Insight / Managing millennials: talent retention

Millennials do not tend to stay in the same job for longer than two years before searching for new opportunities, Phil Chambers CEO and co-founder at Peakon, considers what accountany firms need to do to manage and hold on to their millenials

Tax / PAC attacks HMRC's plans for regional office restructure

HMRC’s plans to shut down most of its local offices and move staff into large regional hubs has been attacked by the public accounts committee (PAC) as unlikely to save as much money as predicted and is likely to have a negative impact on customer service levels

Tax / Accountex 2017: exhibitor highlights and what's new

On 10-11 May, in just under two weeks’ time, Accountex – the UK’s biggest accountancy exhibition returns to London ExCeL. Here’s a first look at what’s new from some of the exhibitors for 2017, to help you plan for your visit and focus on the major software innovations for accountants and tax advisers:

Tax / Strict liability law for corporate tax evasion under Criminal Finances Act

The Criminal Finances Bill has been given Royal Asset, ushering in controversial new ‘strict liability’ corporate criminal offences for companies failing to prevent facilitation of UK and foreign tax evasion, which will come into force later this year

Accounting / Ex-Olympus execs to pay £410m damages over accounting fraud

Six former directors at Japanese camera and medical equipment maker Olympus have been ordered to pay the company ¥58.8bn (£410m) in damages over a massive accounting fraud originally uncovered by a British whistleblower

Insight / Finance Mole: corporate waffle rules

A baffled Finance Mole attends an offsite management meeting laced with jingoism and shambolic speakers, Osborne quits as MP, HMRC reeling as chiefs quit

Insight / Voluntary liquidation surge causes drop in company insolvency numbers

The total number of company insolvencies are down 29% due to a surge in personal service companies (PSC) entering a creditors’ voluntary liquidation (CVL) last quarter, following changes to claimable expense rules, however excluding these PSCs business insolvencies have increased by 5%

Tax / EIS funding down 20% due to complex tax rules for SMEs

A sharp fall in the use of funding tax breaks offered by schemes like the Enterprise Investment Scheme (EIS) and Seed Entreprise Investment Scheme (SEIS) has seen a 20% decline in applications from start-ups and SMEs over the last 12 months due to the complexity of the rules

Tax / Stamp duty receipts up as transactions fall

HMRC’s latest statistics show it collected over £2bn in stamp duty land tax (SDLT) in the first quarter of the year, but the number of transactions is falling, partly as a result of the changes to the taxation of additional properties

Professional Development / People in the news: BHP, PKF Francis Clark, McLintocks

This week's news of professional moves in the sector include a trio of partners promoted and appointed at BHP, PKF Francis Clark appoints a corporate finance director, McLintocks promotes one of its tax advisers to director 

Tax / EU plans tighter anti-fraud measures with PIF directive

The European Council has adopted legislation, known as the Protection of the Union's Financial Interests (PIF) directive, designed to protect the financial interests of the EU by having common rules for the prosecution and sanctioning of crimes against EU finances, including VAT fraud, making it easier to recover misused EU funds

Insight / Adoption rights: what you need to know - part 3

The last in a series on parental rights during employment focuses on implications into adoption leave, examining the rights and responsibilities of both employer and employee whie considering statutory adoption pay

Technical Alerts

27 Apr 2017

Tax / Making Tax Digital: who starts quarterly reporting when

In a regular timetable update for HMRC's Making Tax Digital, CCH Daily sets out the key dates for the start of quarterly reporting and the subsequent year end reconciliation tax report, based on company or partnership size and turnover. This list will be updated regularly to reflect any changes to reporting requirements

Insight / Underwood: equity and profit share issues when selling accounting practice

Keith Underwood, managing director of Foulger Underwood considers the problem of diverging partner aspirations when merger multi-partner accounting practices and offers tips and advice on issues to consider when partners decide to sell out

Tax / Newcastle's managing director released following HMRC arrest

Newcastle United's managing director, Lee Charnley, has been released without charge following his arrest on 26 April as part of HMRC's investigation into possible tax and national insurance fraud at several football clubs

Tax / Ellison moves to assuage Making Tax Digital timetable fears in letter

The government ‘remains committed to the digital future of the tax system’ despite the forthcoming general election, financial secretary to the Treasury Jane Ellison claimed in a letter to the House of Lords Economic Affairs Committee

Audit / Toshiba and PwC in standoff over accounts

Troubled Japanese electronics company Toshiba is believed to be seeking to replace its auditor after current incumbent Japan based PwC Aarata said it was unwilling to sign off on the company’s accounts over issues related to its US nuclear reactor subsidiary Westinghouse Electric, which is filing for bankruptcy

