CCAB urges Brown to ease accountants' tax burden
In a letter to Treasury officals and HMRC, the accounting umbrella group has called for the tax effects of new accounting rule Abstract 40 on firms to be eased
In a letter to Treasury officals and HMRC, the accounting umbrella group has called for the tax effects of new accounting rule Abstract 40 on firms to be eased
Accounting umbrella group CCAB has urged the government and HMRC to ease the
‘hardship’ set to hit the professional services sector due to the tax
implications of a new accounting rule.
In a letter, addressed to Treasury heads including chancellor Gordon Brown
and paymaster general Dawn Primarolo, as well as HMRC chairman David Varney,
CCAB has called for the effect of UITF Abstract 40 upon professional
services firms to be minimised.
The Abstract has changed the way service providers account for revenue
regarding work in progress. As work progresses, revenue must be recognised in
proportion to that work rather than when the whole contract is completed.
The change is expected to cause a one-off hike in revenue, and therefore the
tax bill, of businesses affected.
‘On behalf of CCAB, I have written to the chancellor requesting that any
additional tax be spread over a period of 10 years,’ said Ian Morris, chairman
of CCAB.
‘For some businesses, the change could cause a real crisis and erode their
working capital, adversely affecting the business’ competitive position and
ability to survive.
‘For those affected the new rules will cause major hardship for suppliers of
both professional and trade services. This change could affect many ordinary
businesses including, for example, builders and electricians.’
In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...
View resourceIn recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...
View resourceIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceThe first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...
View resourceThe amount of tax saved by businesses through HMRC’s Patent Box scheme has increased by 23% over the last five years, from £1.14 billion in 2017/18 to...
View articleUK Chancellor Jeremy Hunt has hinted at the possibility of further tax cuts in the upcoming spring Budget, during his time at the World Economic Forum...
View articleThe legislation, which introduces a global minimum tax of at least 15% for multinational enterprises, aims to limit tax competition and ensure large c...
View articleThe upcoming tax changes in 2024 will significantly impact businesses and individuals in the UK. Accountants play a crucial role in helping clients na...
View articleAccountants must stay vigilant, adapt their tax strategies to evolving regulations, prioritize transparency, and foster collaboration with tax authori...
View articleAs the government prepares for re-election, PM Sunak promises to control spending in order to bring forth tax cuts next year Read More...
View articleThe Office for National Statistics revealed that the UK economy shrank by 0.3% in March after the economy grew by 0.1% in the previous three months Re...
View articleAs the Spring Budget approaches, dissenters of the UK government’s increasingly complex contractor legislation are baying for change. HMRC has already...
View article