Authorisation and Registration
Kardans Limited trading as My Accounts Digital is registered with the Institute of Chartered Accountants in England and Wales (ICAEW) as chartered accountants and can be found on the register of members at https://www.icaew.com/about-icaew/find-a-chartered-accountant
Money Laundering Regulations 2017
In accordance with the Proceeds of Crime Act, The Terrorism Act, Money Laundering Regulations 2017 and Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, you agree to waive your right to confidentiality to the extent of any report made, document provided or information disclosed to the National Crime Agency (NCA).
You also acknowledge that we are required to report directly to the NCA without prior reference to you or your representatives if during the course of undertaking any assignment the person undertaking the role of Money Laundering Reporting Officer becomes suspicious of money laundering.
As with other professional services firms, we are required to have appropriate risk based policies and procedures for assessing and managing money laundering risks: this applies at the start of any business relationship and through the lifetime of the relationship. This includes undertaking appropriate customer due diligence. We may request from you, and retain, such information and documentation as we require for these purposes and/or make searches of appropriate databases. If we are not able to obtain satisfactory evidence of your identity, we will not be able to proceed with the engagement.
Copies of such records created as part of the client due diligence process, including any nonengagement documents relating to the client relationship and ongoing monitoring of it, will be retained by us for a period of at least five years after we cease to act for the business unless we are required to retain them under statutory obligation, or to retain them for legal proceedings, or you consented to the retention, in which case the records will be retained for not more than 10 years.
We are required to identify our clients for the purposes of the UK anti-money laundering legislation. We may request from you, and retain, such information and documentation as we require for these purposes and/or make searches of appropriate databases.
Limitation of Liability
We will provide our services with reasonable care and skill. Our liability to you is limited to losses, damages, costs and expenses caused by our negligence or wilful default.
Exclusion of liability for loss caused by others
We will not be liable if such losses, penalties, surcharges, interest or additional tax liabilities are caused by the acts or omissions of any other person or due to the provision to us of incomplete, misleading or false information or if they are caused to a failure to act on our advice or a failure to provide us with relevant information.
In particular, where we refer you to another firm whom you engage with directly, we accept no responsibility in relation to their work and will not be liable for any loss caused by them.
Exclusion of liability in relation to circumstances beyond our control We will not be liable to you for any delay or failure to perform our obligations under this engagement letter if the delay or failure is caused by circumstances outside our reasonable control.
Exclusion of liability relating to non-disclosure or misrepresentation We will not be responsible or liable for any loss, damage or expense incurred or sustained if information material to the service we are providing is withheld or concealed from us or wrongly misrepresented to us.
This exclusion shall not apply where such misrepresentation, withholding or concealment is or should (in carrying out the procedures which we have agreed to perform with reasonable care and skill) have been evident to us without further enquiry beyond that which it would have been reasonable for us to have carried out in the circumstances.
Ownership of Records
In the event of non-payment of our fees for services rendered, we may exercise a particular right of lien over the books and records in our possession and withhold the documents until such time as payment of our invoice is received in full.
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. If we do not hear from you then after a period of 7 years we will securely destroy correspondence and papers that we have stored for you. You have a legal responsibility to retain documents and records relevant to your tax affairs.
Electronic and other communication
Unless you instruct us otherwise we may communicate with you and with third parties via email or by other electronic means. The recipient is responsible for virus checking emails and any attachments. With electronic communication there is a risk of non-receipt, delayed receipt, inadvertent misdirection or interception by third parties. We use virus-scanning software to reduce the risk of viruses and similar damaging items being transmitted through emails or electronic storage devices. However electronic communication is not totally secure and we cannot be held responsible for damage or loss caused by viruses nor for communications which are corrupted or altered after despatch.
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 or relied upon by any other party without our prior consent.
Reliance on advice
We will endeavour to record all advice on important matters in writing. Advice given orally is not intended to be relied upon unless confirmed in writing. Therefore, if we provide oral advice (for example during the course of a telephone conversation) and you wish to be able to rely on that advice, you must ask for the advice to be confirmed by us in writing.
TERMS OF SERVICE – WHERE APPLICABLE TO YOUR SCHEDULE OF SERVICES
This schedule should be read in conjunction with the engagement letter and the schedule of services in your engagement and the above standard terms and conditions.
