Engagement Letter – VAT Returns and Making Tax Digital

An engagement letter for preparing and filing a client’s VAT returns under Making Tax Digital, with clear responsibilities for digital records and VAT schemes.

Editable Word document
14
10pages
Guidance notes included
aml consultancy solutions

Accountancy practice – client documents

Engagement Letter – VAT Returns and Making Tax Digital

About this document

What it’s for

A covering letter and schedules for preparing and submitting VAT returns through Making Tax Digital compatible software, setting out who keeps the digital records, which VAT schemes apply, what is excluded and the client’s legal responsibilities.

When to use it

  • Taking on a VAT-registered client for return preparation or review and submission
  • Registering a client for VAT and then handling its returns
  • When a client changes VAT scheme, frequency or software

What’s inside

The document is laid out in the sections below. Each one comes with a plain-English guidance note explaining what it does and what to change.

  1. VAT registration details
  2. What we will do
  3. Digital records
  4. VAT schemes and special rules
  5. Your responsibilities
  6. Our responsibilities
  7. Services not included
  8. Authority to act with HMRC
  9. Our professional obligations
  10. Identity checks and money laundering
  11. Confidentiality and your information
  12. Fees and payment
  13. Our liability to you
  14. Changes in the law and to this engagement
  15. Ending the engagement
  16. How our agreement fits together

Also included

  • Fees
  • Timetable

How to complete it

  • Fill in the VAT registration details table in Schedule 1
  • Choose the record-keeping option (A, B or C)
  • Tick the VAT schemes that apply and delete the rest
  • Price each service in Schedule 2

Key points to check

  • The VAT registration threshold, error correction limits and penalty rates change from time to time – placeholders are flagged
  • Partial exemption, property and international VAT are excluded unless you price them in

Our templates are professionally structured starting points for UK businesses, not legal advice. For anything complex, unusual or high-value, have your final version checked by a solicitor.

Included in the pack

Accountancy practice – client documents

£20

for every document in this category

Editable Microsoft Word files

Guidance notes in every document

Written for UK businesses

Download and keep

Get the packSee every document in this pack →

Need more than one category?

Documents All-Access gives you every category for 12 months for £295.

Compare options →

Need it tailored?

We can adapt any template to your business, or write a document from scratch.

Talk to us →