process your personal data for the purposes of our own legitimate interests provided that those interests do not override any of your own interests, rights and freedoms which require the protection of personal data. This includes processing for marketing, business development, statistical and management purposes.

Please note that we may process your personal data for more than one lawful basis depending on the specific purpose for which we are using your data.

Situations in which we will use your personal data

We may use your personal data in order to:

• carry out our obligations arising from any agreements entered into between our clients and us (which will most usually be for the provision of our services);
• carry out our obligations arising from any agreements entered into between our clients and us (which will most usually be for the provision of our services) where you may be a subcontractor, supplier or customer of our client;
• provide you with information related to our services and our events or seek your thoughts and opinions on the services we provide; and
• notify you about any changes to our services.

In some circumstances we may anonymise or pseudonymise the personal data so that it can no longer be associated with you, in which case we may use it without further notice to you.

We may also process your personal data without your knowledge or consent, in accordance with this notice, where we are legally required or permitted to do so.

Data retention

We will only retain your personal data for as long as is necessary to fulfil the purposes for which it is collected.

When assessing what retention period is appropriate for your personal data, we take into consideration the requirements of our business and the services provided, any statutory or legal obligations and the purposes for which we originally collected the personal data.

Change of purpose

Where we need to use your personal data for a reason, other than the purpose for which we originally collected it, we will only use your personal data where that reason is compatible with the original purpose. If we need to use your data for a new purpose, we will notify you and communicate our legal basis for this new processing.

5.      DATA SHARING

We will share your personal data with third parties where we are required by law, where it is necessary to administer the relationship between us, or where we have another legitimate interest in doing so. This may include sharing your personal data with a regulator or to otherwise comply with the law.

“Third parties” includes third-party service providers and other entities within our group the members of our firm’s network. We only permit our third-party service providers to process your personal data for specified purposes and in accordance with our instructions

We may share your personal data with other third parties, for example in the context of the possible sale or restructuring of the business. We may also need to share your personal data with a regulator or to otherwise comply with the law.

6.      TRANSFERRING PERSONAL DATA OUTSIDE THE UNITED KINGDOM (UK)

We will transfer the personal data we collect about you to any European country and India, where we held offices, in order to perform our contract with you.

There are adequacy regulations under the Data Protection Act 2018 in relation to these countries therefore they will be deemed to provide an adequate level of protection for your personal information for the purpose of the Data Protection Legislation.

7.      DATA SECURITY

We have put in place commercially reasonable and appropriate security measures to prevent your personal data from being accidentally lost, used or accessed in an unauthorised way, altered or disclosed. In addition, we limit access to your personal data to those employees, agents, contractors and other third parties who have a business need to know. They will only process your personal data on our instructions and they are subject to a duty of confidentiality.

We have put in place procedures to deal with any suspected data security breach and will notify you and any applicable regulator of a suspected breach where we are legally required to do so.

8.      RIGHTS OF ACCESS, CORRECTION, ERASURE, AND RESTRICTION

Your duty to inform us of changes

It is important that the personal data we hold about you is accurate and current. Should your personal information change, please notify us of any changes of which we need to be made aware by contacting us, using the contact details below.

Your rights in connection with personal data

Under certain circumstances, by law you have the right to:

• Request access to your personal data. This enables you to receive details of the personal data we hold about you and to check that we are processing it lawfully.
• Request correction of the personal data that we hold about you.
• Request erasure of your personal data. This enables you to ask us to delete or remove personal data where there is no good reason for us continuing to process it. You also have the right to ask us to delete or remove your personal data where you have exercised your right to object to processing (see below).
• Object to processing of your personal data where we are relying on a legitimate interest (or those of a third party) and there is something about your particular situation which makes you want to object to processing on this basis. You also have the right to object where we are processing your personal information for direct marketing purposes.
• Request the restriction of processing of your personal data. This enables you to ask us to suspend the processing of personal data about you, for example if you want us to establish its accuracy or the reason for processing it.
• Request the transfer of your personal data to you or another data controller if the processing is based on consent, carried out by automated means and this is technically feasible.

If you want to exercise any of the above rights, please email our Data Protection Point of Contact at info@elmersgreen.co.uk

You will not have to pay a fee to access your personal data (or to exercise any of the other rights). However, we may charge a reasonable fee for the administrative costs of complying with the request if your request for access is manifestly unfounded or excessive. Alternatively, we may refuse to comply with the request in such circumstances.

We may need to request specific information from you to help us confirm your identity and ensure your right to access the information (or to exercise any of your other rights). This is another appropriate security measure to ensure that personal information is not disclosed to any person who has no right to receive it.

9.      RIGHT TO WITHDRAW CONSENT

In the limited circumstances where you may have provided your consent to the collection, processing and transfer of your personal data for a specific purpose (for example, in relation to direct marketing that you have indicated you would like to receive from us), you have the right to withdraw your consent for that specific processing at any time. To withdraw your consent, please email our Data Protection Point of Contac at info@elmersgreen.co.uk.

Once we have received notification that you have withdrawn your consent, we will no longer process your personal information (personal data) for the purpose or purposes you originally agreed to, unless we have another legitimate basis for doing so in law.

10.   CHANGES TO THIS NOTICE

Any changes we may make to our privacy notice in the future will be provided on our website at www.elmersgreen.co.uk.

This privacy notice was last updated on 01/04/2025.

11.   CONTACT US

If you have any questions regarding this notice or if you would like to speak to us about the manner in which we process your personal data, please email our Data Protection Point of Contact info@elmersgreen.co.uk or telephone 01925 987030.

You also have the right to make a complaint to the Information Commissioner’s Office (ICO), the UK supervisory authority for data protection issues, at any time. The ICO’s contact details are as follows:

Information Commissioner’s Office
Wycliffe House
Water Lane
Wilmslow
Cheshire
SK9 5AF

Telephone – 0303 123 1113 (local rate) or 01625 545 745

Website – https://ico.org.uk/concerns

APRIL 2025

Please find below our Schedule of Services, Terms and Conditions, and Privacy Notice. These documents outline the framework under which we deliver our services and manage client relationships.

When reviewing the Schedule of Services, please note that it includes a full list of all the services we offer. However, you only need to refer to the services specifically agreed upon in your Engagement Letter, as not all listed services may apply to you.

These documents were last reviewed in April 2025 and come into effect from that date. They are subject to change, and it is your responsibility to ensure you are reviewing the most current version available via the provided link.

SCHEDULE OF SERVICES

PREPARATION OF STATUTORY FINANCIAL STATEMENTS IN COMPLIANCE WITH THE COMPANIES ACT 2006

SCHEDULE OF SERVICES

This schedule should be read in conjunction with the engagement letter and the terms of business.

1. RESPONSIBILITIES AND SCOPE FOR FINANCIAL STATEMENTS PREPARATION SERVICES

1.1. Your responsibilities as directors or members

1.1.1. As directors of a company or members of a limited liability partnership (LLP), you are responsible for preparing financial statements that give a true and fair view and comply with the Companies Act 2006 (the Act), or where applicable, the Act as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 (SI 2008/1911). You must not approve the financial statements unless you are satisfied they meet these requirements.

1.1.2. If abridged accounts are to be prepared:

• For a company, you are responsible for obtaining the necessary consents from all shareholders and for delivering the required statement to the registrar in accordance with The Small Companies and Groups (Accounts and Directors’ Report) Regulations 2008 (as amended).
• For an LLP, you are responsible for obtaining the necessary consents from all members and for delivering the required statement to the registrar in accordance with The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008, as amended by The Limited Liability Partnerships, Partnerships and Groups (Accounts and Audit) Regulations 2016.

1.1.3. In preparing the financial statements, you are required to:

• Select suitable accounting policies and apply them consistently;
• Make judgements and estimates that are reasonable and prudent; and
• Prepare the financial statements on a going-concern basis unless it is inappropriate to presume that the entity will continue in business.

1.1.4. You are responsible for keeping adequate accounting records that disclose with reasonable accuracy the financial position of the entity at any time, and for ensuring that the financial statements comply with applicable accounting standards and relevant legislation.

1.1.5. You are also responsible for safeguarding the assets of the entity and for taking reasonable steps to prevent and detect fraud and other irregularities.

1.1.6. If audit exemption is being claimed, you are responsible for determining whether the entity meets the relevant conditions for exemption from an audit under sections 477, 479A, or 480 of the Companies Act 2006 (as applied, where relevant, to LLPs), and whether it can be claimed for the year.

1.1.7. You are responsible for ensuring compliance with all applicable laws and regulations and for identifying, preventing, and detecting any non-compliance.

1.1.8. You agree to provide us with all necessary accounting records, information, and explanations, including minutes of relevant meetings, as and when required for the purpose of our work.

1.1.9. If the financial information we prepare is published electronically (e.g., on a website), you must:

• Inform us of the planned publication and obtain our consent;
• Ensure that the published information is not misleading;
• Implement controls to prevent unauthorised changes to published information.

We reserve the right to withhold our consent for publication if the information is presented inappropriately.

1.1.10. You are responsible for maintaining and ensuring the integrity of all electronically published information. We are not responsible for reviewing or monitoring any changes after initial publication.

1.2. Our responsibilities as accountants

1.2.1. You have engaged us to help prepare financial statements in accordance with the Companies Act 2006 (as applied, where relevant, to LLPs) and applicable accounting standards (e.g., FRS 102, FRS 102 Section 1A, or FRS 105). These statements may be used for filing with the Registrar of Companies and for meeting tax compliance obligations.

1.2.2. Unless you advise otherwise, we will plan our work on the basis that no statutory or regulatory assurance report (e.g., audit) is required. Our work will be limited to compiling the financial statements from the records and information you provide, and we will not perform procedures required for assurance engagements such as audits or reviews.

1.2.3. You have advised us that the entity is exempt from audit. We will not independently verify this, but if we discover otherwise, we will notify you.

1.2.4. As we are not undertaking an audit, we will not provide assurance that the financial statements are free from material misstatement, nor will we be assessing internal controls or searching for fraud or error.

1.2.5. Because we are not verifying the records, we cannot confirm that the financial statements will present a true and fair view. Responsibility for their accuracy remains with you.

1.2.6. We will inform you if we believe your accounting records are insufficient for preparing financial statements and may recommend improvements.

1.2.7. We have a professional obligation to ensure financial statements are prepared in accordance with applicable accounting principles. If accounting policies or principles used are inappropriate, we will not compile the statements.

1.2.8. If we believe the financial statements may be misleading, we will discuss necessary adjustments or disclosures with you. If these are not made and we consider the statements misleading, we will withdraw from the engagement.

1.2.9. We may request written confirmation of oral information or explanations provided to us during our work.

1.2.10. Where relevant, we will convert the financial statements into iXBRL format for HMRC filing. We will use professional software to apply standard data tags and will seek your approval for non-standard or judgemental tags. You remain legally responsible for the iXBRL submission and will be required to approve the tagging report.

PART 2 C – PREPARATION OF NON-STATUTORY FINANCIAL STATEMENTS IN COMPLIANCE WITH A FINANCIAL REPORTING FRAMEWORK

SCHEDULE OF SERVICES

This schedule should be read in conjunction with the engagement letter and the terms of business.

1. RESPONSIBILITIES AND SCOPE FOR FINANCIAL STATEMENTS PREPARATION SERVICES

• Your Responsibility for the Preparation of Financial Statements

1.1.1. You are responsible for providing us with full access to all accounting records, supporting documentation, and any other relevant financial information necessary for the preparation of the financial statements. This includes minutes of management meetings and any other material disclosures relevant to the compilation.

1.1.2. You are responsible for ensuring, to the best of your knowledge and belief, that all financial information used internally or externally is complete and accurate. You must also ensure that the activities of the entity are conducted honestly, the assets are safeguarded, and reasonable steps are taken to prevent and detect fraud or other irregularities.

1.1.3. You are responsible for reviewing and approving the financial statements to confirm that they have been prepared on an appropriate accounting basis, and for confirming that all necessary information and explanations have been provided to us.

1.1.4. You are responsible for ensuring that the entity complies with all applicable laws and regulations, and for identifying, preventing, and addressing any instances of non-compliance.

1.2. Our Responsibilities as Accountants

1.2.1. You have engaged us to assist with the preparation of financial statements that comply with relevant accounting standards and legislation, and that provide sufficient and appropriate information for taxation and other statutory purposes. We will compile the financial statements based on your accounting records and the information and explanations you provide.

1.2.2. We will plan our work on the basis that no statutory report (such as an audit or assurance report) is required unless you notify us otherwise in writing. We may carry out such enquiries or procedures as we consider appropriate but are not required to carry out procedures necessary for assurance engagements unless specifically agreed in writing.

1.2.3. Our work does not constitute an audit under International Standards on Auditing (UK) or other similar standards. As such, we cannot provide assurance that the financial statements are free from material misstatement due to fraud, error, or other irregularities, nor will we assess the adequacy of internal controls.

1.2.4. Since we are not undertaking an audit or assurance engagement, we cannot express any opinion as to whether the financial statements present a true and fair view.

1.2.5. We will advise you on whether your records are sufficient for the preparation of financial statements and recommend improvements where we identify deficiencies during our work.

1.2.6. We have a professional duty to prepare financial statements in accordance with generally accepted accounting principles based on the records and information you provide. The selected accounting policies will be disclosed in the notes to the financial statements. We will not compile financial statements if we believe the accounting policies used are inappropriate.

1.2.7. We also have a professional responsibility not to allow our name to be associated with financial information that we believe may be misleading. If we become aware of such concerns, we will discuss them with you to agree appropriate adjustments or disclosures. If these are not made or we are not provided with sufficient information, we will withdraw from the engagement.

1.2.8. As part of our normal procedures, we may request that you confirm in writing any oral representations made during the course of our work.

1.2.9. Where applicable, and where you have instructed us to do so, we will convert the financial statements into the iXBRL (inline eXtensible Business Reporting Language) format required by HMRC. We will use professional software to apply standard tags without prior approval, consulting you only on non-standard or judgement-based tags. You remain legally responsible for the accuracy of the iXBRL data, and we will provide a tagging report for your approval.

PART 2 D – PREPARATION AND MAINTENANCE OF ACCOUNTING RECORDS

SCHEDULE OF SERVICES

This schedule should be read in conjunction with the engagement letter and the terms of business.

