Accountancy Daily

Tax / Termination payments – tax rule change from April 2018

Major changes to the tax calculations for termination payments are set to come into effect from April 2018 which will hit high earners and affect tax calculations. Sarah Bradford ACA CTA (Fellow) explains the changes and the affect on redundancy payouts

Tax / MPs call for protection of £30K tax-free redundancy bonus cap

MPs have laid an amendment to Finance Bill (No.2) to ensure that the Treasury will not be able to reduce the £30,000 cap on redundancy bonus payments without consultation

Tax / Airbnb pays £190k corporation tax on £650m in UK sales

Accommodation sharing website Airbnb is the latest hi tech giant to find its UK tax arrangements under scrutiny, after it emerged the company paid just £188,000 in corporation tax last year despite collecting £657m of rental payments for property owners

Audit / IT company in legal challenge over Deloitte ‘negligence’

Hong Kong-based IT solutions provider DMX Technologies has said it is taking legal action against its former auditor Deloitte for alleged negligence relating to accounting irregularities discovered in 2015, which resulted in the then CEO and chief financial officer leaving

Insight / Union launches consultation on industrial action over public sector pay cap

The Public and Commercial Services Union (PCS) has launched a consultative ballot urging members to strike or take other industrial action to protest against the government’s 1% pay cap on the public sector

Tax / CJEU issues ruling on VAT status of Mercedes leasing agreement

The Court of Justice of the European Union (CJEU) has found in favour of Mercedes-Benz Financial Services UK Ltd (MBFS) in a case concerning the VAT treatment of a specific type of car leasing agreement, in a decision which is likely to have significant ramifications for the automotive finance sector

Insight / Brokerage firm director’s ban over £8m owing

George Popescu, the director of Boston Prime Ltd, a prime brokerage firm approved by the Financial Conduct Authority (FCA), has been disqualified for 12 years after owing over £8m to creditors

Accounting / IFRS Foundation promotes communication in financial statements

The IFRS Foundation has published a case study report showing how companies from different parts of the world have improved communication in their IFRS financial statements, in a bid to encourage improvements in reporting

Tax / Over £400m of R&D tax credit claims in dispute

The amount of tax HMRC is disputing with big businesses over research and development (R&D) tax credit claims has nearly quadrupled in the past year, up from £90m to £425m, according to analysis by Pinsent Masons

Tax / HMRC stops one million visits to deceptive websites

HMRC has averted over a million visits to deceptive websites, including those which promote misleading and costly helpline numbers, with actions which include taking control of some dubious online links

6 Oct 2017

Tax / 63% of agents not confident explaining simple assessment to clients

Out of the 800 tax agents in HMRC’s latest webinar, 504 (63%) admitted to not feeling confident when helping clients understand the aspects of HMRC’s simple assessments, however this number dropped to 3% after experts from the tax authority outlined the new tax returns

Insight / Finance Mole: living it up Ibiza style in finance

Heading to the pub on a Friday is out while the office drinks trolley takes pride of place, discovers Finance Mole, plus FCA's bizarre PPI advertising campaign and couples in India name their babies after the Goods and Service Tax

Tax / Cereal producer Kellogg’s paid no corporation tax in 2016

Cereal giant Kellogg’s paid no corporation tax in the UK in the year to 31 December 2016 despite making approximately a combined £40m in profit across two of the brand’s UK companies 

Tax / Bull: UK tax base becoming too narrow

The country’s tax base is becoming too small and is causing yields to suffer, says RSM senior tax partner George Bull, who is calling for a rethink to help the public purse recover

Insight / Catering gang cooks up £240,000 VAT fraud

A man from Surrey who masterminded a six-strong gang that fraudulently claimed £240,000 in VAT repayments by setting up a fake catering business, has been jailed for three and a half years

Insight / Called to account: October 2017

The latest scandals, cases and penalties including an underwear trader pulled up for £58k VAT fraud, eBay seller avoids jail after £200k tax fraud, £158k CGT fraud puts property landlord in jail

Insight / Salary prospects good for accounting/IT skills combinations

Accounting and financial staff are currently in high demand in the permanent vacancy market, and those with specialist IT skills can look ahead to salary increases, according to two recent surveys

