PracticeConsultingPractice – Brown stands firm on plans

Practice - Brown stands firm on plans

Chancellor Gordon Brown has admitted receiving a flood of protest over proposals to end cash-based accounting for income tax for partnerships.

He told MPs: ‘The Inland Revenue has received a large number of responses and had a series of meetings with representative bodies, including the Law Society, the Bar Council and accountancy bodies.’

Consultations on the controversial proposals, which could cost firms thousands of pounds, ended last week.

Despite the strength of opposition, Brown appeared to be standing firm, but the Revenue has agreed to exclude ‘success fee’ work from its plan’s to tax work-in-progress.

Brown made it clear in the Commons that proposals for a phasing-in period, including a ‘catch-up’ tax charge, would allow the change to take place with sensitivity – despite representations to the contrary.

Brown said: ‘The proposal is that those in professional bodies should be taxed in the same way as everybody else.’

Tory accountant MP Nick Gibb said: ‘The proposal has been ill thought through.’

Related Articles

5 tips for SMEs to protect cash flow

Accounting Software 5 tips for SMEs to protect cash flow

5m Alia Shoaib, Reporter
Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

Consulting Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

11m Stephanie Wix, Writer
Managing partner Q&A - the year ahead: Richard Toone, CVR Global

Accounting Firms Managing partner Q&A - the year ahead: Richard Toone, CVR Global

12m Kevin Reed, Writer
Deloitte 'self-imposes exile' on government contracts to defuse PM row

Accounting Firms Deloitte 'self-imposes exile' on government contracts to defuse PM row

12m Kevin Reed, Writer
Managing partner Q&A - the year ahead: Julie Adams, Menzies

Accounting Firms Managing partner Q&A - the year ahead: Julie Adams, Menzies

12m Kevin Reed, Writer
Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

Business Regulation Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

1y Kevin Reed, Writer
Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

Audit Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

1y Kevin Reed, Writer
New head of equity capital markets for KPMG

Accounting Firms New head of equity capital markets for KPMG

1y Stephanie Wix, Writer