CLOUD ACCOUNTING

Online accountancy has never been easier with the many cloud accounting packages now available.

My particular recommendations are Xero, QuickBooks Online, Kashflow and FreeAgent. Although I’ll happily work with others.

So there is no need to get locked in to your accountant’s software – choose your own, and simply add your accountant as a user!

ONLINE ACCOUNTANCY

A simple and flexible Online Accountancy service.

How it Works

You send me your receipts /invoices /statements and any other financial records that you have (by post or email), and I prepare your accounts and email these back to you with queries/for approval. Your tax bill is minimised, calculated and explained to you, your tax return emailed to you for approval, then filed online.

Why it's so good

This is a faster and more efficient way of providing the same services you would expect from a high street firm of accountants. Additionally, relationships tend to be more personal, as regular emails to and from my eClients throughout the year are an easy way to stay in touch and provide advice on request. This service is popular with clients who themselves use the internet extensively, as well as clients around the UK who find my fees rather less than their local accountants.

Online Accountancy is ideal for...

Online accountancy is ideal for home based workers, consultants/professionals, and trades people.

Email me to discuss having your accounts put together online: tessa@finchaccountancy.co.uk

ACCOUNTANCY Services

My Philosophy: Making life easier for you

I believe in matching the accountant to the business. So a business owner who makes the decisions and works in the business needs direct access to an accountant who does the same. I deal personally and promptly with all my clients – and with 25 years of experience and access to the highest level of tax expertise you can be confident of a first class service.

Please contact me for a free consultation.

Services Include:

Annual Accounts

Tax Returns

VAT Returns

Starting a New Business

Company Secretarial Services

Financial Consultancy

Fees

What will it cost me ?

Annual Accounts, VAT & Tax Returns

Sole Traders from £250
Partnerships or 1 employee from £350
Limited Companies from £450
Tax Returns £100
Quarterly VAT returns from £35

Additional Services

Including Consultancy, Business Plans & Cash Flow Forecast - £50 per hour.

To know what it would cost you per month please contact me

Bookkeeping & Payroll Services

Please contact me for recommended business contacts

BOOKKEEPING Tips

Follow these tips and you will reduce the time I spend doing your books and so save yourself money.

1. Make sure you get a receipt/invoice for every business payment that you make

2. Record all of your takings and if you take money out before your count up (e.g. from the till to make a payment), be sure to include this amount in your takings as well

3. Clearly record any non-sales income, in particular your own money that you bring into the business

4. Write up your chequebook stubs fully: payee, item purchased, supplier invoice number

5. Don’t use your business money to make private payments, but draw out round lump sums e.g. a few hundred pounds once per month. These are your drawings, and use your private bank account to make private payments

6. Keep and file everything i.e. bank statements, sales invoices, till rolls, purchase invoices/receipts (file these in payment date order)

7. Use separate files for items
(a) Paid by cheque/switch, DD
(b) Paid by cash
(c) Paid from private money

8. The best filing system is lever arch files, cardboard dividers and punched "poly" pockets

9. Keep a cashbook: For bank payments - record the date, cheque number, the total amount in a "total" column, (VAT if applicable in a "vat" column), and the (net of vat, if applicable) amount under a relevant "expense" column. For receipts (i.e. money into the business) show the total banked, and where it came from

10. Add up the entries in the cash book columns, then check your additions by ensuring the totals of the individual "expense" columns = the total of the "total" column.

Client Comments

Online accountancy has never been easier with the many cloud accounting packages now available.

"We are very lucky to have found this super efficient accountant. Our only regret is that we didn’t find her sooner, her services are extremely competitive, a very fast service, and also she has a good sense of humour. We cannot recommend her services highly enough."
William & Mary Jones

"We would like to make some comments about Finch Accountancy on behalf of Caple Ltd. We are a small limited company and as such highly value Tessa’s input into our business accounts, allowing us to concentrate on our day to day work. It is ideal to correspond by e-mail and she provides a thorough, fast and friendly service, and she is also extremely patient when we fall foul of her requests. We highly value her extremely competitive services and only wish we had found her sooner."
Caple Ltd
www.caple-ltd.co.uk

"I really appreciate Tessa's work - she is knowledgeable, highly efficient and extremely nice into the bargain. She will walk you through the minefield of setting up and running your company's finances, and appears to have endless patience - every small business needs an accountant like Tessa! "
Sally Clifford

