Non-Audit Accounts Assignment for An Incorporated Company and Companies and Other Entities Liable to Corporation Tax-Tagging Services

Schedule of Services

This schedule should be read in conjunction with the engagement letter and the standard terms and conditions.

Section A – Non-Audit Accounts Preparation

Our Service to You

You have engaged us to prepare the accounts (financial statements) on your behalf for your approval based on the accounting records, the information and explanations that you give us and in accordance with FRS 102 or FRS 105 and generally accepted accounting standards from the books, accounting records and other information and explanations provided to us by you and / or by others on your behalf.

We will complete the writing up of your books and records in so far as they are incomplete when presented to us. These will be from the accounting information and records you supply.

You have engaged us to prepare a non-statutory report as detailed below that will be attached to the accounts.

We will not be carrying out any audit work as part of this assignment and accordingly will not verify the assets and liabilities of the company, nor the items of expenditure and income. To carry out an audit would entail additional work to comply with International Standards on Auditing so that we could report on the truth and fairness of the financial statements. We would also like to emphasise that we cannot undertake to discover any shortcomings in your systems or irregularities on the part of your employees.

If an audit of the accounts is required, you will need to notify us in writing. Should our work indicate that the company is not entitled to exemption from an audit of the accounts, we will inform you. If we decide to undertake an audit assignment at your request, a separate engagement letter will be required.

We will attach to the accounts a report developed by the Consultative Committee of Accountancy Bodies (CCAB), which explains what work has been done by us, the professional requirements we fulfil and the standard to which the work has been carried out. You can obtain further information from the Association of Chartered Certified Accountants about:

  1. the technical guidance for the work
  2. the related ethical and other professional requirements.

To ensure that anyone reading the accounts is aware that we have not carried out an audit, we will attach to the accounts a report stating this fact.

The intended users of the report are the directors. The report will be addressed to the directors.

Once we have issued the report, we have no further direct responsibility in relation to the accounts for that financial year. However, we expect that you will inform us of any material event occurring between the date of our report and that of the annual general meeting that may affect the accounts.

Our Responsibility to You

We have set out the agreed scope and objectives of your instructions within the letter of engagement. Any subsequent changes will be discussed with you and, where appropriate, a new letter of engagement will be agreed. We shall proceed on the basis of the instructions we have received from you and will rely on you to tell us as soon as possible if anything occurs which renders any information previously given to us as incorrect or inaccurate. We shall not be responsible for any failure to advise or comment on any matter that falls outside the specific scope of your instructions. We cannot accept any responsibility for any event, loss or situation unless it is one against which it is the expressed purpose of these instructions to provide protection.

Accounts Preparation – Your Responsibilities

The advice that we give can only be as good as the information on which it is based. In so far as that information is provided by you, or by third parties with your permission, your responsibility arises as soon as possible if any circumstances or facts alter, as any alteration may have a significant impact on the advice given. If the circumstances change, therefore, or your needs alter, advise us of the alteration as soon as possible in writing.

Statutory Responsibilities

As directors of the company, you are required by statute to prepare accounts for each financial year, which give a true and fair view of the state of affairs of the company and of its profit or loss for that period.

You must not approve the accounts unless you are satisfied that they give a true and fair view of the assets, liabilities, financial position and profit or loss of the company.

In preparing those accounts you must:

  1. select suitable accounting policies and then apply them consistently.
  2. make judgements and estimates that are reasonable and prudent.
  3. prepare the accounts on the going concern basis unless it is not appropriate to presume that the company will continue in business.

It is your responsibility to keep proper accounting records that disclose with reasonable accuracy at any particular time the financial position of the company. It is also your responsibility to safeguard the assets of the company and to take reasonable steps for the prevention of and detection of fraud and other irregularities with an appropriate system of internal controls.

You are responsible for determining whether, in respect of the year concerned, the company meets the conditions for exemption from an audit set out in section 477, 479A or 480 of the Companies Act 2006, and for determining whether, in respect of the year, the exemption is not available for any of the reasons set out in section 478 of the Companies Act 2006.

You are also responsible for making available to us, as and when required, all the company’s accounting records and all other relevant records and related information, including minutes of management and shareholders’ meetings.

