New guidance on letters of engagement for tax practitioners
This guidance is designed to be user-friendly and can easily be adapted by smaller practitioners. It is published in Technical Factsheet 144 (see 'related documents', below left).
A three-step approach has been used:
- the letter of engagement, identifying the client and whose instructions will be accepted. It also summarises the basis on which fees will be charged, any estimate or fee quote and who is responsible for fees
- a schedule setting out the practitioner’s standard terms and conditions
- further schedules which detail the nature and scope of the services to be carried out and the responsibilities of each party. Schedules cover the most common recurring compliance work carried out by our members: personal tax for individuals, sole traders and couples; trusts and estates; partnerships; limited liability partnerships; corporation tax; payroll services; benefits in kind returns and payments of Class 1A NIC; VAT and other indirect taxes.
Practitioners should not need to replace their existing engagement letters immediately. They are, however, encouraged to review them annually and update as appropriate. Where members use the engagement letter and schedules developed by the joint bodies they should adapt them to suit their practice.
The Technical Advisory Service is available to assist members and will be happy to advise on matters not covered by the factsheet. They can be contacted by telephone on 020 7059 5920 or by e-mail on email@example.com.
Money Laundering Regulations 2007 are not covered by the factsheet and can be found on the Legislation and Standards page. Client identification is an important part of the procedure and guidance can also be found on technical factsheet 140 (see related documents).
If a client complains, view the guidance from ACCA's Professional Conduct Department