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Payroll services |
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It is both recommended good professional
practice and a requirement of the law relating to the provision of services
to set out in writing a clear explanation of the services we offer. This is
known in professional parlance as an ‘engagement letter’. So that any prospective client can
understand the full details of the basis upon which we undertake professional
work, we have placed a sample of our standard engagement letters on this web
site. This particular engagement letter
covers the work done in providing our payroll services to clients. Viewing this web
page is subject to our terms and conditions,
our honesty scheme (for other
professional firms viewing this
page), and our copyright.
Clients of the practice can obtain
further information by entering the ‘Client ‘ Zone’ and searching the index
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A Fee is payable to P Brown & Co
for the downloading of this document by any professional firm of accountants or
solicitors. The fee is payable under our honesty
scheme, whereby this document may be downloaded for £1.00 (with a minimum
payment of £5.00 in a period of one calender month)
A prospective client may download the
document for no charge.
Note
. This is only an example and a specific letter will be sent to each client
upon accepting an engagement
Introduction
It is both a requirement of the law relating to the provision of services
and also good professional practice to set out clearly in writing the terms and
conditions upon which we provide you with professional services.
This letter of engagement complies with this requirement. We would
request that you carefully read through this letter to ensure there is no
misunderstanding between us. If you agree to the terms and conditions set
out, then please sign and return the
spare copy to us. If there is any point upon which you require clarification,
then please contact us. If, within four weeks, we have not heard from you or
received back the signed copy, we will assume that you are in agreement with
the contents of this letter.
Services to be
provided by us.
Part 1
We agree to :-
Maintain your payroll and prepare wage slips, payment advices and
annual returns from the information supplied by yourself. This is subject to
your having supplied us with all information relevant to your payroll as and
when requested by us,and in particular to your letting us have details of all
employees, pay rates, hours worked etc at least 24 hours before the time of
intended payment.
It should be noted that we can only prepare and maintain your
payroll on the basis of information supplied by yourself, or third parties
acting on your authority, and can accept no responsibility for any errors in
such information supplied or delays in supplying such information to us.
This service excludes any investigation or payroll audit into your
affairs by the HM Revenue and Customs, or the NIC authorities, and also excludes enquiries , (except
enquiries of a minor or routine nature) raised upon any returns prepared
by which would be the subject of a
separate letter of engagement.
In particular, this service includes :-
(i) preparing and submitting to you payslips for each pay day, and
advices to you of the amounts to be paid to the HM Revenue and Customs or other
authorities, on the basis of information provided to us by yourself.
(ii) preparing and submitting to you for signature the annual P35
return and supplying you with P14s/ P60s for each employee.
(iii) preparing P11d forms for each relevant employee and
submitting them to you. ( The fee for this service, if applicable , will be agreed with each
client)
Part 2
For your part ,you agree :-
(1) To comply with any conditions set out in Part 1
(2)To supply us with all
information in relation to your affairs that we may reasonably require, or that
is relevant to your affairs, promptly and in good order.
(3) That notwithstanding our obligation under this letter of
engagement to prepare documents, etc, you
( and you alone) are responsible for the accuracy and completeness of
your records all liabilities, howsoever arising, as a result of errors,
inaccuracies, omissions, commissions or a lack of clarity in your records,
insofar as they attach to us, are excluded, unless it can be proved that we had
specific written notice of the inaccuracy or incompleteness of your records.
(4) To follow our advice in relation to the nature of your payroll
records.
(5) To fully comply with the PAYE Regulations in all matters
including, in particular, the requirement to retain all your records, personal and business for a period of
(usually) six years after the end of the tax year involved. More precise
details of the requirements are available upon request.
(6) That nothing in this letter makes us directly or indirectly
responsible for the payment of any taxes. You agree that you remain fully
responsible for the payment of all taxes relating to your affairs. You also
agree that no payment should be made to the HM Revenue and Customs in respect
of Income Tax or NIC, without first
having received written advice from ourselves that the sums demanded are
correct. You also agree that any tax demands should be forwarded to us as soon
as possible for checking, in order to minimise the risk of either interest or
penalties.
