Engagement Letter Template for Partnership Accounts & Tax Return

• that all returns are to be made on the basis of full disclosure of all sources of income, charges, allowances and capital transactions;
• to provide all information necessary for dealing with the partnership affairs. In particular, you are responsible for advising in writing, via the nominated partner, on the partners’ allocation of profits, losses, other income and allowances. We will rely on the information and documents being true, correct and complete, and will not audit the information or those documents.
• to authorise us to approach such third parties as may be appropriate for information that we consider necessary to deal with the partnership affairs;
• to provide full details of all UK residential property disposals including associated costs/valuations prior to disposal. Where you consider that a partner will be non-UK resident in the tax year of disposal, full details of all UK property disposals (residential and non-residential) and disposals of shares in UK property rich companies or UK property rich collective investment vehicles, or such other entities must be advised prior to exchange of contracts or agreement to transfer shares or units. If information is received after this we cannot guarantee that we can provide advice on the amount of capital gains tax due or submit an in-year return within 30 days after the completion date of the disposal.
• to provide us with information in sufficient time for the partnership tax return to be completed and submitted online to HMRC by 31 January following the end of the tax year. In order that we can do this, we need to receive all relevant information by 31 October following the end of the tax year. If filing on paper, we will need to receive all relevant information by 31 July following the end of the tax year. Where feasible, we may agree to complete your return within a shorter period but may charge an additional fee for so doing.

Our Responsibilities

Excluded, Ad Hoc and Advisory Work

• advising on making tax digital for income tax self assessment (MTD ITSA) which will require digital accounting records and the submission of quarterly updates and annual returns to HMRC using compatible software. MTD ITSA will be mandatory for general partnerships from 6 April 2026 for income from trading and property
• advising on the in-year Capital Gains Tax (CGT) reporting requirements on disposals of property, and preparing the in-year return and calculating the CGT due where required note this work will always result in additional fees. We will require you to provide information as early as possible in advance of exchange of contracts in order to provide advice on the tax implications, reporting requirements and to quantify the tax bill;
• advising on whether you should change your partnership accounting year end to align with the tax year end and if so helping you to make the transition including claiming overlap relief;
• advising on ad hoc transactions and queries (including telephone conversations), preparing and submitting information in the relevant format to HMRC and calculating any related tax liabilities;
• advising on preparing accounts on the cash basis and helping you to make the requisite election;
• advising on double tax relief if appropriate;
• dealing with any enquiry opened into the partnership’s tax return or tax affairs by HMRC; and
• preparing any amended returns that may be required and corresponding with HMRC as necessary.

Changes in the Law, in Practice or in Public Policy

Limitation of Liability