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Taxing Nannies 28 Minchenden Crescent London N14 7EL Tel: 020 8882 6847 Email:

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Tax > Nanny Payrolls

Terms of Engagement

1 Introduction
1.1 This letter sets out the basis on which we are to act as your payroll agents.

2 Period of engagement
2.1 The terms of engagement apply from the date of this letter.

SCOPE

3. Our service to you
3.1 We will carry out the following service:

a) Open a PAYE scheme for you with the Inland Revenue (if one does not exist).
b) Calculate tax and National Insurance deductions.
c) Calculate tax credits and student loan deductions where applicable
d) Provide payslips for your nanny on a weekly, fortnightly, 4-5 weekly or monthly basis, as agreed, with a copy for you showing deductions made and net pay payable.
e) Advise you of the tax and National Insurance you need to pay and send the cheque to the Collector of Taxes on your behalf together with a completed Inland Revenue payslip.
f) Calculate any Statutory Sick Pay or Statutory Maternity Pay, and advise you if and when it is payable.
g) Apply for Statutory Maternity Pay in advance of your nanny going on maternity leave (wherever possible).
h) Correspond with the Inland Revenue about any matter concerning your nanny.
i) Sort out the correct tax code for your nanny.
j) Prepare end of year tax forms.
k) Advise you on holiday pay.
l) Advise you on completion of Contract of Employment.
m) Deal with termination of employment.
n) Advise you concerning deductibility of expenses and employee benefits.
o) Submit forms P11d on your behalf if required.
p) Answer any other queries from you concerning your nanny's pay.
q) Submit your Employer's Annual Return electronically to enable you to get an incentive
payment of £150 from the Inland Revenue for 2006/07 with possible further refunds until 2009.

4. Your responsibilities: Provision of information by you
4.1 You are legally responsible for making correct returns by the due date and for payment of tax on time. Failure to meet the deadlines may result in automatic penalties and/or interest.
4.2 To enable us to carry out our work you agree:
a) To provide complete and accurate information necessary for dealing with your payroll affairs. We will rely on the information and documents being true, correct and complete.
b) To provide us with personal details of all employees including name, National Insurance number, home address and date of birth;
c) To send us parts 2 and 3 of any P45 in your possession concerning your employees.
d) To ensure that a form P46 is completed for any employee who does not have a P45 (which we will send you)
e) To advise us as soon as is practicably possible of any changes in your nanny's circumstances including if your nanny is sick or becomes pregnant.
f) In the case of your nanny becoming pregnant, to supply us with form Mat B1 when received to enable us to obtain Statutory Maternity Pay in advance.
g) To provide us with any sick notes given to your nanny by her doctor.
h) To complete an authority enabling Taxing Nannies to file your End of Year Return electronically.
i) To complete a standing form for our fees (unless otherwise agreed).
j) To provide us with any information concerning benefits your nanny receives to enable us to complete a form P11d if required.
k) To ensure that any correspondence from Taxing Nannies is dealt with within the specified time limits.

4.3 You are responsible for ensuring that your nanny is paid in accordance with your employee's employment terms and that her salary accords with the relevant payslip. If there is a discrepancy between the salary paid and the payslip it is your responsibility to advise Taxing Nannies immediately so that the correct information can be recorded.

TERMS

5. Professional rules and practice guidelines
We will observe the bye-laws, regulations and ethical guidelines of the Institute of Chartered Accountants in England and accept instructions to act for you on the basis that we will act in accordance with those guidelines. In particular you give us authority to correct Inland Revenue errors.

6. Retention of records
Whilst certain documents may legally belong to you, we intend to destroy correspondence and other papers that we store which are more than seven years old, other than documents which we consider to be of continuing significance. You must tell us if you require retention of a particular document.

7. Regulatory requirements
We reserve the right to disclose our files to regulatory bodies in the exercise of their powers.
7.2 In common with all accountancy and legal practices, we are required by POCA and MLR 2003 to:

Maintain identification procedures for all new clients;
Maintain records of identification evidence;
Report, in accordance with the relevant legislation and regulations, to the National Criminal Intelligence Service."

