Tax / Kroijer: don't over-invest in property to build pension pot

Looking for low risk, high returns alternatives to tradtional pensions savings is one of the big worries these days but is property such a safe bet anymore? Investment expert Lars Kroijer considers the options for investors, warning that over-reliance on property assets is not always the best policy or a sure fire profit income

Tax / Manifestos fail to ‘offer honest set of choices’, says IFS

Neither the Conservatives’ nor Labour’s manifestos address the long-term challenges faced by the public sector, according to assessment by the Institute for Fiscal Studies

Insight / £170m to play for in football league promotion match

Bank Holiday Monday promises to be pay day for either Huddersfield Town or Reading, as the two football clubs battle it out in the play-off for promotion to the Premier League, with analysis from Deloitte suggesting the winner will score an additional £170m in revenue, rising to more than £290m if they survive their first season

Tax / HMRC disputes own calculations

HMRC has won a £3.1m case at a First Tier Tribunal (FTT) where part of the argument centred on whether or not the tax authority could challenge calculations derived from third party software developed to meet its own technical specifications, which may have implications for Making Tax Digital implementations

Tax / HMRC inheritance tax calculator reflects nil-rate band

HMRC has updated the inheritance tax (IHT) calculator to include details on the nil-rate band for inheritance tax, which came into effect in April and gives married couples and civil partners a higher IHT allowance, set to reach £1m by 2020

Insight / Employee retention boosted by rewards

Nearly all (94%) of small and medium sized enterprises (SMEs) reward their employees with half stating that the main reason for doing so is to keep motivation levels high, which in turn has led to a third of businesses experiencing higher retention rates, according to research from American Express

Professional Development / People in the news: Gibson Booth, Newby Castleman, Johnston Carmichael

In the latest accountancy jobs moves, Gibson Booth makes two appointments to its tax and accountancy departments, Newby Castleman promotes two staff members, seven promotions are made in the team at Johnston Carmichael

Tax / Political parties’ tax plans fail to meet business priorities

The two main political parties are failing to address the majority of businesses’ top targets for tax reform, with both the Conservative and Labour manifestos meeting less than half of their key priorities, according to research by Moore Stephens

Tax / Messi’s ‘red card’ for tax fraud confirmed

Spain's Supreme Court has confirmed a 21-month jail term for Barcelona striker and Argentinian football international Lionel Messi, for charges of tax fraud, but the player is unlikely to be sent off the pitch to serve time in prison

Accounting / IASB seeks feedback on IFRS 13 fair value measurement

The International Accounting Standards Board (IASB) is seeking stakeholders’ views about their experience with IFRS 13, the accounting standard that explains how to measure the ‘fair value’ of assets and liabilities, to address problems identified with disclosure requirements

Technical Alerts

25 May 2017

Tax / Gold bullion disguised remuneration still marketed despite HMRC clampdown

A year on from a concerted clampdown by HMRC, disguised remuneration schemes involving gold bullion are still being marketed to clients

Tax / Tax issues when disposing of a UK rental property

With the buy-to-let market still holding up despite a raft of potential tricky tax changes, many people will dispose of a rental property in their lifetime. Lynsey Lord, tax manager at Mercer & Hoe, explores some of the factors which can affect the tax position on such a sale

Insight / KPMG's incoming chief Bill Michael plans to shake up leadership team

Bill Michael, who takes over from Simon Collins as KPMG’s chair from 1 October has shaken up the firm’s top team, bringing seven new members on to the executive committee, with tax, consulting and technology represented for the first time

Insight / FRP Advisory prescribes administration for RedX Pharma

FRP Advisory has been called in as administrators to both RedX Pharma plc and its subsidiary RedX Oncology Ltd, after Liverpool City Council called in a £2m loan to the AIM-list company

Audit / KPMG hangs up on telco operator Lycamobile

KPMG has resigned as the auditor of Lycamobile UK Ltd, citing problems in obtaining ‘sufficient, appropriate audit evidence’ and concerns about whether there are adequate accounting records at the mobile network operator, which is involved in a £26m VAT dispute with HMRC

Tax / UK rejects Europe-wide corporation tax

Only 16% of UK businesses support the idea of an EU-wide corporate tax rate, and just 6% of those in Ireland, compared to the majority of European businesses which are in favour of a common approach, according to research by Grant Thornton

Tax / UKIP promises no tax rises

Speaking at the launch of the UKIP manifesto, deputy chairman Suzanne Evans has said it is the only party going into the forthcoming election to pledge not to raise taxes, with plans to introduce a £13,500 threshold for paying income tax by the end of the next parliament

Insight / CIPFA signs up to deliver apprenticeships

CIPFA is to begin delivering accountancy and finance apprenticeships from autumn this year, after being accepted onto the Education and Skills Funding Agency’s (ESFA) register of apprenticeship training providers

Technical Alerts

24 May 2017

Insight / Data breaches: preparing for EU General Data Protection Regulation

Changes to data protection laws will have wide-reaching impact on UK companies and subsidiaries, with tough penalties for non-compliance when the EU General Data Protection Regulation (GDPR) is introduced in 2018. Huw Beverley-Smith, a partner in the technology transactions group at Faegre Baker Daniels, considers the implications for accountants

Tax / Hallam: take VAT responsibility post-Brexit

There is a growing tendency for EU tax authorities to attempt to ‘responsibilise’ third parties for the failures of clients and partners to meet VAT obligations, Accordance chief executive Nicholas Hallam warns

Tax / Cohabiting pensioners missing out on tax benefits

Despite people over the pension age being the fastest growing group of cohabitees, many are missing out on tax breaks, such as inheritance tax benefits, and state pension rights which are only available to married couples, according to research by Royal London

Tax / PCS union slates HMRC’s office reorganisation plans

HMRC staff at the Public and Commercial Services (PCS) annual conference have condemned the department’s plans to close local offices as ‘impractical’, and indicated they will continue to campaign for a review of the decision to move most employees to new regional hubs under HMRC’s Building our Future (BoF) strategy

Tax / Uber owes NY drivers millions after accounting error

Ride-hailing pioneer Uber has admitted it owes its New York drivers tens of millions of dollars following an accounting error in the way in which it calculated their commission, by using a figure which included state taxes rather than a pre-tax fare

Tax / Trump budget plan attacked over accounting maths

US President Donald Trump has published his first budget, which proposes a $3.6 trillion (£2.8 trillion) cut in government spending over the next decade to balance the budget by 2017, but it has come under fire over the calculations used

Tax / More single property landlords hit by buy-to-let changes

Following the introduction of new tax rules for buy-to-let landlords there has been a rise in the amount of single property landlords that will be pushed into the higher income tax bracket, according to the National Landlords Association (NLA)

Accounting / OECD consults on transfer pricing for intangibles

The OECD is consulting on outline guidance on the approach to pricing transfers of hard-to-value intangibles (HTVI) described in its transfer pricing guidelines, which is one of the requirements of its Base Erosion and Profit Shifting (BEPS) action plan

Tax / EU agrees double taxation dispute resolution system

The European Council has agreed on a new system for resolving double taxation disputes within the EU, in a bid to reduce the difficulty and the tax burden of doing business across borders

Insight / FRP Advisory called in to failing law firm

Tom MacLennan and Iain Fraser, partners with FRP Advisory, have been appointed joint administrators of Hamilton Burns WS Ltd, a Scottish-based immigration, criminal, matrimonial and civil practice law firm which has collapsed with half of its staff losing their jobs

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