1. RESPONSIBILITIES AND SCOPE FOR ACCOUNTING SERVICES

• Your Responsibility to Provide Information

1.1.1 You agree to make available, on a timely basis and as requested, all accounting records and related financial information necessary for us to carry out our work. This includes, but is not limited to, supporting documents and minutes of management meetings. You also undertake to provide full and accurate explanations and disclosures relevant to the preparation and maintenance of the accounting records.

1.1.2 You are responsible for ensuring, to the best of your knowledge and belief, that the financial information provided—whether for internal use or accounting purposes—is complete and accurate. You are also responsible for ensuring that business activities are conducted with integrity, that assets are adequately safeguarded, and that reasonable steps are taken to prevent and detect fraud or other irregularities.

1.1.3 It is your responsibility to ensure that the business complies with all relevant laws and regulations. This includes taking reasonable steps to prevent any instances of non-compliance and identifying and addressing any that may occur.

• Preparation and Maintenance of Accounting Records

Our Responsibilities

1.2.1 If you are subscribed to our monthly retainer service, we have agreed to undertake the following accounting and related services on your behalf:

• Maintain and update the accounting records of the business; and
• Complete postings to the nominal ledger.
• Maintain records of all receipts and payments;
• Perform monthly reconciliations of all bank balances with the respective bank statements;
• Provide a detailed listing of all ledger balances;

Your Responsibilities

1.2.2 You have agreed that you will:

• Maintain and reconcile the purchase and sales ledgers;
• Prepare stocktake details annually, including quantities, pricing, and totals, in a format that allows for verification against supplier invoices / Provide us with the valuation report prepared by your independent stock takers; and
• Prepare a summary of work-in-progress at the accounting date and supply the underlying documentation and information used in its compilation.

PART 2 E – PERSONAL TAX – INDIVIDUALS, SOLE TRADERS AND COUPLES

SCHEDULE OF SERVICES

This schedule should be read in conjunction with the engagement letter and the terms of business.

RESPONSIBILITY AND SCOPE FOR PERSONAL TAX SERVICES

1.1 Recurring Compliance Work

1.1.1 We will prepare your self-assessment tax return(s), including any supplementary pages required, based on the information and explanations provided by you. This includes where applicable, income as a deemed employee under the IR35/off-payroll working rules. Once we have received your formal approval, we will submit the return(s) to HM Revenue & Customs (HMRC).

1.1.2 If you operate a business as a sole trader, we will prepare your business accounts using either generally accepted accounting principles or the cash basis (as elected), based on records and other relevant information you or your representatives provide.

1.1.3 If you receive property income, we will calculate the rental income and allowable expenses, applying either the cash basis or accruals basis depending on your election and applicable thresholds.

1.1.4 We will calculate your income tax, National Insurance contributions (NICs), and capital gains tax (CGT) liabilities and advise on payment amounts and due dates. We will also review HMRC’s tax calculations, submit any required repayment claims, and advise on late payment interest or penalties if applicable.

1.1.5 Based on information provided by you, we will advise on relevant tax claims and elections (excluding tax credits and universal credit unless separately instructed). Where authorised, we will submit these to HMRC on your behalf.

1.1.6 We will review PAYE coding notices provided to us and advise accordingly.

1.1.7 If instructed and subject to an additional fee, we will prepare and submit in-year CGT returns for disposals of UK residential property, and if applicable, non-residential property and property-rich entities for non-residents. These must be submitted within 60 days of completion.

1.2 Additional Services and Exclusions

1.2.1 Our standard services are limited to those outlined above. Any additional work you ask us to carry out will be agreed upon separately, potentially under a new engagement letter.

Examples of additional services include, but are not limited to:

• Advice on drawing funds from personal service companies under IR35;
• Guidance on cash or accruals basis accounting and related elections;
• Assistance with Making Tax Digital for Income Tax Self-Assessment (MTD ITSA);
• Advice on aligning your accounting year with the tax year and claiming overlap relief;
• Preparation and submission of in-year CGT returns;
• Advice on one-off transactions, such as asset sales;
• Trust registration requirements;
• Responding to HMRC enquiries or investigations;
• Amending previously submitted tax returns;
• VAT registration and compliance (UK and non-UK);
• Guidance on tax credits and universal credit, subject to household circumstances.

1.2.2 If specialist advice is required, we may refer you to a qualified specialist.

1.3 Legal and Policy Changes

1.3.1 Advice is based on current laws and practices at the time it is given. We are not responsible for the consequences of relying on outdated advice if laws or your circumstances change.

1.3.2 We do not accept liability for losses arising from legal or policy changes announced after the advice was given.

1.4 Your Responsibilities

1.4.1 You are legally responsible for:

• Ensuring the completeness and accuracy of your tax returns;
• Filing returns on time;
• Paying taxes by the due dates.

1.4.2 You must review and approve your tax return(s) before submission. This responsibility cannot be delegated.

1.4.3 You remain responsible for any errors in returns submitted without your formal approval if they are based on your instructions.

1.4.4 To assist us effectively, you agree to:

• Fully disclose all sources of income, deductions, and relevant transactions;
• Provide accurate and complete information;
• Notify us promptly of property disposals and associated costs, especially if you may be non-resident for CGT purposes;
• Authorise us to contact relevant third parties where needed;
• Submit required information in time for us to meet filing deadlines.

1.4.5 You must inform us of any material changes in your circumstances that could impact your tax position.

1.4.6 If HMRC sends you an agent authorisation code or form 64-8, you agree to share it with us promptly to enable us to act on your behalf.

1.4.7 You agree to share any correspondence from HMRC with us in a timely manner to allow for a proper response.

1.4.8 You are responsible for monitoring your business turnover for VAT registration thresholds. If you instruct us to assist, we will help you register within the required time frame, subject to timely notification.

1.4.9–1.4.11 If you import or supply goods/services within the EU and are subject to VAT rules such as IOSS, OSS or local VAT registration, it is your responsibility to comply. We can advise if instructed.

1.4.12 You are responsible for employment taxes and for assessing the employment status of anyone working for you, including under the off-payroll rules if applicable. We can advise on this only if separately engaged to do so.

1.5 Joint Clients (Couples)

1.5.1 Where we act for you and your spouse/partner, both parties agree that we may communicate with either of you regarding your shared or individual tax affairs unless instructed otherwise. This includes matters such as the high income child benefit charge, marriage allowance, and CGT on jointly held assets.

1.5.2 Each of you confirms that any instruction, information or signature provided by one of you is given on behalf of both, unless explicitly stated otherwise. If a conflict of interest arises, we may need to cease acting for one or both of you or refer you for separate advice.

PART 2 F – TRUSTS AND ESTATES TAX RETURNS

SCHEDULE OF SERVICES

This schedule should be read in conjunction with the engagement letter and the terms of business.

1. RESPONSIBILITIES AND SCOPE FOR TRUST / ESTATE TAX RETURN SERVICES

• Ongoing Compliance Services

1.1.1 We will prepare the trust’s/ estate’s self-assessment tax return and any required supplementary pages, as well as inheritance tax returns, based on the information and explanations you provide. Once you approve the draft, we will file the return with HMRC on your behalf.

1.1.2 We will maintain the accounting records for the trust/ estate using the information provided by you or your representatives, for use in preparing annual accounts and tax returns.

1.1.3 We will prepare income, expenditure, and capital accounts (with a balance sheet) from the accounting records and information provided, and submit these for your approval.

1.1.4 We will calculate the income tax, capital gains tax, and inheritance tax liabilities of the trust / estate, advise you of payment amounts and deadlines, and alert you to any late payment interest or penalties. We will also verify HMRC’s tax calculations and initiate refund claims if applicable.

1.1.5 We will advise on claims and elections relating to the tax return, based on the information you supply. If instructed, we will submit these to HMRC in the required format.

1.1.6 Where applicable, we will prepare and file in-year capital gains tax (CGT) returns for disposals of UK residential property (and, for non-UK resident trusts, UK non-residential property or property-rich entities), subject to a separate fee. Please note returns must be filed within 60 days of completion.

1.1.7 Where income or capital distributions to beneficiaries are required under the terms of the trust / will, we will assist in preparing the necessary documentation.

1.1.8 Trustees must maintain accurate records of beneficial ownership and comply with trust registration obligations under anti-money laundering regulations.

If not yet registered with HMRC:

• 1.9 Trustees will be responsible for completing trust registration and confirming registration for tax purposes.

or

• 1.10 We will register the trust using the information you provide, assuming all data is received within reasonable time based on mutually discussed fees.

If already registered:

• 1.11 Trustees will be responsible for updating or confirming registration details annually.
  or
• 1.12 We will update or confirm registration details using information you provide, subject to timely receipt based on mutually discussed fees.

• Foreign Account Tax Compliance Act (FATCA) and Common Reporting Standard (CRS)

• Under FATCA (US regulations), the trust must determine whether it is a Financial Institution (FI) or a Non-Financial Foreign Entity (NFFE). If it is an FI, registration with the IRS and annual HMRC reporting is required.

• Similar obligations may arise under CRS with over 90 other jurisdictions.

• We can assist with categorisation and compliance under FATCA/CRS based on mutual agreed fees. If the trust is an FI, we will help assess system adequacy for identifying foreign beneficiaries and support the IRS registration. You agree to provide all necessary information to complete the annual return to HMRC accurately.

• Excluded, Ad Hoc, and Advisory Services

1.3.1 Our services are limited to those outlined above. Any additional work will only be undertaken upon request and may be subject to separate engagement terms and fees. Examples include:

• Guidance on HMRC trust registration for non-taxable trusts
• Inheritance tax charge advice and payment schedules
• Advice on one-off transactions (e.g., asset sales)
• Preparation of inheritance tax forms
• HMRC enquiries into tax returns
• HMRC assessments related to inheritance tax

1.3.2 Where specialist advice is required, we may refer you to a third party or seek advice on your behalf.

1.4 Legal and Regulatory Changes

1.4.1 Advice previously given should not be relied on without checking it remains valid following any legal, policy, or circumstantial changes.

1.4.2 We accept no liability for losses resulting from changes in law, practice, or policy announced after our advice is given.

1.5 Your Responsibilities

1.5.1 As trustees / executors, you are legally responsible for:

• Ensuring tax returns are correct and filed on time
• Paying tax on time
• Maintaining registration with HMRC’s Trust Registration Service

1.5.2 Legal responsibility for approving the return cannot be delegated. You agree to review and confirm accuracy before approval.

1.5.3 You remain responsible for errors in unapproved returns based on the data provided to us.

1.5.4 You agree to:

• Disclose all relevant income, charges, allowances, and capital transactions
• Provide true, complete, and timely information
• Provide trust registration/update data as required
• Notify us within 30 days of any distributions
• Disclose details of UK residential property disposals before completion
• Authorise contact with third parties if necessary
• Supply all relevant information at least 15 days before the deadline. A surcharge may apply for late submissions
• Provide sufficient information for timely inheritance tax return preparation
• Supply receipts, payments, and invoices to prepare accounts

1.5.5 Keep us informed of any material changes affecting tax liabilities. If in doubt, consult us.

1.5.6 Forward your HMRC agent code or signed form 64-8 to allow us to act as your tax agent.

1.5.7 Send us all HMRC communications promptly to ensure timely handling within statutory limits.

1.5.8–1.5.12 Additional VAT, IOSS/OSS, and payroll obligations apply depending on your specific activities. You remain responsible for compliance unless we are separately engaged to assist.

1.5.13 Under the Trustee Act 2000, trustees are responsible for regularly reviewing the trust’s investments and maintaining a clear investment policy.

• We will maintain the accounting records of the trust/ estate on your behalf from the information and explanations provided to us by you, or by others on your behalf, for the purposes of preparing the annual trust/ estate accounts and tax returns.

• We will prepare the income and expenditure and capital accounts together with a balance sheet of the trust/ estate from the accounting records and other information and explanations provided by you, or by others on your behalf, and will obtain your approval of the accounts.

• We will calculate the income tax and capital gains tax and inheritance tax liabilities of the trust/ estate and will advise you how much you should pay and when. We will advise you on the interest and penalty implications if tax is paid late. We will also check HMRC’s calculations of the tax liabilities and initiate repayment claims if tax has been overpaid.

• We will advise you on possible tax-return-related claims and elections arising from information supplied by you. If instructed by you, we will make such claims and elections in the form and manner required by HMRC.

• There is an in-year capital gains tax (CGT) reporting and payment requirement for disposals of UK residential property. Where instructed, and subject to a separate fee, we will prepare the in-year return for each disposal, calculate the CGT due and submit the return to HMRC.

• If the terms of the trust/ will require income or capital payments to be made to the beneficiaries, we will assist you in preparing all necessary forms relating to such payment.

• Under anti-money laundering legislation trustees are obliged to maintain accurate and up-to-date records in writing of beneficial owners and report specified information about the trust to HMRC.

If the trust or estate is not already registered on HMRC’s trust register

• We will register the trust along with details of settlors, trustees and beneficiaries on the trust register maintained by HMRC using the information provided by you. Provided the necessary information is supplied by within 30 days of the deadline we will register the trust along with the appropriate details within the time limits required.

If the trust or estate is already registered on HMRC’s trust register

• We will update or confirm that no change is required to the details of settlors, trustees and beneficiaries on the trust register maintained by HMRC using the information provided by you. Provided that the necessary information is supplied within 30 days of the deadline we will update/confirm the appropriate details on HMRC’s trust register within the time limits required.

Note : Not all clients will be within the scope of FATCA

• Foreign Account Tax Compliance Act (FATCA) and Common Reporting Standards (CRS) 
  • International Tax Compliance (United States of America) Regulations 2014 require the trust to determine whether it is a Financial Institution (FI) or a passive or active Non-Financial Foreign Entity (NFFE). If the trust is a Financial Institution, it must register with the US Internal Revenue Service (IRS) and file annual returns with HMRC.
  • Similar arrangements have or will come into force with more than 90 other countries. This is, or will be, based on Common Reporting Standards (CRS).

• We will assist you with your responsibilities under the International Tax Compliance (United States of America) Regulations 2013 as a result of the USA Foreign Account Tax Compliance Act (FATCA).

• We will assist with the categorisation of the trust into either a Financial Institution (FI) or a Non-Financial Foreign Entity (NFFE) that is either passive or active.

If the trust is determined to be a Financial Institution, we can/ will assist in ensuring that the trust has adequate systems to identify beneficiaries that are foreign citizens (either US or other countries under Common Reporting Standards (CRS)), who are or who may become beneficiaries to whom payments may be made. We can also assist you with the initial online registration with the IRS

• You agree to provide us sufficient information to enable the annual return to HMRC to be accurately completed. You must provide us with all the information that we may require from time to time to enable us to advise you properly, and the provision of adequate systems shall always remain your ultimate responsibility.

