2021 Terms and Conditions

By signing our engagement letter, you are agreeing with the terms and conditions laid out here

1.Accounting

1.2   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.

1.3   We would emphasise that we cannot undertake to discover any shortcomings or irregularities in your systems although we will advise you of any such circumstances that we encounter in preparing your accounts.

1.4    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.

1.5    We have a professional responsibility not to allow our name to be associated with accounts which we consider may be misleading. Therefore, although we are not required to search for such matters, should we become aware, for any reason, that the accounts may be misleading, and the matter cannot be dealt with by means of adjustments to the accounts, we shall withdraw from the engagement and shall notify you in writing of the reasons.

1.6     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.

1.7     Accounts need to be completed prior to submission of the Self Assessment 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 by 31st October 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.

1.8     This practise is required under the Proceeds of Crime Act 2002 to make a report to the National Criminal Intelligence Service if we become aware during the course of our professional work of any circumstances which give rise to knowledge or suspicion or reasonable grounds for suspicion of a money laundering offence. The offence of money laundering may be committed by concealing, arranging or acquiring the proceeds of any criminal conduct including the proceeds of tax evasion, even if the conduct occurs outside the UK.

2 .Income Tax

2.1   We will prepare your personal Income Tax Return / the Partnership Tax Return together with all supporting schedules and prepare the calculation of your self assessment Tax and Class 4 National Insurance Contributions.

2.2    We will forward to you your Tax Return form and business accounts, for your approval and signature. Once the Return has been approved and signed by you and returned to us, we will submit them electronically to HM Revenue and Customs.

2.3     You are legally responsible for:

a) Ensuring that your Self Assessment Tax Returns are correct and complete

b) Filing any returns by the due date, and

c) Paying tax on time

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

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

2.5     To enable us to carry out our work, you agree

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

b)       To provide all information necessary for dealing with your affairs. We will rely on the information and documents being true, correct and complete and will not audit the information or those documents.

2.6     You will keep us informed of material changes in your circumstances that could affect your tax liability. If you are unsure whether the change is material, please tell us so that we can assess its significance.

2.7      We will advise you as to the amounts of Tax and National Insurance Contributions to be paid and the dates by which you should make the payments, including payments on account and the balancing payment, and if appropriate we will initiate repayment claims when Tax and National Insurance Contributions appear to have been overpaid.

2.8      We will advise as to claims and elections arising from the Tax Return and from information supplied by you and, where instructed by you, we will make such claims and elections in the form and manner required by HM Revenue and Customs.

2.9       We will undertake all correspondence with HM Revenue and Customs on your behalf. To avoid any problems, please send to us any forms or correspondence received from HM Revenue and Customs as soon as you receive them.  In particular, please ensure that no payments are made to HM Revenue and Customs without our confirmation that the demands are correct.

2.10      HM Revenue and Customs have powers to charge both interest and penalties if there is a delay in submitting Tax Returns. Such charges are automatic if Tax Returns are submitted after 31st January following the end of the tax year, or if any payments are made after the respective due dates.

2.11      It is therefore important that all details required for the preparation of your Tax Return are forwarded to us as soon as possible after 5th April each year and by 31st October at the latest. If the information is received after that date, we will not accept responsibility for any penalties or surcharges charged by HM Revenue and Customs.

2.12      HM Revenue and Customs audit a number of Tax Returns each year, many of these audits are the result of a random selection. Assistance in respect of such an enquiry is additional work and will result in separate charges.  We will keep you fully informed before undertaking any extra work in respect of such an enquiry.

2.13      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 or 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 the tax authorities.

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

2.15      We will be pleased to advise on any other taxation matters referred to us.

Your Responsibilities

2.16     You are legally responsible for:

d) Ensuring that your Self Assessment Tax Returns are correct and complete

e) Filing any returns by the due date, and

f) Paying tax on time

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

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

2.18     To enable us to carry out our work, you agree

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

d) To provide all information necessary for dealing with your affairs. We will rely on the information and documents being true, correct and complete and will not audit the information or those documents.

2.19     You will keep us informed of material changes in your circumstances that could affect your tax liability. If you are unsure whether the change is material, please tell us so that we can assess its significance.

