As a result of the major change by HMRC to the PAYE system from April 2013, known as Real Time Information (RTI), the main tax and accounting bodies have issued updated guidance on letters of engagement for tax practitioners.
The revised guidance was published on 25 February 2013.
What is RTI?
RTI is the new system for reporting tax, national insurance and other details to HMRC, submitting the data at the same time as payment is made to your employees instead of once a year.
What has changed in the guidance on letters of engagement?
Amendments have been made to the Payroll Services Appendix B6 incorporating Real Time Information to help practitioners prepare for transition to the new system. The main body of the guidance and all other appendices remain unchanged.
Practitioners are encouraged to review their existing engagement letters and update as appropriate.
Notes for editors
Members of the tax engagement letters working party:
- Paul Benney, Chairman – ICAEW
- Charlotte Ali, Secretary – CIOT and ATT
- John Barnes – CIOT (formerly IIT)
- Peter Bickley – ICAEW
- Heather Brehcist – CIOT and ATT
- John Cassidy - ICAEW
- Glenn Collins – ACCA
- Karen Eckstein – CIOT and ATT
- Patricia Gallacher – ICAS
- Julian Nelberg – CIOT and ATT