Insight / Apprenticeships: advice for accountancy firms

Accountancy firms should take advantage of apprentices as a cost-effective alternative to hiring entry-level staff. Rachel Taylor, employer engagement manager with apprenticeship provider Step Forward provides tips and advice for accountancy firms when taking on apprentices

Insight / May proposes two-year ‘transition phase’ for Brexit

Theresa May has called for a two-year transition period after the UK leaves the EU in March 2019 in a speech in Florence, Italy

Insight / Lord Chancellor rejects ICAEW’s bid to regulate reserved legal services

The Lord Chancellor, David Lidington, has rejected the ICAEW’s application to become an approved regulator and licensing authority for the six remaining reserved legal services, which came as a surprise as the accounting institute was backed by the Legal Services Board (LSB)

Insight / CMA to investigate investment consultancy market after FCA referral

The investment consultancy market faces a Competition & Markets Authority (CMA) investigation following a referral from the Financial Conduct Authority (FCA) over its treatment of older customers

Insight / Guidance updated as serious incidents in charities go unreported

The Charity Commission has issued clearer guidance on reporting serious incidents as charities are currently failing to report many instances as soon as they occur, with the regulator warning this can put charities at risk of further harm

Tax / Solicitors face scrutiny over tax planning advice

Solicitors providing tax planning services could face greater scrutiny from the Solicitors Regulatory Authority (SRA) and HMRC as government begins to clamp down on aggressive tax avoidance schemes

Insight / Accountants invited to take part in national golf tournament

Accountants across the UK are being invited to do some number crunching of a different kind by taking up the challenge to play in a new golf tournament especially for the profession

Insight / People in the news: RSM, BDO, Mazars

Career news this week includes a partner appointment at RSM in the firm’s restructuring advisory practice, BDO promotes two partners, an accounting and outsourcing partner joins Mazars’ Birmingham office

Insight / Treasury urges individuals to donate round pounds to Children in Need

BBC Children in Need has partnered with the Treasury and The Royal Mint on a campaign to encourage people to donate the millions of remaining round £1 coins to the charity, with only four weeks to go until the old pound coin goes out of circulation

Insight / Director floored with four-year disqualification

A director of a flooring factory outlet store in Glasgow has been handed a four-year disqualification for failing to file VAT returns and make payments of some £200,000 to HMRC

Technical Alerts

21 Sep 2017

Accounting / FRS 102: handling derivatives and material valuations

Zwi Sacho, director of corporate accounting advisory practice at Chatham Financial Europe, tackles the large and material valuation requirements of derivatives under FRS 102 accounting, as businesses adjust to the standard

Audit / FRC not ‘too close’ to audit market, says PwC

There is no issue around the Financial Reporting Council’s (FRC) independence from the auditors and audit firms it regulates, according to senior PwC partners

Tax / Future of capital allowances up for OTS review

The Office of Tax Simplification (OTS) is to review options for replacing the current capital allowances tax relief system with an accounts depreciation approach as the current model is too complicated and expensive for businesses to administer, reports Sara White

Tax / US set to lose $12bn in tax take by 2027 if multinationals relocate overseas

Tax inversions by US multinationals attempting to shift profits into lower tax jurisdictions could cost the US up to $12bn (£7.4bn) in lost corporate tax revenues by 2027, according to figures released by the US Congressional Budget Office

Tax / VAT: keeping to the rules for the flat rate scheme

Stanley Dencher, specialist tax writer at CCH, outlines the conditions for using the flat rate scheme for VAT, considering various First Tier Tribunal decisions on whether the flat rate scheme was applied in the right circumstances and at the correct rate

Accounting / FRC proposes amendments to FRS 102 for Gift Aid payments

The Financial Reporting Council (FRC) is set to amend the rules for handling Gift Aid payments under FRS 102 in an effort to clarify when profits from a non-charitable subsidiary can be distributed to the parent charity

Tax / HMRC signs lease for Birmingham regional hub

HMRC has signed a 25-year lease for its Birmingham regional hub with the tax authority and department for Work and Pensions (DWP) planning to move 3,600 staff into the offices from 2020, which has been named as the largest pre-let to take place in the city in a decade

Insight / Inside Biometrics given cash injection with sale out of administration

Medical devices company Inside Biometrics has been saved from closure following the appointment of Mercer & Hole’s corporate advisory partner, Chris Laughton, to handle the company administration when it ran out of cash and risked having to close

Audit / KPMG global chairman apologises for South Africa scandals

KPMG’s global chairman, John Veihmeyer, has issued an apology after the firm faced criticism over its audit work for the Gupta family and a separate report it produced for the South African Revenue Service

Tax / Simple assessment tax changes for state pensioners

For the 2016/17 tax year, pensioners who started to receive a state pension on or after 6 April 2016 and have no other taxable income will not be required to file a tax return, instead HMRC will send a simple assessment based on its own calculations

Insight / Toys R Us files for bankruptcy protection in the US

Toy retailer, Toys R Us, has filed for Chapter 11 bankruptcy protection in the US and Canada after struggling with debt and although UK stores are currently unaffected the decision could have implications on UK toy manufacturers and suppliers ahead of the Christmas period

Technical Alerts

20 Sep 2017

Tax / US tax amnesties: fact or fiction?

Ephraim Moss and Joshua Ashman CPA, co-founders of Expat Tax Professionals examine whether IRS tax amnesty programmes such as the offshore voluntary disclosure programme (OVDP) offer safe disclosure arrangements for expat US taxpayers, and offer tips and advice on how the system actually works

Tax / HMRC mid-sized business service to help 170,000 companies

As many as 170,000 mid-sized companies will benefit from extra help from HMRC tax specialists, under plans confirmed by the tax authority

Insight / Grant Thornton partner detained in Dubai

The Dubai authorities have stopped a Grant Thornton partner from leaving the United Arab Emirates after confiscating his passport when he landed in Dubai on a connecting flight in July

Audit / BDO wins Mitie audit ‘casual vacancy’ as Deloitte resigns

BDO has won the ‘casual vacancy’ as FTSE 250 outsourcer Mitie’s auditor after Deloitte resigned its position after 30 years

Tax / Wetherspoons cuts food and drink prices today in protest over VAT

Wetherspoon’s pubs across England, Wales and Northern Ireland will be cutting the price of all food and drink by 7.5% on the 20 September, as part of national tax equality day to promote the benefit of a VAT reduction in the hospitality industry

Tax / Lib Dems call for tougher penalties on foreign property investors

In his first speech as Liberal Democrat leader, Vince Cable has called for ‘fierce’ tax penalties on overseas residents purchasing UK property for investment purposes and outlined plans to replace student fees with a graduate tax

Insight / Accountant fined for breaching trading ban

A London accountant has been fined £800 and ordered to pay costs of £300 for failing to pay a £83,000 security bond which was enforced by HMRC

Insight / Car dealership director stalled with 10-year ban

The director of a Bangor-based car dealership has been disqualified for 10 years after scamming customers out of nearly £1m by not providing the vehicles that they had paid for

Technical Alerts