3.Payroll Services

3.1    We will prepare your UK payroll for each payroll period to meet UK employment tax requirements, specifically:

  • calculating the pay as you earn (PAYE) deductions
  • calculating the employees’ National Insurance Contributions (NIC) deductions
  • calculating the employer’s NIC liabilities
  • calculating statutory payments, for examples, Statutory Sick Pay and/or Statutory Maternity Pay
  • submitting information online to HM Revenue and Customs under Real Time Information (RTI) for PAYE.

3.2    We will prepare and send to you the following documents before the time of payment through the payroll or due date for delivering information to HM Revenue and Customs:

  • a payslip for each employee
  • a P45 for each leaver, and
  • a report showing your PAYE and NIC liability and due date for payment.

3.3    We will submit FPSs (Full Payment Submissions) online to HM Revenue and Customs in accordance with the payroll data provided by you. FPSs must reach HM Revenue and Customs normally on or before payday.

3.4     We will prepare, where appropriate (for example, to recover statutory payments, claim deductions under the NIC holiday scheme or CIS deductions, confirm that no payments were made to employees), for each tax month, an EPS (Employer Payment Summary) from the information and explanations that you provide to us.

3.5     We will submit EPSs to HM Revenue and Customs after the data to be included therein has been approved by you. EPSs must reach HM Revenue and Customs by the 19th of the month following the tax month to which they relate.

3.6      At the end of the payroll year we will:

  • prepare the final FPS (or EPS) including Employer Annual Declarations and submit this to HM Revenue and Customs after the data to be included therein has been approved by you. The final FPS (or EPS) for the year must reach HM Revenue and Customs by 19th April following the end of the tax year.
  • prepare and send to you by the statutory due date Form P60 for each employee on the payroll at the year end.

3.7     We will deal with any online secure messages sent to us by HM Revenue and Customs in respect of your payroll, and

3.8     We will submit National Insurance Number (NINO) verification requests as appropriate to verify or obtain a NINO for a new employee.

3.9     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 such work when it is commissioned by you.  Examples of such work include:

  • dealing with any compliance check or enquiry by HM Revenue and Customs into the payroll returns
  • preparing any amended returns for periods before you report in real time, which may be required, and corresponding with HM Revenue and Customs as necessary
  • preparing and submitting correcting EPSs for earlier years
  • preparing and submitting any Earlier Year Update (EYU) to correct, after 19th April, any of the year to date totals submitted in your end of year FPS for a previous tax year, in respect of years after you started to send information in real time.

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

3.11    You are legally responsible for:

a) ensuring that the data in your payroll submissions is correct and complete

b) making any submissions by the due date, and

c) making payment of Tax and NIC on time.

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

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

3.12    To enable us to carry out our work you agree:

a) that all information required to be delivered online is submitted on the basis of full disclosure

b) 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

c) 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 those individuals

d) to advise us in writing of changes of payroll pay dates

e) To notify us at least 5 working days, or such other period as agreed with us, prior to the payroll pay date of all transactions or events which may need to be reflected in the payroll for the period, including details of;

  • all new employees (including full names, address, date of birth, national insurance number and details of their remuneration packages)
  • all leavers, including deaths of employees, and details of termination arrangements
  • all changes to remuneration packages
  • all pension scheme changes
  • irregular and/or ad hoc payments and the dates to be paid
  • f) To authorise us to approach such third parties as may be appropriate for information that we consider necessary to deal with your affairs.

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

3.14      If the information required to complete the payroll services set out above is received later than the dates specified above or agreed with us we will still endeavour to process the payroll and returns to meet the agreed payroll date and filing deadlines but we will not be liable for any costs or other losses arising if the payroll is late or the returns are filed late in these circumstances.

3.15      We are registered under the Data Protection Act 1984 as a computer bureau and we undertake to preserve the security of information required by this Act but the responsibility for the release of information to third parties resides with you as employer. It follows therefore that it is in our mutual interest only to release reports or information concerning these processed records to persons nominated by the employer.

4.P11D Benefits for Directors, Officers and Employees Earning over £8,500.

4.1     We will carry out the following in respect of forms P11D:

a) We will prepare forms P11D as may be required for each employee including directors, from the accounts, information and explanations provided to us on your behalf;

b) We will submit the forms P11D with the form P11D(b) after the form P11D(b) has been signed by you;

c) We will prepare and send to you the P11D information for you to forward to your employees and directors by the statutory due date;

d) We will calculate your Class 1A NIC liability, on the benefits returned in forms P11D, that you are obliged to pay HM Revenue & Customs by the due date and send payment instructions to you as agreed to action payment.

