Engagement Terms and Conditions

Welcome to Aston Shaw’s Terms & Conditions, this document serves as a comprehensive guide outlining the specific terms, conditions and obligations that apply to our valued clients and customers. These Terms & Conditions are designed to provide you with a clear understanding of the rights, responsibilities and procedures.

We highly encourage you to read this document carefully to ensure a mutual understanding and successful collaboration between Aston Shaw and yourself. By engaging in our services, you agree to be bound by these terms, which form a crucial part of our commitment to transparency and delivering exceptional services.

Cash Flow Forecasts

Detailed 12 month Forecast and Budget broken down month by month.

This includes:

Cash Flow forecast for the period.
Profit and loss forecast for the period.
Balance sheet forecast for the period.

This will be in a format suitable for presentation to your stakeholders or bank manager.

Company Secretarial Services

Review of your company’s current share structure including recommendations for restructuring where necessary. Creation and allocation of new company share capital, including the provision and completion of all relevant forms as well as the necessary submissions to Companies House confirming any changes.

Auto Enrolment (Initial set up – One-off Fee)

This set up service includes:

Set up your pension provider chosen by Client
Ensure your declaration of compliance is completed and submitted to the pension regulator
Ensure staff receive the correct correspondence
Set up the payroll system ready for the pension payments to start

Payroll, RTI submission

Calculation of net pay for employees & PAYE/NIC to be paid over to HM Revenue & Customs, inclusive of employee payslips and pay summaries. Advice and calculations when dealing with statutory payments such as Auto-Enrolment, sick pay & maternity pay. Filing of all the relevant statutory forms such as P45’s as required. Prepare RTI return with all necessary statutory information and submit to HM Revenue & Customs by deadline dates.

Number of employees: Monthly/Weekly:

Accounting Software Subscription

Monthly software subscription provides you with access to an online accounting package.

Tax Planning & Consultancy

Dependent upon your accounting requirements, as discussed, we will provide advice surrounding your specific circumstances (3 Hour Period)

R&D Tax Credits Claim

To assist you in the claim preparation and submission of a Research & Development Tax credits claim. This includes:

Assess the company’s eligibility for tax relief under the UK R&D Tax Credit Scheme
Provision of, and assistance with completion of the R&D questionnaire, including identification of allowable R&D activity.
Collection of cost data and identification of relevant claimable costs.
Calculation of enhanced R&D allowances and submission of tax credit claim to HMRC with the Corporation Tax Computation.

Contingent fees – 20% of the tax saving/tax rebate agreed with HMRC (minimum fee of £1500 on a successful claim). Tax rebate paid to Aston Shaw client account and deduction of any outstanding fees.

Net balance paid to client within 30 days of receipt of R&D rebate from HMRC.

Accounting Software Setup and Training

Software setup and training of software package. This includes:

Set up of new account in Software
Full software training for 2 hours with your team optionally recorded

SRA: (Periods straddling before 25 November 2019)

Accountants Report complying with SRA regulations to be provided by a qualified third-party provider. This includes:

Preparation of the Accountants Report Form
Preparation of the Reporting Accountants Checklist
Submission to the SRA if required.

CILEx Accounts Rules

Accountants Report complying with Cilex regulations to be provided. This includes:
Preparation of the Accountants Report Form
Preparation of the Reporting Accountants Checklist Submission to the CILEx

CLC Rules Compliance

Accountants Report complying with CLC regulations to be provided. This includes:

Preparation of the Accountants Report Form
Preparation of the Reporting Accountants Checklist
Submission to the CLC

Trust & Estate Tax Returns

Preparation and submission to HMRC of Trust & Estate Tax Return – Self-assessment

To assist you to file the Trust & Estate Tax return with HM Revenue & Customs. This includes:

Obtaining the required information
Preparing the Trust’s tax position, calculating the income tax and capital gains tax liabilities of the Trust/Estate
Obtaining approval from the Nominated Trustee or other Nominated Person and signature
Online submission on Tax Return to HM Revenue & Customs
Advice during the year of tax liabilities and payment dates

HM Revenue & Customs (HMRC) Tax Investigations

Our experienced team of qualified tax advisors will act on your behalf to resolve all manner of HMRC tax investigation issues.

Due Diligence report

To assist you preparing a detailed prospective purchase review providing you a Due Diligence report.

Business Rates Review

We will review your Business rates and make an appeal to the relevant council on your behalf.

Sole Trader Accounts

Preparation of your annual sole trader accounts from the information extracted from your accounting software or books and records provided. Review of the performance and tax efficiency of your business. Bound accounts provided for your records.

Statutory Audit of Company

Professional services rendered in the preparation of the audit of the financial statements for the year ending DD/MM/YYYY.

To include:

Audit planning and risk assessment to be carried out at our office from records supplied by yourself.
Conducting all tests of control and substantive testing.
Review of your Limited Company’s accounts (includes consolidated accounts if required) from the records provided to us and as a result of the audit field testing.
Review of the Tax position of the company to ensure compliance with HMRC regulations.

Accounts Review

We will review your financial statements and provide you with a report and recommendations together with any relevant schedules on the basis of information provided by you.

Limited Company Accounts

Preparation of your annual business accounts from the information extracted from your accounting software or books and records provided. Review of the performance and tax efficiency of your business. Bound accounts provided for your records.

Partnership Accounts

Preparation of your annual partnership accounts from the information extracted from your accounting software or books and records provided. Review of the performance and tax efficiency of your business. Bound accounts provided for your records.

Assurance Reports

To assist you with the assurance report of the financial statements which gives confidence in the figures to suppliers, finance lenders and clients.

Monthly Bookkeeping

Bookkeeping to a time frame of your choice in market-leading Making Tax Digital (MTD) compliant cloud accounting software. Sales & expenditure data entry, live bank transaction feeds for reconciliation, completion and filing of VAT returns and easily accessible reports for business management.

Self-assessment Tax Return

Preparation of your tax return from the information provided to us. Review and notification of your tax position. Online submission to HM Revenue & Customs by 31st January deadline on receipt of your approval.

Partnership Tax Return

Preparation and submission to HMRC of Partnership Tax Return – Self-assessment

To assist you to file the Partnership Tax return with HM Revenue & Customs. This includes:

Discussion with you to identify sources of income for partners
Obtaining information from partners and preparing tax returns
Preparing partnership tax return from final accounts
Forwarding tax returns to you for your approval
Online submission on Tax Return to HM Revenue & Customs
Advice during the year of tax liabilities and payment dates

CIS Returns

CIS monthly reminders sent out. Preparation and online submission of the monthly return including calculation and notification of any CIS tax payable. Subcontractor payment & deduction statement provided.

Company Formation (One-off Fee)

To form a limited company registered at Companies House in the company name you provide. To ensure a share structure appropriate to the company with the inclusion of Alphabet Shares.

Confirmation Statement & PSC Register

Preparation and upkeep of statutory PSC Register. Annual filing of Confirmation Statement to Companies House with all necessary information inclusive of PSC and payment of Companies House annual charge.

Tax Investigation Fee Protection

Tax Fee Protection Service, which cover fees up to £100,000.00 charged by your accountant and associated specialist in defence of an enquiry from HM Revenue & Customs.

As a subscriber, you also have telephone access to consultants who are available to assist you with practical advice on any employment, health & safety or general legal issues that your business may encounter. The service is available weekdays between 8:30am to 5.30pm.

IR35 Contract Review

Once we’ve received the required documentation, we will thoroughly review your contract and working practices before providing you with the following:

Our professional opinion as to whether you ‘pass’ or ‘fail’
Concise comments on each relevant clause
An easy to follow, actionable list of required changes
Specialist advice from trained IR35 professionals

Quarterly Monthly Management Accounts & Financial Reporting

We will actively use your cloud accounting software to report on the latest management figures and to analyse & discuss business performance. We will work with you to help monitor financial performance, set budgets & targets to achieve your business objectives.

Benefits-in-kind (P11D) Returns

Benefits-in-kind returns (forms P11D and P9D and declaration P11D) and payment of Class 1A National Insurance Contributions.

Self-Assessment Registration (One-off Fee)

For registration of your individual self-assessment record, for corresponding with HMRC about predicted time scales of processing and ensuring receipt of your unique tax reference.

Director RTI (Payroll)

Prepare RTI Return, including Director’s salary and submit to HM Revenue & Customs by deadline dates.

Independent Examination Report (Incorporated Charity)

To prepare the statutory accounts from the records supplied.

To examine the books and records provided by yourselves in line with UK Generally Accepted Accounting Practices and the Charities Act 2011.

To report back on our findings concerning possible system weaknesses, accounting irregularities or non-compliance with the statutory requirements.

Business Valuation

To perform a desktop valuation of your business by examining the value of your balance sheet and adjusting for revalued assets and liabilities.

MTD Registration (One-off Fee)

To register your business to be compliant with HMRC’s Making Tax Digital (MTD) regulations. Includes the authorisation of your chosen cloud accounting software.

VAT Registration (One-off Fee)

To register your business for VAT, enabling VAT Returns to be successfully submitted to HMRC.

Independent Examination Report (Unincorporated Charity)

To prepare the statutory accounts from the records supplied.

To examine the books and records provided by yourselves in line with UK Generally Accepted Accounting Practices and the Charities Act 2011.

To report back on our findings concerning possible system weaknesses, accounting irregularities or non-compliance with the statutory requirements.

Rental Accounts

Preparation of your annual rental accounts from the information extracted from your accounting software or books and records provided. Review of the performance and tax efficiency of your rental properties. Bound accounts provided for your records.

Non-resident Capital Gains Tax return

Preparation of your non-resident capital gains tax return from the information provided to us. Review and notification of your tax position. Submission to HM Revenue & Customs by the deadline on receipt of your approval.

HR Consultancy & Advice

To review relevant contracts & documentation to ensure you are compliant and provide you with HR advice and support relating to any matters previously discussed.

Furloughed Employees HMRC Reimbursement Claim

To submit a reimbursement claim through HMRC’s portal for your furloughed employees.

Capital Gains Tax Return

Preparation of your capital gains tax return from the information provided to us. Review and notification of your tax position. Submission to HM Revenue & Customs by the deadline on receipt of your approval.

CIS Refund Claim

Claim for refund of CIS deductions

PAYE Registration (One-off Fee)

To register as an employer with HM Revenue and Customs (HMRC) and set up pension scheme with NEST.

Upon acceptance & payment of this service, we will require you to provide the necessary payroll information within 3 months. We will request this information shortly via email or telephone.

Please be aware, failure to provide this information may result in further charges to complete the required service.

Bookkeeping & Financial Reporting

For professional services rendered in connection with the preparation of management accounts and bookkeeping.

Charity Accounts

Preparation of your annual charity accounts from the information extracted from your accounting software or books and records provided. Review of the performance and tax efficiency of your charity. Bound accounts provided for your records.

Gift Aid Claim

To assist you with the claiming of Gift Aid.

LLP Accounts

Dormant Company Accounts

Preparation of your annual dormant accounts.

SDLT Refund Extension Letter

Aston Shaw will write to HM Revenue & Customs requesting an extension on Stamp Duty Land Tax.

Statutory Audit (Incorporated Charity)

Professional services rendered in the preparation of the audit of the financial statements for the year ending DD/MM/YYYY.

To include:

Audit planning and risk assessment to be carried out at our office from records supplied by yourself.
Conducting all tests of control and substantive testing.
Preparation of your Charitable Company’s accounts (includes consolidated accounts if required) from the records provided to us and as a result of the audit field testing.
Review of the Tax position of the company to ensure compliance with HMRC regulations.

Declaration of Trust

Declaration of Trust plus Form 17 in relation to the split of rental profits.

Partnership Registration (One-off Fee)

For registration of your Partnership with HMRC and for corresponding with HMRC about predicted time scales of processing and ensuring receipt of your unique tax reference.

CIS Registration (One-off Fee)

To register you for the Construction Industry Scheme (CIS).

Upon acceptance & payment of this service, we will require you to provide the necessary payroll information within 3 months. We will request this information shortly via email or telephone.

Please be aware, failure to provide this information may result in further charges to complete the required service.

Trust Accounts

Preparation of your annual trust accounts from the information extracted from your accounting software or books and records provided. Review of the performance and tax efficiency of your business. Bound accounts provided for your records.

Statutory Audit of Unincorporated Charity

Professional services rendered in the preparation of the audit of the financial statements for the year ending DD/MM/YYYY.

To include:

Audit planning and risk assessment to be carried out at our office from records supplied by yourself.
Conducting all tests of control and substantive testing.
Preparation of your Charity’s accounts (includes consolidated accounts if required) from the records provided to us and as a result of the audit field testing.
Review of the Tax position of the company to ensure compliance with HMRC regulations.

VAT Returns – Annual

Reminder sent out when VAT Return becomes due. Preparation of VAT Returns from information received. Completion of VAT Return online & EC sales list (if applicable) to HMRC by filing deadline using MTD compliant software. Notification of VAT payment to be made or refund to be received.

VAT Returns – Quarterly

VAT Returns – Monthly

DIY VAT Claim

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Machine Game Duty (MGD) Returns

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Income & Expenditure Summary

Preparation of your self assessment tax return from the information extracted from your accounting software or books and records provided. Review of the performance and tax efficiency of your business. Income and Expenditure summary provided for your records.

Deceased Person’s Estate – Tax Return

Mortgage Certificates

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PAYE De-Registration (One-off Fee)

To de-register as an employer with HM Revenue and Customs (HMRC).

VAT Planning & Consultancy

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VAT De-Registration (One-off Fee)

To de-register your business for VAT, enabling VAT Returns to be successfully submitted to HMRC.

Other services

Independent Examination of a Charitable Incorporated Organisation (CIO)

To prepare the statutory accounts from the records supplied.

To examine the books and records provided by yourselves in line with UK Generally Accepted Accounting Practices and the Charities Act 2011.

To report back on our findings concerning possible system weaknesses, accounting irregularities or non-compliance with the statutory requirements.

Safeagent Client Accounting Standards – Accountants Report

Compile an accountants report confirming that you have kept adequate records throughout the period of all transactions, relating to clients’ money received and handled by the firm and of your compliance with Safeagent Client Accounting Standards.

Business Consultancy & Advice

Provision of Business Consultancy and Advisory services as requested and in discussion with your Portfolio Manager.

Fees will be aligned with the services provided at an agreed rate in advance of minimum of £250. Should works involve third parties an additional 1% of any transaction will apply.

Inheritance Tax Return

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Employment Related Security Return

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Evalu-8 Subscription

Monthly software subscription provides you with access to an online HR package.

£2.50 Per Employee added to system Community Interest Company Accounts

Preparation of your annual business accounts from the information extracted from your accounting software or books and records provided.

Payroll, RTI Submission

Calculation of net pay for employees & PAYE/NIC to be paid over to HM Revenue & Customs, inclusive of employee payslips and pay summaries. Advice and calculations when dealing with statutory payments such as Auto-Enrolment, sick pay & maternity pay. Filing of all the relevant statutory forms such as P45’s & P46’s as required. Prepare RTI return with all necessary statutory information and submit to HM Revenue & Customs by deadline dates.

Fee yet to be confirmed.

Out of Scope services

These include:

Mortgage reference letters
Management Reports..
Adhoc bookkeeping

PAYE Registration – Director Only

To register as an employer with HM Revenue and Customs (HMRC) to enable us to file your directors salary.

Upon acceptance & payment of this service, we will require you to provide the necessary payroll information within 3 months. We will request this information shortly via email or telephone.

Please be aware, failure to provide this information may result in further charges to complete the required service.

Report of Factual Findings on Service Charge Accounts.

Professional services rendered in the preparation of our factual findings to you on the service charge accounts for the year ending 31st December 21.

In summary, we shall:

Check whether the figures in the service charge accounts have been extracted correctly from the accounting records maintained by you;
Check that a sample of entries in the accounting records are supported by receipts, other documentation or evidence that we have inspected;
Check that the balance of service charge monies for this property, shown in the service charge accounts, agrees or reconciles to the bank statement for the account(s) in which the funds are held.

SRA: Periods commencing on or after 25 November 2019

The purpose of this schedule to our engagement letter is to set out the basis on which we are to report on your compliance with the Solicitors Regulation Authority (SRA) Accounts Rules for the period from 25 November 2019 and section 34 of the Solicitors Act 1974.

Capital Allowances

Identifying capital expenditure on the purchase of commercial property. Tax relief on identiﬁed capital expenditure accounted for on CT600s for previous and future years. Reports outlining ﬁndings provided for your records.

Contingent fees – 4% of the identiﬁed capital expenditure.

Propertymark Accounting Rules Review

Accountant’s Report in accordance with the Propertymark Rules.

Monthly Management Accounts & Financial Reporting

One-off Management Accounts & Financial Reporting

Audit of Other Society

Professional services rendered in the preparation of the audit of the financial statements for the year ending DD/MM/YYYY.

To include:

Audit planning and risk assessment to be carried out at our office from records supplied by yourself.
Conducting all tests of control and substantive testing.
Preparation of your Societies accounts (includes consolidated accounts if required) from the records provided to us and as a result of the audit field testing.

Access to a company from April 2022

Back dating shares transferred to yourself from April 2022 within a stock company held by Aston Shaw, to gain access to tax saving benefits from the start of a tax year.

Payroll Registration – Transfer Service

Setting up your existing payroll from the information provided by yourselves or previous advisors.

Upon acceptance & payment of this service, we will require you to provide the necessary payroll information within 3 months. We will request this information shortly via email or telephone.

Please be aware, failure to provide this information may result in further charges to complete the required service.

PAYE/CIS Registration

To register you for the Construction Industry Scheme (CIS) or as an employer with HM Revenue and Customs (HMRC).

Upon acceptance & payment of this service, we will require you to provide the necessary payroll information within 3 months. We will request this information shortly via email or telephone.

Please be aware, failure to provide this information may result in further charges to complete the required service.

Finance and Lending services

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Quarterly Bookkeeping

Registered office services

Registered office fee and to include postal service for mail to be received and forwarded on.

Service Terms

Cash Flow Forecasts

CASH FLOW AND PROFIT FORECAST – TERMS & CONDITIONS

The purpose of the cash flow and profit forecast is to assist you in monitoring the ongoing trading position of your business. This schedule should be read in conjunction with the engagement letter and the standard terms and conditions.

Our Responsibilities – What we agree to do and be responsible for:

To prepare from the information and explanations provided by you, cash-flow and profit forecasts for the period requested.

We will not be carrying out any audit work as part of this assignment and accordingly, we will not express an opinion on the forecasts.

To ensure that anyone reading the forecasts is aware that we have not carried out an audit, we will attach to any report issued a paragraph stating this fact.

To prepare a report with the forecasts stating that they have been drawn up in accordance with the assumptions contained in the forecasts and they are correctly cast.

We will work with you to draw up any estimates or assumptions that are necessary, but these will be based upon information provided by you. Therefore you will remain responsible for any estimates and assumptions.

Since the forecast relates to expected future events, the actual results will almost inevitably differ from the forecast. Those differences may be significant. We will take due care to translate the information and explanations we are provided with into a meaningful forecast based on your assumptions. However, we cannot accept responsibility for any loss occasioned to any person acting or refraining from action as a result of any material or statements included in, or omitted from, the forecast.

Your Responsibilities – What you agree to do and be responsible for

You are responsible for providing us with the information and explanations necessary for the preparation of cash-flow and profit forecasts.

You are responsible for checking and agreeing on the validity of the assumptions that are used in the preparation of the statements.

Our report is prepared solely for your confidential use and solely for the purpose set our above. You may not rely upon it for any other purpose whatsoever.

Our report must not be made available, copied or recited to any other party, unless you have obtained prior written approval from us.

The forecasts relate to future events and consequently actual results are likely to differ from the forecasts. We cannot accept any responsibility for any loss or damage occasioned to any person acting or refraining from acting as a result of any material or report contained in the forecasts.

Other considerations

Limitation of liabilities and Changes in the law

Since the forecast relates to expected future events, the actual results will almost inevitably differ from the forecast. Those differences may be significant. We will take due care to translate the information and explanations we are provided with into a meaningful forecast based on your assumptions. However, we cannot accept responsibility for any loss occasioned to any person acting or refraining from action as a result of any material or statements included in, or omitted from, the forecast.

We would like to emphasise that we cannot undertake to discover any shortcomings in your systems or irregularities on the part of your employees. However, we will advise you if we come across anything of this nature in the course of preparing the forecast.

Company Secretarial Services

COMPANY SECRETARIAL SERVICE – TERMS & CONDITIONS

The purpose of the work is to assist you with all company secretarial work.

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

Our responsibilities – What we agree to do and be responsible for:

We will prepare from the information and explanations provided by you, your returns together with any supporting schedules. We will not audit or otherwise check the underlying records.

We will send you the returns and any supporting schedules for you to approve after your making the records available to us.

We will complete other returns reflecting changes in directors, shareholders etc as requested.

We will maintain the statutory records and minutes on behalf of the company secretary from the information supplied.

Your responsibilities – What you agree to do and be responsible for:

You are responsible for making correct returns by the due date.

To enable us to carry out our work you agree:

To provide full information necessary for dealing with your affairs – we will rely on the information and documents being true, correct and complete and will not audit the information or those documents.

That we can approach such third parties as may be appropriate for information that we consider necessary to deal with your affairs.

To provide us with information in sufficient time for your returns to be completed and submitted.

To provide us within seven days of signing, certified copies of directors and shareholder notices, minutes or resolutions.

The advice that we give can only be as good as the information on which it is based. In so far as that information is provided by you, or by third parties with your permission, your responsibility arises as soon as possible if any circumstances or facts alter, as any alteration may have a significant impact on the advice given. If the circumstances change therefore or your needs alter, advise us of the alteration as soon as possible in writing.

Auto Enrolment (Initial set up – One-off Fee)

Payroll services – Auto Enrolment (Initial set up)

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

Our Responsibilities – What we agree to do and be responsible for:

Using the data supplied by you we will identify those individuals who would qualify as a ‘worker’ for auto enrolment purposes and will produce a list of them. We will send you this list together with the definition of a ‘worker’ and, if required and requested, Pension Regulator guidance on how to assess workers’ earnings and if the worker is under a UK contract. You should review this definition for any individual not included on the payroll records and inform us of any changes.

We will help you to establish which category each worker falls into, whether entitled worker, eligible jobholder or non- eligible jobholder.

If required, we will prepare and send to you a notice to send to each non-eligible jobholder that sets out certain information about opting in to an automatic enrolment scheme and what this means for them. They do not need to be automatically enrolled but have the right to opt in. If the non-eligible jobholder chooses to opt in, you will enrol them onto the scheme on receipt of an opt-in notice. We will assist you in this process [delete if not required]. We will send information to the pension scheme about those non-eligible jobholders who choose to opt in.

Your Responsibilities – What you agree to do and be responsible for

You are responsible for establishing the staging date applicable for your payroll. You will advise us if you bring forward, postpone or otherwise delay any aspect of your staging. We will assist you in establishing the staging date that applies. This is the date that you, as an employer, must start to auto enrol your workers.

You will choose a pension scheme that meets the automatic enrolment qualifying criteria and we recommend that you take appropriate independent advice. You can:

Choose the existing scheme used by the business if it is an eligible scheme for auto enrolment
Go through the National Employment Savings Trust (NEST); or
Seek the advice of a financial adviser on a suitable pension scheme.

You are responsible for providing the required statutory information to your workers.

You will enrol all eligible jobholders into an eligible pension scheme on the appropriate date. We will assist you in this process. If required, we will prepare and send to you for distribution a notice for each eligible jobholder telling them that they have been or will be enrolled, and setting out what that means for them, and also detailing their right to opt out (and to opt back in again). We will send information about the eligible jobholders to the pension scheme. (For eligible jobholders who are already active members of a qualifying scheme, we will prepare a notice for you to send them giving them information about the scheme. This is the only action required for such members).

Payroll, RTI submission Recurring compliance work

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) deductions

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/Paternity Pay

5 Calculating other statutory and non statutory deductions

We will prepare and send to you the following documents for each payroll period at or before the time of payment:

1 Payroll summary report showing the reconciliation from gross to net for each employee and all relevant payroll totals

2 A payslip for each employee unless not required

3 A P45 for each leaver

4 A report showing your PAYE and NIC liability and due date for payment

We will prepare and send to you the following documents by the statutory due dates at the end of the payroll year:

1 Form P60 for each employee on the payroll at the year end

2 P60 for all staff who were on the payroll during the payroll year

We will submit your final Full Payment Submission (FPS) for the tax year.