"Tessa is a rare welsh gem. I am particularly glad to have found an accountant who is effective and friendly, what's more Tessa's services are a bargain! I hope to continue to work with Tessa a long way into the future."
Woody Hayday
Stormgate Ltd.
www.stormgate.co.uk

"No frills, just fast, friendly and efficient: an excellent service at a very competitive price."
Esther Jennings
Trosolwg Systems & Software
www.trosolwg.co.uk

"Tessa, Thank you once again for your prompt service regarding my yearly accounts. I am more than satisfied with the outcome and of course the very reasonable fees. Over the few years that you have been doing my accounts you have saved me a vast amount and that is in fees alone. Good luck in the future, from a Very Happy Plumber"
Eric Mackie

"Tessa was so helpful right from the start, she even got me a rebate of last years tax !!. I would not hesitate to recommend Finch Accountancy and have already informed all my friends of Tessa's excellent service"
Brian Hancock
Harmony Health and Defence.
www.harmonyhealthanddefence.co.uk

"Tessa has been doing my accounts for three years, now. Having never been in business before, financial management was my weakness. However, I can hand over a carrier bag stuffed with receipts, and receive them back neatly filed, with a set of accounts that even I can understand."
Gregory Doherty
The Miniman
www.theminiman.co.uk

"We use Finch Accountancy for all of our bookkeeping & accountancy. Previously we had employed a bookkeeper, and the services of a consultant and accountant – which had cost us a lot more. Tessa is efficient and represents good value for money."
Wyn Brown
Crosshands Hydraulic Services

"Fast, friendly and efficient. Tessa has taken the nightmare out of my numbers and let me get on with making jewellery. Phew!"
Annie Wealleans
Black Dragon Crafts
www.cwlwmceltic.co.uk | www.blackdragon.co.uk

"As a very small business, and someone who is terrified of figures, I decided I needed an accountant for help with my tax return. Initially I was struck by Finch Accountancy’s approachable, yet professional website. I wasn’t disappointed on meeting Tessa, a truly friendly, relaxed and efficient accountant; she has guided me through the book-keeping process and taken away the stress of filling out my tax return. I also know I am as valued as her much larger clients, therefore, for all the above reasons I would readily recommend the services of Finch Accountancy."
Deborah Penprase

"Switching to Tessa Finch was one of the best business decisions I have ever made. The savings I have made amount to several hundred pounds a year – an increase in my income without increasing my overheads. The service she provides is second to none, I cannot recommend her services highly enough"
Bob Hinton

Get in touch

Thanks for looking. I’d love to hear from you.

Contact Information

Finch Accountancy Ltd
20 Bridge Street, Kidwelly Carmarthenshire. SA17 4UU

Phone: 01554 890247

Drop Me a Line

I will get back to you asap. Fields marked with * are required.


Terms & Conditions
Last rev 19/09/2007

In accordance with the recommendations of my professional body, the Association of Accounting Technicians, the following confirms the basis on which I provide services to my clients so as to avoid any misunderstandings of our respective responsibilities.

Nature of services – see at end for detailed explanation of these services
A. ANNUAL ACCOUNTS – SOLE TRADERS/PARTNERSHIPS
B. ANNUAL ACCOUNTS – LIMITED COMPANIES
C. PERSONAL TAX – INDIVIDUALS/SOLE TRADERS/PARTNERS
D. PARTNERSHIP TAX
E. CORPORATION TAX
F. PAYROLL PREPARATION, P.A.Y.E. AND N.I. RETURNS
G. VAT RETURNS
H. MANAGEMENT ACCOUNTS
I. MAINTAINING ACCOUNTING RECORDS

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 2003 (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 I fail to perform these duties, I risk imprisonment.

Before I accept your instructions, I may need to obtain ‘satisfactory evidence’ to confirm your identity. In certain circumstances, I 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. I may also need to obtain such evidence after I have begun to act on your instructions.

I assume that my clients are honest and law abiding. However, if at any time, there appear to be grounds to suspect (even if I do not actually suspect) that your instructions relate to ‘criminal property’, I aM obliged to make a report to the National Criminal Intelligence Service (“NCIS”), but I am prohibited from telling you that I have done so.

