Schedule of Services

  1. ,,LIMITED COMPANY & LIMITED LIABILITY PARTNERSHIP ACCOUNTS AND TAX

Included:

  • Preparation of the company accounts based on the bookkeeping records provided
  • Preparation of the company corporate tax return
  • UK Corporate tax planning
  • Discounted Xero software licence
  • Dividend board minute template
  • Tax deductible expense summary
  • Automated email alert for forthcoming accounts submission deadlines and requesting the provision of documents
  • Advice regarding dividend process compliance
  • Advice regarding reclaiming staff and director expenses
  • Correspondence with HMRC
  • Remuneration structure (where a personal tax engagement is also in place for the business owners)
  • UK VAT compliance queries

Additional services:

  • VAT Flat rate scheme advice
  • International VAT compliance
  • VAT registration
  • UK corporate tax compliance for international transactions
  • Responding to an HMRC tax enquiry
  • Preparing amended Corporation tax returns and related HMRC correspondence
  • Letters to landlords or other 3rd parties for verification of income or similar
  • Support where the combined value of time spent on company accounts, tax and support exceeds the fees paid

Excluded:

  • Reconciliation of incomplete records (see 2. Management reporting, business advisory & bookkeeping)
  • Personal tax advice and support (see 3. Personal tax)
  • PAYE Compliance (see 4. Payroll)
  • Pension Compliance Support (see 4. Payroll)
  • Submission of the Companies House Confirmation Statement (see 6. Confirmation Statement filing service)
  • Provision of Registered office Service (see 9. Not provided by Numbergeek)
  • Company Formations

Expectations:

This schedule should be read in conjunction with the engagement letter and the terms and conditions of business.

PREPARATION OF STATUTORY FINANCIAL STATEMENTS IN COMPLIANCE WITH THE COMPANIES ACT 2006

 

  1.       Responsibilities and scope for financial statement preparation services

1.1      Your responsibilities as [directors] [members]

1.1.1  As [directors] [members] of the [company] [limited liability partnership], you are responsible for preparing financial statements which give a true and fair view and which have been prepared in accordance with the Companies Act 2006 (the Act). As [directors] [designated members] you must not approve the financial statements unless you are satisfied that they give a true and fair view of the assets, liabilities, financial position and profit or loss of the [company] [limited liability partnership].

1.1.2  In preparing the financial statements, you are required to:

  • select suitable accounting policies and then apply them consistently;
  • make judgements and estimates that are reasonable and prudent; and
  • prepare the financial statements on the going concern basis unless it is inappropriate to presume that the [company] [limited liability partnership] will continue in business.

1.1.3   You are responsible for keeping adequate accounting records that set out with reasonable accuracy at any time the [company’s] [limited liability partnership’s] financial position, and for ensuring that the financial statements comply with United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice (UKGAAP) and with the Companies Act 2006 and give a true and fair view.

1.1.4    You are also responsible for safeguarding the assets of the [company] [limited liability partnership] and hence for taking reasonable steps to prevent and detect fraud and other irregularities.

1.1.5  If audit exemption is being taken, you are also responsible for deciding whether, in each financial year, the [company] [limited liability partnership] meets the conditions for exemption from an audit, as set out in section 477 or 480 of the Companies Act 2006, and for deciding whether the exemption cannot be claimed that year.

1.1.6  You are responsible for ensuring that the [company] [limited liability partnership] complies with laws and regulations that apply to its activities, and for preventing non-compliance and detecting any that occurs.

1.1.7  You have undertaken to make available to us, as and when required, all the [company’s] [limited liability partnership’s] accounting records and related financial information, including minutes of management and [shareholders’] [directors’] [members’] meetings, that we need to do our work.

1.1.8  If financial information is published, which includes a report by us or is otherwise connected to us, on the [company’s] [limited liability partnership’s] website or by other electronic means, you must inform us of the electronic publication and get our consent before it occurs and ensure that it presents the financial information [and] [chartered accountants] [auditor’s] [report] properly. We have the right to withhold consent to the electronic publication of [our report or] the financial statements if they are to be published in an inappropriate manner.

1.1.9  You must set up controls to prevent or detect quickly any changes to electronically published information. We are not responsible for reviewing these controls nor for keeping the information under review after it is first published. You are responsible for the maintenance and integrity of electronically published information, and we accept no responsibility for changes made to [any] [audited] information after it is first posted.

