Terms of Business

The following terms of business apply to all engagements accepted by you, and all work is carried out under these terms, except where changes are expressly agreed in writing.

1. Applicable law

1.1 Our engagement letter, the schedules of services, and our standard terms and conditions of business, are governed by, and should be construed in accordance with, English law. Each party agrees that the courts of England will have exclusive jurisdiction, in relation to any claim, dispute, or difference concerning this engagement letter, and any matter arising from it, on any basis. Each party irrevocably waives any right to object to any action being brought in those Courts, to claim that the action has been brought in an inappropriate forum, or to claim that those Courts do not have jurisdiction.

1.2 We will not accept responsibility, if you act on advice previously given by us, without first confirming with us that the advice is still valid, in light of any change in the law, or in your circumstances. We will accept no liability for losses arising from changes in the law, or the interpretation thereof, that occur after the date on which the advice is given.

2. Client identification

2.1 As with other professional services firms, we are required to identify our clients, for the purposes of the UK anti-money laundering legislation. We may request from you, and retain, such information and documentation as we require for these purposes and/or make searches of appropriate databases. If we are not able to obtain satisfactory evidence of your identity, we will not be able to proceed with the engagement.

2.2 If you undertake business, that requires you to be supervised by an appropriate supervisory authority, to follow anti-money laundering regulations, including if you accept or make a high value cash payment of €10,000 or more (or equivalent in any currency), in exchange for goods, you should inform us.

2.3 Any personal data received from you, to comply with our obligations under The Money Laundering, Terrorist Financing and Transfer for Funds (Information on the Payer) Regulations 2017 (MLR 2017), will be processed only for the purposes of preventing money laundering, or terrorist financing. No other use will be made of this personal data, unless use of the data is permitted by, or under enactment, other than the MLR 2017, or we have obtained the consent of the data, subject to the proposed use of the data.

3. Clients’ money

3.1 We may, from time to time, hold money on your behalf. The money will be held in trust, in a client bank account, which is segregated from the firm’s funds. The account will be operated, and all funds dealt with, in accordance with ICAEW’s Clients’ Money Regulations.

3.2 We will promptly return monies, held on your behalf, as soon as there is no longer any reason to retain those funds. If any funds remain in our client account that are unclaimed, and the client to which they relate has remained untraced for five years, or we, as a firm, cease to practise, we may pay those monies to a registered Charity.

4. Commissions or other benefits

4.1 In some circumstances, we may receive commissions, or other benefits, for introductions to other professionals, or in respect of transactions, which we arrange for you.

4.2 If this happens, we will notify you in writing, within 60 days, of the amount and terms of payment, and receipt of any such commissions or benefits. The fees you would otherwise pay, will not be reduced by the amount of the commissions or benefits. You agree that we can retain the commission, or other benefits, without being liable to account to you for any such amounts. When we reduce the fees, that we would otherwise charge, by the amount of commission retained, we will apply the HMRC concession, which allows VAT to be calculated on the net fee, after deduction of the commission.

4.3 The following are examples of likely commissions that may be received by us and the likely amounts. These are examples only and may not cover all receipts in the future.

The typical commission earned is between £0 and £1,200.

4.4 If in the future, abnormally large commissions for example more than double the largest amount in 4.3 are received which were not envisaged when the engagement letter was signed, we will obtain specific consent to the retention of those commissions.

5. Confidentiality

5.1 Unless we are authorised by you to disclose information on your behalf, we confirm that, if you give us confidential information, we will, at all times during and after this engagement, keep it confidential, except as required by law, or as provided for in regulatory, ethical, or other professional pronouncements applicable to us, or our engagement.

5.2 You agree that, if we act for other clients who are, or who become your competitors, to comply with our duty of confidentiality, it will be sufficient for us to take such steps, as we think appropriate, to preserve the confidentiality of information given to us by you, both during and after this engagement. These may include taking the same or similar steps as we take in respect of the confidentiality of our own information.

