TERMS OF ENGAGEMENT

TRADES ACCOUNTANT is a trading division of BDCMA LTD, and all references to BDCMA LTD refer to and include TRADES ACCOUNTANT

HMRC means Her Majesty’s Revenue and Customs

  1. The client agrees to use the services of BDCMA LTD, a firm of accountants based at Mercury House, Willoughton Drive, Foxby Lane Business Park, Gainsborough, DN21 1DY (The Firm) for their accounting and taxation services, as laid out in the letter of appointment
  2. This agreement forms the entire basis of the appointment, and no other terms or contractual agreements apply
  3. The firm is regulated by The Chartered Institute of Management Accountants, and specifically, but not exclusively:
    1. Is registered under the Members in Practice rules of the Institute, and therefore permitted to charge fees for work done for the general public
    2. Must not accept instructions to perform work for which it is not qualified to perform
    3. Is bound by relevant legislation in relation to Money Laundering, and supervised by CIMA under this legislation
    4. Is bound by the Institutes Ethics policy
    5. Will carry Professional Indemnity Insurance at all times
    6. Will issue a letter of appointment to all clients, upon engagement, laying out the details of the work to be performed by the firm, and the fees and payment terms agreed
  4. The client is responsible for providing all relevant documentation and information to permit the firm to carry out its work, such to be supplied in the method agreed. The firm accepts no liability for errors or omissions caused by non-supply of relevant documents and information, or supply of incorrect documentation and information
  5. The firm accepts no liability for failure to carry out any of the work specified in the letter of appointment, or the time of carrying out of the work, where such failure is caused by non-supply of documentation or information by the client
  6. The client has personal responsibility to meet their obligations to HMRC, and no liability passes to the firm for that obligation. The firm acts as agent only, and no agreement between the firm and the client can absolve the client from ensuring compliance on their own behalf
  7. Work, additional to that specified in the letter of appointment, will only be carried out after agreement of a fee, and payment terms of said fee. Additional work may from time to time be based upon hourly rates, rather than fixed fees for specific tasks. Any such fee structure will be agreed before commencement of additional work. Paragraphs 3 and 4 above apply to additional work
  8. The client is liable to pay for all work performed, regardless of the payment terms agreed for said work. Fees paid are not refundable, but the client has the right to have work done to the value of any advance fees paid
  9. No credit period is allowed to clients. Fee notes are payable upon presentation, unless paid by standing order, in which case they are payable on the date specified in the letter of appointment, and monthly thereafter. The firm reserves the right to issue interim fee notes for work performed over an extended period, which are payable upon presentation. Interest is accrued daily, at 3% above base rate, on all overdue sums
  10. The firm will carry out those tasks specified in the letter of appointment, or subsequent agreement, for the fee agreed, for a period of not less than twelve months, unless
    1. Otherwise agreed at the time of appointment
    2. The client withheld or failed to provide the firm with relevant information to allow a reasonable fee for the amount of work, to be agreed
    3. The client wishes to terminate the appointment, in which case paragraph 6 applies
    4. The firm has reasonable grounds to suspect the client may be involved in money laundering, or other illegal acts
  11. No period of notice of termination of services applies, subject to paragraph 6 above
  12. All outstanding fees become payable immediately upon receipt of notice of termination, and the firm reserves the right to retain documentation and information belonging to, or pertaining to the clients affairs, until all outstanding fees are paid
  13. The firm accepts no liability for the correctness of returns to HMRC, Companies House, or other organisations. The client is responsible in all circumstances to these organisations. Written authority to file will be supplied by the client, for all documents produced, specifically relating to those documents only. There is no general approval to file, available or allowed
  14. The firm accepts no liability for postal filing failures, where the firm is posting returns, etc. on behalf of clients
  15. The firm accepts no liability or responsibility for fines or interest charges incurred by the client in relation to its accounting and taxation affairs
  16. The firm will use cloud accounting systems, as appropriate, to provide the accounting system to the client. The initial offering is a combination of XERO, and ENTRYLESS. ENTRYLESS retains a digital image of purchase documents which are accepted by HMRC as good evidence. The client has a responsibility for ensuring the digital image is readable before sending to ENTRYLESS. Once the client has submitted the invoice/voucher, the original may be destroyed, but the client accepts responsibility for the quality of the image and ensuring it meets reasonable standards (can be read)
  17. The cloud accounting packages will be licenced to the firm, and the firm retains control over it at all times. The client will be granted access to the packages, which will remain in force unless the client falls into arrears with the instalments. Access will not be withdrawn if fees are paid up to date
  18. The firm will pay for all fees for the cloud accounting systems, and the client has no liability to the cloud accounting providers, for the duration of this contract
  19. If the client wishes to transfer their accounting and taxation affairs to another accountant, the firm will either provide information to date, allowing the new appointee to provide continuous services, or will arrange for the new appointee to take over the cloud accounting system, wherever this is possible. The firms’ liability to pay for the cloud accounting system will cease upon termination of their appointment, providing the firm has met its responsibilities to effect a proper transfer to the new appointee, and subject to clause 12 above
  20. The client agrees to provide bank feeds into the cloud accounting system, which must be updated weekly, by the client. These systems require use of the clients’ internet banking details, which the firm does not require access to or knowledge of
  21. The client may choose to use the free third party software to provide the bank feeds, or to pay the bank themselves, to use the direct feed. These fees are typically about £4/month, and payable to the bank. The client is advised to read the disclaimer within XERO to help them determine which approach to use
  22. The sales invoicing system within the cloud accounting package must be used by the client to raise all sales invoices. The use of the quoting system is optional, but offers the client competitive advantages in quick and efficient quoting
  23. Xero has over 400 add-ons, which may be used in conjunction with the accounting system, many of which may assist the client to operate more efficiently, and/or effectively, including obtaining payment. The firm has no responsibility for the use of add-ons, and any add-ons contracted for, remain the liability of the client
  24. The firm becomes responsible for the bookkeeping to ensure the cloud accounting system is as up to date as is reasonably possible, once the client has uploaded purchase invoices/vouchers to Entryless, and updated the bank feeds, subject to the efficiency and timeliness of processing by the cloud accounting software providers
  25. The firm is a general practice firm of accountants. Where specialist expertise is required, the client will be notified of such, and agrees to accept the costs of engaging relevant specialist advisors. Fee, or fee structure, to be agreed by the client before the firm proceeds to engage such specialists
  26. Where a client has authorised another agent to look after their taxation affairs, the firm will provide that agent with all relevant information, to allow that agent to complete their work on behalf of the client, subject to all relevant paragraphs above
  27. Where the client ceases to trade, and/or becomes un-contactable, unless the client continues to pay the monthly instalments, the firm will close the cloud accounting package in the clients’ name. The firm will retain the client’s documentation from the cloud accounting system, electronically, for one year after last contact, after which they will be destroyed in a manner to retain client confidentiality. Should the client be made bankrupt, the records will be surrendered to the official receiver, or other authorised body, unless already destroyed. No liability appends to the firm for destroying documentation in these circumstances
  28. The firm will deal with HMRC enquiries from commencement to conclusion, subject to the following
    1. The client must pay the additional enquiry protection monthly fee, in addition to the agreed monthly fee for services as per our letter of appointment
    2. The enquiry must be related to matters dealt with by this firm, and which arose during the period of the firm being actively engaged by the client
    3. The client must remain a client of the firm until the enquiry is closed. If the client terminates the services of the firm before this date, the firm will have no further liability to act in relation to the enquiry, or any other matter
    4. We are a general practice firm, and if a particular expertise is required to assist in dealing with the enquiry, clause 25 above will apply to the engagement of the experts services
    5. If the client is found to have deliberately withheld information or facts, this firm will not be bound by these terms to act for the client, although an additional fee may be negotiated with the client to engage our services in continuing to deal with the enquiry, providing the full facts are disclosed to the firm henceforth
    6. If the enquiry is converted to an investigation, then the client will be required to lodge a bond with the firm, amount to be agreed at the time. This bond will only be returned to the client if the investigation is closed without further tax being found to be due to HMRC. If the investigation is successful on the part of HMRC, then the bond is forfeit to the firm as additional fees for dealing with the investigation. Failure to pay this bond will terminate the firm’s responsibility to continue to act for the client in relation to the investigation
    7. This is not an insurance policy, although the firm retains the right to purchase insurance to cover its liability to the clients
  29. All Accountancy Service Providers (which includes tax advisers, bookkeepers, payroll bureau) must comply with onerous duties imposed by the Terrorism Act 2000, the Proceeds of Crime Act 2002, the Fraud Act 2006 and the Money Laundering Regulations 2007 (the “Anti Money Laundering Legislation”), which are intended to inhibit the activities of terrorists and other criminals by denying them access to technical expertise. If we fail to perform these duties, we risk imprisonment.