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

Your Responsibilities

4.3    To avoid penalties, you agree to supply us with complete and accurate details of all benefits and reimbursed expenses for the tax year (not the accounts year) within 14 days of the end of the tax year.

5.Taxation

5.1   We will prepare your personal Income Tax Return, in accordance with information you provide to us, together with all supporting schedules and prepare the calculation of your self assessment tax liability.

5.2    We will forward to you the Tax Return for your approval and signature. Once the Return has been approved and signed and returned to us, we will submit it electronically to HM Revenue and Customs.

5.3     We will advise you as to the amounts of tax to be paid and the dates by which you should make the payments, including payments on account and the balancing payment, and if appropriate we will initiate repayment claims when tax appears to have been overpaid.

5.4     We will advise as to claims and elections arising from the Tax Return and from information supplied by you and, where instructed by you, we will make such claims and elections in the form and manner required by HM Revenue and Customs.

5.5     We will undertake all correspondence with HM Revenue and Customs on your behalf. To avoid any problems, please send to us any forms or correspondence received from HM Revenue and Customs as soon as you receive them.  In particular, please ensure that no payments are made to HM Revenue and Customs without our confirmation that the demands are correct.

5.6     HM Revenue and Customs have powers to charge both interest and penalties if there is a delay in submitting a Tax Return. Such charges are automatic if the Tax Return is submitted after 31st January following the end of the tax year, or if any payments are made after the respective due dates.

5.7      It is therefore important that all details required for the preparation of your Tax Return are forwarded to us as soon as possible after 5th April each year and by 31st October at the latest. If the information is received after that date, we will not accept responsibility for any penalties or surcharges charged by HM Revenue and Customs.

5.8      HM Revenue and Customs audit a number of Tax Returns each year, many of these audits are the result of a random selection. Assistance in respect of such an enquiry is additional work and will result in separate charges.  We will keep you fully informed before undertaking any extra work in respect of such an enquiry.

6.Value Added Tax (VAT)

6.1      We will prepare your quarterly VAT Returns on the basis of the information and explanations supplied by you.

6.2      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.

6.3      We will forward to you the completed return calculations for you to review, before you approve the VAT Return for onward transmission by us to HM Revenue & Customs.

6.4     You authorise us to file the return electronically once we have received your approval of the figures. When we submit the return online we are doing this on your behalf as your agent.  We will not submit the return online until we have received confirmation from you that you have reviewed the entries to be made on the online return and that you consider the Return to be complete, accurate and ready for online submission.

6.5      We will also provide such other taxation ad hoc advisory services in relation to VAT 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 this work when it is commissioned by you.  Examples of such work include:

a) Dealing with all communications relating to your VAT returns addressed to us by HM Revenue & Customs or passed to us by you;

b) Dealing with any enquiry opened into the VAT returns by HM Revenue & Customs;

c) Providing you with advice on VAT, Excise Duty and Customs Duty as and when requested.

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

6.7 You are legally responsible for:

a) Ensuring that your returns are correct and complete;

b) Filing any return 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.

Although we will submit the return online as your agent, this does not waive your legal responsibilities.

6.8    You are entirely responsible for the payment of any VAT, including interest, surcharges or other penalties. Where your return is submitted online you are required to make payment by electronic means.  We will advise you of the amounts due for payment, however, it is your responsibility to arrange and make the payment.  Please note that penalties may apply where payments are not made by the due date.

6.9    To enable us to carry out our work you agree:

a)  That all returns are to be made on the basis of full disclosure;

b)  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 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;

c)  That we can approach such third parties as may be appropriate for information we consider necessary to deal with the VAT returns; and

d)  To provide us with all the records relevant to the preparation of your quarterly VAT returns as soon as possible after the return period ends. We would ordinarily need a minimum of 10 days before submission to complete our work.  If the records are provided later or are incomplete or unclear thereby delaying the preparation and submission of the VAT return, we accept no responsibility for any “default surcharge” penalty that may arise.