5.3 In addition, if we act for other clients whose interests are, or may be adverse to yours, we will manage the conflict by implementing additional safeguards, to preserve confidentiality. Safeguards may include measures such as separate teams, physical separation of teams, and separate arrangements for storage of, and access to, information.

5.4 You agree that the effective implementation of such steps, or safeguards, as described above, will provide adequate measures to avoid any real risk of confidentiality being impaired.

5.5 We may, on occasion, subcontract work on your affairs to other tax or accounting professionals. The subcontractors will be bound by our client confidentiality terms.

5.6 We will inform you of the proposed use of a subcontractor, before they commence work, except where your data will not be transferred out of our systems, and the subcontractor is bound by confidentiality terms equivalent to an employee.

5.7 If we use external or cloud-based systems, we will ensure confidentiality of your information is maintained.

5.8 This applies in addition to our obligations on Data Protection in section [7]

6. Conflicts of interest

6.1 We will inform you, if we become aware of any conflict of interest in our relationship with you, or in our relationship with you and another client, unless we are unable to do so because of our confidentiality obligations. We have safeguards that can be implemented to protect the interests of different clients, if a conflict arises. If conflicts are identified, which cannot be managed in a way that protects your interests, we regret that we will be unable to provide further services.

6.2 If there is a conflict of interest, that is capable of being addressed successfully by the adoption of suitable safeguards to protect your interests, we will adopt those safeguards. In resolving the conflict, we would be guided by ICAEW’s Code of Ethics, which can be viewed at:-

icaew.com/en/membership/regulations-standards-and-guidance/ethics. .

During and after our engagement, you agree that we reserve the right to act for other clients, whose interests are, or may compete with, or be adverse to yours, subject, of course, to our obligations of confidentiality, and the safeguards set out in the paragraph on confidentiality above.

7. Data Protection

7.1 In this clause [7], the following definitions shall apply:

‘client personal data’ means any personal data provided to us by you, or on your behalf, for the purpose of providing our services to you, pursuant to our engagement letter with you;

‘Data Protection legislation’ means all applicable privacy and Data Protection legislation, and regulations, including PECR, the UK GDPR, and any other applicable national laws, regulations, and secondary legislation in the UK, relating to the processing of personal data, and the privacy of electronic communications, as amended, replaced, or updated, from time to time;

‘controller’, ‘data subject’, ‘personal data’, and ‘process’ shall have the meanings given to them in the Data Protection legislation;

‘UK GDPR’ means the Data Protection Act 2018, as amended by the Data Protection, Privacy and Electronic Communications (Amendments etc) (EU Exit) Regulations 2020; and

‘PECR’ means the Privacy and Electronic Communications (EC Directive) Regulations 2003 (SI 2426/2003), as amended by the Data Protection, Privacy and Electronic Communications (Amendments etc) (EU Exit) Regulations 2020.

7.2 We shall each be considered an independent data controller, in relation to the client personal data. Each of us will comply with all requirements, and obligations, applicable to us, under the Data Protection legislation, in respect of the client personal data.

7.3 You shall only disclose client personal data to us where:-

• you have provided the necessary information to the relevant data subjects regarding its use (and you may use or refer to our privacy notice, available at www.coatesandpartners.co.uk for this purpose);

• you have a lawful basis upon which to do so, which, in the absence of any other lawful basis, shall be with the relevant data subject’s consent; and

• you have complied with the necessary requirements under the Data Protection legislation, to enable you to do so.

7.4 Should you require any further details regarding our treatment of personal data, please contact our Data Protection Officer - mhathaway@coatesandpartners.co.uk

7.5 We shall only process the client personal data:-

7.1. in order to provide our services to you, and perform any other obligations, in accordance with our engagement with you;

7.2. in order to comply with our legal or regulatory obligations; and

7.3. where it is necessary for the purposes of our legitimate interests, and those interests are not overridden by the data subjects’ own privacy rights. Our privacy notice is available at  www.coatesandpartners.co.uk/privacy-policy contains further details as to how we may process client personal data.