• Excluded, ad hoc and advisory work

• 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. If appropriate we will agree with you a separate fee for any such work that you instruct us to undertake. Examples of such work that you may wish to instruct us to undertake include:

1. advising on whether trusts – including any non-taxable trusts – should be registered on HMRC’s trust registration service (NB the deadline for registering non-taxable trusts has been extended to 1 September 2022);
2. advising you of the occasions of charge to inheritance tax, the basis of the charge and when the tax liability is due for payment;
3. advising on ad hoc transactions (for example the sale of assets held by the trust /estate);
4. preparing inheritance tax returns;
5. dealing with any enquiry opened into the trust’s/ estate’s tax returns by HMRC; and
6. dealing with any enquiries and/or assessments raised by HMRC in relation to inheritance tax.

• If specialist advice is required, we may need to seek this from, or refer you to, appropriate specialists.

• Changes in the law, in practice or in public policy

• 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, practice, public policy or in your circumstances.

• We will accept no liability for losses arising from changes in the law (or the interpretation thereof), practice or public policy that are first published after the date on which the advice is given.

• Your responsibilities

• As trustees/ executors you have legal responsibility for:

1. ensuring that the trust’s/ estate’s tax returns are correct and complete;
2. filing any returns by the due date;
3. paying tax on time; and
4. ensuring that the trust is recorded on HMRC’s Trust Registration Service.

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

• Legal responsibility for approval of the return cannot be delegated to others. As Trustees/ Executors you agree to check that the returns that we have prepared 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.

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

1. that all returns are to be made on the basis of full disclosure of all sources of income, charges, allowances and capital transactions;
2. to provide all information necessary for dealing with the trust’s/ estate’s taxation affairs; we will rely on the information being true, correct and complete and will not audit the information;
3. to provide all information necessary for dealing with the trust’s/ estate’s registration and updates on HMRC’s trust register, eg details of settlors, beneficiaries and trustees; we will rely on the information being true, correct and complete and will not audit the information;
4. to advise us of distributions made within 30 days of such an event;
5. to provide full details of all UK residential property disposals including associated costs/valuations prior to disposal. Where you consider that you will be non-UK resident in the tax year of disposal, full details of all UK property disposals, including disposals of shares in property rich companies, must be advised prior to exchange of contracts on any property disposal. If information is received after this, we cannot guarantee that we can provide advice on the amount of capital gains tax due or submit an in-year return within 30 days of the completion of the disposal;
6. to authorise us to approach such third parties as may be appropriate, for information that we consider necessary to deal with the trust’s/ estate’s taxation affairs;
7. to provide us with information in sufficient time for the trust’s/ estate’s self-assessment tax returns to be completed and submitted by the due date; to do this, we need to receive all relevant information at least 30 days before the due date; if feasible, we may agree to complete your return within a shorter period but may charge an additional fee mutually discussed for so doing;
8. to provide us with information in sufficient time for the trust’s/ estate’s inheritance tax returns to be completed and submitted by the due dates; and
9. to provide us with records of receipts & payments, records of invoices issued & received, and all other information to enable us to prepare income & expenditure and capital accounts.

• You will keep us informed of material changes in circumstances that could affect the income, capital gains and inheritance tax liabilities of the trust/ estate. If you are unsure whether the change is material, please tell us so that we can assess its significance.

• 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 agent with HMRC.

• You will forward to us HMRC statements of account, copies of notices of assessment, letters and other communications received from HMRC by you in time to enable us to deal with them as may be necessary within the statutory time limits. Although HMRC have the authority to communicate with us when form 64-8 has been submitted, it is still 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.

• If you carry on a business as trustees/ executors and make supplies for VAT purposes, you are responsible for monitoring the 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 the UK VAT registration threshold is exceeded, and you would like us to assist in notifying HMRC of your liability to be VAT registered, we will be pleased to assist in the VAT registration process. Please notify us of your instructions to assist with the VAT registration in good time to enable a VAT registration form to be submitted within the time limit of one month following the month in which the VAT registration threshold in force at that time was exceeded. We will not be responsible if you fail to notify us in time and, as a result, incur a late registration penalty. The same applies for equivalent non-UK taxes.

• You are responsible for employment taxes, pensions (including auto-enrolment) and the assessment of the employment status of your workers. If your business is not small, you are responsible for assessing the employment status under the off-payroll working rules of any contractors providing services to your business and for employment taxes if they are deemed employees. If you do not understand what you need to consider or what action you need to take, please ask us. We will not be in a position to assist you in complying with your responsibilities if we are not engaged to provide such a service. We are not responsible for any penalty that is incurred.

• You are reminded that, under the Trustee Act 2000, it is your responsibility to regularly review the trust investments and to have a clear investment policy.

PART 2 G – PARTNERSHIP TAX RETURNS

SCHEDULE OF SERVICES

This schedule should be read in conjunction with the engagement letter and the terms of business.

1. RESPONSIBILITIES AND SCOPE FOR PARTNERSHIP TAX RETURN SERVICES

• Recurring Compliance Work

1.1.1 We will prepare the partnership’s self-assessment tax return and accompanying annual partnership statement, including all relevant supplementary pages, using the information and explanations provided by the partnership. Once we receive your formal approval, we will submit the return to HM Revenue & Customs (HMRC).

1.1.2 We will prepare the partnership’s business accounts in accordance with the agreed and applicable accounting framework, using the books, records, and other information provided by you or by third parties acting on your behalf.

1.1.3 Based on the partnership accounts, we will compute the income and capital gains figures for inclusion in the partnership tax return.

1.1.4 If requested, we will advise you, in your capacity as partners, on potential claims and elections relating to the partnership tax return, based on the information provided in the format and manner required by HMRC.

1.1.5 Where instructed, we will provide each partner—or their agent—with their respective allocation from the partnership return, derived from the partnership statement, to enable them to complete their individual self-assessment tax returns.

1.1.6 This engagement covers work relating solely to the tax affairs of the partnership. Services related to the individual partners (e.g., preparation of their personal tax returns or associated elections and claims) will be covered under a separate engagement letter.

• Excluded, Ad Hoc, and Advisory Work

1.2.1 Our services are limited to those described above. Any additional taxation, advisory, or one-off services that you instruct us to perform will be considered separately and may be subject to a separate engagement letter at our discretion. A separate fee will be agreed with you for such work. Examples include, but are not limited to:

1. a) Advising on Making Tax Digital for Income Tax Self-Assessment (MTD ITSA), which will require digital recordkeeping and quarterly/annual submissions via compatible software. MTD ITSA will be mandatory for general partnerships from 6 April 2025 for trading and property income;
   b) Advising on the potential benefits and implications of aligning your partnership’s accounting year end with the tax year, and assisting with the transition and overlap relief claims;
   c) Advice on one-off transactions (e.g., acquisition or disposal of assets);
2. d) Advice on the use of the cash basis for accounting, including assistance with making the relevant election;
3. e) Handling HMRC enquiries into the partnership’s tax return;
4. f) Preparation of amended tax returns and related correspondence with HMRC.

1.2.2 Where specialist advice is needed, we may either seek it from, or refer you to, appropriately qualified professionals.

• Changes in Law, Practice, or Public Policy

1.3.1 We do not accept liability if you act on our prior advice without first confirming that it remains valid in light of changes to legislation, HMRC practice, public policy, or your own circumstances.

1.3.2 We are not liable for any losses arising from changes in law (or its interpretation), practice, or policy that occur after the date the advice was provided.

• Your Responsibilities

• The partners are legally responsible for:

1. a) Ensuring the partnership tax returns are accurate and complete;
2. b) Filing returns by the statutory deadline; and
3. c) Paying tax liabilities on time.

Failure to meet any of these obligations may result in interest and/or penalties.

1.4.2 Legal responsibility for reviewing and approving the tax return cannot be delegated. You must ensure the returns and statements we prepare are accurate and complete before approval.

1.4.3 You remain responsible for any errors in returns submitted without formal approval, based solely on the data you provided to us.

1.4.4 To allow us to fulfil our responsibilities, you agree:

1. a) To ensure full disclosure of all income sources, charges, allowances, and capital transactions in your returns;
2. b) To provide complete and accurate information and documents relating to the partnership’s tax affairs; we will rely on this information and will not audit it;
3. c) To authorise us to contact third parties for information necessary to address the partnership’s tax obligations; and
4. d) To provide all necessary information in good time to allow us to complete and file the tax return by the due date. To meet this timeline, we require all relevant documentation by reasonable time.

1.4.5 You must inform us of any material changes in circumstances that may impact the partners’ tax positions—such as changes in partnership structure or profit-sharing arrangements. If you are unsure whether a change is material, please consult us.

1.4.6 HMRC will send an agent authorisation code valid for 30 days. Please forward this to us promptly so we may register as your tax agent with HMRC.

1.4.7 You agree to send us any HMRC correspondence promptly so we can respond within statutory deadlines. Although HMRC may deal directly with us once form 64-8 is submitted, they are not required to send us all communications—so your cooperation is essential.

1.4.8 You are responsible for monitoring the partnership’s turnover in relation to VAT thresholds. If you are unsure of your obligations, please ask us. If the turnover exceeds the UK VAT registration threshold and you would like our help with registration, please notify us in good time to allow submission of the required VAT registration form within one month of exceeding the threshold. We will not be responsible for penalties if you fail to notify us in time. The same applies to similar taxes in other jurisdictions.

1.4.9 You are responsible for employment-related obligations, including payroll taxes, pensions (e.g., auto-enrolment), and assessing the employment status of workers. If your business is not considered “small,” you must also assess contractors under the off-payroll working rules and handle employment taxes for deemed employees. If you need guidance, please contact us. Unless separately engaged, we are not responsible for assisting you with these obligations or any penalties incurred.

PART 2 H – LIMITED LIABILITY PARTNERSHIPS (LLP) TAX RETURN

SCHEDULE OF SERVICES

This schedule should be read in conjunction with the engagement letter and the terms of business.

1 RESPONSIBILITIES AND SCOPE FOR LIMITED LIABILITY PARTNERSHIPS (LLP) TAX RETURN SERVICES

1.1 Recurring compliance work

1.1.1 We will prepare the LLP’s self-assessment tax return, including the annual partnership statement and any supplementary pages required, based on the information and explanations provided by the LLP. Once we receive your formal approval, we will file the return with HM Revenue & Customs (HMRC).

1.1.2 We will compile the LLP’s business accounts in accordance with generally accepted accounting principles, using the books, records, and other relevant information supplied by you or on your behalf.

1.1.3 We will calculate the LLP’s income and capital gains based on the business accounts, for inclusion in the tax return.

1.1.4 If instructed, we will advise the LLP members on possible claims and elections related to the tax return, based on the information provided in the format required by HMRC.

1.1.5 If requested, we will provide each LLP member, or their agent, with a summary of their allocation from the partnership statement to assist in the preparation of their personal self-assessment tax returns.

1.1.6 Our work under this engagement is limited to the LLP’s tax affairs. Any services for individual members (such as their personal tax returns or related claims and elections) will be covered under a separate engagement letter.

1.2 Excluded, ad hoc, and advisory work

1.2.1 Our services under this agreement are limited to the scope described above. Any additional taxation, advisory, or ad hoc services will be outside this scope and provided only upon your specific instruction. Such services may require a separate engagement letter and fee arrangement. Examples of services you might engage us for include:

a) Advice on ad hoc transactions (e.g., sale or purchase of assets);

b) Handling enquiries into the LLP’s tax return opened by HMRC; and

c) Preparing amended returns and liaising with HMRC, if needed.

1.2.2 If specialist advice is necessary, we may consult with or refer you to relevant professionals.

1.3 Changes in the law, practice, or public policy

1.3.1 We will not be liable if you rely on advice we gave previously without first confirming with us that it remains valid following any change in law, practice, policy, or your specific circumstances.

1.3.2 We accept no liability for losses resulting from changes in legislation, its interpretation, practice, or policy first made public after we provided our advice.

1.4 Your responsibilities

1.4.1 LLP members are legally responsible for:

a) Ensuring that the LLP’s self-assessment tax returns are accurate and complete;
b) Submitting returns by the required deadlines; and

c) Paying any tax due on time.

Failure to do so may result in penalties and/or interest.

1.4.2 The legal responsibility for approving the tax return cannot be delegated. You are required to review and confirm the accuracy and completeness of the returns we prepare before giving your approval.

1.4.3 You remain responsible for errors in returns submitted without your approval, based solely on the information you have provided to us.

1.4.4 To support our work, you agree to:

a) Ensure full disclosure of all income sources, deductions, allowances, and capital transactions;
b) Provide all necessary documents and information concerning the LLP’s affairs — we will assume the accuracy and completeness of these and will not audit them;
c) Authorise us to obtain relevant information from third parties as required; and
d) Supply us with timely information to allow completion and filing of the LLP’s tax return by the due date, following the end of the tax year. To meet this deadline, all information must be received at least 15 days. If late, we may still complete the return but may apply an additional charge as may be mutually decided.

1.4.5 You must keep us informed of any material changes affecting the LLP’s tax position, such as changes in members or profit-sharing arrangements. If unsure whether a change is material, please let us know.

1.4.6 HMRC will issue an agent authorisation code valid for 30 days. Please send this to us immediately upon receipt so we can register as your agent with HMRC.

1.4.7 You agree to forward any correspondence from HMRC to us promptly. While HMRC may communicate directly with us upon receipt of form 64-8, they are not required to send us copies of all letters issued to you.

1.4.8 You are responsible for monitoring the LLP’s monthly turnover to assess whether it needs to register for VAT, if not already registered. If the threshold is exceeded and you would like us to handle VAT registration, please notify us in time. We can assist with the registration, provided we are instructed early enough to file within one month following the month in which the threshold was crossed. We are not liable for late registration penalties due to delayed notification. This applies equally to non-UK VAT regimes.

PART 2 I – CORPORATION TAX

SCHEDULE OF SERVICES

This schedule should be read in conjunction with the engagement letter and the terms of business.

1.1 Recurring Compliance Services

1.1.1 We will use commercial software to apply iXBRL tags to the financial statements as appropriate for submission via the HMRC gateway.

1.1.2 Where necessary, we will manually review and amend iXBRL tags if the software’s tagging is missing or inaccurate.

1.1.3 On request, we will provide you with a summary of the applied tags for your approval.

1.1.4 We will prepare the company’s corporation tax self-assessment (CTSA) return. After receiving your formal approval and signature, we will submit the return to HMRC.
If you provide pre-tagged accounts, please note we accept no liability for errors in tagging or any rejection of the iXBRL return by HMRC.

