Payroll Terms
Payroll Terms and
Conditions
You may download a draft copy of the
Standard Terms and Conditions
(Adobe Acrobat Reader required)
Payroll Terms.pdf
Introduction
It is both a requirement of the law relating to the provision of
services and also good professional practice to set out clearly in
writing the terms and conditions upon which we provide you with
professional services.
This letter of engagement complies with this requirement. We would
request that you carefully read through this letter to ensure there
is no misunderstanding between us. If you agree to the terms and
conditions set out, then please sign and return the spare copy to
us. If there is any point upon which you require clarification, then
please contact us. If, within four weeks, we have not heard from you
or received back the signed copy, we will assume that you are in
agreement with the contents of this letter.
Services to be provided by us.
Part 1
We agree to
Maintain your payroll and prepare wage slips, payment advices and
annual returns from the information supplied by yourself. This is
subject to your having supplied us with all information relevant to
your payroll as and when requested by us, and in particular to your
letting us have details of all employees, pay rates, hours worked
etc at least 24 hours before the time of intended payment.
It should be noted that we can only prepare and maintain your
payroll on the basis of information supplied by yourself, or third
parties acting on your authority, and can accept no responsibility
for any errors in such information supplied or delays in supplying
such information to us.
This service excludes any investigation or payroll audit into your
affairs by the Inland Revenue, or the NIC authorities, and also
excludes enquiries, (except enquiries of a minor or routine nature)
raised upon any returns prepared by which would be the subject of a
separate letter of engagement.
In particular this service includes:-
(i) Preparing and submitting to you payslips for each pay day, and
advices to you of the amounts to be paid to the Inland Revenue or
other authorities, on the basis of information provided to us by
yourself.
(ii) Preparing and submitting to you for signature the annual P35
return and supplying you with P14s/ P60s for each employee.
(iii) Preparing Plld forms for each relevant employee and submitting
them to you.
(The fee for this service, if applicable, will be agreed with each
client)
Part 2
For your part, you agree:-
(1) To comply with any conditions set out in Part 1
(2)To supply us with all information in relation to your affairs
that we may reasonably require, or that is relevant to your affairs,
promptly and in good order.
(3) That notwithstanding our obligation under this letter of
engagement to prepare documents, etc, you (and you alone) are
responsible for the accuracy and completeness of your records all
liabilities, howsoever arising, as a result of errors, inaccuracies,
omissions, commissions or a lack of clarity in your records, insofar
as they attach to us, are excluded, unless it can be proved that we
had specific written notice of the inaccuracy or incompleteness of
your records.
4) To follow our advice in relation to the nature of your payroll
records.
(5) To fully comply with the PAYE Regulations in all matters
including, in particular, the requirement to retain all your
records, personal and business for a period of (usually) six years
after the end of the tax year involved. More precise details of the
requirements are available upon request.
(6) That nothing in this letter makes us directly or indirectly
responsible for the payment of any taxes. You agree that you remain
fully responsible for the payment of all taxes relating to your
affairs. You also agree that no payment should be made to the Inland
Revenue in respect of Income Tax or NIC, without first having
received written advice from ourselves that the sums demanded are
correct. You also agree that any tax demands should be forwarded to
us as soon as possible for checking, in order to minimise the risk
of either interest or penalties.
(7) That you will supply us immediately upon receipt by you with
copies of any documents or notices served upon you by the Inland
Revenue
Part 3
Non Compliance
(1) If at any time you have not fully complied with our advice in
relation to your records or
(2) You have not supplied us with the necessary information to deal
with your affairs within any statutory time limits (and the time
limits set out in this letter of engagement shall be of the essence
for the purposes of complying with statutory time limits) or
(3) You have in any other way by omission or commission made it
impracticable for us to comply with our obligations under this
letter of engagement, then, provided that your payments are not in
arrears, or that any other amounts due to us have been paid in full,
we agree to do whatever we can to assist in rectifying the
situation, but subject to our reserving the right to make a specific
charge on a basis to be agreed before any additional work is
undertaken.
(4) We must emphasise the severity of the current rules with regard
to interest and penalties that can be applied by the Inland Revenue,
both in relation to late payment of tax and late submission of
returns. The deadlines set out by law are critical - not even one
days grace is allowed. Penalties and interest can also arise where
you have supplied us with incomplete or inaccurate information upon
which we have relied in making estimates of your liabilities in
order to agree payments on account with the Inland Revenue.
Part 4
Other Work
Any work of whatsoever description not included in this letter of
engagement, including advice on employment law and drafting
contracts of employment shall be the subject of a separate
agreement, and this letter shall be taken to be a full and inclusive
statement of the matters referred to.
We will be pleased at any time to advise you on any business or
taxation matters which you care to refer to us.
Part 5
Personnel
Taxation work will normally be undertaken by W. Timmins.
Part 6
Fees
Our fees are payable by you immediately upon an account being
rendered, which will normally be rendered monthly if the fee exceeds
£50, otherwise it will be rendered quarterly, unless budget account
arrangements have been agreed between us. We have agreed that the
fees payable under this agreement shall be (see fixed fees).
Part 7
Retention and destruction of books and papers
If you cease to be a client and if we still hold any books and
papers that are your property, then at the expiry of six years from
you having ceased to be a client, we will write to your last known
address inviting you to collect such books and records. If such
books and records are not collected we will, under the terms of this
letter engagement, be at liberty to destroy any of such books and
papers upon the seventh anniversary of your ceasing to be a client.
If at any time while you remain a client, we still hold any books
and papers that are your property where the last entry therein was
made no later than six years earlier, then we will write to your
last known address inviting you to collect such books and records.
If such books and records are not collected we will, under the terms
of this letter of engagement, be at liberty to destroy any such
books and papers upon the seventh anniversary of the last entry
therein.
All files and records which are the property of ourselves will be
retained in accordance with our formal file destruction policy which
is available for inspection upon request.
We apologise for the length and complexity of this letter, but there
is little point in skimping on a letter which we hope will be the
foundations upon which a long and mutually rewarding business
relationship will be built
