Do you have to have a letter of engagement

Do you have to have a letter of engagement

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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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By johngroganjga
13th Nov 2015 07:47

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.

 

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By leicsred
13th Nov 2015 08:36

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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By cheekychappy
13th Nov 2015 09:37

A LOE would take all of 2 mins for this. I don't see why you wouldn't bother.

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By johngroganjga
13th Nov 2015 09:49

But pointless after the event of course.

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By Tim Vane
13th Nov 2015 10:20

I agree with the above - AML checks should have been done, the LOE seems pointless.

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By ireallyshouldknowthisbut
13th Nov 2015 10:28

.

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. 

 

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Out of my mind
By runningmate
13th Nov 2015 10:43

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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By ireallyshouldknowthisbut
13th Nov 2015 10:49

.

@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"

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By rampanesar
13th Nov 2015 14:21

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.

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By soundadvice
14th Nov 2015 12:50

Thank you Fawlty thats a very comprehensive summary of the key requirements which will hold me in good stead for the future.

I think I am OK on the statutory side; the MLR was taken care of and in addition she is the wife of an existing client and the detail o the service was agreed by email.

The ethical side is a bit more loose and floppy in this case but a good lesson learned; learning never stops

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