1.1. What this document is
These terms and conditions set out how we'll work together. They form part of your engagement letter and work alongside these other documents you've received:
The scope of our engagement
Your individual service schedules
Our privacy notice
Your proposal
Together, these documents form our complete agreement.
1.2. How long these terms last
These terms stay in effect until I update them with new terms and conditions. If I do update them, I'll let you know in writing.
2.1. Which law applies
Our engagement and the services I provide are governed by the law and practice of England & Wales.
By accepting your engagement letter and these terms, you're agreeing that the courts of England & Wales have exclusive jurisdiction over any claim or dispute relating to our work together.
3.1. Who regulates me
I'm regulated by the Association of Accounting Technicians (AAT).
AAT Licence Number: 1002103 (Licensed Accountant)
Professional Title: AAT Licensed Accountant
3.2. Where to find more information
You can find details about my firm, the code of ethics I follow, and the regulatory framework I comply with on the AAT website at www.aat.org.uk - just look for the register of members.
AAT Contact Details:
Association of Accounting Technicians
30 Churchill Place, London E14 5RE
Telephone: 020 7397 3000
Website: www.aat.org.uk
3.3. Professional standards
I'm subject to AAT's Code of Professional Ethics and Practice Assurance Standards. I undergo periodic practice assurance monitoring by AAT to ensure I meet required professional standards.
4.1. What counts as "client money"
Client money means any money I receive from you or hold for you that isn't payment for my services.
For example, if you accidentally overpay me or send me money to pass on to HMRC on your behalf, that would be client money.
Advance payments for services: If you pay my fees in advance (for example, paying annually for a monthly package), that's a payment for services - not client money. I can use advance payments in my business immediately. However, I remain obligated to deliver the services we've agreed, and if I don't, you're entitled to a refund for work not completed.
4.2. What I won't hold
I don't hold assets, investments, or property on your behalf. My role is accounting and tax compliance, not asset management or custody services.
5.1. Investment business is regulated
Investment business is regulated under the Financial Services and Markets Act 2000.
5.2. What I don't do
I don't provide investment services, and I don't refer clients to investment advisers.
5.3. AAT licence limitations
My AAT licence (Number 1002103) does not authorise me to conduct any aspect of investment work, including insurance mediation services.
5.4. If you need investment or insurance advice
If you need advice on investments or insurances during my work for you, I'll refer you to someone who is authorised by the Financial Conduct Authority or licensed by a Designated Professional Body.
5.5. Limited investment services
I'm not authorised under the Financial Services and Markets Act 2000, but I'm able in certain circumstances to offer a limited range of investment services to clients because I'm regulated by AAT for the purposes of carrying out investment business.
6.1. When I might receive a commission
Occasionally, I or a connected business may receive a commission or other benefit for introducing you to another professional or arranging a transaction on your behalf.
6.2. What happens if I receive a commission
If this happens, I'll account to you for the commission. This means I'll notify you in writing of the terms and amount of any commission or benefit I receive.
7.1. Which regulations I comply with
I comply with UK GDPR and the Data Protection Act 2018 when handling your personal data.
7.2. What counts as personal data
Personal data means information about individuals (natural persons) who can be identified, either:
Directly from that information, or
Indirectly by combining that information with other data
7.3. Examples of personal data
This includes (but isn't limited to) names, identification numbers, location data, and online identifiers.
7.4. When I'm a data controller
When providing most accountancy services, I act as a data controller under GDPR. This means I make decisions about how to process your data when delivering our agreed services.
7.5. When I'm a data processor
For certain services (like payroll), I act as a data processor. In these cases, you're the controller and I process data according to your instructions.
7.6. The principles I follow
I comply with the seven GDPR principles when collecting and processing data (full details at www.ico.org.uk):
Lawfulness, fairness and transparency
Purpose limitation
Data minimisation
Accuracy
Storage limitation
Integrity and confidentiality
Accountability
7.7. How I comply with these principles
To meet these principles, I will:
7.8. Provide you with a privacy notice
You'll receive a privacy notice that should be read alongside your engagement letter, service schedules, and these terms and conditions.