STATUTORY YEAR END ACCOUNTS
Within our service to produce Statutory Year End Accounts the following is a brief overview of what the service includes.
- Statutory Compliance
- Preparation, discussion and submission of Annual Statutory Company Accounts.
- Corporation Tax Returns for the Company
- Preparation of Annual Self Assessment Tax returns for Directors
- Provision of on-going business advice regarding VAT, bookkeeping, taxation and finance process issues.
- Provision of ad-hoc financial and business advice via telephone as required throughout the year
- We will compile your annual accounts based on the accounting records and the information and explanations given to us by you.
- 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 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 fulfil 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 conform 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.
In order for us to prepare your payroll and year end returns we will require the following information from you:
- Personal details of all employees (i.e. name, NI number, home address, and the data required by HMRC to file payroll returns online which is known as Real Time Information (RTI)).
- All P45s, or equivalent, received by you.
- If any casual labour is taken on, you are required to operate P46, or equivalent, procedures.
- Notification within two weeks of any employee who is ill for four or more calendar days, including weekends, bank holidays etc. This will enable us to operate statutory sick pay for you.
- Notification of any employee who adopts, becomes pregnant or whose partner adopts or becomes pregnant. This will enable us to operate statutory adoption, maternity and paternity pay.
- Details of any money or benefits made available to employees by you or by a third party through you.
- Hours worked, rates of pay, bonuses, the amount of any pension deductions (Automatic Enrolment) etc.
- Notification of employees engaged by you or leaving your employment.
- Any notice of coding received by you.
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 , employees’ National Insurance Contributions (NIC) deductions & employer’s NIC liabilities
- Calculating statutory payments, for example, Statutory Sick Pay and/or Statutory Maternity Pay
- Calculating other statutory and non statutory deductions
- Submitting information online to HMRC under RTI for PAYE
- 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 HMRC:
- Payroll summary report showing the reconciliation from gross to net for each employee and all relevant payroll totals
- The data included within each] Full Payment Submission (FPS) for taxable pay and payrolled benefits for each employee
- A payslip for each employee unless not required
- A P45 for each leaver
- A report showing your PAYE and NIC liability and due date for payment
- We will submit FPSs online to HMRC after the data to be included therein has been approved by you. (FPSs must reach HMRC normally on or before payday.)
- We will submit EPSs to HMRC after the data to be included therein has been approved by you. (EPSs must reach HMRC by the 19th of the month following the tax month to which they relate.)
At the end of the payroll year we will:
- Prepare the final FPS (or EPS) including employer annual declarations and submit this to HMRC after the data to be included therein has been approved by you. (The final FPS (or EPS) for the year must reach HMRC by 19 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.
We will deal with any online secure messages sent to us by HMRC in respect of your payroll; and
In respect of pensions and automatic enrolment you will need to seek the advice of a person who is regulated to provide pension’s advice. We will assist you in processing your payroll based on the pension deductions that you provide.
If we are 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.
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. 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.
Not all clients will require us to assist with their VAT returns; it may be for instance that they are not VAT registered or that they only require us to provide VAT Review or associated book-keeping towards this.
Recurring compliance work
- We will prepare your monthly/quarterly/annual VAT returns on the basis of the information and explanations supplied by you.
- Based on the information that you provide to us 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.
- Where appropriate we will calculate the partial exemption annual adjustment.
- Where appropriate we will calculate the annual Capital Goods Scheme adjustment.
- 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 HMRC.
- 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;
- 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.
- Ensuring that your returns are correct and complete;
- Filing any returns by the due date; and
- Making payment of tax on time. Failure to do this may lead to automatic penalties, surcharges and/or interest.
- 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 mis-declaration on which penalties and interest may arise
We cannot be held responsible for any penalties or default surcharges arising from the late submission of VAT returns, or the late registration of a business or individual for VAT. Ensuring that your business is registered for VAT when the compulsory registration threshold is met is your responsibility – we can assist you with the registration if you ask us to do so. We cannot be held liable for any VAT due on sales or any financial loss where the VAT registration threshold has been passed and the VAT registration must therefore be backdated. We will endeavour to meet the relevant deadlines for the submission of the VAT return 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 you will keep us informed of material changes in circumstances that could affect your VAT obligations. If you are unsure whether the change is material or not please let us know so that we can assess its significance.
