Listen to the latest Professional Practices Alliance webinar recording, in which Chair Claire Watkins (Buzzacott), and speakers Zulon Begum (CM Murray LLP), Corinne Staves (Maurice Turnor Gardner LLP), James Currie (Buzzacott), and Rob Millard (Cambridge Strategy Group) discuss:

  • How important it is for firms and partners to understand that taking advantage of the transitional period for the Base Period reform could result in their paying substantially more income tax than expected – it could mean spreading profits of the transitional year across the following five years (with the prospect of paying unknown higher tax rates in those years on those profits), rather than spreading the crystallised tax over those five years;
  • The need for partners to have a clear understanding of the extent to which they and their firm are (or in many cases are not) presently fully reserved against the partner’s individual tax liability – and to ensure that the firm has not just reserved and set monies aside against the partner’s upcoming payment due in January and July 2022, but also against the tax payments that will be due subsequently;
  • The Basis Period reform could consequently bring a lot of under-reserved partner tax balances home to roost, and is important for firms and partners to start cash flow scenario planning now, and to consider the range of funding options available to finance the additional tax and national insurance burden if needed in due course; and
  • The impact of the changes on for senior employees in LLPs, and the ways in which firms can make potential FSP and future EP status (and capital contribution) as attractive and engaging as possible to individuals who may only see risk and loss of employment security; and
  • The key changes that firms should consider making to their constitutions now, which will equip them to act very quickly if they need to raise money or conserve cash in future at short notice.

Listen to the recording here: Will firms run out of cash and what should they do about it? – Professional Practices Alliance Webinar Recording

You can also register for upcoming PPA webinars below:

3 November 2021: Things we learnt in the pandemic – re-envisioning your firm’s strategy and structure post-pandemic and taking your partners with you. We plan to trial a hybrid session so that attendees can choose whether to attend virtually or in person – register here

1 December 2021: ESG and professional services firms – register here