604 Partnership tax compliance
SCHEDULE OF SERVICES – (604) RECURRING TAX COMPLIANCE WORK (FOR AN UNINCORPORATED PARTNERSHIP)
SCHEDULE OF SERVICES
This schedule should be read in conjunction with the engagement letter and the standard terms and conditions.
Recurring compliance work
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. In particular, we will allocate the split of profits and other gains between the partners on the basis provided to us. After obtaining the approval of the nominated partner we will submit these to HMRC online.
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.
Where instructed by you, we will advise you as partners as to possible partnership tax return-related claims and elections arising from information supplied by the partnership in the form and manner required by HMRC.
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. The split of profits and other gains between the partners will be allocated on the basis provided to us. We will not provide any other information to individual members unless this is authorised and forms part of a separate engagement.
If any of the individual partners require personal tax advice or require us to prepare a personal tax return and/or wish us to make possible tax return-related claims, please let us know as this will be the subject of a separate engagement letter.
Ad hoc queries by way of telephone and email enquiries are not routine compliance and may result in additional fees. As indicated below, where appropriate we will aim to discuss and agree additional fees, but it may not always be possible to agree these in advance and we reserve the right to charge you an additional fee for these queries.
Ad hoc and advisory work
Where instructed by the nominated partner, we will provide such other taxation ad hoc and advisory services as may be agreed between us from time to time. These services will be subject to the terms of the engagement letter and standard terms and conditions of business unless we decide to issue a separate engagement letter. An additional fee may be charged for these services. Examples of such work include:
advising on the in-year Capital Gains Tax (CGT) reporting requirements on disposals of property, and preparing the in-year return and calculating the CGT due where required (please note this work will result in additional fees). We will require you to provide information as early as possible in advance of exchange of contracts in order to provide advice on the tax implications, reporting requirements and to quantify the tax bill;
advising on ad hoc transactions and queries (including telephone conversations and pre-sale advice on the sale of assets), preparing and submitting information in the relevant format to HMRC and calculating any related tax liabilities;
advising on double tax relief if appropriate;
dealing with any enquiry opened into the partnership tax return or tax affairs by HMRC;
preparing any amended returns that may be required and corresponding with HMRC as necessary.
If specialist advice is required, we may need to seek this from, or refer you to, appropriate specialists. We will only do this when instructed by the nominated partner.
Changes in the law or public policy and practice
We will not accept responsibility if you act on advice given by us on an earlier occasion without first confirming with us that the advice is still valid in the light of any change in the law or public policy and practice or your circumstances.
We will accept no liability for losses arising from changes in the law or public policy and practice that are first published after the date on which the advice is given.
The partners are legally responsible for:
ensuring that the partnership self-assessment tax returns are correct and complete;
filing any returns by the due date; and
paying tax on time.
Failure to do this may lead to penalties and/or interest.
Taxpayers who approve their returns cannot delegate this legal responsibility to others. The nominated partner agrees to check that returns and partnership statements we have prepared for the partnership are correct and complete before approving them.
To enable us to carry out our work you agree:
that all returns are to be made on the basis of full disclosure of all sources of income, charges, allowances and capital transactions;
to provide all information necessary for dealing with the partnership affairs. In particular, you are responsible for advising in writing, via the nominated partner, on the partners’ allocation of profits, losses, other income and allowances. We will rely on the information and documents being true, correct and complete, and will not audit the information or those documents;
to authorise us to approach such third parties as may be appropriate for information that we consider necessary to deal with the partnership affairs;
to provide full details of all UK residential property disposals including associated costs/valuations prior to disposal. Where you consider that a partner will be non-UK resident in the tax year of disposal, full details of all UK property disposals (residential and non-residential) and disposals of shares in UK property rich companies or UK property rich collective investment vehicles, or such other entities must be advised prior to exchange of contracts or agreement to transfer shares or units. If information is received after this we cannot guarantee that we can provide advice on the amount of capital gains tax due or submit an in-year return within 30 days after the completion date of the disposal; and
to provide us with information in sufficient time for the partnership tax return to be completed and submitted by 31 January following the end of the tax year. If (as is preferable) you wish us to submit your tax return by 31 October then we must have received all relevant information by 31 July. Alternately, if you wish us to submit your tax return by 31 January then we must have received all relevant information by 31 October. Where feasible, we may agree to complete your return within a shorter period but may charge an additional fee of insert amount for so doing.
to have paid our full fee in respect of the work to complete your partnership tax return prior to us making submission to HMRC. Where the work has been completed but our fee is not paid in full we reserve the right to withhold submission.
You will keep us informed of material changes in circumstances that could affect the tax liabilities of the partners including, by way of example, changes in the partners in the partnership. If you are unsure whether the change is material or not, please let us know so that we can assess its significance.
Where you wish us to deal with HMRC communications you will forward to us all communications received from HMRC. These must be provided in time to enable us to deal with them as may be necessary within the statutory time limits. It is essential that you let us have copies of any correspondence received because HMRC is not obliged to send us copies of all communications issued to you.
If you provide digital services to consumers in the European Union you are responsible for either registering for VAT in that member state or registering for VAT Mini One Stop Shop (MOSS).
You are responsible for monitoring the partnership’s monthly turnover to establish whether it is liable to register for VAT if it is not already registered. If you do not understand what you need to do, please ask us. If turnover exceeds the VAT registration threshold, and you wish us to assist in notifying HMRC of the partnership’s obligation to be VAT registered, we will be pleased to assist in the VAT registration process. You should notify us of your instructions to assist in the VAT registration in good time to enable a VAT registration form to be submitted within the time limit of one month following the month in which the VAT registration threshold in force at that time was exceeded. We will not be responsible if you fail to notify us in time and incur a late-registration penalty as a result.
You are responsible for employment taxes, pensions (including auto-enrolment) and the assessment of the tax status of your workers. If you do not understand what you need to consider or action you need to take, please ask us. We will not be in a position to assist you in complying with your responsibilities if we are not engaged to provide such a service. We are not responsible for any penalty that is incurred.
Limitation of liability
Our services as detailed above are subject to the limitations on our liability set out in the engagement letter and in our standard terms and conditions of business. These are important provisions, which you should read and consider carefully.