1.1.5 We will prepare the corporation tax computation and supporting schedules using the financial statements and information provided by you.

1.1.6 We will inform you of the corporation tax amount payable and relevant payment dates. Where applicable, we will initiate claims for overpaid tax and advise on late payment interest and penalties.

1.1.7 If instalment payments are due, we will notify you and, based on the information you provide, calculate quarterly instalments by the agreed date.

1.1.8 We will advise on relevant tax claims and elections arising from the information you provide. Where instructed, we will make such submissions to HMRC.

1.1.9 Our services under this engagement relate solely to the company. Any work for directors or shareholders personally will require a separate engagement.

• Excluded Services, Ad Hoc and Advisory Work

1.2.1 Our services are limited to those set out in section 1.1 unless we agree otherwise in writing. Additional work may be subject to a separate engagement and fee agreement.

Examples include:

• Advice on ad hoc transactions (e.g., asset sales or acquisitions)
• Calculation and advice on section 455 tax for director/shareholder loans
• R&D and other enhanced expenditure reliefs
• Capital allowance claims on property renovations
• Group allowance statements for carried-forward losses
• Corporate interest restriction returns
• Country-by-country reporting, senior accounting officer responsibilities, and tax strategy compliance
• Responding to HMRC enquiries or compliance checks
• Preparing and submitting amended tax returns and liaising with HMRC

1.2.2 (For engagements involving personal service companies)

Where applicable, we may also provide:

• Advice on deemed employment status under IR35 (see 1.2.3)
• Calculations of deemed employment payments and payroll reporting
• Payroll compliance under the off-payroll working rules
• Assistance determining company size and preparing status determination statements for contractors

1.2.3 We may refer you to a specialist or seek external advice where complex or specialist input is required.

1.3 Legal, Regulatory and Policy Changes

1.3.1 We are not responsible if you rely on prior advice without confirming its validity in light of subsequent legal, regulatory, or policy changes.

1.3.2 We accept no liability for losses arising from legal or policy changes published after our advice is given.

1.4 Your Responsibilities

1.4.1 As company directors, you are legally responsible for:

• Ensuring tax returns and iXBRL accounts are accurate and complete
• Submitting returns on time
• Paying tax liabilities on or before the due date

Failure to do so may result in penalties and interest.

• You cannot delegate responsibility for approving the tax return. You must review and approve the return we prepare before submission.

1.4.3 You remain responsible for any errors in submitted returns, even if you do not formally approve them.

1.4.4 To enable us to perform our work, you agree to:

• Provide finalised iXBRL accounts [prepared internally or by third parties]. You are fully responsible for the accuracy, consistency, and completeness of the tagging.
• Ensure full disclosure of all taxable income, deductions, and capital transactions
• Provide complete and accurate records and documentation
• Authorise us to liaise with third parties as necessary
• Supply all required information by reasonable time to allow timely completion of the CTSA return. Additional fees may apply for urgent work.
• Submit projected financial information no later than four weeks before each instalment payment deadline
• Disclose director/shareholder loans and repayments within three months of the relevant year-end

1.4.5 Notify us of any material changes affecting your tax position. If unsure, please seek our guidance.

1.4.6 You will receive an HMRC agent authorisation code (valid for 30 days). Please send it to us promptly so we can register as your agent.

1.4.7 Forward to us all HMRC correspondence, including statements, assessments, and letters, in a timely manner.

1.4.8 You are responsible for monitoring turnover for VAT registration purposes. If registration is required, you must instruct us in good time to ensure a timely VAT registration application. We are not responsible for penalties resulting from late registration.

1.4.9 You are responsible for PAYE, NIC, pensions, auto-enrolment, and determining employment status. If your business is not small, you must comply with the off-payroll working rules for contractors. Please consult us if you need support—we cannot assist unless formally engaged, and we are not responsible for any related penalties.

1.5 Personal Service Companies

1.5.1 We will assist you in determining whether IR35 applies to engagements undertaken by the company.

1.5.2 Where needed, we may refer you to a specialist for further advice.

PART 2 J-A – PAYROLL SERVICES
(NO OFF PAYROLL WORKING)

SCHEDULE OF SERVICES

This schedule should be read in conjunction with the engagement letter and the terms of business.

1       RESPONSIBILITIES AND SCOPE FOR PAYROLL SERVICES

• Recurring compliance work

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

1. calculating the pay as you earn (PAYE) income tax deductions, including at the Scottish and Welsh rates of income tax, if applicable;
2. calculating the employees’ national insurance contributions (NIC) deductions;
3. calculating the employer’s NIC liabilities;
4. calculating statutory payments, for example, statutory sick pay and/or statutory maternity pay;
5. calculating reclaims of statutory payments, for example, maternity payments
6. calculating employee and employer pension contributions for employees who are members of workplace pension schemes (including those who are auto-enrolled) on the basis of the information that you provide to us;
7. processing any employee and employer pension contribution refunds through the payroll on the basis of the information that you provide to us.
8. calculating other statutory and non-statutory deductions including employment allowance, apprenticeship levy; and
9. submitting information online to HM Revenue & Customs (HMRC) under Real Time Information (RTI) for PAYE.

• Ancillary payroll services

• Before the time of payment through the payroll or due date, we will prepare and send to you the following documents for delivering information to HMRC:

1. payroll summary report showing the reconciliation from gross to net for each employee and all relevant payroll totals;
2. Full Payment Submission (FPS) for taxable pay and payrolled benefits-in-kind and expenses for each employee;
3. a payslip for each employee;
4. a form P45 for each leaver;
5. a report showing your PAYE and NIC liability, student loan repayments, apprenticeship levy and due date for payment; and
6. a workplace pension contributions report showing
7. i) any 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;
8. ii) any employee pension contribution refunds payable to any employee; and

iii) any employer pension contribution refunds due to you for any employee who has ceased membership of the scheme(s).

• We will submit FPS online to HMRC after the data to be included therein has been approved/on the basis of the data provided] by you. (FPS must normally reach HMRC on or before the contractual payday, i.e, the date that employees are entitled to be paid) but we will file it for you on, or before, the actual day that monies change hands if you have made us aware of that date in order to be compliant with PAYE regulations. You must ensure the data provided to us is complete and accurate and your attention is drawn to your legal responsibilities as set out below.

• For each tax month we will prepare, if appropriate, an Employer Payment Summary (EPS) from the information and explanations that you provide to us. (Examples of EPS data include statutory payments, employment allowance, construction industry scheme deductions , apprenticeship levy allowance allocated to that PAYE scheme and apprenticeship levy payable to date and confirmation that no payments were, or will be, made to employees during that tax month or for future tax months.)

• We will submit the EPS online to HMRC after the data to be included therein has been approved/on the basis of the data provided by you. (The EPS must reach HMRC by the 19th of the month following the tax month to which it relates.) You must ensure that the data provided to us is complete and accurate and your attention is drawn to your legal responsibilities as set out below.

• At the end of the tax year we will:

1. prepare the final FPS (or EPS) and submit this to HMRC after the data to be included therein has been approved/on the basis of the data provided by you; (the due date for submitting final FPS is on or before the last actual payday of the tax year (however as made clear above we will still require to know the contractual pay day too as that is held within the FPS), failing which, the final EPS for the year must reach HMRC by 19 April following the end of the tax year;) you must ensure that the data provided to us is complete and accurate and your attention is drawn to your legal responsibilities as set out below;
2. prepare and send to you Form P60 for each employee on the payroll at the year-end so you can give them to employees by the statutory due date of 31 May following the end of the tax year;
3. prepare and send to you a statement for every employee for whom benefits-in-kind have been payrolled identifying every benefit provided to each employee during the tax year and the cash equivalent of each benefit treated as PAYE income so you can give them to employees by the statutory due date of 31 May following the end of the tax year;
4. give you details of the Class 1A NIC on payrolled benefits-in-kind which will need to be accounted for on form P11D(b) and the due date for payment;
5. give you details of the Class 1A NIC on expenses accounted for in the payroll which will need to be accounted for on form P11D(b) and the due date for payment;
6. give you the figures that need to be included on forms P11D to account for income tax in respect of expenses for which Class 1 NIC has been accounted for in the payroll.

• 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. Anything that you receive in your PAYE online account should be forwarded to us for action.

• We will submit national insurance number (NINO) verification requests as appropriate to verify or obtain a NINO for a new employee.

• Any enquiries from individual employees regarding their pay or other payroll details will be referred back to you.

• Excluded, ad hoc and advisory work

• 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. Examples of such work that you may wish to instruct us to undertake include:

1. work in connection with employee workplace pension schemes other than that detailed above including helping with setting up and administering workplace pension schemes, including referring you to appropriate specialists where necessary;
2. agreeing with you which employer-provided benefits-in-kind will be processed through the payroll and for which employees, processing through the payroll cash equivalent notional amounts on employee benefits-in-kind, notifying HMRC of in-year changes, advising you on the payment of associated Class 1A NIC, preparing and submitting return P11D(b) and notifications to employees;
3. ensuring that all employees are paid at least the national living wage / national minimum wage;
4. helping you to ascertain whether you are eligible to claim employment allowance and/or allocate employment allowance across your multiple or associated/connected companies’ PAYE schemes;
5. helping you to allocate apprenticeship levy allowances across your multiple or associated/connected companies’ PAYE schemes;
6. preparing and submitting returns P11D and P11D(b) for employee benefits-in-kind and expenses and advising on the payment of associated Class 1A NIC (such work, if undertaken, is covered in a separate schedule of services);
7. dealing with any compliance check or enquiry by HMRC or any other official compliance body into the payroll data submitted and corresponding with HMRC or other such body as necessary;
8. preparing and submitting any amended returns or data for previous tax years;
9. assisting you in the operation of the Construction Industry Scheme (CIS) for subcontractors;
10. conducting PAYE, and benefits and expenses health checks; and

1. advising on ad hoc transactions, for example, termination payments to employees.

• If specialist advice is required, we may need to seek this from, or refer you to, appropriate specialists.

• Changes in the law, in practice or in public policy

• 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, practice, public policy or in your circumstances.

• We will accept no liability for losses arising from changes in the law (or the interpretation thereof), practice or public policy that are first published after the date on which the advice is given.

• Your responsibilities

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

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

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

• Employers cannot delegate these legal responsibilities to others. You agree to check that submissions 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.

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

1. that all information required to be delivered online is submitted on the basis of full disclosure;
2. 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;
3. 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);
4. to advise us in writing of changes of payroll pay dates;
5. to notify us at least 7 working days or such other period as agreed with us before the payroll pay 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 starter checklist showing full names, address, date of birth, gender, national insurance number, start date, etc) and details of their remuneration package 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 and qualifying earnings are payable;
• names and dates of birth of all apprentices aged under 25;
• names and dates of birth of all employees aged under 21;
• all changes to remuneration packages including benefits-in-kind to be payrolled;
• employee expenses which need to be included in payroll to account for either income tax or Class 1 NIC or both;
• expenses for each employee if the expense is to be reimbursed gross through payroll as an addition to net pay;
• information necessary to enable us to calculate statutory payments, ie, statutory sick pay, statutory maternity pay, statutory adoption pay, statutory paternity pay, statutory shared parental pay, statutory parental bereavement pay;
• irregular and/or ad hoc payments and the dates to be paid; and
• all leavers, their annual salary before any salary sacrifices, how often paid, unworked notice period, contractual payment in lieu of notice (PILON), date of termination of employment, age, number of years’ service, the last payment prior to termination and when paid, and the components parts of the termination package, including statutory redundancy pay, compensation for loss of office, any bonus payable on termination and any payments made after the leaving date.

1. to confirm that you have reviewed your entitlement to the employment allowance and confirm that you wish us to make the legal declaration claim on your behalf;
2. to tell us the value of the apprenticeship levy allowance that is being allocated in the range £0 to £15,000 to each PAYE scheme – indicating payroll name and PAYE scheme reference;
3. to notify us within 7 working days of your receiving or becoming aware of any opt-out notices or any other requests to cease membership of a scheme, so that we can cease to calculate any relevant pension contributions and process any required refunds;
4. to register with HMRC in advance of the tax year, to notify which benefits-in-kind are to be payrolled for which employees (as agents, we cannot do this);
5. 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;
6. to authorise us to approach such third parties as may be appropriate, for information that we consider necessary to deal with your payroll; 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.

• If the information required to complete the payroll services set out above is received later than the dates specified above or agreed with us, we will still endeavour to process the payroll and returns to meet the filing deadlines; but we will not be liable for any costs or other losses arising if the payroll is late or the returns are filed late in these circumstances.

• 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 as may be mutually discussed on case-to-case basis.

• 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. You should also keep a note of any telephone communication you have with HMRC’s tax credits helpline or DWP’s universal credits helpline, including the date and time of the call, and the name of the helpline operator(s).

PART 2 J-B – PAYROLL SERVICES
(INCLUDES OFF PAYROLL WORKING)

SCHEDULE OF SERVICES

This schedule should be read in conjunction with the engagement letter and the terms of business.

1                 RESPONSIBILITIES AND SCOPE FOR PAYROLL SERVICES

• Recurring compliance work

1.1.1   We will prepare your UK payroll for each payroll period to meet UK employment tax

requirements, specifically:

1. calculating the pay as you earn (PAYE) income tax deductions, including at the Scottish and Welsh rates of income tax, if applicable;
2. calculating the employees’ national insurance contribution (NIC) deductions;
3. calculating the employer’s NIC liabilities;
4. calculating statutory payments, for example, statutory sick pay and/or statutory maternity pay;
5. calculating reclaims of statutory payments, for example, maternity payments;
6. calculating employee and employer pension contributions for employees who are members of workplace pension schemes (including those who are auto-enrolled) on the basis of the information that you provide to us;
7. processing any employee and employer pension contribution refunds through the payroll on the basis of the information that you provide to us;
8. calculating other statutory and non-statutory deductions including employment allowance, apprenticeship levy; and
9. submitting information online to HMRC under Real Time Information (RTI) for PAYE.

• Where you have contractors working for your company/ business through their own personal service companies, we will help you to determine whether or not your company/ business is “small” under the off-payroll working rules.

• Where you have contractors working for your company/ business through their own personal service companies and your company/ business is not “small” under the off-payroll working rules, we will help you to determine the deemed employment status of those contractors.

