Accountancy Services in and around London, Surrey and Hampshire:

Solicitors

Solicitors work in a closely regulated area, and specific accounting and tax rules need to be followed. You need to have an accountant who has experience in this area.

Solicitors Accounts Rules

As a solicitor, you need to have the confidence of the public, and the Law Society’s rules and guidance should help to achieve this. They force you to have an “audit” at least once a year by a qualified auditor. For accountants it’s a specialised area, but Paul Chamberlain, our principal, has over 20 years of experience in SAR audits and in dealing with the Law Society. New rules and amendments keep coming, and you need to make sure that you and your advisors are up to date. As a member of the Solicitors Special interest group of the Institute of Chartered Accountants, Paul “knows what’s going on”.

Practice accounts

You need to know how your business is doing — and 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?

Taxation

Tax is another area that’s become more difficult for solicitors, even apart from the normal question about how much you need to set aside for it.

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 you should talk to Chamberlains. And 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?