SCHEDULES

SCHEDULE 1 - 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.

RESPONSIBILITIES AND SCOPE FOR FINANCIAL STATEMENTS PREPARATION SERVICES
1. Your responsibilities as directors/members
  1. As directors/members of the company/limited liability partnership, you are responsible for preparing financial statements which give a true and fair view and which have been prepared in accordance with the Companies Act 2006 (the Act)/ as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 (SI 2008/1911). As directors/members, you must not approve the financial statements unless you are satisfied that they give a true and fair view of the assets, liabilities, financial position and profit or loss of the company/limited liability partnership.
  2. In preparing the financial statements, you are required to:
    1. select suitable accounting policies and then apply them consistently;
    2. make judgements and estimates that are reasonable and prudent; and
    3. prepare the financial statements on the going-concern basis unless it is inappropriate to presume that the company/limited liability partnership will continue in business.
  3. You are responsible for keeping adequate accounting records that set out with reasonable accuracy at any time the company's/limited liability partnership's financial position, and for ensuring that the financial statements comply with applicable accounting standards and with the Companies Act 2006/as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 (SI 2008/1911) and give a true and fair view. By approving the financial statements, you will be acknowledging this responsibility.
  4. You are also responsible for safeguarding the assets of the company/limited liability partnership and hence for taking reasonable steps to prevent and detect fraud and other irregularities.
  5. Where an audit exemption is being undertaken - You are also responsible for deciding whether, in each financial year, the company/limited liability partnership meets the conditions for exemption from an audit, as set out in section 477, 479A or 480 of the Companies Act 2006/as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 (SI 2008/1911), and for deciding whether the exemption can be claimed that year.
  6. You are responsible for ensuring that the company/limited liability partnership complies with the laws and regulations that apply to its activities, and for preventing non-compliance and detecting any that occurs.
  7. You have undertaken to make available to us, as and when required, all the company's/limited liability partnership's accounting records and related financial information and explanations, including minutes of management and shareholders'/directors'/members' meetings, that we need to do our work
  8. If financial information is published on the company's/limited liability partnership's website or by other electronic means, which includes a report by us or otherwise associated with us, you must inform us of the electronic publication and get our consent before it occurs and ensure that it presents the financial information and chartered accountants report properly. We have the right to withhold consent to the electronic publication of our report or the financial statements if they are to be published in an inappropriate manner.
  9. It is your responsibility to set up controls to prevent or detect quickly any changes to electronically published information. We are not responsible for reviewing these controls or for keeping the information under review after it is first published. You are responsible for the maintenance and integrity of electronically published information, and we accept no responsibility for changes made to any information after it is first posted.
2. Our responsibilities as accountants
  1. You have asked us to help you prepare the financial statements in accordance with the requirements of the Companies Act 2006/as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 (SI 2008/1911), and for preparing accounts for filing with the Registrar of Companies as well as to enable profits to be calculated to meet the requirements of current tax legislation and to provide sufficient and relevant information to complete a tax return. We will compile the financial statements for your approval based on the accounting records that you maintain, the information and explanations that you give us and in accordance with the accounting framework agreed and applicable to you.
  2. We will plan our work on the basis that no report on the financial statements is required by statute or regulation for the year, unless you inform us in writing to the contrary. We will make enquiries of management and undertake any procedures that we judge appropriate but are under no obligation to perform procedures that may be required for assurance engagements such as audits or reviews.
  3. Non-audit clients - You have told us that the company/limited liability partnership is exempt from an audit of the financial statements. We will not check whether this is the case. However, if we find that the company/limited liability partnership is not entitled to the exemption, we will inform you.
  4. Non-audit clients - Our work will not be an audit of the financial statements in accordance with International Standards on Auditing (UK), so we will not be able to provide any assurance that the accounting records or the financial statements are free from material misstatement, whether caused by fraud, other irregularities or error, or to identify weaknesses in internal controls.
  5. Non-audit clients - Since we will not carry out an audit, or confirm in any way the accuracy or reasonableness of the accounting records, we cannot provide any assurance whether the financial statements that we prepare from those records will present a true and fair view.
  6. We will advise you on whether your records are adequate for preparation of the financial statements and recommend improvements on anything we come across during the course of our work.
  7. We have a professional duty to compile financial statements that conform with generally accepted accounting principles from the accounting records and information and explanations given to us. The accounting policies on which the financial statements have been compiled will be disclosed in the notes to the financial statements and will be referred to in our accountants' report. We will not compile financial statements if the accounting principles, or the accounting policies selected by management, are inappropriate.
  8. We also have a professional responsibility not to allow our name to be associated with financial statements which we believe may be misleading. Therefore, although we are not required to search for such matters, if we become aware, for any reason, that the financial statements may be misleading, we will discuss the matter with you with a view to agreeing appropriate adjustments and/or disclosures in the financial statements. In circumstances where the adjustments and/or disclosures that we consider appropriate are not made, or if we are not provided with appropriate information and, as a result, we consider that the financial statements are misleading, we will withdraw from the engagement.
  9. As part of our normal procedures, we may ask you to confirm in writing any information or explanations given to us orally during our work.
  10. You have instructed us to convert the financial statements into the iXBRL (inline eXtensible Business Reporting Language) format which is required by HMRC. We will use professional software to create the tagged financial statements and you therefore agree that we can process any standard data tags without your prior approval, only referring back to you for any non-standard or judgemental areas. It remains your legal responsibility to provide the information in the iXBRL format and we will therefore issue a tagging report for your approval.
3. Form of the accountants' report.
  1. We will report to the Board of Directors/members as appropriate that, in accordance with this engagement letter and to assist you to fulfil your responsibilities, we have not carried out an audit but have compiled the financial statements from the accounting records and from the information and explanations supplied to us. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's Board of Directors, as a body/the members for our work or for this report. If you wish to share this report with third parties, before doing so, you must discuss this with us, receive our consent and follow any stipulated conditions.
SCHEDULE 2 - 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.

