SCHEDULE OF SERVICES (602) MAKING TAX DIGITAL (INCOME TAX)

This schedule should be read in conjunction with the engagement letter and the 300 Standard terms & conditions | Massey Accounting Company

General

Where you, the client, is within scope of Making Tax Digital for Income Tax (“MTD”), our services shall be limited to the level of MTD support expressly agreed in writing.

MTD is being introduced on a phased basis, with commencement dates determined by the Client’s level of qualifying income and other statutory criteria. Unless we have expressly agreed in writing to monitor eligibility and commencement on the Client’s behalf, responsibility for determining when MTD applies rests with the Client.

Where the Client becomes subject to MTD during the period of our engagement, this scope of services shall apply from the date MTD obligations take effect.

Digital Record-Keeping

Under MTD, the Client is required to:

Maintain digital accounting records using HMRC-compatible software
Record income and expenditure on an ongoing basis
Ensure records are complete, accurate, and timely

Where the Client has access to bookkeeping software, it is the Client’s responsibility to ensure the software is used in practice, not merely set up.

We do not accept responsibility for:

Records created retrospectively
Incomplete or inaccurate bookkeeping
Transactions omitted, duplicated, or miscategorised by the Client

Quarterly MTD Submissions

MTD requires the submission of quarterly updates summarising income and expenses for each accounting period.

Unless expressly agreed under a Supported or Managed service:

The Client is responsible for preparing and submitting quarterly updates
The Client is responsible for monitoring and meeting all statutory deadlines
Quarterly submissions are not reviewed or verified by us prior to submission

Quarterly updates are not final tax returns and do not represent agreed or finalised tax liabilities.

End of Period Statement (EOPS) and Final Declaration

Where included within the agreed service:

We will prepare the End of Period Statement (EOPS) based on information provided by the Client
We will assist with the Final Declaration confirming total taxable income for the tax year

The Client remains responsible for:

The completeness and accuracy of all information supplied
Reviewing and approving submissions prior to filing
Providing information in sufficient time to meet statutory deadlines

Levels of MTD Support

MTD services may be provided under one of the following arrangements:

a) DIY (No additional fee)

The Client maintains digital bookkeeping records
The Client submits all quarterly MTD updates
We provide year-end accounts and final declarations only

b) Supported (Additional monthly fee)

The Client maintains digital bookkeeping records
We provide periodic review, support, and submission of quarterly updates

c) Managed (Quoted separately)

We provide full bookkeeping services
We manage quarterly submissions, reviews, and MTD compliance on the Client’s behalf

Only services explicitly agreed in writing form part of our scope of services.

Exclusions

Unless expressly agreed in writing, the following are excluded from our scope:

Correcting or reconstructing incomplete or inaccurate digital records
Monitoring statutory deadlines under DIY arrangements
Submitting quarterly updates without adequate records
Responsibility for penalties, interest, or surcharges arising from late, missed, or inaccurate submissions
Training beyond basic orientation or separately agreed tuition sessions

Client Responsibilities

The Client is responsible for:

Implementing and correctly using digital bookkeeping software
Ensuring business bank accounts are used exclusively for business transactions
Providing accurate, complete, and timely information
Selecting and confirming their preferred level of MTD support
Meeting statutory deadlines where responsibility rests with the Client

Failure to meet these responsibilities may result in non-compliance, penalties, or additional fees.

Limitation of Liability

We shall not be liable for:

Penalties, interest, or surcharges arising from the Client’s failure to comply with MTD requirements
Errors arising from inaccurate, incomplete, or late information supplied by the Client
HMRC enquiries, assessments, or penalties arising from matters outside the agreed scope of services

Changes to Scope

MTD legislation and HMRC guidance may change from time to time. We reserve the right to amend this scope of services where necessary. Any material changes will be notified to the Client in writing.