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Provided by OpenGlobal E-commerce

0115 856 1492

[email protected]

  
  
  

Terms of Engagement

1.We will prepare your UK payroll for each payroll period to meet UK employment tax requirements, specifically:

  • Calculating the pay as you earn (PAYE) deductions;
  • Calculating the employees’ National Insurance Contributions (NIC) deductions;
  • Calculating the employer’s NIC liabilities;
  • Calculating statutory payments, for example, Statutory Sick Pay and/or Statutory Maternity Pay;
  • Calculating other statutory and non-statutory deductions; and
  • Submitting information online to HMRC under RTI for PAYE.

2. We will prepare and send to you the following documents before the time of payment through the payroll or due date for delivering information to HMRC: 

  • Payroll summary report showing the reconciliation from gross to net for each employee and all relevant payroll totals; [The data included within each] Full Payment Submission (FPS) for taxable pay and payrolled benefits for each employee; 
  • A payslip for each employee unless not required;
  • A P45 for each leaver; and
  • A report showing your PAYE and NIC liability and due date for payment.

3. We will submit FPSs online to HMRC after the data to be included therein has been approved by you. (FPSs must reach HMRC normally on or before payday.)

4. We will prepare, where appropriate (for example, to recover statutory payments, claim deductions under the NIC holiday scheme or CIS deductions, confirm that no payments were made to employees), for each tax month, an EPS from the information and explanations that you provide to us. 
5. We will submit EPSs to HMRC after the data to be included therein has been approved by you. (EPSs must reach HMRC by the 19th of the month following the tax month to which they relate.)

6. At the end of the payroll year we will:

  • Prepare the final FPS (or EPS) including employer annual declarations and submit this to HMRC after the data to be included therein has been approved by you. (The final FPS (or EPS) for the year must reach HMRC by 19 April following the end of the tax year.)
  • Prepare and send to you by the statutory due date Form P60 for each employee on the payroll at the year end.
7. We will deal with any online secure messages sent to us by HMRC in respect of your payroll; and 
8. We will submit National Insurance Number (NINO) verification requests as appropriate to verify or obtain a NINO for a new employee.

Ad hoc and advisory work

9. Where you have instructed us to do so, we will also provide such other taxation ad hoc and advisory services as may be agreed between us from time to time. These may be the subject of a separate engagement letter, at our option. Where appropriate we will discuss and agree an additional fee for such work when it is commissioned by you. Examples of such work include:

  • Dealing with any compliance check or enquiry by HMRC into the payroll returns;
  • Preparing any amended returns for periods before you report in real time, which may be required, and corresponding with HMRC as necessary;
  • Preparing and submitting correcting EPSs for earlier years;
  • Preparing and submitting an Earlier Year Update (EYU) to correct, after 19 April, any of the year to date totals submitted in your end of year FPS for a previous tax year, in respect of years after you started to send information in real time. Where specialist advice is required on occasions we may need to seek this from or refer you to appropriate specialists. 

Changes in the law

10. We will not accept responsibility if you act on advice given by us on an earlier occasion without first confirming with us that the advice is still valid in the light of any change in the law or your circumstances.

11. We will accept no liability for losses arising from changes in the law or the interpretation thereof that are first published after the date on which the advice is given

Your responsibilities

12. You are legally responsible for: 
a) Ensuring that the data in your payroll submissions is correct and complete; 
b) Making any submissions by the due date; and 
c) Making payment of tax and NIC on time. 
Failure to do this may lead to automatic penalties, surcharges and/or interest.  

Employers cannot delegate this legal responsibility to others. You agree to check that submissions that we have prepared for you are correct and complete before you approve them.To enable us to carry out our work you agree: 

a) That all information required to be delivered online is submitted on the basis of full disclosure; 
b) To provide full information necessary for dealing with your payroll 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 agree with us the name[s] of the person[s] authorised by you to notify us of changes in employees and in rates of pay. We will process the changes only if notified by that/those individual[s]; 
d) To advise us in writing of changes of payroll pay dates; 
e) To notify us at least 5 working days [or such other period as agreed with us] prior to the payroll pay date of all transactions or events which may need to be reflected in the payroll for the period, including details of:

  • all new employees (including full names, address, date of birth, national insurance number, passport number) and details of their remuneration packages;
  • all leavers, including deaths of employees, and details of termination arrangements;
  • all changes to remuneration packages;
  • all pension scheme changes;
  • any changes to the employees’ bank accounts;
  • irregular and/or ad hoc payments and the dates to be paid;
  • EAS, if required by HMRC, at least 5 working days before the due date as agreed with HMRC;
  • in-year FPS by at least 5 working days prior to payroll pay dates so that they can be submitted on or before payday, or as agreed with us;
  • in-year EPS by at least 5 days prior to 19th of the month following the tax month; 
  • final FPS (or EPS when applicable) for the year at least [x] days prior to 19 April following the end of the tax year;
  • EYU within 5 days; and

g) To authorise us to approach such third parties as may be appropriate for information that we consider necessary to deal with your affairs. 

13. You will keep us informed of changes in circumstances that could affect the payroll. If you are unsure whether the change is material or not please let us know so that we can assess its significance.
14. If the information required to complete the payroll services set out above is received later than the dates specified above or agreed with us we will still endeavour to process the payroll and returns to meet the agreed payroll date and filing deadlines but we will not be liable for any costs or other losses arising if the payroll is late or the returns are filed late in these circumstances. We may charge an additional fee of £25.00 for work carries out in a shorter time period.

Duration of Engagement

We shall provide you with a quotation to undertake your payroll for the tax year to 5th April or for the part year to that date as appropriate. In or about February of each year we shall advise you of our fees for the forthcoming tax year and shall treat the engagement as continuing year-to-year until such time as you advise us otherwise.

You may give us notice of termination at any time during the tax year by providing one months notice in writing and we shall simply charge an appropriate proportion of the annual fee.

Fees

Our annual fees will be billed in installments at appropriate intervals (typically montly). All fees are due on presentation. We may terminate or suspend acting if payment of fees is unduly delayed.

We price our additional / optional services having regard to their value, including the time spent by us, the urgency of the work, and the levels of skill and responsibility involved.

We reserve the right to make additional charges where we are required to re-work the payroll as a result of errors in the information provided or where changes have been requested following the payroll run or preparation of Annual Returns or other forms or submissions. 

Tax disputes

Much tax and VAT law is uncertain in its impact. Differing views of the tax implications of the same transaction may tenably be held. Where we have made a claim for relief, or reached any other conclusion or made any decision or given any advice in the course of acting as your agent for tax purposes, and that claim, decision or advice was reasonably made or given having regard to the circumstances and information available at the time and the then prevailing treatment generally understood to be acceptable, we shall not be held liable for any additional tax, interest or penalties or other costs howsoever arising, which became payable as a result of an Inland Revenue enquiry or investigation or any other circumstance where the Revenue or any other party's view is found to prevail or is conceded.

Employee protection

It is an express term of this engagement that no liability to you is inferred or admitted by employees of the practice in respect of the duties carried out in the course of their employment and that you will not make or pursue any claim against any employees of the practice acknowledging that all rights and remedies for any wrongs lie against My Business Accountant and not against any Director or employee.

Professional indemnity cover and limitation of liability

We confirm that we hold Professional Indemnity cover in accordance with the requirements of the Association of Accounting Technicians, designed to ensure compensation is available to you in the event that you suffer loss or damage as a result of any negligent error by ourselves. However, our liability for any such claim for compensation is limited to the level of our Professional Indemnity cover from time to time in force. Details of the current level of cover are available to you at any time upon request.