Engagement Letter Template for Annual Accounts & Corporation Tax Return

• Select suitable accounting policies and then apply them consistently.
• Make judgements and estimates that are reasonable and prudent.
• Prepare the accounts on the going concern basis unless it is not appropriate to presume that the company will continue in business.

Corporation tax return and iXBRL tags

• ensuring that the corporation tax return (including tax computation, any other attached or enclosed information, XBRL tags and iXBRL file) is correct and complete;
• filing any returns by the due date; and
• paying tax on time.

• 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. Where the accounts are not supplied in a format that is compatible with our iXBRL software we will convert the figures, which may be subject to an additional fee. This will be discussed and agreed with you in advance.
• 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 corporation tax self-assessment (CTSA) return to be completed and submitted by the due date following the end of the tax year. In order that we can do this, we need to receive all relevant information by at least three months before the due date. Where feasible, we may agree to complete your return within a shorter period but may charge an additional fee for so doing
• 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.

Our responsibilities

Unaudited Company Accounts

Corporation tax return and iXBRL tags

Form of the accountants’ report

Excluded, ad hoc and advisory work

• advising on ad hoc transactions and queries (including telephone conversations), preparing and submitting information in the relevant format to HMRC and calculating any related tax liabilities;
• advising on double tax relief if appropriate;
• advising you when corporation tax is due on loans by the company to directors or shareholders or their associates, and calculating the payments due or the amount repayable when the loans are repaid;
• advising you on and preparing enhanced expenditure claims and reliefs, including those relating to research and development;
• advising you on and preparing detailed capital allowance claims relating to buildings and renovation, including the analysis of expenditure;
• dealing with any enquiry opened into the company’s tax return or tax affairs by HMRC; and
• preparing any amended returns that may be required and corresponding with HMRC as necessary.

Changes in the law, in practice or in public policy

Limitation of liability