• Where you have contractors working for your company through their own personal service companies and your company is not “small” under the off-payroll working rules we will help you prepare employment status determination statements to give to those contractors and labour supply agencies that you have contracted with.
• If specialist advice is required, we may need to seek this from, or refer you to, appropriate specialists.

• Where a director/employee of your company is a deemed employee of a client under the IR35 off-payroll working rules, we will calculate the deemed employment payment(s) and:

1. account via payroll to HMRC for associated PAYE tax, including at the Scottish and Welsh rates of income tax if applicable, and employee and employer NIC;
2. advise on / make appropriate entries in the corporation tax computation to eliminate the deemed payments; and
3. advise on/ make appropriate entries in the director’s/ employee’s self-assessment tax return.

• To enable us to calculate the deemed employment payment(s), you agree to provide us with the following information at least 7 days prior to due date for each assignment for which a director/employee was a deemed employee of the PSC’s client:

1. fees for off-payroll work paid by the client to the company;
2. payments that would have been employment income made by the client directly to the director/employee;
3. expenses paid by the company to the director/employee that would have been deductible for tax against employment income had the director/employee been directly employed by the client;
4. capital allowances on equipment bought by the company for the deemed employment;
5. pension contributions paid by the company for the director/employee; and
6. salary and benefits paid by the company to the director/employee and PAYE tax and employee NIC, and as a separate figure employer NIC, accounted for to HMRC.

• Where the off-payroll working rules apply to work carried out by contractors for your company and your company pays the personal service companies of deemed employees, we will prepare the necessary records in your UK payroll for each payroll period to meet UK employment tax and off-payroll working requirements, specifically:

1. calculating the pay as you earn (PAYE) income tax deductions, including at the Scottish and Welsh rates of income tax, if applicable;
2. calculating the deemed employees’ NIC deductions;
3. calculating the employer’s NIC liabilities;
4. calculating other statutory and non-statutory deductions including apprenticeship levy;
5. indicating in payroll that the individual is a deemed employee by setting the off-payroll worker (OPW) marker; and
6. submitting information online to HMRC under Real Time Information (RTI) for PAYE.

• Where you are onward paying to an employee/director of the company fees received by the company where the employee/director has been treated as a deemed employee in the payroll of a third party under the off payroll working rules, we will prepare your UK payroll for each payroll period to meet UK employment tax and IR35 and off-payroll working requirements, specifically:

1. treating the employees’ pay up to the amount of net fees received under the off-payroll working rules as not subject to pay as you earn (PAYE) income tax deductions nor employee or employer national insurance contributions (we shall need evidence of what monies have already been subjected to PAYE/NIC), and
2. submitting information online to HMRC under Real Time Information (RTI) for PAYE.

• Ancillary payroll services

• Before the time of payment through the payroll or due date, we will prepare and send to you the following documents for delivering information to HMRC:

1. payroll summary report showing the reconciliation from gross to net for each employee and deemed employee if acting as an engager or fee payer under off-payroll working rules] and all relevant payroll totals;
2. a payslip for each employee, and deemed employee if acting as an engager or fee payer under off-payroll working rules;
3. a form P45 for each leaver – both actual employee and deemed employees
4. a report showing your PAYE and NIC liability, employee student loan repayments, apprenticeship levy and due date for payment; and
5. a workplace pension contributions report showing:
6. i) any employee and employer pension contributions payable in respect of each actual employee (but not deemed employee) to the respective workplace pension scheme(s) of which they are members and the due date(s) for payment;
   ii) any employee pension contribution refunds payable to any employee; and

iii) any employer pension contribution refunds due to you for any employee who has ceased membership of the scheme(s).

• We will submit FPS online to HMRC after the data to be included therein has been approved/on the basis of the data provided by you. (FPS must normally reach HMRC on or before the contractual payday, ie, the date that employees are entitled to be paid) but we will file it for you on, or before, the actual day that monies change hands if you have made us aware of that date in order to be compliant with PAYE regulations. You must ensure the data provided to us is complete and accurate and your attention is drawn to your legal responsibilities as set out below.

• For each tax month we will prepare, if appropriate, an Employer Payment Summary (EPS) from the information and explanations that you provide to us. (Examples of EPS data include statutory payments, employment allowance, construction industry scheme deductions ,apprenticeship levy allowance allocated to that PAYE scheme and apprenticeship levy payable to date and confirmation that no payments were, or will be, made to employees during that tax month or for future tax months.)

• We will submit the EPS online to HMRC after the data to be included therein has been approved/on the basis of the data provided by you. (The EPS must reach HMRC by the 19^th of the month following the tax month to which it relates.) You must ensure that the data provided to us is complete and accurate and your attention is drawn to your legal responsibilities as set out below.

• At the end of the tax year we will:

1. prepare the final FPS (or EPS) and submit this to HMRC after the data to be included therein has been approved/on the basis of the data provided by you; (the due date for submitting final FPS is on or before the last actual payday of the tax year (however as made clear above we will still require to know the contractual pay day too as that is held within the FPS), failing which, the final EPS for the year must reach HMRC by 19 April following the end of the tax year;) you must ensure that the data provided to us is complete and accurate and your attention is drawn to your legal responsibilities as set out below;
2. prepare and send to you Form P60 for each employee and deemed employee on the payroll at the year-end so you can give them to employees by the statutory due date of 31 May following the end of the tax year;
3. prepare and send to you a statement for every employee for whom benefits-in-kind have been payrolled identifying every benefit provided to each employee during the tax year and the cash equivalent of each benefit treated as PAYE income so you can give them to employees by the statutory due date of 31 May following the end of the tax year/
4. give you details of the Class 1A NIC on payrolled benefits-in-kind which will need to be accounted for on form P11D(b) and the due date for payment;
5. give you details of the Class 1A NIC on expenses accounted for in the payroll which will need to be accounted for on form P11D(b) and the due date for payment;
6. give you the figures that need to be included on forms P11D to account for income tax in respect of expenses for which Class 1 NIC has been accounted for in the payroll.

• 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 that you receive in your PAYE online account should be forwarded to us for action.

• We will submit national insurance number (NINO) verification requests as appropriate to verify or obtain a NINO for a new employee.

• Any enquiries from individual employees regarding their pay or other payroll details will be referred back to you.

• Excluded, ad hoc and advisory work

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.

Examples of such work that you may wish to instruct us to undertake include:

1. work in connection with employee workplace pension schemes other than that detailed above including helping with setting up and administering workplace pension schemes, including referring you to appropriate specialists where necessary;
2. ensuring that all employees are paid at least the national living wage/national minimum wage;
3. helping you to ascertain whether you are eligible to claim employment allowance and/or allocate employment allowance across your multiple or associated/connected companies’ PAYE schemes;
4. helping you to allocate apprenticeship levy allowance across your multiple or associated/connected companies’ PAYE schemes;
5. preparing and submitting returns P11D and P11D(b) for employee benefits-in-kind and expenses and advising on the payment of associated Class 1A NIC (such work, if undertaken, is covered in a separate schedule of services);
6. dealing with any compliance check or enquiry by HMRC or any other official compliance body into the payroll data submitted and corresponding with HMRC or other such body as necessary;
7. preparing and submitting any amended returns or data for previous tax years;
8. assisting you in the operation of the Construction Industry Scheme (CIS) for subcontractors;
9. conducting PAYE, and benefits and expenses health checks; and
10. advising on ad hoc transactions, for example, termination payments to employees.

For personal service companies, or where the client is contracting with a personal service company

1. helping you determine deemed employment status under IR35/off-payroll working rules for work undertaken for clients by the company

1. where deemed employment status under the April 2000 IR35 rules applies to work undertaken for clients by the company, calculating the deemed employment payment where deemed employment status under the April 2000 IR35 rules applies to work undertaken for clients by the company and accounting through payroll to HMRC for the tax and NIC etc;
2. where the April 2017 (extended to April 2021) off-payroll working rules apply and your personal service company (PSC) is onward paying tax- and NIC-free salary to a director or employee of up to the amount of net fees received by the PSC for client work carried out by that individual who has been treated as a deemed employee in a third party payroll under those rules, advising on and calculating statutory payments;
3. where the April 2021 off-payroll working rules apply and your company pays deemed employees’ personal service companies, accounting via payroll for tax and NIC etc on the payments;
4. where you have contractors working for you through their own personal service companies, helping you to determine whether you are “small” under the April 2021 off-payroll working rules;
5. where you have contractors working for you through their own personal service companies, and your company is not “small” under the April 2021 off-payroll working rules, helping you to determine the deemed employment status of those contractors (subject to section 1.3.2 below) and prepare employment status determination statements to give to labour supply agencies and those contractors;
6. work in connection with employee workplace pension schemes other than that detailed above including helping with setting up and administering workplace pension schemes, including referring you to appropriate specialists where necessary;
7. agreeing with you which employer-provided benefits-in-kind will be processed through the payroll and for which employees, processing through the payroll cash equivalent notional amounts on employee benefits-in-kind, notifying HMRC of in-year changes, advising you on the payment of associated Class 1A NIC, preparing and submitting return P11D(b) and notifications to employees;
8. ensuring that all employees are paid at least the national living wage / national minimum wage;
9. helping you to ascertain whether you are eligible to claim employment allowance and/or allocate employment allowance across your multiple or associated/connected companies’ PAYE schemes;
10. helping you to allocate apprenticeship levy allowance across your multiple or associated/connected companies’ PAYE schemes;
11. preparing and submitting returns P11D and P11D(b) for employee benefits-in-kind and expenses and advising on the payment of associated Class 1A NIC (such work, if undertaken, is covered in a separate schedule of services);
12. dealing with any compliance check or enquiry by HMRC or any other official compliance body into the payroll data submitted and corresponding with HMRC or other such body as necessary;
13. preparing and submitting any amended returns or data for previous tax years;
14. assisting you in the operation of the Construction Industry Scheme (CIS) for subcontractors;
15. conducting PAYE, and benefits and expenses health checks; and
16. advising on ad hoc transactions, for example, termination payments to employees.

• If specialist advice is required, we may need to seek this from, or refer you to, appropriate specialists.

• Changes in the law, in practice or in public policy

• 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, practice, public policy or in your circumstances.

• We will accept no liability for losses arising from changes in the law (or the interpretation thereof), practice or public policy that are first published after the date on which the advice is given.

• Your responsibilities

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

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

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

• Employers cannot delegate these legal responsibilities to others. You agree to check that submissions 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.

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

1. that all information required to be delivered online is submitted on the basis of full disclosure;
2. 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;
3. 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);
4. to advise us in writing of changes of payroll pay dates;
5. to notify us at least 7 working days before the payroll pay date of all transactions or events which may need to be reflected in the payroll for the period, including details of:

• all new employees and deemed employees under the off-payroll working rules (including starter checklist showing full names, address, date of birth, gender, national insurance number, and start date ) and details of their remuneration package including benefits-in-kind to be payrolled;
• for employees and deemed employees under the off-payroll working rules 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 and qualifying earnings payable;
• all changes to remuneration packages including benefits-in-kind to be payrolled;
• employee expenses which need to be included in payroll to account for either income tax or Class 1 NIC or both;
• expenses for each employee if the expense is to be reimbursed gross through payroll as an addition to net pay;
• the details of each invoice payment net of VAT that will form the earnings for each pay period;
• information necessary to enable us to calculate statutory payments, eg, statutory sick pay, statutory maternity pay, statutory adoption pay, statutory paternity pay, statutory shared parental pay, statutory parental bereavement pay;
• irregular and/or ad hoc payments and the dates to be paid; and
• all leavers, their annual salary before any salary sacrifices, how often paid, unworked notice period, contractual payment in lieu of notice (PILON), date of termination of employment, age, number of years’ service, the last payment prior to termination and when paid, and the components parts of the termination package, including statutory redundancy pay, compensation for loss of office, any bonus payable on termination, and any payments made after the leaving date.

1. to confirm that you have reviewed your entitlement to the employment allowance and confirm that you wish us to make the legal declaration claim on your behalf – indicating payroll name(s), PAYE scheme reference(s) and] industry sector;
2. to tell us the value of the apprenticeship levy allowance that is being allocated in the range £0 to £15,000 to each PAYE scheme – indicating payroll name and PAYE scheme reference.
3. to notify us within 7 working days of your receiving or becoming aware of any opt-out notices or any other requests to cease membership of a scheme, so that we can cease to calculate any relevant pension contributions and process any required refunds;
4. to register with HMRC in advance of the tax year, to notify which benefits-in-kind are to be payrolled for which employees (as agents, we cannot do this);
5. 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;
6. to authorise us to approach such third parties as may be appropriate, for information that we consider necessary to deal with your payroll; and
7. to approve:

• in-year and final FPS by at least 15 working days before contractual pay dates so that they can be submitted on or before payday, or as agreed with us;
• in-year and final EPS by at least 7 days before the 19th of the month following the tax month;
• revised year to date FPS for an earlier year within 7 days of notifying you of the data therein.

• 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.

• If the information required to complete the payroll services set out above is received later than the dates specified above or agreed with us, we will still endeavour to process the payroll and returns to meet the filing deadlines; but we will not be liable for any costs or other losses arising if the payroll is late or the returns are filed late in these circumstances.

• 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 as may be mutually decided.

• 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. You should also keep a note of any telephone communication you have with HMRC’s tax credits helpline or DWP’s universal credits helpline, including the date and time of the call and the name of the helpline operator(s).

PART 2 K – BENEFITS-IN-KIND RETURNS

SCHEDULE OF SERVICES

This schedule should be read in conjunction with the engagement letter and the terms of business.

1. RESPONSIBILITIES AND SCOPE FOR BENEFITS-IN-KIND RETURN SERVICES

• Recurring compliance work

• We will prepare/ review form P11D as may be required for each employee, including directors, based on the accounts, information and explanations provided to us on your behalf.

• We will prepare/ review form P11D(b) to include the Class 1A NIC on benefits-in-kind and expenses, both on forms P11D and included in payroll.

• We will submit the form 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 approved 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 expenses both returned in form P11D and included in payroll that you are obliged to pay HMRC by the due date and send payment instructions to you.

• Excluded, ad hoc and advisory work

• 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. Examples of such work that you may wish to instruct us to undertake include:

1. assisting you with calculating the values for tax and NIC of benefits-in-kind provided to employees, including when provided by way of salary sacrifice and other optional remuneration arrangements;
2. dealing with any compliance check or enquiry by HMRC into the benefits-in-kind returns submitted;
3. preparing any amended returns which may be required and corresponding with HMRC as necessary;
4. advising on PAYE settlement agreements and/or approved expenses scale rates; and
5. conducting PAYE and benefits and expenses health checks.

