Introduction

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We welcome you to our ‘Accounts Up!’ service as our Client; a service provided by Fluid Accounting Ltd.

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Our Terms explain our obligations to you (as a service provider) and your obligations to us (as our Client). By following them, it means nothing falls between the gaps and we all know who does what, and by when.

Our Terms are binding, whether or not you have signed them; and by using our services you acknowledge that you have read and understood our Terms.

 

Our ‘Accounts Up!’ service is also referred to as the ‘service’ in these Terms.

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The ‘Accounts Up!’ service - what it is

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Our service is this:

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We log into your Xero and using the data from it:

• We will ensure that your company’s financial statements (Accounts) are correctly put together. This includes checking that the numbers have been brought across accurately from your Xero system and that the accounts comply with all the relevant disclosure requirements. This is therefore considered a compilation engagement only.

• We prepare one set of Accounts for the required period, in FRS 105 UK GAAP format (FRS 105 being The Financial Reporting Standard applicable to the Micro-entities Regime)

• We prepare one corporation tax calculation

• We prepare one CT600 Corporation Tax return for the required period

• We submit the Accounts to Companies House in the required iXBRL format

• We submit the CT600 Corporation Tax return to HMRC, along with the related Accounts

• This service is based upon the financial data and information from you and your Xero system, and rearranging it into a set of financial statements. 

• We do not verify your data, and we do not express a conclusion on the compiled information.

• Your Accounts are not audited by us, nor do we give any assurance over the accuracy of the data in your Xero system or any other information you provide to us. No assurance will be expressed by us.

• It is important to note that after your Accounts are filed with Companies House, we cannot submit amended ones if you later discover there is a mistake in them. It is therefore important to provide accurate information to us and thoroughly check your Accounts before signing them.

• It is important to note that after your CT600 Corporation Tax return is filed with HMRC, you are able to submit an amended return if you later discover there is a mistake in it. We can do this for you but this will involve an additional fee payable to us. 
   

1. Your obligations 

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If you provide us with all information and explanations as and when we ask for them, we will provide our service within a reasonable period of time to meet any regulatory deadlines.

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So, to ensure the service runs smoothly, you are required to ensure the following:

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• To be compliant with the Micro Company

  • Section 384A of the Companies Act 2006 explains the criteria that a company must meet to qualify as a micro-entity.

  • To qualify, at least 2 of the following must be true:
     

    • 1. Turnover £632,000 or less

      • And if your accounting period is shorter or longer than 12 months, you must apportion this criteria. For example, if your accounting period were only 6 months, the turnover criteria would be £316,000 (6/12 of £632,000).

    • 2. Average number of employees 10 or less

      • Section 384A(7) of the Companies Act 2006 explains how you calculate the 'average':

      • (a) find for each month in the financial year the number of persons employed under contracts of service by the company in that month (whether throughout the month or not),

      • (b) add together the monthly totals, and

      • (c) divide by the number of months in the financial year.

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    • 3. Balance Sheet Total £316,000 or less

      • This being the total of all your Assets on the balance sheet
        (Fixed Assets and Current Assets)

    • The 2 year rule

    • These criteria must apply for 2 consecutive financial years (unless it is the company's first year of Accounts).
       

• To have Xero ready
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  • One we commence our service, Xero will be locked and no further changes can be made without our agreement.

  • If any changes are made to your Xero accounting after we have started our service, we reserve the right to charge an additional fee, or end our service to you without notice, and without refund of any fees paid to us.
     

  • You agree to have completed all your processing in Xero before we start our process.
     

• To provide us with all other information we need
   

  • It is your responsibility to provide all other information we ask for to complete our service

  • You should let us know about any HMRC or Companies House communications to you that may affect our service.

  • You should inform us of any circumstances that could affect the accounting or tax liabilities of your business.

  • You should provide all information necessary for us to undertake the services we provide to you. We will rely on the information and documents being true, correct and complete. You are responsible for ensuring that the information provided is, to the best of your knowledge, accurate and complete.

  • You should bring to our attention any errors, omissions or inaccuracies in your Xero accounting, your corporation tax return, or Accounts; or any other, at any point and as soon as you become aware of them (even if this is after the returns have been submitted) so that we can correct them in good time if possible.

