Terms and Conditions
Standard Terms of Engagement
This page sets out the basis on which we are to act, our respective responsibilities and our Standard Terms of Business.
1.1 We emphasise that we cannot undertake to discover any shortcomings in your systems or any irregularities on the part of your employees, although we will advise you of any such circumstances that we encounter in preparing your accounts.
Your responsibilities: Provision of information by you
1.2 To enable us to carry out our work you agree:
(a) 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.
(b) that we can approach such third parties as may be appropriate for information that we consider necessary to deal with your affairs.
2.1 You have instructed us to prepare your financial statements. It was agreed that we should carry out the following accounting and other services:
(a) write up the accounting records of the business insofar as they are incomplete when presented to us;
(b) complete the postings to the nominal ledger; and
(c) prepare the accounts for approval by yourselves.
2.2 You have agreed that you will:
(a) Provide us with all the required documents as set out in the checklist on wedoyouraccounts.com, a copy of which will be provided to you after purchase
(b) Complete and sign the checklist sent to you after purchase requiring the provision of basic financial information and setting out the documents required from you
2.3 If you do not comply with the obligations set out in clause 2.2 above, you agree to indemnify us for reasonable administration costs we incur as a result.
2.4 We will not be carrying out an audit 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 require additional work to comply with Auditing Standards so that we could report on the truth and fairness of the accounts.
2.5 We would emphasise that we cannot undertake to discover any shortcomings in your systems or any irregularities on the part of your employees, although we will advise you of any such circumstances that we encounter in preparing your accounts.
2.6 To ensure that anyone reading the financial statements is aware that we have not carried out an audit we will annex to the financial statements a short report. This report must remain attached to any accounts shown to any other parties.
2.7 Accounts need to be completed prior to submission of the tax return. Failure to submit the return on time will result in penalties and is likely to result in interest and surcharges. In order to avoid this, we must have your accounting records in good time before the statutory filing deadline and queries raised on those accounting records must be answered promptly, otherwise we cannot guarantee the completion of the accounts to ensure the tax return’s timely submission. We reserve the right to levy an additional fee where records are not received in good time.
Your responsibilities as members
3.1 As members of the LLP, you are required to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the LLP and of the profit or loss of the LLP for that period. In preparing those financial statements, you are required to:
(a) select suitable accounting policies and then apply them consistently;
(b) make judgements and estimates that are reasonable and prudent; and
(c) prepare the financial statements on the going concern basis unless it is inappropriate to presume that the LLP will continue in business.
3.2 You are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the LLP and to enable them to ensure that the financial statements comply with Part VII of the Companies Act 1985 (the Act) as applied by the Limited Liability Partnership Regulations 2001 (SI 2001/1090) and the Statement of Recommended Practice: Accounting by Limited Liability Partnerships. You are also responsible for safeguarding the assets of the LLP and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
3.3 You are responsible for determining whether, in respect of the year, the LLP meets the conditions for exemption from an audit set out in section 249A(1) of the Act, namely that:
(a) it qualifies as a small LLP in relation to that year for the purposes of section 247;
(b) its turnover in that year is not more than the prescribed limit; and
(c) its balance sheet total for the year is not more than the prescribed limit.
3.4 You are responsible for determining whether, in respect of the year, the exemption is not available for any of the reasons
set out in section 249B of the Act; namely that at no time during the year was the LLP:-
(a) a person that had permission under Part 4 of the Financial Services and Markets Act to carry on a regulated activity;
(b) carrying on an insurance market activity;
(c) enrolled in the list maintained by the Insurance Brokers Registration Council under section 4 of the Insurance Brokers Registration Act 1977;
(d) an appointed representative, within the meaning of section 39 of the Financial Services and Markets Act 2000.
(e) a special register body as defined in section 117(1) of the Trade Union and Labour Relations (Consolidation) Act
1992 or an employers’ association as defined in section 122 of that Act;
(f) a member of a group that exceeded the group exemption limits; or
(g) a member of an ineligible group.