• If specialist advice is required, we may need to seek this from, or refer you to, appropriate specialists.

• Changes in the law, in practice or in public policy

• 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, practice, public policy or in your circumstances.

• We will accept no liability for losses arising from changes in the law (or the interpretation thereof), practice or public policy that are first published after the date on which the advice is given.

• Your responsibilities

• Even though you are engaging us to help you meet your end-of-year benefits-in-kind return obligations, you are legally responsible for:

1. 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 form P11D and amounts of benefits-in-kind and expenses in the payroll] are correct and complete;
2. filing any returns by the due date after the end of the tax year; and
3. making payment of Class 1A NIC on time.

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

• The approver of the return cannot delegate this legal responsibility to others. The approver agrees 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.

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

1. that all returns are to be made on the basis of full disclosure;
2. 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;
3. to notify us within 15 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;
4. 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
5. to approve the returns 30^th June so they can be submitted on or before the filing deadline of 6 July after the end of the tax year.

If we do not hear from you by the above deadline, subject to any other agreement between us, we will take your silence as your approval for us to submit the returns.

• If the information required to complete the benefits-in-kind returns set out above is received later than 30^th June after the end of the tax year, we will still endeavour to process the information onto the BiK returns to meet the submission date but we will not be liable for any costs or other losses arising if submission is late.
• 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.

PART 2 L-GB –GREAT BRITAIN VAT RETURNS (MAKING TAX DIGITAL (MTD) FOR VAT)

SCHEDULE OF SERVICES

This schedule should be read in conjunction with the engagement letter and the terms of business.

1          RESPONSIBILITIES AND SCOPE FOR VAT RETURN SERVICES

• Initial registration

• We will sign you up for MTD for VAT. By instructing us to sign up on your behalf you are agreeing to HMRC’s terms of use. This may result in changes that may include changes to deadlines. You will complete HMRC’s sign up process to enable submission of your VAT return.

• 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 relevant official 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.

• Recurring compliance work

• We will prepare your MTD for VAT returns on a monthly/ quarterly/ annual (as mentioned in Engagement Letter) basis.
• We will keep all accounting records to meet the digital record keeping requirements of MTD for VAT. You must ensure that the data provided to us is complete and accurate.

Or

• We will check the digital accounting records which you keep to meet the requirements of MTD for VAT and which you provide to us for preparation of the MTD for VAT returns. You may be required to provide us with your data digitally and we will tell you if/ when that is the case. If your software is incompatible with ours we will agree with you an appropriate solution which might include the use of alternative third party functionally compatible software and/or a spreadsheet(s) which satisfy the statutory requirement for digital linkage. Where your digital records are incompatible with our software, we may require an additional fee. You must also provide us with confirmation that your digital records are complete and accurate.

• Based on the information you provide to us, we will tell you how much VAT you should pay and when. Where appropriate, we will initiate repayment claims if tax has been overpaid. We will advise on the interest and penalty implications if UK VAT is paid late.
• Where appropriate, we will include import VAT from any digital import certificates (postponed VAT accounting) and/or C79s we receive from you.

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

• Where appropriate, we will calculate the annual Capital Goods Scheme adjustment.
• We are not responsible for considering or applying for any of the exemptions from MTD for VAT. However, if you feel that you are eligible for exemption, please let us know. We are happy to discuss this and may correspond with HMRC on your behalf if needed, or we can guide you on whom you should contact for this. This may be subject to an additional fee.

• We will advise you of any relaxations applicable in relation to the digital records of supplies made and received.

• We will submit the MTD for VAT return data online to HMRC after the data to be included therein has been approved by you.

• We will agree with you any supplementary information to be submitted on a voluntary basis with the MTD for VAT returns prior to submission.

• Where you are invoice (accruals) accounting for income tax, we will perform an annual reconciliation of VAT outputs to turnover.

• Ad hoc queries by way of telephone and email enquiries are not routine compliance and may result in additional fees. As indicated below, where appropriate we will aim to discuss and agree additional fees but it may not always be possible to agree these in advance and we reserve the right to charge you an additional fee for these queries.

• Ad hoc and advisory services

• 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. Examples of such work that you may wish to instruct us to undertake include:

1. reconciling VAT outputs with turnover
2. advising on ad hoc transactions
3. reviewing and advising on a suitable partial exemption method to use in preparing the return;
4. dealing with all communications relating to your VAT returns addressed to us by HMRC or passed to us by you;
5. processing import and export declarations including deferred import entries that require postponed VAT accounting (at present we assume that these are handled by you or your customs agent);
6. making recommendations to you about the use of cash accounting, annual accounting, flat-rate and other suitable methods of accounting for VAT;
7. making recommendations to you about the use of the VAT One Stop Shop (OSS) Union and/or non-Union schemes and/or the VAT Import One Stop Shop (IOSS) if you supply services or goods to consumers in the EU;
8. advising on the VAT liability of supplies of goods or services to consumers outside Great Britain;
9. work required to rectify the position where your software is incompatible with our software; and
10. reviewing your record keeping processes and providing advice on potential improvements to enable compliance with the MTD for VAT requirements, including digital links for the transfer of data between different software.

Where the advice is provided in writing, the information that you have provided to us and the query raised will be set out with our response to you.

• If specialist advice is required, we may need to seek this from, or refer you to, appropriate specialists.

• Changes in the law, in practice or in public policy

• 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, practice or public policy or in your circumstances.

• We will accept no liability for losses arising from changes in the law (or the interpretation thereof), practice or public policy that are first published after the date on which the advice is given.

• Your responsibilities

• You are legally responsible for:

1. ensuring that your returns are correct and complete and in an appropriate digital format and capture the appropriate level of data;
2. ensuring your record keeping is compliant with the new requirements for the digital recording and transfer of data
3. filing any returns by the due date; and
4. paying VAT on time.

Failure to do any of these may lead to penalties, surcharges and/or interest.

• 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.

• 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.

• Where we are keeping your digital accounts records, you are responsible for providing us with the following information required for us to prepare the records:

• Access to your accounting records
• Sale invoices
• Purchase invoices
• Bank statements
• Details of bank and cash payments
• Details of bank and cash receipts
• Stock and work-in-progress details

We have also agreed that you will provide the following:

• A record of the amounts owed to the business
• A record of amounts owed by the business
• A list of accruals
• A list of prepayments
• Private use adjustments
  • To enable us to carry out our work, you agree:

1. that all returns are to be made on the basis of full disclosure;
2. that you are responsible for ensuring that the information provided is, to the best of your knowledge, accurate and complete and that all digital links are in the manner prescribed; the returns are prepared/ reviewed] solely on the basis of the information provided by you and we accept no responsibility for any liabilities arising due to inaccuracies, omissions or breakdowns in digital links concerning the information that you provide which may lead to a misdeclaration on which penalties and interest may arise;
3. to authorise us to approach such third parties, as may be appropriate, for information we consider necessary to deal with the returns;
4. to provide us with all the records relevant to the preparation of your monthly/ quarterly/ annual returns as soon as possible after the return period ends; we would ordinarily need a minimum of 7 days before submission to complete our work. If the records are provided later or are incomplete or unclear, thereby delaying the preparation/ review and submission of the return, we accept no responsibility for any ‘default surcharge’ penalty that may arise; and
5. to inform us that you have made the tax payment based on your calculated return.

• 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 tell us so that we can assess its significance.

• You will forward to us HMRC statements of account, copies of notices of assessment, letters and other communications received from HMRC, in sufficient time to enable us to deal with them as may be necessary within the statutory time limits. Although HMRC has the authority to communicate with us when form 64-8 or online authorisation has been submitted, it is essential that you let us have copies of any correspondence received, because HMRC is not obliged to send us copies of all communications issued to you and, in most cases, will not do so.

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

• 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 you 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.

PART 2 M – TAX INVESTIGATIONS

SCHEDULE OF SERVICES

This schedule should be read in conjunction with the engagement letter and the terms of business.

1. RESPONSIBILITIES AND SCOPE FOR TAX INVESTIGATION SERVICES

• Investigation by HMRC.

• We will act on your behalf in the matter of the current investigation by HMRC.

• Where required, we will prepare a report on your behalf giving full disclosure of your tax affairs and, once agreed by you, submit it to HMRC.

• We will negotiate with HMRC on any question of taxation, interest and penalties. The outcome of some income tax enquiries may be related to, or impact on, claims to tax credits and universal credit.

• We must make it clear that if, at any time, we consider that:

1. you are not cooperating with us and/or answering our enquiries fully and frankly; or
2. you are unwilling to make full disclosure or you refuse to do so;

we will immediately cease to act and inform HMRC of that fact (albeit not the reasons for ceasing to act). In that event, any fees you have already paid will not be reimbursed and you will remain liable for any unbilled costs.

• If specialist advice is required in connection with the investigation, we may need to seek this from, or refer you to, appropriate specialists.

• Your responsibilities

• To enable us to carry out our work in relation to the investigation you agree:

1. that all information to be given to HMRC in the course of the investigation is to be made on the basis of full disclosure of all sources of income, charges, allowances and capital transactions;
2. to provide full information necessary for dealing with the investigation;
3. to authorise us to communicate with such third parties as may be appropriate, and that we consider necessary to deal with the investigation;
4. to provide information promptly to enable us to deal with the investigation expeditiously and to act in your interests in order to qualify for such reduction as may be appropriate for the cause of the error and the level of disclosure if there are tax liabilities or penalties for earlier years;
5. to forward to us immediately on receipt, copies of all HMRC correspondence, statements of account, PAYE coding notices, notices of assessment, letters and other communications received from HMRC as may be relevant to the investigation to enable us to deal with them as may be necessary; although HMRC have 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 all communications issued to you, and, in most cases, will not do so;
6. to keep us informed about significant changes in your circumstances if they are likely to affect the outcome of the investigation; if you are unsure whether the change is material, please let us know so that we can assess its significance or otherwise; and
7. to notify us immediately of any insurance cover you have for enquiries by HMRC into your tax returns.

PART 2 N – UNPROMPTED TAXATION DISCLOSURES

SCHEDULE OF SERVICES

This schedule should be read in conjunction with the engagement letter and the terms of business.

1. Responsibilities and scope for unprompted tax disclosures
   • Specified Matter:

• We will provide taxation advice to you in respect of a voluntary disclosure to HMRC.

• Where required, we will prepare a report on your behalf giving full disclosure of your UK taxation affairs and, once it is agreed by you, submit it to HMRC on your behalf. We may also use HMRC’s online Digital Disclosure Service to:

1. register you for an appropriate disclosure facility after you agree to that approach; and
2. submit information to HMRC relating to your disclosure, once it is agreed by you.

• We will negotiate with HMRC on any issue relating to taxation, interest and penalties with the aim of settling your United Kingdom taxation affairs.
• We must make it clear that if at any time we consider that:

1. you are not cooperating with us and answering our enquiries fully and frankly; or
2. you do not fulfil your responsibilities as per 1.2 below; or
3. you are unwilling to make full disclosure or you refuse to do so;

then we will immediately cease to act and inform HMRC of that fact (albeit not the reasons for ceasing to act). In that event, any fees you have already paid will not be reimbursed and you will remain liable for any unbilled costs.

• As part of the disclosure, either we (on your behalf) or HMRC may propose alternative dispute resolution to resolve matters. In such cases, we will negotiate on your behalf as part of this process. However, if the mediation is not successful and the case continues, the terms set out in this engagement letter will continue to apply to all work carried out on your behalf following the mediation.

• We will, if instructed by you on a case-by-case basis:

1. make appeals to HMRC against assessments and/or determinations of taxation and/or penalties issued by HMRC during the course of our work. These appeals may include requests for the collection of the amount assessed/determined to be postponed pending full resolution of the enquiry/investigation. We cannot guarantee that HMRC will accept the appeal and/or postponement application;
2. request HMRC undertake an internal review of their decision(s) and make representations to the review officer;
3. make representations to HMRC on your behalf if HMRC indicates it intends to publish your details (eg as a deliberate defaulter).

• Where specialist advice is required in connection with the voluntary disclosure, we may need to seek this from or refer you to appropriate specialists and/or tax counsel. We will only do this when instructed by you.

• Where you request us to advise on ancillary matters connected with the disclosure to HMRC, we will confirm your instruction in this regard in writing and, if appropriate, issue to you a separate engagement letter to cover these ancillary matters. Where it is not appropriate to issue a separate engagement letter, we will carry out this additional advice under the terms of this engagement letter (although we reserve the right to charge an additional fee).

• Your responsibilities

• To enable us to carry out our work in relation to the voluntary disclosure you agree:

1. that all information and documentation to be given to HMRC in the course of the voluntary disclosure is to be made on the basis of full disclosure of all sources of income, charges, allowances and capital transactions;
2. to provide full information necessary for dealing with the voluntary disclosure;
3. to authorise us to communicate with such third parties as may be appropriate and that we consider necessary to deal with the voluntary disclosure;
4. to provide information promptly to enable us to deal with the voluntary disclosure expeditiously and to act in your interests in order to qualify for such reduction as may be appropriate for the cause of the error and the level of disclosure if there are tax liabilities or penalties for earlier years;
5. to forward to us immediately on receipt copies of all HMRC correspondence, statements of account, PAYE coding notices, notices of assessment, letters and other communications received from HMRC as may be relevant to the voluntary disclosure to enable us to deal with them as may be necessary.. It is essential that you let us have copies of any correspondence received because HMRC is not obliged to send us copies of all communications issued to you and, in most cases, will not do so.
6. to keep us informed about significant changes in your circumstances if they are likely to affect the outcome of the voluntary disclosure. If you are unsure whether the change is material or not, please let us know so that we can assess its significance or otherwise;
7. to notify us immediately of any insurance cover you have for this voluntary disclosure including any queries raised by HMRC following its submission.
8. To the extent that our advice covers non-UK tax aspects, you must confirm this with an appropriately qualified professional adviser in the relevant territory before any irrevocable action is taken. We would be pleased to liaise with them as appropriate.

PART 2 P – TAX CREDITS

SCHEDULE OF SERVICES

This schedule should be read in conjunction with the engagement letter and the terms of business.

1. RESPONSIBILITIES AND SCOPE FOR TAX CREDIT SERVICES

• Recurring compliance work

• We will prepare your tax credits annual declaration (TC603D) (and, on request, a tax credits claim form (TC600)) from the information and explanations that you give us. After obtaining your approval and signature, we will submit the completed forms to HMRC.

