Chapter 11

Question 1

Should a member implement a policy for retention of documents and records?

Answer 1

Yes

Question 2

What’s the retention period for accounting records for a private company?

Answer 2

3 years from the date on which they are made

Under Companies Act 2006

Question 3

What’s the retention period for a public company?

Answer 3

Six years from the date on which they are made

Under Companies Act 2006

Question 4

What’s the retention period for payroll records, including overtime / bonuses / expenses

Answer 4

Six years + current year

Under Taxes Management Act 1970

Question 5

What’s the retention period for income tac records for an employee who has left

Answer 5

Six years after employment ceases

Under Taxes Management Act 1970

Question 6

What’s the retention period for Vat records

Answer 6

Six years (10 years if using VAT MOSS service)

Under Value Added Tax Act 1994

Question 7

What’s the retention period for tax records for a person carrying on trade, profession or business alone or in partnership or a company

Answer 7

Five years from 31 Jan following the tax year which the tax return relates to

Under Taxes Management Act 1970

Question 8

No client information may be divulged to a third party by a member unless what?

Answer 8

• Client specifically permits this

* There is a legal or professional duty to disclose

Question 9

What is meant by legal professional privilege

Answer 9

A common law privilege which protects communications between a professional legal adviser and their client

Question 10

What is a lien?

Answer 10

A legal right to retain possession of property until a financial claim that a holder if the property has against its owner has been met

Question 11

Before exercising a lien, a member should consider what?

Answer 11

• Whether all possible steps have been taken to remove genuine sense of grievance
• Whether potential loss of goodwill outweighs the financial considerations
• Whether to take legal advice or recommend the client to take specialist legal advice

Question 12

What can a lien not exist over?

Answer 12

• The books or documents of registered company that by statute have to be available for public inspection
• The VAT records of any business

Question 13

The drafting of documents which may only be prepared by those with such qualification will fall within which activities?

Answer 13

Reserves instrument activities

Question 14

A member must comply with their obligation undertake relevant Data Protection legislation, give examples of what they should unsure they do

Answer 14

• Obtain documented instructions
• Maintain records of all processing activities
• Are able to identify and document under what basis they are processing data
• Consider the reporting requirements
• Store data confidentially and securely
• Have appropriate consent
• Issue an appropriate privacy notice to clients