7.6 For the purposes of providing our services to you, we may disclose the client personal data to members of our firm’s network, our regulatory bodies, or other third parties, for example, our professional advisors, or service providers. The third parties, to whom we disclose such personal data, may be located outside of the United Kingdom. We will only disclose client personal data to a third party (including a third party outside of the UK), provided that the transfer is undertaken in compliance with the data protection legislation.

7.7 We may disclose the client personal data to other third parties in the context of a possible sale, merger, restructuring, or financing of, or investment in, our business. In this event, we will take appropriate measures to ensure that the security of the client personal data continues to be ensured, in accordance with Data Protection legislation. If a change happens to our business, then the new owners may use our client personal data in the same way, as set out in these terms

7.8 We shall maintain commercially reasonable, and appropriate security measures, including administrative, physical, and technical safeguards, to protect against unauthorised, or unlawful processing of the client personal data, and against accidental loss, or destruction of, or damage to, the client personal data.

7.9 In respect of the client personal data, provided that we are legally permitted to do so, we shall promptly notify you in the event that:-

• we receive a request, from, or on behalf of, a relevant data subject, to exercise their data subject rights, under the Data Protection legislation, or a complaint, or any adverse correspondence, in respect of our processing of their personal data;

• we are served with an information, enforcement, or assessment notice (or any similar notices), or receive any other material communication, in respect of our processing of the client personal data, from the Information Commissioner’s Office, or any other supervisory authority); or

• we reasonably believe that there has been any incident, which resulted in the accidental, or unauthorised access to, or destruction, loss, unauthorised disclosure, or alteration of, the client personal data.

7.10 Upon the reasonable request of the other, we shall each co-operate with the other, and take such reasonable commercial steps, or provide such information as is necessary, to enable each of us to comply with the Data Protection legislation, in respect of the services provided to you, in accordance with our engagement letter with you, in relation to those services.

8.0 Disengagement

8.1 If we resign, or are asked to resign, we will normally issue a disengagement letter, to ensure that our respective responsibilities are clear.

9.0 Electronic and other communication

9.1 Unless you instruct us otherwise, we may, if appropriate, communicate with you, and with third parties, by email, or other electronic means. The recipient, is responsible for virus checking emails, and any attachments.

9.2 With electronic communication, there is a risk of non-receipt, delayed receipt, inadvertent misdirection, or interception by third parties. We use virus-scanning software, to reduce the risk of viruses, and similar damaging items being transmitted in emails, or by electronic storage devices. Nevertheless, electronic communication is not totally secure, and we cannot be held responsible for damage, or loss caused by viruses, or for communications, which are corrupted, or altered after despatch. Nor can we accept any liability for problems, or accidental errors, relating to this means of communication, especially in relation to commercially sensitive material. These are risks you must bear, in return for greater efficiency, and lower costs. If you do not wish to accept these risks, please let us know, and we will communicate by paper mail, other than when electronic submission is mandatory.

9.3 Any communication by us with you, sent through the postal, is deemed to arrive at your postal address, two working days after the day the document was sent.

10.0 Fees and payment terms

10.1 Our fees may depend, not only upon the time spent on your affairs, but also on the level of skill, and responsibility, and the importance and value of the advice we provide, as well as the level of risk.

10.2 Probate and Estate work Engagements

With regard to engagements regarding probate and estate work our typical hourly rates are from:

Principle in charge £270 per hour (plus VAT)
Manager £158 per hour (Plus VAT)

Please see our website for case studies and example costs.

10.3 If we provide you with an estimate of our fees, for any specific work, the estimate will not be contractually binding, unless we explicitly state that will be the case. Otherwise, our fees will be calculated on the basis of the hours worked by each member of staff, necessarily engaged on your affairs, multiplied by their charge-out rate, per hour, VAT being charged thereon.