• We will check your tax credit award notices (TC602) and annual review (TC603R) using the information you have given us. We will point out any errors or omissions on these documents and agree what action should be taken to inform HMRC.

• We will inform HMRC on your behalf of any changes in circumstances affecting your tax credit award which you notify to us. Notification is generally mandatory and must be done within 30 days of the change. The changes which must be notified are listed at https://www.gov.uk/changes-affect-tax-credits.

• When your tax credit claim ends, we will help you prepare the forms and other paperwork which is expected by HMRC from the information and explanations you give us. After obtaining your approval and signature, we will submit the completed forms to HMRC.

• Excluded, ad hoc and advisory work

• We will not provide the following services under this engagement but, if you have instructed us to do so, we will provide such other tax credits, 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. If appropriate, we will discuss and agree an additional fee for such work when it is commissioned by you. Examples of such work that we will not undertake unless you instruct us include:

1. advising you on your eligibility for working tax credit and/or child tax credit based on the information you give us about your household circumstances;
2. advising you of any possible claims or reliefs or other planning measures that may have a bearing on your tax credits entitlement including, but not limited to, gift aid, pension contributions, and trading loss reliefs;
3. explaining to you what you must report to HMRC, including the time limits for doing so, and what it would be in your interests to report to HMRC (but not obligatory for you to do);
4. assisting you with any tax credit examinations or enquiries raised by HMRC, or with any other communications with HMRC regarding your entitlement;
5. advising you on the implications that any changes to your tax credit award might have for other aspects of your tax affairs;
6. advising you on, and helping you claim, universal credit or other social security benefits; and

• Changes in the law, in practice or in public policy

• 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, practice, public policy or in your circumstances.

• We will accept no liability for losses arising from changes in the law (or the interpretation thereof), practice or public policy that are first published after the date on which the advice is given.

• Your responsibilities

• You are legally responsible for:

1. ensuring that that all documents and information submitted to HMRC are correct, complete and on time; and
2. ensuring that HMRC are informed promptly of any changes in your income or circumstances, and of any errors or omissions in any document sent to you by HMRC.

Failure to do any of the above may lead to or exacerbate an overpayment and may, in certain cases, give rise to penalties, and/or interest.

• Taxpayers who sign their claims, renewal or other forms cannot delegate this legal responsibility to others. You agree to check that documents that we have prepared for you are correct and complete before you approve and sign 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.

• Responsibilities in relation to joint tax credit claims are set out below under ‘You and your spouse/ partner’ if applicable.

• You will be responsible for informing HMRC of any changes in circumstances. Notification is generally mandatory and must be done within 30 days of the change. The changes which must be notified are listed at https://www.gov.uk/changes-affect-tax-credits (paper copy available on request).

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

1. that all claims, renewals and other reports are to be made on the basis of full disclosure of your income and circumstances;
2. 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;
3. to authorise us to approach such third parties as may be appropriate, for information that we consider necessary to deal with your affairs;
4. to provide us with information in sufficient time for your renewal forms to be completed and submitted by the due date following the end of the tax year; to do this, we need to receive all relevant information at least 15 days prior to the due date; and

• You will keep us informed of material changes in your circumstances that could affect your tax credit entitlement. If you are unsure whether the change is material, please let us know so that we can assess its significance. In particular, it is recommended that a record of working hours is maintained.

• You will forward to us HMRC notices, statements of account, letters and other 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. You should also keep a note of any telephone communication you have with HMRC’s tax credits helpline and provide us with details, including the date and time of the call, and the name of the helpline operator(s).

PART 2 R – CLOUD-BASED SERVICES

SCHEDULE OF SERVICES

This schedule should be read in conjunction with the engagement letter and the terms of business.

1. IT SECURITY REQUIREMENTS
   • Your responsibilities 
     • To support the delivery of cloud-based services, it is important to ensure that appropriate IT security measures are in place.

• You are responsible for:

1. providing us with a list of approved users;
2. ensuring that all usernames, passwords and any additional authentication measures required for access are kept secure and not shared with unauthorised individuals;
3. ensuring that you have appropriate security measures in place to prevent and/or detect viruses, trojans, malware or any other malicious code;
4. any internet link (eg through your internet service provider) to permit you to connect to the service; and
5. compliance with the service providers terms, if applicable.

• If any of your staff authorised for access leave or are no longer authorised, you must remove access using your administrative console. You must give us sufficient notice to be able to make the change on your behalf if you are not able to do this directly.

• Our responsibilities 
  • We are responsible for:

1. ensuring only our authorised staff are provided appropriate levels of access to your cloud-based systems;;
2. ensuring that all usernames, passwords and any additional authentication measures required for access are kept secure and not shared with unauthorised individuals;
3. having appropriate security measures in place to prevent and/or detect viruses, trojans, malware or any other malicious code; and
4. compliance with the service providers terms, if applicable.

2. CLOUD-BASED ACCOUNTING SOFTWARE

• • Provider

• The accounting software that will be hosted in the cloud is Zoho Books. This software and the associated hosting will be supplied by Zoho. 
• The contact details for this provider are:

• Suite 1.09, Challenge House, Sherwood Dr, Bletchley, Milton Keynes MK3 6DP, United Kingdom
• 0044 8000 856 099
• uk@eu.zohobooks.com 
  • The servers used by the supplier are based in Europe, specifically in Amsterdam (Netherlands) and Dublin (Ireland). However, the provider has servers located in multiple data centres around the world.

• If you wish to stop this service, cancellation takes effect immediately. However, you will only receive a full refund if you cancel within 5 days of renewal for a monthly plan, or within 15 days of renewal for an annual plan. After cancellation, your Zoho Books account will enter read-only mode and may be permanently deactivated if not accessed for 120 days. Please note that these are the supplier’s current terms and are subject to change.

• Our responsibilities

• We will send you an invoice per our agreed payment schedule for the services provided.
• When you stop the service, giving notice as per ‎1.4 above we will work with the supplier to obtain a backup of your data as at the end of the notice period.
• We are not responsible for any failure to deliver the service due to errors in transmission, internet outages, supplier infrastructure issues or any other failure that results in unavailability of the service. We are also not liable for any loss or corruption of data if you have breached the supplier’s terms.

• Excluded work 
  • 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 other ad hoc 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. Examples of such work that you may wish to instruct us to undertake include:

1. assisting you in the selection of specific accounting software relevant to your needs;
2. review of existing software for suitability to your business needs;
3. training for your staff in the use of the accounting software.

• Your responsibilities

• You shall pay the associated fee each month when it is due. If you do not make payment, then we will issue a written warning. 30 days after the warning we will stop the service until fees due have been paid or an alternative arrangement has been made.

• You are responsible for the maintenance of your accounting records.

• You will enter into a Terms of Use and Service Level Agreement with Zoho. You are responsible for ensuring that the terms are suitable for your requirements. Should you wish to discuss anything in these agreements please contact us prior to entering into the agreement.

PART 4 – TERMS OF BUSINESS

The following terms of business apply to all engagements accepted by Elmers Green Accountancy Services Ltd. All work is carried out under these terms except where changes are expressly agreed in writing.

1. Applicable law

• Our engagement letter, the schedules of services and our standard terms and conditions of business are governed by and should be construed in accordance with, English law. Each party agrees that 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 on any basis. Each party irrevocably waives any right 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.

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

2. Client identification

• As with other professional services firms, we are required to identify our clients for the purposes of the UK anti-money laundering legislation. We may request from you, and retain, such information and documentation as we require for these purposes and/or make searches of appropriate databases. If we are not able to obtain satisfactory evidence of your identity, we will not be able to proceed with the engagement.
• If you undertake business that requires you to be supervised by an appropriate supervisory authority to follow anti-money laundering regulations including if you accept or make a high value cash payments of €10,000 or more (or equivalent in any currency) in exchange for goods you should inform us.

• Any personal data received from you to comply with our obligations under The Money Laundering, Terrorist Financing and Transfer for Funds (Information on the Payer) Regulations 2017 (MLR 2017) will be processed only for the purposes of preventing money laundering or terrorist financing. No other use will be made of this personal data unless use of the data is permitted by or under enactment other than the MLR 2017, or we have obtained the consent of the data subject to the proposed use of the data.

3. Clients’ money
   • 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 ICAEW’s Clients’ Money Regulations.

• All client monies will be held in an interest-bearing account. To avoid excessive administration, interest will only be paid to you if the amount earned on the balances held on your behalf in any calendar year exceeds £25.00. If the total sum of money held on your behalf is enough to give rise to a significant amount of interest or is likely to do so, we will put the money in a designated interest-bearing client bank account and pay the interest to you. Subject to any tax legislation, interest will be paid gross.

• We will promptly return monies held on your behalf as soon as there is no longer any reason to retain those funds. If any funds remain in our client account that are unclaimed, and the client to which they relate has remained untraced for five years, or we as a firm cease to practise, we may pay those monies to a registered charity.

4. Commissions or other benefits

4.1       In some circumstances we may receive commissions or other benefits for introductions to other professionals or in respect of transactions which we arrange for you.

• If we receive any commissions or other benefits in connection with our work for you, these will be in addition to the fees you pay us. The fees you would otherwise pay will not be reduced by the amount of any such commissions or benefits. You agree that we may retain any such commissions or benefits without being required to account to you for them.

5. Confidentiality

• Unless we are authorised by you to disclose information on your behalf, we confirm that if you give us confidential information we will, at all times during and after this engagement, keep it confidential, except as required by law or as provided for in regulatory, ethical or other professional pronouncements applicable to us or our engagement.

• You agree that, if we act for other clients who are or who become your competitors, to comply with our duty of confidentiality it will be sufficient for us to take such steps as we think appropriate to preserve the confidentiality of information given to us by you, both during and after this engagement. These may include taking the same or similar steps as we take in respect of the confidentiality of our own information.

• In addition, if we act for other clients whose interests are or may be adverse to yours, we will manage the conflict by implementing additional safeguards to preserve confidentiality. Safeguards may include measures such as separate teams, physical separation of teams, and separate arrangements for storage of, and access to, information.

• You agree that the effective implementation of such steps or safeguards as described above will provide adequate measures to avoid any real risk of confidentiality being impaired.

• We may, on occasion, subcontract work on your affairs to other tax or accounting professionals. The subcontractors will be bound by our client confidentiality terms.

• We will inform you of the proposed use of a subcontractor before they commence work, except where your data will not be transferred out of our systems and the subcontractor is bound by confidentiality terms equivalent to an employee.

6. Conflicts of interest

• We will inform you if we become aware of any conflict of interest in our relationship with you or in our relationship with you and another client, unless we are unable to do so because of our confidentiality obligations. We have safeguards that can be implemented to protect the interests of different clients if a conflict arises. If conflicts are identified which cannot be managed in a way that protects your interests, we regret that we will be unable to provide further services.

• If there is a conflict of interest that is capable of being addressed successfully by the adoption of suitable safeguards to protect your interests, we will adopt those safeguards. In resolving the conflict, we would be guided by ICAEW’s Code of Ethics, which can be viewed at com/en/membership/regulations-standards-and-guidance/ethics. During and after our engagement, you agree that we reserve the right to act for other clients whose interests are or may compete with, or be adverse to, yours subject, of course, to our obligations of confidentiality and the safeguards set out in the paragraph on confidentiality above.

1. Data Protection DATA CONTROLLER

• In this clause, the following definitions shall apply:

‘client personal data’ means any personal data provided to us by you, or on your behalf, for the purpose of providing our services to you, pursuant to our engagement letter with you;

‘data protection legislation’ means all applicable privacy and data protection legislation and regulations including PECR, the UK GDPR and any other applicable national laws, regulations and secondary legislation in the UK relating to the processing of personal data and the privacy of electronic communications, as amended, replaced or updated from time to time;

‘controller’, ‘data subject’, ‘personal data’, and ‘process’ shall have the meanings given to them in the data protection legislation;

‘UK GDPR’ means the Data Protection Act 2018 as amended by the Data Protection, Privacy and Electronic Communications (Amendments etc) (EU Exit) Regulations 2020; and

‘PECR’ means the Privacy and Electronic Communications (EC Directive) Regulations 2003 (SI 2426/2003) as amended by the Data Protection, Privacy and Electronic Communications (Amendments etc) (EU Exit) Regulations 2020.

• We shall each be considered an independent data controller in relation to the client personal data. Each of us will comply with all requirements and obligations applicable to us under the data protection legislation in respect of the client personal data.

• You shall only disclose client personal data to us where:

1. you have provided the necessary information to the relevant data subjects regarding its use

1. you have a lawful basis upon which to do so, which, in the absence of any other lawful basis, shall be with the relevant data subject’s consent; and
2. you have complied with the necessary requirements under the data protection legislation to enable you to do so.

• Should you require any further details regarding our treatment of personal data, please contact our Data Protection Officer

• We shall only process the client personal data:

1. in order to provide our services to you and perform any other obligations in accordance with our engagement with you;

1. in order to comply with our legal or regulatory obligations; and

1. where it is necessary for the purposes of our legitimate interests and those interests are not overridden by the data subjects’ own privacy rights. Our privacy notice available at www.elmersgreen.co.uk contains further details as to how we may process client personal data.

• We may disclose the client personal data to other third parties in the context of a possible sale, merger, restructuring or financing of or investment in our business. In this event we will take appropriate measures to ensure that the security of the client personal data continues to be ensured in accordance with data protection legislation. If a change happens to our business, then the new owners may use our client personal data in the same way as set out in these terms

• We shall maintain commercially reasonable and appropriate security measures, including administrative, physical and technical safeguards, to protect against unauthorised or unlawful processing of the client personal data and against accidental loss or destruction of, or damage to, the client personal data.

• In respect of the client personal data, provided that we are legally permitted to do so, we shall promptly notify you in the event that:

1. a) we receive a request, from or on behalf of a relevant data subject, to exercise their data subject rights under the data protection legislation or a complaint or any adverse correspondence in respect of our processing of their personal data;
2. b) we are served with an information, enforcement or assessment notice (or any similar notices), or receive any other material communication in respect of our processing of the client personal data from the Information Commissioner’s Office or any other supervisory authority); or
3. c) we reasonably believe that there has been any incident which resulted in the accidental or unauthorised access to, or destruction, loss, unauthorised disclosure or alteration of, the client personal data.

• Upon the reasonable request of the other, we shall each co-operate with the other and take such reasonable commercial steps or provide such information as is necessary to enable each of us to comply with the data protection legislation in respect of the services provided to you in accordance with our engagement letter with you in relation to those services.

