New RTI guidance for engagement letters
In the biggest change to payroll since the second World War, employers will have to send information about tax and NI they deduct from employees’ wages to the Revenue when they are made, rather than at the end of the tax year as happens now.
Amendments have been made to the Payroll Services Appendix B6 incorporating RTI for payroll to help practitioners prepare for transition to the new system. Most of the guidance on letters of engagement is unchanged.
Practitioners are encouraged by the guidance to review their existing engagement letters and update them if necessary.
The guidance has been issued by bodies including the CIOT, ATT and ICAEW.