JB ACCOUNT & BOOKKEEPING SERVICES LTD
JB Accounts and Bookkeeping Ltd are a small but experienced team of accountants and bookkeepers based in Alcester, Warwickshire.
If you’re in need of accountancy help, if your bookkeeping leaves a lot to be desired, or if your tax return fills you with dread, then we can help you.
GENERAL TERMS AND CONDITIONS
ANNUAL ACCOUNTS – SOLE TRADERS/PARTNERSHIPS
Your responsibility for the preparation of accounts
- You have undertaken to make available to us, as and when required, all the accounting records and related financial information necessary for the compilation of the accounts. You will make full disclosure to us of all relevant information. The accounts need to be approved by you before we are able to issue our report.
- You are responsible for ensuring that, to the best of your knowledge and belief, financial information, whether used by the business or for the accounts, is reliable. You are also responsible for ensuring that the activities of the business are conducted honestly and that its assets are safeguarded, and for establishing arrangements designed to deter fraudulent or other dishonest conduct and to detect any that occur.
- You are responsible for ensuring that the business complies with the laws and regulations applicable to its activities, and for establishing arrangements designed to prevent any non-compliance with laws and regulations and to detect any that occur.
Our responsibilities for the preparation of accounts
- We will compile your annual accounts based on the accounting records [maintained by you] and the information and explanations given to us by you. We shall prepare draft annual accounts for your approval.
- We will advise you as to the adequacy of your records for preparation of the annual accounts and make recommendations for improvements which we consider necessary. We shall not be responsible if, as a result of you not taking our advice, you incur losses or penalties.
- We will use reasonable skill and care in the preparation of your accounts but will not be responsible for errors arising from incorrect information supplied by you.
- We will report, with any variations that we consider may be necessary, that in accordance with your instructions and in order to assist you to fulfill your responsibilities, we have compiled, without carrying out an audit, the accounts from your accounting records and from the information and explanations supplied to us.
- We have a professional duty to compile accounts which confirm with generally accepted accounting principles. Where we identify that the accounts 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 accounts.
ANNUAL ACCOUNTS – LIMITED COMPANIES
Responsibilities of Directors
As director of the company, under the Companies Acts you are responsible for:
- ensuring that the company maintains proper accounting records and for preparing accounts
- determining whether for any reason the exemption is not available in respect of the period.
You will keep records of sales invoices, purchase invoices, receipts, and payments, together with any other documents relating to the company’s transactions and activities. It will also be necessary for you to provide a record of stock at the company’s year-end. A private company is required to file its accounts at Companies House within 9months of the year-end. The company will be liable to a fine if it fails to do so. In order to avoid this, we will produce statutory accounts, suitable for filing, within the required period, provided all your records are complete and presented to us within five months of the year end, and all subsequent queries are promptly and satisfactorily answered.
We have agreed to act as your agent and to:
- submit the accounts to the Registrar of Companies;
- complete and submit the company’s annual return;
- complete and submit any other forms required by law to be filed at Companies House, provided that you keep us fully informed of any relevant changes or events which are required to be notified to Companies House, within one week of the change or event; and
- maintain the statutory books. Or You have agreed to complete all the returns required by law, for example, the annual return and the notification of changes in directors. We shall, of course, be pleased to advise you on these and any other company secretarial matters if requested.
Responsibility for the Accountants
In relation to the accounts, we will prepare the company’s accounts on the basis of the information that is provided to us. We will also draft the accounts in accordance with the provisions of the Companies Act, and related Accounting Standards for approval by the Board. Should our work lead us to conclude that the 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 advise you of this. You have instructed us to prepare your financial statements for the year(s) ended …………… and subsequent years. It was agreed that we should carry out the following accounting and other services:
- Write up the accounting records of the company insofar as they are incomplete when presented to us;
- complete the postings to the nominal ledger; and
- prepare the accounts for approval by yourselves.