You will also be responsible for:

  1. maintaining records of all receipts and payments of cash
  2. maintaining records of invoices issued and received
  3. reconciling balances with the bank statements
  4. preparing details of the following at the year-end where applicable: stocks and work in progress; fixed assets; amounts owing to suppliers; amounts owing by customers; and accruals and prepayments

Our work will not be an audit of the accounts in accordance with International Standards on Auditing.  Accordingly, we shall not seek any independent evidence to support the entries in the accounting records, or to prove the existence, ownership or valuation of assets or completeness of income, liabilities or disclosure in the accounts. Nor shall we assess the reasonableness of any estimates or judgements made in the preparation of the accounts. Consequently, our work will not provide any assurance that the accounting records are free from material misstatement, irregularities or error.

As part of our normal procedures we may request you to provide written confirmation of any oral information and explanations given to us during the course of our work.

We have a professional duty to compile accounts that conform with generally accepted accounting principles. The accounts of a limited company are required to comply with the disclosure requirements of the Companies Act 2006 and applicable accounting standards. Where we identify that the accounts do not conform to accepted accounting principles or standards, we will inform you and suggest amendments be put through the accounts before being published. We have a professional responsibility not to allow our name to be associated with accounts that may be misleading. In extreme cases, where this matter cannot be resolved, we will withdraw from the engagement and notify you in writing of the reasons.

Should you instruct us to carry out any alternative report, it will be necessary for us to issue a separate letter of engagement.

Section B – Corporation Tax Compliance

Recurring Compliance Work

For the purpose of the delivery of the company’s tax return, we will use commercial software to apply XBRL tags to items in the accounts as we consider appropriate for the purposes of submission, for tax purposes, of the accounts in iXBRL via the relevant official gateway.

We will, to the extent we consider necessary, manually amend or apply tags where the software has not applied automatic tagging or where we consider any automatic tagging to have been inappropriate.

We will provide you with copies of the iXBRL information, which will show the tagging applied, for your approval.

We will prepare the company’s corporation tax self-assessment (CTSA) return. After obtaining written evidence of the approval of the nominated director, we will submit it to HMRC.

We will prepare the corporation tax computation and supporting schedules required for preparation of the company tax return from accounts, information and explanations provided to us on your behalf.

We will tell you how much tax the company should pay and when. Where instructed by you, we will advise on the interest and penalty implications if corporation tax is paid late. Where taxable losses are involved, we will advise you of the options available and, where appropriate, we will initiate repayment claims.

We will inform you if instalment payments of corporation tax are due for an accounting period and the dates they are payable. We will calculate the quarterly instalments that should be made on the basis of information supplied by you by the date agreed.

We will advise you as to possible tax return-related claims and elections arising from information supplied by you. Where instructed by you, we will make such claims and elections in the form and manner required by HMRC.

Ad hoc and Advisory work

Where the nominated director has instructed us to do so, 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 this 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 ad hoc transactions and queries (including telephone conversations), preparing and submitting information in the relevant format to HMRC and calculating any related tax liabilities;
  • advising on double tax relief if appropriate;
  • advising you when corporation tax is due on loans by the company to directors or shareholders or their associates, and calculating the payments due or the amount repayable when the loans are repaid;
  • advising you on and preparing enhanced expenditure claims and reliefs, including those relating to research and development;
  • advising you on and preparing detailed capital allowance claims relating to buildings and renovation, including the analysis of expenditure;
  • dealing with any enquiry opened into the company’s tax return or tax affairs by HMRC;
  • preparing any amended returns that may be required and corresponding with HMRC as necessary;
  • submissions of returns such as CT61s;
  • where you notify us that HMRC has issued communications directly to you. As HMRC does not provide agent access to all areas of client affairs, we assume that you will deal with a response in the first instance; and
  • where HMRC service delays result in additional time taken to resolve matters on which we are engaged to assist;  

For personal service companies, or where you are working with a personal service company:

