Standard terms of business and engagement Effective 1 January 2010
Cranleys Chartered Accountants or ‘Cranleys’ is a trading name of Cranleys Consulting Limited. We refer
to the term “partner” to mean a director, partner, consultant or employee with the same standing and
position within the company, it’s associates or part of the Cranleys network. The following standard
terms of business apply to all engagements accepted by Cranleys. All professional work carried out is
subject to these terms except where changes are expressly agreed in writing.
The purpose of this Standard terms of business and engagement is to set out the basis on which we are
to act as accountants and advisers to the company and to clarify our respective responsibilities. It is set
to include all conditions possible and we will only be responsible for each area if we are provided with
the information and requested to do so. We cannot be responsible for a failure to request information.
We are bound by the ethical guidelines of The Institute of Chartered Accountants in England and Wales
and accept instructions to act for you on the basis that we will act in accordance with those ethical
guidelines.
We are required to comply with the Money Laundering Act 2003 and require a copy of your passport
and a recent utility bill or bank statement.
1. Our commitment to you
• We will identify tax saving strategies which are relevant to you
• You will be given the office and mobile telephone numbers of your accountant so that you can
always contact him
• All correspondence will be responded to with within three working days
• Reply to emails and messages within 24 hours of receipt, ideally the same day
• Evening and weekend appointments will always be available
• Accounts will be completed within 14 days from receipt of all necessary information if required
• Tax returns will be completed within 14 days from receipt of all necessary information
• Actively encourage fixed quotes for services and the facility to pay by monthly payments
• Report any improvements you can make to your accounting systems and develop new ideas
And we will:
• avoid unnecessary jargon in all contact with you
• ensure you are not kept waiting for an appointment
• keep you fully informed about what is happening with your affairs
• always act in a professional manner and respect your confidentiality
• provide you with a schedule of requirements for accounts and routine tax matters
• complete every task on or ahead of time
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Cranleys Standard terms of business and engagement 1 January 2010
2. Your obligations
2.1 You will provide us with suitable records of accounting and taxable income to prepare your
accounts and tax returns within 6 months of the relevant period to which they relate (i.e. 30
September for personal tax returns).
2.2 You will aim to plan to provide us with suitable records of accounting and taxable income to
prepare your accounts and tax returns within 3 months of the relevant period to which they
relate (i.e. 30 June for personal tax returns).
2.3 Follow up any email or call with a follow up if no reply is received within 3 working days
2.4 To reply to responses required within 5 days of being requested including signing and returning
accounts and tax returns for submission as delays could lead to penalties.
2.5 Not to put undue pressure on our office 30 days leading up to deadlines, 19 May and 31 January.
2.6 Provide copies of your proof of address on engagement as well as when changes occur
3. Your personal responsibilities
3.1 For your company (if applicable)
3.2 As directors of the company, you are required to prepare financial statements for each financial
year, which give a true and fair view of the state of affairs of the company and of the profit or
loss of the company for that period. In preparing those financial statements, you are required
to:
(a) select suitable accounting policies and then apply them consistently;
(b) make judgements and estimates that are reasonable and prudent; and
(c) prepare the financial statements on the going concern basis unless it is inappropriate to
presume that the company will continue in business.
3.3 As directors of the company, you are required to prepare financial statements for each financial
You are responsible for keeping proper accounting records which disclose with reasonable
accuracy at any time the financial position of the company and to enable them to ensure that
the financial statements comply with the Companies Act 2006 (the Act). You are also responsible
for safeguarding the assets of the company and hence for taking reasonable steps for the
prevention and detection of fraud and other irregularities.
3.4 You are responsible for determining whether, in respect of the year, the company meets the
conditions for exemption from an audit essentially, it qualifies as a small company:
(a) its turnover in that year is not more than £5.6 million; and
(b) its balance sheet total for the year is not more than £2.8 million.
3.5 You are responsible for letting us know if anything should change which mean an audit is
needed, these changes include:
(a) a public company;
(b) an authorised insurance company, a banking company, an e‐money issuer, an ISD
investment firm or a UCITS management company;
(c) carrying on an insurance market activity;
(d) a special register body as defined in section 117(1) of the Trade Union and Labour Relations
(Consolidation) Act 1992 or an employers’ association as defined in section 122 of that Act;
(e) a member of a group that exceeded the group exemption limits or ineligible group
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Cranleys Standard terms of business and engagement 1 January 2010
3.6 You have undertaken to make available to us, as and when required, all the company’s
accounting records and related financial information, including minutes of management and
shareholders’ meetings, necessary to carry out our work. You will make full disclosure to us of all
relevant information.