In such circumstances, I must not act on your instructions without consent from NCIS. If NCIS do not refuse consent within 7 working days I may continue to act. If NCIS issue a refusal within that time, I 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, I must still make a report.

Activity is considered ‘criminal’ if it is a crime under UK law, no matter how trivial, and whether carried out in the UK or abroad. For example, tax evasion is a criminal offence but an honest mistake is not.

Fees
My fees are as detailed on the separate page, and are agreed with clients on an individual basis, taking into account the services they require. Standard payment terms are 14 days.

Ownership of records
In the event of non-payment of my fees for services rendered, I may exercise a particular right of lien over the books and records in my possession and withhold the documents until such time as payment of my invoice is received in full.File destruction

Whilst certain documents may legally belong to you, unless you tell me not to, I intend to destroy correspondence and other papers that I store which are more than seven years old, other than documents which I think may be of continuing significance. If you require the retention of any document, you must notify me of that fact in writing.

Ethical guidelines
I will observe the ethical guidelines of the Association of Accounting Technicians and accept instructions to act for you on the basis that I will act in accordance with those guidelines. A copy of these guidelines will be supplied to you on request.

Customer service
I am committed to providing a high standard of customer service. If you have any ideas as to how my service to you could be improved, or if you are dissatisfied with the service you are receiving, please let me know. In the event that you have a complaint, I will look into this carefully and promptly and do all I can to explain the position to you or address your concerns. If you are still not satisfied you may of course make a complaint to the Association of Accounting Technicians.

Third parties
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 my prior consent.

No third party shall acquire any rights pursuant to my agreement to provide professional services.

Applicable law
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.

Disclaimer
I will not be liable for any loss suffered by you or any third party as a result of my compliance with the Anti Money Laundering Legislation or any UK law or at all.

Agreement of terms
Terms will be deemed to be agreed on commencent of engagement. Either party may vary or terminate my authority to act on your behalf at any time without penalty. Notice of termination must be given in writing.

A. ANNUAL ACCOUNTS – SOLE TRADERS/PARTNERSHIPS
Your responsibility for the preparation of accounts.

1. You will make available to me, 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 me of all relevant information. The accounts need to be approved by you before I am able to issue my report.

2. 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.

3. 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.

My responsibilities for the preparation of accounts
1. I will compile your annual accounts based on the accounting records and the information and explanations given to me by you. I shall prepare draft annual accounts for your approval.

2. I will advise you as to the adequacy of your records for preparation of the annual accounts and make recommendations for improvements which I consider necessary. I shall not be responsible if, as a result of you not taking my advice, you incur losses or penalties.

3. I 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.

4. I will report, with any variations that I consider may be necessary, that in accordance with your instructions and in order to assist you to fulfil your responsibilities, I have compiled, without carrying out an audit, the accounts from your accounting records and from the information and explanations supplied to me.

5. I have a professional duty to compile accounts which conform with generally accepted accounting principles. Where I 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 my report, if it is not clear in the accounts.

B. ANNUAL ACCOUNTS – LIMITED COMPANIES
Responsibilities of Directors

As directors of a company, under s221 of the Companies Act 1985 you are responsible for ensuring that the company maintains proper accounting records and for preparing accounts set out in s249A of the Act, and for determining whether, in respect of the period, the exemption is not available for any of the reasons set out in section 249B.

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 10 months of the year end. The company will be liable to a fine if it fails to do so. In order to avoid this I will produce statutory accounts, suitable for filing, within the required period, provided all your records are complete and presented to me within five months of the year end, and all subsequent queries are promptly and satisfactorily answered.

You may require me to act as your agent and to:

(a) submit the accounts to the Registrar of Companies;
(b) complete and submit the company’s annual return;
(c) 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
(d) maintain the statutory books.

Responsibility of the accountants
In relation to the accounts, I will prepare the company’s accounts on the basis of the information that is provided to me. I will also draft the accounts in accordance with the provisions of the Companies Act, and related Accounting Standards for approval by the Board.

Should my work lead me to conclude that the company is not entitled to exemption from an audit of the accounts, or should I be unable to reach a conclusion on this matter, then I will advise you of this.

Where instructed to prepare your financial statements, I can carry out the following accounting and other services: (a) write up the accounting records of the company insofar as they are incomplete when presented to me;

(b) complete the postings to the nominal ledger; and

(c) prepare the accounts for approval by yourselves.

