Terms and Conditions of Service

We have set out below our full Terms and Conditions of Service (“Contract”), which constitute the formal terms under which we will be engaged to provide accountancy and tax services to you. You will be provided with a copy of our standard engagement letter before signing up to our services so that you can familiarise yourself with the Terms and Conditions of Service. Upon signing up and subsequently e-approving our engagement letter you are confirming that you have read and understood the contents of the Terms and Conditions of Service and agree that it accurately reflects your fair understanding of the services that you require us to undertake on your behalf.

These terms may be updated from time to time and any changes will be binding on you as we are entitled to treat your continued use of the Services as confirmation that you agree to the changes. We will however notify you in writing of any significant changes to the Terms and Conditions of Service.

Definitions

"MBT", “firm”, “us”, “we” and “our” means Micro Business Team Ltd, a limited company incorporated in England & Wales (registered no. 07899421) and whose registered office address is Dalton House, 60 Windsor Avenue, London, SW19 2RR.

"Client", “you” and “your” means the limited company, limited liability partnership or individual who we will act for.

"Services" and “engagement” means the use of the MBT accountancy and tax services as published on our website (whether paid monthly, annually or on a one-off basis).

Period of engagement

For monthly fixed fee services our engagement commences on the date of your first payment, as evidenced by the initial invoice emailed to you by MBT. Please also refer to our Cancellation policy, which sets out how the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 apply to individuals.

For all other services our engagement commences when our engagement letter has been e-approved by you.

The first period for which we will be responsible will be agreed with you and confirmed via email. We will not deal with earlier years unless you specifically ask us to do so. Fees for earlier years are included in the Services section of the MBT website and may vary from time to time.

MBT does not operate a minimum contract period or term.

Professional obligations

As a firm we observe and act in accordance with the by-laws, regulations and ethical guidelines of the Association of Chartered Certified Accountants (ACCA) and will accept instructions to act for you on this basis.

You are responsible for bringing to our attention any errors, omissions or inaccuracies in your returns that you become aware of after the returns have been submitted in order that we may assist you to make a voluntary disclosure.

In particular, you give us the authority to correct errors made by HMRC where we become aware of them. In addition, we will not undertake tax planning which breaches professional conduct in relation to taxation. We will therefore comply with the general anti-abuse rule and the targeted anti-avoidance rule. We will not be liable for any loss, damage or cost arising from our compliance with statutory or regulatory obligations. These requirements are available online at www.accaglobal.com/en.html.

The implications of professional body membership as it relates to GDPR are set out in the privacy notice, which should be read alongside these standard Terms and Conditions of Service.

Authorisation and registration

Micro Business Team Ltd are registered with the Association of Chartered Certified Accountants as chartered certified accountants and can be found on the register of members at http://members.accaglobal.com/en/find-an-accountant.

Implementation

We will only assist with implementation of our advice if specifically instructed and agreed in writing.

Client identification and verification

As with other professional services firms, we are required to identify and verify our clients for the purposes of the UK anti-money laundering legislation. Save in exceptional circumstances we cannot start work until this requirement has been met. We may request from you, and retain, such information and documentation as we require for these purposes and/or make searches of appropriate databases including ID verification software.

Timetable

The services we undertake to perform for you will be carried out on a timescale to be determined between us on an ongoing basis.

The timing of our work will in any event be dependent on the prompt supply of all information and documentation as and when required by us.

Retention of records

You have a legal responsibility to retain documents and records relevant to your tax affairs. During the course of our work we may collect information from you and others relevant to your tax affairs. We will return any original documents to you if requested. As a firm we maintain all documents and correspondence electronically and do not hold hard copy documents.

When we cease to act for you we will seek to agree the position on access to cloud accounting records to ensure continuity of service. This may require you to enter direct engagements with the software providers and pay for that service separately. Documents and records relevant to your tax affairs are required by law to be retained as follows:

Individuals, trustees and partnerships

  • with trading or rental income: five years and 10 months after the end of the tax year;
  • otherwise: 22 months after the end of the tax year.

Companies, LLPs and other corporate entities

  • six years from the end of the accounting period.

While certain documents may legally belong to you, we may destroy correspondence and other papers that we store, electronically or otherwise, which are more than seven years old. This includes your documents if they have not been reclaimed by you within the seven year period. You must tell us if you require the return of any specific document or their retention for a longer period.

You should retain documents that are sent to you by us as set out in the privacy notice, which should be read alongside these Terms and Conditions of Service.

Conflicts of interest

If there is a conflict of interest in our relationship with you or in our relationship with you and another client that is capable of being addressed successfully by the adoption of suitable safeguards to protect your interests, then we will adopt those safeguards.

Where conflicts are identified that cannot be managed in a way that protects your interests then we regret that we will be unable to provide further services. If this arises, we will inform you promptly. We reserve the right to act for other clients whose interests are not the same as or are adverse to yours, subject, of course, to the obligations of confidentiality (see separate section).

Internal disputes

If we become aware of a dispute between the parties who own or are in some way involved in the ownership and management of the business, it should be noted that our client is the business and we would not provide information or services to one party without the express knowledge and permission of all parties. Unless otherwise agreed by all parties we will continue to supply information to the Board of directors, partners or Members. If conflicting advice, information or instructions are received from different senior individuals in the business we will refer the matter back to the Board of directors, partners or Members and take no further action until the Board has agreed the action to be taken.

Provision of Services Regulations 2009

In accordance with our professional body rules we are required to hold professional indemnity insurance. Details about the insurer and coverage are as follows:

Insurer: Catlin Insurance Company (UK) Limited
Policy number: DQ0246586
Indemnity limit: £1,000,000

Services (including KashFlow)

The Services covered by this contract are contained within the Service Guide and Other Services sections of the MBT website for Limited Company. MBT shall only be obliged to deliver those Services fully paid for by you.

A detailed explanation of our respective responsibilities in respect of each service covered by this contract in included below.

KashFlow

If we register you for an online KashFlow account you agree to be bound by the KashFlow Terms & Conditions as set out at http://www.kashflow.com/kf-terms/ upon logging in to the system.

You agree to pay us the KashFlow fee as set out on our website for use of the system. We are acting as agent in this transaction only and you agree that we have no responsibility whatsoever in respect of the Services as set out in the KashFlow Terms & Conditions.

The payment terms and cancellation rights set out in this contract shall also apply to your use of the KashFlow system.

Upon termination of this contract we will deactivate your KashFlow account and you can reactivate this by contacting KashFlow and subscribing to the service directly.

Advice

Payment for the Services allows for the provision of general accountancy and/or tax advice relevant to your circumstances and within the terms of the specific service only.

MBT will act as your agent in relation to HMRC and Companies House.

For specific matters relating to issues such as IR35 compliance, general advice and assistance will be offered and access to additional services provided. You should always seek specific advice on more complex matters.

The contents of the MBT website do not constitute advice and should not be relied upon in making, or refraining from making, any decision.

If you require advice or assistance from us outside of the Services, we may subcontract the provision of those services to one of our affiliates, or to a third party. A separate engagement letter will be issued for these services and additional fees will apply.

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 meeting or 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. However, bear in mind that advice is only valid at the date it is given.

Communication

We will communicate with you and with any third parties you instruct us to as set out in our engagement letter and privacy notice via email or by other electronic means. The recipient is responsible for virus-checking emails and any attachments.

We will not issue hard copy documents or correspondence unless there is a regulatory or legal requirement to do so.

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 that are corrupted or altered after despatch. Nor can we accept any liability for problems or accidental errors relating to this means of communication, especially in relation to commercially sensitive material. These are risks you must accept in return for greater efficiency and lower costs. If you do not wish to accept these risks we will not be able to complete our engagement.

When accessing information held electronically by HMRC, we may have access to more information than we need and will only access records reasonably required to carry out the contract.

You are required to keep us up to date with accurate contact details at all times. This is important to ensure that communications are not sent to the incorrect address.

Fees and payment terms

The fees for the Services are payable monthly, annually or on a one-off basis in advance using a debit or credit card upon sign up via our website. All recurring fees are included in the MBT website and may vary from time to time. You will be given advance written notice of any changes to the current fees.

Provision of the Services is reliant upon the fee being paid. If there is a gap in payments greater than 28 days for monthly paying clients then we shall be under no obligation to deliver the Services and they may be suspended with immediate effect. You will be required to make an additional payment to bring your account up to date upon re-signing up through the MBT website.

Card details cannot be updated on the website as they are held securely by our payment service provider and if a card permanently fails or expires it will always be necessary to re-sign up via the website. This will not affect the number of payments that need to be made.

If you cease to make payments we reserve the right to terminate the engagement via email. We will give 28 days’ notice of suspension and termination, after which we will commence disengagement procedures and remove MBT as your agent with HM Revenue & Customs and Companies House. MBT operates a no refund policy.

MBT cannot be held responsible or liable for any fines incurred as a result of your failure to manage your affairs or meet submission and/or payment deadlines due to the Services being suspended or terminated by MBT.

Ad-hoc work

Where requested, we may undertake additional work on your behalf outside of our fixed fee service. These services will be subject to the terms of this engagement letter and standard Terms and Conditions of Service unless we decide to issue a separate engagement letter.

We may indicate a fixed fee for the provision of specific services, an indicative range of fees for a particular assignment or agree an hourly charge out rate with you. Where a fixed fee quote has been provided and it becomes apparent to us, due to unforeseen circumstances, that the fee quote is inadequate, we reserve the right to notify you of a revised figure or range and to seek your agreement thereto.

