HM Revenue and Customs (HMRC) have professional partnerships in their sights as the rules relating to the valuation of work in progress for such firms begin to be fully implemented.
Following changes, introduced in June 2005, to the basis of the valuation of unrealised profits, HMRC will now have started receiving the first accounts prepared under the new rules. They have set up specialised units to examine the compliance of professional firms with the new rules. The units are staffed with experienced Tax Inspectors who are expected to look carefully for evidence of non-compliance.
If you have a dispute with HMRC, it is important to make sure you have professional representation.
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Partner Note
Source – Accountancy, January 2008.