Otherwise, you may agree that you or your staff will:

(a) keep the records of receipts and balances;
(b) reconcile the balances monthly with the bank statements;
(c) post and balance the purchase and sales ledgers;
(d) extract a detailed list of ledger balances; and
(e) prepare details of the annual stocktaking, suitably priced and extended in a form which will enable me to verify the prices readily by reference to suppliers’ invoices.

Or
(f) provide me with a copy of the valuation produced by your independent stocktakers.

And

(g) prepare details of work-in-progress at the accounting date and make available to me the documents and other information from which the statement is compiled.

You/your management are responsible for the detection of irregularities and fraud.

I would emphasise that I cannot undertake to discover any shortcomings in your systems or any irregularities on the part of your employees or others, although I will advise you of any such circumstances that I encounter in preparing your accounts, unless prohibited from doing so by the Anti Money Laundering Legislation.

I will report, with any variations that I consider may be necessary, that in accordance with your instructions and in order to assist you to fulfil your responsibilities, I have compiled, without carrying out an audit, the accounts from your accounting records and from the information and explanations supplied to me.

I have a professional duty to compile accounts which conform with generally accepted accounting principles. Furthermore, the accounts of a limited company are required to comply with the Companies Act 1985 and applicable accounting standards. Where I 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 my report, if it is not clear in the accounts.

C. PERSONAL TAX – INDIVIDUALS AND SOLE TRADERS
Spouses are legally responsible for their own tax affairs and should be dealt with independently. However, if both spouses wish I can disclose to your spouse such details of your financial affairs as are required to consider your combined tax position.

(a) I shall be pleased to act as your personal tax advisers in the UK.

(b) I will prepare your personal income tax and capital gains tax return together with all supporting schedules and prepare/check the Inland Revenue’s calculation of your self-assessment of tax and Class 4 National Insurance contributions.

(c) I will forward to you your tax return form and supporting schedules for your approval and signature. Once the approval signed by you is returned to me, I will submit it with the computations to the Inland Revenue. You authorise me to file the return electronically under the Inland Revenue Electronic Lodgement Service.

(d) I 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 I will initiate repayment claims when tax and national insurance contributions appears to have been overpaid.

(e) I will deal with the Inland Revenue regarding any amendments required to your return and prepare any amended returns which may be required.

(f) I will advise as to claims and elections arising from the tax return and from information supplied by you and, where instructed by you, I will make such claims and elections in the form and manner required by the Inland Revenue.

(g) You may ask me to undertake all correspondence with the Inland Revenue on your behalf. To avoid any problems would you please send to us any forms or correspondence received from the Inland Revenue as soon as you receive them. In particular would you please ensure that no payments are made to the Inland Revenue without our confirmation that the demands are correct.

(h) The Inland Revenue 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.

(i) It is therefore important that all details required for the preparation of your tax return are forwarded to me as soon as possible after 5th April each year and by 30th September at the latest. If the information is received after that date, I will not accept responsibility for any penalties or surcharges charged by the Inland Revenue.

(j) The Inland Revenue 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. I will keep you fully informed before undertaking any extra work in respect of such an audit.

(k) I will provide my professional services outlined in this letter with reasonable care and skill. However, I 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 me or the tax authorities.

(l) You agree that I can approach such third parties as may be appropriate for information that I consider necessary to deal with your affairs.

(m) I will submit a form 64-8 to the Inland Revenue, which authorises the Inland Revenue to send me copies of formal notices. In practice, the Inland Revenue will treat this as authority to correspond with me, 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 Inland Revenue correspondence, and even where it does, the Inland Revenue sometimes overlook it. You should therefore always send mr the originals or copies of all communications you receive from the Inland Revenue.

D. PARTNERSHIP TAX
(a) I 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.

(b) I 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.

(c) I will forward to you your tax return form and supporting schedules for your approval and signature. Once the approval signed by you is returned to me, I will submit it with the computations to the Inland Revenue. You authorise me to file the return electronically under the Inland Revenue Electronic Lodgement Service.

(d) I will deal with the Inland Revenue regarding any amendments required should the partnership self-assessment tax return be challenged.

(e) I will advise as to claims and elections arising from the tax return and from information supplied by you and, where instructed by you, I will make such claims and elections in the form and manner required by the Inland Revenue.