In some cases, you may be entitled to assistance with your professional fees, particularly in relation to any investigation into your tax affairs by HMRC. Assistance may be provided through insurance policies you hold or via membership of a professional or trade body. Other than where such insurance was arranged through us, you will need to advise us of any such insurance cover that you have. You will remain liable for our fees regardless of whether all or part are liable to be paid by your insurers.

We will bill monthly for additional services and our invoices are due for payment upon presentation/within 7 days of the invoice date. Our fees are exclusive of VAT, which will be added where it is chargeable.

Any disbursements we incur on your behalf and expenses incurred in the course of carrying out our work for you will be added to our invoices where appropriate.

Unless otherwise agreed to the contrary, our fees do not include the costs of any third party, counsel or other professional fees.

If you do not accept that an invoiced fee is fair and reasonable you must notify us within 7 days of receipt, failing which you will be deemed to have accepted that payment is due.

On termination of the engagement you may appoint a new adviser. Where a new adviser requests professional clearance and handover information we reserve the right to charge you a reasonable fee for the provision of handover information.

Lien

In so far as permitted to do so by law or professional guidelines, we reserve the right to exercise a lien over all funds, documents and records in our possession relating to all engagements for you until all outstanding fees and disbursements are paid in full.

Additional fees

Additional fees will apply in specific circumstances where information is provided in paper form or on occasions where deadlines are not met. Please note that MBT will not be obliged to continue to provide services where additional fees are issued until these have been settled in full.

Additional fees – failed payments

So that we can keep costs to a minimum it is a requirement that payment for monthly services is made via a recurring payment subscription using a debit or credit card when you sign up through the MBT website. Where your payment fails more than two times in any rolling 12-month period then an additional fee equating to £25 plus VAT will be payable for each subsequent payment failure.

Additional fees – annual accounts

You will be notified via email of the information required in order to prepare your annual accounts. If the information is not provided to MBT within 5-months of the financial year end then additional fees will apply. These additional fees will be notified to you in advance of any accounts preparation work commencing.

Additional fees – self assessment

You will be notified via email of the information required in order to prepare your self assessment tax return. If the requested information is not provided to MBT by 30th September each year then additional fees will apply. These additional fees will be notified to you in advance of any self assessment work commencing.

Commissions and other benefits

In some circumstances we may receive commissions and/or other benefits for introductions to other professionals or in respect of transactions which we arrange for you. You consent to such commissions or other benefits being retained by us without our being liable to account to you for any such amounts. The fees you would otherwise pay will not be reduced by the amount of the commissions or benefits.

Investment services

Investment business is regulated under the Financial Services and Markets Act 2000 and the Financial Services Act 2012.

If, during the provision of professional services to you, you need advice on investments, including insurances, we may have to refer you to someone who is authorised by the Financial Conduct Authority or the Prudential Regulation Authority or licensed by a Designated Professional Body as we are not authorised to give such advice.

Confidentiality

Communication between us is confidential. We shall take all reasonable steps not to disclose your information except where we are required to and as set out in our privacy notice. Unless we are authorised by you to disclose information on your behalf this undertaking will apply during and after this engagement.

We may, on occasions, subcontract work on your affairs to other tax or accounting professionals. The subcontractors will be bound by our client confidentiality and security terms.

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 directly caused by our negligence or wilful default.

Exclusion of liability for loss caused by others

We will not be liable if such losses, penalties, 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 by 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 misrepresented to us.

This exclusion shall not apply where such misrepresentation, withholding or concealment is or should (in carrying out the procedures that 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.

Indemnity for unauthorised disclosure

You agree to indemnify us and our agents in respect of any claim (including any claim for negligence) arising out of any unauthorised disclosure by you or by any person for whom you are responsible of our advice and opinions, whether in writing or otherwise. This indemnity will extend to the cost of defending any such claim, including payment at our usual rates for the time that we spend in defending it.

Limitation of Third Party Rights

The advice and information we provide to you as part of our service is for your sole use and not for any third party to whom you may communicate it unless we have expressly agreed in the engagement letter that a specified third party may rely on our work. We accept no responsibility to third parties, including any group company to whom the engagement letter is not addressed, for any advice, information or material produced as part of our work for you which you make available to them. It may not be used or relied upon for any other purpose or by any other person other than you without our prior written consent. A party to this agreement is the only person who has the right under the Contracts (Rights of Third Parties) Act 1999 to enforce any of its terms.

If our advice is disclosed to any third party (with or without our consent), then we accept no responsibility or liability to that third party for any consequences that may arise to them, should they rely on the advice.

If it is proposed that any documents or statement which refer to our name are to be circulated to third parties, please consult us before they are issued.

Money Laundering Regulations

In accordance with the Proceeds of Crime Act, The Terrorism Act, Money Laundering Regulations 2017 and The 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 non-engagement documents relating to the client relationship and ongoing monitoring of it, will be retained by us for a period of 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.

Applicable law and data protection

Our engagement and all terms and conditions associated with it are governed by, and should be construed in accordance with, the law and practice of English and Wales. Each party agrees that the Courts of England and Wales will have exclusive jurisdiction in relation to any claim, dispute or difference concerning our engagement letter and any matter arising from it. Each party irrevocably waives any right 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.

Consumer credit

If, during the provision of professional services to you, you need advice or services on areas from us that fall within Consumer Credit activity, we may have to refer you to someone who is authorised by the Financial Conduct Authority (FCA) as we are not authorised to undertake this activity.

Intellectual property rights

We will retain all copyright in any document prepared by us during the course of carrying out the engagement save where the law specifically provides otherwise.

Interpretation

If any provision of our engagement letter, Schedules of Services or Standard Terms and Conditions of Service is held to be void, then that provision will be deemed not to form part of this contract and the remainder of this agreement shall be interpreted as if such provision had never been inserted.

Data Protection

We confirm that we will comply with the provisions of the General Data Protection Regulation (GDPR) when processing personal data about you and any other individuals involved in the business (i.e. fellow directors / partners / Members and employees).

Processing means:
  • 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 Association of Chartered Certified Accountants (ACCA). Under the ethical and regulatory rules of ACCA 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 these terms and conditions.

Privacy Notice

Introduction

The Data Protection Act 2018 (“DPA 2018”) and the General Data Protection Regulation (“GDPR”) impose certain legal obligations in connection with the processing of personal data.

Micro Business Team Ltd is a data controller within the meaning of the GDPR and we process personal data. The firm’s contact details are as follows:

Data Protection Manager: Martin Tamlyn

Email: martin.tamlyn@microbusinessteam.com.

Business address: 71-75 Shelton Street, Covent Garden, London, WC2H 9JQ

We may amend this privacy notice from time to time. If we do so, we will notify you and make available to you a copy of the amended privacy notice.

Where we act as a data processor on behalf of a data controller (for example, when processing payroll), we provide an additional schedule setting out required information as part of that agreement. That additional schedule should be read in conjunction with this privacy notice.

The purposes for which we intend to process personal data

We intend to process personal data for the following purposes:

  • to enable us to supply professional services to you as our client
  • to fulfil our obligations under relevant laws in force from time to time (e.g. the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (“MLR 2017”))
  • to comply with professional obligations to which we are subject as a member of the Association of Chartered Certified Accountants
  • to use in the investigation and/or defence of potential complaints, disciplinary proceedings and legal proceedings
  • to enable us to invoice you for our services and investigate/address any attendant fee disputes that may have arisen
  • to contact you about other services we provide which may be of interest to you if you have consented to us doing so
The legal bases for our intended processing of personal data

Our intended processing of personal data has the following legal bases:

  • the processing is necessary for the performance of our contract with you. This includes, but is not limited to, the preparation of personal tax returns, annual accounts and VAT Returns etc
  • the processing is necessary for compliance with legal obligations to which we are subject. This includes, but is not limited to, the Money Laundering Regulations 2017 and HMRC ./ Companies House statutory deadlines

It is a requirement of our contract with you that you provide us with the personal data that we request. If you do not provide the information that we request, we may not be able to provide professional services to you. If this is the case, we will not be able to commence acting or will need to cease to act.

Categories and source of personal data collected

Personal details such as HMRC tax references, National Insurance numbers, prior period tax filings and details of other HMRC matters may be obtained from your previous advisor as part of our professional clearance process, instead of from you as the data subject.

Organisations & persons to whom we may give personal data

We may share your personal data with:

  • HMRC
  • any third parties with whom you require or permit us to correspond, including suppliers (i.e. Kashflow, IRIS OpenSpace)
  • subcontractors
  • an alternate appointed by us in the event of incapacity or death
  • tax insurance providers
  • professional indemnity insurers
  • our professional body (the Association of Chartered Certified Accountants) and/or the Office of Professional Body Anti-Money Laundering Supervisors (OPBAS) in relation to practice assurance and/or the requirements of MLR 2017 (or any similar legislation)

If the law allows or requires us to do so, we may share your personal data with:

  • the police and law enforcement agencies
  • courts and tribunals
  • the Information Commissioner’s Office (“ICO”).

We may need to share your personal data with the third parties identified above in order to comply with our legal obligations, including our legal obligations to you. If you ask us not to share your personal data with such third parties we may need to cease to act.

Transfers of personal data outside the EU

Your personal data will be processed in the UK only.