3.7 You are responsible for ensuring that the company complies with laws and regulations
applicable to its activities, and for establishing arrangements designed to prevent any non‐
compliance with laws and regulations and to detect any that occur.
3.8 As individuals on personal tax affairs (if applicable)
3.9 You are responsible for ensuring the personal tax return is signed, dated and submitted by 31
January the following year.
3.10 Maintaining accounting accurate records and retaining these for six years after the tax return
year has been completed.
Our scope of work
4. Work we will do General
4.1 Accounts production ‐ state company name and year end at the sign off section
You have asked us to assist you in the preparation of the financial statements. We will
compile the annual financial statements for your approval based on the accounting records
maintained by you and the information and explanations given to us by you. We shall plan
our work on the basis that no report is required by statute or regulation for the year, unless
you inform us in writing to the contrary. In carrying out our engagement we will make
enquiries of management and undertake any procedures that we judge appropriate but are
under no obligation to perform procedures that may be required for assurance
engagements, such as audits or reviews.
4.2 Our work will not be an audit of the financial statements in accordance with Auditing Standards.
Accordingly, we will not obtain any evidence relating to entries in the accounting records, or to
the financial statements or to the disclosures in the financial statements. Nor will we make any
assessment of the estimates and judgments made by you in the preparation of the financial
statements. Consequently our work will not provide any assurance that the accounting records
or the financial statements are free from material misstatement, whether caused by fraud, or
other irregularities or error. In addition, we have no responsibility to determine whether you
have maintained proper accounting records in accordance with the Companies Act and we will
not address this point unless you specifically request us in writing to do so.
4.3 Since we have not carried out an audit, nor confirmed in any way the accuracy or
reasonableness of the accounting records maintained by the company, we are unable to provide
any assurance as to whether the financial statements that we prepare from those records
present a true and fair view.
4.4 As part of our normal procedures when preparing the financial statements, we will attach an
accountant’s report to them. This report will state that they have been prepared from the books
and records of the company and from information supplied by the directors. This report should
not be filed with the financial statements at Companies House.
4.5 We have a professional responsibility not to allow our name to be associated with financial
statements that may be misleading. Therefore, although we are not required to search for such
matters, should we become aware, for any reason, that the financial statements may be
misleading, we will discuss the matter with you with a view to agreeing appropriate adjustments
and/or disclosures in the financial statements. In circumstances where adjustments and/or
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Cranleys Standard terms of business and engagement 1 January 2010
disclosures that we consider appropriate are not made or where we are not provided with
appropriate information, and as a result we consider that the financial statements are
misleading, we will withdraw from the engagement.
4.6 As part of our normal procedures we may request you to provide written confirmation of any
information or explanations given to us orally during the course of our work.
4.7 Whilst we do not express any opinion on the accounts we as a firm have a professional duty not
to be associated with any accounts that we believe to be misleading. If we cannot agree on a
presentation of a particular matter that we do not regard as misleading we will have no option
under the ethical guidelines of Institute of Chartered Accountants in England and Wales but to
resign as your accountants. In these circumstances you agree that we have a right to invoice you
for our time spent preparing and discussing the accounts with you and for time spent on any
other work that is not completed as a result of our resignation.
5. Accounting
5.1 You have asked us to prepare your financial statements for the year ended …………… and
subsequent years. It was agreed that we should carry out the following accounting support:
(a) write up the accounting records of the company insofar as they are incomplete when
presented to us;
(b) complete the postings to the nominal ledger; and
(c) prepare the accounts for approval by yourselves.
5.2 You have agreed that you or your staff will:
(a) maintain a record of the records of receipts and payments;
(b) reconcile the balances monthly with the bank statements;
(c) post and review balances the accounts payable/purchase and accounts receivable /sales
ledgers;
(d) extract a detailed list of ledger balances; and
(e) prepare details of stock and work‐in‐progress at the accounting date and make available
to us the documents and other information from which the statement is compiled.
5.3 You authorise us to submit accounts electronically to Companies House and HMRC as
appropriate.
6. Personal and corporation tax
6.1 This engagement will commence with the personal and company's tax return for the accounting
period for the same period as the above accounting period.
