I understand the importance of letters of engagement but sometimes wonder if there is an element of overkill?
For example I recently had someone call in and she wanted me to check out her tax coding which she thought was wrong. I spent about an hour on it and it was clearly wrong and she has had it corrected.
She has asked me for an invoice for my time which should be around £75 + VAT.
Do I need to go through all the money laundering stuff and set up a LofE to do this or could I just send her the invoice and say the advice has been offered without liability/prejudice?
What do people think is the right approach to these situations?
Thanks
Replies (10)
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If I had been in your position I would not have thought it necessary to issue and agree an engagement letter before doing what you did for this lady.
To issue one after the event is not only unnecessary but completely pointless as it will serve no conceivable purpose.
I am not sure that there is any wriggle room on the "money laundering stuff".
As an aside, I am not sure it is possible in law to exclude liability for the advice you give, with or without a letter of engagement, but I am no lawyer.
AML
As per John, I to would get AML information in these cases and fill in the relevant know your client information, but I wouldn't issue an engagement letter.
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I send out some basic T&C's to clients as an email when I quote. Its a single (small typed) page which basically says "pay up when we ask, if you send us rubbish info the advice you get will be rubbish, and our liability is restricted to XYZ" Its better than nothing as you could argue if the client has proceeded, they have accepted them. Not as good as a signed contract of course but does for small things.
ICAEW
I think ICAEW would say that you should inform the client of your complaints procedure (i.e. first complain to me, if not satisfied then you may contact my professional body) by way of your engagement letter or some other document.
RM
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@running mate, yes thats in it to. Which is absurd in my case "if you are not happy with me........contact me to complain.......and if you are still not happy speak to the ICAEW"
Bitter experience
Always agree terms via LoE, no matter how small the job. You never know what that "little" job may get you into (I should know! - never again!).
If the fee is too small, why bother when there are better clients paying good fees for your time. Send small jobs to your competition.