Retention of personal data

When acting as a data controller and in accordance with recognised good practice within the tax and accountancy sector we will retain all of our records relating to you as follows:

  • where tax returns have been prepared it is our policy to retain information for 7 years from the end of the tax year to which the information relates
  • where ad hoc advisory work has been undertaken it is our policy to retain information for 7 years from the date the business relationship ceased
  • where we have an ongoing client relationship, data which is needed for more than one year’s tax compliance (e.g. capital gains base costs and claims and elections submitted to HMRC) is retained throughout the period of the relationship, but will be deleted 7 years after the end of the business relationship unless you as our client ask us to retain it for a longer period.

Our contractual terms provide for the destruction of documents after 7 years and therefore agreement to the contractual terms is taken as agreement to the retention of records for this period, and to their destruction thereafter.

You are responsible for retaining information that we send to you (including details of capital gains base costs and claims and elections submitted) and this will be supplied in the form agreed between us. Documents and records relevant to your tax affairs are required by law to be retained by you as follows:

Individuals, trustees and partnerships

  • with trading or rental income: five years and 10 months after the end of the tax year
  • otherwise: 22 months after the end of the tax year.

Companies, LLPs and other corporate entities

  • six years from the end of the accounting period.

Where we act as a data processor as defined in DPA 2018, we will delete or return all personal data to the data controller as agreed with the controller at the termination of the contract.

Requesting personal data we hold about you (subject access requests)

You have a right to request access to your personal data that we hold. Such requests are known as ‘subject access requests’ (“SARs”).

Please provide all SARs in writing marked for the attention of Martin Tamlyn (contact details above).

To help us provide the information you want and deal with your request more quickly, you should include enough details to enable us to verify your identity and locate the relevant information. For example, you should tell us:

  • your date of birth
  • previous or other name(s) you have used
  • personal reference number(s) that we may have given you, for example your national insurance number, your tax reference number or your VAT registration number
  • what type of information you want to know

If you do not have a national insurance number, you must send a copy of:

  • the back page of your passport or a copy of your photo driving licence
  • a recent utility bill.

DPA 2018 requires that we comply with a SAR promptly and in any event within one month of receipt. There are, however, some circumstances in which the law allows us to refuse to provide access to personal data in response to a SAR (e.g. if you have previously made a similar request and there has been little or no change to the data since we complied with the original request).

We will not charge you for dealing with a SAR.

You can ask someone else to request information on your behalf – for example, a friend, relative or solicitor. We must have your authority to respond to a SAR made on your behalf. You can provide such authority by signing a letter which states that you authorise the person concerned to write to us for information about you, and/or receive our reply.

Where you are a data controller and we act for you as a data processor (e.g. by processing payroll), we will assist you with SARs on the same basis as is set out above.

Putting things right (the right to rectification)

You have a right to obtain the rectification of any inaccurate personal data concerning you that we hold. You also have a right to have any incomplete personal data that we hold about you completed. Should you become aware that any personal data that we hold about you is inaccurate and/or incomplete, please inform us immediately so we can correct and/or complete it.

Deleting your records (the right to erasure)

In certain circumstances you have a right to have the personal data that we hold about you erased. Further information is available on the ICO website (www.ico.org.uk). If you would like your personal data to be erased, please inform us immediately and we will consider your request. In certain circumstances we have the right to refuse to comply with a request for erasure. If applicable, we will supply you with the reasons for refusing your request.

The right to restrict processing and the right to object

In certain circumstances you have the right to ‘block’ or suppress the processing of personal data or to object to the processing of that information. Further information is available on the ICO website (www.ico.org.uk). Please inform us immediately if you want us to cease to process your information or you object to processing so that we can consider what action, if any, is appropriate.

Obtaining and reusing personal data (the right to data portability)

In certain circumstances you have the right to be provided with the personal data that we hold about you in a machine-readable format, e.g. so that the data can easily be provided to a new professional adviser. Further information is available on the ICO website (www.ico.org.uk).

The right to data portability only applies:

  • to personal data an individual has provided to a controller
  • where the processing is based on the individual’s consent or for the performance of a contract
  • when processing is carried out by automated means

We will respond to any data portability requests made to us without undue delay and within one month. We may extend the period by a further two months where the request is complex or a number of requests are received but we will inform you within one month of the receipt of the request and explain why the extension is necessary.

Withdrawal of consent

Where you have consented to our processing of your personal data, you have the right to withdraw that consent at any time. Please inform us immediately if you wish to withdraw your consent.

Please note:

  • the withdrawal of consent does not affect the lawfulness of earlier processing
  • if you withdraw your consent, we may not be able to continue to provide services to you
  • even if you withdraw your consent, it may remain lawful for us to process your data on another legal basis (e.g. because we have a legal obligation to continue to process your data).
Automated decision-making

We do not intend to use automated decision-making in relation to your personal data.

Complaints

If you have requested details of the information we hold about you and you are not happy with our response, or you think we have not complied with the GDPR or DPA 2018 in some other way, you can complain to us. Please send any complaints to Martin Tamlyn via martin.tamlyn@microbusinessteam.com.

If you are not happy with our response, you have a right to lodge a complaint with the ICO (www.ico.org.uk).

Data Protection Policy

Introduction

In the course of its business, the Company needs to gather and use certain information about individuals. This will include clients, suppliers and other business contacts, and employees and prospective employees, as well as other people that we have a relationship with, may need to contact, or with whom we need to deal.

This policy describes how this personal data must be collected, processed, transferred, handled and stored in order to meet the requirements of data protection law, in particular the General Data Protection Regulation (GDPR). We recognise that, not only must we comply with the principles of fair processing of personal data, we must also be able to demonstrate that we have done so. The procedures and principles set out below must be followed at all times by the Company, its employees and all those within its scope as set out below.

Why this policy exists

This Policy provides help and guidance to our staff and managers in:

  • complying with data protection law and following good practice
  • protecting the rights of staff, clients, Directors and business contacts
  • being open about how we use personal data, how we store it and when we secure it
  • protecting the Company against the risks of both inadvertent and intentional data breaches
Scope of the Policy

The Policy applies to all employees; fixed term contract employees; temporary employees; agency staff; and consultants and contractors who are provided with access to any of the Company’s files and/or computer systems. Collectively these individuals are hereafter referred to as 'users'. All users have responsibility for complying with the terms of this Policy.

Data Protection Law

What is personal data?

The GDPR regulates how organisations must collect, handle and store personal data. Personal data is any information relating to an identified or identifiable living individual. It is information which enables that person to be identified, directly or indirectly, and may include their name, address, telephone number(s), email address(es), age, location data, or online and biometric identifiers. We hold data relating to our employees, some of which is classed as sensitive personal data (also known as ‘special category data’) where, for example, it concerns a person’s health and medical status. We also hold a wide range of information about clients, including highly confidential personal financial data such as their individual tax information.

These rules apply to all data stored in any structured way, including both paper files and electronically. What does the law say?

The Data Protection Principles

The GDPR contains a number of key principles which apply to the collection and processing of personal data and which underpin everything that follows.

Lawfulness, fairness and transparency Personal data shall be processed lawfully, fairly and in a transparent manner in relation to the data subject
Purpose limitation Personal data shall be collected for specified, explicit and legitimate purposes and not further processed in a manner that is incompatible with those purposes
Data minimisation Personal data shall be adequate, relevant and limited to what is necessary in relation to the purposes for which they are processed
Accuracy Personal data shall be accurate and, where necessary, kept up to date
Storage limitation Personal data shall be kept in a form which permits identification of data subjects for no longer than is necessary for the purposes for which the personal data are processed
Integrity and confidentiality Personal data shall be processed in a manner that ensures appropriate security of the personal data, including protection against unauthorised or unlawful processing and against accidental loss, destruction or damage, using appropriate technical or organisational measures
Accountability The controller shall be responsible for, and be able to demonstrate compliance with the GDPR

For the purposes of the law and these principles, a ‘data controller’ is a person who (either alone or jointly or in common with other persons) determines the purposes for which and the manner in which any personal data are, or are to be, processed. In relation to the majority of our data, we are data controllers, although where we are responsible for eg looking after a client’s payroll, they are the data controller and we are ‘data processors’. A data processor means a natural or legal person, public authority, agency or other body which processes personal data on behalf of the controller." Our responsibilities as data processors are dealt with later in the Policy.

Key Responsibilities
  • The Directors are ultimately collectively responsible for ensuring that the Company meets its legal obligations and that this Policy is followed
  • The Data Protection Manager is responsible for:
    • keeping the Directors updated about data protection responsibilities, risks and issues
    • reviewing all data protection procedures and related policies, in line with an agreed schedule
    • arranging data protection training and advice for everyone to whom this Policy applies
    • handling data protection queries from staff and contractors
    • dealing with requests from anyone whose data we hold for access to that data (known as ‘subject access requests’)
    • checking and approving any contracts or agreements with third parties that may handle our personal data
    • checking and approving any contracts or agreements with third parties whose personal data we may handle
    • ensuring that policies on processing, retention, storage and deletion of data are adhered to and relevant documentation is maintained to evidence compliance
    • ensuring that all systems, services and equipment used for storing data meet acceptable security standards
    • performing regular checks to ensure that security hardware and software is functioning properly
    • evaluating any third-party services the Company is considering using to store or process data. For example, cloud computing services
    • approving any data protection statements attached to communications such as emails and letters
    • where necessary working with other staff to ensure marketing initiatives are compliant with data protection principles
    • ensuring that records of consents and withdrawal of consents to marketing are maintained.
Lawful, Fair and Transparent Data Processing

We are responsible as a Company for ensuring that any personal data we hold is processed in accordance with the principles laid out above. We are permitted to process data where one of the following legal bases applies:

