The purpose of this schedule and the Standard Terms of Business is to set out the basis on which we are to act as accountants and advisors with regard to payroll payment services and to clarify our respective responsibilities.
1.1 Legal Obligations
You are legally responsible for:
Ensuring that payroll data, including employee details and payment amounts, is accurate, complete, and provided on time.
Ensuring sufficient funds are available in your designated accounts to meet payroll obligations.
Reviewing and authorizing payroll schedules and payments prepared by us before disbursement.
Failure to comply with your responsibilities may result in penalties, fines, or other consequences. Legal responsibility for payroll obligations cannot be delegated to others. You agree to review all payroll schedules and payment instructions to confirm accuracy before approval.
1.2 Provision of Information
To enable us to carry out our work, you agree: (a) To provide accurate, complete, and timely payroll data, including gross pay, statutory deductions, tax codes, and employee details. (b) To promptly notify us of changes to employee details, pay rates, working arrangements, or statutory requirements. (c) To provide information in sufficient time to allow for payroll processing and payment by the agreed due date. Failure to do so may delay payments, and we reserve the right to charge for rush work. (d) To authorize us to approach relevant third parties (e.g., pension providers or HMRC) for information necessary to process payroll payments.
1.3 Statutory and Regulatory Compliance
(a) You are responsible for complying with employment laws, including National Minimum Wage requirements, pension auto-enrolment, and any off-payroll (IR35) obligations. (b) You are responsible for determining the employment status of workers and ensuring compliance with HMRC's guidelines. If assistance is required, you must instruct us separately.
1.4 Authorizations
You will: (a) Ensure all payment authorizations are provided by an agreed individual(s) to avoid delays. (b) Forward HMRC statements of account, notices, and other correspondence promptly to us for action within statutory deadlines.
2.1 Payroll Processing
We will: (a) Prepare payroll payment schedules based on the data you provide, including statutory deductions such as PAYE, National Insurance, pensions, and other third-party deductions. (b) Calculate payments due to employees, contractors, HMRC, and pension providers, as required. (c) Provide you with payroll reports for review and approval before payments are processed.
2.2 Disbursement of Payments
(a) Upon your authorization, we will prepare and/or submit payment instructions via your designated banking or payment platform. (b) We will not process any payments without your explicit approval.
2.3 Reporting and Records
We will: (a) Provide you with periodic payroll summaries, including details of net pay, deductions, and employer contributions. (b) Retain payroll records in accordance with applicable UK legislation and GDPR requirements.
2.4 HMRC Communications
We will: (a) Handle all communications with HMRC related to payroll matters, including RTI submissions, if authorized by you. (b) Notify you of any compliance requirements, deadlines, or changes in statutory obligations.
2.5 Advisory Services
If instructed, we will: (a) Advise you on statutory compliance, including tax codes, employment status, and IR35 obligations. (b) Assist with the preparation and submission of amended payroll returns or responses to HMRC enquiries.
2.6 Exclusions
Our payroll payment services do not extend to: (a) Advising or assisting with non-UK tax obligations, including VAT or equivalent taxes in other jurisdictions. (b) Employment tribunal cases or legal disputes related to payroll. (c) Ensuring compliance with your obligations unless separately instructed and agreed.
(a) Our fees for Payroll Payment Services will be charged as per the agreed fee schedule. (b) Invoices for our services will be issued monthly and are payable within 14 days of the invoice date. (c) Late payments will incur interest at 8% above the Bank of England base rate, as per the Late Payment of Commercial Debts (Interest) Act 1998. (d) Additional fees may be charged for rush work, amendments to payroll records, or services outside the agreed scope.
4.1 Data Protection
We process personal data in accordance with the UK GDPR and Data Protection Act 2018. All employee data will be handled securely and used solely for payroll purposes.
4.2 Anti-Money Laundering (AML)
We comply with the Money Laundering Regulations 2017 and may request documentation to verify the legitimacy of payroll transactions.
4.3 General Anti-Abuse Rule (GAAR)
We do not advise on artificial or aggressive tax planning schemes that fall under the UK’s General Anti-Abuse Rule.
(a) Either party may terminate this Agreement by providing 30 days’ written notice. (b) Upon termination, we will provide a summary of payroll processed to date and assist with the transition of payroll responsibilities to another provider, subject to additional fees.
This Agreement shall be governed by and construed in accordance with the laws of England and Wales. Any disputes arising under this Agreement shall be subject to the exclusive jurisdiction of the courts of England and Wales.
Effective Date: 24 July 2025