3.5 The exemption is available only if you, as members, sign a declaration on the balance sheet to stating that:
(a) for the year in question, the LLP is eligible to take advantage of the audit exemptions;
(b) the members have not required the LLP to obtain an audit of its financial statements for the year in accordance with section 249B(2) of the Companies Act 1985; and
(c) you acknowledge your obligations to keep proper accounting records and to prepare financial statements which give a true and fair view of the state of the LLP’s affairs and of its profit or loss for the period.
3.6 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 shareholders’ meetings, necessary to carry out our work. You will make full disclosure to us of all relevant information.
3.7 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.
3.8 We do not have any responsibility to report whether any shareholder of the LLP has notified the LLP that he or she requires an audit. Consequently we have no responsibility to carry out any work in respect of this matter.
3.9 Should our work indicate that the LLP is not entitled to exemption from an audit of the financial statements, then we will inform you of this. In these circumstances, if appropriate, we will discuss with you the need for you to appoint an auditor. Our fee will be non-refundable in such a case.
3.10 We have a professional duty to prepare financial statements that conform with generally accepted accounting principles. Furthermore, as members, you have a duty to prepare financial statements that comply with Part VII of the Companies Act 1985, the Statement of Recommended Practice: Accounting by Limited Liability Partnerships and applicable accounting standards. Where we identify that the financial statements do not conform to accepted accounting principles or if the accounting policies adopted are not immediately apparent, this will be made clear in our report, if it is not clear in the financial statements.
Scope of work
3.11 Our work will not be an audit of the financial statements in accordance with Auditing Standards. Accordingly, we will not obtain any evidence relating to entries in the accounting records, or to the financial statements or to the disclosures in the financial statements. Nor will we make any assessment of the estimates and judgements made by you in the preparation of the financial statements. 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, or other irregularities or error. In addition, we have no responsibility to determine whether you have maintained proper accounting records in accordance with section 221 of the Act and we will not address this point unless you specifically request us in writing to do so.
3.12 Since we have not carried out an audit, nor confirmed 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.
3.13 As part of our normal procedures when preparing the financial statements, we will attach an accountant’s report to them. This report will state that they have been prepared from the books and records of the LLP and from information supplied by the members. This report should not be filed with the financial statements at Companies House.
3.14 As part of our normal procedures we may request you to provide written confirmation of any information or explanations given to us orally during the course of our work.
4 Corporation Tax
4.1 We will prepare from the accounts and other information and explanations provided by you the company’s corporation tax return and computations, together with all supporting schedules and, where necessary, amended returns.
4.2 We will send you the tax return and supporting schedules for you to approve and sign. We will then submit it, with the accounts and computations, to HM Revenue & Customs.
4.3 We will advise you of the amounts of corporation tax to be paid and the dates by which the company should make the payments.
4.4 We will prepare the tax provisions and disclosures to be included in the company’s statutory accounts.
Your responsibilities: Provision of information by you
4.5 The company is 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 and/or interest.
4.6 To enable us to carry out our work you agree:
(a) that all returns are to be made on the basis of full disclosure of all sources of income, charges, allowances and capital transactions;
(b) to provide full information necessary for dealing with the company’s affairs: we will rely on the information and documents being true, correct and complete and will not audit the information or those documents;
(c) that we can approach such third parties as may be appropriate for information that we consider necessary to deal with the company’s affairs;
(d) to provide us with information in sufficient time for the company’s tax returns to be completed and submitted by the statutory filing date
(e) to keep us informed about significant transactions or changes in circumstances.
5 Personal Taxation
5.1 This section only applies if a personal tax return is requested and paid for by you.
5.2 We will prepare the income tax computations based on the accounts of your business (if applicable) from the accounting records and other information and explanations provided by you.
5.3 We will prepare your personal tax return together with such supporting schedules as are appropriate and we will prepare a computation of your self-assessment liability of tax and any Class IV National Insurance Contributions.
5.4 We will send you your tax return, tax computations and supporting schedules for you to approve and sign. We will then submit the form to HM Revenue & Customs on your behalf.
5.5 We will tell you how much tax and National Insurance Contributions you should pay and when. If appropriate we will initiate repayment claims when tax and/or National Insurance Contributions have has/have been overpaid.
5.6 In purchasing a personal tax return, you warrant that each person for whom a tax return is to be completed is a partner of the partnership or LLP, a director of the company, or the sole trader (whichever is relevant) for which the accounts are to be completed by us.
