Members' Area

Tax Issues - Professional practices (and partnerships)

Services to professional practices

We recognise that professional practices require specialist and tailored professional advice to assist decision making in their fast changing business environment. This applies equally to dynamic, newly-formed firms or expanding multinational partnerships.

We are committed to being at the forefront of advisers to whom professional practices and the individuals within them turn for advice and guidance. Our client base includes solicitors, surveyors, engineers, architects, actuaries and other professionals.

Services to partners

Partners in professional practices often find it difficult to devote sufficient time to their own personal affairs and may also require independent and impartial advice. We take great care to tailor our service to the specific aspirations of individual partners by holding “one to one” clinics to develop a personal strategy as well as collect the relevant information.

Remuneration

We have wide experience of both the aspiration and motivation issues for individuals in professional practices and the management issues for firms, as well as the tax and National Insurance consequences.

We regularly advise firms on the merits of lockstep, performance related pay, fixed shares and other ways of rewarding partners. We find that there is no specific formula applicable to all firms but rather such systems need to be tailored to take account of the firm's culture and ethos.

Tax advisory services

Our team offers an extensive range of tax advisory services, including advice in respect of:

Property issues

Property transactions often involve substantial sums of money and firms should be fully apprised of the financial and tax consequences before committing themselves.

We have a wealth of experience in advising professional firms on the optimal tax solution with regard to office moves, refurbishment projects, the surrender of onerous leases, together with inducements in taking on a new lease, including rent free periods. The impact of value added tax and stamp duty also require careful consideration.

Use of service companies/holding companies

The use of a service company and the adoption of appropriate transfer pricing policies can provide an opportunity to reduce the overall effective rate of tax within a group. It is of course important that any idea sits well culturally in an organisation so whilst the use of a service company can provide tax benefits we can advise of the pros and cons of exploring this option.

Refinancing

The decision to acquire an asset under a lease agreement or outright purchase is one which firms often face. We regularly advise our professional practices on such issues including refinancing/restructuring loans.

Employee benefits

Using experienced professionals, each with extensive knowledge of pensions and employee benefits, we provide a comprehensive consultancy service to a varied portfolio of clients.

We view each client as unique, developing solutions that take account of individual circumstances and objectives extending well beyond cost-effectiveness and legal compliance, which, however, underpin every aspect of our service.

Services

We provide consultancy advice and support on all aspects of pension and employee benefits:

• Scheme design, implementation and operation
• Trusteeship and guidance on undertaking duties
• Pension scheme documentation
• Partner compensation and benefits
• Stakeholder pensions
• Trustees’ report and accounts
• Scheme financing and administration
• Risk benefit design and broking
• Flexible benefit programmes
• Insolvency and scheme wind-up
• Project implementation and change movement
• Employee share schemes
• Forensic work
• Due diligence
• Mergers and acquisitions

Publications

• 5 th edition of Professional Practices handbook
• 2 nd edition of ‘Accounts and audit of Limited Liability Partnerships’ – co-authored by Clare Copeman and Yvonne Lang
• Handbook on International Taxes
• Latest Annual Survey
• Professional practices contributions to:

• The Law of Limited Liability Partnerships (Jordans 2 nd edition)
• Limited Liability Partnerships – A guide for professionals
• Revenue Law Principles and Practice(Tottels)
• Capital Gains – Tax Sumption
• Tottel’s Tax on Transactions