T4 Client Engagement Accounts Agreement - Limited Companies Engagement Agreements - Accounts - Limited Companies Engagement Agreements - Accounts - Limited Companies ESTIMATED TIME: 15 Minutes INTRODUCTION NOTE: This agreement is specific to year end accounts for Limited companies. All clients should ensure they have also read and agreed to our "General Terms" agreement. The purpose of this agreement is to set out the basis on which we will provide this specific service, including your responsibilities and our responsibilities. We will only prepare year-end accounts where: a) we also assist with bookkeeping, payroll and VAT returns (which each have their own engagement agreements) and, b) where clients are using bookkeeping software recommended or agreed to by us, e.g. Quickbooks. At the end of this agreement process you will be asked to agree and sign. If you are in any doubt about any aspects of his service or agreement you must raise those issues with us BEFORE you sign the agreement. If you are unable to agree to the terms and conditions of this service, we will not be able to provide this service to you. T4 Tax Limited are not registered "auditors". Therefore, we do not undertake audit services. Where an audit required this would need to be done by a separate registered auditor. When an audit is required is covered later in this agreement. Read and Continue Yes, continue BASIC CLIENT INFORMATION Next, we will ask for your name and company name etc. Your Company Name (In Full) * Your First Name * Your Surname * Your Email * Agree and continue * Yes, agree and continue WHAT YOU MUST DO Next, we will explain your responsibilities in relation to this service agreement YOUR FINANCIAL & ACCOUNTING RESPONSIBILITIES * Directors have legal responsibilities under the Companies Act in respect of financial records. These include: a) arranging the preparation of financial statements, b) that give a "true and fair view" of the company's financial position, that, c) correctly reflect the assets, liabilities and profit or loss of the company. d) using suitable and consistent accounting policies, e) using reasonable and prudent judgements, f) on a "going concern" basis, which in simple terms means remain solvent and able to pay its bills, unless it is in the process of a winding up, g) maintain sufficient and accurate ongoing records to facilitate the above, h) to a standard that complies with United Kingdom "Generally Accepted Accounting Practice" (UK GAAP), i) while also safeguarding assets, j) operating systems and processes to mitigate against fraud or dishonest conduct, error or materially inaccurate records or statements, k) ensuring the company complies with applicable laws and other compliance requirements, l) ensure that any bookkeeping, admin, or accounting activities comply with all the above, and, m) determine for each accounting period if the company meets the conditions to qualify for exemption from "audit" of the financial statements under s. 477 or s. 479A, or s. 480 of the Companies Act, and, n) ensure exemption from audit is not available for any reasons in s.478, s.479 or s.479B of the Act. It is your responsibility to: a) reply promptly to any requests by us for information we need from you, b) provide us with accurate and full replies to our requests for information. The following link will take you to the UK Legislation referred to in m) and n) above about "audit" requirements, based on size of the company or if any shareholders have requested and audit. LINK: See Sections 477 onwards via this link (opens new tab) (NOTE: Audited accounts preparation is a lot more expensive than non audit accounts preparation) The following link will take you to the Gov.uk web pages which explain the size of companies, based on turnover, assets and employee numbers that then require an audit in the UK. LINK: Gov.uk Limited Company Accounts Guidance) YOUR TAX RESPONSIBILITIES * It is your responsibility to: a) ensure that sufficient funds are saved during the course of the accounting period to enable the company to have enough money to pay is Corporation Tax on time, b) failing to keep sufficient funds aside mentioned in a) above, throughout the period as profits are earned, can also lead to other negative tax consequences, c) promptly sign any returns or documents that need your approval, d) pay any Corporation Tax due on time. e) Corporation tax is usually payable 9 months and 1 day after the end of the accounting period. f) We recommend that Corporation Tax funds are saved into a separate business savings account so that earmarked funds are more easily identifiable. g) Using an interest bearing savings account can also help generate some return on the savings. YOUR OTHER GENERAL RESPONSIBILTIES * YOU MUST Notify us IMMEDIATELY of any changes to: i) the directors, ii) shareholders, iii) registered office of the company As soon as those changes take place. Agree and Continue * Yes, agree and continue WHAT WE WILL DO Next, we will explain our responsibilities in relation to this service agreement. SCOPE OF OUR ACCOUNTS WORK * We will, a) prepare the annual financial statements based on the accounting records maintained, c) provide draft annual financial statements for your approval. d) We will plan our work on the basis that no report on the financial statements is required by statute or regulation for the year, unless you inform us in writing to the contrary. e) In carrying out our engagement we will liaise with you, and your staff where appropriate, and f) undertake any procedures that we judge appropriate, but g) are under no obligation to perform procedures that may be required for assurance engagements, such as audits and reviews. h) Should our work indicate that the company is not entitled to the audit exemption, we will inform you of this. i) We will not audit of the