The Disengagement Process

Introduction

• The Approach to this and all Articles is consistent with our Standard System and Procedure.
• The engagement process involves agreeing the disengagement process as part of the engagement.
• Likely reasons for disengagement:
  • Death.
  • Retirement.
  • Sale of Business.
  • On completion a specific fixed assignment.
  • Change in circumstances.
  • Divorce between Partners.
  • For many other reasons.
• The process is recommended and prescribed by the Institute of Chartered Accountants in England & Wales (ICAEW).
• It is mandatory in our Terms & Condition of Professional Indemnity insurance.
• It is a good business Practice.
• This article explains the stages, legal professional requirements.
• Sets out the terms and conditions.

Professional Clearance

• After your confirmation that all assignments have been completed satisfactorily.
• It is confirmed that nothing is outstanding.
• Alternatively any agreed assignments to be carried out before disengagement process starts.
• All commercial matters have been settled satisfactorily.
• Within 30 days from your notice you notify us of any likelihood of any complaints:
  • Institute of Chartered Accountants in England & Wales.
  • So we can advise our professional Indemnity Insurers.
• All liabilities of any type will terminate unless notified within 90 days
• We will deal with the following:
  • Give professional clearance to your new advisors, where and if required.
  • As soon as we have been given clear instructions to do so.
  • Provided, by you together with their contact details.
  • They write to us.
  • For Legal and Professional Clearance (and nothing else)
• There will be two types of professional clearance:
  • Individuals
  • Company’s

No Information Given Directly

• For legal, professional and PI Insurance reasons, we will not give any information directly to your new advisors.
• This information will be supplied only to you at our current charge out rate £250 per hour, payable in advance or as may be agreed with as part of the “Disengagement Terms”.
• The reason for the above charge is that all information agreed in the letter of engagement would have supplied to you in its entirety, in a contemporaneous manner.

Dialogue Free of Charge

• From the date of the first communication from your new advisors, we will enter into a dialogue with them, free of charge, 24 working hours.
• Thereafter, any time spent with the client or the advisors will become chargeable at our standard rate of £250 per hour or as may be agreed as part of the “disengagement terms”.

Your Information and Records

• All information is handed to you at the time the activity is carried out or is provided by you using your cloud system.
• Further, all filing at Companies House and HM Revenue & Customs (HMRC) is done with your approval (following the forwarding of all documents to you).
• As a result, no information will be provided to you or the new advisors again.
• This includes information relating to your accounting records, books, accounts, tax and statutory matters.
• All documentation required must be requested within seven working days from the date of commencement of disengagement.
• Where you require the above information once again, we may be able to provide this to you, subject to an additional charge, agreed before the event.

Avar’s Responsibilities

• The following matters will be dealt with by us at no additional cost, relating to companies
  • Change of Registered Address.
  • Change of Service Address.
  • Immediate Resignation of Avar Secretaries Ltd.
  • Release of Companies House Authentication Code.
• Unless you advise us otherwise, at the point of disengagement, we will use your last known home address as your new address.
• We will release your company’s HM Revenue & Customs (HMRC) Gateway credentials if we set it up on your behalf.
• Avar do not maintain your personal (SATR) credentials with the HM Revenue & Customs (HMRC) as all affairs are handled via our agent’s Gateway account.
• Using our Agent’s gateway, we will remove ourselves from all communication being sent to us by HM Revenue & Customs (HMRC).
• As a result, we will not be party to nor be responsible for any action required to be taken within any time limits.

Finalising Disengagement

• A member of the Avar Team will then telephone to bring our engagement to a close and ensure that all your issues are addressed.
• The disengagement process will then be complete.
• All information is archived to our external servers and will be retained for six years.
• Thereafter, this data is deleted automatically without further notification.
• Retrieval of any information after the disengagement date is subject to additional charges at the standard rates.