Responsibilities of the designated members
- As designated members you are responsible for ensuring that the LLP maintains proper accounting records and for preparing accounts which give a true and fair view and which have been prepared in accordance with the Companies Act 2006. You are responsible for ensuring that, to the best of your knowledge and belief, financial information, whether used by the LLP or for the accounts, is reliable.
- You are responsible for ensuring that the activities of the LLP are conducted honestly and that its assets are safeguarded, and for establishing arrangements designed to deter fraudulent or other dishonest conduct and to detect any that occur.
- You are responsible for ensuring that the LLP complies with laws and regulations applicable to its activities, and for establishing arrangements designed to prevent any non-compliance with laws and regulations and to detect any that occur.
Responsibilities of the Accountants
- We shall compile the annual accounts based on the accounting records maintained and the information and explanations given to us by yourselves. We shall compile draft annual accounts for your approval. We shall plan our work on the basis that no report is required by statute or regulation for the year, unless you inform us in writing to the contrary.
- Our work as the compilers of the annual accounts will not be an audit of the accounts in accordance with Auditing Standards. Consequently our work will not provide any assurance that the accounting records or the accounts are free from material misstatement, whether caused by fraud, other irregularities or error.
- We shall report, with any variations that we consider may be necessary, that in accordance with your instructions, we have compiled the accounts from the accounting records of the business and from the information and explanations supplied to us.
- We have a professional duty to compile accounts that conform to generally accepted accounting principles. Where we identify that the accounts do not conform to accepted accounting principles, or if the accounting policies adopted are not immediately apparent, we will report this to you.
- As part of our normal procedures we may request you to provide written confirmation of any information or explanations given to us orally during the course of our work.
- You are responsible for determining whether, in respect of the year, the LLP meets the conditions for exemption from an audit, namely that:
1. it qualifies as a small LLP in relation to that year;
2. its turnover in that year is not more than £6.5 million; and
3. its balance sheet total for the year is not more than £3.26 million.
- You are responsible for determining whether, in respect of the year, the exemption is not available for any of the reasons; namely that at no time during the year was the LLP:
1. an authorised person or an appointed representative under the Financial Services Act 1986/Financial Services & Markets Act 2000;
2. a special register body as defined in section 117(1) of the Trade Union and Labour Relations (Consolidation) Act 1992 or an employers' association as defined in section 122 of that Act;
3. a member of a group that exceeded the group exemption limits; or
4. a member of an ineligible group.
- The exemption is available only if you, as members, sign a declaration on the balance sheet to stating that:
1. for the year in question, the LLP is eligible to take advantage of the audit exemptions;
2. the members have not required the LLP to obtain an audit of its financial statements for the year in accordance with the Companies Act 2006; and
3. you acknowledge your obligations to keep proper accounting records and to prepare financial statements which give a true and fair view of the state of the LLP's affairs and of its profit or loss for the period.
- If the LLP is totally exempt from audit, we have no statutory responsibilities to the LLP at all. Our only responsibilities arise from those specifically agreed upon between us in respect of other professional services.
- We will prepare the income tax and capital gains tax computations based on the LLP’s accounts from the accounting records and other information and explanations provided by you.
- We will prepare the LLP`s annual partnership return, including the statement of total income, gains, losses, tax credits and charges of the LLP for each period of account ending in the return period.
- We will send you the income tax and capital gains tax computations and the tax return and supporting schedules for you to approve and sign. We will then submit it with the accounts and computations, to H M Revenue & Customs (HMRC). You authorise us to file the return electronically.
- We will advise all the members who were members in the LLP during the period of their respective shares of the LLP`s total income, gains, losses, tax credits and charges so that they are able to file their personal self-assessment tax returns within the relevant time period.
- We will give advice to the members so that they can inform the LLP what amounts of tax are due in respect of their income and gains and we will advise as to appropriate amounts of tax and Class 4 national insurance contributions to be paid and the dates by which the LLPs should make the payments. In order to do this we will need to be supplied with relevant information by the members.
- We will deal with the HMRC regarding any amendments required to the partnership return and prepare any amended returns which may be required.
- We will advise as to possible claims and elections arising from the tax return and from information supplied by you. Where instructed by you, we will make such claims and elections in the form and manner required by the HMRC.
- We will deal with all communications relating to the partnership return addressed to us by the HMRC or passed to us by you. However, if the HMRC choose the partnership tax return for enquiry this work may need to be the subject of a separate assignment in which case we will seek further instructions from you.
- We will prepare the tax provisions and disclosures to be included in the LLP`s financial accounts.