Engagement Letter

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1. Period of Engagement

This agreement begins on the date it is signed and covers all relevant matters from prior periods where necessary.

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2. Our Responsibilities

Annual Accounts

• We will prepare your annual accounts based on the records and information you provide.

• These accounts will form the basis of your annual Self Assessment tax return, which we will prepare and submit once approved by you.

• Please note: this is not an audit. We don’t verify the information you provide but we compile your accounts in line with standard accounting principles.

Company Directors’ Responsibilities

If you’re a company director, it’s your legal duty to:

• Keep accurate records of all transactions.

• Ensure statutory deadlines (e.g. filing with Companies House within 9 months of year-end) are met.

• Provide records to us within 5 months of the year-end so we can prepare compliant statutory accounts on time.

We will:

• File your company’s accounts and annual return with Companies House.

• Submit any other required forms, provided you notify us of relevant changes within 7 days.

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3. Tax Returns & Corporation Tax

We will:

• Prepare and file your personal and/or company tax returns with HMRC.

• Tell you how much tax is due and when to pay it.

• Handle communication with HMRC on your behalf (except in the case of formal enquiries, which will be quoted separately unless covered by insurance).

You agree to:

• Provide accurate, complete financial records and tax information.

• Respond to our queries promptly to avoid penalties or interest.

Corporation tax returns will be prepared and submitted to HMRC following your approval. Please note, while we act as your agent, legal responsibility for filing accurate tax returns and paying tax on time remains with you.

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4. VAT Returns

Where engaged to do so, we will:

• Prepare and file your VAT returns, based on the information you provide within 14 days of the VAT quarter end.

You agree to:

• Ensure all VAT records and valid invoices are made available to us on time.

• Notify us of any business-related private fuel usage or VAT reclaims on non-business costs.

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5. Payroll, PAYE & Benefits

To process payroll and year-end returns, we require:

• Complete employee details (including NI numbers).

• All starter/leaver forms (P45s/P46s).

• Notification of absences, parental leave, and any employee benefits provided.

We will:

• Process your payroll and file Real Time Information (RTI) returns with HMRC.

• Prepare P11D/P9D forms for benefits reporting (on-time info needed within 14 days of tax year end).

Note: We rely on your timely communication. Missed deadlines or inaccurate data can result in penalties for which we are not responsible.

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6. Management Accounts

If you engage us to prepare management accounts:

• We rely on your team to maintain accurate records of income, expenses, and stock estimates.

• We do not audit these figures.

• These reports are for your internal use only and should not be shared externally without our consent.

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7. Your Responsibilities

You are legally responsible for:

• Ensuring all returns and payments are accurate and made on time.

• Providing full and accurate information across all taxes, including income, allowances, capital transactions, and benefits.

• Letting us know immediately about any correspondence from HMRC.

You agree to:

• Respond promptly to our information requests.

• Let us speak to relevant third parties (e.g. pension providers or banks) on your behalf if needed.

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8. Fees & Payment

• Our fixed monthly fee is £200 + VAT, payable monthly in arrears. We review our pricing annually.

• Work outside the scope of this letter (e.g. HMRC enquiries) will be charged separately.

• Late payment may result in suspension of services.

Personal Guarantee
If your company cannot pay our fees, the directors agree to be jointly and severally liable for any outstanding balance.