6.2 We will prepare from the accounts and other information and explanations provided by you the
company’s corporation tax return and computations, together with all supporting schedules
and, where necessary, amended returns.
6.3 We will send you the tax return and supporting schedules for you to approve and sign. We will
then submit it, with the accounts and computations, to the HM Revenue and Customs. You
authorise us to file the return electronically.
6.4 We will advise you of the amounts of corporation tax to be paid and the dates by which the
company should make the payments. Where appropriate we will initiate repayment claims
when tax has been overpaid.
6.5 We will advise as to possible claims and elections arising from the tax return and from
information supplied by you. Where instructed by you, we will make such claims and elections
in the form and manner required by the HM Revenue and Customs.
6.6 We will deal with all communications relating to the tax returns addressed to us by the HMRC or
passed to us by the company. However, if the HM Revenue choose your return for enquiry this
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Cranleys Standard terms of business and engagement 1 January 2010
work may need to be the subject of a separate assignment in which case we will seek further
instructions from you.
6.7 We will prepare the tax provisions and disclosures to be included in the company’s statutory
accounts.
6.8 We are able to offer fee protection to cover insurance the cost of our fees arising from HM
Revenue and Customs investigations. If you would like further details of this service please let us
know.
Dividends, payments under deduction of tax and to participators
6.9 We will complete, using information provided by you, return form CT61 regarding payments
made to and by the company under deduction of tax. We will send the form CT61 to you for
approval and signature and submission by you to the HM Revenue and Customs. We will advise
you of the amounts of income tax that are due, and the due date for payment and submission of
the form. You must inform us immediately if the company makes or receives any distributions,
or receives or pays any interest or similar amounts under deduction of tax.
6.10 Where the company has made a loan to a participator such as a shareholder, tax is payable. We
can be responsible for advising you of the tax payable only if you notify us of details of such
loans before the end of the relevant accounting period.
Personal service companies (IR35)
6.11 We will advise on whether the company is subject to the personal services legislation on a
contract by contract basis. You authorise us to seek an opinion from the HM Revenue and
Customs where we consider it appropriate. If there are contracts that we consider are within
the personal services legislation we will calculate the deemed salary, prepare the corporation
tax computations using the prescribed method, prepare and submit the supplementary P35 and
P14 and advise you how much tax and national insurance to pay and by when and whether to
pay any actual salary before the year end and if so how much.
Your Responsibilities: Provision of Information by You
6.12 The company is legally responsible for making correct returns by the due date and for payment
of tax on time. Failure to meet the deadlines may result in automatic penalties and/or interest.
To enable us to carry out our work you agree:
6.13 that all returns are to be made on the basis of full disclosure of all sources of income, charges,
allowances and capital transactions;
6.14 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;
6.15 that we can approach such third parties as may be appropriate for information that we consider
necessary to deal with the company’s affairs;
6.16 to provide us with information in sufficient time for the company's tax returns to be completed
and submitted by the due date of a year following the accounting period following the end of
the accounting period. In order that we can do this, we need to receive all relevant information
within 6 months of the year end;
6.17 to forward to us on receipt copies of notices of assessment, letters and other communications
received from the HM Revenue and Customs to enable us to deal with them as may be
necessary within the statutory time limits; and
6.18 to keep us informed about significant transactions or changes in circumstances.
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Cranleys Standard terms of business and engagement 1 January 2010
6.19 that we may use third parties to process the information for your tax return where we consider
that this is necessary in order to provide you with the desired level of service. All our third party
service providers have been checked to ensure that they have appropriate systems in place to
safeguard the confidentiality and security of your data and records.
6.20 We will be pleased to assist the company generally in tax matters including VAT if you advise us
in good time of any proposed transactions and request advice. We would, however, warn you
that because tax rules change frequently you must ask us to review any advice already given if a
transaction is delayed, or if an apparently similar transaction is to be undertaken.
6.21 It is our policy to confirm in writing advice upon which the company may wish to rely.
7. Payroll and year end returns
7.1 We will maintain your payroll records, supply you with completed monthly salary pay slips for
you to pass to employees with their wages/salary cheques which you will draw, supply you with
a completed HM Revenue and Customs pay slip for the PAYE and national insurance
contributions for you to send to the Collector of Taxes with a cheque which you will draw,
complete your year end return form P35 with forms P14 and P60 and supply you with the
completed form P35 for signature and submission by you to the HM Revenue and Customs with
forms P14 and the forms P60 that you will pass to each employee
7.2 In order to do this we need to comply with the Employer’s Guide to PAYE: we will consider with
you the detailed information that is required and the form in which it is to be provided.