Tax / Dodwell: HMRC tax accounts fail to calculate correct tax

Bill Dodwell, head of tax policy at Deloitte, is critical of HMRC's failure to address a computation problem on self assessment, which has resulted in miscaluations of tax liability and hints that many taxpayers will end up paying the wrong tax and may even have to revert to filing paper tax returns

Tax / HMRC updates partnerships and CGT liability guidance

HMRC has updated the HS288 partnerships and capital gains tax summary notes to reflect 2017/18 tax rates and clarify reporting requirements for carried interest and gains affected by entrepreneurs’ relief

Tax / MP wants help for tax avoidance scheme ‘victims’

LibDem MP Greg Mulholland has tabled an early day motion calling for HMRC to review the tax treatment of those using avoidance schemes which have been challenged, although the proposal is highly unlikely to get a hearing before Parliament is dissolved

Insight / Scottish business insolvency rates fall by 7%

Fewer Scottish companies are failing, while personal insolvency numbers in Scotland are currently the second lowest in a decade, according to the latest figures from the Accountant in Bankruptcy (AiB)

Accounting / IASB releases IFRS 9 implementation video on YouTube

The IFRS Foundation has released a video on IFRS 9 Financial Instruments explaining the accounting treatment for the new impairment model and providing advice on implementation, now available on YouTube

Tax / Slimmed down Finance Bill hits IHT for non UK domiciles

Changes to the rules on inheritance tax charges on residential property for non UK domiciles have been dropped from the rushed Finance Bill, creating uncertainty for high net value individuals, warns Mercer & Hole 

Accounting / MPs call for reform of ‘badly written’ government accounts

MPs have criticised the way in which the government prepares departmental annual reports and accounts, saying earlier reforms do not go far enough, with the result that accounts appear to be currently failing in their purpose of explaining to the public and Parliament the effectiveness of government spending due to them being badly written and difficult to follow

Tax / Trump issues one page tax reform update

President Trump’s administration has revealed plans for what it is calling ‘one of the biggest tax cuts in history’, which include slashing corporation tax to 15%, but has given few details of how the new regime would work or the timeline for its introduction

Technical Alerts

26 Apr 2017

Accounting / Marshall: taking stock of FRS 102 - triennial review

Andrew Marshall FCA, senior technical partner at KPMG, outlines the proposed changes to FRS 102 accounting rules from definition of financial instruments to property investments and directors’ loans, with signs some treatments may revet to old UK GAAP

Tax / Making Tax Digital: accounting periods and reporting deadlines

With less than a year to go before quarterly reporting starts for unincorporated businesses, self employed and landlords over the VAT threshold in April 2018, Stephen Relf ACA CTA, specialist tax writer at Wolters Kluwer, has pulled together a handy guide to key reporting dates for accounting periods for HMRC's Making Tax Digital 

Tax / Irish tax policy: CT rates, regime and reputation

Irish tax policy coupled with one of the lowest EU corporation tax rates at 12.5% could be at risk after the Apple ruling and with wider plans to introduce a consolidated single corporation tax rate across the EU27, reports Jaimie Kaffash

Tax / HMRC raids Newcastle and West Ham football clubs

Over a hundred HMRC officers have been deployed on early morning raids at two football clubs - Newcastle United and West Ham -  with several arrests made in connection with allegations of tax fraud

Tax / Amount of income tax paid by self employed increases 18%

The amount of self assessment income tax paid in the UK has increased 18% to £599m in March 2017 compared to £333m last year, with HMRC collecting £33bn more taxes over the past year, according to HMRC’s tax collection statistics

Audit / IAASB to overhaul ISA 540 for audit of accounting estimates

The International Auditing and Assurance Standards Board (IAASB) is consulting on proposals to significantly overhaul ISA 540, the auditing standard which governs how auditors evaluate accounting estimates and related disclosures

Insight / Regulator looks into cash courier concerns at Leicester charity

The Charity Commission has opened a statutory inquiry into Leicester-based Aid for the Needy & Oppressed (ANO) over concerns about the charity’s financial controls after it was found to have used cash couriers to handle funds, which is counter to current advice

Tax / Grandfathering for foreign service relief on overseas pension rights retained

The revised Finance Bill 2017 appears to have clarified earlier confusion on changes to overseas pension taxation and the employer-financed retirement benefits schemes (EFRBS), setting out grandfathering provisions, although there are still potential pitfalls

Tax / Lowest earners lose 10% of salary to taxes

One in five of the poorest UK taxpayers are paying more than 10% of their salary on taxes such as income tax, National Insurance contributions and council tax, compared with top earners paying up to 23%

Tax / Tyrie quits Parliament and Treasury committee

Andrew Tyrie, longstanding chair of the influential Treasury select committee, has announced he is ending his 20-year political career and will stand down as an MP at the general election, in a move which has taken Westminster by surprise

Technical Alerts