To complete all necessary HMRC RTI submissions on your behalf following you meeting ‘Your Responsibilities’ (Aston Shaw cannot be held responsible for HMRC actions where you have failed to comply with ‘Your Responsibilities’)

Ad hoc and advisory work

We will also provide such other taxation ad hoc and advisory services as may be agreed from time to time. These may be the subject of a separate engagement letter, at our option. Where appropriate we will discuss and agree an additional fee for such work when it is commissioned by you. Examples of such work include:

1 dealing with any enquiry opened into the payroll returns by HMRC

2 preparing any amended returns which may be required and corresponding with HMRC as necessary

3 Where specialist advice is required on occasions we may need to seek this from or refer you to appropriate specialists.

Changes in the law

We will not accept responsibility if you act on advice previously given by us without first confirming with us that the advice is still valid in light of any change in the law or your circumstances.

We will accept no liability for losses arising from changes in the law or the interpretation thereof that occur after the date on which the advice is given.

Your responsibilities

You are legally responsible for:

1 ensuring that your payroll returns are correct and complete;

2 filing any returns by the due date; and

3 making payment of tax and NIC on time.

Failure to do this may lead to automatic penalties, surcharges and/or interest.

Signatories to returns cannot delegate this legal responsibility to others. You agree to check that returns we have prepared for you are correct and complete before you approve and sign them.

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 payroll 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 agree with us the names of the persons authorised by you to notify us of changes in employees and in rates of pay. We will process the changes only if notified by that/those individuals;

4 to advise us in writing of changes of payroll pay dates;

5 to notify us at least 15 working days prior to the payroll 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 details of their remuneration packages all leavers and details of termination arrangements
All remuneration changes
All pension scheme changes
Any changes to the employees’ bank accounts;

6 You will keep us informed of material changes in circumstances that could affect the payroll of the business. If you are unsure whether the change is material or not please let us know so that we can assess the significance or otherwise; and

7 To authorise us to approach such third parties as may be appropriate for information that we consider necessary to deal with your affairs.

If the information required to complete the payroll services set out above is received less than 5 days before the payroll date we will still endeavour to process the payroll to meet the agreed payroll date but we will not be liable for any costs or other losses arising if the payroll is late in these circumstances. We may charge an additional fee of for work carried out in a shorter time period.

Accounting Software Subscription

CLOUD ACCOUNTING SOFTWARE – TERMS & CONDITIONS

Software fees are payable on a monthly basis in accordance with our standard payment terms

Use of software may be suspended or withdrawn if payments are late or not made.

Tax Planning & Consultancy

Dependent upon your accounting requirements, as discussed, we will provide advice surrounding your specific circumstances.

Our Service to you

We will undertake the above assignment and provide you with a report and recommendations together with any relevant schedules on the basis of information provided by you.

We will approach third parties as appropriate for information as directed and authorised by you only.

We will provide you with calculations of the estimated tax effect of any strategy recommended by us.

We will, if appropriate, liaise with any third party to assist in carrying out any process to implement any strategy recommended by us.

We will prepare any claims or elections relevant to any proposed strategy and forward them as appropriate for signature and thereafter submit them to H M Revenue and Customs as appropriate.

Should any strategy recommended and undertaken result in payment of taxes we will advise you of the due dates of payment and the consequences of non payment of those taxes.

Your responsibilities

To enable us to carry out our work, you agree to make full disclosure of all income, charges, assets and liabilities where- so-ever situated in the world and full information necessary to undertake the assignment.

To respond quickly and fully to our requests for information and to other communications from us.

We will provide our professional services outlined in this letter with reasonable care and skill. However, we will not be responsible for any losses, penalties, surcharges interest or additional tax liabilities arising from the supply by you or others of incorrect information, or your or others’ failure to supply any appropriate information or your failure to act on our advice or respond promptly to communications from us.

Communications with third parties

You agree that we can approach third parties as appropriate for information that we consider necessary to deal with the assignment.

R&D Tax Credits Claim

SCHEDULE OF PROFESSIONAL SERVICES: R&D Tax Credits Claim

These engagement terms cover the entirety of the projects life.

Our responsibility to you

We have set out the agreed scope and objectives of your instructions within this letter of engagement. Any subsequent changes will be discussed with you and where appropriate a new letter of engagement will be agreed. We shall proceed on this basis of the instructions we have received from you and will rely on you to tell us as soon as possible if anything occurs which renders any information previously given to us as incorrect or inaccurate. We shall not be responsible for any failure to advise or comment on any matter that falls outside the specific scope of your instructions. We cannot accept any responsibility for any event, loss or situation unless it is one against which it is the expressed purpose of these instructions to provide protection.

Your responsibility to us

The application that we make can only be as good as the information on which it is based. In so far as that information is provided by you, or by third parties with your permission, your responsibility arises if any circumstances or facts alter, as any alteration may have a significant impact on the advice given. If the circumstances change or your needs alter advise us of the alteration as soon as possible in writing.

Our services to you

You have appointed us to prepare and submit a claim for Research and Development Tax Credits. In making this application, we will use our knowledge of the business. However, the application will rely on the information that you provide us with, which we may ask you to confirm to us in writing. We therefore accept no responsibility for problems arising as a result of your actions regarding the application.

The application will be based on information gained from you, and we accept no responsibility for any losses arising out of implementing the application. Further, the application requires us to rely substantially on your representations. Therefore we can accept no responsibility for any losses resulting from issues not covered in the information you supply.

Responsibilities

It is your responsibility to safeguard the assets of the business and for taking reasonable steps for the prevention and detection of fraud and other irregularities with an appropriate system of internal controls.

You are responsible for making available to us, as and when required, the business accounting records and all other relevant records and related information, including minutes of management and shareholders’ meetings, for the purpose of this engagement.

Use of report

Our application will be provided solely for the use for yourself and HM Revenue & Customs. Copies of the application should not be made available to other parties without our prior written consent.

Fees

Our fees are computed on a contingent basis at 15% + VAT of the tax saving/tax rebate (whichever is larger) as a result of submitting the claim. On successful completion of a claim the receipt from HMRC will be deposited in the Aston Shaw client account and that we will deduct our fees and pay the net balance to yourself within 30 days of receipt of monies.

Further, you authorise Aston Shaw to deduct outstanding fees owing for other services for which we are engaged from the receipt from HMRC.

Agreement of terms

This letter supersedes any previous engagement letter for the submission of Research & Development Tax Credit claims. Once it has been agreed, this letter will remain effective until it is replaced.

We may vary or terminate our authority to act on your behalf at any time without notice or penalty.

These terms should be read in conjunction with the firm’s standard terms and conditions.

Accounting Software Setup and Training

SOFTWARE SETUP AND TRAINING – TERMS & CONDITIONS

Full software training will be supplied. The training time is limited to 2 hours training, remote support and advice unless otherwise agreed in written correspondence.

If data transfer or integration with other software packages is required, please request this in the comments box and an updated proposal will be issued.

SRA: (Periods straddling before 25 November 2019)

The purpose of this schedule to our engagement letter is to set out the basis on which we are to report on your compliance with the Solicitors Regulation Authority (SRA) Accounts Rules 2011 for the period up to 24 November 2019, the Solicitors Regulation Authority (SRA) Accounts Rules for the period from 25 November 2019 and section 34 of the Solicitors Act 1974.

1. Your responsibilities

As solicitors you are responsible for ensuring that for the period up to 24 November 2019 the firm maintains the accounting records required by the SRA Accounts Rules 2011 and for the period from 25 November 2019 the firm maintains the accounting records required by the SRA Accounts Rules. In addition, you are responsible for ensuring that all dealings in client money are dealt with in accordance with those rules.
In accordance with the section 34 of the Solicitors Act 1974 and section 5, schedule 2 of the Administration of Justice Act 1985 we understand that you have waived your right to confidentiality and that we should report directly to the SRA in certain circumstances. We understand that you will confirm these matters in your reply to this letter.

2. Our responsibilities

1 The SRA Accounts Rules 2011 require us to report to you each year whether in our opinion you have complied with rules 1, 7, 13, 14, 17, 18, 20, 21, 27 and 29 and also rules 8, 9, 10, 15, 16 and 19 where applicable. The SRA Accounts Rules effective from 25 November 2019 require us to report to you each year whether in our opinion you have complied with rules 2 to 6, 8 to 10 and 13.

2 We will qualify our report, where in our professional judgement, there is a significant breach and / or significant weaknesses in the firm’s systems and controls which put client money at risk. We will provide details of the significant breach and/or significant weaknesses in firm’s systems and controls which put client money at risk to the SRA in their prescribed form. This will include sufficient detail to allow the SRA to understand our judgement.

3 To provide our report we shall undertake whatever tests and examinations of your records we consider appropriate. Our work will take into account the SRA’s Guidance to Reporting Accountants and firms on planning and completion of the annual Accountant’s Reports, under Rule 32A of the SRA Accounts Rules 2011 for the period up to 24 November 2019 and the SRA’s Guidance: Planning for and completing an accountant’s report for the period from 25 November 2019.

We do not undertake specific work to identify limitations in your systems or any irregularities on the part of your employees, beyond the work required to give the confirmations mandated on the AR1. However, we [will/may] advise you of limitations which we may discover during the course of our work.

4 Our report will be in the standard form prescribed by the SRA. If the report is qualified it is your responsibility to submit it to the SRA within six months of your accounting period end. However, if instructed by you, we will submit the report on your behalf.

CILEx Accounts Rules

The purpose of this schedule to our engagement letter is to set out the basis on which we are to report on your compliance with the Chartered Institute of Legal Executives (CILEx) Accounts Rules.

1 CILEx Accounts Rules

1 As legal executives you are responsible for ensuring that the firm maintains the accounting records required by the CILEx. In addition, you are responsible for ensuring that all dealings in client money are dealt with in accordance with those rules.

2 The CILEx require us to report to you each year whether in our opinion you have complied with the rules.

We are required to report material breaches of those rules and / or significant weaknesses in the firm’s systems and controls for compliance with the Accounts Rules.

3 To provide our report we shall undertake whatever tests and examinations of your records we

consider appropriate. Our work will take into account the CILEx’s Guidance to Reporting Accountants and firms on planning and completion of the annual Accountant’s Reports, under Rule 13 of the

CILEx Accounts Rules

4 Our report will be the standard form required by the CILEx. If the report is qualified it is your responsibility to submit it to the CILEx within six months of your accounting period end. However, if instructed by you, we will submit the report on your behalf.

5 In accordance with the CILEx Accounts Rules we understand that you have waived your right to confidentiality and that we should report directly to the CILEx in certain circumstances. We understand that you will confirm these matters in your reply to this letter.

CLC Rules Compliance

The purpose of this schedule to our engagement letter is to set out the basis on which we are to report on your compliance with CLC code of conduct.

1 The Code of Conduct was made in accordance with s.20 of the Administration of Justice Act 1985; s.53 of the Courts and Legal Services Act 1990; and s.83 of the legal Services Act 2007.

1 As conveyors and solicitors, you are responsible for ensuring that the firm maintains the accounting records required by the CLC Code of Conduct. In addition, you are responsible for ensuring that all dealings in client money are dealt with in accordance with those rules.

2 The CLC Code of Conduct require us to report to you each year whether in our opinion you have complied with the rules where applicable.

3 To provide our report we shall undertake whatever tests and examinations of your records we consider appropriate. We are required to report material breaches of those rules and / or significant weaknesses in the firm’s systems and controls for compliance with the Rules.

4 Our report will be the standard form required to express an audit opinion. It is your responsibility to submit it to the CLC within six months of your accounting period end. However, if instructed by you, we will submit the report on your behalf.

5 In accordance with the CLC Code of Conduct we understand that you have waived your right to confidentiality and that we should report directly to the CLC in certain circumstances. We understand that you will confirm these matters in your reply to this letter.

Trust & Estate Tax Returns

Recurring compliance work

We will prepare the Trust/Estate’s tax returns together with any supplementary pages required from the information and explanations that you provide to us. After obtaining your approval and signature we will submit your returns to HM Revenue & Customs (HMRC).

We will maintain the accounting records of the Trust/Estate on your behalf from the information and explanations provided to us on your behalf for the purposes of preparing the annual accounts and tax returns.

We will prepare the income and expenditure and capital accounts of the Trust/Estate in accordance with generally accepted accounting practice from the accounting records and other information and explanations provided by you and will obtain your approval of the accounts.

We will calculate your income tax and capital gains tax liabilities arising from the Trust/Estate and will advise you how much you should pay and when. We will advise you on the interest, penalty and surcharge implications if tax is paid late. We will also check HMRC’s calculation of the income tax liabilities and initiate repayment claims if tax has been overpaid.

We will advise you as to possible tax return related claims and elections arising from information supplied by you. Where instructed by you we will make such claims and elections in the form and manner required by HMRC.

Where 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.

Ad hoc and advisory work

We will provide other taxation ad hoc and advisory services as may be agreed from time to time. These may be the subject of a separate engagement letter. Where appropriate we will discuss and agree an additional fee for such work when it is commissioned by you. Examples of such work include:

1 advising you of the occasions of charge to inheritance tax, the basis of the charge and when the tax liability is due for payment.

2 advising on ad hoc transactions (for example the sale of assets held by the Trust/Estate)preparing the additional supplementary pages to the Trust/Estate’s tax return and calculating any related liabilities

3 dealing with any enquiry opened into the Trust/Estate’s tax return by HMRC.

4 preparing any amended returns which may be required and corresponding with HMRC as necessary.

Where specialist advice is required on occasions we may need to seek this from or refer you to appropriate specialists.

Changes in the law

We will not accept any responsibility if you act on advice previously given by us without first confirming with us that the advice is still valid in light of any change in the law or your circumstances.

We will accept no liability for losses arising from changes in the law or the interpretation thereof that occur after the date on which the advice is given.

Your responsibilities

As Trustees you have legal responsibility for:

1 ensuring that the Trust/Estate’s self-assessment tax returns are correct and complete;

2 filing any returns by the due date; and

3 making payment of tax on time.

Failure to do this may lead to automatic penalties, surcharge and/or interest.

Taxpayers who sign their returns cannot delegate this legal responsibility to others. You agree to check that returns we have prepared are complete before you approve and sign them.

To enable us to carry out our work you agree:

1 that all returns are 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/Estate’s taxation affairs: we will rely on the information being true, correct and complete and will not audit the information;

3 to advise us of a disclosure of distributions made within 30 days of such an event;

4 to authorise us to approach such third parties as may be appropriate for information that we consider necessary to deal with the Trust/Estate’s taxation affairs; and

5 to provide us with information in sufficient time for the Trust/Estate’s return to be completed and submitted by the due date of XX.XX.XXXX following the end of the tax year. In order that we can do this, we need to receive all relevant information by XX.XX.XXXX. Where feasible we may agree to complete your return within a shorter period but may charge an additional fee for so doing.

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 or not please let us know so that we can assess the significance or otherwise.

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 through the form 64-8 it is essential that you let us have copies of any correspondence received from HMRC to avoid any breakdown in communication.

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 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 incur a late registration penalty as a result.

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.

HM Revenue & Customs (HMRC) Tax Investigations

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

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

We will negotiate with HMRC on any question of taxation, interest and penalties. The outcome of some income tax enquiries may be related to or impact on claims to tax credits. We will not address the tax credits issues unless we have explicitly agreed to do so.

We must make it clear that if at any time we consider that you are unwilling or indeed refuse to make full disclosure, then we must 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 any unbilled costs would be your liability.

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

Your responsibilities

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

that all information to be given to HMRC in the course of the investigation are to be made on the basis of full disclosure of all sources of income, charges, allowances and capital transactions;

to provide full information necessary for dealing with the investigation;

to authorise us to communicate with such third parties as may be appropriate that we consider necessary to deal with the investigation;

to provide information promptly to enable us to deal with the investigation expeditiously and to act in your interests in order to qualify for such reduction as may be appropriate for the cause of the error and the level of disclosure if there are tax liabilities or penalties for earlier years;

to forward to us on receipt copies of all HMRC correspondence, statements of account, PAYE coding notices, notices of assessment, letters and other communications received from HMRC as may be relevant to the investigation and to enable us to deal with them as may be necessary immediately upon receipt. Although HMRC have the authority to communicate with us through the form 64-8 it is essential that you let us have copies of any correspondence received from HMRC to avoid any breakdown in communication;

to keep us informed about significant changes in your circumstances if they are likely to affect the outcome of the investigation. If you are unsure whether the change is material or not please let us know so that we can assess the significance or otherwise; and

to notify us immediately of any insurance cover you have for enquiries into your tax returns by HMRC.

Due Diligence report

Our responsibility to you

which renders any information previously given to us as incorrect or inaccurate. We shall not be responsible for any failure to advise or comment on any matter that falls outside the specific scope of your instructions. We cannot accept any responsibility for any event, loss or situation unless it is one against which it is the expressed purpose of these instructions to provide protection.

Your responsibility to us

The advice that we give can only be as good as the information on which it is based. In so far as that information is provided by you, or by third parties with your permission, your responsibility arises as soon as possible if any circumstances or facts alter, as any alteration may have a significant impact on the advice given. If the circumstances change therefore or your needs alter, advise us of the alteration as soon as possible in writing.

Proposed purchase

You have asked us to undertake the following activities in connection with the proposed purchase of insert name of company:

Provide a brief report on the nature of the business and its historical development, including a description of the current management and the current organisational structure of the business.

Ascertain and evaluate the management’s plans for future development of the business.

Assess the adequacy of the accounting systems (including internal controls) and the quality and reliability of the financial information produced.

Consider whether accounting policies comply with accepted accounting principles and company law requirements, have been consistently applied during the period under review and are appropriate to the business.

Review the company’s management accounts for the period TBA to TBA and comment on factors underlying the results which appear to be significant, identifying any points considered to be critical to the performance of the business.

Review the company’s filed accounts for the last 3 years and comment on any factors considered to be critical to the performance of the business.

Review the cashflow projections and profit forecasts for the period from TBA to TBA and comment on any significant factors arising.

Assess the sensitivity of the cashflow projections and profit forecasts to risks arising from the underlying assumptions.

Assess any evident potential liabilities found during our investigations.

Assess the need for future investment or other potential costs to comply with current and pending regulatory requirements.

Review past levels of insurance cover and assess likely future requirements.

Review the adequacy of the pension arrangements and likely future funding levels.

Analyse the employee profile.

Our service to you

We will issue a brief report on the matters we have agreed in paragraphs 1 to 13 of this letter of engagement. If we have been unable to obtain necessary information or explanations or have had to rely on explanations or assumptions, we will comment on these in our report.

The intended user of the report is insert name of user. The report will be addressed to insert name of user.

You agree not to submit the report to any third party without our prior written approval duly signed by insert name of partner.

Basis of report

Other than as specifically set out in this letter we will not carry out any work by way of audit, review or verification of the financial information nor of the management accounts, accounting records or other sources from which that information is to be extracted for the purpose of providing you with our report.

Limitation of liability

We specifically draw your attention to the limitation of liability paragraphs in our standard terms and conditions which set out the basis on which we limit our liability to you and to others. You should read this in conjunction with the limitation of third party rights paragraphs in our standard terms and conditions which exclude liability to third parties. These are important provisions which you should read and consider carefully.

There are no third parties that we have agreed should be entitled to rely on the work done pursuant to this engagement letter.

Other services

You may request that we provide other services from time to time. If these services will exceed £500.00, we will issue a separate letter of engagement and scope of work to be performed accordingly.

Business Rates Review

You have asked us to specifically review your Business rates and make an appeal to the relevant council on your behalf.

Our Service to you

We will undertake the above assignment and provide you with a report and/or recommendations together with any relevant schedules on the basis of information provided by you.

We will approach third parties as appropriate for information as directed and authorised by you only.

We will provide you with any calculations that may be relevant in the making of the appeal and providing evidence.

We will, if appropriate, liaise with any third party to assist in carrying out the review.

We will prepare and submit the claim/s to the relevant Council on your behalf.

We will make you aware of any requirements for the engagement of a solicitor if or when such a need arises.

Your responsibilities

To enable us to carry out our work, you agree to make full disclosure of all properties and full information necessary to undertake the assignment.

To respond quickly and fully to our requests for information and to other communications from us.

We will provide our professional services outlined in this letter with reasonable care and skill. However, we will not be responsible for any losses, penalties, surcharges interest or additional liabilities arising from the supply by you or others of incorrect information, or your or others’ failure to supply any appropriate information or your failure to act on our advice or respond promptly to communications from us.

Communications with third parties

You agree that we can approach third parties as appropriate for information that we consider necessary to deal with the assignment.

Sole Trader Accounts

Our Service to You

We will not be carrying out any audit work as part of this assignment and accordingly will not verify the assets and liabilities of the business, nor the items of expenditure and income. To carry out an audit would entail additional work so that we could report on the truth and fairness of the accounts. We would also like to emphasise that we cannot undertake to discover any shortcomings in your systems or irregularities on the part of your employees.

To ensure that anyone reading the accounts is aware that we have not carried out an audit, we will attach to the accounts a report stating this fact.

The intended user of the report is the owner. The report will be addressed to the owner.

We will communicate with the business at its place of business, this being the address above. Any alteration to these instructions will require notification in writing and agreement by the owner.

Our report will be based on information gained from your self, and we accept no responsibility for any losses arising out of implementing our report. Further, our report requires us to rely substantially upon your representations. Therefore we can accept no responsibility for any losses for issues not addressed in our report.

As part of our normal procedures we may request you to provide written confirmation of any oral information and explanations given to us during the course of our work.

We have a professional duty to compile accounts that conform with generally accepted accounting principles. Where we identify that the accounts do not conform to accepted accounting principles we will inform you and suggest amendments be put through the accounts before being published. We have a professional responsibility not to allow our name to be associated with accounts that may be misleading. In extreme cases, where this matter cannot be resolved, we will withdraw from the engagement and notify you in writing.

Your Responsibilities: Provision of Information by You

You the Sole Trader are legally responsible for making correct returns by the due date and for payment of tax on time. Failure to meet the deadlines may result in automatic penalties, surcharges and/or interest.

To enable us to carry out our work you agree:

That all returns are to be made on the basis of full disclosure of all sources of income, charges, allowances and capital transactions;

To provide full information necessary for dealing with your affairs: we will rely on the information and documents being true, correct and complete and will not audit the information or those documents;

That we can approach such third parties as may be appropriate for information that we consider necessary to deal with your affairs;

To provide us with information in sufficient time for your tax return to be completed and submitted by the 31 January following the end of the tax year. In order that we can do this, we need to receive all relevant information by 31st October.

To forward to us on receipt copies of all Inland Revenue statements of account, PAYE coding notices, notices of assessment, letters and other communications received from the Inland Revenue to enable us to deal with them as may be necessary within the statutory time limits; and

To keep us informed about significant changes in your circumstances if they are likely to affect your tax position

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 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 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.

Statutory Audit of Company

Your Responsibilities

As directors, in addition to your general duties specified in sections 170 to 177 of the Companies Act 2006, you are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and to enable you to ensure that the financial statements comply with the Companies Act 2006. You are also responsible for preparing financial statements which give a true and fair view, have been prepared in accordance with United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and the Companies Act 2006 and regulations made under it.

In preparing these financial statements, you are required to:

select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business

You also have a responsibility not to approve these financial statements unless you are satisfied that they give a true and fair view.

You are responsible for such internal control as you determine is necessary to enable the preparation of financial statements that are free from material misstatement whether due to fraud or error. Additionally, you are also responsible for safeguarding the assets of the company, complying with laws and regulations and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

You are responsible for making available to us, as and when required, all the company’s accounting records and all other relevant records and related information, including minutes of all directors’, management and shareholders’ meetings and additional information that we may request. You will also provide us with unrestricted access to persons within the company from whom we determine it is necessary to obtain audit evidence.

You are required to confirm in the directors’ report that so far as you are aware, there is no relevant audit information of which we, as the company’s auditors, are unaware and that you have taken all the steps that you ought to take as directors in order to make yourselves aware of any relevant audit information and to establish that we are aware of that information. We are entitled to require from the company’s officers and employees such other information and explanations as we think necessary for the performance of our duties as auditors.

Our Responsibilities

We have a statutory responsibility to report to the members of the company whether in our opinion the financial statements:

give a true and fair view of the state of affairs of the company at the year end and profit or loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.

We also have a statutory responsibility to state in our report whether in our opinion the information given in the strategic report (if any) and the directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements and the strategic report (if any) and the directors’ report have been prepared in accordance with applicable legal requirements. In light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we will also report whether any material misstatements are identified in the strategic report (if any) and the directors’ report. In addition, we have a statutory responsibility to report by exception if, in our opinion:

adequate accounting records have not been kept by the company, or returns adequate for our audit have not been received from branches not visited by us;

the company’s financial statements are not in agreement with the accounting records and returns;

certain disclosures of directors’ remuneration specified by law are not made;

we have not received all the information and explanations which we consider necessary for the purposes of our audit; or

you have prepared financial statements in accordance with the small companies regime or have taken advantage of the small companies exemption in preparing your directors’ report and take advantage of the small companies exemption from the requirement to prepare a strategic report and we are of the opinion that you were not entitled to do so.