10.4 If requested, we may indicate a fixed fee, for the provision of specific services, or an indicative range of fees, for a particular assignment. It is not our practice to identify fixed fees for more than a year ahead, as such fee quotes need to be reviewed, in the light of events. If it becomes apparent to us, due to unforeseen circumstances, that a fee quote is inadequate, we reserve the right to notify you of a revised figure, or range, and to seek your agreement thereto.

10.5 In some cases, you may be entitled to assistance with your professional fees, particularly in relation to any investigation into your tax affairs by HMRC. Assistance may be provided through insurance policies you hold, or via membership of a professional, or trade body. Other than where such insurance was arranged through us, you will need to advise us of any such insurance cover you have. You will remain liable for our fees, regardless of whether all, or part, are liable to be paid by your insurers.

10.6 Our invoices will be due for payment within 30 days of issue. Our fees are exclusive of VAT, which will be added where it is chargeable. Any disbursements we incur, on your behalf, and expenses incurred in the course of carrying out our work for you, will be added to our invoices, where appropriate.

10.7 Unless otherwise agreed to the contrary, our fees do not include the costs of any third party, counsel, or other professional fees. If these costs are incurred to fulfil our engagement, such necessary additional charges may be payable by you.

10.8 It is our normal practice to ask clients to pay by monthly Direct Debit and, periodically, to adjust the monthly payment, by reference to actual billings.

10.9 We reserve the right to charge interest on late paid invoices, at the rate of [8%] above bank base rates, under the Late Payment of Commercial Debts (Interest) Act 1998. We also reserve the right to suspend our services, or to cease to act for you, having given written notice, if payment of any fees is unduly delayed. We intend to exercise these rights, only if it is fair, and reasonable to do so.

10.10 If you do not accept that an invoiced fee is fair and reasonable, you must notify us within 21 days of receipt, failing which, you will be deemed to have accepted that payment is due.

10.11 If a client company, Trust or other entity is unable or unwilling to settle our fees, we reserve the right to seek payment from the individual (or parent company), giving us instructions on behalf of the client, and we shall be entitled to enforce any sums due, against the group company, or an individual nominated to act for you.

11.0 Help us to give you the best service

11.1 We are committed to providing you with a high-quality service, that is both efficient and effective. If, at any point you would like to discuss with us how our service to you could be improved, or if you are dissatisfied with the service you are receiving, please let us know, by contacting us.

11.2 We will consider carefully any complaint you may make, about our service, as soon as we receive it, and do all we can to explain the position to you. We will acknowledge your letter, within five business days of its receipt, and endeavour to deal with your complaint, within eight weeks. No fees will be charged to you in relation to any complaints raised, our complaints handling is free of charge.
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11.3 If we do not answer your complaint to your satisfaction, you may, of course, take up the matter with our professional body, ICAEW. For reserved legal services, you may take up the matter with the Legal Ombudsman.

11.4 Should we be unable to resolve your complaint, you may also be able to refer your complaint to an alternative dispute resolution (ADR) provider, to try and reach a resolution. We will provide details of an ADR provider, if we cannot resolve your complaint, using our internal procedures. This is in addition to your ability to complain to ICAEW.

12.0 Intellectual property rights and use of our name

12.1 We will retain all intellectual property rights, in any document prepared by us, during the course of carrying out the engagement, except where the law specifically states otherwise.

12.2 You are not permitted to use our name, in any statement or document you may issue, unless our prior written consent has been obtained. The only exception to this restriction would be statements, or documents that, in accordance with applicable law, are to be made public.

13.0 Interpretation

13.1 If any provision of our engagement letter, or terms of business, is held to be void, that provision will be deemed not to form part of this contract. In the event of any conflict between these terms of business, and the engagement letter, or appendices, the relevant provision in the engagement letter, or schedules, will take precedence.