(7) That you will supply us immediately upon receipt by you with
copies of any documents or notices served upon you by the HM Revenue and
Customs
Part 3
Non Compliance
(1) If at any time you have not fully complied with our advice in
relation to your records or
(2) You have not supplied us with the necessary information to deal
with your affairs within any statutory time limits (and the time limits set out
in this letter of engagement shall be of the essence for the purposes of
complying with statutory time limits) or
(3) You have in any other way by omission or commission made it
impracticable for us to comply with our obligations under this letter of
engagement, then, provided that your standing order payments are not in
arrears, or that any other amounts due to us have been paid in full, we agree
to do whatever we can to assist in rectifying the situation, but subject to our
reserving the right to make a specific charge on a basis to be agreed before
any additional work is undertaken.
(4) We must emphasise the severity of the current rules with regard to
interest and penalties that can be applied by
the HM Revenue and Customs , both in relation to late payment of tax and
late submission of returns. The deadlines set out by law are critical - not
even one days grace is allowed. Penalties and interest can also arise where you
have supplied us with incomplete or inaccurate information upon which we have
relied in making estimates of your liabilities in order to agree payments on
account with the HM Revenue and Customs.
Part 4
Any work of whatsoever description not included in this letter of engagement
, including advice on employment law and drafting contracts of employment shall
be the subject of a separate agreement ,and this letter shall be taken to be a
full and inclusive statement of the matters referred to.
We will be pleased at any time to advise you on any business or
taxation matters which you care to refer to us.
Part 5
Personnel
Taxation work will normally
be undertaken by (designated staff whose name will be advised to you)
Part 6
Fees
Our fees are payable
by you immediately upon an account being rendered, which will normally be
rendered monthly if the fee exceeds £50, otherwise it will be rendered
quarterly, unless budget account arrangements have been agreed between us. We
have agreed that the fees payable under this agreement shall be ( see fixed fees ).
If you cease to be a client and if we still hold any books and
papers that are your property, then at the expiry of six years from your
ceasing to be a client, we will write to your last known address inviting you
to collect such books and records. If such books and records are not collected
we will, under the terms of this letter of engagement, be at liberty to destroy
any such books and papers upon the seventh anniversary of your ceasing to be a
client.
If at any time while you remain a client , we still hold any books
and papers that are your property where the last entry therein was made no
later than six years earlier, then we will write to your last known address
inviting you to collect such books and records. If such books and records are
not collected we will, under the terms of this letter of engagement, be at
liberty to destroy any such books and papers upon the seventh anniversary of
the last entry therein.
All files and records which are the property of ourselves will be
retained in accordance with our formal file destruction policy which is
available for inspection upon request
We apologise for the length and complexity of this letter ,but
there is little point in skimping an a letter which we hope will be the
foundations upon which a long and mutually rewarding business relationship will
be built
Yours sincerely
FIRM NAME
REF 457 Payroll services engagement letter
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There is a minimum total payroll fee
of £100 per annum regardless of the
fee calculated from the schedule below |
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Fees are payable quarterly if below £50
per quarter, otherwise they are payable monthly |
The maximum fees exclude services such as
drafting contracts of employment, preparing P11ds and advising on employment
law and other extra services.
Preparing a wage slip
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£1.15 per employee per payroll run |
Preparing a P45 for a
leaver
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£1.15 per leaver |
Setting up a new
employee
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£1.15 per new employee |
Statutory Maternity Pay
(if applicable)
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£5.00 per confinement |
Statutory sick pay (if
applicable)
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£1.15 per claim per
employee |
Student Loans (if
applicable)
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£5.00 per loan |
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Tax Credit (if
applicable) |
£1.15 per employee per
annum |
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Preparing Annual P60s |
£1.15 per employee per annum |
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Preparing a P35 Annual
summary |
£1.15 per employee per
annum |
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Attachment of earnings
(if applicable) |
£1.15 per attachment |
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Preparing P11ds |
Fee charged on a time basis |
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Advice on employment law |
Fee depends on
circumstances |
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Preparing contracts of
employment |
Fee depends on
circumstances |
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Other services |
Fee on application |
Peter Brown & Co is a trading name of Undershot Ltd,
registered in England , no 4114468. Director :- P.Brown FCCA, FCIE,DchA,BSc.The registered office is Acomb
Grange, Grange Lane, York, YO23 3QZ.
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