    Before we accept your instructions, we may need to obtain ‘satisfactory evidence’ to confirm your identity. In certain circumstances, we may need to obtain evidence confirming the identities of third parties, the source of any funds or other property, the purpose of any instructions or any other matter. We may also need to obtain further evidence after we have begun to act on your instructions and the evidence may include searching by electronic means.

    We assume that our clients are honest and law abiding. However, if at any time, there appear to be grounds to suspect (even if we do not actually suspect) that your instructions relate to ‘criminal property’, we are obliged to make a report to the National Crime Agency (“NCA”) but we are prohibited from telling you that we have done so.

    In such circumstances, we must not act on your instructions without consent from NCA. If NCA do not refuse consent within 7 working days we may continue to act. If NCA issue a refusal within that time, we must not act for a further 31 days from the date of the refusal.

    ‘Criminal property’ is property in any legal form, whether money, real property, rights or any benefit derived from criminal activity. It does not matter who carried out the criminal activity or how removed the property is from the original crime. Even if you are honest in your dealings, if your property represents a benefit from someone else’s crime, we must still make a report.

    Activity is considered ‘criminal’ if it is a crime under UK law, no matter how trivial, and whether carried out in the UK or abroad. For example, tax evasion is a criminal offence but an honest mistake is not an offence
  30. The firm will not be liable to carry out work beyond that for which it has been paid, including work to comply with filing deadlines
  31. This firm occasionally recommends other professional organisations to clients. Some of these may pay this company a fee for the referral. All referrals are however only given on the basis that we believe that the client will benefit from their involvement with said organisation. These are only ever given on a case by case basis, and no general use of our database of clients will be shared with third parties on a speculative basis