  • helping you determine deemed employment status under IR35 rules for work undertaken for clients by the company;
  • adjusting the corporation tax computation to eliminate the deemed payments;
  • where deemed employment status under the IR35 rules applies to work undertaken for clients by the company, calculating the deemed employment payment where deemed employment status under the IR35 rules applies to work undertaken for clients by the company and accounting through payroll to HMRC for the tax and NIC etc;
  • where the off-payroll working rules apply and your company pays deemed employees’ personal service companies, accounting via payroll for tax and NIC etc on the payments;
  • where you have contractors working for you via their own personal service companies, helping you to determine whether you are “small” under the off-payroll working rules and, if you are large or medium sized, helping you to determine the deemed employment status of those contractors and assist you in preparing employment status determination statements to give to labour supply agencies and those contractors.

Where specialist advice is required on occasion, we may need to seek this from or refer you to appropriate specialists. We will only do this when instructed by the nominated director.

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.

Corporation Tax – Your Responsibilities

You are legally responsible for:

  1. ensuring that the CTSA return (including XBRL tags and iXBRL file) is correct and complete;
  2. filing any returns by the due date; and
  3. paying tax on time

Failure to do this may lead to penalties and/or interest.

Legal responsibility for approval of the return cannot be delegated to others. The nominated director agrees to check that the forms that we have prepared for you are correct and complete before they approve them.

To enable us to carry out our work, you agree:

  1. to provide us with approved accounts for the company. It is the responsibility of the directors collectively to produce accounts which give a true and fair view, and we can only provide tagging services where the accounts have been prepared on this basis. Where the accounts are not supplied in a format that is compatible with our iXBRL software, we will convert the figures, which may be subject to an additional fee. This will be discussed and agreed with you in advance
  2. that all returns are to be made on the basis of full disclosure of all sources of worldwide income, charges, allowances and capital transactions
  3. to provide full information necessary for dealing with the company’s affairs; we will rely on the information and documents being true, correct and complete, and will not audit the information or those documents
  4. to authorise us to approach such third parties as may be appropriate for information that we consider necessary to deal with the company’s affairs
  5. to provide us with information in sufficient time for the company’s CTSA return to be completed and submitted by the due date following the end of the tax year. For us to do this, we need to receive all relevant information by three months after the company’s accounting period
  6. to provide information on matters affecting the company’s tax liability for the accounting period in respect of which instalments are due at least four weeks before the due date of each instalment. This information should include details of trading profits and other taxable activities up to the date the information is provided, together with estimates to the end of the accounting period
  7. to provide us with information on advances or loans made to directors, shareholders or their associates during an accounting period, and any repayments made or write-offs authorised at the latest within three months of the end of the relevant accounting period

You will keep us informed of material changes in circumstances that could affect the tax liabilities of the company. If the directors 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 such as HMRC statements of account, copies of notices of assessment and letters. 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.

The work carried out within this engagement will be in respect of the company’s tax affairs. Any work to be carried out for the directors on a personal basis will be set out in a separate letter of engagement.

If you provide services, or you make distance sales of goods, to private consumers in the European Union, you are responsible for either registering for VAT in that member state or registering for VAT One Stop Shop (OSS).

You are responsible for monitoring the monthly turnover to establish whether the company 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 the company turnover exceeds the VAT registration threshold, and you wish us to assist in notifying HMRC of the company’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 act in relation to the company’s VAT registration in good time to enable a VAT registration form to be submitted within the statutory time limit:

If you exceed the threshold in the last 12 months – one month following the month in which the current VAT registration turnover threshold was exceeded.

If you are going to exceed the threshold in the next 30 days alone – by the end of that 30-day period.

We will not be responsible if we are not notified in time and a late registration penalty is incurred.

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 paragraph 19 of our standard Terms and Conditions of Business. These are important provisions, which you should read and consider carefully.

There are no third parties that we have agreed should be entitled to rely on the work done pursuant to this engagement letter.

Other services

You may request that we provide other services from time to time. If the other services do not fall within the scope of the engagement detailed above, we will issue a separate letter of engagement and scope of work to be performed accordingly.

Because rules and regulations frequently change, you must ask us to confirm any advice already given if a transaction is delayed or a similar transaction is to be undertaken.

July 2026

TN6 Ltd