The purpose of this schedule to our engagement letter is to set out the basis on which we are to provide taxation services to the limited liability partnership as agents on the basis that you will make full disclosure to us of all relevant information.
1. TAXATION SERVICES
1.1We shall prepare the limited liability partnership’s self assessment tax returns and the annual partnership statements, together with any supplementary pages required, from the information and explanations that you provide to us.
1.2 We will also prepare the income tax and capital gains tax computations based on the limited liability partnership’s financial statements for inclusion in the limited liability partnership’s tax returns.
1.3Once we have obtained the approval and signature of the member who is responsible for dealing with the limited liability partnership’s tax affairs we will submit the limited liability partnership’s returns to HM Revenue & Customs (HMRC).
1.4 The work undertaken within this aspect of our engagement will be in respect of the limited liability partnership’s tax affairs. We have no responsibilities in respect of the personal tax affairs of the limited liability partnership’s members.
1.5 If instructed we will provide each member with details of the member’s allocations from the return to enable members to fill in their self assessment tax returns.
1.6 Where we undertake taxation work on behalf of the individual members of the limited liability partnership you must agree to keep us informed of relevant changes in circumstances that could affect the members’ tax liabilities, for example, keep us informed of changes in membership. Any work to be undertaken on behalf of the individual members will be set out in separate terms of engagement.
2. YOUR RESPONSIBILITIES
1.1 As members of the limited liability partnership you are responsible for:
• ensuring that the limited liability partnership’s self assessment tax returns are correct and complete; and
• filing any returns by the due date.
Failure to do this may lead to automatic penalties.
2.2 To enable us to undertake our work you agree:
•that all returns are to be prepared on the basis of full disclosure of all sources of income, charges, allowances and capital transactions;
• to provide all information necessary for dealing with the limited liability partnership’s tax affairs; and
•to provide us with information in sufficient time for the limited liability partnership’s tax return to be completed and submitted by the due date.
3.1We shall respond to any enquiries from HMRC arising from the limited liability partnership’s tax return. We shall consult you if it becomes clear that HMRC are opening an enquiry. HMRC have the power to do this on a purely random basis.
3.2 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.
4. OTHER SERVICES
4.1We shall be pleased to give advice on the tax implications of specific matters which you may refer to us from time to time. Such advice and / or assistance would also be subject to separate terms of engagement.
4.2You will be responsible for all other returns, particularly including those relating to employees' taxes, PAYE and VAT. We shall, however, be happy to advise in this connection if specifically requested. Such advice and / or assistance would also be subject to separate terms of engagement.
5.1We 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.
5.2It is a criminal offence for the limited liability partnership 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.
5.3In 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.
Updated October 2017