Tax / IR35: upcoming changes to off payroll working in the public sector

Alastair Kendrick, tax director at MHA Macintyre Hudson, examines the rationale and function of changes to IR35 for public sector organisations, set to come in from April 2017  

Accounting / FRS 102: financial instruments and liabilities – tips and advice

In part four of our exclusive new UK GAAP series, Helen Lloyd FCA unravels FRS 102 and accounting for financial instruments and accounting for share issues, warning that there are substantial variations on old UK GAAP so parts of this will be unfamiliar for companies making the transition to FRS 102

Tax / HMRC to strengthen compliance on self employment

HMRC is set to introduce a new compliance team which will focus on employment status and employment intermediary risks, after MPs raised concerns about the rise of the so-called ‘gig’ economy and the use of self employed contracts for people working for delivery and distribution companies

Accounting / Accounting errors ring £145m alarm bell for BT

BT has said it has taken a £145m hit following the discovery of ‘historical accounting errors’ and ‘inappropriate management behaviour’ at its Italian division, according to the telecoms company’s second quarter results

Tax / HMRC chief says Concentrix failed to supply resources

Jon Thompson, HMRC chief executive, has told MPs that Concentrix failed to supply enough people to manage the outsourcing contract for checking tax credit renewals for fraud and error, resulting in what he termed ‘appalling’ customer service, with the work being brought back in house and potentially terminating early 

Tax / Lifetime ISA rules set out with £4k savings limit

The government has issued draft legislation setting out the rules for the Lifetime ISA tax-free savings scheme, including details on their use for first-time property purchases at exchange of contract, annual bonuses and eligibility for married couples

Insight / Insolvency rules set for overhaul from 2017

The Insolvency Service is flagging up the publication of the new insolvency rules, as the legislation has begun its passage through parliament and is due to come into force on 6 April 2017

Tax / EU wide common tax base would damage Ireland, warns GT

The proposed EU common consolidated corporate tax base (CCCTB) would have a ‘significant’ impact on the tax base of Ireland if implemented, accounting firm Grant Thornton warns

Audit / IAASA consults on future auditing framework for Ireland

The Irish Auditing and Accounting Supervisory Authority (IAASA) has released a consultation on the future auditing framework for Ireland, as it takes over standard setting from the UK’s Financial Reporting Council (FRC), with response required within 30 days

Insight / Economy grows 0.5% post-Brexit vote

The UK’s economy grew faster than anticipated in the three months after the Brexit vote, according to data released by the Office for National Statistics (ONS) showing a 0.5% increase in the July to September period, the first full quarter’s results since the referendum in June

Technical Alerts

26 Oct 2016

Tax / Federation of Small Businesses: ‘Delay MTD by 10 years’

Making Tax Digital should be delayed by as much as 10 years in order to allow businesses to adopt ‘something that works after being properly tested’, according to the Federation of Small Businesses’ (FSB) national chairman Mike Cherry

Tax / PAYE Settlement Agreements (PSA): reviewing the rules

An overhaul of PAYE Settlement Agreements (PSA) is long overdue and the latest proposals could simplify the current administrative inflexibility over expenses and benefits in kind, making the system less subjective, says Andrew Brookes, head of employer solutions at Menzies

Tax / Dodwell: soft law and corporate tax strategy

The volume of UK tax law is often criticised as every year another 600 pages are added to the tax code, but increased transparency with the publication of company tax strategies is a welcome development. Bill Dodwell, partner and head of tax policy at Deloitte considers the growing impact of so-called soft law on taxpayer behaviour at a corporate level 

Tax / EU reshapes plan for single corporation tax return

The European Commission has re-booted its long-delayed plans to introduce a Common Consolidated Corporate Tax Base (CCCTB), which it says have been reworked to be more pro-business and if approved by the EU28 will reform corporate taxation across the EU

Tax / Taxpayers split over HMRC move to deduct interest underpayments via PAYE

HMRC’s claims the move to gather data on interest payments directly from banks and adjust PAYE codes is ‘unproblematic’ although some taxpayers are concerned about privacy, data security and confusing communications from the taxman