financial statements in accordance with International Standards on Auditing (UK), consequently, j) our work will not provide assurance (e.g. audit) that the accounting records or the financial statements are free from material misstatement, whether caused by fraud, other irregularities, or error, and as such, k) as no audit is being undertaken we are unable to provide assurance that the financial statements represent a "true and fair view". l) If an audit is required, for any reason, such audit will to be provided by a separate "registered auditors". m) Any audit fees from such separate auditor, are NOT covered by our fees and would be payable to the auditor separately by you. CORPORATION TAX & HMRC * We will prepare: a) CT600 Corporation Tax Returns, and b) Corporation Tax (CT) calculations, and c) advise you of CT payable and when it is due d) submit the CT600 Corporation Tax return to HMRC with the full accounts. COMPANIES HOUSE * We will: a) file "abbreviated" or "filleted" accounts to Companies House, b) after the accounts have been approved by the director(s), c) File the annual "Confirmation Statement" to Companies House which is a summary of registered office, director(s) and shareholder(s) of the company, d) pay the Confirmation Statement standard submission fee (approx. £33.00 and subject to future increases), and may at our discretion, seek reimbursement of the filing fee from you. Agree and Continue * Yes, agree and continue SCOPE OF PROFESSIONAL RESPONSIBILITY Next, we will outline the scope of our professional responsibility. PROFESSIONAL RESPONSIBILITY * We have a professional responsibility not to allow our name to be associated with financial statements which may be misleading. As no audit of your records is being undertaken, we are not required to search for errors or misleading information, however, 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, additional disclosures that we consider appropriate. If an agreement cannot be reached and we consider that the financial statements are misleading, we will withdraw from the engagement and we will not be liable for any penalties or fines for late submission of any documents or payment of tax. We will use reasonable skill and care in the preparation of your financial statements but we will not be responsible for errors arising from incorrect information supplied by you. We have a professional duty to compile financial statements, which conform to generally accepted accounting principles. Furthermore, the financial statements of a limited company are required to comply with the Companies Act 2006 and applicable accounting standards. Where we identify that the financial statements do not materially 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 RECORDS * We will take reasonable steps to advise you as to the adequacy of your records for preparation of the annual financial statements and make recommendations for improvements, which we consider necessary. We will not be responsible if you do not take our advice, you incur losses or penalties. We may request you to provide written confirmation of any information or explanations given to us orally during the course of our work. Agree and Continue * Agree and continue EXCLUDED SERVICES & LIMITATION OF LIABILITY Next, Exclusions and service limitations SPECIFIC EXCLUSIONS * We will NOT be responsible or liable for any of the following issues outside the process of preparing financial statements, including: i) advice about business insurance, ii) data, privacy, or other regulatory compliance of the company, (e.g. registration with the Information Commissioner Office), iii) VAT issues for the company, as these are subject to a separate engagement agreement, iv) operation of IR35 and "off-payroll" working regulations, v) HMRC formal "Tax Enquiries" are outside the scope of this agreement, vi) any other tax issues other than the corporation tax due on the profits based on the director approved accounts. These ALL remain the responsibility of the director(s) to consider, seek advice on or act on as the directors see fit. Agree and Continue * Yes, agree and continue FEES About our fees for year end accounts services. Fees We reserve the right to charge separate fees for year end accounts work. Bookkeeping, VAT and Payroll services, which each have their own engagement agreements, are charged separately. Agree and Continue * Yes, agree and continue FEEDBACK Your feedback, comments and suggestions are always welcome and appreciated. How easy did you find this agreement to deal with? * star star_full 1 Star star star_full 2 Stars star star_full 3 Stars star star_full 4 Stars star star_full 5 Stars Your comments of feedback (if any) CONFIRM AND SIGN Next, your confirmation of your understanding and agreement to our terms of service. Please check the following and select each one to signal your agreement to the following: * I agree to check all documents I am asked to approve or sign dilegently for any errors or omissions. I agree to promptly answer any questions or requests for information or action needed of me. Accounts - I, as director, agree and confirm that I understand, and agree to, the terms of this engagement. GDPR (Data and Privacy Regulations): I agree to submitting and maintaining this information or documentation with T4 Tax Limited via this website. T4 use MailChimp.com if we need to send emails globally to all clients, or groups of clients. I consent to this submission automatically adding or updating my email address in T4's MailChimp.com account. (We or you can remove it later if you cease to be a client, for example). Signature * Clear Signature, the date will automatically be set by the date this agreement is completed. If you are human, leave this field blank. Submit T4 Tax LimitedChartered Tax Advisers & Independent Certified Practising Accountants