CORPORATION TAX (if applicable)
If you have instructed us to do so we will prepare, in respect of each accounting period of the company, a computation for corporation tax purposes and a corporation tax return (form CT600). 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.
To enable us to carry out our work you agree:
- 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;
- Respond quickly and fully to our requests for information and to other communications from us;
- Provide us with information in sufficient time for the company’s self-assessment tax return to be completed and submitted by the due date; and
- Forward to us on receipt copies of all statements of account, letters and other communications received from HMRC to enable us to deal with them as may be necessary within the statutory time limits.
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.
PARTNERSHIP TAX (if applicable)
- We 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.
- We 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.
- Once the return has been approved and signed by you and returned to us, we will submit it, with the accounts and computations, to HMRC. You authorise us to file the return electronically under HMRC Electronic Lodgement Service.
- We will advise all the partners who were partners of the firm during the period of their respective shares of the firm’s total income, gains, losses, tax credits and charges in order that they are able to file their personal self-assessment tax returns within the relevant time period.
PERSONAL TAX – INDIVIDUALS AND SOLE TRADERS (if applicable)
The personal tax return service will include:
- Preparation of your personal income tax and capital gains tax return together with all supporting schedules and prepare your self-assessment of tax and Class 2 and Class 4 National Insurance contributions.
- We will forward to you your tax return form and supporting schedules for your approval and signature.
- Once the return has been approved and signed by you and returned to us, we will submit it to HMRC.
- We will advise you as to 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.
- 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 HMRC.
- You have asked us to undertake all correspondence with HMRC on your behalf.
- All details required for the preparation of your tax return should be forwarded to us as soon as possible after 5th April each year. If the information is late we will not accept responsibility for any penalties or surcharges charged by HMRC.
- We reserve the right to charge and additional fee for returns that are filed after 31st October each year.
- 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.
PROVISION OF INFORMATION
In Order for us to process your work as efficiently as possible and reduce the number of queries we have for you the documents should be supplied in a good quality and order, common issues to avoid:
If you use the Freepost envelopes:
- No credit card receipts
- No duplicates
- No staples
- No plastic document wallets
PAYMENT OF FEES
Our fees are charged on a fixed fee basis as stated in the package that you have chosen and may be subject to an annual rise. Direct debit payments are typically taken on the first day of the month, for the month in advance.
Your subscription payments cover you for the current months work and any statutory requirements that come to pass whilst you are using your subscription. If more than one months accounting is required to be undertaken at a time sufficient monthly payments will have to be made to cover the work to be undertaken.
No monthly payments will be refunded to you at any time, regardless of whether you have used the service or not. Either party has the right to terminate the agreement immediately.
If you require additional work to be undertaken that falls outside of the services outlined in your contract, then we will charge you for this separately. We will discuss the nature of the cost with you and how it will be charged before we undertake any work. No refunds will be offered where you have chosen not to make full use of the service.
GDPR Compliance Statement
We confirm that we will comply with the provisions of the General Data Protection Regulation (GDPR) when processing personal data about you, your companies, your directors and employees and your/their families.
- obtaining, recording or holding personal data; or
- carrying out any operation or set of operations on personal data, including collecting and storage, organising, adapting, altering, using, disclosure (by any means) or removing (by any means) from the records manual and digital.
The information we obtain, process, use and disclose will be necessary for:
- the performance of the contract
- to comply with our legal and regulatory compliance and crime prevention
- contacting you with details of other services where you have consented to us doing so
- other legitimate interests relating to protection against potential claims and disciplinary action against us.
This includes, but is not limited to purposes such as updating and enhancing our client records, analysis for management purposes and statutory returns.
In regard to our professional obligations, we are a member firm of the The Institute of Chartered Accountants in England and Wales (ICAEW). Under the ethical and regulatory rules of the ICAEW we are required to allow access to client files and records for the purpose of maintaining our membership of this body.
Further details on the processing of data are contained in our privacy notice which should be read alongside this statement.