Chaper 1-10 Flashcards
Member owes a duty to act with
Reasonable care and skill
Honesty
Integrity
Impartiality
Professionalism
Individual voluntary arrangement
Must notify CIOT/ATT within two months of entering into an inidividual voluntary arrangement or becoming subject to a bankruptcy order
If don’t notify their membership shall cease automatically after the 2 month expiry
CIOT/ATT considers = continuing membership, referring to TBD or exclusion
If exclusion, member can appeal within 31 days from notification
Inform CIOT ATT of certain criminal offences within two months
Arrested on suspicion of / charged with / convicted of a criminal offence
Summary only road traffic offences
Have accepted a caution for a nominal offence
Don’t need to report speeding if you go on a course or receive a fixed penalty
Notify CIOT/ATT within two months if
Notified id disciplinary / regulatory action held against them by another professional body to which a member belongs
Dismissed for gross misconduct
Disqualified as a director or trustee
Receive a dishonest tax agent conduct notice
Receive a monitoring notice from HMRC under POTAS legislation
How long does member have to respond to TBD
30 days
Regulated investment business examples
Investment and pension advice
Advice on general (non-investment) insurance contracts
Establishing, operating or winding up and investment scheme or personal pension scheme
For an activity to be a regulated activity must be by way of business
Member who is with a firm not authorised by FCA and not a member of a DPB (designated professional body) should not carry out regulated activities and doing so is a criminal offence
Members of DPB may provide restricted range of incidental investment services
Financial services and markets act 2000
What’s an exempt retired wcitith
What is in the engagement letter pack
Covering letter
Schedule for various specific services
Standard terms and conditions of business
Privacy notice
Cancellation notices for consumers
What is in an engagement letter
Covering matter with privacy notice and possibly a separate fee schedule
Schedule of services
Standard terms and conditions of business Privacy notice
Covering matter with privacy notice and possibly a separate fee schedule
Schedule of services
Standard terms and conditions of business
What’s in the covering letter
Who we are acting for
Period or engagement
Scope of services
Automatic exchange of info and FATCA
Fees
Limitation of liability
Agreement of letter
GDPR
Right to cancel
What’s in schedule of services
The services and the scope as well as client responsibilities
Disclaimers
What’s in standard terms and conditions of the business
Applicable law
Client identification and verification
Commission and other benefits
Complaints
Confidentiality
Data protection
Disengagement
Fees and payment terms
Limitation of liability
Introduction fees
Member may pay fee to third party in return for introduction of a new client provided
- member has no reason to believe that undue pressure or influence was exerted on the prospective client by the third party
- before accepting instructions, member has disclosed to the prospective client the amount of fee and the identity of third party recipient
What are the lawful basis data can be processed under article 6(1) of GDPR
Consent
Contrast
Legal obligation
Vital interests
Public task
Legitimate interests
How can commissions be accounted for to a client
Member pays the full amount direct to the client
Members reduces the amount from fees invoiced and shows this on the fee note
What does advice communication include
Purpose for which the advice is required and clients objectives
Background facts and assumptions on which the advice is based
Alternatives open to the client
Risks associated with the advice
Relevant caveats and exclusions
What do records include
All written communications relating to clients tax affairs
File notes of meetings and telephone conversations which should be contemporaneous and dated
Records of how advice is given including technical research consultations
Client money
Must be kept separately from members money in a designated account
Sums over £10k held for more than 30 days should kept in a single dedicated account
What is addressed in letter of disengagement
Summary of services provided up to the date of ceasing to act
A note of further action to be taken by a member
A note of any outstanding matters than either the ex client or new advisors will need to address
Details of impending deadlines and actions required
Members willingness to assist new advisors to resolve outstanding issues and provide new advisors copy papers
Details of any outstanding fees
A note indicating whether a member of their successor is to advise HMRC of the change
Main statutory retention periods for clients
Companies act 2006
- accounting records for a private company - 3 years from date made
- accounting records for public company - 6 years from date made
Taxes Management Act 1970
- payroll records - six years ans current year
- income tax records for employee who left - six years after employment ceases
Value added tax act 1994
- var records - 6 years (10 if VAT MOSS service)
Taxes management act 1970
- tax records for a person - 5 years from 31 Jan filling year which tax return relates to
PRPG RECOMMENDS 7 years FROM THE END OF THE TAX YEAR TO EHICH THEY RELATE
What should be considered before exercising a lien
Whether all possible steps have been taken to remove any genuine sense of grievance or the clients part as to the amount of the bill
potential loss of goodwill both towards the member and tax profession as a whole
Whether to take specialist legal advice
CTA rules advertising
Can’t use the letters or refer to yourself as ACA etc unless CIOT authorises
Can only describe yourself as chartered tax if it complies with CIOT and ATT website
Can’t use coat of arms
Can’t use logos without CIOT or ATT permission
What’s the advertising standards authority code
Legality
Decency
Clarity
Honesty
Truthfulness
Five fundamental principles
Integrity
Objectivity
Professional competence and due care
Confidentiality
Professional behaviour