6.10    You will keep us informed of material changes in circumstances that could affect the tax liabilities of the Company. If you are unsure whether the change is material or not, please let us know so that we can assess the significance or otherwise.

6.11   You will forward to us all relevant HM Revenue & Customs VAT correspondence in time to enable us to deal with matters arising as may be necessary within the statutory time limits. Although HM Revenue & Customs 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 HM Revenue & Customs to avoid any breakdown in communication.

6.12    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.

 Your Responsibilities

6.13    You are legally responsible for making a correct VAT return, and for payment of VAT on time.  Our appointment as agents does not absolve you from your statutory obligations.

6.14    We shall be responsible for preparing your VAT returns from the records of the business.  We shall not audit or otherwise check the underlying records.  When the VAT return has been completed from the information supplied, we will send the return form to you.  If you agree the return you should then sign and submit it to HM Revenue and Customs together with the required payment.  If you consider the return to be incorrect please consult us immediately.

6.15        We would draw your attention to the normal time limit of one month from the end of the period covered by the return.  By this time, the return must be signed by the appropriate person and be in the possession of HM Revenue and Customs.  Substantial penalties may arise if this time limit is not observed.  It is therefore essential that we, as your agent, are supplied with all the relevant information in good time so that we can complete the return on your behalf.

6.16      We accept no responsibility for any default surcharge that may arise if the books and records are not available to us within 17 days after the return period ends or the books and records prove to be incomplete or unclear, and in particular are not written up to the end of the period, thereby delaying the preparation and submission of the VAT return, or you fail to submit the return and any required payment to HM Revenue and Customs on time after we have sent the return to you for signature.

6.17        In order for us to prepare the VAT returns, we shall require you to provide us with the following up to date information:

a)  Blank returns issued by HM Revenue and Customs

b)  Sales Day Book, Sales Invoices and Credit Notes

c)  Analysed Receipts Cash Book

d)  Analysed Payments Cash Book

e)  Relevant Purchase Invoices and Credit Notes

f)  Bank Statements

g)  Any other relevant documents or information

h)  Details of any special rulings by HM Revenue and Customs

i)   Details of any VAT penalty notices with ongoing relevance

j)   Details in respect of all transactions which have come to light since the last VAT Return was prepared and which require adjustment.

STANDARD TERMS OF BUSINESS

The following standard terms of business apply to all engagements accepted by Woolmer & Kennedy.  All work carried out is subject to these terms except where changes are expressly agreed in writing.

1  Professional Rules and Statutory Obligations

1.1   We will observe and act in accordance with the byelaws, regulations and code of ethics of the Institute of Chartered Accountants in England and Wales and will accept instructions to act for you on this basis. We will not be liable for any loss, damage or cost arising from our compliance with statutory or regulatory obligations.  You can see copies of these requirements in our offices.  The requirements are also available on the internet at icaew.com/en/members/regulations-standards-and-guidance.

1.2   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.

1.3   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.

1.4   It is a requirement of the Institute of Chartered Accountants in England and Wales that we periodically renew our letter of engagement.

2    Investment Services

2.1          We are not authorised by the Financial Services Authority to conduct Investment Business.  If you require investment business services we will refer you to a firm authorised by the Financial Services Authority.

3   Fees

3.1          Our fees are computed on the basis of time spent on your affairs by the principals and our staff, and on the levels of skill and responsibility involved.

3.2          We will charge the following rates per hour for time engaged on your affairs by the relevant person from now until the review date, on 30th April next, and annually thereafter:

Partner                                                                     £90

Accounts Manager                                               £45

Accounts Senior                                                    £35

Accounts Clerk                                                       £25

Accounts Junior                                                     £15

 

3.3          On 30th April each year we will review the hourly rates to take account of changes in our business costs.

3.4          We will add VAT to our charges at the rate that applies when the work is done.  The current VAT rate is 20%.

3.5          If it is necessary to carry out work outside the responsibilities outlined in this letter it will involve additional fees.  Accordingly, we would like to point out that it is in your interests to ensure that your records, etc. are completed to the agreed stage.

3.6          Invoices are payable in full before the report is signed and the financial statements are made available.

3.7          Our terms relating to payment of amounts invoiced are strictly 30 days net.  Interest will be charged on all overdue debts at the rate for the time being applicable under the Late Payment of Commercial Debts (Interest) Act 1998.