Audit / AAPA dropped as recognised supervisory body for audit

The Financial Reporting Council (FRC) has decided to revoke the recognition of the Association of Authorised Public Accountants (AAPA) as a recognised supervisory body (RSB) for audit with effect from 31 December 2016

Tax / Extra jail time served for cooking up £600K restaurant VAT scam

Five men, including two who were already in prison for a previous VAT fraud conviction, have been sentenced after an investigation by HMRC into a £600,000 tax fraud carried out at two curry house restaurants

Insight / Inquiry finds Doncaster charity ‘seriously mismanaged’

A Charity Commission investigation into the now-dissolved Rebound Gateway Group has concluded the charity was seriously mismanaged and identified a number of financial irregularities

Insight / KPMG administrators to buckling steel company

Howard Smith, associate partner, and Jonny Marston, partner, from KPMG's restructuring practice have been appointed joint administrators to collapsed SBV Engineering, with the loss of 38 jobs

Insight / Gender pay gap improves at manager level

The gender pay gap for full-time employees in 2016 remains unchanged year on year for full-time workers although the overall salary divide is showing slight signs of improvement at management level although it remains above 10%

Accounting / FCA consults on long-term strategy to avert future financial crises

The Financial Conduct Authority (FCA) has launched a consultation on its mission to provide a core set of principles about future strategy and day-to-day work in a bid to strengthen its effectiveness as the financial regulator

Insight / Scottish business insolvencies down by 16%

The number of Scottish businesses becoming insolvent or entering receivership is down 16% to 218 in quarter three of 2016

Technical Alerts

25 Oct 2016

Insight / Economic trends: economy in limbo

The UK’s economy could steer clear of recession, but Brexit shockwaves still reverberate throughout the market as uncertainty about the economic outlook has caused growth to slow, says Chris Williamson, chief economist at Markit

Accounting / International reporting: audit considerations under IFRS 9

Under the new accounting rules set out in IFRS 9 Financial Instruments, there are a number of key issues for auditors to consider including lending models, credit risk and proportionality, says Jeroen Van Doorsselaere, IFRS expert at Wolters Kluwer Financial Services

Insight / Former accountant jailed over £151K online relationship fraud

A former accountant from Ashford who persuaded a client to lend him £151,000 has been given an 18-month jail sentence after being found guilty of fraud, having been scammed himself by a love interest he met online

Tax / Road tax rates set to rise for £40K plus new car purchases

An overhaul of the road tax system from April 2017 will mean that purchasers of new cars valued over £40,000 will face a five-year charge in addition to the annual road tax rate, which is set on a sliding scale

Tax / US tax authorities pass $10bn offshore tax milestone

The Internal Revenue Service (IRS) said the move had prompted over 100,000 taxpayers to come forward, and credited the introduction of automatic third-party account reporting with accelerating the process.

Insight / UK regulators ‘sleepwalking’ to next financial crisis

The culture of the UK’s financial regulators needs to change to avoid ‘sleepwalking’ into another financial crisis, according to report by the Cass Business School which warns that crucial changes following the 2008 crash are already being watered down

Tax / Devolution could see Wales lose ‘hundreds of millions’ in tax

Wales could lose ‘hundreds of millions’ a year in tax revenues if a deal to devolve tax powers to Cardiff does not take into account lower incomes and slower population growth in the country, a report suggests

Accounting / Charity accounts filing deadline reminder for 31 October

The final reminder for filing charity accounts for year end 2015 for the largest charities is less than a week away, warns the Charity Commission, with deadline for receipt of accounts on 31 October 2016 and nearly 1,600 charities running close to the wire

Insight / Watford Football Club investigated over ‘forged’ financial paperwork

Premier League football club Watford is under investigation by the English Football League (EFL) over claims it supplied false financial information to the governing body when a new owner was being cleared to take beneficial control

Insight / Begbies Traynor identifies ‘Brexit bounce’ at accounting and law firms

UK businesses across nearly every sector of the economy including professional services are showing positive signs of stability following the EU referendum, according to research from Begbies Traynor

Technical Alerts