Solicitors work in a closely regulated area where specific accounting and tax rules need to be followed. Chamberlain’s have over 20 years experience in this area.
Solicitors Accounts Rules
It is mandatory for Solicitors to have an “audit” at least once a year by a qualified auditor. Auditing is a specialised area of accountancy and here at Chamberlains we have over 20 years experience in SAR audits and in dealing with the Law Society. New rules and amendments keep coming, so it is important to ensure that you and your advisors are up to date. As a member of the Solicitors Special interest group of the Institute of Chartered Accountants, we are in the know.
To be effective and in control of your business you need to be clear about how your business is doing on an ongoing basis – not just in the formal year end accounts.
- Are profits being allocated correctly between partners?
- Can you see what areas make (or lose) you most money?
- How can you get more into your pocket?
- Will you have enough to pay the taxman?
- What will you do about retiring?
TP Legal Ltd is a fairly newly incorporated solicitors practice. I am delighted by the service provided to me by Paul Chamberlain, especially in assisting me with navigating my business through the perils of its first Solicitors Accounts Audit. Thanks to Paul’s experience he was able to give me some good advice in advance of the audit and he managed to alleviate my worries with his sound advice. Definitely worth instructing for solicitors accounts.
Tax is another area that’s become more difficult for solicitors, even apart from the usual question about how much you need to set aside.
Revenue recognition changes (“UITF 40”)
These have increased almost everyone’s Work in Progress and hence taxable profits. Presumably your extra tax is being spread over three years or more as allowed? If not talk to Chamberlains. If there are changes in profit-sharing arrangements, (including partners retiring or joining), UITF 40 can have unfair effects on the tax spread unless you or your tax advisor makes specific adjustment.
European Savings Directive
If you pay interest to non-UK residents, disclosure needs to be made to HM Revenue & Customs to avoid penalties. Do you need more details?
To discuss your business accountancy and auditing requirements, please call +44 (0)1252 702600
or email firstname.lastname@example.org
Chamberlains …professional, friendly, accountancy & auditing services in Greater London, Surrey & Hampshire