You have agreed that you or your staff will:
- keep the records of receipts and balances;
- reconcile the balances monthly with the bank statements;
- post and balance the purchase and sales ledgers;
- extract a detailed list of ledger balances; and
- prepare details of the annual stocktaking, suitably priced and extended in a form which will enable us to verify the prices readily by reference to suppliers’ invoices. You/your management are responsible for the detection of irregularities and fraud. We would emphasise that we cannot undertake to discover any shortcomings in your systems or any irregularities on the part of your employees or others, although we will advise you of any such circumstances that we encounter in preparing your accounts unless prohibited from doing so by the Anti Money Laundering Legislation. We will report, with any variations that we consider may be necessary, that in accordance with your instructions and in order to assist you to fulfill your responsibilities, we have compiled, without carrying out an audit, the accounts from your accounting records and from the information and explanations supplied to us. We have a professional duty to compile accounts which confirm with generally accepted accounting principles. Furthermore, the accounts of a limited company are required to comply with the Companies Acts and applicable accounting standards. Where we identify that the accounts 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 accounts. PERSONAL TAX – INDIVIDUALS AND
- We will prepare your personal income tax and capital gains tax return together with all supporting schedules and [prepare]/[check HM Revenue & Customs’ calculation of] your self-assessment of tax [and Class 4 National Insurance contributions].
- We will forward to you your tax return form [tax computations] and supporting schedules [in duplicate] [optional] for your approval and signature. Once the return has been approved and signed by you and returned to us, we will submit it [with the computations] to the HM Revenue & Customs. [You authorise us to file the return electronically.]
- We will advise you as to 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[s] to have been overpaid.
- We will deal with HM Revenue & Customs regarding any amendments required to your return and prepare any amended returns which may be required.
- 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 & Customs.
- You have asked us to undertake all correspondence with HM Revenue & Customs on your behalf. To avoid any problems would you please send to us any forms or correspondence received from HM Revenue & Customs as soon as you receive them. In particular would you please ensure that no payments are made to HM Revenue & Customs without our confirmation that the demands are correct.
- HM Revenue & Customs has 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.
- 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 30th June 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 & Customs.
- HM Revenue & Customs audits a number of tax returns each year, many of these audits are the result of a random selection. Assistance in respect of such an audit beyond the answering of straightforward queries regarding entries on the tax return 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 audit.
- 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.
- You agree that we can approach such third parties as may be appropriate for information that we consider necessary to deal with your affairs.
- [Please sign and return the enclosed HM Revenue & Customs form 64-8,*]/[We have submitted form 64-8 to HM Revenue & Customs,*][delete as applicable] which authorises HM Revenue & Customs to send us copies of formal notices. In practice, HM Revenue & Customs will treat this as authority to correspond with us, in which case they will not correspond with you except to the extent that they are formally required to do so. However, this authority does not apply to all HM Revenue & Customs correspondence, and even where it does, HM Revenue & Customs sometimes overlook it. You should therefore always send us the originals or copies of all communications you receive from HM Revenue & Customs.
We will prepare, in respect of each accounting period of the company, a computation for corporation tax purposes adjusted in accordance with the provisions of the Taxes Acts. We will also prepare the corporation tax return (form CT600) required under the Corporation Tax Self-Assessment regulations. The corporation tax return, together with the supporting corporation tax computations, will be sent to you for approval and signature prior to submission to the Inspector of Taxes.
It should be recognised that in law a taxpayer cannot contract out of his fiscal responsibilities and that computations and return forms are prepared by us as agent for the company. You are legally responsible for making correct returns and for payment of tax on time. If we ask you for information to complete the tax return and it is not provided within the time-scale requested, so that the preparation and submission of the return are delayed, we accept no responsibility for any penalty or interest that may arise.
We will advise you of the corporation tax payments to which the company will be liable, together with the due date of payment. You must inform us immediately if the company pays or receives any interest or makes any other payment, or transfers any asset to any shareholder. Where necessary we will deal with any queries raised by the Inspector of Taxes and negotiate with the Revenue on any question of taxation interest or penalties which may arise.
To enable us to carry out our work you agree:
- to make a full disclosure to us of all sources of income, charges, allowances and capital transactions and 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;
- to respond quickly and fully to our requests for information and to other communications from u(c) to provide us with information in sufficient time for the company’s self-assessment tax return to be completed and submitted by the due date. In order to do this, we need to receive all relevant information by [……………………..] each year; and (d) to forward to us on receipt copies of all statements of account, letters and other communications received from HM Revenue & Customs to enable us to deal with them as may be necessary within the statutory time limits. You agree that we can approach such third parties as may be appropriate for information that we consider necessary to deal with your affairs and undertake to authorise such third parties to communicate directly with us. [Please sign and return the enclosed HM Revenue & Customs form 64-8,*]/we have submitted form 64-8 to HM Revenue & Customs,*] which authorises HM Revenue & Customs to send us copies of formal notices. In practice, HM Revenue & Customs will treat this as authority to correspond with us, in which case they will not correspond with you except to the extent that they are formally required to do so. However, this authority does not apply to all HM Revenue & Customs correspondence, and even where it does, HM Revenue & Customs sometimes overlook it. You should therefore always send us the originals or copies of all communications you receive from HM Revenue & Customs.
