Accounting / FRS 102: related parties and close family members - tips and advice

In part 20 of our New UK GAAP series, Helen Lloyd FCA assesses the accounting reporting for related parties looking at disclosure requirements about close family members, associates and joint ventures, an area which is dealt with fairly vaguely in FRS 102 section 33

Tax / HMRC: software vendors will not be ready for Making Tax Digital

Making Tax Digital programme director Theresa Middleton has warned members of the House of Lords Economic Affairs Committee that some software vendors will not be ready to take part in the Making Tax Digital pilot scheme set to commence in April 2017. Calum Fuller reports

Tax / Rangers EBT ‘big tax’ case to kick off in Supreme Court

The high-profile dispute between Rangers football club and HMRC over the use of employee benefit trusts (EBT) to make payments to staff and players reaches the Supreme Court next month, in a bid to resolve the issues of whether such payments amount to earnings, which would be taxable as income, or loans

Insight / Investigation into animal charity’s financial controls

The Charity Commission has opened a statutory inquiry into Capricorn Animal Rescue and Sanctuary amid concerns over inadequate financial controls and a failure to account for assets at the charity, which has also attracted criticism from animal welfare groups

Tax / Government to help savers with Lifetime ISA

Government has introduced a tax-advantaged savings account, the Lifetime ISA, to support savers throughout their lives until the age of 50, which will in turn replace the problematic Help to Buy ISA from 6 April 2017

Tax / Child trust fund limit raised to £4,128 from April

The limit on the contributions to Child Trust Funds will increase by 1% to £4,128 from April 2017 and the requirement to use a lifestyling investment strategy for the child by the age of 15 will be removed

Insight / Two thirds of UK manufacturers plan to stay put post-Brexit

Two thirds of FTSE 100 and FTSE 250 UK manufacturing executives have no plans to move following the referendum vote to leave the EU, while nearly half are not worried about any potential Brexit uncertainty, according to a survey by KPMG

Tax / EU financial transactions tax plans face further delay

The group of ten EU countries which have agreed to go ahead with a financial transactions tax had an inconclusive meeting in Brussels this week, with differences of opinion emerging over the treatment of pension funds and growing calls for further exemptions to be built into the so-called ‘Robin Hood’ tax

Tax / EU compromises on hybrid mismatch rules with non-EU countries

The European Council has reached a compromise on rules aimed at closing down hybrid mismatches with the tax systems of third countries to reduce risk of double taxation

Technical Alerts

22 Feb 2017

Accounting / Marshall: time for transparency on judgments and estimates

Investors want financial statements to clearly explain the judgments and estimates made, but companies often obscure the detail. Andrew Marshall FCA, senior technical partner at KPMG, considers whether the latest FRC thematic review will improve the situation

Accounting / International reporting: 2017 will be the year of truths for IFRS

This year marks the implementation of two new accounting standards, IFRS 16 Leases and IFRS 9 Financial Instruments. Jeroen Van Doorsselaere, vice president of risk and finance at Wolters Kluwer Financial Services comments on a year of truth for IFRS reporters

Tax / HMRC updates VAT guidance for racehorse owners

HMRC has updated its guidance on the VAT registration scheme for racehorse owners who run a business for the first time since 2002, including new advice on how to register and a change in contact details, and a reminder of the VAT status of any winner’s trophies

Tax / Potential challenge to Uber over £20m VAT claim

Tax barrister Jolyon Maugham has indicated he is planning a legal challenge to rideshare company Uber, which he claims could owe some £20m annually in unpaid VAT on fares

Tax / Scotland passes historic tax vote

There has been a historic vote in the Scottish Parliament where, for the first time in its history, MSPs have passed measures setting all income tax rates and bands, confirming that higher rate Scottish taxpayers will be paying more tax than their counterparts elsewhere in the UK

Insight / Women lose out on pension auto-enrolment

Women are being unfairly disadvantaged over pensions, because they are more likely to have multiple low-paid jobs and cannot meet auto-enrolment requirements, according to research by Citizens Advice, which is advocating a change to the rules

Insight / Fugitive tax fraudster extradited to UK

A runaway tax fraudster is starting a six year jail sentence, after being extradited back to the UK by HMRC for failing to repay £1.5m

Tax / Skilled workers not gig economy fuelling self employment

Analysis from the Resolution Foundation challenges the view that the recent increase in self-employment is down to the rise of the gig economy offering short-term, low paid work, arguing the majority of the growth has been high-skilled, higher-paying sectors, putting the tax take at risk

Accounting / FRC sanctions ex-RSA Ireland CFO for inaccurate financial statements

CIMA member Rory O’Connor, the former chief financial officer at RSA Insurance Ireland (RSAII), has been excluded for three years and fined, along with two of the insurer’s former actuaries, following the conclusion of the Financial Reporting Council’s (FRC) investigation into financial irregularities at the company

Technical Alerts

21 Feb 2017

Tax / Buy-to-let taxation: stamp duty tax charges - part 7

In part seven of our exclusive series on buy-to-let taxation, Adam Kay, partner at Saffrey Champness,  reviews the impact of the 3% SDLT levy on additional property purchases 

Audit / Blockchain: game changer for audit?

Given its dubious black economy origins, initially there was widespread distrust of Blockchain among audit and accounting circles. But it could change audit radically if it is adopted by larger businesses and auditors are forced to review their technical capability, reports Calum Fuller

Audit / FRC publishes response to corporate governance reform proposals

The Financial Reporting Council (FRC) has released details of its response to the government’s green paper on corporate governance reforms, identifying the interests of stakeholders, executive remuneration, accountability of large private companies and effective enforcement as key areas of reform

Tax / Careless taxpayer has penalty reduced by £158k

A taxpayer, who has previously appeared on the Sunday Times rich list, has had his penalty reduced by £158,000 at a First Tier Tribunal (FTT), after he incorrectly claimed capital loss relief, on the basis that the penalty should be calculated upon the used portion of the loss only

Tax / Microsoft founder Gates advocates robots pay taxes

Billionaire Bill Gates, the founder of Microsoft, has predicted that in future there will be a need for robots to pay taxes, as increasingly automation replaces more jobs, in order to prevent inequalities

Tax / £30K tax-free redundancy payments to be scrapped

Government is planning to abolish rules under which the first £30,000 of redundancy payments are tax free in a move which will have far reaching implications for companies and employees from 2018, according to analysis from Wolters Kluwer

Tax / NHS staff targeted by tax rebate scam

NHS workers are being targeted by a scam run by tax rebate companies that claim they offer services where they can get a refund, according to a warning put out by Action Fraud, the UK’s national reporting centre for fraud and cyber crime

Tax / Hammond under pressure to review business rate rises

Chancellor Philip Hammond is coming under pressure to offer further concessions in the Budget next month to the planned hike in business rates, after Conservative MPs joined business groups and major retailers in a public outcry against the impact of new valuations, the first in seven years

Insight / Nexia International post 4% rise in fee income

Nexia International, the worldwide network of independent accounting and consulting firms, has reported its financial results for 2016 which show a 4% rise in total fee income, to hit $3.2bn (£2.58m)

Insight / DWP consults on defined benefit pension scheme reforms

The Department for Work and Pensions (DWP) has launched a consultation on measures to ensure defined benefit (DB) pension schemes within the private sector remain a secure and sustainable option, given the growing number of schemes in deficit

Insight / VAT fraud café owners face suspended sentence

Two North London café owners, who claimed £67,000 in VAT fraudulently and spent the money on gifts including Premier League football tickets for their family, have been sentencedto a suspended sentence after an investigation by HMRC

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