Terms of Engagement
1.1 This letter sets out the basis on which Taxing Nannies are to act as your payroll agents.
2 Period of engagement
2.1 The terms of engagement apply from the date of this letter.
3. Our service to you
3.1 Taxing Nannies will carry out the following service:
a) Open a PAYE scheme (if one does not exist) for you with HMRC.
b) Calculate tax and National Insurance deductions.
c) Calculate student loan deductions where applicable
d) Provide payslips by email for each employee on a weekly, fortnightly, 4 weekly or monthly basis, as agreed, with a copy for you showing deductions made and net pay payable.
e) To email payslips within 5 working days prior to payment to the employee, wherever possible.
f) File RTI (Real Time Information) Full Pay Submission (FPS) to HMRC on or before the payment date of each employee (ie weekly, fortnightly, 4 weekly or monthly) as required by HMRC regulations.
g) Advise you of the tax and National Insurance you need to pay and provide information on the way to pay the Collector of Taxes.
h) Calculate any Statutory Sick Pay or Statutory Maternity Pay, and advise you if and when it is payable.
i) Apply for Statutory Maternity Pay in advance of your employee/s going on maternity leave.
j) Correspond with HMRC about any matter concerning your employee/s.
k) Sort out the correct tax code for your employee/s.
l) Complete final FPS of tax year confirming all payroll matters have been directly declared to HMRC.
m) Advise you on holiday pay.
n) Advise you on completion of Contract of Employment.
o) Prepare payslips and P45 on termination of employment and calculate redundancy pay where applicable.
p) Advise you concerning deductibility of expenses and employee/s benefits.
q) Submit forms P11d on your behalf if required.
r) Answer any other queries from you concerning your employee/s pay.
4. Your responsibilities: Provision of information by you
4.1 As an employer you have a legal responsibility to comply with RTI. Taxing Nannies as your payroll agents will submit the RTI information on your behalf but it is your responsibility to ensure that they are provided with all the necessary information (see points 4.2) to make the submissions by the due date (ie on or before each date your employee(s) is paid). You are also responsible for payment of tax on time. Failure to meet deadlines will result in HMRC levying automatic penalties and/or interest for which you will be responsible.
4.2 To enable Taxing Nannies 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 Taxing Nannies with correct personal details of all employees including name, National Insurance number, home address and date of birth;
c) To provide Taxing Nannies with an email address to communicate with you and to ensure that email correspondence is regularly checked and responded to within the required time limits. To provide your employee(s) with a copy of the emailed payslips, unless agreed that we should email the employee(s) directly.
d) To send Taxing Nannies parts 2 and 3 of any P45 in your possession concerning your employees.
e) To advise Taxing Nannies as soon as is practicably possible of any changes in your employee/s circumstances, including if your employee/s is sick within a maximum of 4 working days before your employee is paid. Taxing Nannies cannot guarantee to be able to submit the FPS to HMRC within the required time limit unless the timetable stipulated is adhered to.
f) In the case of your employee/s becoming pregnant, to supply Taxing Nannies with form Mat B1 when received to enable Taxing Nannies to obtain Statutory Maternity Pay in advance.
g) To provide Taxing Nannies with any sick notes given to your employee/s by his/her doctor.
h) To complete a direct debit form for our fees.
i) To provide Taxing Nannies with any information concerning benefits your employee/s receives to enable Taxing Nannies to complete a form P11d if required.
j) 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 employee/s is paid in accordance with your employee employment terms and that their salary accords with the relevant payslip. If there is a discrepancy between the salary due to be paid and the payslip, it is your responsibility to advise Taxing Nannies within a maximum of 4 working days prior to payment of the employee(s) so that the correct information can be recorded.
5. Professional rules and practice guidelines
5.1 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 Taxing Nannies authority to correct HMRC errors.
6. Retention of records
6.1 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 Taxing Nannies if you require retention of a particular document.
7. Regulatory requirements
7.1 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
8.1 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 contact The Principal, Sara Graff.
8.2 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.
9.1 Our charges are as follows:
· Monthly employees - £25 per month (inclusive of VAT) for the first employee and £17.50 per month (inclusive of VAT) for each subsequent employee.
· Weekly employees - £35 per month (inclusive of VAT) for the first employee and £30 per month (inclusive of VAT) for each subsequent employee.
· Fortnightly employees - £30 per month (inclusive of VAT) for the first employee and £25 per month (inclusive of VAT) for each subsequent employee.
9.2 Fees are payable quarterly in advance by direct debit and commence from the date your employee/s starts employment with you.
9.3 The above fee structure will not apply to short term contracts 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/s leaves your employment.
9.4 Following termination of our services, any overpayment of fees will be refunded to you.
9.5 Taxing Nannies reserves the right to charge an administration charge where additional work is carried out such as persistent chasing of outstanding documentation or duplicate paperwork is required.
9.6 If you wish Taxing Nannies to prepare a Contract of Employment on your behalf this will be subject to a separate charge of £50 including VAT.
9.7 If work is required which is outside the scope of this letter, for example dealing with HMRC enquiries into your PAYE affairs, and then this will be a separate engagement for which additional fees will be chargeable.
10. Limitation of liability
10.1 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.
10.2 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 Taxing Nannies or the tax authorities.
10.3 E-mail will be used to enable Taxing Nannies 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.
11.1 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 Taxing Nannies in writing that e-mail is not an acceptable means of communication.
12. Applicable law
12.1 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
13.1 To enable Taxing Nannies 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
14.1 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
15.1 This letter 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.
15.2 We should be grateful if you would confirm your agreement to the terms of this letter by signing and returning the enclosed copy.
15.3 If this letter is not in accordance with your understanding of the scope of our engagement, please let Taxing Nannies know.