2. Disengagement

• If we resign, or are asked to resign, we will normally issue a disengagement letter to ensure that our respective responsibilities are clear.

3. Electronic and other communication

• Unless you instruct us otherwise, we may, if appropriate, communicate with you and with third parties by email or other electronic means. The recipient is responsible for virus checking emails and any attachments.

• With electronic communication, there is a risk of non-receipt, delayed receipt, inadvertent misdirection or interception by third parties. We use virus-scanning software to reduce the risk of viruses and similar damaging items being transmitted in emails or by electronic storage devices. Nevertheless, electronic communication is not totally secure and we cannot be held responsible for damage or loss caused by viruses or for communications which are corrupted or altered after despatch. Nor can we accept any liability for problems or accidental errors relating to this means of communication, especially in relation to commercially sensitive material. These are risks you must bear in return for greater efficiency and lower costs. If you do not wish to accept these risks, please let us know and we will communicate by paper mail, other than when electronic submission is mandatory.

• Any communication by us with you sent through the postal system is deemed to arrive at your postal address two working days after the day the document was sent.

4. Intellectual property rights and use of our name

• You are not permitted to use our name in any statement or document you may issue unless our prior written consent has been obtained. The only exception to this restriction would be statements or documents that, in accordance with applicable law, are to be made public.

5. Interpretation

• If any provision of our engagement letter or terms of business is held to be void, that provision will be deemed not to form part of this contract. In the event of any conflict between these terms of business and the engagement letter or appendices, the relevant provision in the engagement letter or schedules will take precedence.

6. Internal disputes within a client

• If we become aware of a dispute between the parties who own the business or who are in some way involved in its ownership and management, it should be noted that our client is the business and we would not provide information or services to one party without the express knowledge and permission of all parties. Unless otherwise agreed by all parties, we will continue to supply information to the registered office for the attention of the directors/ partners/ trustees. If conflicting advice, information or instructions are received from different directors/ partners/ trustees in the business, we will refer the matter back to the board of directors/ the partnership and take no further action until the board/ partnership has agreed the action to be taken.

7. Lien

• Insofar as we are permitted to so by law or by professional guidelines, we reserve the right to exercise a lien over all funds, documents and records in our possession relating to all engagements for you until all outstanding fees and disbursements are paid in full.

8. Limitation of third party rights
   • The advice and information we provide to you as part of our service is for your sole use, and not for any third party to whom you may communicate it, unless we have expressly agreed in the engagement letter that a specified third party may rely on our work. We accept no responsibility to third parties, including any group company to whom the engagement letter is not addressed, for any advice, information or material produced as part of our work for you which you make available to them. A party to this agreement is the only person who has the right to enforce any of its terms, and no rights or benefits are conferred on any third party under the Contracts (Rights of Third Parties) Act 1999.

9. Period of engagement and termination

• Unless otherwise agreed in our engagement letter, our work will begin when we receive implicit or explicit acceptance of that letter. Except as stated in that letter, we will not be responsible for periods before that date.

• Each of us may terminate our agreement by giving not less than 21 days’ notice in writing to the other party except if you fail to cooperate with us or we have reason to believe that you have provided us or HMRC with misleading information, in which case we may terminate this agreement immediately. Termination will be without prejudice to any rights that may have accrued to either of us before termination.

• We reserve the right to terminate the engagement between us with immediate effect in the event of: your insolvency, bankruptcy or other arrangement being reached with creditors; an independence issue or change in the law which means we can no longer act; failure to pay our fees by the due dates; or either party being in breach of their obligations if this is not corrected within 30 days of being asked to do so.

• In the event of termination of our contract, we will endeavour to agree with you the arrangements for the completion of work in progress at that time, unless we are required for legal or regulatory reasons to cease work immediately. In that event, we will not be required to carry out further work and shall not be responsible or liable for any consequences arising from termination.

10. Professional rules and statutory obligations

• We will observe and act in accordance with the Bye-laws, regulations and Code of Ethics of ICAEW including Professional Conduct in Relation to Taxation, and will accept instructions to act for you on this basis. In particular, you give us the authority to correct errors made by HMRC if we become aware of them. We will not be liable for any loss, damage or cost arising from our compliance with statutory or regulatory obligations. You can see copies of these requirements in our offices. The requirements are also available online at com/en/membership/regulations-standards-and-guidance.

11. Quality control

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

• When dealing with HMRC on your behalf we are required to be honest and to take reasonable care to ensure that your returns are correct. To enable us to do this, you are required to be honest with us and to provide us with all necessary information in a timely manner. For more information about ‘Your Charter’ for your dealings with HMRC, visit https://www.gov.uk/government/publications/hmrc-charter. To the best of our abilities, we will ensure that HMRC meet their side of the Charter in their dealings with you.

12. Reliance on advice

• We will endeavour to record all advice on important matters in writing. Advice given orally is not intended to be relied upon unless confirmed in writing. Therefore, if we provide oral advice (for example, during the course of a meeting or a telephone conversation) and you wish to be able to rely on that advice, you must ask for the advice to be confirmed by us in writing. Advice is valid as at the date it was given.

13. Retention of papers

• You have a legal responsibility to retain documents and records relevant to your financial affairs. During the course of our work we may collect information from you and others relevant to your tax and financial affairs. We will return any original documents to you, if requested. Documents and records relevant to your tax affairs are required by law to be retained as follows:

Individuals, trustees and partnerships:

1. with trading or rental income: five years and 10 months after the end of the tax year
2. otherwise: 22 months after the end of the tax year.

Companies, Limited Liability Partnerships, and other corporate entities:

1. six years from the end of the accounting period.

• Although certain documents may legally belong to you, we may destroy correspondence and other papers that we store electronically or otherwise 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.

14. The Provision of Services Regulations 2009

• Our professional indemnity insurer is Tokio Marine. The territorial coverage is UK.

15. Timing of our services

• If you provide us with all information and explanations on a timely basis in accordance with our requirements, we will plan to undertake the work within a reasonable period of time to meet any regulatory deadlines. However, failure to complete our services before any such regulatory deadline would not, of itself, mean that we are liable for any penalty or additional costs arising.

PART 5 – PRIVACY NOTICE

PRIVACY NOTICE

1.      ABOUT US AND THE PURPOSE OF THIS NOTICE

Elmers Green Accountancy Services Ltd (“Elmers Green”, “we”, “us”, “our” and “ours”) is an accountancy and tax advisory firm. We are registered in England and Wales as a company under number: 13958301 and our registered office is at 520 Birchwood Boulevard, Birchwood, Warrington, England, WA3 7QX.

This notice will tell you how we look after your personal data, about your privacy rights, and about our compliance with and your protections under Data Protection Legislation.

In this notice “Data Protection Legislation” means any applicable law relating to the processing, privacy, and use of Personal Data, including the Data Protection Act 2018 and the Privacy and Electronic Communications (EC Directive) Regulations 2003, as amended by The Data Protection, Privacy and Electronic Communications (Amendments etc) (EU Exit) Regulations 2020.

For the purpose of the Data Protection Legislation and this notice, we are the ‘data controller’. This means that we are responsible for deciding how we hold and use personal data about you. We are required under the Data Protection Legislation to notify you of the information contained in this privacy notice.

We have appointed a Data Protection Officer. Our Data Protection Officer is our Data Protection Point of Contact and is responsible for assisting with enquiries in relation to this privacy notice or our treatment of your personal data. Should you wish to contact our Data Protection Point of Contact you can do so using the contact details noted at paragraph ‎11(Contact Us), below.

2.      THE KIND OF INFORMATION WE HOLD ABOUT YOU

The information we hold about you may include the following:

• Your personal details (such as your name and/or address);
• Details of contact we have had with you in relation to the provision, or the proposed provision, of our services;
• Details of any services you have received from us;
• Our correspondence and communications with you;
• Information about any complaints and enquiries you make to us;
• Information from research, surveys, and marketing activities
• Tax Identification Numbers related to the services delivered

3.      HOW WE MAY COLLECT YOUR PERSONAL DATA

We obtain your personal data directly from you when:

• you request a proposal from us in respect of the services we provide;
• you engage us to provide our services and also during the provision of those services;
• you contact us by email, telephone, post or social media;

We may also obtain your personal data indirectly:

• from our client when it engages us to provide services and also during the provision of those services
• from third parties and/or publicly available resources (for example, from your employer or from Companies House.

4.      HOW WE USE PERSONAL DATA WE HOLD ABOUT YOU

We may process your personal data for purposes necessary for the performance of our contract with our clients and to comply with our legal obligations. This may include processing your personal data where you are an employee, subcontractor, supplier or customer of our client.

We may also process your personal data for the purposes of our own legitimate interests provided that those interests do not override any of your own interests, rights and freedoms which require the protection of personal data. This includes processing for marketing, business development, statistical and management purposes.

Please note that we may process your personal data for more than one lawful basis depending on the specific purpose for which we are using your data.

Situations in which we will use your personal data

We may use your personal data in order to:

• carry out our obligations arising from any agreements entered into between our clients and us (which will most usually be for the provision of our services);
• carry out our obligations arising from any agreements entered into between our clients and us (which will most usually be for the provision of our services) where you may be a subcontractor, supplier or customer of our client;
• provide you with information related to our services and our events or seek your thoughts and opinions on the services we provide; and
• notify you about any changes to our services.

In some circumstances we may anonymise or pseudonymise the personal data so that it can no longer be associated with you, in which case we may use it without further notice to you.

We may also process your personal data without your knowledge or consent, in accordance with this notice, where we are legally required or permitted to do so.

Data retention

We will only retain your personal data for as long as is necessary to fulfil the purposes for which it is collected.

When assessing what retention period is appropriate for your personal data, we take into consideration the requirements of our business and the services provided, any statutory or legal obligations and the purposes for which we originally collected the personal data.

Change of purpose

Where we need to use your personal data for a reason, other than the purpose for which we originally collected it, we will only use your personal data where that reason is compatible with the original purpose. If we need to use your data for a new purpose, we will notify you and communicate our legal basis for this new processing.

5.      DATA SHARING

We will share your personal data with third parties where we are required by law, where it is necessary to administer the relationship between us, or where we have another legitimate interest in doing so. This may include sharing your personal data with a regulator or to otherwise comply with the law.

“Third parties” includes third-party service providers and other entities within our group the members of our firm’s network. We only permit our third-party service providers to process your personal data for specified purposes and in accordance with our instructions

We may share your personal data with other third parties, for example in the context of the possible sale or restructuring of the business. We may also need to share your personal data with a regulator or to otherwise comply with the law.

6.      TRANSFERRING PERSONAL DATA OUTSIDE THE UNITED KINGDOM (UK)

We will transfer the personal data we collect about you to any European country and India, where we held offices, in order to perform our contract with you.

There are adequacy regulations under the Data Protection Act 2018 in relation to these countries therefore they will be deemed to provide an adequate level of protection for your personal information for the purpose of the Data Protection Legislation.

7.      DATA SECURITY

We have put in place commercially reasonable and appropriate security measures to prevent your personal data from being accidentally lost, used or accessed in an unauthorised way, altered or disclosed. In addition, we limit access to your personal data to those employees, agents, contractors and other third parties who have a business need to know. They will only process your personal data on our instructions and they are subject to a duty of confidentiality.

We have put in place procedures to deal with any suspected data security breach and will notify you and any applicable regulator of a suspected breach where we are legally required to do so.

8.      RIGHTS OF ACCESS, CORRECTION, ERASURE, AND RESTRICTION

Your duty to inform us of changes

It is important that the personal data we hold about you is accurate and current. Should your personal information change, please notify us of any changes of which we need to be made aware by contacting us, using the contact details below.

Your rights in connection with personal data

Under certain circumstances, by law you have the right to:

• Request access to your personal data. This enables you to receive details of the personal data we hold about you and to check that we are processing it lawfully.
• Request correction of the personal data that we hold about you.
• Request erasure of your personal data. This enables you to ask us to delete or remove personal data where there is no good reason for us continuing to process it. You also have the right to ask us to delete or remove your personal data where you have exercised your right to object to processing (see below).
• Object to processing of your personal data where we are relying on a legitimate interest (or those of a third party) and there is something about your particular situation which makes you want to object to processing on this basis. You also have the right to object where we are processing your personal information for direct marketing purposes.
• Request the restriction of processing of your personal data. This enables you to ask us to suspend the processing of personal data about you, for example if you want us to establish its accuracy or the reason for processing it.
• Request the transfer of your personal data to you or another data controller if the processing is based on consent, carried out by automated means and this is technically feasible.

If you want to exercise any of the above rights, please email our Data Protection Point of Contact at info@elmersgreen.co.uk

You will not have to pay a fee to access your personal data (or to exercise any of the other rights). However, we may charge a reasonable fee for the administrative costs of complying with the request if your request for access is manifestly unfounded or excessive. Alternatively, we may refuse to comply with the request in such circumstances.

We may need to request specific information from you to help us confirm your identity and ensure your right to access the information (or to exercise any of your other rights). This is another appropriate security measure to ensure that personal information is not disclosed to any person who has no right to receive it.

9.      RIGHT TO WITHDRAW CONSENT

In the limited circumstances where you may have provided your consent to the collection, processing and transfer of your personal data for a specific purpose (for example, in relation to direct marketing that you have indicated you would like to receive from us), you have the right to withdraw your consent for that specific processing at any time. To withdraw your consent, please email our Data Protection Point of Contac at info@elmersgreen.co.uk.

Once we have received notification that you have withdrawn your consent, we will no longer process your personal information (personal data) for the purpose or purposes you originally agreed to, unless we have another legitimate basis for doing so in law.

10.   CHANGES TO THIS NOTICE

Any changes we may make to our privacy notice in the future will be provided on our website at www.elmersgreen.co.uk.

This privacy notice was last updated on 01/04/2025.

11.   CONTACT US

If you have any questions regarding this notice or if you would like to speak to us about the manner in which we process your personal data, please email our Data Protection Point of Contact info@elmersgreen.co.uk or telephone 01925 987030.

You also have the right to make a complaint to the Information Commissioner’s Office (ICO), the UK supervisory authority for data protection issues, at any time. The ICO’s contact details are as follows:

Information Commissioner’s Office
Wycliffe House
Water Lane
Wilmslow
Cheshire
SK9 5AF

Telephone – 0303 123 1113 (local rate) or 01625 545 745

Website – https://ico.org.uk/concerns