  • If your Accounts are filed late, and/or your CT600 Tax return is submitted late, and/or your payment of tax due is late, we take no responsibility for this.
     

• Xero transactions relate to business
   

  • It is legally your responsibility to ensure that every transaction going through your company is a business one (other than those posted to your Director’s Loan Account); and they all have adequate supporting evidence (such as a bill or receipt).

  • If HMRC disallows an expense because it is not a business one, or has no bill or receipt provided by you, it may disallow it against corporation tax and VAT, and we take no responsibility for this.
     

• HMRC liabilities

  • It is your responsibility to pay all taxes and penalties owed to HMRC on time, including but not limited to: VAT, Corporation Tax, Personal Income tax, Capital Gains tax and national insurance.
     

• Companies House liabilities

  • It is your responsibility to pay all fees or fines owed to Companies House.
     

2. Confidentiality | putting your mind at rest
 

• We will keep your information confidential (except as required by law or as provided for in regulatory, ethical or other professional pronouncements applicable).

• We may, on occasions, subcontract work to other tax or accounting professionals (such as specific tax advice). We only use reputable professionals and they will also be bound by our client confidentiality terms.
   

3. Data Protection
 

• Fluid Accounting Ltd is fully GDPR compliant.
   

4. Electronic and other communication
 

• We will communicate with you and with third parties by email and other electronic means (for example using Xero, Google, Senta and WhatsApp). 

• Although we have virus firewalls in place, the recipient is always responsible for virus checking emails and any attachments.

• With electronic communication, there is a risk of non-receipt, delayed receipt, inadvertent misdirection or interception by third parties. Electronic communication is not totally secure and we cannot be held responsible for damage or loss caused by viruses or for communications which are corrupted or altered after dispatch. Nor can we accept any liability for problems or accidental errors relating to this means of communication, especially in relation to commercially sensitive material. In today’s society and business practices, these are risks you must bear in return for greater efficiency and lower costs.

• Any communication by us with you sent through the post or other non-electronic processes is deemed to arrive at your postal address two working days after the day the document was sent.
   

7. Third Party reliance on your Accounts
 

• We accept no responsibility to third parties for any information included in your Accounts or CT600 Tax return.

• The Accounts we produce are for the purpose of filing with Companies House, and no other. 

• Our liability to you is limited to losses, damages, costs and expenses caused by our negligence or willful default. However, we cannot be responsible for any losses, penalties, surcharges, interest or additional tax liabilities where you supply incorrect or incomplete information, or fail to supply any appropriate information or where you fail to act on our advice or respond promptly to communications from us or HMRC or Companies House.
   

8. Professional rules, statutory obligations and quality control
 

• We will observe and act in accordance with the bye-laws, regulations and Code of Ethics of ICAEW and ICAS and will accept instructions to act for you on this basis. We will not be liable for any loss, damage or cost arising from our compliance with statutory or regulatory obligations.

• As part of our ongoing commitment to provide a quality service, our files are periodically reviewed by an independent regulatory ICAEW. These reviewers are highly experienced professionals and are bound by the same rules of confidentiality as our principals and staff.

• We hold Professional Indemnity Insurance and our insurer is AXA, 5 Old Bond Street, London, EC2N 1AD.
   

10. Cancelling your service
 

• If you decide not to go ahead with our service, let us know immediately. 

  • If we have not started any work we will refund you the full amount paid, less an admin fee of £25 + vat.

  • If we have undertaken any amount of work in providing our service, we will calculate any amounts due and refund them, less an admin fee of £25 + vat.

• We reserve the right to terminate the engagement between us with immediate effect in the event of: you providing us (or HMRC or Companies House) with misleading information; we are required for legal or regulatory reasons to cease work; your insolvency, bankruptcy or other arrangement being reached with creditors; an independence issue or change in the law which means we can no longer act; failure to pay our fees; or either party being in breach of their obligations if this is not corrected within 10 days of being asked to do so. Termination will be without prejudice to any rights that may have accrued to either of us before termination.
   

11. Any questions
 

Anything you need to know more about? Let us know!

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email us at: hello@gofluid.co.uk

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Fluid Accounting Ltd
Company number: SC494565
Registered address: 5 South Charlotte Street Street, Edinburgh, Scotland, EH2 4AN