 

1.2           Our responsibilities as accountants

1.2.1  You have asked us to help you prepare the financial statements in accordance with the requirements of the Companies Act 2006. We will compile the financial statements for your approval based on the accounting records that you maintain (or if we provide a bookkeeping service, based on the accounting records that we have assisted you in preparing) and the information and explanations that you give us.

1.2.2      We will make enquiries of management and undertake any procedures that we judge appropriate but are under no obligation to perform procedures that may be required for assurance engagements such as audits or reviews.

1.2.3  You confirm that the [company] [limited liability partnership] is exempt from an audit of the financial statements. We will not check whether this is the case. However, if we find that the [company] [limited liability partnership] is not entitled to the exemption, we will inform you of this.

1.2.4  Our work will not be an audit of the financial statements in accordance with International Standards of Auditing (UK and Ireland). So, we will not be able to provide any assurance that the accounting records or the financial statements are free from material misstatement, whether caused by fraud, other irregularities or error, nor to identify weaknesses in internal controls.

1.2.5  Since we will not carry out an audit, nor confirm in any way the accuracy or reasonableness of the accounting records, we cannot provide any assurance whether the financial statements that we prepare from those records will present a true and fair view.

1.2.6  We will advise you on whether your records are adequate for the preparation of the financial statements and recommend improvements.

1.2.7  We have a professional duty to compile financial statements that conform with generally accepted accounting principles from the accounting records and information and explanations given to us. The accounting policies on which the financial statements have been compiled will be disclosed in an accounting policy. We will not compile financial statements where the accounting principles, or the accounting policies selected by management are inappropriate.

1.2.8  We also have a professional responsibility not to allow our name to be associated with financial statements which we believe may be misleading. Therefore, although we are not required to search for such matters, should we become aware, for any reason, that the financial statements may be misleading, we will discuss the matter with you with a view to agreeing appropriate adjustments and/or disclosures in the financial statements. In circumstances where adjustments and or disclosures that we consider appropriate are not made or where we are not provided with appropriate information, and as a result we consider that the financial statements are misleading, we will withdraw from the engagement.

1.2.9  As part of our normal procedures we may ask you to confirm in writing any information or explanations given to us orally during our work.

 

1.3      Form of the accountants’ report.

1.3.1  We will report to [the Board of Directors] [members], as appropriate, that in accordance with this engagement letter and to assist you to fulfil your responsibilities, we have not carried out an audit but have compiled the financial statements from the accounting records and from the information and explanations supplied to us. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than [the Company and the Company’s Board of Directors, as a body] [the members] for our work or for this report.

CORPORATE TAX

1.4      Recurring compliance work

1.4.1  We will use appropriate software to apply iXBRL tags to items in the accounts as we consider appropriate for the purposes of submission of the accounts to HMRC.

1.4.2  We will, to the extent we consider necessary, manually amend or apply tags where the software has not applied automatic tagging or where we consider any automatic tagging to have been inappropriate.

1.4.3  We will provide you with detailed information regarding the tagging applied for your approval.

1.4.4  We will prepare the company’s corporate tax self assessment (CTSA) return. After obtaining the approval and signature of an authorised nominated director, we will submit it to HM Revenue & Customs (HMRC). We will not accept liability for any financial penalty, loss or other damage arising from any rejection of the iXBRL accounts by HMRC or otherwise as a result of incorrect or inappropriate tagging.

1.4.5  We will prepare the corporation tax computation and supporting schedules required for the preparation of the company tax return from accounts, information and explanations provided to us on your behalf.

1.4.6  We will tell you how much tax the company should pay and when. If appropriate, we will initiate repayment claims when tax has been overpaid. We will advise on the interest and penalty implications if corporation tax is paid late.

1.4.7  We will inform you if instalment payments of corporation tax are due for an accounting period and the dates they are payable. We will calculate the quarterly instalments which should be made on the basis of information supplied by you by the date agreed.

1.4.8  We will advise you as to possible tax return related claims and elections arising from information supplied by you. Where instructed by you, we will make such claims and elections in the form and manner required by HMRC.

 

1.5      Changes in the law

1.5.1  We will not accept responsibility if you act on advice given by us on an earlier occasion without first confirming with us that the advice is still valid in the light of any change in the law or your circumstances.