If we have nothing to report in respect of the above matters we will include a statement in our report confirming this.

Where the financial statements do not disclose details of directors’ benefits: remuneration, pensions and compensation for loss of office, the Companies Act 2006 also requires us, so far as we are reasonably able to do so, to include a statement in our report giving the required particulars.

We have a professional responsibility to report if the financial statements do not comply in any material respect with applicable accounting standards, unless in our opinion the non-compliance is justified in the circumstances. In determining whether or not the departure is justified we consider whether:

the departure is required in order for the financial statements to give a true and fair view; and
adequate disclosure has been made concerning the departure.

Our professional responsibilities also include considering whether other information in documents containing audited financial statements is consistent with those financial statements and knowledge gained during the course of the audit.

As noted above, our report will be made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work will be undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. In those circumstances, to the fullest extent permitted by law, we will not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for the audit report, or for the opinions we form. The audit of the financial statements does not relieve you of your responsibilities.

Dominic Shaw is responsible for the auditor’s report, and is therefore the Senior Statutory Auditor for the purpose of section 504 of the Companies Act 2006, and will sign the auditor’s report in his own name on behalf of the firm.

The provision of audit services is a business in the regulated sector under the Proceeds of Crime Act 2002 and, as such, partners and staff in audit firms have to comply with this legislation which includes provisions that may require us to make a money laundering disclosure in relation to information we obtain as part of our normal audit work. It is not our practice to inform you when such a disclosure is made or the reasons for it because of the restrictions imposed by the ‘tipping off’ provisions of the legislation.

In the event that we cease to act as statutory auditors for the company we are required by paragraph 9(3) of schedule 10 of the Companies Act 2006 to make available, if requested, all relevant information concerning the audit of the company to our successors as statutory auditors. You agree to cover any reasonable costs of making such information available that we may incur in fulfilling our statutory duty.

We also draw your attention to the requirements of sections 510 to 526 of the Companies Act 2006 in relation to auditor removal and resignation.

Scope of audit

Our audit will be conducted in accordance with the International Standards on Auditing (UK) (ISAs (UK)) and applicable law.

Those standards require that we plan and perform our audit in order to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Read all financial and non-financial information (other information) included in the annual report other than the financial statements and identify whether the other information is materially inconsistent with the financial statements or our knowledge obtained during the audit, or otherwise appears materially misstated. You are responsible for the preparation of the other information and where, based on the work we have performed, we conclude that there is a material misstatement in this other information, we are required to report this fact.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Our work will be planned in advance and incorporated into an audit plan. This may be varied on the basis of our findings during the course of an audit from year to year. Accordingly, we may modify our audit scope, rotate our audit emphasis and propose matters of special audit emphasis, as circumstances dictate.

We shall obtain an understanding of the accounting and internal control systems in order to assess their adequacy as a basis for the preparation of the financial statements and to establish whether adequate accounting records have been maintained by the company. We shall expect to obtain such appropriate evidence as we consider sufficient to enable us to draw reasonable conclusions therefrom.

The nature and extent of our procedures will vary according to our assessment of the company’s accounting system and, where we wish to place reliance on it, the internal control system, and may cover any aspect of the business’s operations that we consider appropriate. Our audit is not designed to identify all significant weaknesses in the company’s systems but, if such weaknesses come to our notice during the course of our audit which we think should be brought to your attention, we shall report them to you. Any such report may not be provided to third parties without our prior written consent. Such consent will be granted only on the basis that such reports are not prepared with the interests of anyone other than the company in mind and that we accept no duty or responsibility to any other party as concerns the reports.

The information used by you in preparing the financial statements will invariably include facts or judgements which are not themselves recorded in the accounting records. As part of our normal audit procedures, we will ask you to provide written confirmation each year of such facts or judgments and any other oral representations that we have received from you during the course of the audit on matters having a material effect on the financial statements. In particular, where we bring misstatements in the financial statements to your attention that are not adjusted, we shall require written representation as to whether you believe the effects of the uncorrected misstatements are immaterial, individually and in aggregate, to the financial statements as a whole. In connection with representations and the supply of information to us generally, we draw your attention to section 501 of the Companies Act 2006 under which it is an offence for an officer or employee of the company to knowingly or recklessly make misleading, false or deceptive statements to auditors.

In order to assist us with the examination of your financial statements, we shall request sight of all documents or statements, including the chairman’s statement, operating and financial review, the strategic report and the directors’ report, which are due to be issued with the financial statements. We are also entitled to attend all general meetings of the company and to receive notice of all such meetings, as well as to receive details of all written resolutions that are to be circulated to members.

The responsibility of safeguarding the assets of the company and for the prevention and detection of fraud, error and non- compliance with laws and regulations rests with yourselves. However, we shall plan our audit so that we have a reasonable expectation of detecting material misstatements in the financial statements or accounting records (including those resulting from fraud, error or non-compliance with laws and regulations), but our examination should not be relied upon to disclose all such material misstatements or frauds, errors or instances of non-compliance as may exist.

We shall not be treated as having notice, for the purposes of our audit responsibilities, of information provided to members of our firm other than those engaged on the audit (for example information provided in connection with accounting, taxation and other services).

In respect of the expected form and content of our report, we refer you to the most recent bulletin on auditor’s reports published by the Financial Reporting Council at www.frc.org.uk. The form and content of our report may need to be amended in the light of our findings.

Once we have issued our report we have no further direct responsibility in relation to the financial statements for that financial year. However, we expect that you will inform us of any material event occurring between the date of our report and the date the financial statements are sent out in accordance with section 423 Companies Act 2006 which may affect the financial statements.

Where audited information is published on the company’s website or by other electronic means, it is your responsibility to advise us of any intended electronic publication before it occurs and to ensure that any such publication properly presents the financial information and auditor’s report. We reserve the right to withhold consent to the electronic publication of our report if it or the financial statements are to be published in an inappropriate manner. It is your responsibility to ensure there are controls in place to prevent or detect quickly any changes to that information. We are not required to review such controls nor to carry out ongoing reviews of the information after it is first published. The maintenance and integrity of the company’s website is your responsibility and we accept no responsibility for changes made to audited information after it is first posted.

We assist in preparing iXBRL-tagged financial statements for submission to HMRC with the company’s tax return. We are not currently required by auditing standards to verify the iXBRL tagging or the underlying data as part of our statutory audit. The accuracy of this information remains your responsibility.

We appreciate that the present size of your business renders it uneconomic to create a system of internal control based on the segregation of duties for different functions within each area of the business. In the running of your company we understand that the directors are closely involved with the control of the company’s transactions. In planning and performing our audit work we shall take account of this supervision.

Communication

In order to promote effective two-way communication between us we set out below the expected form and timing of such communications.

We shall contact you prior to each year-end for preliminary discussions concerning the audit. We will confirm in writing the matters discussed and any agreed action.

We will arrange a meeting to discuss the forthcoming audit, including an overview of the planned scope and timing of the audit prior to the expected start date. Again we will confirm in writing the matters discussed and any agreed action.

We will arrange a meeting to discuss the significant findings from the audit and we will confirm in writing the matters discussed and any agreed action.

The formal communications set out above are the minimum required to comply with auditing standards. We shall of course contact you on a more frequent and regular basis regarding both audit and other matters.

Accounts Review

You have asked us to specifically review your company’s financial statements.

Our Service to you

We will undertake the above assignment and provide you with a report and recommendations together with any relevant schedules on the basis of information provided by you.

Your responsibilities

We will provide our professional services outlined in this letter with reasonable care and skill. However, we will not be responsible for any losses, penalties, surcharges interest or additional tax liabilities arising from the supply by you or others of incorrect information, or your or others’ failure to supply any appropriate information or your failure to act on our advice or respond promptly to communications from us.

Limited Company Accounts

Our responsibility to you

We have set out the agreed scope and objectives of your instructions within this letter of engagement. Any subsequent changes will be discussed with you and where appropriate a new letter of engagement will be agreed. We shall proceed on the basis of the instructions we have received from you and will rely on you to tell us as soon as possible if anything occurs which renders any information previously given to us as incorrect or inaccurate. We shall not be responsible for any failure to advise or comment on any matter that falls outside the specific scope of your instructions. We cannot accept any responsibility for any event, loss or situation unless it is one against which it is the expressed purpose of these instructions to provide protection.

Your responsibility to us

Statutory responsibilities

As directors of the company, you are required by statute to prepare accounts (financial statements) for each financial year, which give a true and fair view of the state of affairs of the company and of its profit or loss for that period. In preparing those accounts you must:

Select suitable accounting policies and then apply them consistently.
Make judgments and estimates that are reasonable and prudent.
Prepare the accounts on the going concern basis unless it is not appropriate to presume that the company will continue in business.

You have engaged us to prepare the accounts on your behalf.

It is your responsibility to keep proper accounting records that disclose with reasonable accuracy at any particular time the financial position of the company. It is also your responsibility to safeguard the assets of the company and for taking reasonable steps for the prevention of and detection of fraud and other irregularities with an appropriate system of internal controls.

You are responsible for determining whether, in respect of the year concerned, the company meets the conditions for exemption from an audit set out in section 477 of the Companies Act 2006, and for determining whether, in respect of the year, the exemption is not available for any of the reasons set out in section 478 of the Companies Act 2006.

You are also responsible for making available to us, as and when required, all the company’s accounting records and all other relevant records and related information, including minutes of management and shareholders’ meetings.

You will also be responsible for:

Maintaining records of all receipts and payments of cash.
Maintaining records of invoices issued and received.

Our work will not be an audit of the accounts in accordance with International Standards on Auditing (UK and Ireland). Accordingly we shall not seek any independent evidence to support the entries in the accounting records, or to prove the existence, ownership or valuation of assets or completeness of income, liabilities or disclosure in the accounts. Nor shall we assess the reasonableness of any estimates or judgments made in the preparation of the accounts. Consequently our work will not provide any assurance that the accounting records are free from material misstatement, irregularities or error.

As part of our normal procedures we may request you to provide written confirmation of any oral information and explanations given to us during the course of our work.

We have a professional duty to compile accounts that conform with generally accepted accounting principles. The accounts of a limited company are required to comply with the disclosure requirements of the Companies Act 2006 and applicable accounting standards.

Any listed UK companies that file consolidated accounts after the deadline (2005) not in compliance with IFRS will risk being referred to the Financial Reporting Review Panel and ultimately subject to the enforcement powers available to it and the UK Listing Authority (part of the FSA).

All UK companies not using IFRS for their accounts will be expected to continue to comply with UK standards and the accounting requirements of the Companies Act.

Where we identify that the accounts do not conform to accepted accounting principles or standards, we will inform you and suggest amendments be put through the accounts before being published. We have a professional responsibility not to allow our name to be associated with accounts that may be misleading. In extreme cases, where this matter cannot be resolved, we will withdraw from the engagement and notify you in writing of the reasons.

Should you instruct us to carry out any alternative report it will be necessary for us to issue a separate letter of engagement.

Our service to you

We will not be carrying out any audit work as part of this assignment and accordingly will not verify the assets and liabilities of the company, nor the items of expenditure and income. To carry out an audit would entail additional work to comply with International Standards on Auditing so that we could report on the truth and fairness of the financial statements. We would also like to emphasise that we cannot undertake to discover any shortcomings in your systems or irregularities on the part of your employees.

If an audit of the accounts is required, you will need to notify us in writing. Should our work indicate that the company is not entitled to exemption from an audit of the accounts, we will inform you. If we decide to undertake an audit assignment at your request, a separate engagement letter will be required.

To ensure that anyone reading the accounts is aware that we have not carried out an audit, we will attach to the accounts a report stating this fact.

The intended users of the report are the directors. The report will be addressed to the directors.

Once we have issued our report we have no further direct responsibility in relation to the accounts for that financial year. However, we expect that you will inform us of any material event occurring between the date of our report and that of the annual general meeting that may affect the accounts.

Other services

You may request that we provide other services from time to time. If these services will exceed £500, we will issue a separate letter of engagement and scope of work to be performed accordingly.

Because rules and regulations frequently change you must ask us to confirm any advice already given if a transaction is delayed or a similar transaction is to be undertaken.

Partnership Accounts

Recurring compliance work

We will prepare the Partnership self-assessment tax returns and the annual Partnership Statements together with any supplementary pages required from the information and explanations that the Partnership provides to us. After obtaining the approval and signature of the Partner nominated to deal with the Partnership’s tax affairs or the precedent acting Partner we will submit these to HM Revenue & Customs (HMRC).

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 on your behalf.

We will prepare the income tax and capital gains tax computations based on the Partnership’s business accounts for inclusion in the Partnership tax return.

If instructed we will provide each partner or their agent with details of the partner’s allocations from the return to enable partners to fill in their self assessment tax returns.

We will advise you as to possible tax return related claims and elections arising from information supplied by the Partnership. Where instructed by you we will make such claims and elections in the form and manner required by HMRC.

Ad hoc and advisory work

We will also provide other such taxation advisory and ad hoc services as may be agreed from time to time. These may be the subject of a separate engagement letter. Where appropriate we will discuss and agree an additional fee for such work when it is commissioned by you. Examples of such work include:

dealing with any enquiry opened into the Partnership tax return by HMRC
preparing any amended returns which may be required and corresponding with HMRC as necessary

Where specialist advice in certain areas is required on occasions we may need to seek this from or refer you to appropriate specialists.

Changes in the law

We will not accept responsibility if you act on advice previously given by us without first confirming with us that the advice is still valid in light of any change in the law or your circumstances.

We will accept no liability for losses arising from changes in the law or the interpretation thereof that occur after the date on which the advice is given.

Your responsibilities

The Partners are legally responsible for:

ensuring that the Partnership self assessment tax returns are correct and complete;
filing any returns by the due date; and
making payment of tax on time.

Failure to do this may lead to automatic penalties, surcharges and/or interest.

Taxpayers who sign their returns cannot delegate this legal responsibility to others. The Nominated Partner agrees to check that returns and partnership statements we have prepared for the Partnership are complete before you approve and sign them.

To enable us to carry out our work you agree:

that all returns are to be made on the basis of full disclosure of all sources of income, charges, allowances and capital transactions;
to provide full 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;
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
to provide us with information in sufficient time for the Partnership tax return to be completed and submitted by the due date 31 January following the of the tax year. In order that we can do this, we need to receive all relevant information by 31 August.
Where feasible we may agree to complete your return within a shorter period but may charge an additional fee for so doing.

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. If you are unsure whether the change is material or not please let us know so that we can assess the significance or otherwise.

You will forward to us HMRC statements of account, copies of notices of assessment, letters and other communications received from HMRC 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 through the form 64-8 it is essential that you let us have copies of any correspondence received from HMRC to avoid any breakdown in communication.

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 will be set out in a separate letter of engagement.

You are responsible for monitoring the Partnership’s monthly turnover to establish whether it 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 VAT registration threshold, and wishes 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.

Assurance Reports

SCHEDULE OF PROFESSIONAL SERVICES: REVIEW ENGAGEMENT

The purpose of this schedule to our engagement letter is to set out the basis on which we are to undertake a review of the unaudited statutory financial statements for the company.

Responsibilities of the directors

As directors of the company, in addition to your general duties specified in sections 170 to 177 of the Companies Act 2006, you are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and to enable you to

ensure that the financial statements comply with the Companies Act 2006. You are also responsible for preparing financial statements which give a true and fair view, have been prepared in accordance with [United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice)] and the Companies Act 2006 and regulations made under it.

In preparing the financial statements, you are required to:

select suitable accounting policies and then apply them consistently;
make judgements and estimates that are reasonable and prudent; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business; [and]
[large companies only] state whether applicable [UK Accounting Standards] have been followed, subject to any material departures disclosed and explained in the financial statements.

You also have a responsibility not to approve these financial statements unless you are satisfied that they give a true and fair view of the assets, liabilities, financial position and profit and loss of the company.

You are responsible for such internal control as you determine is necessary to enable the preparation of financial statements that are free from material misstatement whether due to fraud or error. Additionally, you are responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

You are also responsible for determining whether, in respect of the year, the company meets the conditions for exemption from an audit of the accounts set out in section 477 [or 479A or 480] of the Companies Act 2006, and for determining whether, in respect of the year, the exemption is not available for any of the reasons set out in sections 476, 478 and 479 [479B or 481].

You are responsible for ensuring that the company complies with the laws and regulations that apply to its activities, and for preventing non-compliance and for detecting any that occurs.

You have undertaken to make available to us, as and when required, all the company’s accounting records and related financial information, including minutes of management and shareholders’ meetings necessary to undertake the engagement. You will make full disclosure to us of all relevant information.

Where financial information is to be published, which includes a report by us or is otherwise connected to us, on the company’s website or by other electronic means, it is your responsibility to advise us of the intended electronic publication before it occurs and to ensure that any such publication properly presents the financial information and our report. We reserve the right to withhold consent to the electronic publication of our report if it, or the financial statements, are to be published in an inappropriate manner. It is your responsibility to ensure there are controls in place to prevent or detect quickly any changes to that information. We are not required to review such controls nor to carry out ongoing reviews of the information after it is first published. The maintenance and integrity of the company’s website is your responsibility and we accept no responsibility for changes made to such information after it is first posted.

Responsibilities of the accountants

As the company is totally exempt from audit, we have no statutory responsibilities to the company at all. Our only responsibilities arise from those specifically agreed upon between us in respect of other professional services.

You have asked us to undertake a review of the unaudited financial statements of the company. Our review will be conducted with the objective of expressing a conclusion on the financial statements that, if unmodified, will be as follows:

Based on our review, nothing has come to our attention that causes us to believe that the financial statements have not been prepared:

so as to give a true and fair view of the state of the company’s affairs as at the period/year end, and of its profit/loss for the period/year then ended;
in accordance with United Kingdom Generally Accepted Accounting Practice; and
in accordance with the Companies Act 2006.

The form and content of our conclusion may need to be amended in light of the findings obtained from our review.

We will conduct our review in accordance with International Standard on Review Engagements (ISRE) 2400 (Revised) Engagements to Review Historical Financial Statements [and ICAEW Technical Release TECH 09/13AAF (Revised) Assurance Review Engagements on Historical Financial Statements]*.

ISRE 2400 (Revised) requires us to conclude whether anything has come to our attention that causes us to believe that the financial statements, taken as a whole, are not prepared in all material respects in accordance with applicable law and United Kingdom Accounting Standards. ISRE 2400 (Revised) also requires us to comply with relevant ethical requirements.

A review of financial statements in accordance with ISRE 2400 (Revised) is a limited assurance engagement. We will perform procedures, primarily consisting of making inquiries of management and others within the company, as appropriate, applying analytical procedures and evaluating the evidence obtained. We will also perform additional procedures if we become aware of matters that cause us to believe the financial statements as a whole may be materially misstated. These procedures are performed to enable us to express our conclusion on the financial statements in accordance with ISRE 2400 (Revised). The procedures undertaken will depend on what we consider necessary, applying our professional judgement, based on our understanding of the company and its environment, and our understanding of United Kingdom Generally Accepted Accounting Practice and its application in the industry context.

You have advised us that the company is exempt from an audit of the financial statements. We will not check whether this is the case. However, should our work indicate that the company is not entitled to the exemption, we will inform you of this.

The procedures performed in a review are substantially less than those performed in an audit conducted in accordance with International Standards on Auditing (UK). Therefore, even though the review is properly performed in accordance with ISRE 2400 (Revised) it does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion on the financial statements.

Our report will be made solely to the company’s directors, as a body, in accordance with the terms of this engagement letter. Our work will be undertaken so that we might state to the company’s directors those matters we are required to state to them in accordance with ISRE 2400 (Revised) in a review report and for no other purpose. To the fullest extent permitted by law, we will not accept or assume responsibility to anyone other than the company and the company’s directors as a body, for our assurance work, for the review report, or for the conclusions we form. Our review of the financial statements does not relieve you of your responsibilities.

Monthly Bookkeeping

Scope of services to be provided

Our responsibility to you

We have set out the agreed scope and objectives of your instructions within this letter of engagement. Any subsequent changes will be discussed with you and where appropriate a new letter of engagement will be agreed. We shall proceed on the basis of the instructions we have received from you and will rely on you to tell us as soon as possible if anything occurs which renders any information previously given to us as incorrect or inaccurate. We shall not be responsible for any failure to advise or comment on any matter that falls outside the specific scope of your instructions. We cannot accept any responsibility for any event, loss or situation unless it is one against which it is the expressed purpose of these instructions to provide protection.

Your responsibility to us

The advice that we give can only be as good as the information on which it is based. In so far as that information is provided by you, or by third parties with your permission, your responsibility arises as soon as possible if any circumstances or facts alter, as any alteration may have a significant impact on the advice given. If the circumstances change therefore or your needs alter, advise us of the alteration as soon as possible in writing.

Responsibilities

You are responsible for providing us with the following information required for us to prepare the accounting records:

1 Sales invoices.

2 Purchase invoices.

3 Bank statements.

4 Details of bank and cash payments.

5 Details of bank and cash receipts.

6 Stock and work-in-progress details.

7 Access to your accounting records.

We have also agreed that you will provide the following:

1 A record of the amounts owed to the business.

2 A record of amounts owed by the business.

3 A list of accruals.

4 A list of prepayments.

Our service to you

We will prepare from the information and explanations provided by you, your books of prime entry as follows:

1 Records of bank receipts and payments.

2 Records of cash receipts and payments.

3 Reconciliations of the bank and cash control accounts.

4 A record of sales.

5 A record of purchases.

6 A record of amounts owed to the business.

7 A record of amounts owed by the business.

8 A list of accruals.

9 A list of prepayments.

Self-assessment Tax Return

Recurring compliance work

We will prepare your self-assessment tax returns together with any supplementary pages required from the information and explanations that you provide to us. After obtaining your approval and signature, we will submit your returns to HM Revenue & Customs (HMRC).

We will calculate your income tax, national insurance contributions (NIC) and any capital gains tax liabilities and tell you how much you should pay and when. We will advise on the interest, penalty and surcharge 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 has been overpaid.

Other than as regards tax credits (see below) we will advise you as to possible tax return related claims and elections arising from information supplied by you. Where instructed by you, we will make such claims and elections in the form and manner required by HMRC.

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

Ad hoc and advisory work

We will also provide such other taxation ad hoc and advisory services as may be agreed from time to time. These may be the subject of a separate engagement letter. Where appropriate we will discuss and agree an additional fee for such work when it is commissioned by you. Examples of such work include:

1 advising on ad hoc transactions, preparing additional supplementary pages to your tax return and calculating any related liabilities

2 dealing with any enquiry opened into your tax return by HMRC

3 preparing any amended returns which may be required and corresponding with HMRC as necessary

4 advising on the rules relating to and assisting with VAT registration

Where specialist advice is required on occasions we may need to seek this from or refer you to appropriate specialists.

Tax Credits

Compliance

Where instructed by you we will deal with tax credit forms and renewal applications.

Advisory

Where instructed by you we will advise you on your entitlement to claim Child Tax Credits and/or Working Tax Credits. In order for us to deal with any potential tax credit claims we will need you to provide information concerning your household, childcare costs, any other state benefits to which you are entitled and any other such information as is necessary.

Changes in the law

We will not accept responsibility if you act on advice previously given by us without first confirming with us that the advice is still valid in light of any change in the law or your circumstances.

We will accept no liability for losses arising from changes in the law or the interpretation thereof that occur after the date on which the advice is given.

Your responsibilities

You are legally responsible for:

1 ensuring that your self assessment tax returns are correct and complete;

2 filing any returns by the due date; and

3 making payment of tax on time.

Failure to do this may lead to automatic penalties, surcharges and/or interest.

Taxpayers who sign their returns cannot delegate this legal responsibility to others. You agree to check that returns we have prepared for you are complete before you approve and sign them.

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 full information necessary for dealing with your affairs: we will rely on the information and documents being true, correct and complete and will not audit the information or those documents;

3 to authorise us to approach such third parties as may be appropriate for information that we consider necessary to deal with your affairs; and

4 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. In order that we can do this, we need to receive all relevant information by 31st December following the end of the tax year. Where feasible we may agree to complete your return within a shorter period but may charge an additional fee for so doing.

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 or not please let us know so that we can assess the significance or otherwise.

You will forward to us HMRC statements of account, copies of notices of assessment, letters and other communications received from HMRC 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 through the form 64-8 it is essential that you let us have copies of any correspondence received from HMRC to avoid any breakdown in communication.

You and your spouse/partner

We shall 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. If you wish to make any change to these arrangements at any time, please let us know.

Partnership Tax Return

PARTNERSHIP TAX RETURN – TERMS & CONDITIONS

The purpose of the work is to assist you in prepare the income tax and capital gains tax computations based on the partnership accounts from the accounting records and other information and explanations provided by you.