RESPONSIBILITIES AND SCOPE FOR FINANCIAL STATEMENTS PREPARATION SERVICES
1. Your responsibility for the preparation of financial statements
  1. You have undertaken to make available to us, as and when required, all the accounting records and related financial information, including minutes of management meetings, which we need to do our work. You will provide us with all information and explanations relevant to the purpose and compilation of the financial statements, and you will disclose to us all relevant information in full.
  2. You are responsible for ensuring that, to the best of your knowledge and belief, financial information, whether used by the business or for the financial statements, is accurate and complete. You are also responsible for ensuring that the activities of the business are conducted honestly, and for safeguarding the assets of the business and for taking reasonable steps to prevent and detect fraud and other irregularities.
  3. You will approve and sign the financial statements to acknowledge responsibility for them, including the appropriateness of the accounting basis, and acknowledge responsibility for providing us with all information and explanations necessary for their compilation.
  4. You are responsible for ensuring that the business complies with the laws and regulations that apply to its activities, and for preventing non-compliance and detecting any that occurs.
2. Our responsibilities as accountants
  1. You have asked us to help you prepare the financial statements which comply with applicable accounting standards to enable profits to be calculated to meet the requirements of current tax legislation and to provide sufficient and relevant information to complete a tax return. We will compile the financial statements for your approval based on the accounting records that you maintain and the information and explanations you give us.
  2. We will plan our work on the basis that no report on the financial statements is required by statute or regulation for the year, unless you inform us in writing to the contrary. We will make enquiries of management and undertake any procedures that we judge appropriate but are under no obligation to perform procedures that may be required for assurance engagements such as audits or reviews
  3. Our work will not be an audit of the financial statements in accordance with International Standards on Auditing (UK) so we will not be able to provide any assurance that the accounting records or the financial statements are free from material misstatement, whether caused by fraud, other irregularities or error, or to identify weaknesses in internal controls.
  4. Since we will not carry out an audit, or confirm in any way the accuracy or reasonableness of the accounting records, we cannot provide any assurance whether the financial statements we prepare from those records will present a true and fair view.
  5. We will advise you whether your records are adequate for preparation of the financial statements and recommend improvements on anything we come across during the course of our work.
  6. We have a professional duty to compile financial statements that conform with generally accepted accounting principles from the accounting records and information and explanations given to us. The accounting policies on which the financial statements have been compiled will be disclosed in the notes to the financial statements and will be referred to in our accountants' report. We will not compile financial statements if the accounting principles, or the accounting policies selected by management are inappropriate.
  7. We also have a professional responsibility not to allow our name to be associated with financial information/statements which we believe may be misleading. Therefore, although we are not required to search for such matters, if we become aware, for any reason, that the financial statements may be misleading, we will discuss the matter with you with a view to agreeing appropriate adjustments and/or disclosures in the financial statements. If adjustments and/or disclosures that we consider appropriate are not made or if we are not provided with appropriate information and, as a result, we consider that the financial statements are misleading, we will withdraw from the engagement.
  8. As part of our normal procedures we may ask you to confirm in writing any information or explanations given to us orally during our work.
  9. You have instructed us to convert the financial statements into the iXBRL (inline eXtensible Business Reporting Language) format which is required by HMRC. We will use professional software to create the tagged financial statements and you therefore agree that we can process any standard data tags without your prior approval, only referring back to you for any non-standard or judgemental areas. It remains your legal responsibility to provide the information in the iXBRL format and we will therefore issue a tagging report for your approval.
3. Form of the accountants' report.
  1. We will report to you as appropriate that, in accordance with this engagement letter, we have not carried out an audit but have compiled the financial statements from the accounting records and from the information and explanations supplied to us. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than you for our work or for this report. If you wish to share this report with third parties, before doing so, you must discuss this with us, receive our consent and follow any stipulated conditions.
SCHEDULE 3 - 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.

RESPONSIBILITIES AND SCOPE FOR ACCOUNTING SERVICES
1. Your responsibility for the provision of information
  1. You have undertaken to make available to us, as and when required, all the accounting records and related financial information, including minutes of management meetings, which we need to do our work. You will provide us with all information and explanations relevant to the purpose, preparation and maintenance of the accounting records, and you will disclose to us all relevant information in full.
  2. You are responsible for ensuring that, to the best of your knowledge and belief, financial information, whether used by the business or for the accounting records, is accurate and complete. You are also responsible for ensuring that the activities of the business are conducted honestly, and for safeguarding the assets of the business and for taking reasonable steps to prevent and detect fraud and other irregularities.
  3. You are responsible for ensuring that the business complies with the laws and regulations that apply to its activities, and for preventing non-compliance with these and detecting any that occur.
2. Our responsibilities
  1. We have agreed to carry out the following accounting and other services on your behalf:
    1. write up the accounting records of the business/company/partnership and;
    2. complete the postings to the nominal ledger.
3. Your responsibilities
  1. You have agreed that you/your staff will:
    1. keep the records of receipts and payments;
    2. reconcile the balances monthly with the bank statements;
    3. post and balance the purchases and sales ledgers;
    4. extract a detailed list of ledger balances;
    5. prepare details of the annual stocktaking, suitably priced and extended in a form which will enable us to verify the prices readily by reference to suppliers' invoices, or if applicable, provide us with a copy of the valuation report produced by your independent stocktakers; and
    6. prepare details of work-in-progress at the accounting date and make available to us the documents and other information from which the statement is compiled.
SCHEDULE 4 - 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. Recurring compliance work
  1. We will prepare your self-assessment tax returns, including if you have been treated as a deemed employee under the IR35/off-payroll working rules, together with any supplementary pages required from the information and explanations that you provide to us. After obtaining your evidenced approval, we will submit your returns to HM Revenue & Customs (HMRC).
  2. We will prepare your business accounts in accordance with generally accepted accounting practice from the books, accounting records and other information and explanations provided to us by you or by others on your behalf.
  3. We will compute your property letting income and expenditure on the cash basis or in accordance with the accruals election that you have made from the books, accounting records and other information and explanations provided to us by you or by others on your behalf.
  4. We will calculate your income tax, national insurance contributions (NIC) and any capital gains tax liabilities to be included on your self-assessment return and tell you how much you should pay and when. We will advise on the interest and penalty implications if tax or NIC is paid late. We will also check HMRC's calculation of your tax and NIC liabilities and initiate repayment claims if tax or NIC have been overpaid.
  5. We will advise you on possible tax-return-related claims and elections arising from information supplied by you, other than as regards tax credits and universal credit (see below). If instructed by you, we will make such claims and elections in the form and manner required by HMRC.
  6. We will review PAYE notices of coding provided to us and advise accordingly.
  7. If applicable - There is an in-year capital gains tax (CGT) reporting and payment requirement for disposals of UK residential property and, if you are non-UK resident, UK non-residential property and investments in property-rich entities. 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. (Note: as returns must be submitted within 60 days of sale completion, please see para 1.4.1.)
2. Excluded, ad hoc and advisory work
  1. 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. advising on the extraction of cash/dividends from your personal service company if you have been treated as a deemed employee under the IR35/off-payroll working rules;
    2. advising on preparing business accounts on the cash basis and/or property letting income and expenditure computations on the accruals basis and helping you to make the requisite election(s);
    3. advising on making tax digital for income tax self assessment (MTD ITSA) which will require digital accounting records and the submission of quarterly updates and annual returns to HMRC using compatible software. MTD ITSA will be mandatory from 6 April 2024 for income from self-employment and property;
    4. advising on whether you should change your business accounting year end to align with the tax year end and if so helping you to make the transition including claiming overlap relief;
    5. advising on the in-year capital gains tax (CGT) reporting requirements on disposals of UK residential property, and, if you are non-UK resident, UK non-residential property and investments in property-rich entities, preparing the in-year return and calculating the CGT due where required and submitting the return to HMRC
    6. advising on ad hoc transactions (for example pre-sale advice on the sale of assets);
    7. 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);
    8. dealing with any enquiry opened into your tax return by HMRC;
    9. preparing any amended returns which may be required and corresponding with HMRC as necessary;
    10. advising on the rules relating to and assisting with registration for VAT or equivalent non-UK taxes; and
    11. advising on tax credits and universal credit; these are, in effect, social security benefits, and your entitlement or otherwise will depend not only on your own circumstances but also on those of your household; we would require all relevant information to advise in this area.
  2. If specialist advice is required, we may need to seek this from, or refer you to, appropriate specialists.
3. Changes in the law, in practice or in public policy
  1. 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.
  2. 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.
4. Your responsibilities
  1. You are legally responsible for:
    1. ensuring that your self-assessment tax and CGT on UK residential property returns are correct and complete;
    2. filing any returns by the due date; and
    3. paying tax on time.
  2. Failure to do any of the above may lead to penalties and/or interest.
  3. Legal responsibility for approval of the return cannot be delegated to others. You agree to check that returns that we have prepared for you are correct and complete before approving them.
  4. 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.
  5. 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 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 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 60 days after the completion of the disposal;
    4. to authorise us to approach such third parties as may be appropriate, for information that we consider necessary to deal with your affairs; and
    5. to provide us with information in sufficient time for your tax return 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 by 31st December.
  6. You will keep us informed of material changes in your circumstances that could affect your tax liability. If you are unsure whether the change is material, please tell us so that we can assess its significance.
  7. HMRC will send you an agent authorisation code which expires within 30 days of issue. Please send this to us as soon as you receive it. This code will enable us to register as your agent with HMRC.
  8. 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 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.
  9. 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 UK VAT registration threshold and you wish us to assist you in notifying HMRC of your liability to be VAT registered, we will be pleased to assist you in the VAT registration process. You should notify us of your instructions to assist in your 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 you exceed the VAT registration threshold in force at that time. 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.
  10. Where you are importing relevant goods into the EU to be supplied to non-taxable persons (final destination of the goods being within the EU), the IOSS can be used by both EU and non-EU established suppliers. If you are importing goods into the EU to be supplied to non-taxable persons but do not or cannot use the IOSS then you will probably have to VAT register in the Member State of importation.
  11. If you are making distance supplies of goods within the EU, eg France to Germany (B2C), you can use the Union One Stop Shop (OSS). The non-Union OSS can be used for any services where the place of the supply of the service is in the EU and the supplier is non-EU established (B2C again).
  12. There may be other circumstances where the Union or non-Union OSS can be used, eg domestic supplies of goods by deemed suppliers, but, broadly, If you are not within any of the above, you may need to VAT-register in the Member State in which you make the supply of the goods or services.
  13. You are responsible for employment taxes, pensions (including auto-enrolment) and the assessment of the employment status of your workers including domestic staff. 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.
5. If applicable - You and your spouse/partner
  1. We will advise you and your spouse/partner on the basis that you are a family unit. You both agree that, in all matters relating to your or your spouse's/partner's tax and financial affairs, we may deal directly with either of you and we may discuss with either of you the tax liabilities and/or financial affairs of the other. This will help us to streamline our service to you and enable us, for example, to ascertain high income child benefit charge, transferrable marriage allowance, and CGT base costs of assets disposed of which have been transferred between you, where applicable. If you wish to make any change to these arrangements at any time, please let us know.
  2. In order for us to act for you as a couple in respect of a joint claim, you undertake that all instructions, information or explanations that either of you gives us will be on behalf of both of you, unless you specifically tell us otherwise. Similarly, if one of you signs a document, it will be on behalf of you both unless you instruct us to the contrary. If a conflict of interest should arise between you in relation to any matter to do with your joint claim or entitlement, we reserve the right to cease acting for both of you, or to advise one or other of you to obtain independent advice.
SCHEDULE 5 - TRUSTS AND ESTATES TAX RETURNS

