1. Period of engagement
1.1 This engagement will commence with the partnership’s partnership tax return for the first period agreed between us, and will continue until terminated by either party.
1.2 We will not be responsible for earlier years. The partnership’s previous advisers will deal with outstanding returns, assessments and other matters relating to earlier periods and will agree the position with the tax authorities.
2. Our service to you
2.1 We will prepare the partnership’s tax return together with such supporting schedules as are appropriate.
2.2 We will send you the partnership’s tax return and supporting schedules for you to approve and sign. We will then submit the tax return to HMRC. You authorise us to file the return electronically.
2.3 We will deal with HMRC regarding any amendments required to the partnership’s return and prepare any amended returns which may be required.
2.4 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 HMRC.
2.5 We will deal with all communications relating to your return addressed to us by HMRC or passed to us by you. However, if HMRC choose your return for enquiry, this work may need to be the subject of a separate assignment, in which case we will seek further instructions from you.
3. Your responsibilities: provision of information by you
3.1 The members of the partnership are legally responsible for making correct returns by the due date. Failure to meet the deadlines may result in automatic penalties, surcharges and/or interest.
3.2 To enable us to carry out our work you agree:
(a) that all returns are to be made 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 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) that we can approach such third parties as may be appropriate for information that we consider necessary to deal with your affairs;
(d) to provide us with information in sufficient time for your tax return to be completed and submitted by 31 January following the end of the tax year. In order that we can do this, we need to receive all relevant information by no later than 31 October;
(e) to forward to us on receipt copies of all HMRC statements of account, PAYE coding notices, notices of assessment, letters and other communications received from HMRC to enable us to deal with them as may be necessary within the statutory time limits; and
(f) to keep us informed about significant changes in your circumstances if they are likely to affect your tax position.
4. Other services and general tax advice
4.1 We will be pleased to assist you generally in tax matters if you so require. To enable us to do this you will need to instruct us in good time.
4.2 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.
4.3 It is our policy to confirm in writing advice upon which you may wish to rely.
5. Excluded services
5.1 You will continue to deal with other matters required by law, such as:
- individual partners’ personal tax returns;
- Pay As You Earn including year-end returns and matters relating to your employees;
- forms P11D;
- obligations under IR35;
- returns for sub-contractors;
- VAT returns; and
- inheritance tax returns.
6. Retention of records
6.1 During the course of our tax work we will collect information from you and others acting on your behalf and will return any original documents to you following preparation of your return. You should retain them for seven years from the date following the end of the tax year. This period may be extended if HMRC enquire into your tax return.
6.2 Whilst certain documents may legally belong to you, we intend to destroy correspondence and other papers that we store which are more than seven years old, other than documents which we consider to be of continuing significance. You must tell us if you require retention of a particular document.