Tax Faculty pushes for UITF 40 spreading relief

Businesses such as builders and consultancies will be caught by Urgent Issues Task Force Abstract 40 (UITF 40) and many will take a tax hit when they are forced to recognise the full value of their work in progress, the ICAEW Tax Faculty warned htis week.

UITF 40 applies to accounting periods ending after 22 June 2005 and is going to to generate a windfall for the Treasury as thousands of unincorporated service providing businesses, and incorporated ones that have not recognised the full sales value of their WIP, will have to change their accounting basis.

The Tax Faculty has embarked on a

Continued...