  • the data subject has given their consent. An example might be where a client has agreed to be contacted about a new tax advice service we are providing
  • the processing is necessary for the performance of a contract to which the data subject is a party, or in order to take steps at the request of the data subject prior to entering a contract with them. An example of this is where we need to retain and file personal information about our clients in order to finalise their accounts or tax affairs, or where a potential client gives us their personal data in order for us to be able to quote for advice that they need, and in order for them to decide whether to instruct us
  • the processing is necessary for compliance with a legal obligation to which the data controller is subject. An example of this might be where we pass personal data to the relevant money laundering authorities in a situation where we have an obligation to do so
  • the processing is necessary to protect the vital interests of the data subject or another natural person. An example of this might be where we pass on information to the next of kin of an employee who is gravely ill
  • the processing is necessary for the performance of a task carried out in the public interest or in the exercise of official authority vested in the data controller. This is usually used by public authorities carrying out vital functions such as provision of public utilities or public safety
  • the processing is necessary for the purposes of legitimate interests pursued by the data controller or by a third party, except where those interests are overridden by the fundamental rights and freedoms of the data subject and their right to privacy in relation to their personal data. This is a difficult exception to generalise about, but it can be used by business where they have legitimate commercial aims which can override the data subjects’ interests. An example might be the chasing of a legitimate debt, investigating potential dishonesty of an employee, investigating a grievance about sexual or racial harassment. These legitimate aims may require some processing of personal data which may be justified in that context. Any user who wishes to use this basis would be advised to speak to the Data Protection Manager to discuss it.
Sensitive Personal Data or ‘Special Category Data’

This data has a special status under the law, as it is particularly personal in nature. It concerns a person’s race, ethnicity, politics, religion, trade union membership, genetics, biometrics used for identification purposes, health, sex life or sexual orientation. There are a number of strict rules about the processing of this kind of data, and the kinds of situations in which it is legitimate to process it, and usually the data controller needs the data subject’s explicit consent to do so or a clear legal basis. We will never disclose such data to any third party unless legally obliged to do so, and then only to appropriate authorities as required by law.

In normal circumstances, the only sensitive personal data that we hold is in relation to our employees, and it is dealt with in a separate Privacy Statement, a copy of which is provided to all staff. We may occasionally hold personal data about others providing work to the business such as agency workers or contractors working on site eg. biometric identity data, but this data will be dealt with in accordance with our contract by which their services are provided.

Other Personal Data

The Company will adhere to the following principles:

  • the Company collects and processes the personal data set out in the table below, this includes:
    • personal data obtained directly from data subjects, and
    • personal data obtained from third parties
  • the Company only collects processes and holds personal data for the specific purposes set out below, or for other purposes expressly permitted by the GDPR
  • we keep data subjects informed at all times of the purpose(s) for which the Company processes their personal data
  • where personal data will be disclosed to third parties, we will only do so where we are legally required to do so, eg to HMRC or to money laundering authorities, or where we have the data subjects’ free and informed consent to the disclosure
  • we will only collect and process personal data for and to the extent necessary for those specified purpose(s)
  • in respect of personal data that we collect and process, we will
    • keep it accurate and up to date
    • grant the data subject the right to rectify any inaccurate data in accordance with their right to do so
    • regularly check the data and ensure that all reasonable steps are taken to promptly rectify or delete any mistakes or inaccuracies as appropriate
    • not keep personal data any longer than is necessary bearing in mind the purpose(s) for which it was collected
    • take all reasonable steps to delete or dispose any data which is no longer required promptly
    • adhere to our Retention Policy, which is available to all staff
    • take measures to ensure the security of the data in line with the measures set out below
Data Processing

We act as data processors for a number of clients (the data controllers), receiving personal data relating to their employees and processing it for the purpose of payment of salary, and appropriate deductions. We do not expect to receive any data which is sensitive personal data in relation to this. We will:

  • only process the personal data provided in accordance with the data controller’s instructions and in accordance with our contract with them
  • implement technical and organisational measures in line with the GDPR to ensure the fair and lawful processing and the security of such data
  • not disclose the data or transfer it to any third party without the explicit permission of the data controller, unless we are legally obliged to do or it is permitted and authorised by the contract with the data controller
  • ensure that appropriate records are kept in order that we are able to demonstrate compliance with GDPR principles
  • comply with our obligations to notify the regulatory authorities of any data breach.
Accountability and Record Keeping

The Company will keep written internal records of all personal data collection, holding and processing, and this will incorporate the following:

  • name and details of the Company, its Data Protection Manager and any third party data processors
  • the purposes for which the Company collects, holds and processes personal data
  • details of the categories of personal data collected, held and processed by the Company and the categories of data subject to which the data relates
  • details of any transfers of data to non-EEA countries including the mechanism for doing so and security measures taken
  • details of the Company’s retention policy (see Data Retention Policy)
  • detailed descriptions of all technical and organisational measures taken by the Company to ensure the security of personal data.
Privacy by Design – Data Impact Assessments

Part of the Company’s duty is to ensure that in the planning of new processes or procedures which involve the use of personal data, we consider the impact of the changes and ensure that we have fully considered and complied with our obligations under the GDPR. The Company will always ensure that all such changes are designed and implemented in accordance with the Regulation, and that the Data Protection Manager is consulted and their recommendations are taken into account in the planning and introduction of such changes.

In any situation where new technologies are being deployed and the processing of the personal data is likely to result in a high risk to the data subjects’ rights and freedoms under the Regulation, we will carry out a Data Impact Assessment, overseen by the Data Protection Manager. This will deal with:

  • the type(s) of personal data that will be collected, held and processed
  • the purpose for which it is to be used
  • the Company’s objectives in processing this data and making this innovation
  • how the personal data is to be used
  • internal and external parties to be consulted
  • why we need the data and how the collection of the data is proportionate to our need for it
  • what risks there are for data subjects
  • what risks the Company runs, and
  • what measures we are proposing to minimise and protect against the risks.
Providing Information to Data Subjects

We are required to ensure that, when we collect and process personal data, the data subject is aware of the purposes for which this is being done, and what is happening to the data. We therefore will ensure that the following principles are followed:

  • where we collect personal data directly from the data subject, we will inform them of the purpose for which it is being collected at the time of collection
  • where we are obtaining personal data from a third party, we will inform the data subject why we are doing this
    • if we use the details to contact them, at the time of first contact, or
    • if we are going to pass the information to a third party, at the time this is done, or
    • as soon as is reasonably possible and in any event, within one month
  • All data subjects will be provided with the following information:
    • details of the Company, including the name of the Data Protection Manager
    • why the data is being collected and processed, and the legal basis for this
    • if applicable, any legitimate interests justifying the Company’s collection and processing of data
    • where personal data is not collected directly from the subject, the categories of data collected and processed
    • where the data is to be transferred to third party/parties, their details
    • where data is to be transferred outside EEA, details of the transfer
    • details of data retention
    • details of the data subject’s rights
      • under GDPR
      • to withdraw consent to processing at any time
      • to complain to the Information Commissioner’s Office (ICO)
    • details of any legal or contractual requirement which means that the Company needs to collect this information and process it, and what the implications are if it cannot do so.
    • details of any automated decision making or profiling that will take place using personal data, how the decisions will be made and their consequences
Data Subject Access

Subject Access Requests’ (SARs), can be made by data subjects where an organisation holds personal data about them. This can be done at any time, and the requests are made in order for the data subject to find out what data is being held, and what is being done with it. Where a subject access request is being made to us as a payroll processor, we will refer the employee to the data controller (who is their employer or client) to deal with the request.

  • such requests need to be made by the data subject in writing
  • they should be addressed to the Data Protection Manager, who will deal with the request
  • the Company will usually respond to them within one month, but we may need to extend it for a period of up to a further two months if it is a complex request or there are multiple requests. In that situation, the data subject(s) will be informed.
  • the Company will not charge the data subject any fee for responding to the SAR, unless the subject is asking for multiple copies of data already supplied or unless the request is manifestly unfounded or excessive.
Rectification of Personal Data

Where a data subject informs us that data we are holding about them is inaccurate or incomplete and requests that it is corrected, we will rectify the information and inform the data subject that we have done so, within one month of the request. Again, in complex cases, we may extend that period by up to two months.

Where the incorrect data is held by third parties to whom it has been disclosed, we will ensure that they are informed and that the data that they hold is rectified.

Erasure of Personal Data

Data subjects have a right to require the Company to erase personal data held about them when:

  • the Company no longer needs the data it is holding for the purposes for which it was originally collected
  • the data subject wishes to withdraw their consent to the Company holding and processing the data
  • the data subject objects to the Company holding and processing the data, and there is no overriding legitimate interest which allows us to continue to do so
  • the personal data has been processed unlawfully
  • the personal data needs to be erased in order for the Company to comply with a particular legal obligation.

Where we are obliged to do so, we will erase the information and inform the data subject that we have done so, within one month of the request. Again, in complex cases, we may extend that period by up to two months, and again where the data is held by third parties to whom it has been disclosed, we will ensure that they are informed and that the data that they hold is erased.

Restriction of Personal Data Processing

Data Subjects have a right to request that the Company ceases to process any personal data that we are holding about them. If that takes place, we will only retain whatever personal data we need to ensure that no further processing takes place, and we will inform any third parties to whom we have disclosed the data about the restriction on processing (unless it is impossible to do so or would involve disproportionate effort).

