Insight / General Data Protection Regulation (GDPR): HR compliance issues

Social media is flooded with articles about the General Data Protection Regulation (GDPR), lots of statistics and conflicting information but very little in terms of cold hard facts. With the regulations less than 12 months away, Julie Lock, service development director at MHR looks at what GDPR is and what organisations should be doing from a HR perspective to ensure compliance

Tax / HMRC issues guidance on tax treatment for FRS 105 accounts

HMRC has issued guidance on the tax implications of transition to the new accounting rules for small business under the FRS 105 Micro-entities Regime, as the first year of reporting under the FRSSE replacement comes into effect, setting out recommended tax treatment

Tax / HMRC u-turn on Welsh language tax office

HMRC has reversed its decision to axe its only office team offering tax services for customers in Welsh, and has announced that the staff are to relocate to Porthmadog

Audit / PwC barred in Ukraine over bank audit

The National Bank of Ukraine has put out a statement saying it has removed PwC from the register of accounting firms authorised to audit banks, because of ‘misrepresented financial information’ in the audit of CB Privatbank, the largest commercial bank in the country, resulting in a $5.5bn (£4.2bn) ‘black hole’ in the balance sheet

Tax / Consumers to pay VAT on roaming services outside the EU

From 1 November 2017, VAT will be charged on roaming services used by UK consumers outside the EU due to the government removing the ‘use and enjoyment’ rule on telecommunication services provided to consumers, as announced in Spring Budget 2017

Tax / HMRC wins £29m tax avoidance case

HMRC has won an Upper Tribunal appeal against a tax avoidance scheme which sought to claim £122m was spent on research into brain disorders, when only £7m of it reached a genuine research company

Insight / People in the news: RSM Saffrey Champness, Blick Rothenberg

This week’s news of professional moves in the sector includes an audit partner at RSM, Saffrey Champness gains a partner in its Inverness office and Blick Rothenberg hires a partner for its global mobility tax team

Insight / Treasury introduces anti-money laundering supervision body

The Treasury has announced the launch of the new Office for Professional Body Anti-Money Laundering Supervision (OPBAS), designed to tackle potential weaknesses in the supervisory system that criminals and terrorists may be trying to exploit, and is also consulting on further developments to the anti-money laundering (AML) supervisory regime

Insight / Ilkeston FC bought out of liquidation by Notts County FC owner

Non-league football club Ilkeston FC has been bought out of liquidation by Nottinghamshire businessman Alan Hardy, who also acquired League Two club Notts County in January 2017

Tax / Creative sector sees 27% increase in tax relief payments

The UK creative sector has benefitted from a 27% increase in tax relief payments from £519m in 2015/16 to £661m in 2016/17, with an added £51m from new theatre and children’s television tax relief bringing this year’s record total to £712m

Technical Alerts

20 Jul 2017

Accounting / Small business accounts: abridged accounts - part 8

Under the small company accounting regime businesses can produce abridged accounts with truncated primary statements. Anne Cowley ACA explains how to use abridged accounts, which should not be confused with the old abbreviated accounts

Tax / HMRC’s NMW/NLW enforcement budget to increase by £5.3m

HMRC’s budget to ensure businesses are paying employees the national minimum wage (NMW) and national living wage (NLW) is to increase by £5.3m in 2017/18 after it grew significantly in April 2016 to £20m, according to government’s Labour Market Enforcement Strategy report

Insight / Government introduces parental bereavement Bill

A Bill has been introduced to allow employed parents who have suffered the death of a child to receive statutory paid leave to grieve, as part of the government’s promise to ensure bereavement support for employees despite a similar Bill failing to reach the second reading stage last year

Tax / HMRC failing to match promise on tax fairness

HMRC is struggling to convince individuals, agents and small businesses that it applies penalties and sanctions equally although it has become more approachable and faster at responding to queries in the past year, according to a survey of performance against the key elements of the department’s Your Charter of customer rights