1.5.2  We will accept no liability for losses arising from changes in the law or the interpretation thereof that are first published after the date on which the advice is given

 

1.6      Your responsibilities

1.6.1  The Directors, on behalf of the company, are legally responsible for:

a)  Ensuring that the CTSA return (including tagging) is correct and complete;

b)  Filing any returns by the due date; and

c)   Making payment of tax on time.

Failure to do this may lead to automatic penalties, surcharges and/or interest.

The signatory to the return cannot delegate this legal responsibility to others. The signatory agrees to check that returns we have prepared for the company are complete before he/she approves and signs them.

1.6.2  To enable us to carry out our work the Directors agree:

a)     To provide us with approved accounts for the company.

b)      That all returns are to be made on the basis of full disclosure of all sources of income, charges, allowances and capital transactions;

c)     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 and will not audit the information or those documents;

d)     To authorise us to approach such third parties as may be appropriate for information that we consider necessary to deal with the company’s affairs;

e)      To provide us with information in sufficient time for the company’s CTSA return to be completed and submitted by the due date following the end of the tax year. In order that we can do this we need to receive all relevant information within 3 months of the submission deadline. Where we have sufficient resource available, we may agree to complete your return within a shorter period for which an express fee will also be charged;

f)     To provide information on matters affecting the company’s tax liability for the accounting period in respect of which instalments are due at least four weeks before the due date of each instalment. This information should include details of trading profits and other taxable activities up to the date the information is provided, together with estimates to the end of the accounting period; and

g)     To provide us with information on advances or loans made to directors, shareholders or their associates during an accounting period and any repayments made or write offs authorised at the latest within three months of the end of the relevant accounting period.

1.6.3  The Directors will keep us informed of material changes in circumstances that could affect the tax liabilities of the company. If the Directors are unsure whether the change is material or not, please let us know so that we can assess its significance.

1.6.4  You will forward to us HMRC statements of account, copies of notices of assessment, letters and other communications received from HMRC in time to enable us to deal with them as may be necessary within the statutory time limits. Although HMRC have the authority to communicate with us when form 64-8 has been signed and submitted (or we have been authorised using an authorisation code) it is essential that you let us have copies of any correspondence received because HMRC are not obliged to send us copies of all communications issued to you.

1.6.5  The work carried out within this engagement will be in respect of the company’s tax affairs. Any work to be carried out for the directors on a personal basis will be set out in a separate letter of engagement.

1.6.6  You are responsible for monitoring the monthly turnover to establish whether the company is liable to register for VAT, if it is not already registered. If you do not understand what you need to do, please ask us. If the company exceeds the VAT registration threshold, and you wish us to assist in notifying HMRC of the Company’s liability to be VAT registered we will be pleased to assist in the VAT registration process. You should notify us of your instructions to act in relation to the company’s VAT registration in good time to enable a VAT registration form to be submitted within the time limit of one month following the month in which the current VAT registration turnover threshold was exceeded. We will not be responsible if we are not notified in time and a late registration penalty is incurred.

  1. MANAGEMENT REPORTING, BUSINESS ADVISORY & BOOKKEEPING

To be agreed on an as required basis but may or may not include:

  • Finance meetings
  • Group reporting
  • Forecasting
  • Cash flow analysis
  • Management finance packs
  • Business advice and ad-hoc support
  • Profit and loss account analysis and commentary (e.g. month-on-month, year-on-year and variance)
  • Balance sheet reconciliations
  • Data processing (purchase invoices, bank transactions & accounting journals)
  • VAT compliance (return preparation & submission)

 

  1. PERSONAL TAX SERVICE

 

Included:

  • Preparation and submission of personal tax return
  • Point of correspondence with HMRC
  • Advice regarding tax efficient remuneration*
  • Personal tax planning*

*Subject to sufficient budget being available considering the fees paid in the period and the value of time already spent.

Additional services:

  • Responding to an HMRC tax enquiry

 

Excluded:

  • Advice regarding a partner or spouses personal tax affairs who does not have an engagement in place with Numbergeek

Expectations:

3.1      Recurring compliance work

3.1.1  We will prepare your self assessment tax returns together with any supplementary pages required from the information and explanations that you provide to us.  After obtaining your approval and signature, we will submit your returns to HM Revenue & Customs (HMRC).

3.1.2  We will calculate your income tax, national insurance contributions (NIC) and any capital gains tax liabilities and tell you how much you should pay and when. We will advise on the interest, penalty and surcharge implications if tax or NIC is paid late.  We will also check HMRC’s calculation of your tax and NIC liabilities and initiate repayment claims if tax or NIC has been overpaid.

