Here is a detailed look at our process:
- For the purpose of the delivery of the company’s tax return, we will use commercial software to apply XBRL tags to items in the accounts as we consider appropriate for the purposes of submission, for tax purposes, of the accounts in iXBRL via the Government Gateway.
- We will, to the extent we consider necessary, manually amend or apply tags where the software has not applied automatic tagging or where we consider any automatic tagging to have been inappropriate.
- We will provide you with copies of the iXBRL information, which will show the tagging applied, for your approval.
- We will prepare the company’s corporate tax self-assessment (CTSA) return. After obtaining written evidence of the approval of the nominated director, we will submit it to HMRC.
- We will prepare the corporation tax computation & supporting schedules required for preparation of the company tax return from accounts, information & explanations provided to us on your behalf.
- We will tell you how much tax the company should pay & when. Where instructed by you, we will advise on the interest & penalty implications if corporation tax is paid late. Where taxable losses are involved, we will advise you of the options available &, where appropriate, we will initiate repayment claims.
- We will inform you if instalment payments of corporation tax are due for an accounting period & the dates they are payable. We will calculate the quarterly instalments that should be made on the basis of information supplied by you by the date agreed.
- We will advise you as to possible tax return-related claims & elections arising from information supplied by you. Where instructed by you, we will make such claims & elections in the form & manner required by HMRC.
Ad hoc queries by way of telephone & email enquiries are not routine compliance & may result in additional fees. As indicated below, where appropriate we will aim to discuss & agree additional fees but it may not always be possible to agree these in advance & we reserve the right to charge you an additional fee for these queries.
Where the nominated director has instructed us to do so we will provide such other taxation ad hoc & advisory services as may be agreed between us from time to time. These services will be subject to the terms in an engagement letter & standard terms & conditions of business unless we decide to issue a separate engagement letter. An additional fee may be charged for these services. Examples of such work include:
- advising on ad hoc transactions & queries (including telephone conversations), preparing & submitting information in the relevant format to HMRC & calculating any related tax liabilities;
- advising you when corporation tax is due on loans by the company to directors or shareholders or their associates, & calculating the payments due or the amount repayable when the loans are repaid;
- advising you on & preparing enhanced expenditure claims & reliefs, including those relating to research & development;
- advising you on & preparing detailed capital allowance claims relating to buildings & renovation, including the analysis of expenditure;
- dealing with any enquiry opened into the company’s tax return or tax affairs by HMRC; &
- preparing any amended returns that may be required & corresponding with HMRC as necessary.
Where specialist advice is required on occasion, we may need to seek this from or refer you to appropriate specialists. We will only do this when instructed by the nominated director.
You are legally responsible for:
- ensuring that the CTSA return (including XBRL tags and iXBRL file) is correct & complete;
- filing any returns by the due date; &
- paying tax on time.
Failure to do this may lead to penalties and/or interest.
Legal responsibility for approval of the return cannot be delegated to others. The nominated director agrees to check that the forms that we have prepared for you are complete before they approve them.
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 & fair view & 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 & capital transactions
- to provide full information necessary for dealing with the company’s affairs; we will rely on the information & documents being true, correct & complete & 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 & 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 3 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, & 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 & 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.