(f) I will deal with all communications relating to the partnership return addressed to us by the Inland Revenue or passed to me by you. However, if the Inland Revenue choose the partnership tax return for enquiry, this work will be the subject of a separate assignment and I will seek further instructions from you. Assistance in respect of such an enquiry beyond the answering of straightforward queries regarding entries on the tax return is additional work and will result in separate charges. I will keep you fully informed before undertaking any extra work in respect of such an enquiry.

(g) If you have asked me to undertake all correspondence with the Inland Revenue on the partnership’s behalf, please send to me any forms or correspondence received from the Inland Revenue as soon as you receive them.

(h) The Inland Revenue 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. For partnership penalties, the amount due is multiplied by the number of partners. Delays in submitting the partnership return may also have an effect on the returns of all the partners, with the possibility of penalties, interest and surcharges being payable by each individual partner.

(i) It is therefore important that all details required for the preparation of your tax return are forwarded to me as soon as possible after 5th April each year and by 30 September at the latest. If the information is received after that date, I will not accept responsibility for any penalties or surcharges charged by the Inland Revenue.

(j) You agree that I can approach such third parties as may be appropriate for information that I consider necessary to deal with your affairs and undertake to authorise such third parties to communicate directly with us.

(k) I will submit a form 64-8 to the Inland Revenue, which authorises the Inland Revenue to send me copies of formal notices. In practice, the Inland Revenue will treat this as authority to correspond with me, 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 Inland Revenue correspondence, and even where it does, the Inland Revenue sometimes overlook it. You should therefore always send me the originals or copies of all communications you receive from the Inland Revenue.

E. CORPORATION TAX
I 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. I 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 their 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 I 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, I accept no responsibility for any penalty or interest that may arise.

I 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 me immediately if the company pays or receives any interest or makes any other payment, or transfers any asset to any shareholder.

Where necessary I 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 me to carry out my work you agree:

(a) 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. I will rely on the information and documents being true, correct and complete;

(b) to respond quickly and fully to my requests for information and to other communications from me;

(c) to provide me 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, I need to receive all relevant information by 6 months after the end of the company’s accounting year end.

(d) to forward to me on receipt copies of all statements of account, letters and other communications received from the Inland Revenue to enable me to deal with them as may be necessary within the statutory time limits.

You agree that I can approach such third parties as may be appropriate for information that I consider necessary to deal with your affairs and undertake to authorise such third parties to communicate directly with me.

I will submit a form 64-8 to the Inland Revenue, which authorises the Inland Revenue to send me copies of formal notices. In practice, the Inland Revenue will treat this as authority to correspond with me, 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 Inland Revenue correspondence, and even where it does, the Inland Revenue sometimes overlook it. You should therefore always send me the originals or copies of all communications you receive from the Inland Revenue.

F. PAYROLL PREPARATION, P.A.Y.E. AND N.I.
Payroll and year end returns

In order for me to prepare your payroll and year end returns I will require the following information from you: (a) Personal details of all employees (i.e., name, NI number, home address, etc.).

(b) All P45s received by you.
(c) If any casual labour is taken on, you are required to operate P46 procedures.
Completed P46 forms should be passed to us for processing.
(d) Notification within two weeks of any employee who is ill for four or more calendar days, including weekends, bank holidays etc. This will enable me to operate statutory sick pay for you.
(e) Notification of any employee who becomes pregnant. This will enable me to operate statutory maternity pay.
(f) Details of any money or benefits made available to employees by you or by a third party through you.
(g) Hours worked, rates of pay, bonuses etc.
(h) Notification of employees engaged by you or leaving your employment.
(i) Any notice of coding received by you.

The end of year payroll returns must be received by the Inland Revenue by 19th May following the end of the tax year otherwise penalties will be levied. There may also be interest payable if the final tax and National Insurance payment, due by 19th April following the end of the tax year, is late. I cannot guarantee to have the returns etc. completed in time to meet this deadline unless I have all the relevant information within 10 working days of the end of the tax year.

I will assist in the preparation and submission of PAYE returns as required by the authorities concerned. However, it should be understood that my appointment as your agent does not absolve the company or its directors from their statutory responsibilities.

I 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 I receive full information from you promptly to enable me 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.