14.0 Internal disputes within a client

14.1 If we become aware of a dispute between the parties who own the business, or who are in some way involved in its ownership and management, it should be noted that our client is the business, and we would not provide information, or services to one party, without the express knowledge and permission of all parties. Unless otherwise agreed by all parties, we will continue to supply information to the normal place of business, for the attention of the Directors. If conflicting advice, information, or instructions are received from different Directors in the business, we will refer the matter back to the Board of Directors, and take no further action, until the Board has agreed the action to be taken.

15.0 Investment advice (including insurance distribution services)

15.1 Investment business is regulated by the Financial Services and Markets Act 2000. If, during the provision of professional services to you, you need advice on investments, including insurances, we may have to refer you to someone, who is authorised by the Financial Conduct Authority, or licensed by a Designated Professional Body, as we are not.

15.2 In the unlikely event that we cannot meet our liabilities to you, you may be able to claim compensation under the Chartered Accountants’ Compensation Scheme, in respect of exempt regulated activities undertaken. Further information about the scheme, and the circumstances in which Grants may be made, is available on ICAEW's website: www.icaew.com/cacs

15.3 In relation to the conduct of insurance distribution activities, we are an ancillary insurance intermediary. We are not authorised by the Financial Conduct Authority. However, we are included on the register maintained by the Financial Conduct Authority, so that we can carry on insurance distribution activity, which is broadly the advising on, selling, and administration of insurance contracts. This part of our business, including arrangements for complaints, or redress, if something goes wrong, is regulated by ICAEW. The register can be accessed from the Financial Conduct Authority’s website at www.fca.org.uk/register.

16.0 Lien

16.1 Insofar as we are permitted to do so by law, or by professional guidelines, we reserve the right to exercise a lien over all funds, documents, and records in our possession, relating to all engagements for you, until all outstanding fees and disbursements are paid in full.

17.0 Limitation of third party rights

17.1 The advice and information we provide to you, as part of our service, is for your sole use, and not for any third party, to whom you may communicate it, unless we have expressly agreed in the engagement letter, that a specified third party may rely on our work. We accept no responsibility to third parties, including any group company to whom the engagement letter is not addressed, for any advice, information, or material produced, as part of our work for you, which you make available to them. A party to this agreement, is the only person who has the right to enforce any of its terms, and no rights or benefits are conferred on any third party, under the Contracts (Rights of Third Parties) Act 1999.

18.0 Period of engagement and termination

18.1 Unless otherwise agreed in our engagement letter, our work will begin when we receive implicit or explicit acceptance of that letter. Except as stated in that letter, we will not be responsible for periods before that date.

18.2 Each of us may terminate our agreement, by giving not less than 21 days’ notice in writing to the other party, except if you fail to cooperate with us, or we have reason to believe that you have provided us [or HMRC] with misleading information, in which case we may terminate this agreement immediately. Termination will be without prejudice to any rights that may have accrued, to either of us, before termination.

18.3 We reserve the right to terminate the engagement between us, with immediate effect, in the event of: your insolvency, bankruptcy, or other arrangement being reached with creditors; an independence issue, or change in the law, which means we can no longer act; failure to pay our fees, by the due dates; or either party being in breach of their obligations, if this is not corrected within 30 days of being asked to do so.

18.4 In the event of termination of our contract, we will endeavour to agree with you, the arrangements for the completion of work in progress at that time, unless we are required, for legal or regulatory reasons, to cease work immediately. In that event, we will not be required to carry out further work, and shall not be responsible, or liable, for any consequences arising from termination.

19.0 Professional rules and statutory obligations

19.1 We will observe and act, in accordance with the Bye-laws, regulations, and Code of Ethics of ICAEW, including Professional Conduct in Relation to Taxation, and will accept instructions to act for you, on this basis. In particular, you give us the authority to correct errors, made by HMRC, if we become aware of them. We will not be liable for any loss, damage, or cost, arising from our compliance with statutory, or regulatory obligations. You can see copies of these requirements at our offices. The requirements are also available online at icaew.com/en/membership/regulations-standards-and-guidance.