SCHEDULE OF SERVICES

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

RESPONSIBILITIES AND SCOPE FOR TRUST/ESTATE TAX RETURN SERVICES
1. Recurring compliance work
  1. We will prepare:
    1. the trust's/estate's self-assessment tax returns, together with any supplementary pages required;
    2. all inheritance tax returns required from the information and explanations that you provide to us. After obtaining evidenced approval from you, we will submit your returns to HM Revenue & Customs (HMRC).
  2. 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.
  3. 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.
  4. 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.
  5. 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.
  6. If applicable - There is an in-year capital gains tax (CGT) reporting and payment requirement for disposals of UK residential property and, if the trust is non-UK resident, UK non-residential property and investments in property-rich entities. 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. (Note: as returns must be submitted within 60 days of sale completion, please see para 1.5.1)
  7. 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.
  8. 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.
  9. 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 within 30 days of the deadline, we will register the trust along with the appropriate details within the time limits required.
  10. 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 by within 30 days of the deadline we will update/confirm the appropriate details on HMRC's trust register within the time limits required.
2. Foreign Account Tax Compliance Act (FATCA) and Common Reporting Standards (CRS)
  1. 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.
  2. 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).
  3. You will be solely responsible for compliance with the International Tax Compliance (United States of America) Regulations 2013 as a result of the USA Foreign Account Tax Compliance Act (FATCA).
  4. You will be responsible for compliance with these regulations and any obligations arising from the Common Reporting Standards, including the initial categorisation, registration of the trust with the IRS (or other applicable authority) and the filing of annual returns with HMRC.
  5. If the trust is determined to be a Financial Institution, we can 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
  6. 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.
3. Excluded, ad hoc and advisory work
  1. 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.
  2. If specialist advice is required, we may need to seek this from, or refer you to, appropriate specialists.
4. Changes in the law, in practice or in public policy
  1. 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.
  2. 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.
5. Your responsibilities
  1. 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.
  2. Failure to do any of the above may lead to penalties and/or interest.
  3. 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.
  4. 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.
  5. 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 following the end of the tax year; to do this, we need to receive all relevant information by 31st December;
    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.
  6. 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.
  7. HMRC will send you an agent authorisation code which expires within 30 days of issue. Please send this to us as soon as you receive it. This code will enable us to register as your agent with HMRC
  8. 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.
  9. 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.
  10. Where you are importing relevant goods into the EU to be supplied to non-taxable persons (final destination of goods being within the EU), the IOSS can be used by both EU and non-EU established suppliers. If you are importing goods into the EU to be supplied to non-taxable persons but do not or cannot use the IOSS then you will probably have to VAT register in the Members State of importation.
  11. If you are making distance supplies of goods within the EU, eg France to Germany (B2C), you can use the Union One Stop Shop (OSS). The non-Union OSS can be used for any services where the place of the supply of the service is in the EU and the supplier is non-EU established (B2C again).
  12. There may be other circumstances where the Union or non-Union OSS can be used, eg domestic supplies of goods by deemed suppliers, but, broadly, if you are not within any of the above, you may need to VAT-register in the Member State in which you make the supply of the goods or services.
  13. 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.
  14. 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.
SCHEDULE 6 - PARTNERSHIP TAX RETURNS