Objections to Personal Data Processing

Data subjects have a right to object to us processing their personal data based on our legitimate interests or for direct marketing purposes. Where the data subject notifies us of their objection, we will cease such processing immediately unless our legitimate interests override those of the data subject, or unless we need to continue to process the data in conducting a legal claim. Where the data subject is objecting to direct marketing, we will cease to use the data for this purpose immediately.

Personal Data, Collected, Held and Processed

Data subject Type of Data Purpose
Client Personal details of clients, such as names, addresses, contact details, age, sex etc Tax related details of clients, such as National Insurance numbers, tax references, bank account and other income details To provide accountancy and related services to clients, in particular for the administration of their tax and personal financial affairs and to comply with both their and our legal obligations including in relation to tax and money laundering. To market our services to clients, in accordance with the GDPR
Client employees (as processor) Personal details of client employees, such as names, addresses, contact details, age, sex etc Tax related details of client employees, such as National Insurance numbers and tax codes To provide payroll and related services to clients, in particular for the administration of their monthly payroll and to ensure staff receive their net salary payments
Prospects Limited personal details of potential clients, such as names, telephone numbers, email addresses etc Other personal details such as age, addresses etc is not collected from these data subjects To keep in touch with prospective clients regarding their proposed use of our services, in accordance with GDPR
Employee Personal details of employees, such as names, addresses, contact details, age, sex etc The administration of employment contracts
Employee Education and Training details of our prospective employees, employees and contractors Collected in the course of recruitment with a view to selection, and maintained to track their career progression
Employee / suppliers Financial Details of employees and contractors ie matters related to income and payroll, tax details, expenses claimed, court orders, pensions, insurance Collected and maintained in order to ensure timely and accurate payment of staff, and proper accounting for tax purposes
Data Security – Transferring Personal Data and Communications

We will ensure that we take the following measures with respect to all communications containing personal data:

  • all emails containing personal data are encrypted using Transport Layer Security and will be marked ‘Confidential’
  • all documents prepared for clients such as tax returns, and final accounts will be held in the secure IRIS OpenSpace portal and our IRIS hosted server. Access to these areas is controlled. Clients will be provided with unique, confidential log in details to allow them to view and e-approve their documents
  • personal data contained in the body of an email, whether sent or received, should be copied from the body of the email and stored securely, with the email being deleted
  • all temporary files containing any personal data should be deleted without delay
  • where personal information is being sent by fax, the recipient should be informed of its imminent arrival to allow them to monitor and collect the document immediately
  • all personal data sent in hard copy form should be delivered to the recipient in person, in a container marked ‘Confidential’, or sent by recorded delivery or courier, as appropriate.
Data Storage and General Security
  • all electronic copies of personal data should be stored securely using privilege levels and passwords
  • regular password changes will be enforced and the number of logins will be restricted
  • passwords should never be written down or shared between any employees, agents, contractors or other persons working on behalf of the Company, no matter what their level of seniority.
  • computer equipment belonging to the Company will be sited in a secure location within each home office and in a position where they cannot be viewed by members of the public
  • computer terminals must not be left unattended, and should be logged off at the end of the session
  • all software must be kept up to date and Jo Tamlyn shall be responsible for ensuring that all security-related updates are installed promptly, unless there are valid technical reasons for not doing so
  • no software should be installed on the Company’s system without the prior approval of Jo Tamlyn
  • personal data should not be stored on any mobile device such as laptops, tablets and smartphones without the approval of the DPO and, where it is held, only in accordance with his or her instructions and limitations
  • personal data must never be transferred on to an employee’s personal device and we will never transfer such data onto a device owned by a contractor or agent unless they have agreed to comply fully with the letter and spirit of this Policy and with the GDPR
  • all manual files must be stored securely in locked cabinets and should not be left unsecured in any home office overnight
  • computer print outs containing personal information should be destroyed without delay and should never be retained for scrap paper
  • where personal data is to be erased, or otherwise disposed of, this will be done in accordance with the Company’s Data Retention Policy.
Access to Personal Data

In relation to accessing personal data:

  • employees must never access data either on a computer or in paper form, without having authority to do so
  • personal data must not be shared informally and if an employee, agent, contractor, or any other third party wants access to the data, it must be formally requested from the Data Protection Manager
  • personal data must be handled with care, and should not be left unattended or in view of unauthorised employees, contractors or agents whether on paper or on a screen
  • where personal data held by the Company is being used for marketing purposes, it is the responsibility of the Data Protection Manager to ensure that appropriate consents are obtained.
Organisational Measures

The Company will take the following steps in relation to the collection, holding and processing of personal data:

  • all employees, agents, contactors or other parties working on our behalf will be made fully aware of their individual responsibilities, and the responsibilities of the Company, in relation to data privacy and the GDPR and they will be provided with a copy of this Policy
  • in respect of these individuals and of personal data held by the Company:
    • only those persons who need access to particular personal data in order to complete their assigned duties will be granted such access
    • all persons will be appropriately trained and supervised in handling personal data
    • all persons will be encouraged to exercise caution in discussing work related matters within the workplace
    • all employees are bound by strict duties of professional confidentiality in discussing any work related matters outside the workplace, which will be adhered to and enforced
  • our methods of collecting, holding and processing data will be regularly evaluated and reviewed and the personal data held by the Company will be reviewed periodically, as set out in our Data Retention Policy
  • we will keep the performance of our agents, contractors and third parties under review and, not only will we ensure that they are required to handle personal data in accordance with the GDPR and our Policy, but we will also ensure that they are held to the same standards as our own employees both contractually and in practice
  • where any agent, contractor or third party fails in their obligations under this Policy, we will ensure that they are required to indemnify us for costs, losses, damages or claims which may arise as a result.
Transfer of Personal Data outside the EEA

Personal data will be processed in the UK only.

Data Breach Notification

All personal data breaches must be reported immediately to the Data Protection Manager.

If such a breach occurs, and it is likely to result in a risk to the rights and freedoms of data subjects eg financial loss, breach of confidentiality, reputational damage, the Data Protection Manager is required to ensure that the ICO is informed without delay and, in any event, within 72 hours of the breach.

Where the breach is likely to result in a high risk to the rights and freedoms of data subjects, the DPO also needs to ensure that the data subjects affected by the breach are informed directly and without undue delay. The following information must be provided:

  • the categories and approximate numbers of data subjects affected
  • the categories and approximate numbers of personal data records concerned
  • the name and contact details of the Company’s Data Protection Manager
  • the likely consequences of the breach
  • details of the measures taken, or proposed, to deal with the consequences of the breach.
Implementation of the Policy

This Policy is effective as of 25th May 2018. No part of the Policy is retrospective in effect and applies to matters occurring on or after 25th May 2018.

This Policy has been approved and authorised by:

Name: Martin Tamlyn
Position: Director and Data Protection Manager

Cancellation

The Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 apply to the provision of accounting and/or personal tax services to individuals as this arrangement is considered to be a distance contract (not face-to-face) and individuals are defined as Consumers under the Regulations. This means that each individual has the right to cancel this contract in respect of their personal tax affairs within 14 days of making the initial payment to MBT and receiving the cancellation notice. The cancellation notice will be provided to you as part our welcome email. Please note that these Regulations do not apply to services provided to a limited company.

Subsequent to the above, you may cancel this contract at any time by emailing us on helpme@microbusinessteam.com and providing 28 days’ notice. We will cancel any recurring monthly or annual payment at the end of this notice period. If you have made less than 12 monthly payments for a specific accounting period at the time of cancellation then we will only be required to complete the annual compliance process for that period if you make a one-off payment to make the total number of payments up to 12.

MBT operates a no refund policy.

Following the notice period MBT shall not be required to carry out further work and shall not be responsible or liable for any consequences arising from termination.

MBT may cancel this contract at any time by providing 28 days’ written notice. Where you fail to cooperate with us, or we have reason to believe that you have provided us or HM Revenue & Customs with misleading information, we may terminate this agreement immediately. Termination will be without prejudice to any rights that may have accrued to either of us prior to termination.

If you engage us for a one-off piece of work (for example advice on a one-off transaction or preparation of a tax return for one year only) the engagement ceases as soon as that work is completed. The date of completion of the work is taken to be the termination date and we owe you no duties and we will not undertake further work beyond that date.

We owe you no duties beyond the date of termination and will not undertake any further work.

Disengagement

Upon cancellation by either party we will normally issue a disengagement letter to ensure that our respective responsibilities are clear.

We reserve the right following termination for any reason to destroy any of your documents that we have not been able to return to you after a period of six months unless other laws or regulations require otherwise.

Complaints procedure

We aim to provide a high quality of service at all times. If you would like to discuss with us how our service could be improved or if you are dissatisfied with the service that you are receiving please let us know by contacting Martin Tamlyn via martin.tamlyn@microbusinessteam.com.

On receipt of the complaint in writing, this will then be logged as a formal complaint and an acknowledgement email is sent to you.

The complaint will then be sent to the relevant individual and clarification sought.

You will be updated within 7 days of receiving your complaint

Once the complaint is resolved to your satisfaction the complaint will be filed as resolved.

Notes are updated on your personal file to ensure that all of the above has been met.

We undertake to look into any complaint carefully and promptly and to do all we can to explain the position to you. If we do not answer your complaint to your satisfaction you may take up the matter with the Association of Chartered Certified Accountants. This should be done promptly and in any event no later than 6 months after exhausting our procedures.

Should ACCA consider a complaint appropriate for conciliation, it is competent to offer alternative dispute resolution through its Conciliation Service. ACCA’s website address is www.accaglobal.com. Please note that, under the Alternative Dispute Resolution for Consumer Disputes (Competent Authorities and Information) conciliation process we are not obliged to submit to ACCA’s conciliation process.

