Thank you for appointing NP Accounting Services Ltd as your accountant and tax adviser. We are pleased to act for you and look forward to a productive working relationship.

This letter, together with our Terms of Business (enclosed), sets out the basis on which we will act for you in respect of Making Tax Digital for Income Tax Self-Assessment (MTD ITSA). This engagement letter is issued in accordance with the standards and guidance of the Association of Accounting Technicians (AAT) and the requirements of HMRC.

Please read this letter carefully. If you have any questions, please do not hesitate to contact us. Your acceptance of this letter constitutes a binding agreement between us.

NP Accounting Services Ltd is regulated by the Association of Accounting Technicians (AAT). Natalia Postolachi FMAAT is a Fellow Member of the AAT and is registered as an agent with HMRC. We are bound by the AAT's Code of Professional Ethics, including the fundamental principles of integrity, objectivity, professional competence, confidentiality, and professional behaviour.

We are registered with the Information Commissioner's Office (ICO) for data protection purposes and comply with the UK General Data Protection Regulation (UK GDPR) and the Data Protection Act 2018.

Under this engagement, we will provide the following services on your behalf:

• Register you for MTD ITSA with HMRC (if not already registered).
• Assist in the setup or review of compatible MTD-compliant digital record-keeping software.
• Maintain or review your digital accounting records on a periodic basis.
• Prepare and submit quarterly summary updates to HMRC via MTD-compatible software.
• Prepare and submit your Final Declaration (equivalent to the Self-Assessment Tax Return) to HMRC.
• Act as your appointed tax agent and liaise with HMRC on your behalf where required.
• Advise you of your tax liabilities and relevant payment deadlines.

Services outside the above scope — including capital gains, property disposals, overseas income, partnership matters, and VAT — are not included unless separately agreed in writing.

To enable us to fulfil our obligations under this engagement, you agree to:

• Maintain complete, accurate, and up-to-date digital records throughout the tax year using HMRC-recognised MTD-compatible software.
• Provide us with all relevant information, documents, and records in a timely manner.
• Review and approve all quarterly submissions and the Final Declaration before filing with HMRC.
• Inform us promptly of any changes in your circumstances (e.g., new income sources, disposal of assets, commencement or cessation of trade).
• Ensure that all information supplied to us is accurate and complete to the best of your knowledge.
• Respond promptly to any queries we raise during the preparation of your submissions.

You remain legally responsible for your own tax affairs and for ensuring compliance with HMRC requirements. The submission of inaccurate information may result in HMRC penalties for which we cannot accept liability.

We will:

• Prepare quarterly updates and your Final Declaration based solely on the records and information you provide.
• Exercise reasonable care and professional skill in delivering all services under this engagement.
• Submit information to HMRC on your behalf only once approved by you in writing (including by email).
• Notify you of relevant filing deadlines in advance.
• Maintain appropriate professional indemnity insurance.

We will not audit or independently verify the accuracy or completeness of the information you provide, unless separately engaged to do so. Our work does not constitute an audit and should not be relied upon as such.

You acknowledge and agree that under the Making Tax Digital for Income Tax Self-Assessment regime:

• MTD ITSA applies to self-employed individuals and landlords with qualifying income above the HMRC threshold (currently £50,000 from April 2026; £30,000 from April 2027).
• Quarterly digital updates must be submitted to HMRC within one month following the end of each quarter.
• A Final Declaration must be submitted by 31 January following the end of the tax year.
• Penalty points may be imposed by HMRC for late, inaccurate, or missing submissions.
• You must use HMRC-recognised MTD-compatible software to maintain your digital records.

Timely cooperation with our requests is essential to meet all statutory deadlines. Where delays are caused by the late provision of information or records, we cannot accept liability for any resulting penalties.

In accordance with the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, we are required to verify the identity of all new and existing clients. You agree to provide such identity documentation as we may reasonably request. We are legally obliged to report any suspicion of money laundering or terrorist financing to the relevant authorities, without necessarily being able to inform you of having done so.

We are committed to protecting your personal data in accordance with the UK General Data Protection Regulation (UK GDPR) and the Data Protection Act 2018. Personal data collected in connection with this engagement will be used solely for the purposes of providing the agreed services, complying with legal obligations, and communicating with HMRC on your behalf.

We will not disclose your confidential information to any third party without your prior consent, except where required by law or by our regulatory obligations. A full Privacy Notice is available upon request.

Our aggregate liability to you arising out of or in connection with this engagement (whether in contract, tort, or otherwise) shall be limited to the total fees paid by you for the specific services giving rise to the claim, unless such liability cannot be limited by law (for example, liability for fraud or wilful misconduct).

We shall not be liable for any loss, penalty, interest, or surcharge arising from information provided by you that is inaccurate, incomplete, or provided after agreed deadlines.

If you are dissatisfied with any aspect of our service, please contact Natalia Postolachi in the first instance, either in writing or by telephone. We will acknowledge your complaint within five working days and provide a full written response within 28 days. If you remain dissatisfied, you may refer the matter to the AAT.

Either party may terminate this engagement by giving not less than 30 days' written notice to the other. Fees will remain due and payable for all work completed or in progress up to the date of termination. Upon termination, we will provide you with reasonable assistance in the handover of your records and affairs.

This letter and any dispute or claim arising out of or in connection with it shall be governed by and construed in accordance with the laws of England and Wales. The parties submit to the exclusive jurisdiction of the courts of England and Wales.

Please confirm your agreement to the terms of this engagement by signing below and returning a copy of this letter to us. Your continued instruction of our services will also constitute acceptance of these terms.