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

Our responsibilities – What we agree to do and be responsible for:

Prepare the Partnership self assessment tax returns and the annual Partnership Statements together with any supplementary pages required from the information and explanations that the Partnership provides to us. After obtaining the approval and signature of one of the Partners nominated to deal with the Partnership’s tax affairs we will submit these to HM Revenue & Customs (HMRC).

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.

Prepare the income tax and capital gains tax computations based on the Partnership’s business accounts for inclusion in the Partnership tax return.

If instructed we will provide each partner or their agent with details of the partner’s allocations from the return to enable partners to fill in their self assessment tax returns.

Advise you as to possible tax return related claims and elections arising from information supplied by the Partnership. Where instructed by you we will make such claims and elections in the form and manner required by HMRC.

Your responsibilities – What you agree to do and be responsible for:

The Partners are legally responsible for:

Ensuring that the Partnership self assessment tax returns are correct and complete;
Filing any returns by the due date; and
Making payment of tax on time.

Please note:

Failure to do this may lead to automatic penalties, surcharges and/or interest.
Taxpayers who sign their returns cannot delegate this legal responsibility to others. The Nominated Partner agrees to check that returns and partnership statements we have prepared for the Partnership are complete before you approve and sign them.

To enable us to carry out our work you agree:

That all returns are to be made on the basis of full disclosure of all sources of income, charges, allowances and capital transactions;
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;
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
To provide us with information in sufficient time for the Partnership tax return to be completed and submitted by the due date following the end of the tax year. In order that we can do this, we need to receive all relevant information by 30th November following the end of the tax year. Where feasible we may agree to complete your return within a shorter period but may charge an additional fee for so doing.

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. If you are unsure whether the change is material or not please let us know so that we can assess its significance.

You will forward to us HMRC statements of account, copies of notices of assessment, letters and other communications received from HMRC in 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 signed and 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.

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 will be set out in a separate letter of engagement.

You are responsible for monitoring the Partnership’s monthly turnover to establish whether it 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 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.

Other considerations

Ad hoc and advisory work

Where you have instructed us to do so, we will also provide such other taxation advisory and ad hoc services as may be agreed between from time to time. These may be the subject of a separate engagement letter at our option. Where appropriate we will discuss and agree an additional fee for such work when it is commissioned by you.

Examples of such work include:

Dealing with any enquiry opened into the Partnership tax return by HMRC; and
Preparing any amended returns which may be required and corresponding with HMRC as necessary
Where specialist advice in certain areas is required on occasions we may need to seek this from or refer you to appropriate specialists.

Limitation of liabilities – Changes in the law

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 or your circumstances.

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

Company Formation (One-off Fee)

COMPANY SECRETARIAL SERVICE – TERMS & CONDITIONS

The purpose of the work is to assist you with all company secretarial work.

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

Our responsibilities – What we agree to do and be responsible for:

We will prepare from the information and explanations provided by you, your returns together with any supporting schedules. We will not audit or otherwise check the underlying records.

We will send you the returns and any supporting schedules for you to approve after your making the records available to us.

We will complete other returns reflecting changes in directors, shareholders etc as requested.

We will maintain the statutory records and minutes on behalf of the company secretary from the information supplied.

Your responsibilities – What you agree to do and be responsible for:

You are responsible for making correct returns by the due date.

To enable us to carry out our work you agree:

To provide full information necessary for dealing with your affairs – we will rely on the information and documents being true, correct and complete and will not audit the information or those documents.
That we can approach such third parties as may be appropriate for information that we consider necessary to deal with your affairs.
To provide us with information in sufficient time for your returns to be completed and submitted.
To provide us within seven days of signing, certified copies of directors and shareholder notices, minutes or resolutions.

The advice that we give can only be as good as the information on which it is based. In so far as that information is provided by you, or by third parties with your permission, your responsibility arises as soon as possible if any circumstances or facts alter, as any alteration may have a significant impact on the advice given. If the circumstances change therefore or your needs alter, advise us of the alteration as soon as possible in writing.

Confirmation Statement & PSC Register

COMPANY SECRETARIAL SERVICE – TERMS & CONDITIONS

The purpose of the work is to assist you with all company secretarial work.

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

Our responsibilities – What we agree to do and be responsible for:

We will prepare from the information and explanations provided by you, your returns together with any supporting schedules. We will not audit or otherwise check the underlying records.

We will send you the returns and any supporting schedules for you to approve after your making the records available to us.

We will complete other returns reflecting changes in directors, shareholders etc as requested.

We will maintain the statutory records and minutes on behalf of the company secretary from the information supplied.

Your responsibilities – What you agree to do and be responsible for:

You are responsible for making correct returns by the due date.

To enable us to carry out our work you agree:

To provide full information necessary for dealing with your affairs – we will rely on the information and documents being true, correct and complete and will not audit the information or those documents.
That we can approach such third parties as may be appropriate for information that we consider necessary to deal with your affairs.
To provide us with information in sufficient time for your returns to be completed and submitted.
To provide us within seven days of signing, certified copies of directors and shareholder notices, minutes or resolutions.

The advice that we give can only be as good as the information on which it is based. In so far as that information is provided by you, or by third parties with your permission, your responsibility arises as soon as possible if any circumstances or facts alter, as any alteration may have a significant impact on the advice given. If the circumstances change therefore or your needs alter, advise us of the alteration as soon as possible in writing.

IR35 Contract Review

You have asked us to specifically review your IR35 Status

Our Service to you

We will undertake the above assignment and provide you with a report and recommendations together with any relevant schedules on the basis of information provided by you.

We will approach third parties as appropriate for information as directed and authorised by you only.

We will provide you with calculations of the estimated tax effect of any strategy recommended by us.

We will, if appropriate, liaise with any third party to assist in carrying out any process to implement any strategy recommended by us.

We will prepare any claims or elections relevant to any proposed strategy and forward them as appropriate for signature and thereafter submit them to H M Revenue and Customs as appropriate.

Should any strategy recommended and undertaken result in payment of taxes we will advise you of the due dates of payment and the consequences of non payment of those taxes.

Your responsibilities

To enable us to carry out our work, you agree to make full disclosure of all income, charges, assets and liabilities where- so-ever situated in the world and full information necessary to undertake the assignment.

To respond quickly and fully to our requests for information and to other communications from us.

We will provide our professional services outlined in this letter with reasonable care and skill. However, we will not be responsible for any losses, penalties, surcharges interest or additional tax liabilities arising from the supply by you or others of incorrect information, or your or others’ failure to supply any appropriate information or your failure to act on our advice or respond promptly to communications from us.

Communications with third parties

You agree that we can approach third parties as appropriate for information that we consider necessary to deal with the assignment.

Quarterly Monthly Management Accounts & Financial Reporting

Management Accounts & Performance Reporting – TERMS & CONDITIONS

The purpose of the management accounts we will prepare is to assist you in monitoring the ongoing trading position of your business. In essence these are prepared to provide you with relevant information for decision making purposes.

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

Our Responsibilities – What we agree to do and be responsible for:

Prepare the management accounts for your approval based on the accounting records you maintain. We will also rely on any information and explanations you give us.

Include a report in the accounts. This report will point out that we have not carried out an audit but have compiled the management accounts from the accounting records and information and explanations supplied to us.

Your Responsibilities – What you agree to do and be responsible for

Unless we have also agreed to carry out a bookkeeping service you are responsible for all the day-to-day accounting work. This will include:

keeping the record of receipts and payments;
reconciling your records with the bank statement;
maintaining records of debtors and creditors;
carrying out or arranging for a valuation of the period-end stock levels; and
preparing details of any period-end work-in-progress.

You agree to make your accounting records and related financial information available to us in line with the requests we make. You recognise that a failure to do so could have an impact on the price or the speed of our work.

Even if we have not directly requested it, you agree to disclose to us in full any information that is relevant to the management accounts.

You will approve and sign the management accounts thereby acknowledging responsibility for them, including providing us with all information and explanations necessary for their preparation.

We have a professional responsibility to not allow our name to be associated with accounts that we believe may be misleading. We are not required to search for such matters, but if we become aware that information in the management accounts may be misleading we will discuss this with you so that appropriate adjustments or disclosures can be made. Where the adjustments or disclosures we consider appropriate are not made and we consider that the accounts remain misleading, we will withdraw from the engagement. In these circumstances you agree that we have a right to invoice you for our time spent preparing and discussing the accounts with you as well as time spent on any other work that is not completed as part of our resignation.

Our report is prepared solely for your confidential use and solely for the purpose set our above. You may not rely upon it for any other purpose whatsoever. Our report must not be made available, copied or recited to any other party. We neither owe nor accept any duty to any other party and shall not be liable for any loss, damage or expense of whatsoever nature which is caused by their reliance on our report.

You are responsible for the following general business and financial matters:

Ensuring that, to the best of your knowledge and belief, financial information used by your business or for the management accounts is accurate and complete;
Ensuring that the activities of your business are being conducted honestly;
Safeguarding the assets of your business and taking reasonable steps for the prevention and detection of fraud; and
Ensuring your business complies with the laws and regulations that apply to its activities, as well as preventing non- compliance and detecting any that occurs.

Other considerations

Limitation of liabilities and Changes in the law

Our work will not be an audit of the accounts in accordance with International Standards on Auditing (UK). This means that our work will not provide any assurance that the accounting records or the accounts are free from material misstatement, whether caused by fraud or other irregularities or error. It also means that we are unable to provide any assurance as to whether the accounts present a true and fair view.

We will not accept responsibility if you act on advice previously given by us without first confirming with us that the advice is still valid in light of any change in the law or the company’s circumstances.

We will accept no liability for losses arising from changes in the law or the interpretation thereof that occur after the date on which the advice is given.

We would like to emphasise that we cannot undertake to discover any shortcomings in your systems or any irregularities on the part of your employees. However, we will advise you if we come across anything of this nature in the course of preparing the management accounts.

Benefits-in-kind (P11D) Returns

Benefits-in-kind Returns

(Forms P11D and declaration P11D) and class 1A national insurance contributions (NIC)

Recurring compliance work

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

We will prepare or review form P11D to include the class 1A NIC on benefits-in-kind (BiK) and expenses, both on forms P11D and included in payroll.

We will submit the forms P11D for any benefits/employees for whom benefits are provided but not payrolled with the form P11D online after the form P11D has been approved in writing by you.

We will prepare and send to you the P11D information for you to forward to your employees and directors by the statutory due date of 6 July following the end of the tax year.

We will calculate your class 1A NIC liability on the benefits and expenses both returned in forms P11D and included in payroll that you are obliged to pay HMRC by the due date and send payment instructions to you.

Ad hoc and advisory work

Where you have instructed 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 services will be subject to the terms of this engagement letter and standard terms and conditions of business unless we decide to issue a separate engagement letter. An additional fee may be charged for these services. Examples of such work include:

assisting you with calculating the values for tax and NIC of benefits-in-kind (BiK) provided to employees, including when provided by way of salary sacrifice and other optional remuneration arrangements

dealing with compliance checks or enquiries opened into the BiK returns by HMRC

preparing any amended returns that may be required and corresponding with HMRC as necessary

advising on PAYE settlement agreements and/or approved expenses scale rates

conducting PAYE and benefits health checks.

Where specialist advice is required, we may need to seek this from or refer you to appropriate specialists. We will only do this when instructed by the nominated person.

Changes in the law or public policy and practice

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 or public policy and practice or your circumstances.

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

Your responsibilities

You are legally responsible for:

ensuring that your declaration on form P11D is true to the best of your knowledge and belief, and therefore that the entries on the related forms P11D and amounts of benefits in kind and expenses in the payroll are correct and complete

filing any returns by the due date after the end of the tax year

paying class 1A NIC on time.

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

Legal responsibility for approval of the return cannot be delegated to others. The nominated individual agrees to check that the forms that we have prepared for you are complete before they approve them.

To enable us to carry out our work you agree:

that all returns are to be made on the basis of full disclosure

to provide full information necessary for dealing with your BiK returns; we will rely on the information and documents being true, correct and complete, and will not audit the information or those documents

to notify us within 60 working days after the end of the tax year of all transactions or events that 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

to authorise us to approach such third parties as may be appropriate that we consider necessary to deal with completing the BiK returns.

If the information required to complete the BiK returns set out above is received more than 60 days after the end of the tax year, we will still endeavour to process the information onto the BiK returns to meet the submission date but we will not be liable for any costs or other losses arising if submission is late in these circumstances.

Where you wish us to deal with HMRC communications you will forward to us all communications received from HMRC. These must be provided in time to enable us to deal with them as may be necessary within the statutory time limits. 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.

Our services as detailed above are subject to the limitations on our liability set out in the engagement letter and in our standard terms and conditions of business. These are important provisions, which you should read and consider carefully.

Director RTI (Payroll) Recurring compliance work

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) deductions

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/Paternity Pay

5 Calculating other statutory and non statutory deductions

We will prepare and send to you the following documents for each payroll period at or before the time of payment:

1 Payroll summary report showing the reconciliation from gross to net for each employee and all relevant payroll totals

2 A payslip for each employee unless not required

3 A P45 for each leaver

4 A report showing your PAYE and NIC liability and due date for payment

We will prepare and send to you the following documents by the statutory due dates at the end of the payroll year:

1 Form P60 for each employee on the payroll at the year end

2 P60 for all staff who were on the payroll during the payroll year

We will submit your final Full Payment Submission (FPS) for the tax year.

To complete all necessary HMRC RTI submissions on your behalf following you meeting ‘Your Responsibilities’ (Aston Shaw cannot be held responsible for HMRC actions where you have failed to comply with ‘Your Responsibilities’)

Ad hoc and advisory work

We will also provide such other taxation ad hoc and advisory services as may be agreed from time to time. These may be the subject of a separate engagement letter, at our option. Where appropriate we will discuss and agree an additional fee for such work when it is commissioned by you. Examples of such work include:

1 dealing with any enquiry opened into the payroll returns by HMRC

2 preparing any amended returns which may be required and corresponding with HMRC as necessary

3 Where specialist advice is required on occasions we may need to seek this from or refer you to appropriate specialists.

Changes in the law

We will not accept responsibility if you act on advice previously given by us without first confirming with us that the advice is still valid in light of any change in the law or your circumstances.

We will accept no liability for losses arising from changes in the law or the interpretation thereof that occur after the date on which the advice is given.

Your responsibilities

You are legally responsible for:

1 ensuring that your payroll returns are correct and complete;

2 filing any returns by the due date; and

3 making payment of tax and NIC on time.

Failure to do this may lead to automatic penalties, surcharges and/or interest.

Signatories to returns cannot delegate this legal responsibility to others. You agree to check that returns we have prepared for you are correct and complete before you approve and sign them.

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 payroll 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 agree with us the names of the persons authorised by you to notify us of changes in employees and in rates of pay. We will process the changes only if notified by that/those individuals;

4 to advise us in writing of changes of payroll pay dates;

5 to notify us at least 15 working days prior to the payroll 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 details of their remuneration packages
all leavers and details of termination arrangements
all remuneration changes
all pension scheme changes
any changes to the employees’ bank accounts;

6 you will keep us informed of material changes in circumstances that could affect the payroll of the business. If you are unsure whether the change is material or not please let us know so that we can assess the significance or otherwise; and

7 to authorise us to approach such third parties as may be appropriate for information that we consider necessary to deal with your affairs.

If the information required to complete the payroll services set out above is received less than 5 days before the payroll date we will still endeavour to process the payroll to meet the agreed payroll date but we will not be liable for any costs or other losses arising if the payroll is late in these circumstances. We may charge an additional fee of for work carried out in a shorter time period.

Independent Examination Report (Incorporated Charity)

SCHEDULE OF PROFESSIONAL SERVICES: INDEPENDENT EXAMINATION OF THE ACCOUNTS

The purpose of this schedule is to set out the basis on which we are to perform an independent examination of the accounts for the charitable company.

Responsibilities of trustees and independent examiners

As trustees of the charitable company, you are responsible for maintaining adequate accounting records and an appropriate system of internal control for the charitable company. You are also responsible for preparing the annual report and accounts which give a true and fair view and have been prepared in accordance with United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and the Companies Act 2006 and regulations thereunder.

As trustees of a charitable company, you have a duty under the Companies Act 2006 to prepare a directors’ report and also an annual report for each financial year complying in its form and content with regulations made under the Charities Act 2011. You should also have regard to the Statement of Recommended Practice (SORP) ‘Accounting and Reporting by Charities’ 2015 (FRS 102), issued by the joint SORP-making body, and any subsequent amendments or variations to this statement.

Under the Charities Act 2011 we have a statutory responsibility to state whether or not any matters have come to our attention to which in our opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached, and to report whether or not any matter has come to our attention in connection with the examination which gives us reasonable cause to believe that in any material respect:

accounting records have not been kept by the charitable company in accordance with Section 386 Companies Act 2006;
the accounts are not in agreement with the accounting records; and
the accounts do not comply with the accounting requirements of Section 396 Companies Act 2006 and with the methods and principles of the SORP.

We are also required to report any of the following matters that have become apparent during the course of our examination:

whether there has been any material expenditure or action which appears not to be in accordance with the trusts of the charitable company;
whether any information or explanation to which we are entitled under regulation 33 of the Charities (Accounts and Reports) Regulations 2008 has not been afforded to (me) (us): and
whether any information in the trustees’ statutory annual report is inconsistent in any material respect with that in the accounts.

We shall plan our work on the basis that an examination report is required for the year, unless you inform (me) (us) in writing that either:

the charitable company requires an audit of the accounts; or
the charitable company requires neither an audit nor an examination report.

Should you instruct us to carry out an audit, then a separate letter of engagement will be required.

Should you inform us that the charitable company requires neither an audit nor an examination, then we shall have no responsibilities to the charitable company, except those specifically agreed upon between us in respect of other professional services.

Should our work lead us to conclude that the charitable company is not entitled to exemption from an audit of the accounts, or should we be unable to reach a conclusion on this matter, then we will not issue any report and will notify you in writing of the reasons. In these circumstances, if appropriate, we will discuss with you the need to appoint an auditor.

We have a statutory duty to report to the Charity Commission (CC) under section 156 of the Charities Act 2011 such matters (concerning the activities or affairs of the charitable company or any connected institution or body corporate) of which we become aware during the course of our examination which are (or are likely to be) of material significance to the CC in the exercise of their powers of inquiry into, or acting for the protection of, charities.

In common with all accountancy and legal practices, we are required by the Proceeds of Crime Act 2002 and the Money Laundering Regulations to:

have due diligence procedures for the identification of all clients;
maintain appropriate records of evidence to support customer due diligence; and
report in accordance with the relevant legislation and regulations.

Scope of examination

Our examination will be conducted in accordance with the CC’s ‘Independent examination of charity accounts: Directions and Guidance for examiners’ (CC32). Our procedures will consist of comparing the accounts with the accounting records, vouching some material / significant transactions, making limited enquiries of the officers of the charitable company and only in certain circumstances seeking independent evidence to support entries in the accounting records, or the presentation of the accounts. We shall also review the trustees’ report and discuss with you the financial circumstances of the charitable company at the end of the year.

Our examination is not designed to identify all significant weaknesses in the charitable company’s systems but, if such weaknesses come to our notice during the course of our examination which we think should be brought to your attention, we shall report them to you. Any such report may not be provided to third parties without our prior written consent. Such consent will be granted only on the basis that such reports are not prepared with the interests of anyone other than the charitable company in mind and that we accept no duty or responsibility to any other party as concerns the reports.

As part of our normal procedures, we may request you to provide written confirmation of oral representations which we have received from you during the course of the examination on matters having a material effect on the account and statement.

In order to assist us with the examination of your accounts, we shall request sight of all documents or statements, including the trustees’ annual report, which are due to be issued with the accounts. If it is proposed that any documents or statements which refer to our name, other than the examined accounts, are to be circulated to third parties, please consult us before they are issued.

The responsibility for safeguarding the assets of the charitable company and for the prevention and detection of fraud, error and non-compliance with laws or regulations rests with yourselves. Our examination should not be relied upon to disclose all material misstatements or frauds, errors or instances of non-compliance as may exist.

We shall not be treated as having notice, for the purposes of our examination responsibilities, of information provided to members of our firm other than those engaged on the examination.

Once we have issued our report we have no further direct responsibility in relation to the accounts for that financial year.

Business Valuation

You have asked us to specifically review the value of your business.

Our Service to you

We will undertake the above assignment and provide you with a report and recommendations together with any relevant schedules on the basis of information provided by you.

We will approach third parties as appropriate for information as directed and authorised by you only.

We will provide you with calculations of the estimated tax effect of any strategy recommended by us.

We will, if appropriate, liaise with any third party to assist in carrying out any process to implement any strategy recommended by us.

We will prepare any claims or elections relevant to any proposed strategy and forward them as appropriate for signature and thereafter submit them to H M Revenue and Customs as appropriate.

Should any strategy recommended and undertaken result in payment of taxes we will advise you of the due dates of payment and the consequences of non payment of those taxes.

Your responsibilities

To enable us to carry out our work, you agree to make full disclosure of all income, charges, assets and liabilities where- so-ever situated in the world and full information necessary to undertake the assignment.

To respond quickly and fully to our requests for information and to other communications from us.

We will provide our professional services outlined in this letter with reasonable care and skill. However, we will not be responsible for any losses, penalties, surcharges interest or additional tax liabilities arising from the supply by you or others of incorrect information, or your or others’ failure to supply any appropriate information or your failure to act on our advice or respond promptly to communications from us.

Communications with third parties

You agree that we can approach third parties as appropriate for information that we consider necessary to deal with the assignment.

Independent Examination Report (Unincorporated Charity)

SCHEDULE OF PROFESSIONAL SERVICES: INDEPENDENT EXAMINATION OF THE ACCOUNTS

The purpose of this schedule is to set out the basis on which we are to perform an independent examination of the accounts for the charity.

1. Responsibilities of trustees and independent examiners

1 As trustees of the charity, you are responsible for maintaining proper accounting records and an appropriate system of internal control for the charity [and for preparing the account and statement in accordance with the Charities Act 2011 and regulations thereunder.] [and you are also responsible for preparing the annual report and accounts which give a true and fair view and have been prepared in accordance with (United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and the Charities Act 2011 (“the Act”) and regulations thereunder.]

2 [In accordance with the Charities Act 2011 section 133, where the charity’s gross income in any financial year does not exceed £250,000, the charity’s trustees may elect to prepare a receipts and payments account and a statement of assets and liabilities as its annual statement of accounts. You have elected to prepare such an account and statement.]1

[As trustees of a charity, you are under a duty to prepare an annual report for each financial year complying in its form and content with regulations made under the Charities Act 2011. You should also have regard to the Statement of Recommended Practice (SORP) ‘Accounting and Reporting by Charities’ 2015 (FRS 102), issued by the joint SORP-making body, and any subsequent amendments or variations to this statement.]2

3 Under the Charities Act 2011 we have a statutory responsibility to state whether or not any matters have come to our attention to which in our opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached, and to report whether or not any matter has come to our attention in connection with the examination which gives us reasonable cause to believe that in any material respect:

accounting records have not been kept by the charity in accordance with Section 130 Charities Act 2011;
the [account and statement]1 [accounts]2 are not in agreement with the accounting records; and
the [account and statement]1 [accounts]2 do not comply with the accounting requirements of the Charities Act 2011.

4 We are also required to report any of the following matters that have become apparent during the course of our examination:

whether there has been any material expenditure or action which appears not to be in accordance with the trusts of the charity; [and]1
whether any information or explanation to which we are entitled under regulation 33 of the Charities (Accounts and Reports) Regulations 2008 has not been afforded to us; [and
whether any information in the trustees’ statutory annual report is inconsistent in any material respect with that in the accounts.]2

5 We shall plan our work on the basis that an examination report is required for the year, unless you inform us in writing that either:

the charity requires an audit of the accounts; or
the charity requires neither an audit nor an examination report.

6 Should you instruct us to carry out an audit, then a separate letter of engagement will be required.

7 Should you inform us that the charity requires neither an audit nor an examination, then we shall have no responsibilities to the charity, except those specifically agreed upon between us in respect of other professional services.

8 Should our work lead us to conclude that the charity is not entitled to exemption from an audit of the accounts, or should we be unable to reach a conclusion on this matter, then we will not issue any report and will notify you in writing of the reasons. In these circumstances, if appropriate, we will discuss with you the need to appoint an auditor.

9 We have a statutory duty to report to the Charity Commission (CC) under section 156 of the Charities Act 2011 such matters (concerning the activities or affairs of the charity or any connected institution or body corporate) of which we become aware during the course of our examination which are (or are likely to be) of material significance to the CC in the exercise of their powers of inquiry into, or acting for the protection of, charities.