7.9. Only collect what's necessary
I'll only collect and process information that's necessary for:
Providing our agreed services
Complying with legal and regulatory obligations
Contacting you about other services (where you've given consent)
Other legitimate reasons, such as protecting against claims or disciplinary action
7.10. Professional body reviews
As part of AAT's regulatory requirements, my files may be reviewed by AAT, another regulator, or a qualified third party to ensure I'm complying with professional standards.
8.1. Why I need to verify your identity
I'm supervised by AAT for anti-money laundering compliance. This means I'm legally required to obtain information to identify and verify who you are.
I'll do this by requesting information from you (such as proof of ID and address) and/or by searching appropriate verification databases.
8.2. When I can start work
I won't usually be able to start working for you until I've completed these checks and received the necessary information.
8.3. Full details
For complete details of my anti-money laundering obligations, please see Section 26 (Money Laundering Regulations).
9.1. Zero tolerance for bribery
I have a zero-tolerance policy towards bribery and corruption. I comply with the Bribery Act 2010 in all business dealings.
You agree not to offer, promise, give, request, or accept any bribes or improper payments in connection with our engagement or your business affairs.
10.1. If a conflict arises
If there's a conflict of interest in my relationship with you, or between you and another client, I'll notify all affected parties. Where possible, I'll apply appropriate safeguards that everyone agrees to, protecting everyone's interests.
10.2. When I can't continue
If suitable safeguards can't be put in place, I may be unable to continue providing services.
10.3. Acting for other clients
I reserve the right to act for other clients whose interests are different from yours or even adverse to yours. Of course, this is always subject to my confidentiality obligations - I won't share your confidential information with anyone else.
11.1. Insurance requirement
AAT requires me to maintain professional indemnity insurance, and I do.
11.2. My insurer details
My insurer is Trafalgar Risk Management Ltd, 51 Eastcheap, London, EC3M 1JP.
Coverage is worldwide, excluding the USA and Canada.
11.3. Where to find more information
Full details of my professional indemnity insurance are available on my website at elettyaccounting.co.uk.
12.1. If you're not happy
I aim to provide excellent service at all times. However, if you're dissatisfied in any way, please contact me directly at wendy@elettyaccounting.co.uk.
12.2. How I'll handle your complaint
I'll investigate any complaint carefully and promptly, and take all reasonable steps to resolve it to your satisfaction.
If I can't resolve your complaint to your satisfaction, you can take the matter to AAT. At that point, I'll also provide you with details of an approved alternative dispute resolution body you may wish to contact.
13.1. Your information stays private
In accordance with my professional code of ethics, all communication between us is confidential.
I won't disclose your information unless:
You authorise me to (either for a specific disclosure or generally via the privacy notice), or
I'm required to by law or regulation
14.1. When we stop working together
When either of us chooses to end this engagement, I'll confirm this in writing with a disengagement letter (unless there's good reason not to).
14.2. What the disengagement letter will cover
The disengagement letter will confirm:
Any outstanding work that will be completed before we finish, including impending deadlines and required actions
Any outstanding work that won't be undertaken
Details of any outstanding fees
My document retention policy and return of documents
Arrangements for transferring information to a new adviser (if applicable)
14.3. Transferring to a new accountant
As a matter of good professional practice, and with your consent, I'll correspond with any new accountant you instruct to ensure a smooth transition. I have a professional obligation to provide your new adviser with all relevant information they require, subject to settlement of my fees.
14.4. If I can't contact you
If I have no contact with you for two years or more, I may send a disengagement letter to your last known address and cease to act.
14.5. How either of us can end this engagement
Either of us can terminate this engagement by giving at least 30 days' written notice to the other.
However, I may terminate immediately (without notice) if:
You fail to cooperate with me
I have reason to believe you've provided misleading information to me or HMRC
I'm required to do so under the Money Laundering Regulations (see Section 26)
14.6. Rights already accrued
Termination doesn't affect any rights either of us had built up before termination.