7.3 Sections 11 and 12 of the Data Protection Act 1998 place express obligations on you as a data
controller where we as a data processor undertake the processing of personal data on your
behalf. We therefore confirm that we will at all times comply with the requirements of the Data
Protection Act 1998 when processing data on your behalf. In particular we confirm that we have
adequate security measures in place and that we will comply with any obligations equivalent to
those placed on you as a data controller.
7.4 You will be responsible for completing the checks on a new employee’s eligibility to live and
work in the UK in accordance with the Government’s Code of Practice “Preventing Illegal
Working” and section 8 of the Asylum and Immigration Act 1996.
P11D benefits for directors and higher paid employees
7.5 We will complete forms P11D for the directors and higher‐paid employees for approval and
submission by you to the HM Revenue and Customs. You will supply the form P11D information
to your employees by the due date. We will also provide P11D dispensations where possible.
7.6 You agree to supply us with complete and accurate details of all benefits and expenses for the
tax year (not the accounts year) within 14 days of the end of the tax year.
Subcontractors
7.7 We will operate the sub‐contractors’ tax deduction scheme for the sub‐contractors you use. In
order for us to do this, we need to comply with the Employer's Guide to PAYE: we will discuss
with you the information that is required and the form in which it is to be provided.
Should you not provide us with payroll information within 30 days of this letter or when it
becomes payable by the company:
7.8 You have not asked us to become involved in your any part of your PAYE system. However, we
can offer advice on the operation of all aspects of wages and PAYE, should you so require.
7.9 We will be pleased to advise on any other taxation matters referred to us.
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Cranleys Standard terms of business and engagement 1 January 2010
8. Value added tax (VAT)
8.1 You have asked us to undertake the completion of your VAT returns commencing with the
return period following this signing. We cannot be held responsible for any penalties or default
surcharges arising from the late submission of VAT returns. However, we will endeavour to meet
the relevant deadlines if we receive all the company’s VAT records within 14 days of the end of
the VAT return period. You have undertaken that you/your staff will ensure that:
(a) all relevant VAT records are provided to us less than 14 days of end of the VAT period;
(b) valid VAT invoices are received for all payments where VAT is being reclaimed;
(c) the VAT rating of supplies is correctly dealt with, i.e., zero rates and exempt supplies;
(d) we are notified in writing of any positive‐rated own consumption;
(e) any input VAT on non‐business expenditure is clearly marked on supporting invoices;
(f) we are notified each quarter of any payments to or for the benefit of directors or staff;
(g) all supplies made by the business are shown in the records made available to us.
If you decide to not provide us with the VAT information we will assume:
8.2 You or your staff will be responsible for completing and submitting VAT returns. 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.
We will, however, ensure that the sales figure in your accounts is reconciled to your VAT returns
submitted, provided you:
8.3 (a) let us have copies of all returns submitted; or,
8.4 (b) complete our VAT return form which we will forward to you on request.
8.5 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.
Should you not current be registered:
8.6 If at the time of signing these terms you are not VAT registered. If registration becomes
necessary, we will endeavor to ensure that you register in time provided that:
(a) you notify us in writing within 14 days of the end of each month of the total value of
supplies you have made in that month; and
(b) you notify us immediately in writing if the value of taxable supplies that you will make in
the next 30 days is likely to exceed the annual registration limit (currently £68,000) then in force.
9. Company secretarial
9.1 A private company is required to file its accounts at Companies House within 9 months of the
year end. The company will be liable to a fine if it fails to do so. In order to avoid this we will
produce statutory accounts, suitable for filing, within the required period, provided all your
records are complete and presented to us within five months of the year end, and all
subsequent queries are promptly and satisfactorily answered.
9.2 We have agreed to act as your agent and to:
(a) submit the accounts to the Registrar of Companies;
(b) complete and submit the company’s annual return;
(c) complete and submit any other forms required by law to be filed at Companies House,
provided that you keep us fully informed of any relevant changes or events which are
required to be notified to Companies House, within one week of the change or event;
and
(d) maintain the statutory books.
