Mounting demand for professional services in the face of proposed tax changes from HM Revenue & Customs has boosted BDO Stoy Hayward‘s revenue growth by 10%, to £159.8m in the first half of the firm’s financial year.
Jeremy Newman, BDO managing partner, said BDO’s fastest-growing business line was its tax advisory unit, helped by the government’s plans to change capital gains and non-domiciled tax regimes, which had given the team more work. He said the authorities’ continued crackdown on more esoteric tax plans in favour of more straightforward schemes was also helping BDO.
BDO service lines continued to grow in the first six months of the year: ‘Our service to clients has been enhanced by the acquisition of the respected specialist tax advisory firm Chiltern, which accounted for 2% or £3.16m of total revenue since we acquired the firm in mid-October 2007. This has enhanced our already excellent tax expertise and service proposition.'
Newman saw reason for optimism despite the credit crunch and fears about the economy: 'These attributes will help to stand us in good stead as the UK economy tightens and conditions become more challenging. While our latest monthly Business Trends poll of polls indicates below trend economic growth over the next quarter in the UK, companies remain relatively bullish in the medium term, suggesting that a 2008 downturn and associated impacts are likely to be relatively mild and short lived.'
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