14.7. Other reasons I can terminate
I also have the right to terminate this engagement immediately if:
You fail to pay my invoices, or
You fail to provide complete, timely, or accurate information that I need to carry out our agreed services
14.8. Completing work in progress
If our engagement terminates, I'll try to agree arrangements with you for completing any work in progress - unless I'm legally or professionally required to stop work immediately. In that case, I won't be required to carry out further work and won't be responsible for any consequences of termination.
14.9. Final invoice
When our engagement ends (for whatever reason), I'll invoice you for all work completed up to that point that hasn't already been invoiced, at my normal rates.
14.10. When the engagement actually ends
My engagement with you ends once I've completed all the work I agreed to perform under this engagement.
14.11. No further duties after termination
Once our engagement has ended (for whatever reason), I have no further duty to act for you or advise you beyond the termination date.
15.1. How we'll communicate
I'll communicate with you and any agreed third parties using secure methods we've agreed upon.
15.2. Email communication
By providing me with your email address, you're authorising me to communicate with you by email (unless you tell me otherwise).
When you agree to email communication, you acknowledge that:
Despite all reasonable care, there's a risk of non-receipt, delays, misdirection, or interception by third parties
Although I use up-to-date virus protection, you're responsible for virus-checking emails and attachments
There are inherent risks with electronic communication, which you accept in return for speed and efficiency
15.3. Keep your contact details up to date
To ensure effective communication, please notify me promptly of any changes to your postal or email address.
16.1. How fees are quoted
I'll provide you with an estimate or fixed fee quotation for all services before starting work. Where I haven't provided a fixed fee and work is charged on a time basis, I'll inform you of my hourly rates for each person who may work on your assignment.
16.2. How fees are calculated
My fees are calculated based on several factors including:
Time spent on your affairs
Level of skill and responsibility involved
Complexity and importance of the work
Level of risk
My fees don't solely depend on the amount of time spent.
16.3. Fixed fees
I won't provide fixed fee quotations for work more than one year ahead, as fee quotes need to be reviewed in light of changing circumstances.
If it becomes apparent due to unforeseen circumstances that a fee quote is inadequate, I reserve the right to notify you of a revised figure and seek your agreement.
16.4. What's not included in quotes
Unless we agree otherwise, fee estimates and quotations don't include:
Disbursements or third-party costs
Counsel or other professional fees
VAT (which will be added where chargeable)
Any expenses I incur while carrying out your work will be added to invoices where appropriate.
16.5. Estimates vs fixed fees
If I provide you with an estimate (rather than a fixed fee), that estimate won't be contractually binding unless I explicitly state it will be.
Where I haven't agreed a fee in advance, charges will be calculated on a time basis at my then-current hourly rates.
16.6. Late information
If you provide information later than the agreed deadlines in your key dates schedule, I may charge an additional fee to meet submission deadlines.
16.7. Additional work
Any work beyond what's covered in a fixed fee quotation will be charged separately.
16.8. Volume-based pricing
Where fees depend on transaction volumes (like employee numbers or invoice counts), I'll regularly review these and update fees accordingly.
16.9. Payments on account
I may request advance payments toward my fees and disbursements.
16.10. When invoices are issued
I'll issue invoices at appropriate intervals according to our agreement and payment plan.
16.11. Payment terms
For monthly retainer clients: Payment is by Direct Debit, collected on the 1st of each calendar month via GoCardless. Direct Debit payment is a requirement of monthly package services.
For annual filing services and ad-hoc work: Invoices are payable within 14 days of the invoice date by bank transfer or Direct Debit.
16.12. Monthly payment plans
I may agree to spread your fees over monthly payments (by standing order or Direct Debit) for up to one year. Monthly payments will be calculated to cover the invoiced amount by the time work is completed.
If I need to revise the fee estimate during the work, I'll explain this in writing and ask you to adjust your monthly payments accordingly.
16.13. Third-party payments
If a third party (such as an insurance provider) is expected to pay my fees, you remain liable until those fees are paid in full.
16.14. Fee assistance and insurance
In some cases, you may be entitled to assistance with professional fees (particularly for HMRC investigations) through insurance policies or professional body membership.
