Tax / What you need to know: annual investment allowance increased to £1m

The £1m annual investment allowance (AIA) limit could translate into an effective annual limit of less than £17,000 due to straddling periods, explains Will Silsby, technical officer at the Association of Taxation Technicians

Tax / Changes to tax liabilities on termination payments create complexity

An overhaul of the rules on taxation of termination payments has directly affected the tax treatment of payments in lieu of notice (PILONs) and foreign service relief (FSR), creating complicated questions for businesses when applying them to redundancy situations. Tim Stovold, head of tax at Kingston Smith, explains 

Tax / HMRC steps up MTD letter campaign

HMRC has issued another 180,000 letters, following on from the 20,000 sent last week, to businesses affected by Making Tax Digital (MTD) for VAT, explaining the change and what they need to do to prepare for April 2019

Insight / Brexit deal proposals prompt Cabinet resignations

A proposed agreement between the UK and the EU, including single market access for Northern Ireland and a five-year post-transition commitment to VAT, has prompted resignations from Cabinet ministers Esther McVey and Dominic Raab

Tax / BBC still to resolve tax issues for freelancers

The BBC has unresolved issues relating to the tax status of dozens of its on-air presenters and others hired through personal service companies (PSCs) which may have future financial implications for the broadcaster, a National Audit Office (NAO) inquiry has found

Accounting / IASB confirms one-year deferral for IFRS 17

The International Accounting Standards Board (IASB) is proposing a one-year deferral of the effective date for IFRS 17 Insurance Contracts, under which insurance contract liabilities will be calculated as the present value, to 2022

Insight / 55% of charities fail to assess board financial competence

A survey of 200 charities suggests that the governance competency of charities continues to be deficient in financial matters and are failing to take advantage of available guidance and training

Audit / FRC announces audit monitoring priorities

The Financial Reporting Council (FRC) has indicated it plans to focus on the use of audit quality indicators (AQIs) and applying technology in audits during its inspections for 2019/20, as the regulator released details of its thematic reviews, priority sectors and audit areas of focus

Tax / Government caves in to pressure on fixed odds betting changes

The government has been forced into a U-turn over the planned timetable for reducing the stakes on fixed odds betting terminals (FOBTs), which will now be introduced in April 2019 following public and political outcry and a ministerial resignation

Insight / Jail term for London grocer’s £120k VAT fraud

A London man who set up fake companies, including a jewellery shop and a holiday villas firm, as part of a £120,000 VAT fraud has been jailed for three years, following an HMRC investigation

Technical Alerts

14 Nov 2018

Insight / Charities: what needs to change in the Charities SORP? - part 6

Sarah Perrin ACA looks at the key questions being considered in the governance review of the Charity SORP committee and process now under way, including whether the SORP-making process commands confidence

Tax / OECD progresses on BEPS anti avoidance measures

Mark Cawthron LLB CTA, tax specialist at Croner-i, examines the developments in the OECD’s framework package on base erosion and profit shifting (BEPS) over the 12 months to June 2018 and the progress that has been made in the UK's approach to the 'digital challenge'

Insight / Interserve hit by outsourcing worries

FTSE 250 company Interserve is the latest outsourcer to come under financial scrutiny following the collapse of Carillion earlier this year, and has been forced to issue a statement quelling rumours of potential difficulties after its share price slumped by up to 30%

Accounting / Standards setters start work on corporate reporting alignment

The Corporate Reporting Dialogue (CRD), a group of major international corporate reporting standard setters and framework providers, has announced a two-year project focused on driving better alignment in the corporate reporting landscape

Audit / Technology driving corporate reporting change, says EY

Smart technologies including artificial intelligence (AI), increased use of non-financial data and innovative approaches to recruitment are changing corporate reporting, enabling companies to offer greater transparency and so increase public trust in business, research by EY has found

Tax / N Brown faces £9m VAT recovery challenge

Fashion group N Brown, which owns the Simply Be and JD Williams brands, faces paying up to £9m in additional VAT from 2020, after the company was told by a First Tier Tribunal (FTT) it is likely to lose its long-running dispute with HMRC

Accounting / Samsung BioLogics accused of accounting violations

South Korea’s financial services regulator has ruled that Samsung BioLogics, the biotech drug arm of Samsung Group, the country’s biggest family-run conglomerate, ‘intentionally violated accounting rules’ and has imposed sanctions on its auditors

Insight / Berketex Bride chain in administration

Sheffield-based insolvency firm Wilson Field is acting for Bridal Fashions Ltd, t/a Berketex Bride, after the fifty-year old wedding dress chain collapsed into administration, becoming the latest retail casualty on the high street

Tax / HMRC sees 62% hike in disputed tax collected through mediation

HMRC saw a 62% rise in disputed tax collected through the use of mediation last year, collecting £40.8m, up from £25.2m in 2016/17, according to analysis by RPC

Insight / Charity guidance issued on changing financial year

The Charity Commission has published guidance on the circumstances and procedures for charities wishing to change their financial year, which vary according to whether or not the charity is incorporated as a company

Technical Alerts

13 Nov 2018

Accounting / Charity accounts part 11: financial instruments

This article, the eleventh in our series on charity accounts, will focus on how financial instruments are accounted for under FRS 102 SORP, including what disclosures charities are required to make about their basic financial instruments

Insight / NEST to offer pensions savings pilot for rainy days

High street retail services provider Timpson is the first company to sign up for a two-year pilot run by auto enrolment pensions body, the National Employment Savings Trust (NEST), looking at so-called ‘sidecar savings’ options as a way of increasing employees’ financial resilience

Insight / European CFOs report rising uncertainty

Chief financial officers (CFO) across Europe are reporting a rise in levels of uncertainty and a declining risk appetite, but are adopting expansionary plans, with those based in Ireland the most committed to future capital expenditure, according to research from Deloitte

Insight / FTSE 350 needs to do more on gender equality

There remain five all-male boards in the FTSE 350, and companies need to do more if they are to hit the government’s target of a third of women in senior leadership positions by 2020, according to the annual update from the Hampton-Alexander review

Tax / Q&A: VAT on property and anti-avoidance

In our regular Q&A series from Croner Taxwise, we consider whether VAT can be reclaimed when a company sub-lets a property to a non-VAT registered business bearing in mid the relevant anti-avoidance rules under VAT 1994

Tax / Small businesses urged to apply for broadband vouchers

The government is strongly recommending that small and medium-sized enterprises (SMEs) make use of a £2,500 voucher to help with installing high-speed broadband and increase rural communities' access to the internet

Insight / 11-year ban for financial investor over client funds abuse

A financial investor has been disqualified for 11 years after an Insolvency Service investigation found he had abused thousands of pounds worth of client’s funds which were invested in volatile foreign exchange markets

Audit / Redrow builds audit future with KPMG

FTSE 250 housebuilder Redrow has appointed KMPG as its auditor for the financial year commencing 1 July 2019, ending a 20-year relationship with PwC

Insight / Tax fugitive jailed for £5m fraud

HMRC has reported that one of the UK’s most wanted tax fugitives, who escaped to Ireland 12 years ago, has finally been sent to jail for committing a £5m tax fraud, and faces a repayment order for over £7m

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