BTP 1.1 – Schedule of Professional Services: Business Tax Services for Partnerships
This schedule should be read in conjunction with our standard terms and conditions. The purpose of this schedule to our engagement letter is to set out the basis on which we are to provide taxation services as your agents on the basis that you will make full disclosure to us of all relevant information.
1 taxation services
1.1 We will prepare the Partnership self-assessment tax returns and the annual Partnership Statements together with any supplementary pages required from the information and explanations that the Partnership provides to us. We shall forward the partnership return (together with copies of all supporting material we propose to submit to HM Revenue & Customs (HMRC) with your return) to you for approval and signature. After obtaining the approval and signature of one of the Partners nominated to deal with the Partnership’s tax affairs we will submit these to HMRC. You authorise us to file the return electronically to HMRC.
1.2 We will prepare the income tax and capital gains tax computations based on the Partnership’s business accounts for inclusion in the Partnership tax return.
1.3 We will advise you as to possible tax return related claims and elections arising from information supplied by the Partnership. Where instructed by you we will make such claims and elections in the form and manner required by HMRC.
1.4 If instructed we will provide each partner or their agent with details of the partner’s allocations from the return to enable partners to fill in their self-assessment tax returns.
1.5 Furthermore, to avoid automatic late filing penalties, which start at £100, the return must normally be submitted to the Inspector by 31 January following the tax year to which the return relates. This date may be extended if there is an HMRC delay in issuing the return to you.
1.6 It is therefore essential that you respond on a timely basis to any requests for further information to enable us to complete your return and submit it to HMRC on time.
1.7 Where specialist advice is required on occasions we may need to seek this from appropriate specialists.
2 enquiries
2.1 We shall respond to any enquiries from HMRC arising from your tax return. However, we shall consult you if it becomes clear that HMRC are opening an in-depth enquiry. They have the power to do this on a purely random basis.
3 record keeping requirements
3.1 Self-assessment requires full records supporting a return to be retained until the fifth anniversary of the 31 January following the end of the year assessment concerned. You will be responsible for retaining these records.
Penalties of up to £3,000 may be imposed for non-compliance with these provisions.
4 other services
4.1 We shall be pleased to give advice on the tax implications of specific matters which you may refer to us from time to time. Such advice and / or assistance would also be subject to separate terms of engagement.
4.2 Unless separately instructed, you will be responsible for all other returns, particularly including those relating to employees’ taxes, PAYE and VAT. We shall, however; be happy to advise in this connection if specifically requested. Such advice and / or assistance would also be subject to separate terms of engagement.
5 limitation of liability
5.1 Our services as set out above are subject to the limitations on our liability set out in the paragraph included within our standard terms and conditions of business. These are important provisions which you should read and consider carefully.