  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 and audit of your financial statements. 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 documents you must notify us of that fact in writing.

5              Confidentiality

5.1    We confirm that 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 our engagement.

5.2    You agree that it will be sufficient compliance with our duty of confidence for us to take such steps as we in good faith think fit to preserve confidential information both during and after termination of this engagement.

6              Conflicts of Interest

6.1          We will inform you if we become aware of any conflict of interest in our relationship with you or in our relationship with you and another client unless we are unable to do so because of our confidentiality obligations.  We have safeguards that can be implemented to protect the interest of different clients if a conflict arises.  Where conflicts are identified which cannot be managed in a way that protects your interests then we regret that we will be unable to provide further services.

6.2          If there is a conflict of interest that is capable of being addressed successfully by the adoption of suitable safeguards to protect your interests then we will adopt those safeguards.  We reserve the right to provide services for other clients whose interests are not the same as yours or are adverse to yours subject of course to the obligations of confidentiality referred to above.

7              Quality Control

7.1          As part of our ongoing commitment to providing a quality service, our files are periodically subject to an independent quality review.  Our reviewers are highly experienced and professional people and, of course, are bound by the same requirements for confidentiality as our principals and staff.

8              Help Us to Give You the Right Service

8.1          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, by contacting Mr W. Wood.

8.2          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.  If you are still not satisfied, you may of course take up matters with The Institute of Chartered Accountants in England & Wales.

9              Applicable Law

9.1          This engagement letter is governed by and construed in accordance with English law.  The Courts of England will have exclusive jurisdiction in relation to any claim, dispute or difference concerning this engagement letter and any matter arising from it.  Each party irrevocably waives any right it may have to object to any action being brought in those courts, to claim that the action has been brought in an inappropriate forum, or to claim that those courts do not have jurisdiction.

10           Internet & Electronic Communication

10.1        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.

10.2        It is the responsibility of the recipient to carry out a virus check on any attachments received.

11           Data Protection Act 1998

11.1        We may obtain, use, process and disclose personal data about you in order that we may discharge the services agreed under this engagement letter, and for other related purposes including updating and enhancing client records, analysis for management purposes and statutory returns, crime prevention and legal and regulatory compliance.  You have a right of access, under data protection legislation, to the personal data that we hold about you.  We confirm that when processing data on your behalf we will comply with the provisions of the Data Protection Act 1998.  For the purposes of the Data Protection Act 1998, the Data Controller in relation to personal data supplied about you is Mr W. Wood.

12           General Data Protection Registration (GDPR)

12.1        We hold only the personal data that we need in order to provide you with the services you require and to enable us to assist you to meet your legal obligations.

We do not pass your details on to any third party, unless:

  • you specifically ask us to do so
  • there is a legal obligation for us to do so, or
  • to gather information to enable us to carry out our obligations on your behalf.

12.2        We keep personal data for a period of up to 2 years from the date that you cease to be a client or longer where there is a legal obligation to do so.

If you wish to verify your personal data held by us please contact us at the address on this letter.

13           Contracts (Rights of Third Parties) Act 1999

13.1        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.

13.2        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. 

14           The Proceeds of Crime Act 2002 and the Money Laundering Regulations 2007

14.1        We have a duty under Section 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 activities, 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.

14.2        The offence of money laundering is defined by Section 340(11) of the Proceeds of Crime Act and includes the acquisition, possession or involvement in arrangements for concealing the benefits of any activity that constitutes a criminal offence in the UK.  This definition is very wide and would include:

  • tax evasion through deliberate understatement of income or overstatement of expenses or stocks; or
  • deliberate failure to inform the tax authorities of known underpayments.

14.3        We are obliged by law to report to NCIS without your knowledge and consent and in fact we would commit the criminal offence of tipping off under Section 333 of the Proceeds of Crime Act were we to inform you of any suspicions or that a report had been made.

14.4        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 guidance published by The Institute of Chartered Accountants in England & Wales.

15           Limitation of Liability

15.1        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 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 the tax authorities.

15.2        You agree to hold harmless and indemnify us, our partners and staff, against any misrepresentation (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 the services provided to you by the firm against any of our employees on a personal basis.

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

15.4        We will be pleased to advise on any other taxation matters referred to us.

16            Changes in the Law

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

16.2        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.