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Engagement Letters: VAT Returns Terms

VAT Return: Your Responsibilities

(1) You agree to provide us with all the records relevant to the preparation of your VAT return as soon as possible after the return period ends.

You agree to provide us with all the records relevant to the preparation of your VAT return as soon as possible after the return period ends. We ordinarily require 10 days before the submission date to carry out our work. If the preparation or filing of your VAT return is delayed because the records are provided later than we require, or are otherwise incomplete or unclear, we accept no responsibility for any penalties that may be charged.

If some exception means that you are unable to provide records within the timeframe above, please contact us as soon as possible. If it is feasible we may agree to still carry out the work so as to allow the submission deadline to be met. Please be aware that we may charge an additional fee for doing rush work.

(2) You agree that all VAT returns are to be made on the basis of full disclosure.

You agree that all VAT returns are to be made on the basis of full disclosure.

You are responsible for ensuring that information you give us is, to the best of your knowledge, complete and accurate. The VAT returns we prepare are based on information you provide us with so we accept no responsibility for any VAT liabilities, penalties or interest that arises due to inaccuracies or omissions in information we are provided with.

You agree that we can approach third parties as may be appropriate for information we consider necessary to deal with the VAT returns.

(3) You are legally responsible for ensuring that your VAT returns are complete and correct.

Although we will submit the return online as your agent, you are legally responsible for ensuring that your VAT returns are complete and correct.

(4) You are legally responsible for filing any returns by the due date.

Although we will submit the return online as your agent, you are legally responsible for filing any returns by the due date.

(5) You are legally responsible for making payment of tax on time.

Although we will submit the return online as your agent, you are entirely legally responsible for making payment of tax on time. Failure to do this may lead to automatic penalties and interest.

You are entirely responsible for the payment of any VAT, including any interest or penalties. Since your VAT return is submitted online you are required to make payment by electronic means. We will advise you of the amounts due for payment, however it is your responsibility to arrange and make payment. Please note that penalties may apply where payments are not made by the due date.

(6) You agree to keep us fully informed of any changes in circumstances or communications received from HM Revenue and Customs relating to your VAT affairs.

You will keep us informed of any changes in circumstances that might affect the VAT liability of your business. If you are unsure whether a change would affect your VAT liability then we will be happy to advise you.

You agree to forward to us any communications related to VAT you receive from HM Revenue and Customs in time for us to deal with them as necessary within any time limits. Although HM Revenue and Customs have the authority to deal with us directly, it is still possible for them to contact you without us being aware.

You are responsible for bringing to our attention any errors, omissions or inaccuracies in your VAT returns you become aware of after they have been filed. We will then assist you to make a voluntary disclosure.

(7) You are responsible for determining whether your businesses required VAT registration.

If you are involved with any other business that is not VAT registered then you are responsible for monitoring its monthly turnover to determine whether or not you are liable to register it for VAT. If registration becomes necessary and you would like our assistance in this please do not hesitate to contact us. Please be aware that there are penalties for late registration.

(8) You are responsible for the collection of EC Sales List information from your customers.

If you have EC Sales Lists that need to be completed, you are responsible for obtaining the VAT registration numbers of all your customers in other member states. You are also responsible for checking with HM Revenue and Customs on any you are not completely satisfied with.

VAT Return: Our Responsibilities

(1) We will prepare your VAT returns.

We will prepare your VAT returns on the basis of the accounting records, information and explanations supplied by you.

(2) We will send you a VAT return summary for you to check and approve.

We will send you a VAT return summary for you to check and approve prior to us electronically submitting the return to HM Revenue and Customs. This will be carried on our electronic portal.

(3) You authorise us to file the return online only once we have received your approval of the figures.

You authorise us to file the return online once we have received your approval of the figures. When we submit the return online we are doing this on your behalf as your agent. Therefore we will not submit the return online until we have received your confirmation of having reviewed the entries to be made on the return, and that you consider the return to be complete, accurate and ready for online submission.

(4)  We will tell you how much VAT you should pay and when.

We will tell you how much VAT you should pay and when. We will advise you where VAT has been overpaid, and where possible take steps to initiate repayment. If VAT is to be paid late we will advise you on the interest and penalty implications.

(5) We will calculate your partial exemption annual adjustment.

If it is applicable to your business, we will calculate and advise you of the partial exemption annual adjustment.

(6) We will calculate and advise you of the annual Capital Goods Scheme adjustment.

If it is applicable to your business, we will calculate and advise you of the annual Capital Goods Scheme adjustment.

(7) We may provide other VAT ad-hoc advisory services.

We will also provide such other VAT ad hoc advisory services as may be agreed from time to time. These may be the subject of a separate engagement letter. We will discuss and agree our fee for such work when it is commissioned by you.

Where specialist advice is required in certain areas we may need to seek this from or refer you to appropriate specialists.

(8) We will not advise on aggressive tax schemes.

Since 17 July 2013 a General Anti-Abuse Rule has been in operation in the UK. This rule enables HM Revenue and Customs to further tackle abusive tax planning schemes. Due to the low probability of eventual success of such schemes and the high ethical standards of this firm, it is our policy not to advise on tax schemes that we consider to be artificial or aggressive in nature. Please let us know if you would like to discuss this matter further or if you feel that you are disadvantaged in any way by the firm’s policy on tax avoidance.

These ‘Engagement Letters: VAT Return Terms’ were updated in October 2019.

What Our Clients Say

Your advice and support has been invaluable throughout this crisis period. I really appreciate it.

Paul Davidson
Encore Machinery Limited

I have worked with Richard for about 8 years and I couldn’t be happier with the level of service and commitment to the success of our business shown by him and his team. Richard is forward thinking and their desire to ‘go beyond’ and combine the accounting work with an appetite to assist in the success of our business is extremely valuable. I look forward to what the next chapter brings.

Gary Duffy
Enfonic (UK) Limited and Enfonic Limited

The team has been great at helping us get to grips with our income, expenditure and future expectations. This has supported us make decisions about the strategic direction of the business. I would highly recommend ‘Accounting & beyond’.

Suellen Morris
Okasan Marketing

We met with Richard early on in our start-up journey and it’s been great working with him and the team.  They are really keen to know what we’re doing and where we’re going and that’s not just about the numbers. We’ve been working with them to define what’s the best way forward and how we can maximise our sales and grow. Looking forward to seeing what the next few months bring!

Sharon Haylock
The Grandparent Hub Ltd