Using consultants

Do I need to declare on the engagement letter?

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I run a consultancy (C) company alongside my accountancy (A) company (historic tax reasons & now different share structure). 

 

C engages literally 1 or 2 clients a year, normally for relatively small amounts (1 on £100pcm for 1.5 hrs, t’other ad hoc - between 0 & 10 days pa - at £300/day) 

Lets say A engages a client for £200pcm to cover YE work and attendance at board meetings/consultancy. I want to run £100pcm through C.

Do I:

1) not tell the client & C invoices A,

2) state on A’s engagement letter something like “the consultancy services will be provided by C”; or

3) have to have separate engagement letters. 

I’d prefer not to have to do #3, but does anyone know?

If (not the royal) one uses, say, a tax expert or general freelancer for something then it doesn’t necessarily get communicated to the client, surely this is the same?

 Thanks in advance. 

Replies (4)

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Universe
By SteveOH
28th Feb 2018 09:18

I have the following clause in my Terms of Business which you can adapt to your own circumstances:

CONFIDENTIALITY
Communication between us is confidential and we shall take all reasonable steps to keep confidential your information except where we are required to disclose it by law, by regulatory bodies or by our insurers. Unless we are authorised by you to disclose information on your behalf this undertaking will apply during and after this agreement. We may, on occasions, subcontract work on your affairs to other tax or accounting professionals. The subcontractors will be bound by our client confidentiality terms.

Hope that helps.

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Universe
By SteveOH
28th Feb 2018 09:20

I have the following clause in my Terms of Business which you can adapt to your own circumstances:

CONFIDENTIALITY
Communication between us is confidential and we shall take all reasonable steps to keep confidential your information except where we are required to disclose it by law, by regulatory bodies or by our insurers. Unless we are authorised by you to disclose information on your behalf this undertaking will apply during and after this agreement. We may, on occasions, subcontract work on your affairs to other tax or accounting professionals. The subcontractors will be bound by our client confidentiality terms.

Hope that helps.

PS: Why this post has been duplicated below, I have absolutely no idea!

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Replying to SteveOH:
ALISK
By atleastisoundknowledgable...
28th Feb 2018 09:43

Thanks.

You may have double-clicked "post reply".

I know - a carp feature of AW isn't it!

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Replying to SteveOH:
ALISK
By atleastisoundknowledgable...
08th Mar 2018 16:52

Just looked at our T&Cs ... good ol' ACCA already had that exact text in.

Probably should have read mine at some point before now!

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