Corporation tax compliance services – Terms of engagement

Our services

1.       We will use appropriate software to apply iXBRL tags to items in the accounts as we consider appropriate for the purposes of submission of the accounts to HMRC.

2.       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.

3.       We will provide you with detailed information regarding the tagging applied for your approval.

4.       We will prepare the company’s corporate tax self-assessment (CTSA) return. After obtaining the approval and signature of an authorised nominated director, we will submit it to HM Revenue & Customs (HMRC).  We will not accept liability for any financial penalty or loss or other damage arising from any rejection of the iXBRL accounts by HMRC or otherwise as a result of incorrect or inappropriate tagging.

5.       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.

6.       We will tell you how much tax the company should pay and when.  If appropriate, we will initiate repayment claims when tax has been overpaid.  We will advise on the interest and penalty implications if corporation tax is paid late.

Your responsibilities

7.       The Directors, on behalf of the company, are legally responsible for:

(a)     Ensuring that the CTSA return (including tagging) is correct and complete;

(b)     Filing any returns by the due date; and

(c)     Making payment of tax on time.

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

           The signatory to the return cannot delegate this legal responsibility to others.  The signatory agrees to check that returns we have prepared for the company are complete before he/she approves and signs them.

8.       To enable us to carry out our work the Directors agree:

(a)     To provide us with approved accounts for the company.

(b)    That all returns are to be made on the basis of full disclosure of all sources of income, charges, allowances and capital transactions;

(c)     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;

(d)    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;

(e)     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;

(f)     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.

9.       The Directors 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.

10.     You will forward to us HMRC statements of account, copies of notices of assessment, letters and other communications received from HMRC in time to enable us to deal with them as may be necessary within the statutory time limits. Although HMRC have the authority to communicate with us when form 64-8 has been signed and submitted it is essential that you let us have copies of any correspondence received because HMRC are not obliged to  send us copies of all communications issued to you.

11.     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 will be set out in a separate letter of engagement.