Practice - Partners band together
A host of big names from the legal and accountancy professions have formed a new association to defend themselves against the imminent wave of changes to partnerships.
The Association of Partnership Practitioners came into being this week, with Ronnie Fox of solicitors Fox Williams as chairman.
Other committee members include Simon Mabey, part-ner at Smith & Williamson; Nigel Davey, tax partner at Deloitte & Touche; and David Furst, a partner at Horwath Clark Whitehill.
Government plans to abolish the cash basis for partnership accounts will top the association’s agenda during its infancy.
‘For firms that are not already considering work in progress and debtors in their accounts, the changes will mean a big one-off tax charge,’ said Mabey. ‘That is unfair, and we will be making a presentation to the Inland Revenue next week.’
He added: ‘There are a lot of other changes in the pipeline, including changes to limited liability and partnership law.’
Mark Lee of BDO Stoy Hayward, another member of the association, was anxious the group should not become a one-issue organisation.
‘There’s a danger the tax issue will hijack the group. It is important to remember the idea of an association – pooling knowledge – was thought up long before the Revenue’s proposals,’ he said.