We have agreed to operate the Construction Industry Scheme for the subcontractors you engage. In order for us to do this, we will require the following information from you on a timely basis:
- written confirmation that you have checked or ‘verified’ each new subcontractor with HM Revenue & Customs; and
- written confirmation stating whether HM Revenue & Customs has advised that the subcontractor should be paid net or gross.
We will advise on employment status to the best of our ability however we cannot give any form of guarantee or assurance that HM Revenue & Customs will not challenge the employment status of one or more of your subcontractors and we cannot be held responsible for any loss or consequential loss as a result of any action or penalty imposed by HM Revenue & Customs.
It is your sole responsibility to establish the employment status of each and every one of your subcontractors. In respect of the employment status of subcontractors, we cannot advise therefore we accept no liability in the event that HM Revenue & Customs challenges the employment status of one or more of your subcontractors. Under the new rules, CIS registration will be lost if returns are made late or tax is paid late. HM Revenue & Customs no longer has discretion regarding whether or not to cancel registration. I/We cannot be held responsible or liable for financial loss or consequential financial loss if your CIS registration is cancelled for late submission where we have not received the necessary information on a timely basis or for any late payment occurring as a result. As detailed above, we have agreed to operate your payroll/P11D/subcontractors’* system. We can also offer you advice in the following related areas:
- Year-end returns P14/P60 and P35;*
- casual labour P46;*
- benefits for employees and directors.*
- (* Delete as appropriate and consider which of the paragraphs are necessary)
You have asked us to undertake the completion of your VAT returns. We cannot be held responsible for any penalties or default surcharges arising from the late submission of VAT returns. However, we will endeavour to meet the relevant deadlines if we receive all the company’s VAT records within 14 days of the end of the VAT return period. You have undertaken that you/your staff will ensure that:
- all relevant VAT records are forwarded to us within 14 days of the end of the VAT return period;
- valid VAT invoices are received for all payments where VAT is being reclaimed;
- the VAT rating of supplies is correctly dealt with, i.e. between positive and zero rates and exempt supplies;
- we are notified in writing of any positive-rated own consumption;
- any input VAT on non-business expenditure is clearly marked on supporting invoices;
- we are notified each quarter of any payments to or for the benefit of directors or staff for fuel used for private mileage, together with the business mileage for each such person, for each quarter;
- all supplies made by the business are shown in the records made available to us.
It should be understood that our appointment as your agent does not absolve the company or its directors from their statutory responsibilities. We would draw your attention to the strict rules and time limits for the submission of such returns and the substantial penalties which may arise if these are not observed. It is therefore essential that we receive full information from you promptly to enable us to ensure that the returns are made on a timely basis. Completed returns will be sent to you for approval and signature prior to submission on the company’s behalf
We understand that you require us to prepare the monthly/quarterly* management accounts of your business/partnership* for the month/quarter* ended ………………………. and subsequent months/quarters*.
This involves us in completing the writing up of your books and records, insofar as they are incomplete when presented to us, from the information and explanations supplied to us and preparing draft accounts therefrom for your approval.
We understand that you have agreed that your staff will be responsible for:-
- maintaining records of all receipts and payments of cash;
- reconciling cash book balances monthly/quarterly* with the bank statements;
- posting and balancing the purchase and sales ledgers; and
- extracting a detailed list of ledger balances.
You will also provide estimates of any stocks at the end of each period. You understand that 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 generally accepted auditing standards which we are not authorised to carry out. We would emphasise that we cannot undertake to discover any shortcomings in your systems or any irregularities on the part of your employees or others, although we will advise you of any such circumstances that we encounter in preparing your accounts. The accounts are prepared for your exclusive use within your business. They should not be shown to any other party without our prior consent. To ensure that anyone reading the accounts is aware that we have not carried out an audit, we will annex to the accounts a short report. This report must remain attached to any accounts shown to any other parties.
Our involvement in the management accounts production process is constrained by the need to process and produce the accounts on your computer system, so preventing the operation of certain of our quality control procedures. The accounts are prepared for your exclusive use within your business and you undertake not to represent to any third party that the accounts have been prepared by us. The accounts are not suitable for submission within the self-assessment tax return, or for summary thereon.