10 In common with all accountancy and legal practices, we are required by the Proceeds of Crime Act 2002 and the Money Laundering Regulations to:

have due diligence procedures for the identification of all clients;
maintain appropriate records of evidence to support customer due diligence; and
report in accordance with the relevant legislation and regulations.

2. Scope of examination

1 Our examination will be conducted in accordance with the CC’s ‘Directions and Guidance Notes for the Carrying out of an Independent Examination’. Our procedures will consist of comparing the accounts with the accounting records, vouching some material / significant transactions, making limited enquiries of the officers of the charity and only in certain circumstances seeking independent evidence to support entries in the accounting records, or the presentation of the accounts. We shall also review the trustees’ report and discuss with you the financial circumstances of the charity at the end of the year.

2 Our examination is not designed to identify all significant weaknesses in the charity’s systems but, if such weaknesses come to our notice during the course of our examination which we think should be brought to your attention, we shall report them to you. Any such report may not be provided to third parties without our prior written consent. Such consent will be granted only on the basis that such reports are not prepared with the interests of anyone other than the charity in mind and that we accept no duty or responsibility to any other party as concerns the reports.

3 As part of our normal procedures, we may request you to provide written confirmation of oral representations which we have received from you during the course of the examination on matters having a material effect on the account and statement.

4 In order to assist us with the examination of your accounts, we shall request sight of all documents or statements, including the trustees’ annual report, which are due to be issued with the accounts. If it is proposed that any documents or statements which refer to our name, other than the examined accounts, are to be circulated to third parties, please consult us before they are issued.

5 The responsibility for safeguarding the assets of the charity and for the prevention and detection of fraud, error and non- compliance with laws or regulations rests with yourselves. Our examination should not be relied upon to disclose all material misstatements or frauds, errors or instances of non-compliance as may exist.

6 We shall not be treated as having notice, for the purposes of our examination responsibilities, of information provided to members of our firm other than those engaged on the examination.

7 Once we have issued our report, we have no further direct responsibility in relation to the accounts for that financial year.

– For receipts and payments accounts only.

– For accruals accounts only. Rental Accounts

Our Service to You

To ensure that anyone reading the accounts is aware that we have not carried out an audit, we will attach to the accounts a report stating this fact.

The intended user of the report is the owner. The report will be addressed to the owner.

We will communicate with the business at its place of business, this being the address above. Any alteration to these instructions will require notification in writing and agreement by the owner.

As part of our normal procedures we may request you to provide written confirmation of any oral information and explanations given to us during the course of our work.

Your Responsibilities: Provision of Information by You

You are legally responsible for making correct returns by the due date and for payment of tax on time. Failure to meet the deadlines may result in automatic penalties, surcharges and/or interest.

To enable us to carry out our work you agree:

That all returns are to be made on the basis of full disclosure of all sources of income, charges, allowances and capital transactions;

To provide full information necessary for dealing with your affairs: we will rely on the information and documents being true, correct and complete and will not audit the information or those documents;

That we can approach such third parties as may be appropriate for information that we consider necessary to deal with your affairs;

To provide us with information in sufficient time for your tax return to be completed and submitted by the 31 January following the end of the tax year. In order that we can do this, we need to receive all relevant information by 31st October.

To forward to us on receipt copies of all Inland Revenue statements of account, PAYE coding notices, notices of assessment, letters and other communications received from the Inland Revenue to enable us to deal with them as may be necessary within the statutory time limits; and

To keep us informed about significant changes in your circumstances if they are likely to affect your tax position

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 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 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.

Non-resident Capital Gains Tax return

Ad hoc and advisory work

We will prepare your non-resident capital gains tax returns together with any supplementary pages required from the information and explanations that you provide to us. After obtaining your approval and signature, we will submit your returns to HM Revenue & Customs (HMRC).

We will calculate any capital gains tax liabilities and tell you how much you should pay and when. We will advise on the interest, penalty and surcharge implications if tax is paid late. We will also check HMRC’s calculation of your tax liabilities and initiate repayment claims if tax has been overpaid.

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

We will also provide such other taxation ad hoc and advisory services as may be agreed from time to time. These may be the subject of a separate engagement letter. Where appropriate we will discuss and agree on an additional fee for such work when it is commissioned by you. Examples of such work include:

1 advising on ad hoc transactions, preparing additional supplementary pages to your tax return and calculating any related liabilities

2 dealing with any enquiry opened into your tax return by HMRC

3 preparing any amended returns which may be required and corresponding with HMRC as necessary

4 advising on the rules relating to and assisting with VAT registration

Where specialist advice is required on occasions we may need to seek this from or refer you to appropriate specialists.

Changes in the law

We will not accept responsibility if you act on advice previously given by us without first confirming with us that the advice is still valid in light of any change in the law or your circumstances.

We will accept no liability for losses arising from changes in the law or the interpretation thereof that occur after the date on which the advice is given.

Your responsibilities

You are legally responsible for:

1 ensuring that your non-resident capital gains tax returns are correct and complete;

2 filing any returns by the due date; and

3 making payment of tax on time.

Failure to do this may lead to automatic penalties, surcharges and/or interest.

Taxpayers who sign their returns cannot delegate this legal responsibility to others. You agree to check that returns we have prepared for you are complete before you approve and sign them.

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 capital gains and/or losses.

2 to provide full information necessary for dealing with your affairs: we will rely on the information and documents being true, correct and complete and will not audit the information or those documents;

3 to authorise us to approach such third parties as may be appropriate for information that we consider necessary to deal with your affairs; and

4 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.

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 or not please let us know so that we can assess the significance or otherwise.

You will forward to us HMRC statements of account, copies of notices of assessment, letters and other communications received from HMRC 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 through the form 64-8 it is essential that you let us have copies of any correspondence received from HMRC to avoid any breakdown in communication.

You and your spouse/partner

We shall 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. If you wish to make any change to these arrangements at any time, please let us know.

HR Consultancy & Advice

1. Introduction

This document sets out the terms on which we accept instructions for our services. Our aim is to provide you with a professional HR advice & consultancy service which meets your requirements in a cost-effective manner.

2. Authority to Give Instructions

Unless we are acting for you personally you should tell us at the outset who is authorised to give us instructions. Unless we are advised to the contrary, we will assume that we are authorised to accept instructions from any person whom we reasonably believe to have authority to give instructions to us.

We will and can act on instructions given orally, or via electronic communication.

3. Our Responsibilities

We will provide the services in accordance with your instructions. Unless otherwise specified in your instructions, all times, dates and prices are estimates only and may vary as a result of, without limit, the level of changes requested by you.

We are responsible for delivering the services with all reasonable skill and care, and in full compliance of relevant established professional standards.

Aston Shaw Limited is not a firm of solicitors and therefore is not regulated by the Solicitors Regulation Authority. Use of our services does not create a solicitor-client relationship.

4. Your Responsibilities

You are responsible for:

Ensuring any information you provide is complete and accurate
Being on time to any planned meetings or events
Making any payments due to us in a timely manner

5. Access and Communication

We are contactable on working days between 09.00 and 17.00.

All telephone calls and other correspondence will be responded to as soon as possible. All communication will be via electronic means unless you specifically request otherwise.

6. Communications with third parties

You agree that we can approach third parties as appropriate for information that we consider necessary to deal with the assignment.

Furloughed Employees HMRC Reimbursement Claim

Payroll – Furlough HMRC Reimbursement Service

Recurring compliance work

We will prepare your payroll calculations for furloughed staff.
We will add your furloughed staff and associated calculations to the HMRC portal for claiming reimbursement & submit.

Changes in the law

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

Your responsibilities

You are legally responsible for:

1 ensuring that your furlough reimbursement submissions are correct and complete;

2 filing any returns by the due date; and

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 payroll/furlough 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 us with your own HMRC Gateway ID and password if you have not given us authority to add you to ours previously;

4 to provide us with your designated bank account to receive your reimbursement in;

5 to notify us at least 5 working days prior to the furlough submission of events which may need to be reflected in the furlough reimbursement claim for the period,

6 you will keep us informed of material changes in circumstances that could affect the payroll of the business. If you are unsure whether the change is material or not please let us know so that we can assess the significance or otherwise; and

7 to authorise us to approach such third parties as may be appropriate for information that we consider necessary to deal with your affairs.

Agreement of Terms

This letter supersedes any previous engagement letter for the period covered. Once it has been agreed, this letter will remain effective until it is replaced.
You or we may vary or terminate our authority to act on your behalf at any time without penalty. Notice of variation or termination must be given in writing.
We would be grateful if you could confirm your agreement to the terms of this letter by signing the enclosed copy and returning it to us immediately.
If this letter is not in accordance with your understanding of the scope of our engagement or your circumstances have changed, please let us know.
This letter should be read in conjunction with the firm’s standard terms and conditions.
We reserve the right to add collection costs, late payment interest and compensation at the statutory amounts.
Work will commence once Aston Shaw Limited is in receipt of this completed agreement.

Recurring Compliance Work – Payroll

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) deductions

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/Paternity Pay

5 Calculating other statutory and non statutory deductions

We will prepare and send to you the following documents for each payroll period at or before the time of payment:

1Payroll summary report showing the reconciliation from gross to net for each employee and all relevant payroll totals

2 A payslip for each employee unless not required

3 A P45 for each leaver

4 A report showing your PAYE and NIC liability and due date for payment

We will prepare and send to you the following documents by the statutory due dates at the end of the payroll year:

1 Form P60 for each employee on the payroll at the year end

2 P60 for all staff who were on the payroll during the payroll year

We will submit your final Full Payment Submission (FPS) for the tax year.

To complete all necessary HMRC RTI submissions on your behalf following you meeting ‘Your Responsibilities’ (Aston Shaw cannot be held responsible for HMRC actions where you have failed to comply with ‘Your Responsibilities’)

Ad hoc and advisory work

We will also provide such other taxation ad hoc and advisory services as may be agreed from time to time. These may be the subject of a separate engagement letter, at our option. Where appropriate we will discuss and agree an additional fee for such work when it is commissioned by you. Examples of such work include:

1 dealing with any enquiry opened into the payroll returns by HMRC

2 preparing any amended returns which may be required and corresponding with HMRC as necessary

3 Where specialist advice is required on occasions we may need to seek this from or refer you to appropriate specialists.

Changes in the law

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

Your responsibilities

You are legally responsible for:

1 ensuring that your payroll returns are correct and complete;

2 filing any returns by the due date; and

4 making payment of tax and NIC on time.

Failure to do this may lead to automatic penalties, surcharges and/or interest.

Signatories to returns cannot delegate this legal responsibility to others. You agree to check that returns we have prepared for you are correct and complete before you approve and sign them.

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 payroll 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 agree with us the names of the persons authorised by you to notify us of changes in employees and in rates of pay. We will process the changes only if notified by that/those individuals;

4 to advise us in writing of changes of payroll pay dates;

5 to notify us at least 15 working days prior to the payroll 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 details of their remuneration packages
all leavers and details of termination arrangements
all remuneration changes
all pension scheme changes
any changes to the employees’ bank accounts;

6 you will keep us informed of material changes in circumstances that could affect the payroll of the business. If you are unsure whether the change is material or not please let us know so that we can assess the significance or otherwise; and

7 to authorise us to approach such third parties as may be appropriate for information that we consider necessary to deal with your affairs.

If the information required to complete the payroll services set out above is received less than 5 days before the payroll date we will still endeavour to process the payroll to meet the agreed payroll date but we will not be liable for any costs or other losses arising if the payroll is late in these circumstances. We may charge an additional fee of for work carried out in a shorter time period.

Capital Gains Tax Return

Ad hoc and advisory work

We will prepare your capital gains tax returns together with any supplementary pages required from the information and explanations that you provide to us. After obtaining your approval and signature, we will submit your returns to HM Revenue & Customs (HMRC).

We will calculate any capital gains tax liabilities and tell you how much you should pay and when. We will advise on the interest, penalty and surcharge implications if tax is paid late. We will also check HMRC’s calculation of your tax liabilities and initiate repayment claims if tax has been overpaid.

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

We will also provide such other taxation ad hoc and advisory services as may be agreed from time to time. These may be the subject of a separate engagement letter. Where appropriate we will discuss and agree on an additional fee for such work when it is commissioned by you. Examples of such work include:

1 advising on ad hoc transactions, preparing additional supplementary pages to your tax return and calculating any related liabilities

2 dealing with any enquiry opened into your tax return by HMRC

3 preparing any amended returns which may be required and corresponding with HMRC as necessary

4 advising on the rules relating to and assisting with VAT registration

5 Where specialist advice is required on occasions we may need to seek this from or refer you to appropriate specialists.

Changes in the law

We will not accept responsibility if you act on advice previously given by us without first confirming with us that the advice is still valid in light of any change in the law or your circumstances.

We will accept no liability for losses arising from changes in the law or the interpretation thereof that occur after the date on which the advice is given.

Your responsibilities

You are legally responsible for:

1 ensuring that your UK capital gains tax returns are correct and complete;

2 filing any returns by the due date; and

3 making payment of tax on time.

Failure to do this may lead to automatic penalties, surcharges and/or interest.

Taxpayers who sign their returns cannot delegate this legal responsibility to others. You agree to check that returns we have prepared for you are complete before you approve and sign them.

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 capital gains and/or losses.

2 to provide full information necessary for dealing with your affairs: we will rely on the information and documents being true, correct and complete and will not audit the information or those documents;

3 to authorise us to approach such third parties as may be appropriate for information that we consider necessary to deal with your affairs; and

4 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.

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 or not please let us know so that we can assess the significance or otherwise.

You will forward to us HMRC statements of account, copies of notices of assessment, letters and other communications received from HMRC 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 through the form 64-8 it is essential that you let us have copies of any correspondence received from HMRC to avoid any breakdown in communication.

You and your spouse/partner

We shall 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. If you wish to make any change to these arrangements at any time, please let us know.

Bookkeeping & Financial Reporting

Bookkeeping

Our responsibility to you

We have set out the agreed scope and objectives of your instructions within this letter of engagement. Any subsequent changes will be discussed with you and where appropriate a new letter of engagement will be agreed. We shall proceed on the basis of the instructions we have received from you and will rely on you to tell us as soon as possible if anything occurs which renders any information previously given to us as incorrect or inaccurate. We shall not be responsible for any failure to advise or comment on any matter that falls outside the specific scope of your instructions. We cannot accept any responsibility for any event, loss or situation unless it is one against which it is the expressed purpose of these instructions to provide protection.

Your responsibility to us

The advice that we give can only be as good as the information on which it is based. In so far as that information is provided by you, or by third parties with your permission, your responsibility arises as soon as possible if any circumstances or facts alter, as any alteration may have a significant impact on the advice given. If the circumstances change therefore or your needs alter, advise us of the alteration as soon as possible in writing.

Responsibilities

You are responsible for providing us with the following information required for us to prepare the accounting records:

1 Sales invoices.

2 Purchase invoices.

3 Bank statements.

4 Details of bank and cash payments.

5 Details of bank and cash receipts.

6 Stock and work-in-progress details.

7 Access to your accounting records.

We have also agreed that you will provide the following:

1 A record of the amounts owed to the business.

2 A record of amounts owed by the business.

3 A list of accruals.

4 A list of prepayments.

Our service to you

We will prepare from the information and explanations provided by you, your books of prime entry as follows:

1 Records of bank receipts and payments.

2 Records of cash receipts and payments.

3 Reconciliations of the bank and cash control accounts.

4 A record of sales.

5 A record of purchases.

6 A record of amounts owed to the business.

7 A record of amounts owed by the business.

8 A list of accruals.

9 A list of prepayments.

Management Accounts & Performance Reporting

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

Our Responsibilities – What we agree to do and be responsible for:

Prepare the management accounts for your approval based on the accounting records you maintain. We will also rely on any information and explanations you give us.

Include a report in the accounts. This report will point out that we have not carried out an audit but have compiled the management accounts from the accounting records and information and explanations supplied to us.

Your Responsibilities – What you agree to do and be responsible for

Unless we have also agreed to carry out a bookkeeping service you are responsible for all the day-to-day accounting work. This will include:

keeping the record of receipts and payments;
reconciling your records with the bank statement;
maintaining records of debtors and creditors;
carrying out or arranging for a valuation of the period-end stock levels; and
preparing details of any period-end work-in-progress.

You agree to make your accounting records and related financial information available to us in line with the requests we make. You recognise that a failure to do so could have an impact on the price or the speed of our work.

Even if we have not directly requested it, you agree to disclose to us in full any information that is relevant to the management accounts.

You will approve and sign the management accounts thereby acknowledging responsibility for them, including providing us with all information and explanations necessary for their preparation.

We have a professional responsibility to not allow our name to be associated with accounts that we believe may be misleading. We are not required to search for such matters, but if we become aware that information in the management accounts may be misleading we will discuss this with you so that appropriate adjustments or disclosures can be made. Where the adjustments or disclosures we consider appropriate are not made and we consider that the accounts remain misleading, we will withdraw from the engagement. In these circumstances you agree that we have a right to invoice you for our time spent preparing and discussing the accounts with you as well as time spent on any other work that is not completed as part of our resignation.

Our report is prepared solely for your confidential use and solely for the purpose set our above. You may not rely upon it for any other purpose whatsoever. Our report must not be made available, copied or recited to any other party. We neither owe nor accept any duty to any other party and shall not be liable for any loss, damage or expense of whatsoever nature which is caused by their reliance on our report.

You are responsible for the following general business and financial matters:

Ensuring that, to the best of your knowledge and belief, financial information used by your business or for the management accounts is accurate and complete;
Ensuring that the activities of your business are being conducted honestly;
Safeguarding the assets of your business and taking reasonable steps for the prevention and detection of fraud; and
Ensuring your business complies with the laws and regulations that apply to its activities, as well as preventing non- compliance and detecting any that occurs.

Other considerations

Limitation of liabilities and Changes in the law

Our work will not be an audit of the accounts in accordance with International Standards on Auditing (UK). This means that our work will not provide any assurance that the accounting records or the accounts are free from material misstatement, whether caused by fraud or other irregularities or error. It also means that we are unable to provide any assurance as to whether the accounts present a true and fair view.

We will not accept responsibility if you act on advice previously given by us without first confirming with us that the advice is still valid in light of any change in the law or the company’s circumstances.

We will accept no liability for losses arising from changes in the law or the interpretation thereof that occur after the date on which the advice is given.

We would like to emphasise that we cannot undertake to discover any shortcomings in your systems or any irregularities on the part of your employees. However, we will advise you if we come across anything of this nature in the course of preparing the management accounts.

Charity Accounts

SCHEDULE OF PROFESSIONAL SERVICES: ACCOUNTING

The purpose of this schedule to our engagement letter is to set out the basis on which we are to compile the statutory financial statements and perform other accounting services.

1 Responsibilities of the trustees

1 Your responsibilities as trustees are set out below.

2 You have agreed that your staff will be responsible for:

keeping the record of receipts and payments;
reconciling the balances monthly with the bank statements;
keeping posted and balanced the accounting ledgers;
preparing a detailed list of ledger balances;

3 You have undertaken to make available to us, as and when required, all the accounting records and related financial information, including minutes of management and Board meetings necessary for the compilation of the accounts. You will make full disclosure to us of all relevant information.

2 Role of the accountants

1 You have asked us to help you compile the statutory financial statements in accordance with the requirements of the Companies Act 2006 and Charities Act 2011 and regulations made under it and with the Statement of Recommended Practice (SORP) ‘Accounting and Reporting by Charities’ (FRS 102) issued October 2019. We will compile the annual financial statements for your approval based on the accounting records maintained by you and the information and explanations given to us by you. In carrying out our engagement we will make enquiries of management and undertake any procedures that we judge appropriate.

2 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. Where we identify that the financial statements do not conform with the requirements of legislation or with the guidance issued by the Charity Commission, or if the accounting policies adopted are not immediately apparent, this will need to be disclosed in the financial statements.

3 Our responsibilities will include assisting with the charities’ independent examiner where necessary.

3 Other accounting services

1 We will also carry out the following services as your agents on the basis that you will make full disclosure to us of all relevant information:

providing assistance in preparing and lodging returns with the Registrar of Companies and the Charity Commission; and
investigating irregularities and fraud upon receiving specific instructions.

LLP Accounts

SCHEDULE OF PROFESSIONAL SERVICES: COMPILATION OF STATUTORY FINANCIAL STATEMENTS

The purpose of this schedule to our engagement letter is to set out the basis on which we are to compile the statutory financial statements.

Responsibilities of the members

1 As you consider that the LLP qualifies as a micro-entity in accordance with the conditions set out in sections 384A and 384B of the Companies Act 2006 (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008), you have expressed your preference that the LLP’s financial statements are prepared in accordance with the provisions in that Act applicable to a micro-entity. In particular, you have requested that the financial statements comprise only of the micro-entity minimum accounting items set out in regulations made under the Act.

2 As members of the above LLP, in addition to your general duties under the Companies Act 2006 (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008), you are responsible for keeping adequate accounting records that are sufficient to show and explain the LLP’s transactions and disclose with reasonable accuracy at any time the financial position of the LLP and to enable you to ensure that the financial statements comply with the Companies Act 2006 (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008). You are also responsible for preparing financial statements which give a true and fair view, have been prepared in accordance with United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and the Companies Act 2006 (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008) and regulations made under it, all as applicable to a micro-entity.

3 In preparing the financial statements, you are required to:

select suitable accounting policies and then apply them consistently;
make judgements and estimates that are reasonable and prudent; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the LLP will continue in business.

4 You also have a responsibility not to approve these financial statements unless you are satisfied that they give a true and fair view of the assets, liabilities, financial position and profit and loss of the LLP.

5 Your responsibility for preparation of the financial statements extends to the application of exemptions and options on transition to, and application of, new accounting standards. As members of the LLP you should also consider the impact of new accounting standards on the business, including the impact on going concern.

6 You are responsible for safeguarding the assets of the LLP and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

7 You are also responsible for determining whether, in respect of the year, the LLP meets the conditions for exemption from an audit of the accounts set out in section 477 [or 480] of the Companies Act 2006 (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008), and for determining whether, in respect of the year, the exemption is not available for any of the reasons set out in sections 478 and 479 [or 481].

8 You are responsible for ensuring that the LLP complies with the laws and regulations that apply to its activities, and for preventing non-compliance and for detecting any that occurs.

9 You have undertaken to make available to us, as and when required, all the LLP’s accounting records and related financial information, including minutes of management and members’ meetings necessary for the compilation of the accounts. You will make full disclosure to us of all relevant information.

10 You have agreed that your staff will be responsible for:

keeping the record of receipts and payments;
reconciling the balances monthly with the bank statements;
keeping posted and balanced the purchase and sales ledgers;
preparing a detailed list of ledger balances;
preparing details of the annual stocktaking suitably priced and extended.

11 Where financial information is to be published, which includes a report by us or is otherwise connected to us, on the LLP’s website or by other electronic means, it is your responsibility to advise us of the intended electronic publication before it occurs and to ensure that any such publication properly presents the financial information and our report. We reserve the right to withhold consent to the electronic publication of our report if it, or the financial statements, are to be published in an inappropriate manner. It is your responsibility to ensure there are controls in place to prevent or detect quickly any changes to that information. We are not required to review such controls nor to carry out ongoing reviews of the information after it is first published. The maintenance and integrity of the LLP’s website is your responsibility and we accept no responsibility for changes made to such information after it is first posted.

Responsibilities of the accountants

1 As the LLP is totally exempt from audit, we have no statutory responsibilities to the LLP at all. Our only responsibilities arise from those specifically agreed upon between us in respect of other professional services.

2 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) as applicable to a micro-entity. We will compile the annual financial statements for your approval based on the accounting records maintained by you and the information and explanations given to us by you. As you have advised us that the LLP qualifies as a micro-entity and that you wish to take advantage of the provisions in Companies Act 2006 applicable to micro-entities (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008), these financial statements will comprise only micro-entity minimum accounting requirements unless you specifically request that an item of information additional to the minimum requirements is included. Where such a request is made, you are reminded that regard must be had to any provision of an accounting standard which relates to that item.

3 We shall 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. In carrying out our engagement 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.

4 You have advised us that the LLP is exempt from an audit of the financial statements. We will not check whether this is the case. However, should our work indicate that the LLP is not entitled to the exemption, we will inform you of this.

5 Our work will not be an audit of the financial statements in accordance with the International Standards on Auditing (UK). Consequently, our work will not provide any assurance that the accounting records or the financial statements are free from material misstatement, whether caused by fraud, other irregularities or error and cannot be relied on to identify weaknesses in internal controls.

6 Since we will not carry out an audit, nor confirm in any way the accuracy or reasonableness of the accounting records maintained by the LLP, we are unable to provide any assurance as to whether the financial statements that we prepare from those records present a true and fair view. We will, however, advise you on whether your records are adequate for the preparation of financial statements and recommend improvements.

