Types of Preparatory Work

Example of the process

Email Templates


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Types of Preparatory Work That you Can Assist us With.

The Preparatory Work below sets out the type of work that is undertaken by the Accountant that falls within the meaning of ‘Preparatory Work’ under the terms of Agreement your Agreement with JA.

Preparatory Work – MVL

This section sets out the work the Accountant undertakes on helping the preparations to place the client into MVL which is considered Preparatory Work for the purpose of your Agreement with JA.

Preparatory Work would usually include but would not be limited to:

  • preparing final accounts;
  • de-registration for VAT;
  • liaising with the Provider’s MVL team as appropriate;
  • assisting the Provider with the preparation of the declaration of solvency;
  • assisting the Provider and the client with the completion of the directors’ questionnaire;
  • assisting with any tax queries or reconciliation issues and
  • submitting the final CT tax returns and final VAT returns.

In relation to the MVL introduced to the Restructuring Provider by the Accountant.

Preparatory Work – CVL

This section sets out the work the Accountant undertakes on helping the preparations to place the client into CVL which is considered Preparatory Work for the purpose of your Agreement with JA.

Preparatory Work would usually include but would not be limited to:

  • liaising with the Provider’s CVL team as appropriate;
  • assisting the Provider with the preparation of the estimated statement of affairs;
  • assisting the Provider and the client with the completion of the following information:
    • up to date list of creditors (aged creditors list, names, addresses, amounts and any relevant references);
    • HM Revenue & Customs details: PAYE reference / Corporation Tax reference / debt due, split between deductions from workers (i.e. PAYE, employees’ NI, CIS deductions, student loan deductions) and other taxes (i.e. corporation tax and employer’s NI);
    • VAT details (including VAT number / details of outstanding returns / amount of VAT outstanding);
    • employee details (employment contracts, names, start dates, salary, outstanding wages and holiday);
    • details of any company pension scheme;
    • details of any Employee Benefit Trust (or similar) used by the company and how this has been dealt with via HMRC (has HMRC demanded PAYE/NI element, has this been appealed, paid, and/or put through the company’s payroll);
    • history of the business in a bullet point format;
    • details of any legal action against company or taken by company along with the name of your solicitors/ legal advisors;
    • any correspondence with the bank as regards any potentially mis-sold interest rate hedging product or swap;
    • details of any assets (including those on finance and copies of the agreements);
    • up to date debtors (aged debtors list, names, address and amounts);
    • details of any retention of title claims;
    • any insurance cover in place and insurance brokers name / address & policy number;
    • occupancy agreement between company and landlord;
    • details of company’s other professional advisors, i.e. accountants, insurance broker, solicitor, etc;
    • names of any subsidiary or associated companies;
    • details of any matters that the board of directors consider to be relevant; and,
  • assisting with any tax queries or reconciliation issues.

In relation to the CVL introduced to the Restructuring Provider by the Accountant.

Example of our Fee Paying Process

Just Accountant Referral signs up for your services on 01/02/2022

You complete and submit Estimated Schedule of Fees within your Portal.

Estimated Schedule of Fees shows first year fee income estimated at £5000

Fees income for us initially calculated at 50% of Estimated Fee Income being £2500 payable over 3 years

Year 1 fees payable of 25% of £5000 being £1250.

Year 1 fees split into 4 payments of £312.50 payable every 3 months from sign up, first payment due 30/05/2022

Actual Schedule of Fees submitted to us before final year 1 payment, i.e. prior to 28/02/2023

Actual Schedule of Fees indicates true first year income was £4000

Our fee entitlement recalculated at £2000.

Payment now due for years 2 and 3 is
£2000 - £1250 (already paid) = £750

Years 2 and 3 fees payable as 8 instalments of £93.75 per quarter

Regulatory Email Templates

MVL

Hi [Name]

It was great to speak to you previously regarding the best way to close your company down. As discussed, we believe that a Members’ Voluntary Liquidation (“MVL”) will be the best option for you as you no longer have a requirement for your limited company.

This option will allow the company assets to be transferred to shareholders by way of a capital distribution and therefore take advantage of the Business Asset Disposal Relief (formerly Entrepreneurs’ Tax Relief).

I would like to introduce you to SFP Restructuring Limited (“SFP”) https://www.sfpgroup.com/, who can assist you with placing your company into liquidation.

To give you some insight into why we and many other companies choose to work with SFP:

  • They are the preferred licensed Insolvency Practitioners to the majority of the top contractor accountants in the market, as well as a significant number of Chartered Accountancy firms across the UK.
  • SFP have worked alongside us for many years to ensure a very smooth, joined-up approach, reducing the risk of any issues, giving you peace of mind and ensuring a quick turnaround.
  • And, possibly most importantly, you could receive up to 90% of your funds within 7 days of appointment!

In respect to the last point and as far as I am aware, a number of the other major MVL providers will make the initial distribution to you as shareholder between 30-60 days and only be 80%!
You can find more about what their current clients say about them here: https://sfp-mvl.co.uk/testimonials/

As we discussed earlier, you have agreed that your details can be passed across to SFP and I have therefore copied them into this email for them to contact you direct

We want you to be confident that we practice according to strong ethical principles. Therefore, whilst we have worked alongside SFP for many years and trust the service that they provide, further information on their General Regulatory and Ethics Disclosure can be found here https://sfp-mvl.co.uk/about-us/general-regulatory-and-ethics-disclosure/

I am looking forward to hearing how you got on with SFP and should you wish to discuss any of the above further with me, please let me know.

Kind regards

 

 

CVL

Hi [Name]

I refer to our earlier conversation today and was sorry to hear that your company is experiencing financial difficulty.

As we discussed, you should now seek professional advice and I recommend seeking the assistance of an insolvency practitioner to help you decide on next steps.

I would like to introduce you to SFP Restructuring Limited (“SFP”) www.sfpgroup.com, who we work with. They are insolvency practitioners and can assist you to explore the options as well as recommend a way forward.

We did talk about liquidation being one of those options and as such thought I would attach their Liquidation guide. In their guide, you will see why we and many other companies choose to work with SFP:

  • They are the preferred licensed Insolvency Practitioners to the majority of the top contractor accountants in the market, as well as a significant number of Chartered Accountancy firms across the UK.
  • SFP have worked alongside us for many years to ensure a very smooth, joined-up approach, giving you peace of mind you’re in the hands of professionals.

You can find more about what their current clients say about them here: https://www.sfpgroup.com/about-us/group-testimonials/

As we discussed earlier, you have agreed that your details can be passed across to SFP and I have therefore copied them into this email for them to contact you direct.

We want you to be confident that we practice according to strong ethical principles. Therefore, whilst we have worked alongside SFP for many years and trust the service that they provide, further information on their General Regulatory and Ethics Disclosure can be found at https://www.sfpgroup.com/about-us/regulatory-and-ethics-disclosure/.

I am looking forward to hearing how you got on with SFP and should you wish to discuss any of the above further with me, please let me know.

Kind regards