Accounting / Ted Baker inventory error swells to £58m

Fashion retailer Ted Baker has revealed its inventory has been overstated by £58m, following an independent review by Deloitte, almost three times the amount originally estimated

Accounting / Dixons Carphone admits ‘clerical error’ in trading update

FTSE 250 electronics retailer Dixons Carphone has been left red-faced after being forced to issue a correction to its latest trading update, explaining its sales had decreased and not increased as it originally reported

Tax / VAT treatment of recharged salary costs

Employee salary costs can be liable for VAT when recharged between subsidiaries and related companies. Sarah Kay examines potential pitfalls for employers from risks for group payroll functions to distinctions of supply of staff or supply of services 

Tax / Sugar tax should net pre-mixed alcoholic drinks

An anti-sugar lobby group is calling for the government to extend the parameters of the sugar levy to cover pre-mixed alcoholic and energy drinks which are packed with hidden sugar

Tax / Time to pay arrangements for individual taxpayers clarified

HMRC has issued guidance for individual taxpayers on how to settle a tax debt using a negotiated time to pay arrangement

Tax / IR35 draft legislation out for consultation

HMRC has published draft secondary legislation with a four-week window for feedback from stakeholders despite being mid-way through a government review of the rules

Accounting / TheWorks faces £300k tax bill over import duty

FTSE listed discount stationery retailer TheWorks has warned it is facing a potential tax bill following an HMRC investigation into the use of zero rated import duty

Tax / Digital services tax will be temporary

The Chancellor has given the April digital services tax for multinationals the go ahead at the World Economic Forum, but only a short-term basis

Tax / HMRC opens 300,762 self assessment investigations

Taxpayers who have yet to file before the January 31 deadline are being warned to make sure their information is accurate, despite the tight deadline, as HMRC opened over 300,000 investigations into self assessment tax returns in the last year

Insight / European data breach fines hit £97m

European regulators have imposed €114m (£97m) in fines under the GDPR regime for data privacy infringements, with a further €329m in fines threatened by the UK regulator

Technical Alerts

21 Jan 2020

Tax / Government waters down loan charge rules

The government has backed down on original time frame for loan charge compliance giving taxpayers who signed up to schemes approved by HMRC before 2015 greater leniency and offering five-year time to pay arrangements

Tax / HMRC enquiries: do not assume all requests are justified

During a tax investigation, HMRC will make requests for information, but it must do so within a set timeframe and be justified, fair and reasonable. Withers tax director Jeff Millington explains the rights of taxpayers, discovery powers and time limits

Tax / US and France negotiate digital tax agreement

There are signs that France and the US are looking for a way to end their dispute over French plans to introduce a digital tax, which has seen the US threaten retaliatory tariffs on French products

Insight / Lord attempts to save SMEs with 30-day payment limit

Lord Mendelsohn is introducing a Private Members Bill to the House of Lords in an effort to tackle late payments and to strengthen the powers of the Small Business Commissioner

Insight / FS firms pause post-Brexit relocation plans

With 10 days to go until the UK officially leaves the EU, financial services firms have gone quiet on relocation announcements, and are focusing instead on the nature of post Brexit relationships, according to research from EY

Tax / Q&A: nil rate band and inheritance tax

In our regular Q&A series from Croner Taxwise, tax advice consultant, Kiya Jacobs explains how the nil rate band works under inheritance tax rules when children inherit the main residence

Insight / Military vehicle manufacturer loses cashflow battle

Blair Nimmo, partner, and James Lumb, director, from KPMG’s restructuring practice have been appointed joint administrators of Penman MW Ltd

Technical Alerts

20 Jan 2020

Insight / Wealth series: advising an entrepreneur after a business sale – part 3

Ian Dembinski, head of client development at Rathbone Investment Management, explores the partnership between accountant and wealth manager in guiding entrepreneurs through the sale of their business and managing their wealth in the longer term

Audit / Will the audit regulator toughen up?

Intense pressure on the audit regulator, the FRC, has resulted in a spate of multimillion pound fines for audit firms over audit misconduct, but there are warning signs that the latest Corporate Governance Code will raise the bar before the ARGA comes into effect, argues Mark Wearden FCCA

Accounting / Guernsey overhauls corporate insolvency rules

Guernsey is to reform its insolvency laws to create a more effective corporate insolvency regime with more accountability for directors

Tax / Shih Tzu ‘guard dog’ goes hungry after failed expense claim

Every year, HMRC receives imaginative excuses and expense claims following the 31 January self assessment deadline from out of control guard dogs to a DJ too busy to fill in his form

Insight / Beales sunk by high rent and low sales

KPMG has been appointed as administrator of department store Beales as the company collapses into administration following high rent and poor Christmas sales

Audit / Green corporate governance vital to 2030 environment goals

Accounting bodies have called for listed companies to improve reporting on the UN’s Sustainable Development Goals (SDG) in an attempt to meet 2030 environmental goals

Audit / Investors want more insight into relationship between board and employees

Companies need to improve their reporting on workforce-related issues by providing clearer and more consistent information about how staff interface with wider the business strategy, says UK standard setter

Insight / Property pair jailed for £1m tax fraud

Two men who bought and sold over 50 properties but failed to pay nearly £1m in tax, have been jailed for more than eight years following an HMRC investigation.

Technical Alerts

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