SCHEDULE OF SERVICES

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

RESPONSIBILITIES AND SCOPE FOR PARTNERSHIP TAX RETURN SERVICES
1. Recurring compliance work
  1. We will prepare the partnership self-assessment tax returns and the annual partnership statements, together with any required supplementary pages, from the information and explanations the partnership provides us. After obtaining your evidenced approval, we will submit these to HM Revenue & Customs (HMRC).
  2. We will prepare the partnership business accounts in accordance with generally accepted accounting practice from the books, accounting records and other information and explanations provided to us by you and/or by others on your behalf.
  3. We will prepare the income and capital gains computations based on the partnership's business accounts for inclusion in the partnership tax return.
  4. If instructed by you, we will advise you as partners on possible partnership tax-return-related claims and elections arising from information supplied by the partnership in the form and manner required by HMRC.
  5. If instructed, we will provide each partner, or their agent, with details of the partner's allocations from the return based on the partnership statement to enable partners to fill in their self-assessment tax returns.
  6. The work carried out within this engagement will be in respect of the partnership's tax affairs. Any work to be carried out for the individual partners (for example submitting their own tax returns or making related claims and elections) will be set out in a separate letter of engagement.
2. Excluded, ad hoc and advisory work
  1. 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. advising on making tax digital for income tax self assessment (MTD ITSA) which will require digital accounting records and the submission of quarterly updates and annual returns to HMRC using compatible software. MTD ITSA will be mandatory for general partnerships from 6 April 2025 for income from trading and property;
    2. advising on whether you should change your partnership accounting year end to align with the tax year end and if so helping you to make the transition including claiming overlap relief;
    3. advising on ad hoc transactions (for example the sale or purchase of assets)
    4. advising on preparing accounts on the cash basis and helping you to make the requisite election;
    5. dealing with any enquiry opened into the partnership tax return by HMRC; and
    6. preparing any amended returns which may be required and corresponding with HMRC as necessary.
  2. If specialist advice is required, we may need to seek this from, or refer you to, appropriate specialists.
3. Changes in the law, in practice or in public policy
  1. 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.
  2. 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.
4. Your responsibilities
  1. The partners are legally responsible for:
    1. ensuring that the partnership self-assessment tax returns are correct and complete;
    2. filing any returns by the due date; and
    3. paying tax on time.
  2. Legal responsibility for approval of the return cannot be delegated to others. You agree to check that returns and partnership statements that we have prepared for the partnership are correct and complete before approving them.
  3. You are no less responsible for errors in unapproved returns, submitted on the basis of the information provided to and processed by us, than if you had confirmed your approval of the returns.
  4. 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 partnership 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 the partnership affairs; and
    4. to provide us with information in sufficient time for the partnership tax returns 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 by 31s December;
  5. You will keep us informed of material changes in circumstances that could affect the tax liabilities of the partners including, by way of example, changes in the partners in the partnership and profit shares. If you are unsure whether the change is material, please tell us so that we can assess its significance.
  6. 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.
  7. You will forward to us 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 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.
  8. You are responsible for monitoring the partnership's monthly turnover to establish whether the partnership is liable to register for VAT if it is not already registered. If you do not understand what you need to do, please ask us. If turnover exceeds the UK VAT registration threshold, and you wish us to assist in notifying HMRC of the partnership's obligation to be VAT registered, we will be pleased to assist in the VAT registration process. You should notify us of your instructions to assist in 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 incur a late registration penalty as a result. The same applies for equivalent non-UK taxes.
  9. Where you are importing relevant goods into the EU to be supplied to non-taxable persons (final destination of the goods being within the EU), the IOSS can be used by both EU and non-EU established suppliers. If you are importing goods into the EU to be supplied to non-taxable persons but do not or cannot use the IOSS then you will probably have to VAT register in the Member State of importation.
  10. If you are making distance supplies of goods within the EU, eg France to Germany (B2C), you can use the Union One Stop Shop (OSS). The non-Union OSS can be used for any services where the place of the supply of the service is in the EU and the supplier is non-EU established (B2C again).
  11. There may be other circumstances where the Union or non-Union OSS can be used, eg domestic supplies of goods by deemed suppliers, but, broadly, If you are not within any of the above, you may need to VAT-register in the Member State in which you make the supply of the goods or services.
  12. 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.
SCHEDULE 7 - 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.

RESPONSIBILITIES AND SCOPE FOR LIMITED LIABILITY PARTNERSHIPS (LLP) TAX RETURN SERVICES
1. Recurring compliance work
  1. We will prepare the LLP self-assessment tax return, which includes the annual partnership statements, together with any supplementary pages required, from the information and explanations that the LLP provides to us. After obtaining your evidenced approval, we will submit these to HM Revenue & Customs (HMRC).
  2. We will prepare the LLP's business accounts in accordance with generally accepted accounting practice from the books, accounting records and other information and explanations provided to us by you and/or by others on your behalf.
  3. We will prepare the income and capital gains computations based on the LLP's business accounts for inclusion in the partnership tax return.
  4. If instructed by you, we will advise you as members of the LLP on possible partnership-tax-return-related claims and elections arising from information supplied by the LLP in the form and manner required by HMRC.
  5. If instructed, we will provide each member, or their agent, with details of the member's allocations from the return based on the partnership statement to enable members to fill in their self-assessment tax returns.
  6. The work carried out within this engagement will be in respect of the LLP's tax affairs. Any work to be carried out for the individual members (for example, submitting their own tax returns or making related claims and elections) will be set out in a separate letter of engagement.
2. Excluded, ad hoc and advisory work
  1. 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. Advising on ad hoc transactions (for example the sale or purchase of assets);
    2. dealing with any enquiry opened into the partnership tax return by HMRC; and
    3. preparing any amended returns which may be required and corresponding with HMRC as necessary.
  2. If specialist advice is required, we may need to seek this from, or refer you to, appropriate specialists.
3. Changes in the law, in practice or in public policy
  1. 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.
  2. We will accept no liability for losses arising from changes in the law (or the interpretation thereof) or practice or in public policy that are first published after the date on which the advice is given.
4. Your responsibilities
  1. The members are legally responsible for:
    1. ensuring that the partnership self-assessment tax returns are correct and complete;
    2. filing any returns by the due date; and
    3. paying tax on time.
  2. Legal responsibility for approval of the return cannot be delegated to others. You agree to check that the returns that we have prepared for the LLP are correct and complete before approving them.
  3. You are no less responsible for errors in unapproved returns, submitted on the basis of the information provided to and processed by us, than if you had confirmed your approval of the returns.
  4. 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 LLP's 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 the LLP's affairs; and
    4. to provide us with information in sufficient time for the LLP tax return 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 by 31st December.
  5. You will keep us informed of material changes in circumstances that could affect the partnership tax returns or the partnership statements including, by way of example, changes in the members in the LLP. If you are unsure whether the change is material, please tell us so that we can assess its significance.
  6. 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.
  7. You will forward to us 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 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.
  8. You are responsible for monitoring the LLP's monthly turnover to establish whether the LLP is liable to register for VAT if it is not already registered. If you do not understand what you need to do, please ask us. If it exceeds the UK VAT registration threshold, and you wish us to assist in notifying HMRC of its liability to be VAT registered, we will be pleased to assist in the VAT registration process. You should notify us of your instructions to assist in 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 incur a late registration penalty as a result. The same applies for equivalent non-UK taxes.
  9. Where you are importing relevant goods into the EU to be supplied to non-taxable persons (final destination of the goods being within the EU), the IOSS can be used by both EU and non-EU established suppliers. If you are importing goods into the EU to be supplied to non-taxable persons but do not or cannot use the IOSS then you will probably have to VAT register in the Member State of importation.
  10. If you are making distance supplies of goods within the EU, e.g. France to Germany (B2C), you can use the Union One Stop Shop (OSS). The non-Union OSS can be used for any services where the place of the supply of the service is in the EU and the supplier is non-EU established (B2C again).
  11. There may be other circumstances where the Union or non-Union OSS can be used, e.g. domestic supplies of goods by deemed suppliers, but, broadly, if you are not within any of the above, you may need to VAT-register in the Member State in which you make the supply of the goods or services.
  12. 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.
SCHEDULE 8 - CORPORATION TAX