8. Quality of service
We aim to provide a high quality of service at all times. If you would like to discuss with us how our service could be improved or if you are dissatisfied with the service you are receiving please let us know by contacting The Principal, Sara Graff.

Sara Graff undertakes to look into any complaint carefully and promptly and to do all she can to explain the position to you. If she does not answer your complaint to your satisfaction you may take up the matter with the Institute of Chartered Accountants in England and Wales.

9. Fees
Our charges are £20 per month (including VAT) for the first employee and £15 per month (including VAT) for subsequent employees. Fees are payable quarterly in advance by standing order (unless otherwise agreed) and commence from the date your nanny starts employment with you. Special rates as agreed apply to dealing with earlier tax years.
The above fee structure will not apply to contracts of a duration of four months or less which will be subject to a set charge.
On termination of your services with Taxing Nannies, fees will be payable for the month in which your employee leaves your employment.
If your services are terminated, and you wish Taxing Nannies to file your End of Year Return electronically (so that you can benefit from the incentive payments from the Inland Revenue), a further charge of £30 (including VAT) will be payable.
Following termination of the use of our services, any overpayment of fees will be refunded to you.
Taxing Nannies reserves the right to charge an administration charge of £25 including VAT where additional work is carried out such as persistent chasing of outstanding documentation or duplicate paperwork is required.
If you wish us to prepare a contract of employment on your behalf this will be subject to a separate charge of £25 including VAT.
If work is required which is outside the scope of this letter, for example dealing with Inland Revenue enquiries into your PAYE affairs, then this will be a separate engagement for which additional fees will be chargeable.

10. Limitation of liability
The advice which we give to you is for your sole use and does not constitute advice to any third party to whom you may communicate it.
We will provide the professional services outlined in this letter with reasonable care and skill. However, we will not be responsible for any losses, penalties, surcharges, interest or additional tax liabilities arising from the supply by you or others of incorrect or incomplete information, or from the failure by you or others to supply any appropriate information or your failure to act on our advice or respond promptly to communications from us or the tax authorities.
E-mail may be used to enable us to communicate with you. As with other means of delivery this carries with it the risk of inadvertent misdirection or non delivery. It is the responsibility of the recipient to carry out a virus check on any attachments received.

11. Electronic communication
As internet communications are capable of data corruption we do not accept any responsibility for changes made to such communications after their despatch. For this reason it may be inappropriate to rely on advice contained in an e-mail without obtaining written confirmation of it. All risks connected with sending commercially sensitive information relating to your business are borne by you and are not our responsibility. If you do not accept this risk, you should notify us in writing that e-mail is not an acceptable means of communication.

12. Applicable law
This engagement letter is governed by, and construed in accordance with, English law. The Courts of England will have exclusive jurisdiction in relation to any claim, dispute or difference concerning this engagement letter and any matter arising from it. Each party irrevocably waives any right it may have to object to any action being brought in those courts, to claim that the action has been brought in an inappropriate forum, or to claim that those courts do not have jurisdiction.

13. Data Protection Act 1988
To enable us to discharge the services agreed under this engagement, and for other related purposed including updating and enhancing client records, analysis for management purposes and statutory returns, crime prevention and legal and regulatory compliance, we may obtain, use, process and disclose personal data about you. You have a right of access, under data protection legislation, to the personal data that we hold about you.

14. Contracts (Rights of Third Parties) Act 1999
A person who is not party to this agreement shall have no right under the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this agreement. This clause does not affect any right or remedy of any person which exists or is available otherwise than pursuant to that Act.

15. Agreement of terms
This supersedes any previous engagement letter for the period covered. Once agreed, this letter will remain effective from the date of signature until it is replaced. You or we may vary or terminate our authority to act on your behalf at any time without penalty. Notice of variation or termination must be given in writing.
We should be grateful if you would confirm your agreement to the terms of this letter by signing and returning the enclosed copy.
If the above is not in accordance with your understanding of the scope of our engagement, please contact us and let us know.