Accounting / Triennial review: FRS 102 (2018) and directors’ loans – part 3

In the third of a four-part series on FRS 102 (2018), Michelle Roberts ACA, senior technical writer at Croner-i, explains the treatment of directors’ loans below market or zero rates of interest

Tax / Scotland’s air departure tax plans delayed

The Scottish government has announced further delays to its flagship plans to introduce an air departure tax (ADT) in Scotland, which would replace UK wide air passenger duty (APD) and offer a 50% reduction on the UK rate, to the fury of local airport operators

Audit / Deloitte qualifies Swiss miner’s accounts over potential charity ‘misappropriation’

Auditors from Deloitte have issued a qualified opinion on the annual results from Ferrexpo, a Swiss headquartered iron ore company with assets in Ukraine, over concerns about possible ‘misappropriation’ of corporate social responsibility (CSR) funds

Insight / Warnings for pensions trustees over chair’s statement

Pensions trustees have been warned to produce a chair's statement which is compliant with the law, after fines against two schemes were upheld in court

Tax / Tax updates: May 2019

In this month’s tax updates, cases include Loose Women’s star IR35 win while Hustle actor’s Big Bad Wolffe company loses NIC appeal, a taxpayer’s unsolicited tax returns are rejected, HMRC wins £40m Hyrax case, IR35 private sector rules released, Treasury reports on loan charge, HMRC consults on PRR and multinationals face CFC clawback

Tax / VAT receipts up 4.8% to £34.5bn in Q1

HMRC has reported total VAT receipts for the first quarter of the year were £34.5bn, 4.8% higher than the same quarter last year, continuing a long-term upward trend

Accounting / Draft rules on directors’ remuneration policy changes published

The government has published draft regulations about directors’ remuneration policy and reports, which extend the scope of renumeration reporting to unquoted traded companies and introduce new requirements

Audit / French Connection drops KPMG for Mazars after 25 years

Fashion firm French Connection Group has appointed Mazars as its auditor, replacing KPMG which has handled the audit since 1994

Technical Alerts

23 Apr 2019

Tax / Q&A: deemed domicile and automatic remittance

In our regular Q&A series from Croner Taxwise, tax adviser Amaira Badat considers the tax implications of the deemed domiciled rules for a non-domiciled long-term resident with foreign income below £2,000

Tax / Criminal Finances Act 2017: facilitation of tax evasion rules

HMRC is ramping up its action against businesses which fail to prevent facilitation of tax evasion by staff, but compliance levels are low. Businesses should act now given the risk of corporate criminal investigations, explains Ben Jones, tax partner at Eversheds Sutherland

Tax / Young people targeted with phone tax scams

HMRC is warning young adults who may have less experience of the tax system to be especially vigilant about tax refund scams via smartphone, as fraudsters ramp up activity after the self assessment season

Tax / US multinationals owe £4.6bn in unpaid tax

HMRC is chasing US-based multinationals for £4.6bn in underpaid tax last year, up a third since 2017, as the clampdown on companies diverting profits overseas ramps up

Insight / EU agrees gig economy minimum rights

The EU has agreed minimum rights for workers in casual or short-term employment in the gig economy, with requirements for working conditions to be made clear to workers on the first day on the job, and probationary periods limited to six months

Audit / CMA’s joint audit proposals divide opinion

Plans to introduce joint audits for listed companies have been criticised by Big Four firms as potentially further damaging the quality of audits, while challenger firms argue that this would increase access to the audit market

Insight / Distribution company drives into administration

Howard Smith and David Costley-Wood from KPMG’s restructuring practice have been appointed as joint administrators to warehousing and distribution company RPL Transport Ltd, which has collapsed after experiencing cashflow difficulties

Insight / Complaints against financial services firms decline

The number of complaints against regulated financial services firms fell in the last six months of last year, according to data from the Financial Conduct Authority (FCA)

Tax / SMEs say tax regime is not a level playing field

Businesses believes that the UK tax system is fundamentally unfair, with a bias in favour of larger companies, and want more support to stay compliant with new requirements such as Making Tax Digital, according to research by the British Chambers of Commerce (BCC)

Technical Alerts

18 Apr 2019

Audit / CMA wants Big Four operational split and mandatory joint audits

The Big Four firms face an operational split between audit and consulting services, and mandatory joint audits of large listed companies, as a result of the Competition and Markets Authority’s (CMA) final report on the UK audit market

Tax / Loose Women presenter wins IR35 case

Media star Kaye Adams, the presenter of ITV’s Loose Women programme, is the latest celebrity to win an IR35 challenge, with a First Tier Tribunal (FTT) finding the terms of her personal services contract (PSC) for BBC radio shows meant she was not an employee and did not have to pay some £125,000 of PAYE and National Insurance contributions (NICs), reports Pat Sweet

Insight / Baldwins expands Scottish reach with Scott-Moncrieff merger

Scott-Moncrieff, Scotland’s longest established accountancy firm, is to join Baldwins, part of the fast-growing challenger audit services firm CogitalGroup, which now has a significant Scottish presence via both acquisition and organic expansion

Insight / People in the news: Grant Thornton, Price Bailey, Foxley Kingham

The latest career moves across the accounting profession see senior manager promotions at Price Bailey, partner hires at Grant Thornton and a specialist payroll appointment at RSM

Insight / Lack of women in top jobs at accountancy firms

Women make up only a quarter of the positions on executive boards at the top 25 accountancy firms in the UK, despite 44% of full-time accountants being female

Insight / Brexit dominates FCA priorities for year ahead

The Financial Conduct Authority (FCA) has published its business plan for 2019/20, outlining the key priorities for the coming year, but says the immediate priority will remain supporting an orderly transition as the UK leaves the EU

Insight / Business confidence wilts under Brexit pressure

UK economic confidence improved a little at the start of the year, but remains lower than many other countries worldwide, according to research from ACCA and the Institute of Management Accountants (IMA)

Technical Alerts