5.7 You also warrant that each person for whom a personal tax return is to be completed has no other trade or profession that is not on PAYE, and does not have any rental income.
5.8 You agree to indemnify us against any loss, costs or expenses occasioned to us from a breach of any of the warranties gives in clauses 5.6 and 5.7.
5.9 Further and/or alternatively, you agree to pay us a reasonable administration fee if you breach any of the warranties given in clauses 5.6 or 5.7.
6 Partnership Tax
6.1 We will 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.
6.2 We will prepare the firm’s annual partnership return, including the partnership statement of total income, gains, losses, tax credits and charges of the firm for each period of account ending in the return period.
6.3 We will send you the income tax and capital gains tax computations and the tax return and supporting schedules for you to approve and sign. We will then submit the return form to HM Revenue & Customs.
6.4 We will prepare the tax provisions and disclosures to be included in the partnership’s financial accounts.
7.1 You warrant that you have selected the correct level of turnover for your business. You agree to pay an additional reasonable fee if the level of turnover is incorrect
7.2 You agree to indemnify us against any loss, costs or expenses occasioned to us from a breach of any of the warranties set out in clause 7.1 above.
7.3 If your turnover is in fact between £70,000 and £250,000 per annum and you have paid for accounts based on a turnover of less than £70,000 per annum then you agree to pay the price for accounts based on a turnover of between £70,000 and £250,000 as set out on wedoyouraccounts.com at the time of purchase.
7.4 You agree to pay us a reasonable administration fee if you breach any of the warranties given in clause 7.1
Standard Terms of Business
1. Professional Obligations
1.1 Where you give us confidential information we shall at all times keep it confidential, except as required by law or as provided for in regulatory, ethical or other professional pronouncements applicable to this engagement.
1.2 We reserve the right to act during this engagement for other clients whose interests may be adverse to yours. We will notify you immediately should we become aware of any conflict of interest to which we are subject in relation to you.
2. Investment Services
2.1 We are not authorised by the Financial Services Authority to conduct Investment Business.
3.1 We Do Your Accounts operates a fixed fee policy for all clients.
3.2 If you do not comply with the checklist, you will be responsible for an administration charge to cover the cost of rectifying any deficiencies in the documents provided. Due to the low cost nature of our business, the administration charge involved may be a significant proportion or indeed the same price as the price paid for the provision of accounts.
3.3 If the correct documents are not provided, you agree to provide us with the correct documents within a reasonable period. After the provision of the documents, there will be no obligation on us to complete your accounts until the administration fee and any other charges have been paid in full.
3.4 Any administration fee must be paid within fourteen days of being demanded. Interest at the rate of 8% above the prevailing Bank of England base rate will apply on any late payment.
3.5 The Directors of the company jointly and severally guarantee personally that all fees will be paid within the payment terms.
4. Retention of and Access to Records
4.1 During the course of our work we will collect information from you and others acting on your behalf and will return any original documents to you following the preparation of your financial statements and returns. You should retain these records for at least seven years from the end of the accounting year to which they relate.
4.2 Whilst certain documents may legally belong to you, we intend to destroy correspondence and other papers that we store which are more than seven years old, other than documents which we consider to be of continuing significance. If you require retention of any document you must notify us of that fact in writing.
4.3 We reserve the right to use subcontractors to prepare aspects of our work and you acknowledge that your books and records may not necessarily be stored or located at this office for the duration of the assignment.
5 Help Us to Give You the Right Service
5.1 If at any time you would like to discuss with us how our service to you could be improved, or if you are dissatisfied with the service you are receiving, please let us know.
5.2 We undertake to look into any complaint carefully and promptly and to do all we can to explain the position to you. If you feel that we have given you a less than satisfactory service, we undertake to do everything reasonable to address your concerns.
6 Applicable Law
6.1 The Courts of England and Wales will have exclusive jurisdiction in relation to any claim, dispute or difference concerning our service and any matter arising from it.
7 Internet Communication
7.1 Internet communications are capable of data corruption and therefore we do not accept any responsibility for changes made to such communications after their despatch. It may therefore be inappropriate to rely on advice contained in an e-mail without obtaining written confirmation of it. We do not accept responsibility for any errors or problems that may arise through the use of internet communication and all risks connected with sending commercially sensitive information relating to your business are borne by you. If you do not agree to accept this risk, you should notify us in writing that e-mail is not an acceptable means of communication.
