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 and professional requirements.
it further 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.
If the company is to be closed, we will commence the striking off application to Companies House.
You will need to settle the company’s PAYE, NIC, VAT and Corporation Tax obligations and settle any other outstanding liabilities.
You will also be responsible for closing down all company bank accounts and credit card accounts.
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.
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