SCHEDULE OF SERVICES

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

RESPONSIBILITIES AND SCOPE FOR CORPORATION TAX SERVICES
1. Recurring compliance work
  1. For the purpose of the delivery of the company's tax return, we will use commercial software to apply iXBRL tags to items in the accounts as we consider appropriate for the purposes of submission of the accounts in iXBRL via the relevant official gateway for tax purposes.
  2. We will, to the extent we consider necessary, manually amend or apply tags if the software has not applied automatic tagging or if we consider any automatic tagging to have been inappropriate.
  3. We will prepare the company's corporate tax self-assessment (CTSA) return. After obtaining your evidenced approval and signature, we will submit it to HM Revenue & Customs (HMRC). We shall not accept liability for any financial penalty or loss or other damage arising from any rejection of the iXBRL return by HMRC or otherwise as a result of incorrect or inappropriate tagging. We will prepare the corporation tax computation and supporting schedules required for preparation of the company tax return from accounts, information and explanations provided to us on your behalf.
  4. We will tell you how much tax the company should pay and when. Where appropriate, we will initiate repayment claims when tax has been overpaid. We will advise on the interest and penalty implications if corporation tax is paid late.
  5. We will inform you if instalment payments of corporation tax are due for an accounting period, and the dates they are payable. By the date agreed, we will calculate the quarterly instalments which should be made on the basis of information supplied by you.
  6. 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.
  7. The work carried out within this engagement will be in respect of the company's tax affairs. Any work to be carried out for the directors on a personal basis will be set out in a separate letter of engagement.
2. Excluded, ad hoc and advisory work
  1. 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. advising you on ad hoc transactions (for example the sale or purchase of assets);
    2. advising you when corporation tax is due on loans by the company to directors or shareholders or their associates, and calculating the payments due or the amount repayable when the loans are repaid;
    3. advising you on and preparing enhanced expenditure claims and reliefs, including those relating to research and development;
    4. advising you on, and preparing analyses of, expenditure and detailed capital allowance claims for renovation of buildings;
    5. preparation and submission of a group allocation allowance statement in relation to losses carried forward by a group of companies;
    6. preparation and submission of a corporate interest restriction return;
    7. assistance with country-by-country reporting notifications, senior accounting officer reporting obligations, and the company tax strategy document;
    8. dealing with any enquiry, information request, inspection, compliance check or other intervention opened into the company's corporate tax affairs by HMRC; and
    9. preparing any amended returns which may be required, calculating any related tax liabilities and corresponding with HMRC as necessary.
  2. For personal service companies, or where you are engaging with a personal service company. 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. helping you determine deemed employment status under IR35 rules for work undertaken for clients by the company (subject to 1.2.3 below)
    2. where deemed employment status under the IR35 rules applies to work undertaken for clients by the company, calculating the deemed employment payment and accounting through payroll to HMRC for the tax and NIC etc;
    3. where the 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 via their own personal service companies, helping you to determine whether you are “small” under the off-payroll working rules and, if you are large or medium sized, helping you to determine the deemed employment status of those contractors (subject to section 1.2.3 below) and assist you in preparing employment status determination statements to give to labour supply agencies and those contractors;
  3. If specialist advice is required, we may need to seek this from, or refer you to, appropriate specialists.
3. Changes in the law, in practice or in public policy
  1. 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.
  2. 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.
4. Your responsibilities
  1. Even though you are engaging us to help you meet your corporation tax obligations, the directors on behalf of the company are legally responsible for:
    1. ensuring that the CTSA return (including iXBRL tags and iXBRL file) and any other returns submitted are correct and complete;
    2. filing any returns by the due date; and
    3. paying tax on time.
  2. Legal responsibility for approval of the return cannot be delegated to others. You agree to check that returns that we have prepared for the company are correct and complete before approving them.
  3. You are no less responsible for errors in unapproved returns, submitted on the basis of the information provided to and processed by us, than if you had confirmed your approval of the returns.
  4. To enable us to carry out our work, you agree:
    1. to provide us with approved accounts for the company prepared by you or by others in an iXBRL format; you accept full responsibility for the existence, accuracy, consistency and completeness of iXBRL tagging within the accounts; we will not carry out any procedures to check the existence, accuracy, consistency and completeness of the iXBRL file;
    2. that all returns are to be made on the basis of full disclosure of all sources of income, charges, allowances and capital transactions;
    3. to provide full information necessary for dealing with the company's affairs; we will rely on the information and documents being true, correct and complete and will not audit the information or those documents;
    4. to authorise us to approach such third parties as may be appropriate, for information that we consider necessary to deal with the company's affairs;
    5. to provide us with information by 8 months after the year end for sufficient time for the company's CTSA return to be completed and submitted by the due date following the end of the tax year;
    6. to provide information on matters affecting the company's tax liability for the accounting period in respect of which instalments are due at least four weeks before the due date of each instalment; this information should include details of trading profits and other taxable activities up to the date the information is provided, together with estimates to the end of the accounting period; and
    7. to provide us with information on advances or loans made to directors, shareholders or their associates during an accounting period and any repayments made or write-offs authorised within three months of the end of the relevant accounting period.
  5. You will keep us informed of material changes in circumstances that could affect the tax liabilities of the company. If the directors are unsure whether the change is material, please tell us so that we can assess its significance.
  6. 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.
  7. 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 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.
  8. You are responsible for monitoring the monthly turnover to establish whether the company is liable to register for VAT, if it is not already registered. If you do not understand what you need to do, please ask us. If the company turnover exceeds the VAT registration threshold, and you wish us to assist in notifying HMRC of the company's obligation to be VAT registered, we will be pleased to assist in the VAT registration process. You should notify us of your instructions to act in relation to the company's 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 current VAT registration turnover threshold was exceeded. We will not be responsible if we are not notified in time and a late registration penalty is incurred.
  9. Where you are importing relevant goods into the EU to be supplied to non-taxable persons (final destination of the goods being within the EU), the IOSS can be used by both EU and non-EU established suppliers. If you are importing goods into the EU to be supplied to non-taxable persons but do not or cannot use the IOSS then you will probably have to VAT register in the Member State of importation
  10. If you are making distance supplies of goods within the EU, eg France to Germany (B2C), you can use the Union One Stop Shop (OSS). The non-Union OSS can be used for any services where the place of the supply of the service is in the EU and the supplier is non-EU established (B2C again).
  11. There may be other circumstances where the Union or non-Union OSS can be used, eg domestic supplies of goods by deemed suppliers, but, broadly, If you are not within any of the above, you may need to VAT-register in the Member State in which you make the supply of the goods or services,
  12. 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.
5. Personal service company
  1. We shall help you to determine deemed employment status under the IR35 rules for work undertaken for clients by the company.
  2. If specialist advice is required, we may need to seek this from, or refer you to, appropriate specialists.
6. Groups and consortia
  1. In relation to groups and consortia of which your company is a member, and in respect of which you have instructed us to act, if instructed, we will provide the following additional services:
    1. we will advise on the tax treatment of intra-group payments of dividends, interest and royalties and similar liabilities.
    2. in respect of dividends, interest, and royalties received, we will advise on the applicability of the relevant double-tax treaty to the withholding tax rate and assist with obtaining a UK certificate of tax residence. For dividends, we will make any necessary election to tax the dividends in the UK in order to obtain treaty relief.
  2. We will deal with all communications relating to elections addressed to us by HMRC.
  3. If instructed, in respect of claims for group and consortium relief:
    1. we will advise as required on claims for group and consortium relief and the interaction with other reliefs;
    2. we will prepare and submit to HMRC appropriate claims;
    3. we will adjust corporation tax computations and returns to reflect the surrender and receipt of group and consortium reliefs;
    4. we will prepare and submit to HMRC necessary documentation regarding the allocation of losses via group relief and the annual loss allowance;
    5. we will advise on arrangements for the payment of tax and the surrender and set-off of tax refunds within the group; and
    6. we will advise on claiming eligible unrelieved foreign tax (EUFT) or the surrender of any amount of EUFT.
  4. If instructed, in respect of intragroup payments of interest:
    1. we will advise on withholding tax obligations;
    2. for cross-border payments we will prepare and submit to HMRC applications to account for no or a reduced amount of withholding tax under the EU Interest and Royalty directive and double-tax treaties, as applicable;
    3. where withholding tax is due, we will complete form CT61 and advise on payment; and
    4. we will adjust corporation tax computations and returns to reflect interest payments and associated withholding tax, if any.
  5. If instructed, in respect of intragroup payments of royalties and similar liabilities:
    1. we will advise on withholding tax obligations;
    2. where withholding tax is due, we will complete form CT61 and advise on payment;
    3. we will adjust corporation tax computations and returns to reflect royalty and similar payments and associated withholding tax, if any, and make such additional disclosures in form CT600-H as are appropriate.
7. Your responsibilities
  1. If a parent company is required to prepare both individual and group accounts, and it is required to file both of these as part of its online company tax return, you accept full responsibility for the existence, accuracy, consistency and completeness of iXBRL tagging within the accounts and to file the individual accounts as an iXBRL document with the relevant iXBRL tags embedded.
  2. Where applicable, we will need to be authorised to contact other group member accountants to ensure that all necessary information and explanations are available. It is the responsibility of the parent company directors to ensure that such information and explanations are correct and complete.
SCHEDULE 9A - 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.