7.2 It is the responsibility of the recipient to carry out a virus check on any attachments received.
8 Data Protection Act 1998
8.1 The Data Protection Act gives you rights in respect of information held about you (“Personal Data”). We will obtain, use, and process Personal Data about you in order that we may discharge the services agreed under this engagement letter. Your Personal Data will typically include your name, address, details of your financial affairs and other information about you relevant to providing you with the services. We may also use your Personal Data for related purposes including updating and enhancing client records, analysis for management purposes and statutory returns, crime prevention and legal and regulatory compliance. We may also use your Personal Data for marketing purposes so that we can keep you up-to-date about issues relevant to our services and to provide you with information about our services.
8.2 We may disclose your personal data to third parties so that we can provide the services to the high standards we consider appropriate. Such Third Parties may include banks, insurance companies, independent financial advisors, and any company to which we are under licence (including our franchisor.) We may disclose your personal data to those that need the information such as Government Agencies, subcontractors and outsourcers and those we choose to such as independent financial advisors. Such parties may contact you with a list of the third parties on request. In signing this engagement letter, you agree that we may transfer your Personal Data outside the European Economic Area. You should be aware that the countries to which we may pass your Personal Data may not have such stringent Protection for Personal Data nor have laws to protect your Personal Data. Details of the companies and countries involved will be provided on request.
8.3 You may have a right of access, under the Data Protection Act 1998, to copies of the Personal Data that we hold about you. A copy of our data protection policy is available on request and is held on our website. You should contact us if you have any queries about data protection or about the Personal Data we hold about you.
9 Contracts (Rights of Third Parties) Act 1999
9.1 Persons who are not party to this agreement shall have no rights under the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this agreement. This clause does not affect any right or remedy of any person which exists or is available otherwise than pursuant to that Act.
9.2 The advice that we give to you is for your sole use and does not constitute advice to any third party to whom you may communicate it. We accept no responsibility to third parties for any aspect of our professional services or work that is made available to them.
9.3. We do your accounts.com is the trading name of Friedmans Chartered Accountants.
10 Money Laundering
10.1 We have a duty under s. 330 of the Proceeds of Crime Act 2002 to report to the National Criminal Intelligence Service (NCIS) if we know, or have reasonable cause to suspect, that you, or anyone connected with your business, are or have been involved in money laundering. Failure on our part to make a report where we have knowledge or reasonable grounds for suspicion would constitute a criminal offence.
10.2 The offence of money laundering is defined by s. 340(11) of the Proceeds of Crime Act and includes concealing, converting, using or possessing the benefits of any activity that constitutes a criminal offence in the UK. It also includes involvement in any arrangement that facilitates the acquisition, retention, use or control of such a benefit. This definition is very wide and would include such crimes as:-
• Deliberate tax evasion
• Deliberate failure to inform the tax authorities of known underpayments or excessive repayments
• Fraudulent claiming of benefits or grants; or
• Obtaining a contract through bribery
10.3 We are obliged by law to report any instances of money laundering to NCIS without your knowledge or consent. In fact, we may commit the criminal offence of tipping off under s. 333 of the Proceeds of Crime Act if we were to inform you that a report had been made. In consequence, neither the firms’ principals nor staff may enter into any correspondence or discussions with you regarding such matters.
10.4 We are not required to undertake work for the sole purpose of identifying suspicions of money laundering. We shall fulfil our obligations under the Proceeds of Crime Act 2002 in accordance with the current guidelines.
11 Limitation of Liability
11.1 We will provide our professional services with reasonable care and skill. However, we will not be held responsible for any losses arising from the supply by you or others of incorrect or incomplete 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 or other relevant authorities.
11.2 You agree to hold harmless and indemnify us against any misrepresentation, whether intentional or unintentional, supplied to us orally or in writing in connection with this agreement. You have agreed that you will not bring any claim in connection with services provided to you by the firm against any of our employees on a personal basis.
Website Disclaimer – advice shared in this website is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading anything on this website, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.