MAINTAINING ACCOUNTING RECORDS (Bookkeeping)
It is agreed that we should carry out the following accounting and other services:
- keep the records of receipts, payments, and balances;
- reconcile the balances monthly with the bank statements;
- post and balance the purchase and sales ledgers;
- extract a detailed list of ledger balances;
- prepare details of the annual stocktaking and work in progress, suitably priced and extended in a form which will enable us to verify the prices readily by reference to suppliers’ invoices;
- complete the postings to the nominal ledger; and
- prepare the accounts for approval by yourselves.
You have agreed that you or your staff will:
(Detail items (a) to (g) above, as appropriate)
You/your management are responsible for the detection of irregularities and fraud. We would emphasise that we cannot undertake to discover any shortcomings in your systems or any irregularities on the part of your employees or others, although we will advise you of any such circumstances that we encounter.
Anti-Money Laundering Legislation
All accountants must comply with onerous duties imposed by the Proceeds of Crime Act 2002, the Terrorism Act 2000 and the Money Laundering Regulations 2007 (the “Anti Money Laundering Legislation”), which are intended to inhibit the activities of terrorists and other criminals by denying them access to technical expertise.
If we fail to perform these duties, we risk imprisonment. Before we accept your instructions, we may need to obtain ‘satisfactory evidence’ to confirm your identity. In certain circumstances, we may need to obtain evidence confirming the identities of third parties, the source of any funds or other property, the purpose of any instructions or any other matter. We may also need to obtain such evidence after we have begun to act on your instructions.
We assume that our clients are honest and law abiding. However, if at any time, there appear to be grounds to suspect (even if we do not actually suspect) that your instructions relate to ‘criminal property’, we are obliged to make a report to the Serious Organised Crime Agency (“SOCA”), but we are prohibited from telling you that we have done so.
In such circumstances, we must not act on your instructions without consent from SOCA. If SOCA does not refuse consent within 7 working days we may continue to act. If SOCA issue a refusal within that time, we must not act for a further 31 days from the date of the refusal.
‘Criminal property’ is property in any legal form, whether money, real property, rights or any benefit derived from criminal activity. It does not matter who carried out the criminal activity or how removed the property is from the original crime. Even if you are honest in your dealings, if your property represents a benefit from someone else’s crime, we must still make a report.
Activity is considered ‘criminal’ if it is a crime under UK law, no matter how trivial For example, tax evasion is a criminal offence but an honest mistake is not. We will assume that all discrepancies are mistakes unless there is contrary evidence.
Client monies: We do not hold monies on a client’s behalf.
Our fees are computed on the basis of time spent on your affairs and the responsibility and skill involved by the staff of this firm. Unless otherwise agreed, our fees will be charged separately for each main class of work mentioned above and will be billed at monthly intervals during the course of the year.
Our terms relating to payment of amounts invoiced and not covered by standing orders, where appropriate, are strictly 14 days net.
In the event that the company is unable to meet its liability in respect of our outstanding fees as and when they fall due then the company’s directors would be personally, jointly and severally liable in respect of our outstanding fees.
Whilst certain documents may legally belong to you unless you tell us not to, we intend to destroy correspondence and other papers that we store which are more than seven years old, other than documents which we think may be of continuing significance. If you require the retention of any document, you must notify us of that fact in writing.
We are committed to providing a high standard of customer service. If you have any ideas as to how our service to you could be improved, or if you are dissatisfied with the service you are receiving, please let us know. In the event that you have a complaint, we will look into this carefully and promptly and do all we can to explain the position to you or address your concerns.
All accounts, statements, and reports prepared by us are for your exclusive use within your business or to meet specific statutory responsibilities. They should not be shown to any other party without our prior consent. No third party shall acquire any rights pursuant to our agreement to provide professional services.
We will not be liable for any loss suffered by you or any third party as a result of our compliance with the Anti Money Laundering Legislation or any UK law or at all.
Agreement of terms
Once agreed, this letter will remain effective from the date of signature for a period of 12 months and shall renew on each anniversary until it is terminated or replaced as below.
This agreement can be terminated by giving three months written notice prior to the anniversary listed above. JB Accounts & Bookkeeping Services Ltd reserves the right to terminate this agreement without notice in the event that your actions render providing further services impossible.
For and Behalf of JB Accounts and Bookkeeping Services Ltd
Clients Company Name………………………………….
Print Name of Signatory…………………………………..
Position of Signatory…………………………………..
Date of Agreement signed by Client……………………………