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A Fee is payable to P Brown & Co for the downloading
of this document by any professional firm of accountants. 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) IP
addresses are recorded for the purposes of monitoring any abuse of this
service. Corporation tax return - Letter of Engagement This is
only a specimen letter and an individual letter will be tailored to meet
particular circumstances Note – this letter may not up to date for legal and
professional requirements and may need to be revised to cover specific
situations ‘Company’
means company,association or club 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. In signing this letter you
acknowledge that you are signing on behalf of the company. This
engagement letter is governed by and construed in accordance with English
Law. The Courts of England will have exclusive jurisdiction in relation to
any claim,dispute or difference concerning this engagement letter and any
matter arising from it. Each party irrevocably waives any right it may have
to object to any action being brought in those courts, to claim that the
action has been brought in an inappropriate forum , or to claim that those
courts do not have jurisdiction. Except as
may be otherwise provided by law , any liability to any third party arising
under the Contracts (Rights of Third Parties ) Act 1999 is hereby excluded. Services
to be provided by us. Part 1-
We agree to :- deal with
all taxation matters of a routine nature arising in connection with the
company’s tax affairs arising out of the Self Assessment procedures and to
comply with the filing requirements under the Self Assessment regulations.
This is subject to your having supplied us with all information relevant to
the partnership at least one month before the due date for filing any return
or paying any tax, and supplying us with a signed return , after we have
prepared the necessary figures, at least one week before the due date for
filing the return. In this
letter, the use of the word ‘you’ refers only to the company, and not to the
individual directors or committee members. Any services to be provided to the
individual directors will be the subject of a separate letter of engagement. NOTE – if
you are using a fixed fee service the above paragraph is amended to include
the particular services offered by the basic service or premium service as
appropriate It should
be noted that we can only negotiate with the Inland Revenue on the basis of
information supplied by yourself, or third parties acting on your authority. This
service excludes any investigation into your affairs by the Inland Revenue, H
M Customs and Excise or the NIC authorities, and also excludes enquiries , (
except enquiries of a minor or routine nature) raised upon your return under
the formal enquiry provisions which would be the subject of a separate letter
of engagement. In
particular, this service includes :- (i)
preparing and submitting ,subject to your agreement, the Self Assessment
Income Tax Return, on the basis of information provided to us by yourself. (ii) We
will, without reference to yourself, acting as your agents deal with all
correspondence, assessments, payment demands, including lodging, where
necessary appeals and claims, and applications for postponement of payment. (This
clause will be excluded under the basic service) (iii)
Where it is necessary in connection with your returns to prepare accounts or
statements of income and expenditure in respect of trading or property
letting we will obtain your approval and submit these to the Inspector of
Taxes with your annual return, but we would reserve the right to charge an
additional fee for preparing any such accounts. 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 Tax
Returns, Accounts, etc, you ( and you alone) are responsible for the accuracy
and completeness of your accounting records or other records and that 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 bookkeeping, accountancy and
other records. (5) To
fully comply with the Self Assessment Regulations in all matters including,
in particular, the requirement to retain all your records 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 Inland Revenue 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 Inland Revenue Part 3
- Non Compliance (1) If at
any time you have not fully complied with our advice in relation to your
accounting 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 Inland Revenue , 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 Inland Revenue. Part 4 Other work 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 myself. Part 6-
Fees Our fees
are payable by you immediately upon an account being rendered, which will be
immediately after completion and approval by you of the tax return,
immediately prior to its submission to the Inland Revenue. We have agreed
that the fees payable under this agreement shall be ( see fees under basic,
and premium services) . The
following applies only to the basic service The fee
under the basic service is based on your providing us with the necessary
information prior to three months before the filing date in each year, so
that the Inland Revenue can carry out the actual assessing procedures. If the
information comes into our hands after that date, we may miss the deadline . Part 7
- Retention and destruction of books and papers 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 NAME |
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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