RESPONSIBILITIES AND SCOPE FOR PAYROLL SERVICES
1. Recurring compliance work
  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.
2. Ancillary payroll services
  1. 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. the data included within each 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:
      1. 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;
      2. any employee pension contribution refunds payable to any employee; and
      3. any employer pension contribution refunds due to you for any employee who has ceased membership of the scheme(s).
  2. 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.
  3. 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.)
  4. 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.
  5. 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.
  6. 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.
  7. We will submit national insurance number (NINO) verification requests as appropriate to verify or obtain a NINO for a new employee.
  8. Any enquiries from individual employees regarding their pay or other payroll details will be referred back to you.
3. Excluded, ad hoc and advisory work
  1. 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
    11. advising on ad hoc transactions, for example, termination payments to employees.
  2. If specialist advice is required, we may need to seek this from, or refer you to, appropriate specialists.
4. Changes in the law, in practice or in public policy
  1. 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.
  2. 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.
5. Your responsibilities
  1. 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.
  2. Employers cannot delegate these legal responsibilities to others. You agree to check that the submissions we have prepared for you are correct and complete before approving them.
  3. You are no less responsible for errors in unapproved returns, submitted on the basis of the information provided to and processed by us, than if you had confirmed your approval of the returns.
  4. 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 5 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.
    6. 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 - payroll names, PAYE scheme reference(s) and industry sector;
    7. 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;
    8. to notify us within 5 working days or such other period as agreed with us 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;
    9. 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);
    10. 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;
    11. to authorise us to approach such third parties as may be appropriate, for information that we consider necessary to deal with your payroll; and
    12. to approve:
      - in-year and final FPS by at least 2 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 2 days before the 19th of the month following the tax month;
      - revised year to date FPS for an earlier year within 10 days of notifying you of the data therein.
  5. 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.
  6. 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.
  7. 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).
6. Recurring compliance work
  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.
  2. 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.
  3. 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.
  4. 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.
  5. If specialist advice is required, we may need to seek this from, or refer you to, appropriate specialists.
  6. 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.
  7. To enable us to calculate the deemed employment payment(s), you agree to provide us with the following information by 5 working days 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.
  8. 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.
  9. 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.
7. Ancillary payroll services
  1. 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. the data included within each Full Payment Submission (FPS) for taxable pay and payrolled benefits-in-kind and expenses for each employee and deemed employee if acting as an engager or fee payer under off-payroll working rules;
    3. a payslip for each employee and deemed employee if acting as an engager or fee payer under off-payroll working rules;
    4. a form P45 for each leaver - both actual employee and deemed employees
    5. a report showing your PAYE and NIC liability, employee student loan repayments , apprenticeship levy and due date for payment; and
    6. a workplace pension contributions report showing:
      1. 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;
      2. any employee pension contribution refunds payable to any employee; and
      3. any employer pension contribution refunds due to you for any employee who has ceased membership of the scheme(s).
  2. 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.
  3. 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.)
  4. 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.
  5. 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.
  6. 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.
  7. We will submit national insurance number (NINO) verification requests as appropriate to verify or obtain a NINO for a new employee.
  8. Any enquiries from individual employees regarding their pay or other payroll details will be referred back to you.
8. Excluded, ad hoc and advisory work
  1. 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.
  2. 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 allowance 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
    11. advising on ad hoc transactions, for example, termination payments to employees.
  3. Personal Service Company
    1. helping you determine deemed employment status under IR35/off-payroll working rules for work undertaken for clients by the company (subject to 1.3.2 below)
    2. 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;
    3. 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;
    4. 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;
    5. 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;
    6. 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;
    7. 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;
    8. 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;
    9. ensuring that all employees are paid at least the national living wage / national minimum wage;
    10. 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;
    11. helping you to allocate apprenticeship levy allowance across your multiple or associated/connected companies' PAYE schemes;
    12. 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);
    13. 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;
    14. preparing and submitting any amended returns or data for previous tax years;
    15. assisting you in the operation of the Construction Industry Scheme (CIS) for subcontractors;
    16. conducting PAYE, and benefits and expenses health checks; and
    17. advising on ad hoc transactions, for example, termination payments to employees.
9. Changes in the law, in practice or in public policy
  1. 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.
  2. 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.
10. Your responsibilities
  1. 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.
  2. 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.
  3. You are no less responsible for errors in unapproved returns, submitted on the basis of the information provided to and processed by us, than if you had confirmed your approval of the returns.
  4. 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 2 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 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;
      - 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;
      - 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.
    6. 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;
    7. 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.
    8. to notify us within 5 working days or such other period as agreed with us 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;
    9. 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);
    10. 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;
    11. to authorise us to approach such third parties as may be appropriate, for information that we consider necessary to deal with your payroll; and
    12. to approve:
      - in-year and final FPS by at least 2 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 5 days before the 19th of the month following the tax month;
      - revised year to date FPS for an earlier year within 10 days of notifying you of the data therein.
11. 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.
12. 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.
13. 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).
SCHEDULE 10 - BENEFITS-IN-KIND RETURNS