Other than where such insurance was arranged through me, you'll need to advise me of any insurance cover you have. You remain liable for my fees regardless of whether all or part are covered by insurers.
16.15. Late payment
I reserve the right to charge interest on overdue accounts at 8% above the Bank of England base rate under the Late Payment of Commercial Debts (Interest) Act 1998.
16.16. Non-payment
If payment isn't received within 14 days of the due date, I reserve the right to:
Stop all work on your affairs
Suspend my services
Cease acting for you on giving written notice
I'll only exercise these rights where it's reasonable and fair to do so.
16.17. Company clients
For clients that aren't individuals (like companies), if fees can't be paid or are overdue, I'll seek payment from the individual (or parent entity) who instructed me, and I'm entitled to enforce fees against them.
16.18. Disputing fees
If you believe an invoiced fee isn't fair and reasonable, you must notify me within 10 days of receipt. If you don't, you'll be deemed to have accepted that payment is due.
16.19. Annual fee increases
Fees will increase annually in line with inflation.
17.1. Right to retain documents
Where permitted by law and professional guidelines, I reserve the right to retain all funds, documents, and records in my possession relating to work I've done for you until all outstanding fees and disbursements are paid in full.
18.1. Written advice
I'll endeavour to record all advice on important matters in writing. Advice given orally is not intended to be relied upon unless confirmed in writing.
If I provide oral advice (for example during a meeting or phone call) and you wish to rely on it, you must ask me to confirm it in writing.
18.2. Implementing advice
I'll only assist with implementing advice where we've agreed this in writing.
18.3. Advice is time-sensitive
Advice is valid at the time it's given. If you're implementing plans later, you need to confirm with me that there haven't been changes to relevant facts, laws, or regulations that would affect the advice.
18.4. Who the advice is for
Any advice I give is for the addressee of the engagement letter only. I accept no responsibility to anyone who isn't party to our agreement.
18.5. Don't share advice without permission
Don't pass any advice I give you to a third party without my express permission.
18.6. Purpose limitation
Advice can only be used for the purpose for which it was given.
19.1. Your responsibility for accurate information
You agree to provide full and accurate information that I need to advise you. I'll rely on your information and documents being true, correct, and complete. Unless we agree otherwise in writing, I won't audit your information or documents.
I'm not responsible for inaccuracies in information provided by you or third parties - my advice is based on the information you give me.
19.2. Deadline for providing information
If I ask for information by a specific date, I'm not responsible for losses that arise if you provide it late - even if you provide it before the official filing deadline.
For example, if I need your tax return information by 31st August and you provide it in December, I'm not responsible if something goes wrong, even though the January deadline hasn't passed.
19.3. Give me enough time
I strongly recommend you instruct me with enough time for me to give properly considered advice before any deadline.
19.4. Delays may end our engagement
If you delay providing information so much that I can't provide our agreed services, I may resign from the engagement.
19.5. Contacting third parties
You authorise me to contact any third parties I consider necessary to obtain information for our engagement.
19.6. Dealing with HMRC
When dealing with HMRC on your behalf, I'm required to be honest and take reasonable care to ensure your returns are correct. To enable me to do this, you must be honest with me and provide all necessary information on time.
You can find more about HMRC's Charter at www.gov.uk/government/publications/hmrc-charter. I'll do my best to ensure HMRC meets their obligations to you under the Charter.
19.7. Correcting material errors
You confirm that I may contact HMRC to advise them of any material errors I identify in your tax affairs without your prior written consent - although I'll of course let you know I'm doing this.
20.1. Copyright
I retain copyright in all documents I prepare for you, unless the law specifically provides otherwise.
21.1. Who my client is
My client is the business entity. If there's a dispute between owners and/or managers, I'll continue communicating with the Nominated Individual but will copy in everyone whose email details you've provided.
21.2. Conflicting instructions
If I receive conflicting advice, instructions, or information from different individuals, I'll refer everything to the board of directors/partnership/LLP/spouses (as appropriate) and won't take further action until you've confirmed the course of action as a unified entity.