There is also some useful information relating to when a complaint should be made to the ACCA.

http://www.accaglobal.com/uk/en/discover/complain/make-complaint.html

Limited company accounts – micro entity

Your responsibilities as directors

As directors of the company, you are required by statute to prepare accounts (financial statements) for each financial year, which give a true and fair view of the state of affairs of the company and of its profit or loss for that period. In preparing those accounts you must:

1. Select suitable accounting policies and then apply them consistently.

2. Make judgements and estimates that are reasonable and prudent.

3. Prepare the accounts on the going concern basis unless it is not appropriate to presume that the company will continue in business.

You have engaged us to prepare the micro accounts on your behalf.

It is your responsibility to keep proper accounting records that disclose with reasonable accuracy at any particular time the financial position of the company. It is also your responsibility to safeguard the assets of the company and for taking reasonable steps for the prevention of and detection of fraud and other irregularities with an appropriate system of internal controls.

You are responsible for determining whether, in respect of the year concerned, the company meets the conditions for exemption from an audit set out in section 477 of the Companies Act 2006, and for determining whether, in respect of the year, the exemption is not available for any of the reasons set out in section 478 of the Companies Act 2006.

You are also responsible for confirming that the company meets the qualifying conditions as a micro entity set out in the Small Companies (Micro-Entities’ Accounts) Regulations 2013

You are also responsible for making available to us, as and when required, all the company’s accounting records and all other relevant records and related information, including minutes of management and shareholders’ meetings.

You will also be responsible for:

1. Maintaining records of all receipts and payments of cash.

2. Maintaining records of invoices issued and received.

3. Reconciling balances with the bank statements.

The secure IRIS OpenSpace portal operated by MBT includes the ability for PDF documents to be e-approved, meaning that they are digitally sealed with a GlobalSign security certificate that is fully compliant with the Electronic Communications Act. The IRIS OpenSpace system will be used as part of the accounts approval process and in e-approving the documents within the system you are confirming that they give a true and fair view of the affairs of the company.

Agreement to our standard Terms and Conditions of Services provides your express consent to electronically approve documents.

Our service to you

Our work will not be an audit of the accounts in accordance with International Standards on Auditing (UK and Ireland). Accordingly we shall not seek any independent evidence to support the entries in the accounting records, or to prove the existence, ownership or valuation of assets or completeness of income, liabilities or disclosure in the accounts. Nor shall we assess the reasonableness of any estimates or judgements made in the preparation of the accounts. Consequently our work will not provide any assurance that the accounting records are free from material misstatement, irregularities or error.

As part of our normal procedures we may request you to provide written confirmation of any oral information and explanations given to us during the course of our work.

We have a professional duty to compile accounts that conform with generally accepted accounting principles. The accounts of a micro entity limited company are required to comply with the disclosure requirements of the Small Companies (Micro-Entities’ Accounts) Regulations 2013. Where we identify that the accounts do not conform to accepted accounting principles or standards, we will inform you and suggest amendments be put through the accounts before being published. We have a professional responsibility not to allow our name to be associated with accounts that may be misleading. In extreme cases, where this matter cannot be resolved, we will withdraw from the engagement and notify you in writing of the reasons.

Should you instruct us to carry out any alternative report it will be necessary for us to issue a separate letter of engagement.

We will not be carrying out any audit work as part of this assignment and accordingly will not verify the assets and liabilities of the company, nor the items of expenditure and income. To carry out an audit would entail additional work to comply with International Standards on Auditing so that we could report on the truth and fairness of the financial statements. We would also like to emphasise that we cannot undertake to discover any shortcomings in your systems or irregularities on the part of your employees.

If an audit of the accounts is required, you will need to notify us in writing. Should our work indicate that the company is not entitled to exemption from an audit of the accounts, we will inform you. If we decide to undertake an audit assignment at your request, a separate engagement letter will be required.

To ensure that anyone reading the accounts is aware that we have not carried out an audit, we will attach to the accounts a report stating this fact.

We will attach to the accounts a report developed by the Consultative Committee of Accountancy Bodies (CCAB) which explains what work has been done by us, the professional requirements we have to fulfil and the standard to which the work has been carried out. Web links are provided in the report so that you can obtain further information from the Association of Chartered Certified Accountants about:

1. The technical guidance for the work, and

2. The related ethical and other professional requirements.

The intended users of the report are the directors. The report will be addressed to the directors.

Once we have issued our report we have no further direct responsibility in relation to the accounts for that financial year. However, we expect that you will inform us of any material event occurring between the date of our report and that of the annual general meeting that may affect the accounts.

Corporation tax

1. Your responsibilities as directors

You are legally responsible for:

1. ensuring that the Corporation Tax Self Assessment return (including XBRL tags and iXBRL file) is correct and complete

2. filing any returns by the due date

3. paying tax on time.

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

Legal responsibility for approval of the return cannot be delegated to others. The nominated director agrees to check that the forms that we have prepared for you are complete before they approve them.

The secure IRIS OpenSpace portal operated by MBT includes the ability for PDF documents to be e-approved, meaning that they are digitally sealed with a GlobalSign security certificate that is fully compliant with the Electronic Communications Act. The IRIS OpenSpace system will be used as part of the annual approval process and in e-approving the CTSA within the system you are confirming that this gives a true and fair view of the affairs of the company.

Agreement to our standard Terms and Conditions of Services provides your express consent to electronically approve documents.

To enable us to carry out our work, you agree:

1. to provide us with approved accounts for the company. It is the responsibility of the directors collectively to produce accounts which give a true and fair view and we can only provide tagging services where the accounts have been prepared on this basis.

Where the accounts are not supplied in a format that is compatible with our iXBRL software we will convert the figures, which may be subject to an additional fee. This will be discussed and agreed with you in advance.

2. that all returns are to be made on the basis of full disclosure of all sources of income, charges, allowances and capital transactions

3. 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

4. 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

5. 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 6-months of the financial year end. Where feasible, we may agree to complete your return within a shorter period but may charge an additional fee for so doing

6. 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

7. 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.

You 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.

Where you wish us to deal with HMRC communications you will forward to us all communications received from HMRC such as HMRC statements of account, copies of notices of assessment and letters. These must be provided in time to enable us to deal with them as may be necessary within the statutory time limits. It is essential that you let us have copies of any correspondence received because HMRC is not obliged to send us copies of all communications issued to you.

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 is covered by the specific Self Assessment terms.

Our service to you

For the purpose of the delivery of the company’s tax return, we will use commercial software to apply XBRL tags to items in the accounts as we consider appropriate for the purposes of submission, for tax purposes, of the accounts in iXBRL via the Government Gateway.

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.

We will provide you with copies of the iXBRL information, which will show the tagging applied, for your approval.

We will prepare the company’s corporate tax self-assessment (CTSA) return. After obtaining written evidence of the approval of the nominated director, we will submit it to HMRC.

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

We will tell you how much tax the company should pay and when. Where instructed by you, we will advise on the interest and penalty implications if corporation tax is paid late. Where taxable losses are involved, we will advise you of the options available and, where appropriate, we will initiate repayment claims.

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 that should be made on the basis of information supplied by you by the date agreed.

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.

Ad hoc and advisory work

Where the director(s) has instructed us to do so we will provide such other taxation ad hoc and advisory services as may be agreed between us from time to time. These services will be subject to the terms of this engagement letter and standard Terms and Conditions of Service unless we decide to issue a separate engagement letter. An additional fee may be charged for these services. Examples of such work include:

1. advising on ad hoc transactions and queries (including telephone conversations), preparing and submitting information in the relevant format to HMRC and calculating any related tax liabilities

2. advising you when corporation tax is due on loans by the company to directors or shareholders or their associates, and calculating the payments due or the amount repayable when the loans are repaid

3. advising you on and preparing enhanced expenditure claims and reliefs, including those relating to research and development

4. advising you on and preparing detailed capital allowance claims relating to buildings and renovation, including the analysis of expenditure

5. dealing with any enquiry opened into the company’s tax return or tax affairs by HMRC

6. preparing any amended returns that may be required and corresponding with HMRC as necessary.

Where specialist advice is required on occasion, we may need to seek this from or refer you to appropriate specialists. We will only do this when instructed by the nominated director.

Changes in the law or public policy and practice

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 public policy and practice or your circumstances.

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

Payroll

Your responsibilities

You are legally responsible for:

1. ensuring that the data in your payroll submissions is correct and complete

2. making any submissions by the due date

3. paying tax and NIC on time.

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

Employers cannot delegate this legal responsibility to others. You agree to check that submissions that we have prepared for you are correct and complete before you approve them.

You are responsible for maintaining your employees’ information.

To enable us to carry out our work you agree:

1. that all information required to be delivered online is submitted on the basis of full disclosure

2. to provide full information necessary for dealing with your payroll affairs and workplace pension scheme contributions; we will rely on the information and documents being true, correct and complete, and will not audit the information or those documents

3. to agree with us the names of the persons authorised by you to notify us of changes in employees and in rates of pay. We will process the changes only if notified by that/those individuals

4. to advise us in writing of changes of payroll pay dates and workplace pension scheme contribution dates

5. to notify us at least 3 working days, or such other period as agreed with us, prior to the payroll pay date of all transactions or events that may need to be reflected in the payroll for the period, including details of:

  • all new employees (including full names, address, date of birth, gender, national insurance number) and details of their remuneration packages
  • all leavers and any termination payments
  • all changes to remuneration packages
  • all pension scheme changes
  • all changes to benefits and expenses reportable under an existing payrolling benefits and expense online service registration
  • irregular and/or ad hoc payments and the dates to be paid;

6. To provide the data required to complete:

  • in-year FPS by at least 3 working days prior to payroll pay dates so that they can be submitted on or before payday, or as agreed with us
  • in-year EPS by at least 3 working days prior to 19th of the month following the tax month
  • final FPS (or EPS when applicable) for the year at least 3 working days prior to 19 April following the end of the tax year
  • EYU within 3 working days of submission.

