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

25 Apr 2017

Audit / Richards: corporate governance needs more accountability

An overhaul of corporate governance in the UK looks likely as the influential BEIS Committee calls for more transparency and controls over executive pay and a requirement to meet gender diversity targets on boards. Elizabeth Richards, head of corporate governance at ICAEW considers the proposals

Tax / Brexit and EU rules: Common Corporate Tax Base (CCTB) – part 3

In part three of our EU Directives series, Stefan Petrovski, accounting supervisor at Primexis, asks whether EU plans for a directive to introduce a consolidated European corporate tax base (CCTB) would work across disparate economic bases with individual tax codes, rules and rates

Accounting / Basel Committee on Banking Supervision to tighten oversight activity

The Basel Committee on Banking Supervision (BCBS) has issued its work programme for 2017-18, stressing that it will continue to monitor emerging risks in the banking sector and tighten up its supervisory powers

Tax / Making Tax Digital dropped from Finance Bill

Making Tax Digital has been removed from the Finance Bill 2017, as well as a majority of other tax measures such as corporate loss relief, the money purchase annual allowance for pensions and penalties for enablers of tax avoidance schemes, confirmed by government at the Finance Bill committee stage debate

Tax / HMRC penalties to net self-employed couriers and workers

The Low Incomes Tax Reform Group (LITRG) has raised serious concerns about the impact of new rules on tackling tax avoidance which could have an unexpected impact on ordinary workers, particularly those hired through umbrella companies or outside standard PAYE contracts, for example cab drivers or delivery couriers

Tax / Trump plans to cut corporation tax to 15%

President Donald Trump has ordered aides to construct a draft tax reform plan which will see corporation tax cut to 15% from the current rate of 35% as part of plans to accelerate US growth by easing the burden on businesses, according to White House reports

Tax / Horse betters face gambling crackdown

The European Commission has approved the UK’s plans to reform the existing horserace betting levy scheme to include offshore bookmakers, which have been judged to be in line with EU state aid rules

Insight / IFRS Foundation income grows by £3.2m

The IFRS Foundation has reported total income from all activities increased by £3.2m to £30.6m last year, most of which came from voluntary contributions, but comprehensive income has risen from £2.7m in 2015 to £3.2m, according to its 2016 annual report

Tax / Pressure to amend Making Tax Digital plans

Government departments and select committees have now entered a period of ‘purdah’ as the general election campaign gets underway, but there are signs that the two committees scrutinising HMRC proposals for Making Tax Digital are planning to work together to push for more changes and a slower implementation of the current plans

Insight / Deloitte launches brand campaign

Deloitte has launched a major new brand campaign in the UK, under the banner of ‘Deloitte Do’, which has been developed by global advertising agency BBH and is designed to tell the story of the firm’s impact across the breadth of services it provides to clients

Tax / Early adoption of tax common reporting standard problematic

Many of the data submissions made by early adopters over the next two months under the new common reporting standard (CRS) are likely to be rejected and returned for correction and resubmission, adding to compliance costs, according to predictions from Sovos, a global tax compliance solution provider

Insight / TaxAssist Accountants reaches 200 shopfronts

TaxAssist Accountants, a network of small business specialist accountants, has gained it 200th shopfront after a new independent accountancy firm has opened in West Yorkshire

Technical Alerts

24 Apr 2017

Accounting / Financial reporting for LLPs under revised SORP: tips and advice

Under the revised accounting SORP for LLPs, small partnerships must exercise increased judgment in disclosures when applying new accounting rules which take into account new UK GAAP, explain Andrew Baker, head of professional services group, north west, and Colin Burns, technical director, RSM

Audit / FRC fines Grant Thornton £2.3m over AssetCo audit failures

The Financial Reporting Council (FRC) has fined Grant Thornton UK £2.275m and given retired partner Robert Napper a three-year ban and a £130,000 fine after its investigation identified a range of ‘widespread and significant’ failings in work on the audits of AssetCo plc, a provider of  outsourced fire and rescue services and equipment

Tax / HMRC consults on 20% VAT on non-EU mobile roaming charges

HMRC has opened a four-week consultation on plans announced at Budget 2017 to charge UK VAT on all telecommunication services, particularly mobile phone calls and internet browsing, used outside the EU by UK consumers

Insight / Accounting pay and vacancies on the increase

The accounting sector has seen one of the largest rises in advertised salaries over first quarter of the year, with a year-on-year increase of 6.6% compared to the national average of 1.3%, according to data from CV-Library

Tax / Updated guidance on HMRC compliance checks

HMRC has updated its guidance on what happens during compliance checks on businesses, including details of what constitutes a ‘reasonable excuse’

Accounting / IASB plans amendments to IFRS 9 to address cashflow risks

The International Accounting Standards Board (IASB) is planning minor amendments to the financial instruments standard, IFRS 9, before it has even come into force to address concerns over pre-payable financial assets

Tax / Conservative ‘tax lock’ could be unpicked

The Conservatives have yet to launch their election manifesto, but comments made so far on the campaign trail suggest the party is likely to consider abandoning its previous pledge not to raise income tax, VAT or national insurance taxes in the next Parliament

Insight / Top level corporate pay restraint continues

Top level pay restraint continues and executive pay levels are falling in real terms, with getting on for half of top bosses receiving no salary increase this year, according to PwC’s mid-season analysis of FTSE 100 remuneration policies

Tax / Treasury committee cancels Making Tax Digital hearing

The Treasury Select Committee has cancelled the two evidence sessions it had scheduled for this week, one on Making Tax Digital and the other with the Chancellor of the Exchequer, due to the upcoming snap general election

Tax / President Trump signs executive orders on Dodd-Frank

The move towards an overhaul of the Dodd-Frank Act in the US is progressing with the issue of two executive orders following President Trump’s February announcement of a complete review of the effectiveness of the legislation 

Tax / Tax-free childcare scheme opens

The channels are now open for working parents to start applying for two new government childcare schemes launching this year – tax-free childcare which begins immediately and 30 hours free childcare which starts in September

Insight / Jail term for property developer in £640k fraud

A former Ascot-based property developer, who stole the details of an offshore company in the British Virgin Islands and forged documents to commit fraud and evade VAT, has been jailed for three years and seven months following an HMRC investigation

Insight / Charity Commission finds failings in accounts quality

Over half of charity accounts still fail to explain how the charity is meeting its objectives, while a quarter do not meet basic standards for users, rising to almost half in the very smallest charities, according to research from the Charity Commission