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Cranleys Standard terms of business and engagement 1 January 2010
9.3 If we do not have the information prior to 30 days before the 9 months filing for the accounts or
decide to use an alternative address to our office you have agreed to complete and submit all
the returns required by law, for example, the annual return and the notification of changes in
directors. We shall, of course, be pleased to advise you on these and any other company
secretarial matters if requested.
10. Other services
10.1 We have also agreed to offer a proactive business support assistance.
10.2 However, there are many other areas where we can be of assistance and we shall be pleased to
discuss any matters with you. These other services include:
(a) reports in support of returns or claims, e.g., insurance certificates, government claims;
(b) advice on financial matters;
(c) management accounting, including such matters as cash flow statements;
(d) advice on the selection and implementation of computer systems;
(e) investigations for special purposes, e.g., acquisitions of other businesses; and
(f) advice on the selection and recruitment of staff.
10.3 We advise you to review our website on www.cranleys.co.uk for more information regarding
our firm.
11. Hours of business
11.1 The normal office hours of Winton House are between 9.00 a.m. and 6.00 p.m. on weekdays.
11.2 Hours of lunchtime are 1pm – 2pm however we will aim to have telephone answering support.
11.3 During weekends and evenings support is only available provided booked in advance.
12. People responsible
12.1 The tasks involved in your work may involve a combination of people. We will try to avoid
changing the people who handle your work but if this cannot be avoided, we will tell you
promptly of any change and why it may be necessary.
12.2 The person responsible for the overall supervision of your work is Colin Davison who is a partner
in this firm.
13. Professional obligations
13.1 We will observe the Bye‐laws, regulations and ethical guidelines of The Institute of Chartered
Accountants in England and Wales and accept instructions to act for you on the basis that we
will act in accordance with those guidelines. Copies of these requirements are available for
inspection in our offices.
13.2 Where you give us confidential information we shall at all times keep it confidential, except as
required by law or as provided for in regulatory, ethical or other professional pronouncements
applicable to this engagement.
13.3 We reserve the right to act during this engagement for other clients whose interests may be
adverse to yours. We will notify you immediately should we become aware of any conflict of
interest to which we are subject in relation to you.
14. Investment services
14.1 We are authorised by the Institute of Chartered Accountants to carry out investment to conduct
Investment Business. If however, you favour personal pension or investment planning advice, as
opposed to investments in business ventures, we will refer you to an independent financial
advisor or firm authorised by the Financial Services Authority.
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Cranleys Standard terms of business and engagement 1 January 2010
15. Commissions or other benefits
15.1 Commissions or other benefits may sometimes become payable to us in respect of introductions
to other professionals or transactions we arrange for you, in which case you will be notified in
writing of the amount, the terms of payment and receipt of any such commissions or benefits.
You consent to such commissions or other benefits being retained by us without our being liable
to account to you for any such amounts.
16. Client monies
16.1 We may, from time to time, hold money on your behalf. Such money will be held in trust in a
client bank account, which is segregated from the firm’s funds. The account will be operated,
and all funds dealt with, in accordance with the Clients’ Standard terms of business Money
Regulations of The Institute of Chartered Accountants in England and Wales.
16.2 In order to avoid an excessive amount of administration, interest will only be paid to you where
the amount of interest that would be earned on the balances held on your behalf in any
calendar year exceeds £25. Any such interest would be calculated using the prevailing rate
applied by Abbey for small deposits subject to the minimum period of notice for withdrawals.
Subject to any tax legislation, interest will be paid gross.
16.3 If the total sum of money held on your behalf exceeds £10,000 for a period of more than 30
days, or such sum is likely to be held for more than 30 days, then the money will be placed in a
separate interest‐bearing client bank account designated to you.
16.4 All interest earned on such money will be paid to you. Subject to any tax legislation, interest will
be paid gross.
16.5 We are required under the client money regulations to appoint an alternate to administer the
client bank account in the event of the death or incapacity of the principal. The alternate
appointed is Richard Johnston.
17. Fees
17.1 Our fees are computed on one of three ways:
fixed; for the activity we would normally have complete control on an activity (18.8)
time spent; by the principals and our staff and sub‐contractors or consultants, and on the levels
of skill and responsibility involved. Disbursements represent travel, accommodation and other
expenses incurred in dealing with your affairs. (18.9)
monthly retainer which is based on our normal fees, reduced by around 20% to reflect the fact it
is paid monthly. (18.10)
17.2 Ad hoc requirements where the total project is anticipated to cost more than £150 (such as a tax
plan or business plan), we will ask for 35% of the planned fee in advance of the exercise, 35%
within two weeks after commencing the project and the balance must be paid on completion.