3.1.3  Other than as regards tax credits (see below) we will advise you as to possible tax return related claims and elections arising from information supplied by you.  Where instructed by you, we will make such claims and elections in the form and manner required by HMRC.

3.1.4  We will review PAYE notices of coding provided to us and advise accordingly.

 

3.2      Ad hoc and advisory work

3.2.1. Where you have instructed us to do so, we will also provide such other taxation ad hoc and advisory services as may be agreed between us from time to time.  These may be the subject of a separate engagement letter at our option.  Where appropriate we will discuss and agree an additional fee for such work when it is commissioned by you.  Examples of such work include:

  • Advising on ad hoc transactions, preparing additional supplementary pages to your tax return and calculating any related liabilities;
  • Dealing with any enquiry opened into your tax return by HMRC;
  • Preparing any amended returns which may be required and corresponding with HMRC as necessary; and
  • Advising on the rules relating to and assisting with VAT registration.

3.2.2  Where specialist advice is required on occasions we may need to seek this from or refer you to appropriate specialists.

 

3.3      Changes in the law

3.3.1. We will not accept responsibility if you act on advice given by us on an earlier occasion without first confirming with us that the advice is still valid in the light of any change in the law or your circumstances.

3.3.2. We will accept no liability for losses arising from changes in the law or the interpretation thereof that are first published after the date on which the advice is given.

 

3.4      Your responsibilities

3.4.1. You are legally responsible for:

(a)      Ensuring that your self assessment tax returns are correct and complete;

(b)      Filing any returns by the due date; and

(c)         Making payment of tax on time.

Failure to do this may lead to automatic penalties, surcharges and/or interest.

Taxpayers who sign their returns cannot delegate this legal responsibility to others.  You agree to check that returns that we have prepared for you are complete before you approve and sign them.

3.4.2. To enable us to carry out our work you agree:

(a)      That all returns are to be made on the basis of full disclosure of all sources of income, charges, allowances and capital transactions;

(b)      To provide full information necessary for dealing with your affairs: we will rely on the information and documents being true, correct and complete and will not audit the information or those documents;

(c)      To authorise us to approach such third parties as may be appropriate for information that we consider necessary to deal with your affairs; and

(d)      To provide us with information in sufficient time for your tax return to be completed and submitted by the 31st January following the end of the tax year.  In order that we can do this, we need to receive all relevant information by the preceding 31st October. Where we have sufficient resources available we may agree to complete your return within a shorter period for which an express fee will also be charged.

3.4.3. You will keep us informed of material changes in your circumstances that could affect your tax liability.  If you are unsure whether the change is material or not, please let us know so that we can assess the significance.

3.4.4. You will forward to us HMRC statements of account, copies of notices of assessment, letters and other communications received from HMRC in time to enable us to deal with them as may be necessary within the statutory time limits.  Although HMRC have the authority to communicate with us when form 64-8 has been signed and submitted (or we have been authorised using an authorisation code) it is essential that you let us have copies of any correspondence received because HMRC are not obliged to send us copies of all communications issued to you.

  1. PAYROLL

 

Included:

  • Monthly electronic payslips from the wages information provided
  • Monthly PAYE statement
  • Monthly payroll summary
  • Monthly Real Time Information (RTI) submission
  • Provision of end of year P60
  • Calculations or queries regarding PAYE calculations*
  • Correspondence with HMRC*

*Subject to sufficient budget being available considering the fees paid in the period and the value of time already spent.

Additional services:

  • PAYE Scheme registration and closure
  • New starter set up 
  • Mid-year on-boarding
  • PllD’s (employee benefits)
  • Current month payroll re-runs (where current month payrolls need to be amended due to late changes being made)
  • Provision of duplicate payslips or reports for previous months

Excluded:

  • Advice regarding employees’ personal tax affairs (see 4. Personal tax)
  • International payroll tax advice (see 9. Not Provided by Numbergeek)

4.1   Delivery of payroll service

4.1.1 Payroll is run on the 25th of the month or next available working day if this falls on a weekend or bank holiday.

4.1.2    Numbergeek will provide electronic:

  • Employee payslips in a single pdf document
  • electronic period summary (when appropriate) and
  • P32 advising PAYE/NIC payments due (when appropriate)

