There has been widespread concern over the effect of the new method of accounting for WIP, UITF 40. The following tutorial gives a practical guide to working with the new regulations. There is also a worksheet to download in which you can enter your own figures.
By Rebecca Benneyworth
Data assembled by member bodies of the CCAB indicates that a significant number of firms of accountants are going to suffer a significant tax increase for the year in which the new basis of accounting for income is adopted. The Law Society's members seem to be similarly affected.
Although accountants and lawyers are among the most high profile casualties of the new regime, many other service providers will also have to consider how they account for income once the new rules commence. Professionals such as...