17.3 Monthly retainers are not refunded even if no work is carried out at the time of disengaging our
services to reflect the set up administration and advice required on setting up.
17.4 Monthly retainers are paid to commence from the company period to which they relate. 12
months payments should be made by the end of the year end.
17.5 Should monthly retainers not be paid up to date despite intending to pay in this way you will
revert to being charged on an hourly rate or standard charges for each activity
17.6 Fees paid on a variable time based approach will include meetings with you and perhaps others,
reading and working on papers, correspondence, preparation of any detailed costs calculations,
and time spent travelling away from the office when this is necessary.
17.7 We will add VAT to these at the rate that applies when the work is done. At present, 17.5%.
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Cranleys Standard terms of business and engagement 1 January 2010
17.8 Standard or fixed fees will cover:
Small company full and
abbreviated accounts £597
Personal tax return £197
Personal, property or business
accounts for sole trader £157
Company tax return £197
Annual return £67
Payroll, per week or month £15 for up to 5 employees, £3 thereafter, £5 per rerun
End of year PAYE submissions £47
17.9 The current hourly rates are set out below.
Colin Davison £97 ‐ £127
Richard Johnston £87
VAT specialist £127 ‐£147
Other accounting and support £25 ‐£45
17.10 The monthly support packages cover the following:
Bronze – All the items listed in 18.9 except for no annual return
Fee ‐ £57 for turnover up to £100,000 or day rates of £400 or more; Fee ‐ £67, T/O above £100k
Silver ‐ £77 – All listed on 18.9 plus meetings support, see supporting fee options schedule.
Fee rises to £87/£97 for two personal returns or incomes above £100,000/ £150,000
Gold ‐ proactive support with quarterly calls or meetings
Fee ‐ £127pm incomes of up to £150,000 pa
Fee £147pm for income above £150,000. Bespoke level above £250,000
Platinum – full comprehensive support provided with monthly meetings
Fees ‐ £197pm for turnover to £25,000
Fees ‐ £247pm for turnover to £1M, Bespoke level above £1M.
17.11 These charge rates have to be reviewed periodically to reflect increases in staff costs, overhead
costs and inflation. Normally the rates are reviewed with effect from 1 January each year. If a
review is carried out before this matter has been concluded, we will inform you of any variation
in the rate before it takes effect.
17.12 In addition to the time spent, we may take into account a number of factors including any need
to carry out work outside our normal office hours, the rick and complexity of the issues, the
value the advice provides you with, the speed at which action has to be taken, any particularly
specialist expertise that the case may demand in particular, in tax planning, the amount of
potential tax saved recommending a particular course of action.
17.13 We may also propose a fee based on a conditional outcome. In such a situation we will always
propose a small administration fee of £100 ‐ £250 on accepting the work.
18. Payment terms
18.1 Invoices are payable in full (including disbursements) before the report is signed and the
financial statements are made available for filing.
18.2 In many cases we will look to provide an outline or estimate to the support and fees applicable.
These are both in the form of all inclusive packages to cover routine work and outline standard
fees based on ad hoc requests. We will look to provide an initial guide on these outlined in our
advice guide called “Fees options” and this is later confirmed by providing you with a standing
order mandate and determining what level of fees is applicable to your position.
18.3 Our terms relating to payment of amounts invoiced (fees and disbursements) and not covered
by standing orders, where appropriate, are strictly 30 days net. Interest and compensation for
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Cranleys Standard terms of business and engagement 1 January 2010
recovery costs will be charged on all overdue debts at the rate stated on the invoice, which is
currently 18% APR, or at the rate for the time being applicable under the Late Payment of
Commercial Debts (Interest) Act 1998, whichever is the higher. Settlement of fees by Paypal is
accepted subject to a fee of 3% on top of the payment.
18.4 Overdue balances by more than 180 days will automatically be taken to legal action unless effort
and agreement is reached to acceptable payment terms. Legal action will be recharged to you.
18.5 Should you have any outstanding fees, it is normal for us to delay starting further work even if
this should lead to statutory fines to prevent your debt with us becoming worse.
