Our suite of factsheets will show you how to create client letters for tax and accounts production
Letters of engagement are mandatory. On accepting an appointment, the practitioner must send the client a letter of engagement. This forms the basis of a contractual relationship between the practitioner and the client.
A properly worded letter of engagement establishes the framework in which the client relationship is managed.
It should set out the work that is to be performed and the basis on which the fees will be charged. (It is rarely worthwhile suing a client for non-payment of fees if you do not have a letter of engagement in place.)
Many practitioners now limit their liability for work done by an appropriately worded clause in the letter of engagement. The liability cap should be discussed and agreed with the client at the start of the assignment.
For UK members, we have free factsheets available containing engagement letters that members can use. You can also find out more about other resources, and hear more about the importance of engagement letters in client engagement in this webinar.
In addition, ACCA and Lockton have put together a range of articles and case studies to help members find out more about effective engagement letters and their importance, as well as offering insights into many aspects of professional indemnity insurance and the risks that members may face.
New MTD for Income Tax schedule (June 2025)
A new MTD for Income Tax schedule has been published by the Joint Professional Bodies Engagement Letters Working Party (AAT, ACCA, ATT, CIOT and STEP) and is available below. This schedule can be used by members with clients who must comply with the requirements of MTD for Income Tax, and, in relevant cases, is to be used instead of the existing Personal Tax – Sole Traders and Property Income schedule included in the main engagement letter guidance.
Engagement letters: accounts production
Engagement letters: tax
Subcontractor agreement