7. to authorise us to approach such third parties as may be appropriate for information that we consider necessary to deal with your affairs.

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

Where you wish us to deal with HMRC communications you will forward to us all communications received from HMRC. These must be provided in time to enable us to deal with them as may be necessary within the statutory time limits. It is essential that you let us have copies of any correspondence received because HMRC is not obliged to send us copies of all communications issued to you.

If the information required to complete the payroll services set out above is received later than the dates specified above or agreed with us, we will still endeavour to process the payroll and returns to meet the agreed payroll date and filing deadlines but we will not be liable for any costs or other losses arising if the payroll is late or the returns are filed late in these circumstances. We may charge an additional fee for work carried out in a shorter time period.

Our service to you

We will prepare your UK payroll for each payroll period to meet UK employment tax requirements specifically:

1. calculating the pay as you earn (PAYE) deductions including at the Scottish rate of income tax if applicable

2. calculating the employees’ national insurance contributions (NIC) deductions

3. calculating the employer’s NIC liabilities

4. calculating statutory payments – for example, statutory sick pay and/or statutory maternity pay

5. calculating reclaims of statutory payment – for example, maternity payments

6. calculating employee and employer pension contributions for employees and workers who are members of workplace pension schemes (including those who are auto-enrolled) on the basis of the information your provide

7. claiming employment allowance

8. calculating, if appropriate, apprenticeship levy

9. calculating other statutory and non-statutory deductions

10. submitting information online to HMRC under real-time information (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 and:

1. a payslip for each employee unless not required

2. a P45 for each leaver

3. a report showing your PAYE and NIC liability student loan and apprenticeship levy and due date for payment

4. a report showing pension contributions payable in respect of each employee to the respective workplace pension scheme(s) of which they are members and the due date(s) 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 the payday. You must ensure that the data provided to us is complete and accurate, and your attention is drawn to your legal responsibilities as set out below.

For each tax month we will prepare, where appropriate, an employer payment summary (EPS) from the information and explanations that you provide to us. (Examples of EPS data include statutory payments, employment allowance, Construction Industry Scheme deductions, apprenticeship levy allowance allocated to the PAYE scheme, apprenticeship allowance payable to date and confirmation that no payments were made to employees.)

We will submit EPSs to HMRC on the basis of the data provided by you. (EPSs must reach HMRC by the 19th of the month following the tax month to which they relate). You must ensure that the data provided to us is complete and accurate, and your attention is drawn to your legal responsibilities as set out below.

At the end of the payroll year we will:

1. prepare the final FPS (or EPS) and submit this to HMRC on the basis of the data provided by you. (The final FPS (or EPS) for the year must reach HMRC by 19 April following the end of the tax year.) You must ensure that the data provided to us is complete and accurate and your attention is drawn to your legal responsibilities as set out below

2. prepare and send to you form P60 for each employee on the payroll at the year-end so that you can give them to employees by the statutory due date of 31 May following the end of the tax year

Note that we will only deal with the nominated person within the organisation. Any enquiries from individual employees concerning their wages or other payroll details will be referred back to that responsible person.

Ad-hoc and advisory work

Where you have instructed us to do so we will provide such other payroll related ad hoc and advisory services as may be agreed between us from time to time. These services will be subject to the terms of this engagement letter and standard terms and conditions of business unless we decide to issue a separate engagement letter. An additional fee may be charged for these services. Examples of such work include:

1. advising on ad hoc transactions (for example, termination payments to employees) and queries (including telephone conversations), preparing and submitting information in the relevant format to HMRC and calculating any related tax and NIC liabilities

2. dealing with any compliance check or enquiry by HMRC into the payroll returns

3. preparing and submitting any amended returns or data for previous tax years and corresponding with HMRC as necessary

4. helping with setting up and administering workplace pension schemes, including referring you to appropriate specialists where necessary

5. agreeing with you which employer-provided BiK will be processed through the payroll and for which employees, registering the PAYE scheme to payroll BiK, processing through the payroll cash equivalent notional amounts, notifying HMRC of in-year changes, advising you on the payment of associated class 1A NIC, preparing and submitting return P11D(b), and notifications to employees

6. assisting you in the operation of the Construction Industry Scheme (CIS) for subcontractors

7. conducting PAYE, and benefits and expenses health checks

8. helping you to allocate apprenticeship levy allowance across your different PAYE schemes/group companies/connected charities.

Where specialist advice is required on occasion, we may need to seek this from or refer you to appropriate specialists. We will only do this when instructed by the nominated person.

Changes in the law or public policy and practice

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 public policy and practice or your circumstances.

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

Benefits in kind returns

Your responsibilities

You are legally responsible for:

1. ensuring that your declaration on form P11D(b) is true to the best of your knowledge and belief, and therefore that the entries on the related forms P11D are correct and complete

2. filing any returns by the due date after the end of the tax year

3. paying class 1A NIC on time.

Failure to do any of the above may lead to penalties and/or interest.

Legal responsibility for approval of the return cannot be delegated to others. The nominated individual agrees to check that the forms that we have prepared for you are complete before they approve them.

To enable us to carry out our work you agree:

1. that all returns are to be made on the basis of full disclosure

2. to provide full information necessary for dealing with your BiK returns; we will rely on the information and documents being true, correct and complete, and will not audit the information or those documents

3. to notify us of all transactions or events that may need to be reflected in the forms P11D for the period, including details of all employees during the year and details of their remuneration packages

4. to authorise us to approach such third parties as may be appropriate that we consider necessary to deal with completing the BiK returns.

If the information required to complete the BiK returns set out above is received more than 45 days after the end of the tax year, we will still endeavour to process the information onto the BiK returns to meet the submission date but we will not be liable for any costs or other losses arising if submission is late in these circumstances. We may charge an additional fee in such circumstances.

Where you wish us to deal with HMRC communications you will forward to us all communications received from HMRC. These must be provided in time to enable us to deal with them as may be necessary within the statutory time limits. It is essential that you let us have copies of any correspondence received because HMRC is not obliged to send us copies of all communications issued to you.

Our service to you

We will prepare forms P11D as may be required for each employee including directors based on the accounts, information and explanations provided to us on your behalf.

We will prepare form P11D(b) to include the class 1A NIC on benefits-in-kind (BiK) and expenses on forms P11D.

We will submit the forms P11D for any benefits/employees for whom benefits are provided but not payrolled with the form P11D(b) online after the form P11D(b) has been approved in writing by you.

We will prepare and send to you the P11D information for you to forward to your employees and directors by the statutory due date of 6 July following the end of the tax year.

We will calculate your class 1A NIC liability on the benefits and expenses returned in forms P11D hat you are obliged to pay HMRC by the due date and send payment instructions to you.

Ad-hoc and advisory work

Where you have instructed us to do so, we will provide such other taxation ad hoc and advisory services as may be agreed between us from time to time. These services will be subject to the terms of this engagement letter and standard terms and conditions of business unless we decide to issue a separate engagement letter. An additional fee may be charged for these services. Examples of such work include:

1. assisting you with calculating the values for tax and NIC of benefits-in-kind (BiK) provided to employees, including when provided by way of salary sacrifice and other optional remuneration arrangements

2. dealing with compliance checks or enquiries opened into the BiK returns by HMRC

3. preparing any amended returns that may be required and corresponding with HMRC as necessary

4. advising on PAYE settlement agreements and/or approved expenses scale rates

5. conducting PAYE and benefits health checks.

Where specialist advice is required, we may need to seek this from or refer you to appropriate specialists. We will only do this when instructed by the nominated person.

Changes in the law or public policy and practice

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 public policy and practice or your circumstances.

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

Value added tax (VAT)

Your responsibilities

You are legally responsible for:

1. ensuring that your returns are correct and complete

2. filing any returns by the due date

3. making payment of tax on time.

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

Legal responsibility for approval of the return cannot be delegated to others. You agree to check that returns that we have prepared for you are complete before approving them.

To enable us to carry out our work you agree:

1. that all returns are to be made on the basis of full disclosure

2. that you are responsible for ensuring that the information provided is, to the best of your knowledge, accurate and complete. The returns are prepared solely on the basis of the information provided by you and we accept no responsibility for any liabilities arising due to inaccuracies or omissions in the information you provide, which may lead to a misdeclaration on which penalties and interest may arise

3. to authorise us to approach such third parties as may be appropriate for information we consider necessary to deal with the returns

4. to provide us with all the records relevant to the preparation of your quarterly returns as soon as possible after the return period ends. We would ordinarily need a minimum of 14 days before submission to complete our work. If the records are provided later or are incomplete or unclear, thereby delaying the preparation and submission of the return, we accept no responsibility for any “default surcharge” penalty that may arise. Where feasible, we may agree to complete your return within a shorter period but may charge an additional fee for so doing.