Tax / IR35 changes increasing public sector costs

Public sector organisations are shouldering the costs of recent changes to legislation around ‘off-payroll’ working, which have resulted in pay rate hikes, while 70% of recruiters are reporting a drop in contract placements according to the latest research from the Association of Professional Staffing Companies (APSCo)

Tax / HMRC addresses updates on real estate VAT forms

HMRC has updated some of its forms on the VAT rules relating to specific activities involving real estate to show new contact details and changes to the address to which forms should be submitted

Tax / Hammond in front of Treasury committee next week

Next week sees the first appearance by Chancellor Philip Hammond in front of the new Treasury ommittee, to be followed by a subsequent session when Mark Carney, governor of the Bank of England, will be facing MPs’ questions

Insight / People in the news: BDO, Blick Rothenberg, MHA MacIntyre Hudson

Career news this week includes an audiut partner in BDO’s Bristol office, Blick Rothenberg appoints three partners across its audit, tax and dispute resolution teams, MHA MacIntyre Hudson promotes a partner in its London office

Insight / Charity Commission inquiry into dog rescue charity’s finances

The Charity Commission has opened a statutory inquiry into Chichester and District Dog Rescue Society and frozen its bank accounts, following concerns over its financial controls

Insight / Fundraising regulator to tighten up data protection rules

The Fundraising Regulator is to consult on strengthening the sections on data protection with its code of fundraising practice, in light of the upcoming General Data Protection Regulation (GDPR) legislation, which comes into effect next year, and recent concerns about how charities use data on donors

5 Oct 2017

Tax / Making Tax Digital for VAT: what we know so far

With sketchy information available about the plans for the rollout of Making Tax Digital for VAT, Stephen Relf CTA ACA examines early plans for changes to VAT reporting including qualifying criteria, compliance and thresholds

Tax / Free software for Making Tax Digital not viable, says Xero

Accountancy software provider Xero has said providing free programmes for Making Tax Digital quarterly reporting is not practical and should not be expected as the costs to build the software and provide a good service to taxpayers are too high, reports Amy Austin

Accounting / FRC ends probe into PwC over Barclays client asset protection failures

The Financial Reporting Council (FRC) has announced the closure of its investigation into PwC’s conduct in relation to its role in reporting to the Financial Services Authority (FSA), now the Financial Conduct Authority (FCA), on Barclays Bank’s compliance with the FSA’s client asset rules, which saw the bank hit with a £37m fine for serious failings

Insight / KPMG and Exiger sign partnership to use AI-based technology to manage risk

Global regulatory and financial risk specialist Exiger has announced a partnership with KPMG to integrate its artificial intelligence platform DDIQ into the Big Four firm’s compliance solutions for its global corporate and financial institution clients

Tax / OTS review of capital allowances and accounts depreciation launched

The Office of Tax Simplification (OTS) has kicked off a review of capital allowances and accounts depreciation with a focus on simplifying the currently hugely complex treatment of tangible fixed assets, and is calling for feedback from users

Insight / Brexit transition uncertainty hits financial services planning

Unless the UK and EU negotiators agree the terms of any transition deal for Brexit by Christmas, City firms will start to activate their contingency plans to move financial services business and employees abroad, the Bank of England is warning

Tax / Prime minister pledges £2bn for affordable homes

Prime Minister Theresa May’s speech to the Conservative party conference included a commitment to what she called a ‘new generation’ of council and housing association homes, plus long term social rental deals, as part of moves to address problems in the housing market, but had few details of any innovations designed to attract the business vote

Insight / PwC global revenues up 7% to $37.7bn

PwC's firms around the world reported total gross revenues of $37.7bn for the year ending 30 June 2017, an almost 7% increase and marking 20 years of consecutive revenue growth for the PwC network, but leaving the firm in second place behind Deloitte’s global network total of $38.8bn

Insight / Mediation service on offer for pension scheme administrator changes

The Pensions Administration Standards Association (PASA) is planning a voluntary mediation service to resolve the issues experienced by schemes during the transfer of administration services from one provider to another

Tax / European Commission seeks major VAT reform to a single EU-wide system

The European Commission is planning the biggest reform of EU VAT rules in a quarter of a century, introducing a pan-European system which it says will be simpler to use and enable authorities to claw back some of the €150bn (£133bn) of VAT lost each year and tackle cross-border VAT fraud