Insight / Historic defeat risks no-deal Brexit

With 10 weeks to go before the UK is scheduled to leave the EU the Prime Minister’s failure to win approval for the terms of her withdrawal agreement by a 230-vote margin, the worst government defeat in British history, has heightened the uncertainty businesses face

Tax / Case: HMRC knocked back over failure to comply with 'unless order'

When HMRC over-reaches its powers, the courts do take action as happened in the recent long-running BPP [2018] TC 06632 case subject to an unless order barring the tax authority from tribunal proceedings. Stan Dencher, specialist tax writer at Croner-i, examines the case

Tax / Commission proposes majority rule on EU tax votes

The European Commission has launched a debate to change the way that tax law is passed within the EU, suggesting abandoning the unanimous vote needed and relying instead on a majority in order to speed up the progress of tax legislation

Tax / Welsh income tax will track rUK rates

Using its devolved powers for the first time, the National Assembly for Wales has agreed the proposed Welsh rates of income tax for 2019-20, which means there will be no change to overall income tax rates for taxpayers in Wales in the coming financial year

Accounting / IVSC consults on non-financial liabilities standard

The International Valuation Standards Council (IVSC) has launched a consultation on a proposed new standard, IVS 220 Non-Financial Liabilities, which provides guidance on valuing for goods and services rather than financial assets

Insight / Big Four global heads make top 100 CEO listing

Despite a turbulent year for the Big Four, which saw strong criticism for their executive teams from MPs, the public and the regulators, the CEOs of EY, Deloitte, PWC and KPMG all feature in a new study of the world’s 100 most reputable CEOs

Insight / Arjowiggins’ UK paper business folds up

FRP Advisory has been appointed as administrators of Arjowiggins Fine Papers, in a move which puts more than 500 jobs at risk at Stoneywood Mill in Aberdeenshire and other paper production facilities around the UK

Insight / Interim managers appointed at animal charity

The Charity Commission has appointed interim managers to The Alternative Animal Sanctuary due to continued concerns about the governance and management of the charity

Technical Alerts

15 Jan 2019

Audit / BEIS committee warned over audit reform proposals

Both academics and business experts raised concerns of ‘unintended consequences’ of audit reforms to the business, energy and industrial strategy (BEIS) committee, with broad disagreement over whether the changes should be led by government or business, reports James Bunney

Accounting / LLP SORP 2018: what it means for limited liability partnerships

The latest version of the LLP SORP 2018, released in December, updates the LLP accounting rules to meet the requirements of the FRS 102 Triennial Review. James Waller, technical writer, audit and accounting at Croner-i, examines the key changes

Tax / Amount of late self assessment penalties falls to £75m

The number of taxpayers missing the deadline for self assessment returns has fallen dramatically over the last three years reducing penalties issued by HMRC to £75m in 2018 as 10.7 million taxpayers submitted their return by 31 January deadline

Insight / FSB demands reform one year on from Carillion

The collapse of government outsourcer Carillion on 15 January 2018, which cost the taxpayer an estimated £150m, has prompted greater scrutiny of the outsourcing market and calls for a major reform from the Federation of Small Businesses (FSB)

Insight / 78% hike in fraud cases hitting courts

The number of fraud cases reaching courts in the UK rose by 78% in 2018 according to research by KPMG Forensic, which identified 453 cases with a total value of £1.2bn in its annual survey, and warns untested customs and tax arrangements post-Brexit could see levels rise further

Tax / VAT Q&A: Payments on Account regime and threshold compliance

In our regular VAT Q&A series, Croner Taxwise VAT specialist Hilary Budd explains the ins and outs of the payments on account (POA) regime for a business straddling the POA threshold and how to leave the scheme

Accounting / EU report on disclosure of climate-related information

The technical expert group on sustainable finance set up by the European Commission in July 2018 has published its first report on companies' disclosure of climate-related information

Insight / Accountants look to invoice finance as client cash flow option

The majority of accountants are advising clients on potential sources of funding as their advisory role expands, although one in three cite a lack of knowledge about finance options as a barrier to making recommendations

Tax / Money purchase annual allowance pension warning

HMRC has issued guidance only two weeks before the self assessment deadline to help taxpayers work out when the pensions money purchase annual allowance (MPAA) applies and whether tax is payable on pension savings

Audit / Half of council CFOs want changes to external audit

The government needs to improve its oversight of the governance system to help local authorities cope with increasing financial and demand pressures, with a quarter of chief finance officers (CFO) from councils calling for external auditors to focus on value for money, according to a report from the National Audit Office (NAO)

Technical Alerts

14 Jan 2019

Accounting / Winton: use and abuse of pre-packs to drop pension liabilities

Anne-Marie Winton, partner at ARC Pensions Law LLP, examines the pre-pack administration of publisher Johnston Press, which involved the abandoning of £109m in pension liabilities, and asks whether regulators should have greater control of this practice 

Tax / Inheritance tax: transferable nil rate bands – part 2

Compliance with the inheritance tax nil rate band (NRB) is a complex area but beneficial from a tax perspective as it allows a £1m IHT exemption. Lisa Macpherson ATT TEP, head of tax technical at PKF Francis Clark, examines transferable bands and residence issues

Tax / Directors taxed under PAYE no longer required to file return

HMRC has amended its guidance on self assessment tax returns to clarify that company directors with income taxed at source under PAYE and with no other tax obligations do not need to complete a tax return

Insight / Government launches economic crime taskforce

The Home Secretary and Chancellor are to jointly chair a government taskforce which will work with senior figures from the UK financial sector to tackle economic crime, including fraud, bribery, corruption and money laundering, which is estimated to cost the UK at least £14.4bn annually

Tax / FTT cannot rule on self assessment refusal

The First Tier Tribunal (FTT) has determined that it has no jurisdiction on whether HMRC accepts or rejects self assessment tax returns in the case of a shop owner who failed to file his returns for 16 years running and was then subject to a bankruptcy petition

Insight / Patisserie Valerie admits late payment issues

High street cake chain Patisserie Valerie, which is under investigation over accounting irregularities, has admitted it has problems over delays in payments to suppliers, after the business, energy and industrial Strategy (BEIS) select committee asked the company about its payment practices

Tax / VAT receipts threatened by Brexit

VAT receipts represent an increasing percentage of HMRC’s total tax take, suggesting the tax burden is increasingly being shifted to consumers, and increasing the risks to the tax base post-Brexit, according to research by UHY Hacker Young

Insight / Calls to strengthen diversity pay reporting

MPs are keen to see more action on gender, ethnicity and executive pay reporting according to a survey by the Association of Accounting Technicians (AAT) which found widespread support for tougher regulation, and is calling for more reporting on action plans to reduce imbalance

Insight / Bespoke furniture maker in administration

KPMG has been appointed to handle the administration of furniture manufacturer Godfrey Syrett Ltd, which has collapsed due to difficult trading conditions with the loss of over 200 jobs

Audit / Calls for full scrutiny of EU banking audits

The European Court of Auditors (ECA) wants EU legislators to intervene and ensure the European Central Bank (ECB) allows full access to documents for audits related to banking supervision, arguing that the current position prevents them from carrying out their work properly

Insight / Brexit hits demand for financial services

Demand for financial services fell for the first time in five years in final quarter of last year, rounding off three full years of flat or falling optimism, according to research by the CBI and PwC which cites Brexit and economic uncertainty as key factors

Technical Alerts

Subscribe