You will keep us informed of material changes in circumstances that could affect your obligations, for example:

1. change in the nature of your business

2. change of type of supply for VAT

3. change in your type of business entity such as from sole trader into partnership

4. acquisition or disposal of land or property etc

5. starting to make supplies which are exempt from VAT

6. you have reclaimed VAT within the last 10 years, having spent over £250,000 in purchasing, building or redeveloping a property, and the extent to which it is being used for taxable and/or exempt purposes has changed since you first reclaimed the VAT (ie Capital Goods Scheme adjustments will apply).

Where you wish us to deal with HMRC communications you will forward to us all communications received from HMRC such as statements of account, copies of notices of assessment and letters. These must be provided in time to enable us to deal with them as may be necessary within the statutory time limits. It is essential that you let us have copies of any correspondence received because HMRC is not obliged to send us copies of all communications issued to you.

You are responsible for bringing to our attention any errors, omissions or inaccuracies in your returns that you become aware of after the returns have been submitted in order that we may assist you to make a voluntary disclosure.

If you provide digital services to consumers in the EU you are responsible for either registering for VAT in that member state or registering for MOSS in the UK.

If you are involved with any other business which is not registered for VAT you are responsible for monitoring your monthly turnover to establish whether you are liable to register for VAT. If you do not understand what you need to do, please ask us. If you exceed the VAT registration threshold, and wish us to assist you in notifying HMRC of your liability to be VAT registered, you must give us clear instructions to assist you in the VAT registration process. You should notify us of your instructions in good time to enable the VAT registration application form to be submitted within the statutory time limit of one month following the month in which you exceeded the VAT registration threshold in force at that time. We will not be responsible if you fail to notify us in time and incur a late registration penalty as a result.

If EC Sales Lists need to be completed you are responsible for obtaining all of your customers’ VAT registration numbers in other member states and to check any that you are not completely satisfied with, with HMRC.

Our service to you

We will prepare your VAT returns and EC Sales Lists 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.

We will forward to you the completed return calculations for you to review before you provide written evidence of your approval, for onward transmission by us to HMRC.

We 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. Similarly, we 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. We will discuss and agree an additional fee for such work when it is commissioned by you.

When your VAT return calculations need to be uploaded to HMRC to comply with the “Making Tax Digital” (MTD) regulations, you must ensure that you use functionally compatible software and/or spreadsheets that are digitally linked to the accounts software and which can be submitted to HMRC via an application programme interface (API). If you require us to upload your VAT return calculations in accordance with the MTD requirements, you must provide us with all the necessary digital links to submit all the transaction records that are required by HMRC, together with confirmation that your digital records are complete and accurate.

Ad-hoc and advisory services

Where you have instructed us to do so, we will provide such other taxation ad hoc and advisory services as may be agreed between us from time to time. These services will be subject to the terms of this engagement letter and standard terms and conditions of business unless we decide to issue a separate engagement letter. An additional fee may be charged for these services. Examples of such work include:

1. advising on ad hoc transactions and queries (including telephone conversations), preparing and submitting information in the relevant format to HMRC and calculating any related tax liabilities

2. reviewing and advising on a suitable partial exemption method to use in preparing the return

3. dealing with all communications relating to your VAT returns Intrastat returns, EC sales list returns or MOSS returns addressed to us by HMRC or passed to us by you

4. making recommendations to you about the use of cash accounting, annual accounting, flat rate and other suitable methods of accounting for VAT

5. making recommendations to you about the use of VAT Mini One Stop Shop (MOSS) if you supply digital services to consumers in the EU

6. providing you with advice on VAT related areas as and when requested.

Where the advice is provided in writing, the information provided and the query raised will be set out with our response to you.

Where specialist advice is required in certain areas, we may need to seek this from or refer you to appropriate specialists. We will only do this when instructed by you.

Changes in the law or practice or in public policy

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 practice or in public policy or your circumstances.

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

Bookkeeping

We can complete your bookkeeping and prepare your accounting records on a monthly or quarterly basis for an additional monthly fee. We will maintain your accounting records using the online accounting system of your choice (i.e. Kashflow, Xero, Free Agent).

Your responsibilities

You are responsible for providing us with the following information within a timeframe that we will agree with you after the end of each month or quarter in order for us to prepare the accounting records:

(a) sales invoices;

(b) purchase invoices;

(c) bank statements;

(d) details of cash and bank payments;

(e) details of cash and bank receipts;

This information is to be scanned in an acceptable file format and uploaded to the secure online IRIS OpenSpace portal used by MBT. If you are not able to scan and upload this information then access to an additional third party scanning service will be recommenced, at an additional cost to be paid by you. For the avoidance of doubt, the bookkeeping service does not include the collection and scanning of documents or visits to your office by a bookkeeper. This is an online data entry and reconciliation bookkeeping service only.

If the records are provided late or are incomplete or unclear thereby delaying the preparation and submission of a VAT return, we accept no responsibility for any “default surcharge” penalty that may arise;

Our service to you

From the information and explanations you supply we will maintain records of the following:

(a) records of bank receipts and payments;

(b) records of cash receipts and payments;

(c) reconciliations of the bank and cash control accounts;

(d) a record of sales;

(e) a record of purchases;

(f) a record of amounts owed to the business;

(g) a record of amounts owed by the business.

We will provide you with access to the following reports on a monthly or quarterly basis:

(a) profit and loss account;

(b) balance sheet;

(c) aged debtors report;

(d) schedule of outstanding questions and recommendations.

Company secretarial

Your responsibilities

You are responsible for ensuring that the Company/LLP information is kept up to date and for making correct returns by the due date.

You are responsible for identifying and taking reasonable steps to obtain the necessary information on people with significant control.

To enable us to carry out our work you agree:

1. To provide full information necessary for dealing with your affairs – we will rely on the information and documents being true, correct, complete and that you have obtained all required consents to act and will not audit the information or those documents.

2. That we can approach such third parties as may be appropriate for information that we consider necessary to deal with your affairs.

3. To provide us with information in sufficient time for your returns to be completed and submitted.

4. To provide us within seven days of signing, certified copies of directors and shareholder notices, minutes or resolutions.

Our service to you

We will prepare from the information and explanations provided by you, your returns together with any supporting schedules. We will not audit or otherwise check the underlying records.

The secure IRIS OpenSpace portal operated by MBT includes the ability for PDF documents to be e-approved, meaning that they are digitally sealed with a GlobalSign security certificate that is fully compliant with the Electronic Communications Act. The IRIS OpenSpace system will be used as part of the annual return approval process and in e-approving the document within the system you are confirming that the information is complete and correct in all respects.

Agreement to our standard Terms and Conditions of Services provides your express consent to electronically approve documents.

We will complete other returns reflecting changes in directors, shareholders, people with significant control etc. as requested.

We will maintain the statutory records on behalf of the company secretary from the information supplied.

Self assessment

Your responsibilities

You are legally responsible for:

1. ensuring that your self assessment tax returns are correct and complete

2. filing any returns by the due date

3. paying tax on time.

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

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

The secure IRIS OpenSpace portal operated by MBT includes the ability for PDF documents to be e-approved, meaning that they are digitally sealed with a GlobalSign security certificate that is fully compliant with the Electronic Communications Act. The IRIS OpenSpace system will be used as part of the annual approval process and in e-approving the self assessment tax return within the system you are confirming that this gives a true and fair view of your affairs.

Agreement to our standard Terms and Conditions of Services provides your express consent to electronically approve documents.

To enable us to carry out our work you agree:

1. that all returns are to be made on the basis of full disclosure of all sources of income, charges, allowances and capital transactions

2. to provide all 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

3. to authorise us to approach such third parties as may be appropriate for information that we consider necessary to deal with your affairs

4. to provide us with information in sufficient time for your tax 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 by 30 September. Where feasible we may agree to complete your return within a shorter period but may charge an additional fee for doing so.

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 its significance.

Where you wish us to deal with HMRC communications, you will forward to us all communications received from HMRC such as HMRC statements of account, copies of notices of assessment, tax codes and letters. These must be provided in time to enable us to deal with them as may be necessary within the statutory time limits. It is essential that you let us have copies of any correspondence received because HMRC is not obliged to send us copies of all communications issued to you.

Our service to you

We will prepare your self assessment tax return together with any supplementary pages required from the information and explanations that you provide to us. After obtaining your approval, we will submit your return to HMRC.

We will calculate your income tax, high-income child benefit charge (if applicable), national insurance contributions (NIC) and any capital gains tax liabilities, and tell you how much you should pay and when. Where instructed by you we will advise on the interest and penalty 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.

Other than tax credits and universal credit (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.

We will review PAYE notices of coding provided to us by you and advise accordingly. Note HMRC no longer sends copies of notices and coding to agents

Ad-hoc and advisory work

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 services will be subject to these terms and the standard Terms and Conditions of Service unless we decide to issue a separate engagement letter. An additional fee may be charged for these services. Examples of such work include:

1. advising on ad hoc transactions (for example, the sale of assets) and queries (including telephone conversations), preparing and submitting information in the relevant format to HMRC and calculating any related tax liabilities

2. dealing with any enquiry opened into your tax return or tax affairs by HMRC (fees are typically covered by our tax fee protection insurance policy)

3. preparing any amended returns that may be required and corresponding with HMRC as necessary

4. advising on tax credits and universal credit.

Where specialist advice is required, we may need to seek this from or refer you to appropriate specialists. We will only do this when instructed by you.

Tax credits and universal credit

If we agree to advise you on tax credits and universal credit we will issue a separate letter or schedule to cover this area. Tax credits and universal credit are, in effect, a social security benefit. Your entitlement or otherwise will depend not only on your own circumstances but also those of your household and we would require all relevant information to advise in this regard.

Changes in the law or practice or in public policy

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

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


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