Schedule of Professional Services - Taxation for Limited Companies

The purpose of this schedule to our engagement letter is to set out the basis on which we are to provide taxation services as your agents on the basis that you will make full disclosure to us of all relevant information.


1.1We shall prepare, in respect of each accounting period of the company, a computation for corporation tax purposes adjusted in accordance with the provisions of the Taxes Acts. We shall also prepare the return form CT600 and subsidiary forms required by self assessment. The self assessment forms together with the supporting corporation tax computations, will be sent to you for written approval and signature prior to submission to the Inspector of Taxes in the required iXBRL format.

1.2 We will convert your accounts in to the required iXBRL format appropriate for the purposes of submission of the accounts to HMRC.

1.3 We shall not advise you as to appropriate payments of corporation tax and S455 CTA2010 liabilities (loans to participators).

1.4If the company is selected for enquiry by HM Revenue & Customs, we will agree separate terms of engagement. The supplementary engagement terms will include responsibilities and fees as appropriate.

1.5You will be responsible, unless otherwise agreed, for all other returns, more particularly: returns relating to employee taxes under PAYE, returns of employee expenses and benefits on forms P11D and the returns of income tax deducted at source as required on forms CT61. Your staff will deal with all returns and other requirements in relation to value added tax.

1.6 We shall be pleased to advise you on matters relating to the company’s corporation tax liability, the implications of particular business transactions and on other taxation matters which you refer to us, such as national insurance, income tax deducted at source, employee benefits, value added tax and inheritance tax. Such services would also be subject to separate terms of engagement.


2.1We shall respond to any enquiries from HMRC arising from your tax return. However, we shall consult you if it becomes clear that HMRC are opening an in-depth enquiry. They have the power to do this on a purely random basis.

2.2 If HMRC’s enquiry requires us to respond in depth, we shall:

• Ascertain whether you wish us to respond on your behalf or whether you wish to deal with the enquiry yourself;
• If you wish us to respond, we shall proceed and invoice you on a time-spent basis up to a cost of £500;
•If our costs exceed, or are likely to exceed £500, we shall discuss the matter with you further and agree a costing for our work.


3.1We are bound by the ethical guidelines of the Institute of Chartered Accountants in England and Wales (“ICAEW”). Under those guidelines we are obliged to accept instructions to act for you on the basis that we will act in accordance with those guidelines.

3.2It is a criminal offence for the company not to comply with tax legislation. It is not part of the scope of our work relating to taxation to carry out a compliance exercise on whether you are in breach of any tax legislation. You are responsible for ensuring that the company complies with relevant tax legislation, and we are entitled to assume that it does so.

3.3 In any tax planning advice that we may offer, we will only consider the possible tax consequences of changes to your investments and will not offer any advice or comments on the possible other merits or otherwise of particular acquisitions or disposals of specific investments.


4.1From 1 April 2011, all Company Tax Returns for periods ending after 31 March 2010 must be filed online. The computations and accounts that are part of the return must be converted to the Inline eXtensible Business Reporting Language (iXBRL) format, which ‘tags’ information in the return, before submission. Harris & Co are reliant upon the software produced by Iris to submit accounts in iXBRL format and accept no liability for errors in this software.

4.2HM Revenue & Customs may reject the iXBRL submission due to incorrect tags. If the corporation tax return is not re-submitted before the filing deadline, penalties for late filing remain automatic. Harris & Co accept no liability for penalties incurred through incorrect tagging.

4.3 Harris & Co accept no liability for penalties arising from late filing of returns that have been rejected for incorrect tagging where you have instructed us to begin work on the company tax return and accounts less than 4 weeks before the filing deadline, or where you have failed to give us all the information we have requested less than 2 weeks before the filing deadline. The filing deadline for corporation tax returns is 1 year after the company’s financial year end.

4.4Harris & Co also accept no liability for penalties arising from late filing of returns that have been rejected for incorrect tagging where you have approved the accounts and tax return less than 5 working days before the filing deadline.

Updated November 2015

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