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Having read Robert Maas's article (' WIP RIP ?' Taxation 5 May 2005) I have been moved to do my own research.

This note is prepared from the perspective of a regular high street accountant considering his own business. But the thought process goes wider than that.

Robert rightly says that Mark Lee's focus seems to be 'what are the tax consequences if you have to recognise a load of additional income?' It seems to me that the tax consequences are uncontroversial — the only real issue being how one funds the additional tax. What is controversial is the 'if you have to recognise a load of additional income' part of this phrase. In other words this is primarily an accounting rather than a taxation issue given that everyone accepts that the tax treatment will follow from the accounts...