SCHEDULE OF SERVICES

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

RESPONSIBILITIES AND SCOPE FOR BENEFITS-IN-KIND RETURN SERVICES
1. Recurring compliance work
  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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.
2. Excluded, ad hoc and advisory work
  1. 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.
3. Changes in the law, in practice or in public policy
  1. 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.
  2. 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.
4. Your responsibilities
  1. 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.
  2. 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.
  3. You are no less responsible for errors in unapproved returns, submitted on the basis of the information provided to and processed by us, than if you had confirmed your approval of the returns.
  4. 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 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 so they can be submitted on or before the filing deadline of 6 July after the end of the tax year.
  5. 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.
  6. You will forward to us any communications received from HMRC, in sufficient time to enable us to deal with them as may be necessary within the requisite time limits. Although HMRC has the authority to communicate with us when form 64-8 has been submitted, it is essential that you let us have copies of any correspondence received, because HMRC are not obliged to send us copies of communications issued to you and, in most cases, will not do so.
SCHEDULE 11 -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.

RESPONSIBILITIES AND SCOPE FOR VAT RETURN SERVICES
1. Initial registration
  1. 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
  2. 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.
2. Recurring compliance work
  1. We will prepare your MTD for VAT returns on a monthly/quarterly/annual basis.
  2. 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.
  3. 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.
  4. Where appropriate, we will include import VAT from any digital import certificates (postponed VAT accounting) and/or C79s we receive from you.
  5. Where appropriate, we will calculate the partial exemption annual adjustment.
  6. Where appropriate, we will calculate the annual Capital Goods Scheme adjustment.
  7. 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.
  8. We will advise you of any relaxations applicable in relation to the digital records of supplies made and received.
  9. We will submit the MTD for VAT return data online to HMRC after the data to be included therein has been approved by you
  10. We will agree with you any supplementary information to be submitted on a voluntary basis with the MTD for VAT returns prior to submission.
  11. Where you are invoice (accruals) accounting for income tax, we will perform an annual reconciliation of VAT outputs to turnover.
  12. 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.
3. Ad hoc and advisory services
  1. 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. providing you with advice on VAT Excise Duty Customs Duty Landfill Tax Insurance Premium Tax Aggregates Levy Climate Change Levy;
    10. work required to rectify the position where your software is incompatible with our software; and
    11. 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.
  2. 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.
  3. If specialist advice is required, we may need to seek this from, or refer you to, appropriate specialists.
4. Changes in the law, in practice or in public policy
  1. 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.
  2. 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.
5. Your responsibilities
  1. 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.
  2. Legal responsibility for approval of the return cannot be delegated to others. You agree to check the returns that we have prepared for you are correct and complete before approving them.
  3. You are no less responsible for errors in unapproved returns, submitted on the basis of the information provided to and processed by us, than if you had confirmed your approval of the returns.
  4. 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
  5. 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
  6. 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 10 days before submission to complete our work; and
    5. to inform us that you have made the tax payment based on your calculated return.
  7. 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.
  8. 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.
  9. 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.
  10. 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.
  11. If you provide digital or any other services to consumers in the EU, you are responsible for either registering for VAT in the Member State in which the supply takes place or registering for the OSS (non-Union scheme).
  12. If you import goods from third countries into the EU of a value not exceeding €150 (excluding certain goods) for sale to a non-taxable person in the EU (destination country), you can use the IOSS scheme. The IOSS can also be used for supplies from GB of low value goods to consumers in Northern Ireland.
  13. If you supply goods to non-taxable persons within the EU (eg France to Germany) then you will have to register in the Member State of destination (there is no de minimis threshold) or use the OSS Union scheme to declare the VAT due.
SCHEDULE 12 - TAX INVESTIGATIONS

SCHEDULE OF SERVICES

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

RESPONSIBILITIES AND SCOPE FOR TAX INVESTIGATION SERVICES
1. Investigation under section 9A Taxes Management Act 1970 by HMRC
  1. We will provide taxation advice to you in respect of a voluntary disclosure to HMRC.
  2. 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.
  3. We will negotiate with HMRC on any issue relating to taxation, interest and penalties with the aim of settling your United Kingdom taxation affairs. The outcome of some income tax disclosures may be related to or impact on claims to tax credits and universal credit. We will not address the tax credits and universal credit issues unless we explicitly agree to do so.
  4. 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.
  5. 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.
  6. 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).
  7. 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.
  8. 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).
2. Your responsibilities
  1. 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.
Schedule 13 - 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
  1. We will provide taxation advice to you in respect of a voluntary disclosure to HMRC.
  2. 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.
  3. We will negotiate with HMRC on any issue relating to taxation, interest and penalties with the aim of settling your United Kingdom taxation affairs. The outcome of some income tax disclosures may be related to or impact on claims to tax credits and universal credit. We will not address the tax credits and universal credit issues unless we explicitly agree to do so.
  4. 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 unbilled costs.
  5. 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.
  6. 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).
  7. 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.
  8. 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).
2. Your responsibilities
  1. 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.
Schedule 14 - SPECIALIST OR AD HOC TAXATION ADVISORY SERVICES

