Tax / Q&A: principal private residence (PPR) tax liability

When a taxpayer owns more than one property it can make sense to apply for principal private residence (PPR) with HMRC if the ownership falls within the two-year time limit. Angela Robson, tax consultant at Croner Taxwise considers the timing issues

Accounting / Charity accounts part 3: SoFA presentation and disclosures

This article, the third in our series on charity accounts, will focus on the objectives of charities’ Statement of Financial Activities (SoFA), outlining what information is included, and what information should be disclosed under FRS 102 SORP

Tax / 40% of businesses unaware of Making Tax Digital for VAT

Over 40% of businesses about to be affected by Making Tax Digital for VAT are not yet aware of it, despite the April 2019 deadline for its introduction, and 20% have made no preparations, according to research by ICAEW

Accounting / Big Four challenged over climate change reporting

Environmental lawyers ClientEarth have reported four companies to the Financial Reporting Council (FRC) over failures to address climate change trends and risks in their reports to shareholders, and have challenged their Big Four auditors to explain their approach

Tax / OECD updates guidance on country-by-country reporting

The OECD’s inclusive framework on base erosion and profit shifting (BEPS) has released additional interpretive guidance to give certainty to tax administrations and multinationals on the implementation of country-by-country reporting (CBCR), which is action 13 in its plan to tackle tax avoidance

Tax / HMRC’s head of strategy leaves for Bank of England job

Nick Lodge, the director general of HMRC’s strategy group, has taken up a new position with the Bank of England, after a 28-year career with the tax authority

Insight / Jail term for VAT-evading recruitment agency boss

The boss of two recruitment agencies who failed to pay over more than £470,000 VAT and spent it on houses and a luxury holiday home, has been jailed for 27 months following an HMRC investigation

Insight / Business losses from mandate fraud double

Losses to business from mandate fraud have more than doubled in the last year to reach £77m, according to analysis by RSM

Technical Alerts

17 Sep 2018

Tax / Bull: national insurance u-turn saves self-employed £550 a year

The government's reversal on the proposed abolition of Class 2 national insurance contributions for the self-employed has been greeted with general dismay but it should be a cause for celebration, says George Bull, senior tax partner at RSM

Tax / May: IHT is over-complicated and needs reforming

Despite recent statistics showing revenue raised by inheritance tax on the increase, Nigel May CTA, senior tax partner at MHA MacIntyre Hudson, argues that the tax is too complicated from the residence nil rate band and taper relief to complexity around the seven-year gifting rules

Accounting / LLP accounting: revenue recognition - part 3

In the third of a new series on accounting for limited liability partnerships (LLPs), Iain Storey of Price Bailey, explains what to consider when recognising the revenue of an LLP

Insight / PwC revenues grow 5% to hit £3.8bn

PwC UK has reported a 5% increase in revenues for the year ended 30 June 2018, at £3.764bn, up from £3.6bn, and has reversed the trend of the last two years which saw reductions to partners’ distributable profits

Insight / FCA sees mastermind of £2.8m scam jailed for 11 years

Michael Nascimento, the mastermind of a £2.8m boiler room fraud which marked the largest-ever fraud prosecution brought by the Financial Conduct Authority (FCA) has been sentenced to 11 years’ imprisonment

Insight / FCA takes action on debt management company

The Financial Conduct Authority (FCA) has obtained an urgent High Court order appointing a provisional liquidator in respect of Total Debt Relief Ltd (TDR), to protect its customers’ money, and is also petitioning for the debt management company to be wound-up

Insight / Serious financial failings at unregistered charity

The Charity Commission has found serious failings at an unregistered charity whose trustees failed to account for significant sums of charitable funds donated to it, and which has now ceased to operate

Tax / HMRC clarifies VAT rules on domestic service charges for landlords

HMRC has published updated guidance for property management companies and others clarifying the VAT exemption for domestic service charges and what to do if it has been wrongly applied

Insight / FTSE 100 failing at diversity reporting

The way the UK’s largest companies report on boardroom diversity needs improvement, according to research conducted for the Financial Reporting Council (FRC), which found that only 15% of FTSE 100 companies fully complied with the UK corporate governance code’s provision in this area

Tax / HMRC targets inheritance tax returns

Rising house prices and increases in other assets have seen HMRC launch more investigations to ensure individuals are paying the correct amount of inheritance tax (IHT), with the number of tax probes up by 5% this year, according to analysis from UHY Hacker Young

Insight / Andersen Global announces board of directors for Europe

Andersen Global, the international association of tax specialist firms set up by former Arthur Andersen staffers, has announced a new board of directors for Europe, including the heads of its London and Dublin representative firms

Technical Alerts

14 Sep 2018

Tax / Entrepreneurs’ relief and the equity dilution trap

Entrepreneurs’ relief (ER) can easily be lost due to the dilutive effect of a subsequent share issue – but help is at hand, explains Peter Rayney FCA, CTA (Fellow), TEP

Audit / Grant Thornton calls for independent body to hand out FTSE audits

In a bid to kickstart the debate on the future of FTSE audit, mid-tier firm Grant Thornton is calling for the creation of an independent quango to appoint auditors for listed company audits to improve competition beyond Big Four audit firms

Insight / Called to account: September 2018

In this month's roundup of cases and disqualifications, £2.4m VAT fraud gang leader jailed, builder disqualified over hidden sales and VAT loss, shop owner jailed over £960k tax fraud

Tax / Tribunal denies HMRC £583k in referee appeal

The First Tier Tribunal (FTT) has upheld an appeal against HMRC, ruling that it should have treated a group of professional football referees as contractors and not as employees, reports James Bunney

Insight / MPs challenge Cabinet Office over outsourcing monitoring

MPs have accused the Cabinet Office of failing to learn lessons from the collapse of Carillion, saying there remains a risk that those responsible for monitoring future government outsourcing contracts ‘could have the wool pulled over their eyes by an unscrupulous supplier’

Insight / Government issues 'no deal' competition and insolvency papers

The government has published documents setting out its position in the event of a ‘no deal’ Brexit, including information relating to mergers and acquisitions, the future role of the Competition and Markets Authority (CMA), and insolvency

Insight / Charity Commission double defaulter inquiry brings £25m to account

The Charity Commission has accounted for some £25m of charity income as a result of its pre-inquiry and class inquiry work into ‘double defaulter’ charities in the past year

Insight / UK employees less ethical than European counterparts

UK employees seem to take a more lenient approach than the average European employee to questionable workplace practices, according to a survey by the Institute of Business Ethics which found that 38% believe petty fiddling is inevitable in a modern organisation compared to 30% of their European counterparts

Insight / EY launches financial wellness support for staff

EY has launched a financial wellness hub for its staff in the UK, with the aim of helping them to manage their personal finances and improve their financial wellbeing

Insight / People in the news: Deloitte, RSM, Larking Gowen

This week's news of professional moves in the sector includes a private markets tax partner appointment at Deloitte, RSM gains a financial services risk assurance partner in its London office, Larking Gowen appoints a head of personal tax

Insight / HMRC outlines ‘no deal’ preparations for EU-only UK traders

HMRC has written to 145,000 VAT-registered businesses across the UK, including Northern Ireland, which only trade with the EU, explaining changes to customs, excise and VAT in the event of a ‘no deal’ Brexit, which would require them to complete customs declarations for the first time

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