7 We have a professional duty to compile financial statements that conform with generally accepted accounting principles as applicable to a micro-entity from the accounting records and information and explanations given to us. Furthermore, as members, you have a duty to prepare financial statements that comply with the Companies Act 2006 (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008), regulations made under that Act and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice (UK GAAP)), all as applicable to a micro-entity. Where we identify that the financial statements do not conform to UK GAAP as applicable to a micro-entity, we will discuss the matter with you with a view to agreeing appropriate adjustments in the financial statements.

8 We 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, should 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 in the financial statements. In circumstances where adjustments that we consider appropriate are not made or where 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 request you to provide written confirmation of any information or explanations given by you orally during the course of our work.

Other accounting services

1 We will also carry out the following services as your agents on the basis that you will make full disclosure to us of all relevant information:

providing assistance in preparing and lodging returns with the Registrar of Companies; and

investigating irregularities and fraud upon receiving specific instructions.

SDLT Refund Extension Letter

You have specifically asked us for tax planning & advice

Our Service to you

We will undertake the above assignment and provide you with a report and recommendations together with any relevant schedules on the basis of information provided by you.

We will approach third parties as appropriate for information as directed and authorised by you only.

We will provide you with calculations of the estimated tax effect of any strategy recommended by us.

We will, if appropriate, liaise with any third party to assist in carrying out any process to implement any strategy recommended by us.

We will prepare any claims or elections relevant to any proposed strategy and forward them as appropriate for signature and thereafter submit them to H M Revenue and Customs as appropriate.

Should any strategy recommended and undertaken result in payment of taxes we will advise you of the due dates of payment and the consequences of non payment of those taxes.

Your responsibilities

To enable us to carry out our work, you agree to make full disclosure of all income, charges, assets and liabilities where- so-ever situated in the world and full information necessary to undertake the assignment.

To respond quickly and fully to our requests for information and to other communications from us.

We will provide our professional services outlined in this letter with reasonable care and skill. However, we will not be responsible for any losses, penalties, surcharges interest or additional tax liabilities arising from the supply by you or others of incorrect information, or your or others’ failure to supply any appropriate information or your failure to act on our advice or respond promptly to communications from us.

Communications with third parties

You agree that we can approach third parties as appropriate for information that we consider necessary to deal with the assignment.

Statutory Audit (Incorporated Charity)

SCHEDULE OF PROFESSIONAL SERVICES: AUDIT OF THE FINANCIAL STATEMENTS

1 Responsibilities of trustees and auditors

1 As trustees of the charitable company, in addition to your general duties as specified in sections 170 to 177 of the Companies Act 2006, you are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and to enable you to ensure that the financial statements comply with the Companies Act 2006. You are also responsible for preparing financial statements which give a true and fair view and have been prepared in accordance with United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and the Companies Act 2006 and regulations made under it.

2 In preparing these financial statements, you are required to:

select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.

You also have a responsibility not to approve these financial statements unless you are satisfied that they give a true and fair view.

3 As trustees of a charitable company, you have a duty under the Companies Act 2006 to prepare a directors’ report and also an annual report for each financial year, complying in its form and content with regulations made under the Charities Act 2011. You should also have regard to the Statement of Recommended Practice (SORP) ‘Accounting and Reporting by Charities’ (FRS 102), issued [July 2014 / October 2019] by the joint SORP-making body, and any subsequent amendments or variations to this statement.

4 You are responsible for such internal control as you determine is necessary to enable the preparation of financial statements that are free from material misstatement whether due to fraud or error. Additionally, you are also responsible for safeguarding the assets of the charitable company, complying with laws and regulations and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

5 You are responsible for making available to us, as and when required, all the charitable company’s accounting records and all other relevant records and related information, including minutes of all trustees’ and management meetings and additional information that we may request. You will also provide us with unrestricted access to persons within the charitable company from whom we determine it is necessary to obtain audit evidence.

6 You are required to confirm in the directors’ report that so far as you are aware, there is no relevant audit information of which we, as the charitable company’s auditors, are unaware and that you have taken all the steps that you ought to take as directors in order to make yourselves aware of any relevant audit information and to establish that we are aware of that information. We are entitled to require from the charitable company’s officers and employees such other information and explanations as we think necessary for the performance of our duties as auditors.

7 We have a statutory responsibility to report to the trustees of the charitable company whether in our opinion the financial statements:

give a true and fair view of the state of the charitable company’s affairs as at the year end and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.

In addition, we have a statutory responsibility to report by exception if, in our opinion:

the information given in the financial statements is inconsistent in any material respect with the trustees’ report; or
the charitable company has not kept adequate accounting records; or
the financial statements are not in agreement with the accounting records and returns; or
we have not received all the information and explanations we require for our audit.

If we have nothing to report in respect of the above matters we will include a statement in our report confirming this.

8 We have a professional responsibility to report if the financial statements do not comply in any material respect with applicable accounting standards, unless in our opinion the non-compliance is justified in the circumstances. In determining whether or not the departure is justified we consider whether:

the departure is required in order for the financial statements to give a true and fair view; and
adequate disclosure has been made concerning the departure.

9 As noted above, our report will be made solely to the charitable company’s trustees as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work will be undertaken so that we might state to the charitable company’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. In those circumstances, to the fullest extent permitted by law, we will not accept or assume responsibility to anyone other than the charitable company and the charitable company’s trustees as a body, for our audit work, for the audit report, or for the opinions we form. The audit of the financial statements does not relieve you of your responsibilities.

10 Under the Charities (Accounts and Reports) Regulations 2008 you are required to report as to whether you have given consideration to the major risks to which the charitable company is exposed, and to the systems designed to manage those risks. We are not required to form an opinion on the effectiveness of the risk management and control procedures.

11 We have a statutory duty to report to the Charity Commission (CC) under section 156 of the Charities Act 2011 such matters (concerning the activities or affairs of the charitable company or any connected institution or body corporate) of which we become aware during the course of our audit which are (or are likely to be) of material significance to the CC in the exercise of their powers of inquiry into, or acting for the protection of, charities.

12 The provision of audit services is a business in the regulated sector under the Proceeds of Crime Act 2002 and, as such partners and staff in audit firms have to comply with this legislation which includes provisions that may require us to make a money laundering disclosure in relation to information we obtain as part of our normal audit work. It is not our practice to inform you when such a disclosure is made or the reasons for it because of the restrictions imposed by the ‘tipping off’ provisions of the legislation.

2 Scope of audit

1 Our audit will be conducted in accordance with the International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Those standards require that we plan and perform our audit in order to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

2 As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the charitable company’s internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.

Conclude on the appropriateness of the trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charitable company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charitable company to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Read all financial and non-financial information (other information) included in the annual report other than the financial statements and identify whether the other information is materially inconsistent with the financial statements or our knowledge obtained during the audit, or otherwise appears materially misstated. You are responsible for the preparation of the other information and where, based on the work we have performed, we conclude that there is a material misstatement in this other information, we are required to report this fact.

3 Our work will be planned in advance and incorporated into an audit plan. This may be varied on the basis of our findings during the course of an audit from year to year. Accordingly, we may modify our audit scope, rotate our audit emphasis and propose matters of special audit emphasis, as circumstances dictate.

4 We shall obtain an understanding of the accounting and internal control systems in order to assess their adequacy as a basis for the preparation of the financial statements, and to establish whether adequate accounting records have been maintained by the charitable company. We shall expect to obtain such appropriate evidence as we consider sufficient to enable us to draw reasonable conclusions therefrom.

5 The nature and extent of our procedures will vary according to our assessment of the charitable company’s accounting system and, where we wish to place reliance on it, the internal control system, and may cover any aspect of the charitable company’s operations that we consider appropriate. Our audit is not designed to identify all significant weaknesses in the charitable company’s systems but, if such weaknesses come to our notice during the course of our audit which we think should be brought to your attention, we shall report them to you. Any such report may not be provided to third parties without our prior written consent. Such consent will be granted only on the basis that such reports are not prepared with the interests of anyone other than the charitable company in mind and that we accept no duty or responsibility to any other party as concerns the reports.

6 The information used by you in preparing the financial statements will invariably include facts or judgements which are not themselves recorded in the accounting records. As part of our normal audit procedures, we will ask you to provide written confirmation each year of such facts or judgments and any other oral representations that we have received from you during the course of the audit on matters having a material effect on the financial statements. In particular, where we bring misstatements in the financial statements to your attention that are not adjusted, we shall require written representation as to whether you believe the effects of the uncorrected misstatements are immaterial, individually and in aggregate, to the financial statements as a whole.

7 In order to assist us with the examination of your financial statements, we shall request sight of all documents or statements, including the Trustees’ Annual Report, which are due to be issued with the financial statements. We are also entitled to attend all general meetings of the charitable company and to receive notice of all such meetings as well as to receive details of all written resolutions that are to be circulated to members.

8 The responsibility of safeguarding the assets of the charitable company and for the prevention and detection of fraud, error and non-compliance with laws and regulations rests with yourselves. However, we shall plan our audit so that we have a reasonable expectation of detecting material misstatements in the financial statements or accounting records (including those resulting from fraud, error or non-compliance with laws and regulations), but our examination should not be relied upon to disclose all such material misstatements or frauds, errors or instances of non-compliance as may exist.

9 We shall not be treated as having notice, for the purposes of our audit responsibilities, of information provided to members of our firm other than those engaged on the audit (for example information provided in connection with accounting, taxation and other services).

10 In respect of the expected form and content of our report, we refer you to the most recent bulletin on auditor’s reports published by the Financial Reporting Council at www.frc.org.uk. The form and content of our report may need to be amended in the light of our findings.

11 Once we have issued our report we have no further direct responsibility in relation to the financial statements for that financial year. However, we expect that you will inform us of any material event occurring between the date of our report and the date the financial statements are sent out in accordance with section 423 Companies Act 2006 which may affect the financial statements.

12 Where audited information is published on the charitable company’s website or by other electronic means, it is your responsibility to advise us of any intended electronic publication before it occurs and to ensure that any such publication properly presents the financial information and auditor’s report. We reserve the right to withhold consent to the electronic publication of our report if it or the financial statements are to be published in an inappropriate manner. It is your responsibility to ensure there are controls in place to prevent or detect quickly any changes to that information. We are not required to review such controls nor to carry out ongoing reviews of the information after it is first published. The maintenance and integrity of the charitable company’s website is your responsibility and we accept no responsibility for changes made to audited information after it is first posted.

13 We assist in preparing iXBRL-tagged financial statements for submission to HMRC with the charitable company’s tax return. We are not currently required by auditing standards to verify the iXBRL tagging or the underlying data as part of our statutory audit. The accuracy of this information remains your responsibility.

14 We appreciate that the present size of your charitable company renders it uneconomic to create a system of internal control based on the segregation of duties for different functions within each area of the charitable company. In the running of your charitable company we understand that the trustees are closely involved with the control of the charitable company’s transactions. In planning and performing our audit work we shall take account of this supervision.

3 Communication

1 In order to promote effective two-way communication between us we set out below the expected form and timing of such communications.

We shall contact you by telephone weeks prior to each year-end for preliminary discussions concerning the audit. We will confirm in writing the matters discussed and any agreed action.
We will arrange a meeting to discuss the forthcoming audit, including an overview of the planned scope and timing of the audit, many weeks prior to the expected start date. Again we will confirm in writing the matters discussed and any agreed action.
We will arrange a meeting to discuss the significant findings from the audit weeks of completing the on-site work. Again we will confirm in writing the matters discussed and any agreed action.

Trust Accounts

Our Service to You

To ensure that anyone reading the accounts is aware that we have not carried out an audit, we will attach to the accounts a report stating this fact.

The intended user of the report is the owner. The report will be addressed to the owner.

We will communicate with the business at its place of business, this being the address above. Any alteration to these instructions will require notification in writing and agreement by the owner.

As part of our normal procedures we may request you to provide written confirmation of any oral information and explanations given to us during the course of our work.

Your Responsibilities: Provision of Information by You

You are legally responsible for making correct returns by the due date and for payment of tax on time. Failure to meet the deadlines may result in automatic penalties, surcharges and/or interest.

To enable us to carry out our work you agree:

That all returns are to be made on the basis of full disclosure of all sources of income, charges, allowances and capital transactions;

To provide full information necessary for dealing with your affairs: we will rely on the information and documents being true, correct and complete and will not audit the information or those documents;

That we can approach such third parties as may be appropriate for information that we consider necessary to deal with your affairs;

To provide us with information in sufficient time for your tax return to be completed and submitted by the 31 January following the end of the tax year. In order that we can do this, we need to receive all relevant information by 31st October.

To forward to us on receipt copies of all Inland Revenue statements of account, PAYE coding notices, notices of assessment, letters and other communications received from the Inland Revenue to enable us to deal with them as may be necessary within the statutory time limits; and

To keep us informed about significant changes in your circumstances if they are likely to affect your tax position

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 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 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.

Statutory Audit of Unincorporated Charity

SCHEDULE OF PROFESSIONAL SERVICES: AUDIT OF THE FINANCIAL STATEMENTS

1 Responsibilities of trustees and auditors

1 As trustees of the charity, you are responsible for maintaining proper accounting records and an appropriate system of internal control for the charity. You are also responsible for preparing the annual report and financial statements which give a true and fair view and have been prepared in accordance with United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and the Charities Act 2011 (“the Act”) and regulations thereunder.

2 As trustees of a charity, you are under a duty to prepare an annual report for each financial year complying in its form and content with regulations made under the Charities Act 2011. You should also have regard to the Statement of Recommended Practice (SORP) ‘Accounting and Reporting by Charities’ (FRS 102), issued [July 2014 / October 2019] by the joint SORP-making body, and any subsequent amendments or variations to this statement.

3 You are responsible for such internal control as you determine is necessary to enable the preparation of financial statements that are free from material misstatement whether due to fraud or error. Additionally, you are also responsible for safeguarding the assets of the charity, complying with laws and regulations and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

4 You are responsible for making available to us, as and when required, all your accounting records and related financial information, including any minutes of all trustees’ and management meetings, necessary to carry out our work. You will provide us with all information and explanations relevant to the purpose and compilation of the financial information, and you will disclose to us all relevant information in full. You will also provide us with unrestricted access to persons within the charity from whom we determine it is necessary to obtain audit evidence.

U5 nder the Charities Act 2011 we have a statutory responsibility to report to you as trustees whether in our opinion the financial statements:

give a true and fair view of the state of the charity’s affairs as at the year end, and of its incoming resources and application of resources, for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Charities Act 2011.

In addition, we have a statutory responsibility to report by exception if, in our opinion:

the information given in the financial statements is inconsistent in any material respect with the trustees’ report; or
the charity has not kept sufficient accounting records; or
the financial statements are not in agreement with the accounting records; or
we have not received all the information and explanations we require for our audit.

If we have nothing to report in respect of the above matters we will include a statement in our report confirming this.

6 We have a professional responsibility to report if the financial statements do not comply in any material respect with applicable accounting standards, unless in our opinion the non-compliance is justified in the circumstances. In determining whether or not the departure is justified we consider whether:

the departure is required in order for the financial statements to give a true and fair view; and
adequate disclosure has been made concerning the departure.

7 As noted above, our report will be made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work will be undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. In those circumstances, to the fullest extent permitted by law, we will not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for the audit report, or for the opinions we form. The audit of the financial statements does not relieve you of your responsibilities.

8 Under the Charities (Accounts and Reports) Regulations 2008 you are required to report as to whether you have given consideration to the major risks to which the charity is exposed and to the systems designed to manage those risks. We are not required to form an opinion on the effectiveness of the risk management and control procedures.

9 We have a statutory duty to report to the Charity Commission (CC) under section 156 of the Charities Act 2011 such matters (concerning the activities or affairs of the charity or any connected institution or body corporate) of which we become aware during the course of our audit which are (or are likely to be) of material significance to the CC in the exercise of their powers of inquiry into, or acting for the protection of, charities.

10 The provision of audit services is a business in the regulated sector under the Proceeds of Crime Act 2002 and, as such, partners and staff in audit firms have to comply with this legislation which includes provisions that may require us to make a money laundering disclosure in relation to information we obtain as part of our normal audit work. It is not our practice to inform you when such a disclosure is made or the reasons for it because of the restrictions imposed by the ‘tipping off’ provisions of the legislation.

2 Scope of audit

1 Our audit will be conducted in accordance with the International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Those standards require that we plan and perform our audit in order to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

2 As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the charity’s internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.

Conclude on the appropriateness of the trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charity to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

*Read all financial and non-financial information (other information) included in the annual report other than the financial statements and identify whether the other information is materially inconsistent with the financial statements or our knowledge obtained during the audit, or otherwise appears materially misstated. You are responsible for the preparation of the other information and where, based on the work we have performed, we conclude that there is a material misstatement in this other information, we are required to report this fact.

3 Our work will be planned in advance and incorporated into an audit plan. This may be varied on the basis of our findings during the course of an audit from year to year. Accordingly, we may modify our audit scope, rotate our audit emphasis and propose matters of special audit emphasis, as circumstances dictate.

4 We shall obtain an understanding of the accounting and internal control systems in order to assess their adequacy as a basis for the preparation of the financial statements, and to establish whether proper accounting records have been maintained by the charity. We shall expect to obtain such appropriate evidence as we consider sufficient to enable us to draw reasonable conclusions therefrom.

5 The nature and extent of our procedures will vary according to our assessment of the charity’s accounting system and, where we wish to place reliance on it, the internal control system, and may cover any aspect of the charity’s operations that we consider appropriate. Our audit is not designed to identify all significant weaknesses in the charity’s systems but, if such weaknesses come to our notice during the course of our audit which we think should be brought to your attention, we shall report them to you. Any such report may not be provided to third parties without our prior written consent. Such consent will be granted only on the basis that such reports are not prepared with the interests of anyone other than the charity in mind and that we accept no duty or responsibility to any other party as concerns the reports.

6 The information used by you in preparing the financial statements will invariably include facts or judgements which are not themselves recorded in the accounting records. As part of our normal audit procedures, we will ask you to provide written confirmation each year of such facts or judgments and any other oral representations that we have received from you during the course of the audit on matters having a material effect on the financial statements. In particular, where we bring misstatements in the financial statements to your attention that are not adjusted, we shall require written representation as to whether you believe the effects of the uncorrected misstatements are immaterial, individually and in aggregate, to the financial statements as a whole.

7 In order to assist us with the examination of your financial statements, we shall request sight of all documents or statements, including the Trustees’ Annual Report, which are due to be issued with the financial statements.

8 The responsibility of safeguarding the assets of the charity and for the prevention and detection of fraud, error and non- compliance with laws and regulations rests with yourselves. However, we shall plan our audit so that we have a reasonable expectation of detecting material misstatements in the financial statements or accounting records (including those resulting from fraud, error or non-compliance with laws and regulations), but our examination should not be relied upon to disclose all such material misstatements or frauds, errors or instances of non-compliance as may exist.

9 We shall not be treated as having notice, for the purposes of our audit responsibilities, of information provided to members of our firm other than those engaged on the audit (for example, information provided in connection with accounting, taxation and other services).

10 In respect of the expected form and content of our report, we refer you to the most recent bulletin on auditor’s reports published by the Financial Reporting Council at www.frc.org.uk. The form and content of our report may need to be amended in the light of our findings.

11 Once we have issued our report we have no further direct responsibility in relation to the financial statements for that financial year. However, we expect that you will inform us of any material event occurring between the date of our report and that of the Annual General Meeting which may affect the financial statements.

12 Where audited information is published on the charity’s website or by other electronic means, it is your responsibility to advise us of any intended electronic publication before it occurs and to ensure that any such publication properly presents the financial information and auditor’s report. We reserve the right to withhold consent to the electronic publication of our report if it or the financial statements are to be published in an inappropriate manner. It is your responsibility to ensure there are controls in place to prevent or detect quickly any changes to that information. We are not required to review such controls nor to carry out ongoing reviews of the information after it is first published. The maintenance and integrity of the charity’s website is your responsibility and we accept no responsibility for changes made to audited information after it is first posted.

13 We appreciate that the present size of your charity renders it uneconomic to create a system of internal control based on the segregation of duties for different functions within each area of the charity. In the running of your charity we understand that the trustees are closely involved with the control of the charity’s transactions. In planning and performing our audit work we shall take account of this supervision.

3 Communication

1 In order to promote effective two-way communication between us we set out below the expected form and timing of such communications.

We shall contact you by telephone weeks prior to each year-end for preliminary discussions concerning the audit. We will confirm in writing the matters discussed and any agreed action.
We will arrange a meeting to discuss the forthcoming audit, including an overview of the planned scope and timing of the audit, many weeks prior to the expected start date. Again we will confirm in writing the matters discussed and any agreed action.
We will arrange a meeting to discuss the significant findings from the audit weeks of completing the on-site work. Again we will confirm in writing the matters discussed and any agreed action.

VAT Returns – Annual

SCHEDULE OF SERVICES

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

VAT RETURNS recurring compliance work

We will prepare and review your monthly/quarterly/annual VAT returns, on the basis of the information and explanations supplied by you. The first such return to be prepared/reviewed by us will be the return for the period ending

Based on the information that you provide to us we will tell you how much you should pay and when. If appropriate we will initiate repayment claims where tax has been overpaid. We will advise on the interest and penalty implications if VAT is paid late.

Where appropriate we will calculate the partial exemption annual adjustment. This annual adjustment will normally be made in the quarter ending as the tax year for partial exemption purposes ends on .

Where appropriate we will calculate the annual Capital Goods Scheme adjustment. The adjustment will normally be made in the quarter ending as the interval end date is .

We will contact you when the return has been completed for you to review and approve, before we submit the return to HMRC.

Ad hoc and advisory services

Where you have instructed us to do so, we will also 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 discuss and agree an additional fee for this work when it is commissioned by you. Examples of such work include:

Reviewing and advising a suitable partial exemption method to use in preparing the return;

Dealing with all communications relating to your VAT returns, addressed to us by HMRC or passed to us by you;

Making recommendations to you about the use of cash accounting, annual accounting, flat rate and other suitable methods of accounting for VAT; and

Providing you with advice on VAT Excise Duty/Customs Duty/Landfill Tax/Insurance Premium Tax/Aggregates Levy/Climate Change Levy as and when requested. Where the advice is provided in writing, the information provided and the query raised will be set out with our response to you

Where specialist advice is required in certain areas we may need to seek this from or refer you to appropriate specialists.

Changes in the law

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 or your circumstances.

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

Your responsibilities

You are legally responsible for:

Ensuring that your returns are correct and complete;

b. Filing any returns by the due date; and

c. Making payment of tax on time.

Failure to do this may lead to automatic penalties, surcharges and/or interest. The signatory to the return cannot delegate this legal responsibility to others. The signatory agrees to check that returns we have prepared for you are complete before he/she approves and signs them.

To enable us to carry out our work you agree:

That all returns are to be made on the basis of full disclosure;

That you are responsible for ensuring that the information provided is, to the best of your knowledge, accurate and complete. The VAT returns are [prepared/reviewed] solely on the basis of the information provided by you and we accept no responsibility for any VAT liabilities arising due to inaccuracies or omissions in the information you provide which may lead to a misdeclaration on which penalties and interest may arise;

That we can approach such third parties as may be appropriate for information we consider necessary to deal with the VAT returns; and

To provide us with all the records relevant to the preparation of your monthly/quarterly VAT returns as soon as possible after the return period ends. We would ordinarily need a minimum of 15 days before submission to complete our work. If the records are provided later or are incomplete or unclear thereby delaying the preparation/review and submission of the VAT return, we accept no responsibility for any “default surcharge” penalty that may arise. Where feasible we may agree to complete your return within a shorter period but may charge an additional fee for so doing.

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 let us know so that we can assess the significance.

You will forward to us HMRC statements of account, copies of notices of assessment, letters and other communications received from HMRC 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 signed and 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.

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

If you are involved with any other business which is not registered for VAT you are responsible for monitoring your monthly turnover to establish whether you are liable to register for VAT. If you do not understand what you need to do, please ask us. If you exceed the VAT registration threshold, and 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.

If EC Sales Lists need to be completed you are responsible for obtaining all of your customers’ VAT registration numbers in other member states and to check any that you are not completely satisfied with HMRC.

VAT Returns – Quarterly

SCHEDULE OF SERVICES

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

VAT RETURNS recurring compliance work

We will prepare and review your monthly/quarterly/annual VAT returns, on the basis of the information and explanations supplied by you. The first such return to be prepared/reviewed by us will be the return for the period ending

Based on the information that you provide to us we will tell you how much you should pay and when. If appropriate we will initiate repayment claims where tax has been overpaid. We will advise on the interest and penalty implications if VAT is paid late.

