Andy Maxfield examines the recent tax changes affecting barristers in light of an upsurge in HMRC enquiries
The end of cash accounting
FA 1998 s 42 brought about the end of cash accounting for a whole host of businesses including barristers.
The impact was that for the first period of account commencing after 6 April 1999 barristers were obliged to account for their fees on an earnings basis including debtors in their balance sheet unless they were in the early years of advocacy.
A barrister with an April year-end would have to adopt an earnings basis in his 30 April 2000 accounts including re-evaluation of the opening figures at 1 May 1999.
The opening figures on the new basis would be different to the opening figures on the old basis and this difference was subject to a ‘catch-up’ tax charge.
However there was a...
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Andy Maxfield examines the recent tax changes affecting barristers in light of an upsurge in HMRC enquiries
The end of cash accounting
FA 1998 s 42 brought about the end of cash accounting for a whole host of businesses including barristers.
The impact was that for the first period of account commencing after 6 April 1999 barristers were obliged to account for their fees on an earnings basis including debtors in their balance sheet unless they were in the early years of advocacy.
A barrister with an April year-end would have to adopt an earnings basis in his 30 April 2000 accounts including re-evaluation of the opening figures at 1 May 1999.
The opening figures on the new basis would be different to the opening figures on the old basis and this difference was subject to a ‘catch-up’ tax charge.
However there was a...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
