In limiting its liability, a firm can protect both partners’ private assets during legal action and make the firm more transparent under law which was passed in July. The accountancy profession lobbied hard for the changes and at one point firms threatened to move offshore if the necessary legislation was not brought forward.
It was thought that measures in last month’s pre-Budget report aimed at preventing the LLPs being used as a tax avoidance mechanism, could put some firms off. AccountancyAge.com columnist Robert Maas, of the English ICA tax faculty, said the rules could scupper take-up of the new structure.
The tax avoidance crackdown is thought to have been prompted by Inland Revenue fears that property investment companies could benefit from the advantageous tax status of LLPs.
But today’s news, confirmed to AccountancyAge.com by the firm, could now open the floodgates with other big accounting and law firms following the move. As many as 90,000 firms have expressed an interest in changing their status to a limited liability partnership, according to government figures.
The second largest improvement in ‘significant’ levels of financial distress since the EU Referendum was in professional services, found research from Begbies Traynor
Just one half of UK practices have implemented a pricing structure around auto enrolment implementation and advice - with many suffering increased costs
Deloitte's north-west Europe foray; BDO, Smith & Williamson investment paths; Shelley Stock Hutter; and Wilkins Kennedy discussed by editor Kevin Reed on our Friday Afternoon Live broadcast
Accountants should alter their perspective on auto-enrolment to maximise business opportunities, according to Eric Clapton.