18.6 Payment details for payments should be made to Abbey: 09‐06‐66 Account number 43388970.
19. Information before deadlines
19.1 All information to assist us with the annual accounting and tax returns should provided within
six months of the year end or 5 April as appropriate to ensure we continue to deliver a quality
service. Should we receive papers after this date we place no guarantee on the ability to
effectively plan, prepare, review, draft for your review, monitor and control the administration
of annual work.
19.2 Should additional resources, for example in collecting information after our 6 month period we
reserve the right to charge additional fees to cover costs and provide a suitable service for late
incoming information.
19.3 Specifically for information arriving in our office either by post, fax or email after 23 December
requiring work before the following 31 January will require a one off charge of £27.
20. Retention of and access to records
20.1 During the course of our work we will collect information from you and others acting on your
behalf and will return any original documents to you following the preparation of your financial
statements and returns. You should retain these records for at least seven years from the end of
the accounting year to which they relate.
20.2 Whilst certain documents may legally belong to you, we intend to destroy correspondence and
other papers that we store which are more than one year, other than documents which we
consider to be of continuing significance. If you require retention of any document you must
notify us of that fact in writing within three months of approving the accounts.
20.3 Best efforts must be made to collect or accept the records back within one month
of the accounts being approved and outstanding invoices paid for.
21. Quality control
21.1 As part of our ongoing commitment to providing a quality service, our files are periodically
subject to an independent regulatory or quality review. Our reviewers are highly experienced
and professional people and are, of course, bound by the same requirements of confidentiality
as our principals and staff.
22. Help us to give you the right service
22.1 If at any time you would like to discuss with us how our service to you could be improved, or if
you are dissatisfied with the service you are receiving, please let us know, by telephoning Colin
Davison.
22.2 We undertake to look into any complaint carefully and promptly and to do all we can to explain
the position to you. If you feel that we have given you a less than satisfactory service, we
undertake to do everything reasonable to address your concerns. If you are still not satisfied,
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Cranleys Standard terms of business and engagement 1 January 2010
you may of course take up matters with The Institute of Chartered Accountants in England and
Wales.
22.3 In order for us to provide you with a high quality service on an ongoing basis it is essential that
you provide us with relevant records and information when requested, reply to correspondence
in a timely manner and otherwise follow the terms of the agreement between us set out in this
Standard Terms of Business and Engagement.
22.4 We reserve the right to cancel the engagement between us with immediate effect in the event
of: your insolvency, bankruptcy or other arrangement being reached with creditors; failure to
pay our fees by the due dates; either party being in breach of their obligations where this is not
corrected within 30 days of being asked to do so.
22.5 In addition this agreement may be terminated for any reason if 90 days notice is given.
23. Applicable law
23.1 This engagement letter is governed by, and construed in accordance with, English law. The
Courts of England will have exclusive jurisdiction in relation to any claim, dispute or difference
concerning this engagement letter and any matter arising from it. Each party irrevocably waives
any right it may have 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.
23.2 If any provision in this standard terms of business and engagement any associated engagement
letter, or its application, are found to be invalid, illegal or otherwise unenforceable in any
respect, the validity, legality or enforceability of any other provisions shall not in any way be
affected or impaired.
24. Internet communication
24.1 Internet communications are capable of data corruption and therefore we do not accept any
responsibility for changes made to such communications after their dispatch. It may therefore
be inappropriate to rely on advice contained in an e‐mail without obtaining written confirmation
of it.
24.2 We do not accept responsibility for any errors or problems that may arise through the use of
internet communication and all risks connected with sending commercially sensitive information
relating to your business are borne by you. If you do not agree to accept this risk, you should
notify us in writing that e‐mail is not an acceptable means of communication.
24.3 It is the responsibility of the recipient to carry out a virus check on any attachments received.
24.4 Should you not get a reply to email communications within 48 hours please call as frequently
emails can be lost.
25. Data Protection Act 1998
25.1 We may obtain, use, process and disclose personal data about you in order that we may
discharge the services agreed under this engagement letter, and for other related purposes
including updating and enhancing client records, analysis for management purposes and
statutory returns, crime prevention and legal and regulatory compliance. You have a right of
access, under data protection legislation, to the personal data that we hold about you. We
confirm that when processing data on your behalf we will comply with the provisions of the Data
Protection Act 1998.
25.2 For the purposes of the Data Protection Act 1998, the Data Controller in relation to personal
data supplied about you is Colin Davison.
