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. 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.
1.2 You are no less responsible for errors in unapproved returns, submitted on the basis of the information provided to and processed by us, than if you had confirmed your approval of the returns.
1.3 To enable us to undertake our work you agree:
a that all returns are to be prepared on the basis of full disclosure of all sources of income, charges, allowances and capital transactions;
b to provide full information necessary for dealing with the limited liability partnership’s affairs: we will rely on the information and documents being true, correct and complete and will not audit the information or those documents;
c to authorise us to approach such third parties as may be appropriate for information that we consider necessary to deal with your affairs; and
d to provide us with information in sufficient time for the limited liability partnership tax returns to be completed and submitted by its due date. In order that we can do this, we need to receive all relevant information by [insert date]. If for any reason we do not receive all relevant information by this date we may, at our discretion and depending on our work capacity, still endeavour to complete your tax return so that it can be submitted on time. We reserve the right to make an additional charge for such rush work and will advise you of the amount prior to carrying out the work.
2. OUR RESPONSIBILITIES
2.1 We will prepare the limited liability partnership's self-assessment tax returns and the annual partnership statements, together with any supplementary pages that are required, from the information and explanations you provide to us.
2.2 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.
2.3 Once we have obtained the written approval of the member who is responsible for dealing with the limited liability partnership’s tax affairs, as the legal responsibility for approval of the returns cannot be delegated to others, we will submit the limited liability partnership’s returns to HM Revenue & Customs (HMRC).
2.4 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 unless individually engaged by the members.
2.5 If instructed we will provide each member with details of the member’s allocations from the returns to enable members to fill in their self-assessment tax returns.
2.6 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.
2.7 We shall respond to any enquiries from HMRC arising from the limited liability partnership’s tax returns. 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. If the limited liability partnership is selected for enquiry by the HMRC, we will agree separate terms of engagement. The supplementary engagement terms will include responsibilities and fees as appropriate.
2.8 Since 17 July 2013 a General Anti-Abuse Rule has been in operation in the UK. This rule enables HMRC to further tackle abusive tax planning schemes. Due to the low probability of eventual success of such schemes and the high ethical standards of this firm, it is our policy not to advise on tax schemes that we consider to be artificial or aggressive in nature. Please let us know if you would like to discuss this matter further or if you feel that you are disadvantaged in any way by the firm’s policy on tax avoidance.
2.9 We 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.
3.1 We 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.
3.2 It 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.
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.
Updated January 2021