SCHEDULE OF SERVICES

This schedule should be read in conjunction with the engagement letter and the terms of business.
1. Compliance work
  1. We will provide ad hoc tax advisory services as requested by you from time to time.
  2. Our services may include telephone conversations, attendance at meetings and written advice, as and when requested by you.
  3. We will not provide any other tax services unless covered by a separate engagement letter or another schedule to this letter.
  4. If additional or specialist expertise is required, we may need to seek this from, or refer you to, a specialist.
2. Changes in the law, in practice or in public policy
  1. 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.
  2. 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.
3. Your responsibilities
  1. You agree to provide full information necessary for us to advise in relation to your affairs. We will rely on the information and documents being true, correct and complete and will not audit the information or those documents.
  2. If you require tax advice in relation to a proposed transaction, we recommend that you instruct us sufficiently in advance so that we have time to give properly considered advice before the transaction takes place.
  3. You authorise us to approach such third parties as may be appropriate, for information that we consider necessary to provide the advice.
  4. You will keep us informed of material changes in your circumstances that could affect the tax advisory services we are providing. If you are unsure whether the change is material, please let us know so that we can assess its significance.
  5. 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 your turnover exceeds the UK VAT registration threshold, and you wish us to assist you in notifying HMRC of your obligation to be VAT registered, we will be pleased to assist you in the VAT registration process. You should notify us of your instructions to assist in your 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 you exceeded the VAT registration threshold in force at that time. We will not be responsible if you fail to notify us in time and incur a late registration penalty as a result. The same applies for equivalent non-UK taxes.
  6. Where you are importing relevant goods into the EU to be supplied to non-taxable persons (final destination of the goods being within the EU), the IOSS can be used by both EU and non-EU established suppliers. If you are importing goods into the EU to be supplied to non-taxable persons but do not or cannot use the IOSS then you will probably have to VAT register in the Member State of importation.
  7. If you are making distance supplies of goods within the EU, eg France to Germany (B2C), you can use the Union One Stop Shop (OSS). The non-Union OSS can be used for any services where the place of the supply of the service is in the EU and the supplier is non-EU established (B2C again).
  8. There may be other circumstances where the Union or non-Union OSS can be used, eg domestic supplies of goods by deemed suppliers, but, broadly, If you are not within any of the above, you may need to VAT-register in the Member State in which you make the supply of the goods or services.
  9. You are responsible for employment taxes, pensions (including auto-enrolment) and the assessment of the employment status of your workers and of any contractors who are treated as deemed employees under the off-payroll working rules. 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.
  10. 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.
  11. 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, including the date and time of the call, and the name of the helpline operator(s).
SCHEDULE 15 - CLOUD-BASED SERVICES

SCHEDULE OF SERVICES

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

IT SECURITY REQUIREMENTS
1. Your responsibilities
  1. To support the delivery of cloud-based services, it is important to ensure that appropriate IT security measures are in place.
  2. 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.
  3. 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.
2. Our responsibilities
  1. 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.
3. CLOUD-BASED ACCOUNTING SOFTWARE
  
  Provider
  1. The accounting software that will be hosted in the cloud is QuickBooks Online or Xero.
  2. If you wish to stop this service you must give 28 days in accordance with the supplier's terms.
4. Our responsibilities
  1. We will send you an invoice per our agreed payment schedule for the services provided.
  2. When you stop the service, giving notice as per 15.3.2 above we will work with the supplier to obtain a backup of your data as at the end of the notice period.
  3. 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.
5. Excluded work
  1. 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.
6. Your responsibilities
  1. You shall pay the 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.
  2. You are responsible for the maintenance of your accounting records.

SCHEDULES

SCHEDULE 1 - PREPARATION OF STATUTORY FINANCIAL STATEMENTS IN COMPLIANCE WITH THE COMPANIES ACT 2006

SCHEDULE OF SERVICES

RESPONSIBILITIES AND SCOPE FOR FINANCIAL STATEMENTS PREPARATION SERVICES

Your responsibilities as directors/members

Our responsibilities as accountants

Form of the accountants' report.

SCHEDULE 2 - PREPARATION OF NON-STATUTORY FINANCIAL STATEMENTS IN COMPLIANCE WITH A FINANCIAL REPORTING FRAMEWORK

SCHEDULE OF SERVICES

RESPONSIBILITIES AND SCOPE FOR FINANCIAL STATEMENTS PREPARATION SERVICES

Your responsibility for the preparation of financial statements

Our responsibilities as accountants

Form of the accountants' report.

SCHEDULE 3 - PREPARATION AND MAINTENANCE OF ACCOUNTING RECORDS

SCHEDULE OF SERVICES

RESPONSIBILITIES AND SCOPE FOR ACCOUNTING SERVICES

Your responsibility for the provision of information

Preparation and maintenance of accounting records

Our responsibilities

Your responsibilities

SCHEDULE 4 - PERSONAL TAX - INDIVIDUALS, SOLE TRADERS AND COUPLES

SCHEDULE OF SERVICES

RESPONSIBILITY AND SCOPE FOR PERSONAL TAX SERVICES

Recurring compliance work

Excluded, ad hoc and advisory work

Changes in the law, in practice or in public policy

Your responsibilities

If applicable - You and your spouse/partner

SCHEDULE 5 - TRUSTS AND ESTATES TAX RETURNS

SCHEDULE OF SERVICES

RESPONSIBILITIES AND SCOPE FOR TRUST/ESTATE TAX RETURN SERVICES

Recurring compliance work

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

Excluded, ad hoc and advisory work

Changes in the law, in practice or in public policy

Your responsibilities

SCHEDULE 6 - PARTNERSHIP TAX RETURNS

SCHEDULE OF SERVICES

RESPONSIBILITIES AND SCOPE FOR PARTNERSHIP TAX RETURN SERVICES

Recurring compliance work

Excluded, ad hoc and advisory work

Changes in the law, in practice or in public policy

Your responsibilities

SCHEDULE 7 - LIMITED LIABILITY PARTNERSHIPS (LLP) TAX RETURN

SCHEDULE OF SERVICES

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

Recurring compliance work

Excluded, ad hoc and advisory work

Changes in the law, in practice or in public policy

Your responsibilities

SCHEDULE 8 - CORPORATION TAX

SCHEDULE OF SERVICES

RESPONSIBILITIES AND SCOPE FOR CORPORATION TAX SERVICES

Recurring compliance work

Excluded, ad hoc and advisory work

Changes in the law, in practice or in public policy

Your responsibilities

Personal service company

Groups and consortia

Your responsibilities

SCHEDULE 9A - PAYROLL SERVICES (NO OFF PAYROLL WORKING)

SCHEDULE OF SERVICES

RESPONSIBILITIES AND SCOPE FOR PAYROLL SERVICES

Recurring compliance work

Ancillary payroll services

Excluded, ad hoc and advisory work

Changes in the law, in practice or in public policy

Your responsibilities

SCHEDULE 9B - PAYROLL SERVICES (INCLUDES OFF PAYROLL WORKING)

SCHEDULE OF SERVICES

RESPONSIBILITIES AND SCOPE FOR PAYROLL SERVICES

Recurring compliance work

Ancillary payroll services

Excluded, ad hoc and advisory work

Changes in the law, in practice or in public policy

Your responsibilities

SCHEDULE 10 - BENEFITS-IN-KIND RETURNS

SCHEDULE OF SERVICES

RESPONSIBILITIES AND SCOPE FOR BENEFITS-IN-KIND RETURN SERVICES

Recurring compliance work