Scope of Services

We have listed below the work which you have instructed us to carry out, the detail of which is contained in the attached schedule. This states your and our responsibilities in relation to the work to be carried out. Only the services which are listed in the attached schedules are included within the scope of our instructions. If there are other services that you wish us to carry out which are not listed in the schedule, please let us know and we will discuss with you whether they can be included in the scope of our work. If we agree to carry out additional services for you, we will provide you with a new or amended engagement letter and schedules.

Service Details & Description

Sunstone Accounting will be responsible for providing the services detailed below:

1. Producing Annual Management Accounts.
2. Producing Annual Company Accounts (Financial Statements).
3. Producing Annual Company Corporation Tax Return(s).
4. Completing Annual Company Confirmation Statement.
5. Monthly Payroll Solution – up to 5 employees.
6. Updating The Pensions Regulator (TPR).
7. Monthly C.I.S. Solution (if applicable).
8. Using Sunstone Accounting as Company Registered Office Address.
9. Using Sunstone Accounting as Company Correspondence Address.
10. Self-Assessment Tax Return (SA100) for company director.
11. Providing ongoing advice and guidance.

The Service Role includes maintaining accurate, well organised and up to date Sage Accounting and paper records in line with our Accounting Procedures policy.

• Annual Management Accounts
• Supplier Payments and Expenses (Purchases Ledger)
• Customer Invoicing & Receipting (Sales Ledger)
• Bank Reconciliation & Key Accounts
• Closing Creditors
• Closing Debtors
• Fixed Assets
• Profit & Loss

Producing Annual Company Accounts (Financial Statements)

• Submitting the Accounts to Companies House

Producing Annual Company Corporation Tax Return(s)

Completing Annual Company Confirmation Statement

• Confirmation Statement

Monthly Payroll Solution – Up to 5 Employees

Updating The Pensions Regulator (TPR)

Monthly C.I.S. Solution (if applicable)

Company Registered Office and Correspondence Address

• Using Sunstone Accounting as Company Correspondence Address for duration of service

Self-Assessment Tax Return (SA100) for Company Director

• Tax Returns (SA100)

Providing Ongoing Advice & Guidance

Limitation of Liability

We will provide services as outlined in this letter with reasonable care and skill. Our liability to you is limited to losses, damages, costs and expenses caused by our negligence or wilful default. However, to the fullest extent permitted by law, we will not be responsible for any losses, [penalties, surcharges, interest or additional tax liabilities] if you or others supply incorrect or incomplete information or fail to supply any appropriate information or if you fail to act on our advice or respond promptly to communications from us [or the tax authorities].

You will not hold us, [our] [principal][s] [director][s] [and staff], responsible, to the fullest extent permitted by law, for any loss suffered by you arising from any misrepresentation (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 we provide to you against any of our partners or employees personally.

Unless there is a legal or regulatory requirement to do so, our work is not to be made available to third parties without our written permission and we will accept no responsibility to third parties for any aspect of our professional services or work that is made available to them.

Communicating With You

We will communicate with Leanne Smith in relation to your accounting and tax affairs, having agreed with you.

Data Protection

We are committed to ensuring the protection of the privacy and security of any personal data which we process. Your attention is drawn to clause [7] of the attached terms of business which details how we treat personal data received by us in the provision of our services during our engagement with you. By signing this letter, you confirm that you have read and understood clause [7] and any privacy notice referred to therein.

Terms & Conditions

Period, Frequency and Disclosures

• These services and Solutions are offered as a Service Agreement Contract for Services and as a one-year contract in the first instance.
• The contract is reviewed and automatically renewed annually.
• Failure to renew the contract will entitle Sunstone Accounting to charge its standard rates and fees for any further services provided.
• The Standard Terms & Conditions of Business for Sunstone Accounting apply to this contract and also to the services provided as a result of this contract. Sunstone Accounting can provide you with a copy of our Standard Terms & Conditions of Business if you do not have a copy.
• The renewal date for the contract is on the anniversary of the Service Agreement contract start date.
• Professional Fee Protection Insurance is not mandatory for all new and existing Fixed Fee Contracts such as this Small Solution.
• Sunstone Accounting has the “Right to Rectify” any possible, perceived or actual errors and mistakes before this Service Agreement can be terminated.
• As part of our normal procedures, we may request that you provide written confirmation of any oral information, explanations or instructions given to us during the course of our work.
• Under Anti-Money Laundering Legislation (AML), we have identification procedures in place to identify our clients. These procedures must be satisfied before we can commence working for you. To satisfy our AML responsibilities Sunstone Accounting may conduct an electronic check to confirm your identity. This electronic check will solely be used for anti-money laundering purposes. The report will be recorded as a ‘soft touch’ on your credit file but that will not affect your credit score. The identity report will be held for the duration of the engagement and for five years thereafter and then destroyed in accordance with the provisions of the Data Protection Act.
• Please note that we have arrangements in place for an alternate to deal with matters in the event of permanent incapacity or illness. This provides protection to you in the event that Sunstone Accounting cannot act on your behalf. In signing this contract, you agree to the alternate having access to all of the information we hold in order to make initial contact with you and agree the work to be undertaken during our incapacity. You can choose to appoint another agent at that stage if you wish.

Your Responsibilities

• You are legally responsible for:
  • ensuring that the CTSA Return (including iXBRL tags and the iXBRL file) is correct and complete.
  • filing any returns by the due date; and
  • paying tax on time.
  • Ensuring that your Payroll and Pensions records are correct and complete; and
  • Making payment of Pension Contributions on time.
  • Retaining all records required by law.
  • Paying PAYE to HMRC on time.
• Failure to do this may lead to penalties and / or interest being charged by HMRC.
• Legal responsibility for approval of the return cannot be delegated to others.
• To enable us to carry out our work, you agree:
  • to provide us with approved accounts for the company. It is the responsibility of the directors collectively to produce accounts which give a true and fair view and we can only provide tagging services where the accounts have been prepared on this basis.
  • that all returns are to be made on the basis of full disclosure of all sources of income, charges, allowances and capital transactions.
  • 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.
  • 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.
  • to provide us with information in sufficient time for the company’s CTSA return to be completed and submitted by the filing deadline date in order that we can do this, we need to receive all relevant information by three months after the company Year End Date.
  • to provide information on matters affecting the company’s tax liability for the accounting period in respect of which instalments are due at least four weeks before the due date of each instalment. This information should include details of trading profits and other taxable activities up to the date the information is provided, together with estimates to the end of the accounting period.
  • 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.
• You 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.
• Where you wish us to deal with HMRC communications you will forward to us all communications received from HMRC such as HMRC statements of account, copies of notices of assessment and letters. These must be provided in time to enable us to deal with them as may be necessary within the statutory time limits. It is essential that you let us have copies of any correspondence received because HMRC is not obliged to send us copies of all communications issued to you.
• 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.
• You are responsible for monitoring the monthly turnover to establish whether the company is liable to register for VAT, if it is not already registered. If you do not understand what you need to do, please ask us. There may be VAT registration or deregistration requirements.

Fees & Payment

Fees are calculated based on the work to be done and agreed with you in advance. We will notify you if it appears that the agreed fee will be exceeded and discuss how to proceed.

Termination

Either party may terminate this agreement by giving notice in writing. Any fees due to us for work completed to the date of termination will be payable.