22.1. Standard of care
I'll provide services with reasonable care and skill.
22.2. Liability cap
Unless otherwise specified in your engagement letter, my total liability for any claims arising from this engagement is limited to the lower of:
£50,000 (my Professional Indemnity Insurance limit), or
Three times the annual fee for services in the year the claim arose
22.3. What you're confirming
By accepting my engagement letter, you confirm that:
You've given proper consideration to this limitation of liability
You accept that it's reasonable in all the circumstances
You've had the opportunity to discuss this with me before acceptance
22.4. Higher limits
If you don't wish to accept this limitation or require a higher limit of liability, please contact me before signing the engagement letter. Higher limits may be available by arrangement and agreement of additional insurance premium charges, subject to insurer approval.
22.5. What I'm liable for
I'm only liable for losses, damages, costs, and expenses directly caused by my negligence or wilful default.
22.6. What I'm not liable for
I'm not liable for any indirect or consequential losses, including loss of profit, loss of goodwill, loss of business opportunity, or loss of anticipated savings.
22.7. Death or personal injury
Nothing in this section limits or excludes my liability for death or personal injury caused directly by my negligence.
23.1. When I'm not liable for losses
I'm not liable for losses, penalties, interest, or additional tax liabilities caused by:
Acts or omissions of any other person
Incomplete, misleading, or false information provided to me
Your failure to act on my advice
Your failure to provide me with relevant information
23.2. Referrals to other firms
Where I refer you to another firm for advice outside my remit (even if connected to our engagement), and you then instruct them directly, I accept no responsibility for their work and won't be liable for any losses they cause.
23.3. Circumstances beyond my control
I'm not liable for any delay or failure to perform my obligations if caused by circumstances outside my reasonable control.
24.1. When I'm not liable
I'm not responsible for any loss, damage, or expense if material information is withheld, concealed, or misrepresented to me. This applies equally to fraudulent acts, misrepresentation, or wilful default by any party and their directors, officers, employees, agents, or advisers.
24.2. Exception
This exclusion doesn't apply where the misrepresentation, withholding, or concealment should have been evident to me while carrying out the procedures I agreed to perform with reasonable care and skill, without further enquiry beyond what would have been reasonable in the circumstances.
25.1. Who can rely on my advice
My advice and information is for your sole use only - not for any third party you share it with (unless I've expressly agreed in the engagement letter that a specific third party may rely on it).
I accept no responsibility to third parties (including group companies not named in the engagement letter) for any advice, information, or materials I produce for you that you then share with them.
25.2. Enforcement of terms
Only parties to this agreement can enforce its terms. No rights or benefits are conferred on third parties under the Contracts (Rights of Third Parties) Act 1999.
26.1. If you share my advice without permission
You agree to indemnify me and my agents for any claim (including negligence claims) arising from unauthorised disclosure of my advice and opinions, whether written or oral, by you or anyone you're responsible for.
This indemnity covers all liabilities, costs, expenses, damages, and losses, including:
Direct, indirect, or consequential losses
Loss of profit and loss of reputation
Interest, penalties, and legal costs (on a full indemnity basis)
My time spent defending the claim (at my usual rates)
All other reasonable professional and management costs
27.1. Maximum total liability
Your engagement letter specifies my total liability limit. This is the maximum aggregate liability of my firm and anyone working for me (including subcontractors, agents, and consultants - current or former) to everyone named in the engagement letter and anyone I've agreed may rely on my work.
27.2. No personal claims
You agree not to bring any claim covered by this liability limit against me personally or against anyone working for me (current or former) on a personal basis.
28.1. When my responsibility starts
Unless otherwise agreed in your engagement letter, my work begins when I receive your implicit or explicit acceptance of that letter.
The start date for my responsibility is set out in the key dates table in your engagement letter.
28.2. If no start date is specified
If no start date has been added or agreed, services commence from the start date stated in your engagement letter or the date you sign and return it, whichever is later.
Except as stated in the engagement letter, I'm not responsible for periods before the start date.
