Accounting / SFO arrests over Patisserie Valerie accounting fraud

The Serious Fraud Office has stepped up its investigation into café chain Patisserie Valerie with the arrest of five people over the accounting fraud uncovered last autumn

Tax / Do you have the right tax code?

David Redfern, director of DSR Tax Claims, explains how HMRC determines employees’ tax codes and calculates how much tax should be deducted from income

Audit / Grant Thornton invests £7m to rebuild audit practice

In a bid to restore confidence in its audit business, Grant Thornton plans to set up an audit quality board and increase audit staff numbers with a mix of external senior hires and an increase in trainee numbers

Tax / Payment on account errors delay bills for taxpayers

Problems with HMRC’s IT systems earlier this year and calculations for payment on account mean that some taxpayers will not receive tax demands this July, when they actually owe over £1,000 to the taxman

Accounting / IASB plans to prioritise intangibles reporting under IFRS

The head of the International Accounting Standards Board (IASB) has set out plans for changes to financial reporting under IFRS to reflect the importance of intangibles reporting, create a stricter definition of operating profit and introduce management performance measures (MPM), 

Tax / NHS chief calls for gambling tax to pay for addiction treatment

The head of the NHS has called for a mandatory tax for betting companies to help pay for treatment for gambling addicts

Insight / VAT carousel traders arrested over €2m drinks fraud

A group of VAT carousel fraudsters involved in a multimillion-euro scam involving the EU drinks market and missing trader intra-community (MTIC) fraud have been arrested across Europe

Tax / Majority of SMEs unaware of £1m machinery tax break

Despite a temporary two-year increase in the annual investment allowance (AIA), nearly two thirds of UK SMEs are not aware of the £1m tax break, which has been criticised for being over-complex due to straddling periods

Audit / ISA 500 audit evidence review must not be over engineered

Attempts by the IAASB to amend ISA 500, the audit evidence standard, the very fundamentals of how auditors gather and assess evidence, must be right first time as technology and regulator oversight is putting the audit profession under scrutiny, argues Katharine Bagshaw FCA

Technical Alerts

21 Jun 2019

Tax / IR35: what a performance

Difficulties with interpreting the IR35 rules have been highlighted by conflicting decisions at tax tribunals where apparently similar IR35 cases involving TV and radio personalities including Lorraine Kelly and Christa Ackroyd highlight the subjective nature of the employment tests. Peter Rayney FCA, CTA (Fellow), TEP considers the implications for private sector employers

Tax / Tax traps to watch when selling your main home

Capital gains tax on the sale of a home can be complex when main residence relief comes into play. Lisa Spearman, private client partner at Mercer & Hole, explains the key tax compliance issues to consider to avoid an unexpected tax bill

Tax / Future of payroll managers at risk from AI

Advances in technology will open up wider opportunities for payroll professionals, as artificial intelligence (AI) replaces wage packets and biometrics take over the clocking-in routine, argues Anthony Macey, director of Portfolio Payroll

Tax / HMRC takes action to stop renewable energy carousel VAT fraud

The government is cracking down on abuse of renewable energy certificates where fraudsters get involved in complex reselling to steal VAT payments and deprive the Exchequer of revenue

Insight / People in the news: Kingston Smith, PwC, Deloitte, Creaseys, Johnston Carmichael

In this week’s accountancy career moves, partner hires at Deloitte, Kingston Smith and Newby Castleman, non-exec director at PwC, and promotions at Johnston Carmichael and Creaseys

Tax / Inheritance tax waived for Kindertransport compensation payments

The government plans to relax the inheritance tax rules for Kindertransport compensation payments so that affected taxpayers will not be liable for tax on any amounts received from the fund

Insight / Extended restrictions for bankrupt who disposed of assets

A Lincolnshire auctioneer who helped a company in administration dispose of assets to the detriment of its creditors has had his bankruptcy restrictions extended for eight years

Technical Alerts

20 Jun 2019

Audit / Cineworld drops KPMG after 15 years as auditor

International cinema giant Cineworld replaces KPMG with PwC after Big Four firm refuses to bid in new audit tender, reports Philip Smith

Tax / Small businesses worst offenders owing £14bn in tax

The amount of uncollected tax has hit £35bn, with small businesses accounting for the largest percentage of the tax gap at £14bn while VAT evasion remains a major drain on tax revenues, reports Sara White

Insight / ACCA launches computer-based exam practice platform

ACCA (Association of Chartered Certified Accountants) has launched a brand new accountancy exam practice platform for computer-based exams (CBE) targeted at training providers

Tax / June electronic payment deadline falls on a weekend

HMRC is warning employers that the June electronic PAYE payment deadline of the 22nd falls on a Saturday this month, which means settlement must be made a day early

Tax / Lack of accessible software for MTD opens up exemptions

Anyone who cannot find suitably accessible software to comply with the Making Tax Digital for VAT rules should apply to HMRC for a temporary exemption, for example for age or disability reasons, says the Low Incomes Tax Reform Group (LITRG)

Accounting / EFRAG consults on hedge accounting under IFRS 17

The European Financial Reporting Advisory Group (EFRAG) is running an outreach project to examine potential hedge accounting problems for IFRS reporters as part of its IFRS 17 endorsement project

Technical Alerts