4.1.3    Numbergeek will make the Real Time Information (RTI) submission

4.1.4     Numbergeek will provide P60’s and P11d’s (if applicable) for all employees.

4.1.5     Numbergeek will make P11d submission’s if applicable

4.1.6    Numbergeek will provide client with copies of year end Employers Annual Return for approval, Numbergeek will require approval and confirmation that all payments have been made prior to submission

 

4.2   Payment of PAYE/NIC

4.2.1    When appropriate, Numbergeek will advise of the PAYE/NIC payment due date and provide client with a P32 advising the amount payable

4.2.2    It is the clients’ responsibility to ensure payments are made on time and Numbergeek will not issue any further reminders.

4.2.3    The client is responsible for any fines incurred as a result of not paying PAYE/NIC on time

 

4.3   Provision of information

4.3.1 The payroll delivery date is the 25th of the month or the next working day. It is the client’s responsibility to provide the payroll information at least 2 working days before the payroll delivery date (e.g. if the payroll delivery date is Friday 25th, information must be provided by Wednesday 23rd, if the payroll delivery date is Monday 25th, information must be delivered by Thursday 21st).

4.3.2    Payroll information includes:

  • A fully completed P45 or HMRC starter checklist (copy available here) for all new employees
  • New starter gross salary (annual pay or hourly rate (for hourly paid staff)
  • Gross bonus pay
  • Changes (e.g. pay rises)
  • Other changes in employee’s circumstances (e.g. change of address and change of name etc.)
  • Hours worked (for hourly paid workers)
  • Details of absences (e.g. sick, maternity and paternity leave) and if paid
  • Holiday pay amount for leavers

4.3.3 In the event a P45 or P46 (starter checklist) is not received 2 working days prior to running the payroll, payroll will be run excluding the new employee and a pay correction will be processed in the following month.

4.3.4    Changes to pay or other circumstances submitted late will not be actioned until the following month (unless a payroll re-run is agreed).

4.3.5 For hourly paid workers, if hours are not submitted 2 complete working days prior to the payroll delivery date, then we will assume there have been no changes for fixed hourly workers and that the hours are NIL for variable hourly workers.

4.3.6    Once payroll has been run it cannot be amended therefore the client must ensure all information provided is correct.

4.3.7    It is the client’s responsibility to pay for fines where information is submitted late or the incorrect information is provided.

 

4.4   Minimum term

4.4.1    Payroll services have a minimum twelve month commitment.

 

 

 

 

 

 

 

  1. PENSION COMPLIANCE SERVICE

 

Included in our monthly compliance fee:

  • Monthly pension calculations
  • Provision of report detailing employee and employer contributions
  • Monthly contribution submissions to the pension provider
  • Secondary point of contact with The Pension Regulator to receive correspondence
  • Submission of Declaration of Compliance

Additional services:

Pension scheme set up

New employee enrolment

 

Excluding:

Advice on pension schemes

  1. CONFIRMATION STATEMENT FILING SERVICE

Included:

  • Submission of the Company Confirmation Statement to confirm or update the record with the
  • Company share capital
  • Company shareholders
  • Company directors and their details
  • Persons of Significant Control
  • Registered Office address
  1. ADDITIONAL SERVICES

Work which falls outside the scope of the above items will be charged as a separate fee and may include the following:

  • VAT registration
  • VAT flat rate scheme advice and application
  • UK VAT compliance for international transactions
  • UK corporate tax compliance for international transactions
  • International VAT compliance 
  • International corporate tax 
  • responding to an HMRC tax enquiry
  • business valuations
  • business restructuring
  • SEIS and EIS advice
  • R&D tax credits
  • employment termination payments
  • Vendor due diligence
  • other bespoke consulting work
  • PAYE Scheme registration and closure
  • Pension scheme set up
  • preparation and filing of documents for a new share issue
  • preparation and filing of documents for director appointment or termination
  • Accountant’s letter confirming earnings for a personal mortgage or residential let

  1. SOFTWARE

Where we manage a software licence on your behalf, we will recharge the fee at the software providers list price less any discount agreed (if applicable).

  1. NOT PROVIDED BY NUMBERGEEK

The following services are not provided by Numbergeek. This is because we wish to focus on our core skills to maximise the efficiency (with regards to time and cost) and quality of our service:

  • Registered office provider
  • Trading address
  • Child tax credits & working tax credits
  • International payroll