28.3. When my responsibility ends
When either of us gives notice to end the engagement, the date my responsibility ends will be set out in the disengagement letter (see Section 14 - Disengagement).
29.1. Legal requirements
As with other professional services firms, I'm required to identify my clients for the purposes of UK anti-money laundering legislation.
29.2. What I need from you
I may request from you, and retain, such information and documentation as I require for anti-money laundering purposes and/or make searches of appropriate databases.
29.3. When I can start work
I won't usually be able to start working for you until I've completed these checks and received the necessary information.
29.4. Right to terminate
I may be required to terminate our engagement immediately under the Money Laundering Regulations if circumstances require it.
30.1. Professional standards
I'll observe and act in accordance with the bye-laws, regulations, and ethical guidelines of AAT, and will accept instructions to act for you on this basis.
30.2. Authority to correct HMRC errors
You give me the authority to correct errors made by HMRC where I become aware of them.
30.3. Compliance with regulations
I won't be liable for any loss, damage, or cost arising from my compliance with statutory or regulatory obligations.
31.1. Your legal responsibility
You have a legal responsibility to retain documents and records relevant to your tax and business affairs.
31.2. What I'll do with your documents
During our work, I may collect information from you and others relevant to your affairs. I'll return any original documents to you if requested, provided my fees are paid up to date.
31.3. How long you must keep records
Documents and records relevant to your tax affairs must be retained by law as follows:
Individuals, trustees and partnerships:
With trading or rental income: Five years and ten months after the end of the tax year
Otherwise: 22 months after the end of the tax year
Companies, LLPs and other corporate entities:
Six years from the end of the accounting period
31.4. When I can destroy papers
Whilst certain documents may legally belong to you, I may destroy correspondence and other papers that I store (electronically or otherwise) which are more than seven years old, unless you instruct me in writing to retain specific documents for a longer period.
You must tell me if you require the return or retention of any specific documents.
31.5. Keep your own copies
I recommend that you keep copies of all documents and records you provide to me.
31.6. What happens when we stop working together
If I continue holding records for you after our engagement ends, I'll agree with you how they should be treated.
32.1. Ensuring continuity
I'm committed to ensuring continuity of service to my clients.
32.2. Regulatory requirements
In accordance with AAT requirements, I maintain appropriate arrangements to protect client interests in the event of unforeseen circumstances affecting my ability to continue practice.
32.3. In case of emergency
In the unlikely event of permanent incapacity, illness, or cessation of practice, arrangements will be made to ensure your records remain secure and accessible.
32.4. Your freedom to choose
You remain free to appoint another accountant or firm at any time should you wish to do so.
33.1. Services beyond our agreement
I'll carry out additional services beyond those listed in your schedules if we agree to this in writing.
Additional services are subject to my usual fees and the terms of this engagement letter and these terms and conditions.
Any advice given for additional services can only be relied upon if I've confirmed it in writing.
34.1. If any provision is void
If any provision of these terms and conditions, the engagement letter, or attached schedules is held to be void, that provision will be deemed not to form part of this contract. The remainder of the agreement will be interpreted as if that provision had never been inserted.
34.2. In case of conflict
In the event of any conflict between these terms of business and the engagement letter or schedules, the relevant provision in the engagement letter or schedules will take precedence.
35.1. Required information
In accordance with the Provision of Services Regulations 2009 and AAT professional requirements, here is my regulatory information:
Professional Body: Association of Accounting Technicians (AAT)
AAT Licence Number: 1002103 (Licensed Accountant)
Professional Title: AAT Licensed Accountant
AAT Contact Details:
Association of Accounting Technicians
30 Churchill Place, London E14 5RE
Telephone: 020 7397 3000
Website: www.aat.org.uk
My Contact Details:
Eletty Accounting Services
Website: elettyaccounting.co.uk
Email: wendy@elettyaccounting.co.uk
Professional Indemnity Insurance: Details are provided in Section 11 of these terms and conditions and are available on my website.
Complaints Procedure: Details are provided in Section 12 of these terms and conditions.
VAT Registration: Not currently VAT registered