Tax / Getting to grips with entrepreneurs’ relief makeover

Finance Bill 2018-19 heralds some important changes to the entrepreneurs’ relief legislation, including tighter rules to ensure that shareholders beneficially own at least 5% of the true economic rights in the company and changes to treatment of alphabet shares. Peter Rayney FCA CTA explains the potential tax pitfalls

Tax / HMRC delays MTD for business due to Brexit

HMRC is to continue rolling out Making Tax Digital (MTD) for VAT but has warned that the wider extension of the MTD programme for businesses will be delayed as IT developers are refocused on Brexit customs delivery

Tax / How to make Christmas tax deductible and keep HMRC happy

The season of goodwill is upon us. Many business owners will be ‘splashing out’ on gifts, parties, awards and other kind gestures to end the year on a high. Tax Guys CEO Jonathan Amponsah CTA FCCA, gives the lowdown on nine ways to reduce your tax bill this festive season while adhering to the tax code

Tax / Payroll services company tops HMRC defaulters list owing £12m

An online electrical goods seller based in China and a payroll services company from London top the latest HMRC of tax defaulters, while takeaway owners, dog breeds and IT consultants are among others to be named and shamed

Insight / Dealing with work relationships

Christmas parties during the festive season are popular with most accountants and tax advisers, but do not let behaviour cross the line and consider whether relationships at work should be declared, says Simon Wright, managing director of

Insight / BoE redefines staggering expenses policy

The Bank of England (BoE) has published a new travel and expenses policy for staff, six months after the Treasury select committee took it to task for failing to consider value for money, with MPs saying they were ‘gobsmacked’ at the amounts spent on flights and the annual summer party

Insight / FCA ban and £20K fine for investment adviser

The Financial Conduct authority (FCA) has banned Angela Burns from acting as a non-executive director (NED) and fined her £20,000 for failing to act with integrity at two mutual societies because she did not notify them of potential conflict of interest

Accounting / IASB to propose amendment to IFRS 17

The International Accounting Standards Board (IASB) has decide to look at an amendment to IFRS 17 Insurance Contracts, relating to the separate presentation in the financial position statement of groups that are either assets or liabilities

Insight / NAO attacks Army’s Capita recruitment deal

There is further controversy surrounding government outsourcing, after a highly critical National Audit Office (NAO) report found the Army’s use of Capita to run its recruitment systems resulted in delays and a recruiting shortfall

Technical Alerts

Direct Tax / SDLT guidance updated

13 Dec 2018

Audit / FRC future uncertain as Wates principles launched

Launching the Wates corporate governance code for large private companies, James Wates praised the work done but admitted that the future involvement of the Financial Reporting Council (FRC) was overshadowed by the impending publication of the Kingman review into the regulator

Insight / Andersen Global adds fourth UK firm

Andersen Global, the international association of tax specialist firms set up by former Arthur Andersen staffers, has added a fourth UK firm, announcing a collaboration with Claritas Tax Ltd, a tax advisory and compliance services firm based in Birmingham

Insight / Mobile phone boss rings up 10-year ban

A Glasgow mobile phone boss who submitted false tax returns and fake accounts, resulting in non payment of over £500,000 in tax, has been banned for ten years following an Insolvency Service investigation

Insight / KPMG International posts record $29bn revenues

KPMG International has announced record aggregated network revenues of $29bn (£22.9bn) for the fiscal year ending 30 September 2018, with a 7.1% increase on the previous year in local currency terms

Insight / NAO critical of BBC’s 45% Eastenders overspend

The BBC has failed to deliver value for money in its programme to build a new set for the TV soap EastEnders, according to a report by the National Audit Office (NAO) which said the broadcaster underestimated aspects of complexity, cost and risks of its approach, resulting in a 45% budget overspend

Insight / Big Four disclose 37 partners fired in four years

EY, PwC and KPMG have followed Deloitte’s lead in disclosing that they have also recently fired partners over accusations of bullying and sexual harassment, in what is being seen as a move to encourage a more inclusive culture at the Big Four

Tax / UK’s biggest companies pay £84bn tax annually

The amount of tax paid by the UK’s largest companies has increased for the eighth year in a row and now tops £84bn according to research from PwC, which says much of the increase is down to a £15.8% increase in corporation tax

Technical Alerts

12 Dec 2018

Tax / Scottish Budget freezes higher rate threshold at £43,430

Higher rate taxpayers will face larger tax bills in Scotland from April 2019 as the Scottish Budget confirms plans to freeze the higher rate threshold for another year, reports Sara White

Accounting / Jersey opens up US-style LLC status for companies

James Willmott, partner at Carey Olsen, examines Jersey’s recent decision to allow the creation of limited liability companies (LLCs), which will allow the island to attract more US-based clients and offers more flexibility than the current partnership status based on English law 

Tax / Charities: tax pros and cons of setting up a charity - part 9

Stephen Relf FCA CTA, lead tax writer at Croner-I, discusses the requirements and obligations of setting up a charity, and what useful tax reliefs are available to both a business and an individual

Tax / How would a change of government hit high net worth taxpayers?

A vote of no confidence in the prime minister tonight is pushing the government closer to collapse as Brexit talks stump MPs. Geoffrey Todd, partner in the private wealth team at Boodle Hatfield, highlight three of the key concerns for high net worth (HNW) taxpayers should a Labour government led by Jeremy Corbyn come to power

Insight / CMA to push for pension management reform

The Competition and Markets Authority (CMA) has announced a range of reforms to the investment consultancy sector, following a market investigation undertaken at the request of the Financial Conduct Authority (FCA)

Tax / Online marketplaces to be liable for missing VAT

The European Commission has announced new measures, due to come into force in January 2021, which will allow for a smooth transition to an updated VAT structure for dealing with online selling and will make online marketplaces liable for VAT not recovered by tax authorities

Accounting / FRC issues revised standard and guidance for bank audits

The Financial Reporting Council (FRC) has issued an international standard on auditing accounting estimates and related disclosures, covering the audit of expected credit losses in banks and which has been revised to reflect the increased importance and complexity of estimates in financial statements

Accounting / Oxford debate split over sustainability reporting

A debate over whether sustainability reporting should be mandated and organised by independent bodies or left for the markets heard broad agreement that such reporting should be done, but faced strong rejection of any compulsory requirement

Tax / Scotland pressed on land value tax

The Scottish government should consider introducing a land value tax (LVT) as a way of delivering on its land reform objectives and raising revenue in a more progressive way, an academic report has suggested

Audit / PwC in auditor driving seat at Eddie Stobart

Eddie Stobart, one of the UK’s leading supply chain, transport and logistics companies, has announced it has appointed PwC as its new auditor, replacing KPMG

Insight / IAESB consults on updating tech education standards

The International Accounting Education Standards Board (IAESB) has launched a consultation on possible changes to international standards for the teaching of IT skills, following increased demand for proficiency and the disruptive effects of new technology in many sectors

Technical Alerts