Tax / Company car tax: key issues for fleet managers

Nigel Morris, tax director, MHA MacIntyre Hudson examines the current state of company car taxation and the key issues for fleet managers

Tax / Post-Brexit VAT non-alignment to add to consumer costs

An amendment to the Brexit customs paper, passed by a narrow majority in Parliament on Monday, which will see the UK exit the EU VAT regime is also likely to increase costs for UK consumers buying goods directly from EU businesses, RSM is warning

Insight / Dodwell named as member of the GAAR advisory panel

Bill Dodwell, former head of tax policy at Deloitte and regular contributor to Accountancy magazine, has been confirmed as a member of the General Anti-Abuse Rule (GAAR) advisory panel while also taking up a role as a part-time senior policy adviser at the Office of Tax Simplification (OTS)

Tax / HMRC guidance on disguised remuneration scheme loan charges

HMRC has issued guidance on disguised remuneration schemes, whereby loans are paid instead of ordinary income to avoid income tax and National Insurance contributions (NICs), with users of such tax avoidance schemes now facing charges if they have not repaid their loan or agreement settlement by 5 April 2019

Insight / Government wins vote on leaving customs union

In a tense evening of voting, the government has seen off attempts to alter its agreed post-Brexit trade strategy, with the defeat of an amendment which sought to insist the UK should be forced to join a customs union with the EU if no agreement were reached on frictionless trade by 21 January 2019

Accounting / Global insurers see costs of IFRS 17 implementation balloon

Global insurers have significantly underestimated the costs of moving toward a new accounting regulation, IFRS 17 Insurance Contracts, with more than a third now budgeting over €50m (£44.2m) for implementation, according to research from Deloitte

Audit / FRC auditor fines hit £18m mark

Fines imposed by the Financial Reporting Council (FRC) shot up by 23% to reach £17.96m last year, compared with £14.59m in 2016/17 as the regulator responded to pressure to crack down on failures at audit firms, according to research by Thomson Reuters

Insight / Pension company liquidated over £4m abuse

A Kent pension company has been ordered into liquidation at the High Court after an Insolvency Service investigation revealed it had abused over £4m of investors’ savings

Tax / HMRC clarifies VAT treatment of car dealer deposit contributions

HMRC has published a brief explaining its policy on the VAT accounting treatment of car sales promotions where payments are said to be made by motor dealers to finance companies on behalf of the end customer, amid concerns that dealerships and others are adopting different approaches to these dealer deposit contributions (DDCs)

Technical Alerts

17 Jul 2018

Accounting / 2018 Revised Pension SORP: briefing note

A revised and refreshed version of the accounting rules for the pension sector, the Pension SORP, has been released to take into account recent amendments to FRS 102. Here the Pensions Research Accounting Group (PRAG) provides a briefing note on the significant changes

Tax / PAYE code notices delayed

HMRC is warning employers of problems with its online PAYE service, which include failure to supply employers with this year’s P9 tax code notices, advising them of the correct code for employees for the new tax year, and instances where PAYE accounts are not showing the latest position

Insight / Regulator investigates Islamic independent school charity

The Charity Commission has opened a statutory inquiry into Darul Uloom School, based in London, over concerns about potential misconduct and mismanagement at the charity, which has been the subject of investigations by the police and the Department for Education

Tax / £20bn fund for NHS will raise taxes

The Office for Budget Responsibility (OBR) is warning that the Prime Minister’s recent pledge to increase spending on the NHS is likely to put significant pressure on public finances, placing public sector net debt on an ‘unsustainable upward trajectory’, unless the government introduces future tax rises or spending cuts

Audit / IAASB consults on updates to risks of material misstatement standard

The International Auditing and Assurance Standards Board (IAASB) is consulting on revisions to ISA 315, Identifying and Assessing the Risks of Material Misstatement, which are designed to ensure the standard reflects developments in technology and changes in business practice

Insight / FTSE 350 senior level gender diversity flatlining

Corporate UK is missing out on a £13bn ‘gender dividend’ because companies are still failing to get enough women into top roles, with no real progress since 2016 and just 16% of FTSE 350 executive committees female, a proportion which has not changed in two years, according to research from diversity consultancy the Pipeline

Insight / Single financial guidance body CEO announced

The Department for Work and Pensions has appointed John Govett as the first chief executive officer of the new single financial guidance body (SFGB), which will bring together three existing money and pension advice services

Technical Alerts

16 Jul 2018

Tax / Inheritance tax accounts IHT400: clarifying the timeline

HMRC has succumbed to pressure from practitioners and estate administrators to provide a timeline for when replies to submitted inheritance tax accounts IHT400 will be received. Rebecca Goldring, manager at Blick Rothenberg explains 

Audit / MPs flag concerns over ‘Big Four only’ bank audit rules

MPs are challenging the Prudential Regulation Authority (PRA) to answer claims that it has questioned the potential appointment of Grant Thornton as auditor to Goldman Sachs, on the grounds of concerns over the mid-tier audit firm’s capabilities

Audit / FRC publishes revised corporate governance code

The Financial Reporting Council (FRC) has published its revised UK corporate governance code, which it says places emphasis on businesses building trust, with greater board engagement with workforce views and an end to ‘formulaic calculations of performance-related pay’ for executives

Tax / Griffiths resigns as small business minister

Andrew Griffiths, MP for Burton, has resigned as small business minister in the Department for Business, Energy and Industrial Strategy (BEIS) after sending texts of a sexual nature to two female constituents

Tax / HMRC under fire over ‘mutuality of obligation’ in contractor jobs

HMRC has come under fire for failing to include a test for mutuality of obligation (MOO) as part of its check employment status for tax (CEST) tool used to determine whether or not public sector contractors fall within the IR35 framework, amid claims this approach will prove unworkable if it is extended to the private sector

Tax / Reversal on care worker ‘sleep-in’ back pay causes HMRC concern

A Court of Appeal ruling on payments to care workers on ‘sleep-in shifts’, which says they should receive a flat rate per night and not the national minimum wage (NMW), is set to save social care providers £400m in back pay, but looks likely to raise a number of issues regarding HMRC’s enforcement approach

Insight / £2.4m VAT fraud gang leader jailed

The ringleader of a 19-strong gang has been jailed for four years and eight months after he led a £2.4m VAT repayment fraud

Technical Alerts