Where appropriate we will calculate the partial exemption annual adjustment. This annual adjustment will normally be made in the quarter ending as the tax year for partial exemption purposes ends on .

Where appropriate we will calculate the annual Capital Goods Scheme adjustment. The adjustment will normally be made in the quarter ending as the interval end date is .

We will contact you when the return has been completed for you to review and approve, before we submit the return to HMRC.

Ad hoc and advisory services

Where you have instructed us to do so, we will also 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 discuss and agree an additional fee for this work when it is commissioned by you. Examples of such work include:

Reviewing and advising a suitable partial exemption method to use in preparing the return;

Dealing with all communications relating to your VAT returns, addressed to us by HMRC or passed to us by you;

Making recommendations to you about the use of cash accounting, annual accounting, flat rate and other suitable methods of accounting for VAT; and

Providing you with advice on VAT Excise Duty/Customs Duty/Landfill Tax/Insurance Premium Tax/Aggregates Levy/Climate Change Levy as and when requested. Where the advice is provided in writing, the information provided and the query raised will be set out with our response to you

Where specialist advice is required in certain areas we may need to seek this from or refer you to appropriate specialists.

Changes in the law

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 or your circumstances.

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

Your responsibilities

You are legally responsible for:

Ensuring that your returns are correct and complete;

b. Filing any returns by the due date; and

c. Making payment of tax on time.

To enable us to carry out our work you agree:

That all returns are to be made on the basis of full disclosure;

That you are responsible for ensuring that the information provided is, to the best of your knowledge, accurate and complete. The VAT returns are [prepared/reviewed] solely on the basis of the information provided by you and we accept no responsibility for any VAT liabilities arising due to inaccuracies or omissions in the information you provide which may lead to a misdeclaration on which penalties and interest may arise;

That we can approach such third parties as may be appropriate for information we consider necessary to deal with the VAT returns; and

To provide us with all the records relevant to the preparation of your monthly/quarterly VAT returns as soon as possible after the return period ends. We would ordinarily need a minimum of 15 days before submission to complete our work. If the records are provided later or are incomplete or unclear thereby delaying the preparation/review and submission of the VAT return, we accept no responsibility for any “default surcharge” penalty that may arise. Where feasible we may agree to complete your return within a shorter period but may charge an additional fee for so doing.

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 let us know so that we can assess the significance.

You will forward to us HMRC statements of account, copies of notices of assessment, letters and other communications received from HMRC 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 signed and 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.

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

If you are involved with any other business which is not registered for VAT you are responsible for monitoring your monthly turnover to establish whether you are liable to register for VAT. If you do not understand what you need to do, please ask us. If you exceed the VAT registration threshold, and 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.

If EC Sales Lists need to be completed you are responsible for obtaining all of your customers’ VAT registration numbers in other member states and to check any that you are not completely satisfied with HMRC.

VAT Returns – Monthly SCHEDULE OF SERVICES

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

VAT RETURNS recurring compliance work

We will prepare and review your monthly/quarterly/annual VAT returns, on the basis of the information and explanations supplied by you. The first such return to be prepared/reviewed by us will be the return for the period ending

Based on the information that you provide to us we will tell you how much you should pay and when. If appropriate we will initiate repayment claims where tax has been overpaid. We will advise on the interest and penalty implications if VAT is paid late.

Where appropriate we will calculate the partial exemption annual adjustment. This annual adjustment will normally be made in the quarter ending as the tax year for partial exemption purposes ends on .

Where appropriate we will calculate the annual Capital Goods Scheme adjustment. The adjustment will normally be made in the quarter ending as the interval end date is .

We will contact you when the return has been completed for you to review and approve, before we submit the return to HMRC.

Ad hoc and advisory services

Where you have instructed us to do so, we will also 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 discuss and agree an additional fee for this work when it is commissioned by you. Examples of such work include:

Reviewing and advising a suitable partial exemption method to use in preparing the return;

Dealing with all communications relating to your VAT returns, addressed to us by HMRC or passed to us by you;

Making recommendations to you about the use of cash accounting, annual accounting, flat rate and other suitable methods of accounting for VAT; and

Providing you with advice on VAT Excise Duty/Customs Duty/Landfill Tax/Insurance Premium Tax/Aggregates Levy/Climate Change Levy as and when requested. Where the advice is provided in writing, the information provided and the query raised will be set out with our response to you

Where specialist advice is required in certain areas we may need to seek this from or refer you to appropriate specialists.

Changes in the law

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 or your circumstances.

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

Your responsibilities

You are legally responsible for:

Ensuring that your returns are correct and complete;

b. Filing any returns by the due date; and

c. Making payment of tax on time.

To enable us to carry out our work you agree:

That all returns are to be made on the basis of full disclosure;

That you are responsible for ensuring that the information provided is, to the best of your knowledge, accurate and complete. The VAT returns are [prepared/reviewed] solely on the basis of the information provided by you and we accept no responsibility for any VAT liabilities arising due to inaccuracies or omissions in the information you provide which may lead to a misdeclaration on which penalties and interest may arise;

That we can approach such third parties as may be appropriate for information we consider necessary to deal with the VAT returns; and

To provide us with all the records relevant to the preparation of your monthly/quarterly VAT returns as soon as possible after the return period ends. We would ordinarily need a minimum of 15 days before submission to complete our work. If the records are provided later or are incomplete or unclear thereby delaying the preparation/review and submission of the VAT return, we accept no responsibility for any “default surcharge” penalty that may arise. Where feasible we may agree to complete your return within a shorter period but may charge an additional fee for so doing.

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 let us know so that we can assess the significance.

You will forward to us HMRC statements of account, copies of notices of assessment, letters and other communications received from HMRC 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 signed and 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.

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

If you are involved with any other business which is not registered for VAT you are responsible for monitoring your monthly turnover to establish whether you are liable to register for VAT. If you do not understand what you need to do, please ask us. If you exceed the VAT registration threshold, and 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.

If EC Sales Lists need to be completed you are responsible for obtaining all of your customers’ VAT registration numbers in other member states and to check any that you are not completely satisfied with HMRC.

Income & Expenditure Summary

Our Service to You

To ensure that anyone reading the accounts is aware that we have not carried out an audit, we will attach to the accounts a report stating this fact.

The intended user of the report is the owner. The report will be addressed to the owner.

We will communicate with the business at its place of business, this being the address above. Any alteration to these instructions will require notification in writing and agreement by the owner.

As part of our normal procedures we may request you to provide written confirmation of any oral information and explanations given to us during the course of our work.

Your Responsibilities: Provision of Information by You

To enable us to carry out our work you agree:

That all returns are to be made on the basis of full disclosure of all sources of income, charges, allowances and capital transactions;

To provide full information necessary for dealing with your affairs: we will rely on the information and documents being true, correct and complete and will not audit the information or those documents;

That we can approach such third parties as may be appropriate for information that we consider necessary to deal with your affairs;

To provide us with information in sufficient time for your tax return to be completed and submitted by the 31 January following the end of the tax year. In order that we can do this, we need to receive all relevant information by 31st October.

To forward to us on receipt copies of all Inland Revenue statements of account, PAYE coding notices, notices of assessment, letters and other communications received from the Inland Revenue to enable us to deal with them as may be necessary within the statutory time limits; and

To keep us informed about significant changes in your circumstances if they are likely to affect your tax position

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 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 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.

Independent Examination of a Charitable Incorporated Organisation (CIO)

SCHEDULE OF PROFESSIONAL SERVICES: INDEPENDENT EXAMINATION OF THE ACCOUNTS

The purpose of this schedule is to set out the basis on which we are to perform an independent examination of the accounts for the charity.

1. Responsibilities of trustees and independent examiners

1 As trustees of the charity, you are responsible for maintaining proper accounting records and an appropriate system of internal control for the charity [and for preparing the account and statement in accordance with the Charities Act 2011 and regulations thereunder.] [and you are also responsible for preparing the annual report and accounts which give a true and fair view and have been prepared in accordance with (United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and the Charities Act 2011 (“the Act”) and regulations thereunder.]

2 [In accordance with the Charities Act 2011 section 133, where the charity’s gross income in any financial year does not exceed £250,000, the charity’s trustees may elect to prepare a receipts and payments account and a statement of assets and liabilities as its annual statement of accounts. You have elected to prepare such an account and statement.]1

3 Under the Charities Act 2011 we have a statutory responsibility to state whether or not any matters have come to our attention to which in our opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached, and to report whether or not any matter has come to our attention in connection with the examination which gives us reasonable cause to believe that in any material respect:

accounting records have not been kept by the charity in accordance with Section 130 Charities Act 2011;
the [account and statement]1 [accounts]2 are not in agreement with the accounting records; and
the [account and statement]1 [accounts]2 do not comply with the accounting requirements of the Charities Act 2011.

4 We are also required to report any of the following matters that have become apparent during the course of our examination:

whether there has been any material expenditure or action which appears not to be in accordance with the trusts of the charity; [and]1
whether any information or explanation to which we are entitled under regulation 33 of the Charities (Accounts and Reports) Regulations 2008 has not been afforded to us; [and
whether any information in the trustees’ statutory annual report is inconsistent in any material respect with that in the accounts.]2

5 We shall plan our work on the basis that an examination report is required for the year, unless you inform us in writing that either:

the charity requires an audit of the accounts; or

the charity requires neither an audit nor an examination report.

6 Should you instruct us to carry out an audit, then a separate letter of engagement will be required.

7 Should you inform us that the charity requires neither an audit nor an examination, then we shall have no responsibilities to the charity, except those specifically agreed upon between us in respect of other professional services.

8 Should our work lead us to conclude that the charity is not entitled to exemption from an audit of the accounts, or should we be unable to reach a conclusion on this matter, then we will not issue any report and will notify you in writing of the reasons. In these circumstances, if appropriate, we will discuss with you the need to appoint an auditor.

9 We have a statutory duty to report to the Charity Commission (CC) under section 156 of the Charities Act 2011 such matters (concerning the activities or affairs of the charity or any connected institution or body corporate) of which we become aware during the course of our examination which are (or are likely to be) of material significance to the CC in the exercise of their powers of inquiry into, or acting for the protection of, charities.

10 In common with all accountancy and legal practices, we are required by the Proceeds of Crime Act 2002 and the Money Laundering Regulations to:

have due diligence procedures for the identification of all clients;
maintain appropriate records of evidence to support customer due diligence; and
report in accordance with the relevant legislation and regulations.

2. Scope of examination

1 Our examination will be conducted in accordance with the CC’s ‘Directions and Guidance Notes for the Carrying out of an Independent Examination’. Our procedures will consist of comparing the accounts with the accounting records, vouching some material / significant transactions, making limited enquiries of the officers of the charity and only in certain circumstances seeking independent evidence to support entries in the accounting records, or the presentation of the accounts. We shall also review the trustees’ report and discuss with you the financial circumstances of the charity at the end of the year.

2 Our examination is not designed to identify all significant weaknesses in the charity’s systems but, if such weaknesses come to our notice during the course of our examination which we think should be brought to your attention, we shall report them to you. Any such report may not be provided to third parties without our prior written consent. Such consent will be granted only on the basis that such reports are not prepared with the interests of anyone other than the charity in mind and that we accept no duty or responsibility to any other party as concerns the reports.

3 As part of our normal procedures, we may request you to provide written confirmation of oral representations which we have received from you during the course of the examination on matters having a material effect on the account and statement.

4 In order to assist us with the examination of your accounts, we shall request sight of all documents or statements, including the trustees’ annual report, which are due to be issued with the accounts. If it is proposed that any documents or statements which refer to our name, other than the examined accounts, are to be circulated to third parties, please consult us before they are issued.

5 The responsibility for safeguarding the assets of the charity and for the prevention and detection of fraud, error and non- compliance with laws or regulations rests with yourselves. Our examination should not be relied upon to disclose all material misstatements or frauds, errors or instances of non-compliance as may exist.

6 We shall not be treated as having notice, for the purposes of our examination responsibilities, of information provided to members of our firm other than those engaged on the examination.

7 Once we have issued our report, we have no further direct responsibility in relation to the accounts for that financial year.

1 – For receipts and payments accounts only.

2 – For accruals accounts only.

Safeagent Client Accounting Standards – Accountants Report

Your responsibilities Estate Agents Act 1979

Where you hold ‘statutory’ clients’ money as defined by the Estate Agents Act 1979, you are responsible for separating it from other clients’ money and dealing with it in accordance with the Estate Agents (Accounts) Regulations 1981.

Safeagent Client Accounting Standards

As a Safeagent accredited firm you are obliged to comply with the Safeagent Client Accounting Standards relating to the keeping of accounting records and dealing with clients’ money.

As part of your Safeagent accreditation you are required to ask us to submit a report confirming that you have kept adequate records throughout the period of all transactions relating to clients’ money received and handled by the firm and of your compliance with Safeagent Client Accounting Standards.

2. Our responsibilities

Estate Agents Act 1979

Regulation 8 requires us to provide you with a report stating whether or not you have complied with the Estate Agents Act 1979 and the supporting regulations. To enable us to provide this report we are required to:

ascertain particulars of all bank accounts you keep, maintain or operate; and
examine your accounts and records and obtain such information and explanations we consider necessary to verify whether you comply with the requirements of the Act and the Regulations.

Safeagent Client Accounting Standards

Subject to your responsibilities above, you have asked us to submit a report to Safeagent under Safeagent Client Accounting Standards on your handling of clients’ money, in the prescribed form. To enable us to provide your report we will need to:

ascertain particulars of all bank accounts you maintain; and
examine your records and obtain any information and explanations as we consider necessary for the purposes of the report; and
obtain details of deposit schemes with which the firm is registered at the time of completion of the Report; and
obtain details of the Client Money Protection (CMP) Scheme with which the firm is registered at the time of completion of the Report; and
where the firm is covered by the Safeagent Client Money Protection (CMP) Scheme, note the firm’s contribution to that scheme which is based on the highest client account balance in the twelve months (excluding any balances relating to deposits) from March each year; and
obtain any information and explanations we require.

Business Consultancy & Advice

1. Introduction

This document sets out the terms on which we accept instructions for our services. Our aim is to provide you with a professional Business advice & consultancy service which meets your requirements in a cost-effective manner.

2. Authority to Give Instructions

We will and can act on instructions given orally, or via electronic communication.

3. Our Responsibilities

We are responsible for delivering the services with all reasonable skill and care, and in full compliance of relevant established professional standards.

Aston Shaw Limited is not a firm of solicitors and therefore is not regulated by the Solicitors Regulation Authority. Use of our services does not create a solicitor-client relationship.

4. Your Responsibilities

You are responsible for:

Ensuring any information you provide is complete and accurate
Being on time to any planned meetings or events
Making any payments due to us in a timely manner

5. Access and Communication

We are contactable on working days between 09.00 and 17.00.

All telephone calls and other correspondence will be responded to as soon as possible. All communication will be via electronic means unless you specifically request otherwise.

6. Communications with third parties

You agree that we can approach third parties as appropriate for information that we consider necessary to deal with the assignment.

Evalu-8 Subscription

CLOUD HR SOFTWARE – TERMS & CONDITIONS

Software fees are payable on a monthly basis in accordance with our standard payment terms

Use of software may be suspended or withdrawn if payments are late or not made.

Community Interest Company Accounts

Schedule of professional services – Accounting

Schedule of Professional Services: Compilation of Statutory Financial Statements

The purpose of this schedule to our engagement letter is to set out the basis on which we are to compile the statutory financial statements for the company.

1 Your responsibilities

1 As directors of the above company, in addition to your general duties specified in sections 170 to 177 of the Companies Act 2006, you are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and to enable you to ensure that the financial statements comply with the Companies Act 2006. You are also responsible for preparing financial statements which give a true and fair view, have been prepared in accordance with [United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice)] and the Companies Act 2006 and regulations made under it.

2 In preparing these financial statements, you are required to:

select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

3 You also have a responsibility not to approve these financial statements unless you are satisfied that they give a true and fair view of the assets, liabilities, financial position and profit and loss of the company.

4 You have instructed us to prepare abridged accounts under The Small Companies and Groups (Accounts and Directors’ Report) Regulations 2008 as amended by The Small Companies, Partnerships and Groups (Accounts and Reports) Regulations 2015. Your responsibilities as directors are to obtain the necessary consents and ensure the required statement is delivered to the Registrar.

5 You are responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

6 You are also responsible for determining whether, in respect of the year, the company meets the conditions for exemption from an audit of the financial statements set out in section 477 [or 479A or 480] of the Companies Act 2006, and for determining whether, in respect of the year, the exemption is not available for any of the reasons set out in sections 476, 478 and 479 [479B or 481].

7 You are responsible for ensuring that the company complies with the laws and regulations that apply to its activities, and for preventing non-compliance and for detecting any that occurs.

8 You have undertaken to make available to us, as and when required, all the company’s accounting records and related financial information, including minutes of management and shareholders’ meetings, necessary for the compilation of the financial statements and you will make full disclosure to us of all relevant information.

9 You have agreed that your staff will be responsible for:

keeping the record of receipts and payments;
reconciling the balances monthly with the bank statements;
keeping posted and balanced the purchase and sales ledgers;
preparing a detailed list of ledger balances;
preparing details of the annual stocktaking suitably priced and extended.

10 Where financial information is to be published, which includes a report by us or is otherwise connected to us, on the company’s website or by other electronic means, it is your responsibility to advise us of any intended electronic publication before it occurs and to ensure that any such publication properly presents the financial information and our report. We reserve the right to withhold consent to the electronic publication of our report if it or the financial statements are to be published in an inappropriate manner. It is your responsibility to ensure there are controls in place to prevent or detect quickly any changes to that information. We are not required to review such controls nor to carry out ongoing reviews of the information after it is first published. The maintenance and integrity of the company’s website is your responsibility and we accept no responsibility for changes made to such information after it is first posted.

11 In addition to your responsibilities under the Companies Act 2006, you are also responsible for compliance with the Companies (Audit, Investigations and Community Enterprise) Act 2004 and regulations made under it as applicable to community interest companies. These responsibilities include ensuring that the company is run in such a way that it will continue to satisfy the community interest test and for compliance with the provisions in respect of:

asset lock;
caps on interest and dividends; and
the preparation [and delivery to Companies House] of the annual Community Interest Company Report.

2 Our responsibilities

1 As the company is totally exempt from audit, we have no statutory responsibilities to the company at all. Our only responsibilities arise from those specifically agreed upon between us in respect of other professional services.

2 You have asked us to help you compile the statutory financial statements in accordance with the requirements of the Companies Act 2006, [and for preparing accounts for filing with the Registrar of Companies]. We will compile the annual financial statements for your approval based on the accounting records maintained by you and the information and explanations given to us by you and in accordance with [ FRS 102 / FRS 102 Section 1A / FRS 105 / the accounting framework agreed and applicable to you].

3 We shall 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. In carrying out our engagement 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.

4 You have advised us that the company is exempt from an audit of the financial statements. We will not check whether this is the case. However, should our work indicate that the company is not entitled to the exemption, we will inform you of this.

5 Our work will not be an audit of the financial statements in accordance with the International Standards on Auditing (UK). Consequently, our work will not provide any assurance that the accounting records or the financial statements are free from material misstatement, whether caused by fraud, other irregularities or error and cannot be relied on to identify weaknesses in internal controls.

6 Since we will not carry out an audit, nor confirm in any way the accuracy or reasonableness of the accounting records maintained by the company, we are unable to provide any assurance as to whether the financial statements that we prepare from those records present a true and fair view. We will, however, advise you on whether your records are adequate for the preparation of financial statements and recommend improvements.

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. Furthermore, as directors, you have a duty to prepare financial statements that comply with the Companies Act 2006, regulations made under that Act and [United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice (UK GAAP)) / International Financial Reporting Standards (IFRS)] . Where we identify that the financial statements do not conform to [UK GAAP / IFRS] or if the accounting policies adopted are not immediately apparent, this will need to be disclosed in the financial statements.

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, should 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 adjustments and/or disclosures that we consider appropriate are not made or where we are not provided with appropriate information, and as a result we consider that the financial statements remain misleading, we will withdraw from the engagement.

9 As part of our normal procedures, we may request you to provide written confirmation of any information or explanations given by you orally during the course of our work.

3 Form of the accountants’ report

1 We shall report to the Board of Directors, with any modifications that we consider may be necessary, that in accordance with this engagement letter and in order to assist you to fulfil your responsibilities, we have compiled, without carrying out an audit, the financial statements from the accounting records of the company 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, for the work or for this report.

4 Other accounting services

1 We will also carry out the following services as your agents on the basis that you will make full disclosure to us of all relevant information:

providing assistance in preparing and lodging returns with the Registrar of Companies; and
investigating irregularities and fraud upon receiving specific instructions.

Payroll, RTI Submission

Recurring compliance work

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) deductions

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/Paternity Pay

5 Calculating other statutory and non statutory deductions

We will prepare and send to you the following documents for each payroll period at or before the time of payment:

1 Payroll summary report showing the reconciliation from gross to net for each employee and all relevant payroll totals

2 A payslip for each employee unless not required

3 A P45 for each leaver

4 A report showing your PAYE and NIC liability and due date for payment

We will prepare and send to you the following documents by the statutory due dates at the end of the payroll year:

1 Form P60 for each employee on the payroll at the year end

2 P60 for all staff who were on the payroll during the payroll year

We will submit your final Full Payment Submission (FPS) for the tax year.

To complete all necessary HMRC RTI submissions on your behalf following you meeting ‘Your Responsibilities’ (Aston Shaw cannot be held responsible for HMRC actions where you have failed to comply with ‘Your Responsibilities’)

Ad hoc and advisory work

We will also provide such other taxation ad hoc and advisory services as may be agreed from time to time. These may be the subject of a separate engagement letter, at our option. Where appropriate we will discuss and agree an additional fee for such work when it is commissioned by you. Examples of such work include:

1 dealing with any enquiry opened into the payroll returns by HMRC

2 preparing any amended returns which may be required and corresponding with HMRC as necessary

3 Where specialist advice is required on occasions we may need to seek this from or refer you to appropriate specialists.

Changes in the law

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

Your responsibilities

You are legally responsible for:

1 ensuring that your payroll returns are correct and complete;

2 filing any returns by the due date; and

3 making payment of tax and NIC on time.

Failure to do this may lead to automatic penalties, surcharges and/or interest.

Signatories to returns cannot delegate this legal responsibility to others. You agree to check that returns we have prepared for you are correct and complete before you approve and sign them.

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 payroll 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 agree with us the names of the persons authorised by you to notify us of changes in employees and in rates of pay. We will process the changes only if notified by that/those individuals;

4 to advise us in writing of changes of payroll pay dates;

5 to notify us at least 15 working days prior to the payroll 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 details of their remuneration packages all leavers and details of termination arrangements
all remuneration changes
all pension scheme changes
any changes to the employees’ bank accounts;

6 you will keep us informed of material changes in circumstances that could affect the payroll of the business. If you are unsure whether the change is material or not please let us know so that we can assess the significance or otherwise; and

7 to authorise us to approach such third parties as may be appropriate for information that we consider necessary to deal with your affairs.

If the information required to complete the payroll services set out above is received less than 5 days before the payroll date we will still endeavour to process the payroll to meet the agreed payroll date but we will not be liable for any costs or other losses arising if the payroll is late in these circumstances. We may charge an additional fee of for work carried out in a shorter time period.

Report of Factual Findings on Service Charge Accounts.

The purpose of this schedule to our engagement letter is to set out the basis on which we are to provide a report of factual findings on the service charge accounts for Thorpe Park Management Company Limited for the year ended 31 December 2021, as required by the lease and the respective responsibilities of ourselves (the reporting accountants) and you the managing agent.

1 Your responsibilities

1 As managing agent for Thorpe Park you consider that the lease is construed as not requiring an audit.

2 You are responsible for the preparation of service charge accounts that comply with the provisions of the lease.

3 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, necessary to carry out our work. You will provide us with all the information and explanations relevant to the preparation of our report of factual findings on the service charge accounts for the period in question and you will make full disclosure to us of all relevant information.

4 You will approve and sign the service charge accounts in the form required by the lease to acknowledge responsibility for them.

5 You are responsible for ensuring that the property is maintained in accordance with the terms of the lease and that service charge monies are safeguarded as held on trust for the leaseholders in accordance with section 42 of the Landlord and Tenant Act 1987.

2 Our responsibilities

1 You have asked us to undertake procedures and provide a report of our factual findings to you, on the service charge accounts.

2 We shall conduct our work in accordance with the guidance for a report of factual findings on service charge accounts contained in ‘Residential Service Charge Accounts’ published jointly by the professional accountancy bodies and the Association of Residential Managing Agents (ARMA) and the Royal Institution of Chartered Surveyors (RICS).