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Cranleys Standard terms of business and engagement 1 January 2010
26. Contracts (Rights of Third Parties) Act 1999
26.1 Persons who are not party to this agreement shall have no rights under the Contracts (Rights of
Third Parties) Act 1999 to enforce any term of this agreement. This clause does not affect any
right or remedy of any person which exists or is available otherwise than pursuant to that Act.
26.2 The advice that we give to you is for your sole use and does not constitute advice to any third
party to whom you may communicate it. We accept no responsibility to third parties for any
aspect of our professional services or work that is made available to them.
27. Money laundering
27.1 In common with all accountancy and legal practices the firm is required by the Proceeds of
Crime Act 2002 and the Money Laundering Regulations 2003 to:
• Maintain identification procedures for all new clients;
• Maintain records of identification evidence obtained; and
• Report, in accordance with the relevant legislation and regulations.
27.2 We have a duty under s. 330 of the Proceeds of Crime Act 2002 to report to the Serious
Organised Crime Agency (SOCA) if we know, or have reasonable cause to suspect, that you, or
anyone connected with your business, are or have been involved in money laundering. Failure
on our part to make a report where we have knowledge or reasonable grounds for suspicion
would constitute a criminal offence.
27.3 The offence of money laundering is defined by s. 340(11) of the Proceeds of Crime Act and
includes concealing, converting, using or possessing the benefits of any activity that constitutes
a criminal offence in the UK. It also includes involvement in any arrangement that facilitates the
acquisition, retention, use or control of such a benefit.
27.4 This definition is very wide and would include such crimes as:
• deliberate tax evasion;
• deliberate failure to inform the tax authorities of known underpayments or excessive
repayments;
• fraudulent claiming of benefits or grants; or
• obtaining a contract through bribery.
Clearly this list is by no means exhaustive.
27.5 We are obliged by law to report any instances of money laundering to SOCA without your
knowledge or consent. In fact, we may commit the criminal offence of tipping off under s. 333 of
the Proceeds of Crime Act if we were to inform you that a report had been made. In
consequence, neither the firms' principals nor staff may enter into any correspondence or
discussions with you regarding such matters.
27.6 We are not required to undertake work for the sole purpose of identifying suspicions of money
laundering. We shall fulfill our obligations under the Proceeds of Crime Act 2002 in accordance
with the guidance published by The Institute of Chartered Accountants in England and Wales.
28. Limitation of liability
28.1 We will provide our professional services with reasonable care and skill. However, we will not be
held responsible for any losses arising from the supply by you or others of incorrect or
incomplete information, or your or others’ failure to supply any appropriate information or your
failure to act on our advice or respond promptly to communications from us or other relevant
authorities.
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Cranleys Standard terms of business and engagement 1 January 2010
28.2 You agree to hold harmless and indemnify us against any misrepresentation, whether
intentional or unintentional, supplied to us orally or in writing in connection with this
agreement. You have agreed that you will not bring any claim in connection with services
provided to you by the firm against any of our employees on a personal basis.
28.3 Our liability to any professional indemnity claim is limited to a maximum of £10,000 or 10 times
the annual fees set unless a lower maximum is set in a supporting letter of engagement. Where
your retain Cranleys for specific advice only, liability is capped at 10 times the fee paid net of
VAT.
28.4 Any advice sought which is later questioned should be discussed in detail before a course of
action is followed in order so we can limit any damages. Failure to do so will reduce our ability to
provide further advice and limit the impact of the damages.
Acceptance of Terms and conditions of business dated 1 January 2010
Unless otherwise agreed, and subject to the application of the current hourly rates, these Terms of
Business shall apply to any future instructions given by you to this firm. Although your continuing
instructions in this matter will amount to an acceptance of these Terms and Conditions of Business, it
may not be possible for us to start work on your behalf until one copy of them has been returned to us.
I confirm I have read and understood, and I accept, these Terms and Conditions of Business and
engagement with Cranleys.
Signed: _______________________________________
Print name: ____________________________________
Organisation name: _____________________________(where appropriate)
Year end to commence our work: __________________
Fee basis (retainer package/fixed fee/time, see para 18) ___________________________
Address: _____________________________
____________________________________
____________________________________
____________________________________
Dated: ______________________________
A separate copy of these terms of business should be signed for each individual,
company, trust or partnership we act for. (THIS PAGE CAN BE SCANNED AND EMAILED)
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