Insight / HS2 hits buffers over unauthorised redundancy payouts

The National Audit Office (NAO) has qualified the accounts of High Speed Two (HS2) Ltd, the company set up by the Department for Transport (DfT) to develop, build and operate a high speed rail network, on the grounds it paid out £1.76m in unauthorised redundancy payments and lacked sufficient controls

Insight / Commission backs portable pan-European pension product

The European Commission is backing a new class of pan-European personal pension product (PEPP) in a bid to make it easier for workers who have had jobs in different member states to save for retirement

Insight / Buyer found for weekly newspaper titles in administration

Chris Newell, a partner at corporate recovery and business advisory firm Quantuma, has been appointed administrator to Capital Media Newspapers Ltd, a London and Dorset weekly newspapers group, and has successfully sold some of the titles, saving the majority of the jobs in the business

Insight / Haulage director delivered to jail over £160k tax fraud

A company director from Worcestershire, who claimed he failed to pay tax on account of HMRC losing his business records, has been jailed for a £160,000 tax fraud following an HMRC investigation

Accounting / FRC to remove estimated cashflow reporting in statements

The Financial Reporting Council (FRC) has published feedback to its consultation on improving the statement of cashflows with the majority of respondents agreeing with proposals that estimated cashflows should not be reported in the statements and that the direct method statement should continue to be allowed 

Technical Alerts

19 Jul 2017

Tax / Transfer pricing: re-evaluating profit splits

Robert Verzi, partner and Philip Brudney, international tax manager at Aprio, outline the implications of the profit split method in transfer pricing as part of the OECD’s Base Erosion and Profit Shifting (BEPS) project and highlight issues for multinationals as they examine global transfer pricing policies 

Tax / Making Tax Digital IT project flagged as a major risk

The delivery of HMRC’s flagship Making Tax Digital for business and its office relocation plans have been flagged up as displaying major risks in the latest annual report on the government major projects portfolio (GMPP) from the Infrastructure and Projects Authority (IPA)

Insight / Review of Groceries Code Adjudicator finds persistent ‘climate of fear’ in suppliers

A statutory review of the Groceries Code Adjudicator (GCA) has found an ongoing concern that some supermarket suppliers are reluctant to bring issues to the adjudicator owing to a ‘climate of fear’

Insight / People in their 40s will have to work until 68

The pension age is set to hit 68 within 20 years as the government sets out a new timetable for retirement dates with those in their early forties likely to be hard hit

Insight / FRC enforcement costs under budget by £2.8m

The Financial Reporting Council (FRC) reported a £2.5m surplus last year, partly as a result of efficiency sayings, but also because total expenditure was slightly down at £29.3m, due to lower than expected spending on enforcement costs and delays in recruiting staff

Tax / Taxpayers unhappy with HMRC's automated telephone helplines

Taxpayers have expressed dissatisfaction when using HMRC’s Intelligent Telephony Automation (ITA) on customer helplines with the majority attempting to avoid the system to talk directly to an adviser, according to HMRC research

Tax / Charity warns of £400m NMW backpay shock

Mencap is warning that the social care sector faces a major financial crisis, after HMRC asked for back payments of up to £400m to cover missing national minimum wage (NMW) for ‘sleep in’ staff, following an employment tribunal ruling

Audit / BBC switches £2m audit to National Audit Office as EY bows out

EY faces a £2m loss in annual audit fees as it steps down from the BBC audit as the National Audit Office (NAO) takes over the contract for the 2017/18 financial years and is currently negotiating the transition

Insight / Government to end credit and debit card surcharges

The government has introduced a new rule to stop businesses adding any surcharges to credit and debit card payments, with the regulation coming into force from January 2018

Accounting / Call for FRC to increase staffing and scope

The Financial Reporting Council (FRC) needs to consider additional staffing, and a wider selection model in order to improve its enforcement activities, according to a peer review by the European Securities and Markets Authority (ESMA) into how national competent authorities (NCAs) supervise financial information according to the guidelines

Tax / Update to BEPS guidance on country-by-country reporting

The OECD’s base erosion and profit shifting (BEPS) project has released additional guidance on the implementation of country-by-country reporting (CBCR), with the aim of providing further clarification to tax administrations and multinational companies

Technical Alerts