Engagement Letter updates

25 November 2025 – The Joint Professional Bodies Engagement Letters Working Party have published amendments to the MTD for income tax schedule, namely:  

1. The term ‘year-end tax returns’ used in paragraphs 16, 36, 37, 38 and 39, has been replaced with the term ‘year-end tax return’. 
2. At paragraph 3, reference to the default cash basis threshold of £150,000 has been removed due to the removal of the default cash basis threshold. 
3. A new paragraph (paragraph 35) has been added to make the responsibilities regarding retention of records clearer. The new paragraph states that clients have a legal responsibility to retain their documents and records, and they should maintain access where the accounting records are accessed via a third party.  Updated numbering to ensure all paragraphs are consecutively numbered.

Page last reviewed 30 January 2026