In order to provide our report, in summary, we shall:

check whether the figures in the service charge accounts have been extracted correctly from the accounting records maintained by you;
check that a sample of entries in the accounting records are supported by receipts, other documentation or evidence that we have inspected;
check that the balance of service charge monies for this property, shown in the service charge accounts, agrees or reconciles to the bank statement for the account(s) in which the funds are held.

The list of procedures performed and details of any sampling used in the course of our work will be provided upon request from you.

3 Our work will not be an audit of the service charge accounts in accordance with International Standards on Auditing (UK). Consequently our work will not provide any assurance that the accounting records or the service charge accounts are free from material misstatement, whether caused by fraud, other irregularities or error and cannot be relied on to identify weaknesses in internal controls. We will, however, advise you on whether your records are adequate for the preparation of the service charge accounts and recommend improvements.

4 We will perform the agreed procedures with reasonable skill and care and will report any misstatement, frauds or errors that are revealed by the enquiries we undertake within the scope of the engagement. Our work should not, however, be relied upon to disclose all misstatements, frauds or errors that might exist.

5 We accept that, whether or not you meet the applicable obligations under the lease, we remain under an obligation to perform our work with reasonable care. Failure by you to meet your obligations under the lease or to provide such assistance as we require may cause us to be unable to provide our report in the agreed terms. In circumstances where we are unable to provide a report we may withdraw from the engagement.

6 We have a professional responsibility not to allow our name to be associated with financial information which we believe may be misleading. Therefore, although we are not required to search for such matters, should we become aware, for any reason, that the service charge accounts may be misleading, we will discuss the matter with you with a view to agreeing appropriate adjustments and / or disclosures in the accounts. In circumstances where adjustments and / or disclosures that we consider appropriate are not made or where we are not provided with appropriate information, and as a result we consider that the accounts are misleading, we will withdraw from the engagement and will notify you in writing of the reasons.

7 As part of our normal procedures, we may request you to provide written confirmation of any information or explanations given by you orally during the course of our work.

3 Form of the accountants’ report

1 We shall report to you our factual findings from the procedures undertaken in accordance with our engagement terms. The report should not be used for any purpose other than as set out in this engagement letter. To the fullest extent permitted by law we do not accept or assume responsibility to anyone other than the addressee of the report for the work or for this report.

4 Other accounting services

1 We will also carry out the following services as your agents on the basis that you will make full disclosure to us of all relevant information:

prepare the service charge accounts from the accounting records maintained by you.
assist with the completion of the Trust Tax Return and its submission to HM Revenue & Customs.
investigating irregularities and fraud upon receiving specific instructions.

SRA: Periods commencing on or after 25 November 2019

Your responsibilities

1 As solicitors you are responsible for ensuring that the firm maintains the accounting records required by the SRA Accounts Rules. In addition, you are responsible for ensuring that all dealings in client money are dealt with in accordance with those rules.

2 In accordance with the section 34 of the Solicitors Act 1974 and section 5, schedule 2 of the Administration of Justice Act 1985 we understand that you have waived your right to confidentiality and that we should report directly to the SRA in certain circumstances. We understand that you will confirm these matters in your reply to this letter.

Our responsibilities

1 The SRA Accounts Rules effective from 25 November 2019 require us to report to you each year whether in our opinion you have complied with rules 2 to 6, 8 to 10 and 13.

2 We will qualify our report, where in our professional judgement, there is a significant breach and / or significant weaknesses in the firm’s systems and controls which put client money at risk. We will provide details of the significant breach and/or significant weaknesses in firm’s systems and controls which put client money at risk to the SRA in their prescribed form. This will include sufficient detail to allow the SRA to understand our judgement.

3 To provide our report we shall undertake whatever tests and examinations of your records we consider appropriate. Our work will take into account the SRA’s Guidance: Planning for and completing an accountant’s report. We do not undertake specific work to identify limitations in your systems or any irregularities on the part of your employees, beyond the work required to give the confirmations mandated on the AR1. However, we [will/may] advise you of limitations which we may discover during the course of our work.

4 Our report will be in the standard form prescribed by the SRA. If the report is qualified it is your responsibility to submit it to the SRA within six months of your accounting period end. However, if instructed by you, we will submit the report on your behalf.

Capital Allowances

SCHEDULE OF PROFESSIONAL SERVICES: Capital Allowances

We are pleased to accept the instruction to undertake capital allowances services on your behalf and are writing to confirm the matters discussed.

The purpose of this letter is to set out our terms for carrying out the work and to clarify our respective responsibilities. We are bound by the ethical guidelines of ACCA and accept instructions to act for you on the basis that we will act in accordance with those ethical guidelines.

A copy of these guidelines can be viewed at our offices on request or at www.accaglobal.com.

Period of engagement

This letter is effective from the date of receipt.

We will deal with matters arising in respect of periods prior to the above as appropriate.

Scope of services to be provided

Our responsibility to you

Your responsibility to us

Our services to you

You have appointed us to prepare and submit a claim for capital allowances and all relevant tax returns to HM Revenue & Customs (HMRC). In making this application, we will use our knowledge of the business. However, the application will rely on the information that you provide us with, which we may ask you to confirm to us in writing. We therefore accept no responsibility for problems arising as a result of your actions regarding the application.

The application will be based on information gained from you, and we accept no responsibility for any losses arising out of implementing the application. Further, the application requires us to rely substantially on your representations. Therefore, we can accept no responsibility for any losses resulting from issues not covered in the information you supply.

Responsibilities

You will provide us with authorisation to act as your Agent with HMRC and receive any tax repayments to our client account.

Basis of report

Other than as specifically set out in this letter we will not carry out any work by way of audit, review or verification of the financial information, management accounts, accounting records and any other sources provided by you, from which that information is to be extracted for the purpose of submitting the claim.

Limitation of liability

Use of report

Our application will be provided solely for the use for yourself and HM Revenue & Customs. Copies of the application should not be made available to other parties without our prior written consent.

Fees

Our fees are computed on a contingent basis.

Our agreed fee will be the higher of 3.5% (excluding VAT) of the total capital allowances we identify or £1,000 (excluding VAT).

Our invoice for the agreed fee will be raised following confirmation of tax refund or reduced tax liability by HMRC. Our invoices are payable within 30 days of invoice date.

Any tax refunds from HMRC because of the claim, will be deposited in the Aston Shaw client account from which we will deduct our fees and pay the net balance to yourself within 30 days of receipt of monies.

Further, you authorise Aston Shaw to deduct outstanding fees owing for other services for which we are engaged from the receipt from HMRC.

Agreement of terms

This letter supersedes any previous engagement letter for the submission of capital allowances claims. Once it has been agreed, this letter will remain effective until it is replaced.

We may vary or terminate our authority to act on your behalf at any time without notice or penalty. This letter should be read in conjunction with the firm’s standard terms and conditions.

We would be grateful if could confirm your agreement to the terms of this letter by signing below and returning it to us immediately.

Propertymark Accounting Rules Review

Schedule of Professional Services: Provision of a Report on Clients’ Money Accounting Compliance

The purpose of this schedule to our engagement letter is to set out the basis on which we are to report on your compliance with the clients’ money accounting requirements of the Estate Agents (Accounts) Regulations (EAAR) and your Propertymark membership accreditation.

1 Your responsibilities

(A) Estate Agents Act 1979

A1.1 Where you hold ‘statutory’ clients’ money as defined by the Estate Agents Act 1979, you are responsible for separating it from other clients’ money and dealing with it in accordance with the Estate Agents (Accounts) Regulations 1981.

(B) The Propertymark Conduct and Membership Rules

B2.1 As a member of Propertymark you are obliged to comply with Propertymark’s Conduct and Membership Rules, Rule 1, Propertymark’s Accounting Rule, relates to clients’ money.

B2.2 If you act as a named CASP for one or more member firms of Propertymark you must disclose this fact to us.

B2.3 Should you engage the services of a named CASP in respect of your clients’ money, it is the responsibility of that CASP to deliver a report on its procedures, direct to Propertymark.

You must, however, continue to submit a report to Propertymark in the format prescribed by Propertymark regulation on any other client money that you hold direct. In particular you must prepare a report on any statutory clients’ money held, which cannot be entrusted to a CASP.

B2.4 You must declare to us at the time of our visit any properties belonging to any principal, partner or director of the firm which are managed by, or on which rent is collected by, you.

2 Our responsibilities

(A) Estate Agents Act 1979

A1.1 Regulation 8 requires us to provide you with a report stating whether or not you have complied with the Estate Agents Act 1979 and the supporting regulations. To enable us to provide this report we are required to:

ascertain particulars of all bank accounts you keep, maintain or operate; and
examine your accounts and records and obtain such information and explanations we consider necessary to verify whether you comply with the requirements of the Act and the Regulations.

(B) The Propertymark Conduct and Membership Rules

B2.1 You have asked us to prepare, for you to deliver to Propertymark, a report in the format prescribed by Propertymark, in respect of any clients’ money that you hold direct as Principal Agent, or that you hold as a named Client Accounting Service Provider (CASP) on behalf of another member firm of Propertymark. We are required to annotate the tests for the Propertymark accounting requirements set out in the report, provide details of non-compliance and to complete the declarations also set out therein, together with the results of two comparisons of the liabilities to clients shown by your clients’ ledger accounts with the cash held in clients’ money bank accounts, after adjustment for outstanding cheques and lodgements. To enable us to provide this report we will need to:

ascertain particulars of all bank accounts you maintain; and
examine your accounting records and the internal control systems of both your clients’ money and office records and obtain any information and explanations as we consider necessary for the purposes of the report; and
carry out such tests of your clients’ ledger transactions as are required to enable us to complete the checklist of enquiries set out in the report; and
examine your reconciliations of the liabilities to clients shown in your clients’ ledger to the balances held in your clients’ bank accounts on at least two occasions in the accounting year and the office records; and
ascertain particulars of deposits held by you, or by custodial schemes, in respect of Tenancy Deposits; and
obtain any other information and explanations we consider necessary.

B2.2 Our report is solely for use by the firm and by Propertymark and will be submitted in accordance with Propertymark’s Accounting Rules.

Monthly Management Accounts & Financial Reporting

Management Accounts & Performance Reporting – TERMS & CONDITIONS

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

Our Responsibilities – What we agree to do and be responsible for:

Prepare the management accounts for your approval based on the accounting records you maintain. We will also rely on any information and explanations you give us.

Include a report in the accounts. This report will point out that we have not carried out an audit but have compiled the management accounts from the accounting records and information and explanations supplied to us.

Your Responsibilities – What you agree to do and be responsible for

Unless we have also agreed to carry out a bookkeeping service you are responsible for all the day-to-day accounting work. This will include:

keeping the record of receipts and payments;
reconciling your records with the bank statement;
maintaining records of debtors and creditors;
carrying out or arranging for a valuation of the period-end stock levels; and
preparing details of any period-end work-in-progress.

You agree to make your accounting records and related financial information available to us in line with the requests we make. You recognise that a failure to do so could have an impact on the price or the speed of our work.

Even if we have not directly requested it, you agree to disclose to us in full any information that is relevant to the management accounts.

You will approve and sign the management accounts thereby acknowledging responsibility for them, including providing us with all information and explanations necessary for their preparation.

We have a professional responsibility to not allow our name to be associated with accounts that we believe may be misleading. We are not required to search for such matters, but if we become aware that information in the management accounts may be misleading we will discuss this with you so that appropriate adjustments or disclosures can be made. Where the adjustments or disclosures we consider appropriate are not made and we consider that the accounts remain misleading, we will withdraw from the engagement. In these circumstances you agree that we have a right to invoice you for our time spent preparing and discussing the accounts with you as well as time spent on any other work that is not completed as part of our resignation.

Our report is prepared solely for your confidential use and solely for the purpose set our above. You may not rely upon it for any other purpose whatsoever. Our report must not be made available, copied or recited to any other party. We neither owe nor accept any duty to any other party and shall not be liable for any loss, damage or expense of whatsoever nature which is caused by their reliance on our report.

You are responsible for the following general business and financial matters:

Ensuring that, to the best of your knowledge and belief, financial information used by your business or for the management accounts is accurate and complete;
Ensuring that the activities of your business are being conducted honestly;
Safeguarding the assets of your business and taking reasonable steps for the prevention and detection of fraud; and
Ensuring your business complies with the laws and regulations that apply to its activities, as well as preventing non- compliance and detecting any that occurs.

Other considerations

Limitation of liabilities and Changes in the law

Our work will not be an audit of the accounts in accordance with International Standards on Auditing (UK). This means that our work will not provide any assurance that the accounting records or the accounts are free from material misstatement, whether caused by fraud or other irregularities or error. It also means that we are unable to provide any assurance as to whether the accounts present a true and fair view.

We will not accept responsibility if you act on advice previously given by us without first confirming with us that the advice is still valid in light of any change in the law or the company’s circumstances.

We will accept no liability for losses arising from changes in the law or the interpretation thereof that occur after the date on which the advice is given.

We would like to emphasise that we cannot undertake to discover any shortcomings in your systems or any irregularities on the part of your employees. However, we will advise you if we come across anything of this nature in the course of preparing the management accounts.

One-off Management Accounts & Financial Reporting

Management Accounts & Performance Reporting – TERMS & CONDITIONS

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

Our Responsibilities – What we agree to do and be responsible for:

Prepare the management accounts for your approval based on the accounting records you maintain. We will also rely on any information and explanations you give us.

Include a report in the accounts. This report will point out that we have not carried out an audit but have compiled the management accounts from the accounting records and information and explanations supplied to us.

Your Responsibilities – What you agree to do and be responsible for

Unless we have also agreed to carry out a bookkeeping service you are responsible for all the day-to-day accounting work. This will include:

keeping the record of receipts and payments;
reconciling your records with the bank statement;
maintaining records of debtors and creditors;
carrying out or arranging for a valuation of the period-end stock levels; and
preparing details of any period-end work-in-progress.

You agree to make your accounting records and related financial information available to us in line with the requests we make. You recognise that a failure to do so could have an impact on the price or the speed of our work.

Even if we have not directly requested it, you agree to disclose to us in full any information that is relevant to the management accounts.

You will approve and sign the management accounts thereby acknowledging responsibility for them, including providing us with all information and explanations necessary for their preparation.

We have a professional responsibility to not allow our name to be associated with accounts that we believe may be misleading. We are not required to search for such matters, but if we become aware that information in the management accounts may be misleading we will discuss this with you so that appropriate adjustments or disclosures can be made. Where the adjustments or disclosures we consider appropriate are not made and we consider that the accounts remain misleading, we will withdraw from the engagement. In these circumstances you agree that we have a right to invoice you for our time spent preparing and discussing the accounts with you as well as time spent on any other work that is not completed as part of our resignation.

Our report is prepared solely for your confidential use and solely for the purpose set our above. You may not rely upon it for any other purpose whatsoever. Our report must not be made available, copied or recited to any other party. We neither owe nor accept any duty to any other party and shall not be liable for any loss, damage or expense of whatsoever nature which is caused by their reliance on our report.

You are responsible for the following general business and financial matters:

Ensuring that, to the best of your knowledge and belief, financial information used by your business or for the management accounts is accurate and complete;

Ensuring that the activities of your business are being conducted honestly;

Safeguarding the assets of your business and taking reasonable steps for the prevention and detection of fraud; and

Ensuring your business complies with the laws and regulations that apply to its activities, as well as preventing non- compliance and detecting any that occurs.

Other considerations

Limitation of liabilities and Changes in the law

Our work will not be an audit of the accounts in accordance with International Standards on Auditing (UK). This means that our work will not provide any assurance that the accounting records or the accounts are free from material misstatement, whether caused by fraud or other irregularities or error. It also means that we are unable to provide any assurance as to whether the accounts present a true and fair view.

We will not accept responsibility if you act on advice previously given by us without first confirming with us that the advice is still valid in light of any change in the law or the company’s circumstances.

We will accept no liability for losses arising from changes in the law or the interpretation thereof that occur after the date on which the advice is given.

We would like to emphasise that we cannot undertake to discover any shortcomings in your systems or any irregularities on the part of your employees. However, we will advise you if we come across anything of this nature in the course of preparing the management accounts.

Audit of Other Society

Schedule of Professional Services: Audit of the Financial Statements

1 Your responsibilities

1 As the committee of management of the society you are responsible for maintaining proper accounting records and an appropriate system of internal control for the society. You are also responsible for ensuring that the society prepares annual financial statements which give a true and fair view and that have been properly prepared in accordance with United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and the Friendly Societies Act 1974.

2 You are responsible for making available to us, as and when required, all the society’s accounting records and all other relevant records and related information, including minutes of all committee and general meetings that we need to do our work, and additional information that we may request. You will also provide us with unrestricted access to persons within the society from whom we determine it is necessary to obtain audit evidence.

3 We are entitled to require from the society’s officers and employees such other information and explanations as we think necessary for the performance of our duties as auditors.

4 You are responsible for such internal control as you determine is necessary to enable the preparation of financial statements that are free from material misstatement whether due to fraud or error. Additionally, you are also responsible for safeguarding the assets of the society, complying with laws and regulations and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

2 Our responsibilities

1 We have a statutory responsibility to report to the members whether in our opinion the financial statements:

give a true and fair view of the state of affairs of the society at the year end and of its income and expenditure for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Friendly Societies Act 1974.

In addition, we have a statutory responsibility to report by exception if, in our opinion:

the society has not kept proper books of account, and not maintained a satisfactory system of control over its transactions, in accordance with the requirements of the legislation;
the revenue account, any other accounts to which our report relates, and the balance sheet are not in agreement with the society’s books of account; or
we have not received all the information and explanations which we consider necessary for the purposes of our audit.

If we have nothing to report in respect of the above matters we will include a statement in our report confirming this.

2 We have a professional responsibility to report if the financial statements do not comply in any material respect with applicable accounting standards, unless in our opinion the non-compliance is justified in the circumstances. In determining whether or not the departure is justified we consider whether:

the departure is required in order for the financial statements to give a true and fair view; and
adequate disclosure has been made concerning the departure.

3 As noted above, our report will be made solely to the society’s members, as a body, in accordance with section 38 of the Friendly Societies Act 1974. Our audit work will be undertaken so that we might state to the society’s members those matters we are required to state to them in an auditor’s report and for no other purpose. In those circumstances, to the fullest extent permitted by law, we will not accept or assume responsibility to anyone other than the society and the society’s members as a body, for our audit work, for the audit report, or for the opinions we form. The audit of the financial statements does not relieve you of your responsibilities.

4 The provision of audit services is a business in the regulated sector under the Proceeds of Crime Act 2002 and, as such, partners and staff in audit firms have to comply with this legislation which includes provisions that may require us to make a money laundering disclosure in relation to information we obtain as part of our normal audit work. It is not our practice to inform you when such a disclosure is made or the reasons for it because of the restrictions imposed by the ‘tipping off’ provisions of the legislation.

3 Scope of audit

1 Our audit will be conducted in accordance with the International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Those standards require that we plan and perform our audit in order to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

2 As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but, except to the extent otherwise explicitly stated in our report, not for the purpose of expressing an opinion on the effectiveness of the society’s internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the committee of management.

Conclude on the appropriateness of the committee of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the society’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the society to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Read all financial and non-financial information (other information) included in the annual report other than the financial statements and identify whether the other information is materially inconsistent with the financial statements or our knowledge obtained during the audit, or otherwise appears materially misstated. You are responsible for the preparation of the other information and where, based on the work we have performed, we conclude that there is a material misstatement in this other information, we are required to report this fact.

3 Our work will be planned in advance and incorporated into an audit plan. This may be varied on the basis of our findings during the course of an audit from year to year. Accordingly, we may modify our audit scope, rotate our audit emphasis and propose matters of special audit emphasis, as circumstances dictate.

4 We shall obtain an understanding of the accounting and internal control systems in order to assess their adequacy as a basis for the preparation of the financial statements and to establish whether proper accounting records have been maintained by the society. We shall expect to obtain such appropriate evidence as we consider sufficient to enable us to draw reasonable conclusions therefrom.

5 The nature and extent of our procedures will vary according to our assessment of the society’s accounting system and, where we wish to place reliance on it, the internal control system, and may cover any aspect of the society’s operations that we consider appropriate. Our audit is not designed to identify all significant weaknesses in the society’s systems but, if such weaknesses come to our notice during the course of our audit which we think should be brought to your attention, we shall report them to you. Any such report may not be provided to third parties without our prior written consent. Such consent will be granted only on the basis that such reports are not prepared with the interests of anyone other than the society in mind and that we accept no duty or responsibility to any other party as concerns the reports.

6 The information used by you in preparing the financial statements will invariably include facts or judgements which are not themselves recorded in the accounting records. As part of our normal audit procedures, we will ask you to provide written confirmation each year of such facts or judgements and any other oral representations that we have received from you during the course of the audit on matters having a material effect on the financial statements. In particular, where we bring misstatements in the financial statements to your attention that are not adjusted, we shall require written representation as to whether you believe the effects of the uncorrected misstatements are immaterial, individually and in aggregate, to the financial statements as a whole.

7 In order to assist us with the examination of your financial statements, we shall request sight of all documents or statements which are due to be issued with the financial statements. We are also entitled to attend all general meetings of the society and to receive notice of all such meetings.

8 The responsibility of safeguarding the assets of the society and for the prevention and detection of fraud, error and non- compliance with laws and regulations rests with yourselves. However, we shall plan our audit so that we have a reasonable expectation of detecting material misstatements in the financial statements or accounting records (including those resulting from fraud, error or non-compliance with laws and regulations), but our examination should not be relied upon to disclose all such material misstatements or frauds, errors or instances of non-compliance as may exist.

9 We shall not be treated as having notice, for the purposes of our audit responsibilities, of information provided to members of our firm other than those engaged on the audit (for example information provided in connection with accounting, taxation and other services).

10 In respect of the expected form and content of our report, we refer you to the most recent bulletin on auditor’s reports published by the Financial Reporting Council at www.frc.org.uk. The form and content of our report may need to be amended in the light of our findings.

11 Once we have issued our report we have no further direct responsibility in relation to the financial statements for that financial year. However, we expect that you will inform us of any material event occurring between the date of our report and that of the Annual General Meeting which may affect the financial statements.

12 Where audited information is published on the society’s website or by other electronic means, it is your responsibility to advise us of any intended electronic publication before it occurs and to ensure that any such publication properly presents the financial information and auditor’s report. We reserve the right to withhold consent to the electronic publication of our report if it or the financial statements are to be published in an inappropriate manner. It is your responsibility to ensure there are controls in place to prevent or detect quickly any changes to that information. We are not required to review such controls nor to carry out ongoing reviews of the information after it is first published. The maintenance and integrity of the society’s website is your responsibility and we accept no responsibility for changes made to audited information after it is first posted.

13 We appreciate that the present size of the society renders it uneconomic to create a system of internal control based on the segregation of duties for different functions within each area of activity. In the running of your society we understand that the committee of management are closely involved with the control of the society’s transactions. In planning and performing our audit work we shall take account of this supervision.

4 Communication

1 In order to promote effective two-way communication between us we set out below the expected form and timing of such communications.

We shall contact by telephone weeks prior to each year-end for preliminary discussions concerning the audit. We will confirm in writing the matters discussed and any agreed action.
We will arrange a meeting to discuss the forthcoming audit, including an overview of the planned scope and timing of the audit, weeks prior to the expected start date. Again, we will confirm in writing the matters discussed and any agreed action.
We will arrange a meeting to discuss the significant findings from the audit within weeks of completing the on-site work. Again, we will confirm in writing the matters discussed and any agreed action.

Access to a company from April 2022

COMPANY SECRETARIAL SERVICE – TERMS & CONDITIONS

The purpose of the work is to assist you with all company secretarial work.

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

Our responsibilities – What we agree to do and be responsible for:

We will prepare from the information and explanations provided by you, your returns together with any supporting schedules. We will not audit or otherwise check the underlying records.

We will send you the returns and any supporting schedules for you to approve after your making the records available to us.

We will complete other returns reflecting changes in directors, shareholders etc as requested.

We will maintain the statutory records and minutes on behalf of the company secretary from the information supplied.

Your responsibilities – What you agree to do and be responsible for:

You are responsible for making correct returns by the due date.

To enable us to carry out our work you agree:

To provide full information necessary for dealing with your affairs – we will rely on the information and documents being true, correct and complete and will not audit the information or those documents.
That we can approach such third parties as may be appropriate for information that we consider necessary to deal with your affairs.
To provide us with information in sufficient time for your returns to be completed and submitted.
To provide us within seven days of signing, certified copies of directors and shareholder notices, minutes or resolutions.

The advice that we give can only be as good as the information on which it is based. In so far as that information is provided by you, or by third parties with your permission, your responsibility arises as soon as possible if any circumstances or facts alter, as any alteration may have a significant impact on the advice given. If the circumstances change therefore or your needs alter, advise us of the alteration as soon as possible in writing.