For Professional
Service Businesses |
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| For
some time, there has been concern about the effects of UITF40
on the tax liabilities of professional service businesses –
accountants, solicitors, barristers, architects, surveyors etc.
|
| |
| It
is now clear that, unless work is being carried out on a contingency
basis only, the valuation of work in progress at full saleable
value will be required at the end of all accounting periods
ending after 22 June 2005. |
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| The
Chancellor's Pre-Budget Report of December 2005 indicated that
there will be degrees of relief in cases of more stable profits
over the course of 6 years, but, by the end of that 6 years,
the work in progress will have to be accounted for as income
in full. |
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| For
those of our professional service clients that have not valued
work in progress previously, some planning is needed before
the end of the financial year following 22 June 2005. Be aware
that this requirement is highly likely to accelerate your tax
liabilities, and a conversation with Stephen would be advisable.
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All
Rights Reserved | © S R Lynn & Co 2003 | 11 Warren Yard,
Wolverton
Mill, Milton Keynes, MK12 5NW | Photography by Stephen Lynn