19.2 We confirm that we are accredited for the reserved legal activity of non-contentious Probate. When conducting Probate work, we are required to comply with ICAEW’s Probate Regulations, which can be accessed at icaew.com/en/membership/regulations-standards-and-guidance/reserved-legal-services.]

20.0 Quality control

20.1 As part of our ongoing commitment to provide a quality service, our files are periodically reviewed by an Independent Regulatory, or Quality Control body. These reviewers, are highly experienced professionals, and are bound by the same rules of confidentiality as our Principals, and staff.

20.2 When dealing with HMRC on your behalf, we are required to be honest, and to take reasonable care to ensure that your Returns are correct. To enable us to do this, you are required to be honest with us, and to provide us with all necessary information, in a timely manner. For more information about ‘Your Charter’, for your dealings with HMRC, visit https://www.gov.uk/government/publications/hmrc-charter. To the best of our abilities, we will ensure that HMRC meet their side of the Charter, in their dealings with you.

21.0 Reliance on advice

21.1 We will endeavour to record all advice, on important matters, in writing. Advice given orally, is not intended to be relied upon, unless confirmed in writing. Therefore, if we provide oral advice (for example, during the course of a meeting, or a telephone conversation), and you wish to be able to rely on that advice, you must ask for the advice to be confirmed by us, in writing. Advice is valid, as at the date it was given.

22.0 Retention of papers

22.1 You have a legal responsibility to retain documents, and records, relevant to your financial affairs. During the course of our work, we may collect information from you, and others, relevant to your tax and financial affairs. We will return any original documents to you [if requested]. Documents and records, relevant to your tax affairs, are required, by law, to be retained as follows:-

Individuals, Trustees and Partnerships:-
• with trading or rental income: five years and 10 months after the end of the tax year
• otherwise: 22 months after the end of the tax year.

Companies, Limited Liability Partnerships, and other corporate entities:
• six years from the end of the accounting period.

22.2 Although certain documents may legally belong to you, we may destroy correspondence, and other papers, that we store electronically, or otherwise that are more than seven years old, except documents we think may be of continuing significance. You must inform us if you wish us to keep any document for any longer period.

23.0 The Provision of Services Regulations 2009

23.1 We are licensed by ICAEW, to carry out the reserved legal activity of non-contentious Probate, in England and Wales. Details about our Probate registration can be viewed at icaew.com/probate, under reference number C001255575

23.2 Our professional indemnity insurer is HCC International Insurance Company Plc. The territorial coverage is worldwide, excluding professional business carried out from an office in the United States of America or Canada, and excludes any action for a claim brought in any Court in the United States or Canada.

24.0 Timing of our services

24.1 If you provide us with all information, and explanations, on a timely basis, in accordance with our requirements, we will plan to undertake the work, within a reasonable period of time, to meet any regulatory deadlines. However, failure to complete our services, before any such regulatory deadline, would not, of itself, mean that we are liable for any penalty, or additional costs arising.

25.0 Limitation of Liability

25.1 We have discussed with you, the extent of our liability to you, in respect of the professional services described in this engagement letter (the professional services). Having considered both your circumstances, and our own, we have reached a mutual agreement that £100,000, represents a fair maximum limit to our liability.

25.2 In reaching this agreement, it is also agreed that:

• in the event of any claim for loss or damage, arising from the professional services, you have agreed that the sum of £100,000, represents the maximum total liability to you, in respect of the firm, its Directors, and staff; this maximum total liability, applies to any, and all claims, made on any basis and, therefore, includes any claims in respect of breaches of contract, tort (including negligence), or otherwise, in respect of the professional services, and shall also include interest;

• we confirm that the limit, in respect of our total aggregate liability, will not apply to any acts, omissions, or representations, that are in any way criminal, dishonest, or fraudulent, on the part of the firm, its Directors, or employees, or any other liabilities, that cannot be lawfully limited, or excluded; and

• you have agreed that you will not bring any claim, of a kind that is included within the subject of the limit, against any of our Directors, or employees, on a personal basis.