AAT, working in partnership with fellow professional bodies ACCA (Association of Chartered Certified Accountants), ATT (the Association of Taxation Technicians), CIOT (Chartered Institute of Taxation) and STEP (Society of Trust and Estate Practitioners), has concluded work on an initial engagement letter schedule for Making Tax Digital (MTD) for VAT. The document contains information to assist AAT members when working with or advising clients who are undertaking VAT activities under HMRC’s new Making Tax Digital systems.
The document was created by a joint working party of the professional bodies. You can now view it on AAT’s website (logged-in members only) and on the websites of our partner bodies. It’s designed for members with clients who have a requirement to submit VAT returns because their taxable turnover exceeds the VAT registration threshold or who have turnover that does not exceed the VAT registration threshold but who have opted in to using MTD for VAT.
The engagement letter schedule is a living document which will be updated as the bodies’ understanding of MTD for VAT develops, and the working party will continue to keep the main guidance and engagement letters schedules under review.
Adam Williamson, AAT Head of Professional Standards said:
“AAT and our fellow professional bodies agree that it’s vital our members have as much support as possible to help with the implementation of Making Tax Digital for VAT. This engagement letter schedule will ensure that accountants can give their clients the best guidance possible to make the transition to the new system.”
The guidance is supplementary to “Engagement letters for tax practitioners” issued on 2 May 2018 and should be read in conjunction with it. If members have any queries on either the MTD for VAT schedule or the main engagement letters guidance and schedules, please contact AAT standards.