P11D benefits for directors*/officers* and higher paid employees*

If you have asked me to prepare forms P11D for your approval, I will require details of all benefits, perks or reimbursed expenses received by the directors*/officers*/higher paid employees.* (Note. A higher paid employee is someone who received (at the current level) at least £8,500 pa including the taxable value of benefits, perks and reimbursed expenses.)

There are penalties for the late submission of forms P11D. In order to avoid these, you must ensure that I receive complete and accurate details of all benefits and expenses for the tax year (NB: not accounts year) within 14 days of the end of the tax year.

Subcontractors

You may wish me to be responsible for operating the Construction Industry Scheme for the subcontractors you engage. In order for me to do this, I will require the following information from you:

(a) written confirmation that you have inspected the registration card (CIS 4) or tax certificate (CIS 5 or 6) for each subcontractor; and

(b) details of any own materials used.

As detailed above, I have agreed to operate your payroll/P11D/subcontractors’* system. I can also offer you advice in the following related areas:

year end returns P14/P60 and P35;*
casual labour P46;*
subcontractors;*
benefits for employees and directors.*

G. VAT RETURNS
You may require me to undertake the completion of your VAT returns. I cannot be held responsible for any penalties or default surcharges arising from the late submission of VAT returns. However, I will endeavour to meet the relevant deadlines if I 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:

(a) all relevant VAT records are forwarded to me within 14 days of the end of the VAT return period;

(b) valid VAT invoices are received for all payments where VAT is being reclaimed;

(c) the VAT rating of supplies is correctly dealt with, i.e. between positive and zero rates and exempt supplies;

(d) I am notified in writing of any positive-rated own consumption;

(e) any input VAT on non-business expenditure is clearly marked on supporting invoices;

(f) I am 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;

(g) all supplies made by the business are shown in the records made available to me.

Otherwise,

You/your staff will be responsible for completing and submitting VAT returns. I will not be responsible for checking the VAT treatment of supplies made, i.e. between positive and zero rates, and exempt supplies unless specifically requested in writing to make a detailed review. I will, however, ensure that the sales figure in your accounts is reconciled to your VAT returns submitted, provided you:

(a) let me have copies of all returns submitted; or,

(b) complete my VAT return form which I will forward to you on request.

Similarly, I will not specifically check the deductibility of input VAT and the validity of supporting invoices unless specifically requested in writing to carry out a detailed review.

Or

At the time of this letter you are not VAT registered. If registration becomes necessary, I will endeavour to ensure that you register in time provided that:

(a) you notify me in writing within 14 days of the end of each month of the total value of supplies you have made in that month; and
(b) you notify me immediately in writing if the value of taxable supplies that you will make in the next 30 days is likely to exceed the annual registration limit then in force.

It should be understood that my appointment as your agent does not absolve the company or its directors from their statutory responsibilities. I 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 I receive full information from you promptly to enable me 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

H. MANAGEMENT ACCOUNTS
This involves me in completing the writing up of your books and records, insofar as they are incomplete when presented to me, from the information and explanations supplied to me and preparing draft accounts therefrom for your approval.

I understand that you have agreed that your staff will be responsible for:-

(a) maintaining records of all receipts and payments of cash;
(b) reconciling cash book balances monthly/quarterly* with the bank statements;
(c) posting and balancing the purchase and sales ledgers; and
(d) extracting a detailed list of ledger balances.

You will also provide estimates of any stocks at the end of each period.

You understand that I 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 I are not authorised to carry out.

I 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 I will advise you of any such circumstances that I 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 I have not carried out an audit, i will annex to the accounts a short report. This report must remain attached to any accounts shown to any other parties.

These accounts are not suitable for submission within the self-assessment tax return, or for summary thereon.

I. MAINTAINING ACCOUNTING RECORDS
You may require me to carry out some or all of the following accounting and other services:

(a) keep the records of receipts, payments and balances;
(b) reconcile the balances monthly with the bank statements;
(c) post and balance the purchase and sales ledgers;
(d) extract a detailed list of ledger balances;
(e) 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;
(f) complete the postings to the nominal ledger; and
(g) prepare the accounts for approval by yourselves.

You/your management are responsible for the detection of irregularities and fraud. I would emphasise that I cannot undertake to discover any shortcomings in your systems or any irregularities on the part of your employees or others, although I will advise you of any such circumstances that I encounter.