Chapter 4 Flashcards
Is an engagement letter compulsory?
No, but strongly recommended
Should a member accept a new client without speaking to the previous adviser?
No, should ask previous adviser in writing if there is any professional reason why they shouldn’t acce[t the new client
A practitioner must always be aware of their under obligations under what directive?
Services directive
Should also aware of obligations under professional conduct in relation to Taxation
what must document must an engagement letter include?
- Covering letter
- Schedules for various specific services
- standard terms and conditions of business
- Privacy notice
- Cancellation notices for consumers
True of false
A Lack of engagement letter may affect a member’s PII premium
True
When should new engagement letters be issued?
- If the status of the practitioner alters
* if a merger / demerger takes place
What should a covering letter in an engagement letter include?
- Who we are acting for
- Period of engagement
- Scope of services
- Automatic Exchange of information (AEOI)
- Fees
- Limitation of liability
- Agreement of letter
The sources of personal data collected needs to be included in what? and give exampled of these sources
The privacy notice
Sources include: • Spouse / partner • HMRC • employer / partnership / LLP / Company • Electronic ID verification providers • Thirds parties
How long should personal data be kept?
No longer than necessary - 7 years
What is a consumer?
An individual acting for purposes that are wholly or mainly outside that individual’s trade, business, craft or profession.
How can commissions be accounted for to clients?
by paying the whole amount to the client or by deducting it from fees and showing such deductions on fee note
What should a disengagement letter include?
- Summary of services provided up to date of ceasing to act
- Note of any further action to be taken
- Note of outstanding matters
- details of any impending deadlines
- Details of outstanding fees
- A note indicating whether a practitioner or their successor is to advise HMRC of the change
List possible fee arrangements
- Time and expense
- Fixed fees
- Contingent or success fees
- Fees that may be covered in whole or in part by professional fee insurance
Should fees be inclusive or exclusive of VAT?
Exclusive
What is a trader?
A person acting for purposes relation to that person’s trade, business, craft or profession, whether acting personally or through another person
