We’re nearly there, and thank you for completing the onboarding survey. You’re doing great!
We now need to take you through a few legal items to ensure that both parties (That’s you and us) know what we expect and how MalgraBooks is going to work.
What to do
Please take a moment to have a read through the information below, and if you’re happy with the letter of engagement, simply sign (digitally) your signature in the box at the bottom of the page and click ‘submit’.
We’ll provide a copy of the document to you and store it in your Client Dashboard so that you can view at any time.
Letter of Engagement – MalgraBooks
This letter sets out the basis on which we provide services to you so as to avoid any misunderstandings.
Client Reference Number: To Be Confirmed /
Services being provided
- Business Accounts (MalgraBooks)
Anti money laundering legislation
All accountants must comply with the Proceeds of Crime Act 2002, the Terrorism Act 2000 and the Money Laundering Regulations 2017 (the “Anti Money Laundering Legislation”), which are intended to stop the activities of terrorists and other criminals by preventing them using accountancy services. If we do not comply with this legislation, we risk imprisonment.
Before we can act for you, we have to confirm your identity. At any time we may also need to obtain evidence confirming the identities of third parties, the source of any money or funding of property or other assets, and other matters.
We assume that our clients are honest and law abiding. However, if at any time we have grounds to suspect that crime is being committed, we are obliged to make a report to the National Crime Agency (NCA). We are prohibited by the legislation from telling you that we have done this. In such circumstances, we cannot do any work for your company without consent from NCA.
‘Criminal property’ is money, property, other assets, rights or any benefit derived from criminal activity. Activity is considered ‘criminal’ if it is a crime under UK law, no matter how trivial. Tax evasion is a criminal offence but an honest mistake is not.
It does not matter who carried out the criminal activity. Even if you are honest in your dealings, if your property represents a benefit from someone else’s crime, we must still make a report.
Disclaimer: We will not be liable for any loss suffered by you or any third party as a result of our compliance with the Anti Money Laundering Legislation or any UK law.
We may, from time to time, hold money on your behalf, depending on the service provided. Such money will be held in trust in a client bank account, separate from our funds.
If there are grounds to suspect that any monies held in a client account are derived directly or indirectly from any criminal activity whatsoever, we may not release such monies until we receive permission to do so from NCA.
Our fees are set as an annual fixed amount, with various upgrades and additions available to clients where applicable. Unless otherwise agreed, our fees are required in full before the submission of your Tax Return and are payable either by credit or debit card or bank transfer. If you are paying monthly, the final payment is required before we can submit your return. Options for paying monthly include Direct Debit and monthly recurring card payments.
If invoices are not subject to payment by standing orders, our terms for such invoices are strictly 7 days net. Interest will be charged on all overdue debts at the rate stated on the invoice or, at the rate applicable under the Late Payment of Commercial Debts (Interest) Act 1998, whichever is the higher.
Should you have any disagreement concerning a fee, this must be notified to us within 7 days of the invoice date. In the absence of such notification, you are deemed to have accepted the invoice and it is payable in full accordance with our normal terms.
If this letter of engagement covers work for a limited company and the company is unable to meet our fees as and when they fall due then the company’s directors will be personally, jointly and severally liable in respect of our outstanding fees.
Commissions or other benefits
While we will notify you of any commissions received, you agree that we may retain any such commissions.
Ownership of records
In the event of non-payment of our fees, we may exercise a right of lien over the books and records in our possession and withhold the documents until such time as payment of our invoice is received in full.
Correspondence and other papers that we may hold older than 6 years will be destroyed unless you request their return in writing if you have agreed prior with us to submit by post. Electronic records are also deleted after 6 years have passed.
We are committed to providing a high standard of customer service. We welcome suggestions on how our service to you could be improved.
We hope that you will not have the need to complain but if you do, we will look into your complaint carefully and promptly and do all we can to explain the position to you and address your concerns.
All accounts, statements and reports prepared by us are for your exclusive use within your business or to meet specific statutory responsibilities.
No third party shall acquire any rights under this agreement to provide professional services.
This engagement letter is governed by, and construed in accordance with the law of the relevant UK jurisdiction as determined by law. Each party irrevocably waives any right it may have to object to any action being brought in Courts of the relevant jurisdiction.
Agreement of terms
If you agree to these terms, and begin using our services, this letter will remain effective from the date of receipt, until it is replaced. Either party may vary or terminate our authority to act for you at any time without penalty. Notice of termination must be given in writing. If anything is unclear to you or you require any further information please let us know.
ANNUAL ACCOUNTS – SOLE TRADERS/PARTNERSHIPS/LANDLORDS
Your responsibility for the preparation of accounts
- You undertake to make available to us all the accounting records for the preparation of the accounts and make full disclosure to us of all relevant information. You will need to approve the accounts we prepare.
- You are responsible for ensuring that, to the best of your knowledge and belief, financial information is reliable.
- You are also responsible for ensuring that the activities of the business are conducted honestly and that the business complies with the laws and regulations applicable to its activities, and for taking steps to deter fraudulent or other dishonest conduct and to detect any that occur.
Our responsibilities for the preparation of accounts
- We will prepare your annual accounts from your accounting records and the information and explanations you give us. We shall prepare draft annual accounts for your approval.
- We will advise you on the adequacy of your records for preparation of the annual accounts and recommend improvements which we consider necessary. We shall not be responsible if, as a result of you not taking our advice, you incur losses or penalties.
- We will use reasonable skill and care in the preparation of your accounts but will not be responsible for errors arising from incorrect information supplied by you.
- We will report that, in accordance with your instructions and without carrying out an audit, we have prepared the accounts from your accounting records and from the information and explanations supplied to us.
- We have a professional duty to compile accounts which conform with generally accepted accounting principles.
For clients on the Advanced or Premium services, we will prepare monthly management accounts for your business where data is available. We will complete the management accounts from the records, information and explanations supplied to us and prepare draft accounts for your approval.
You will be responsible for:-
- maintaining records of all receipts and payments of cash;
- reconciling cash book balances monthly with the bank statements;
- posting and balancing the purchase and sales ledgers; and
- extracting a detailed list of ledger balances.
You will also provide estimates of any stocks at the end of each period.
You understand that we will not be carrying out an audit and accordingly will not verify the assets and liabilities of the business, or expenditure and income.
The accounts will include a report that we have not carried out an audit. This report must remain attached to any accounts shown to any other parties.
We do not undertake to discover any shortcomings in your systems or any irregularities on the part of your employees or others, although we will advise you of any that we encounter in preparing your accounts.