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Article: CCAB seeks to protect SMEs. Accountancy's umbrella group, the CCAB, has appealed directly to chancellor Gordon Brown to ease the 'hardship' set to hit small firms and businesses due to the tax implications of a new accounting rule, writes Kevin Reed.(Consultative Committee of Accountancy Bodies)(small and medium size enterprises)(Brief Article)
- Article from:
- Accountancy Age
- Article date:
- July 7, 2005
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In a letter sent to the chancellor, paymaster general Dawn Primarolo and HMRC chairman David Varney last week, the CCAB called for the effect of UITF Abstract 40 upon professional services companies to be minimised.
The abstract, first highlighted by Accountancy Age in March, 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 bills, of businesses affected.
'For some businesses, the change ...