Accountancy Daily

Tax / Making Tax Digital for VAT: how will it work

Plans to go ahead with Making Tax Digital for VAT reporting from April 2019 are well under way with the government consulting on final details of the rules for so-called ‘electronic accounts’. Stephen Relf CTA ACA, tax writer at Croner-i, examines the proposals 

Insight / Grant Thornton reports 6% drop in fee income to £500m

Grant Thornton UK LLP has reported a drop in fee income to £500m, down from £534m in 2016 due to a one-off cancellation of a major government funded contract, but profitability has improved as the number five accounting firm has strengthened various services lines, including forensic services

Tax / Case: no legitimate expectation based on HMRC manual

A claim for judicial review was dismissed as the court found that there was no legitimate expectation created by a HMRC manual and therefore it was fair for HMRC to insist rules were applied

Insight / Ex-BHS owner in court for failing to provide pension information

The former boss of BHS, Dominic Chappell, failed to hand over information on the retail businesses’ pension scheme to investigators despite being asked numerous times, a court heard

Insight / Small talent pool reason for lack of women in senior roles

One of the main reasons for the lack of women in senior roles across the financial services sector is due to a small talent pool, a partner from PwC has told the Treasury Committee, with calls for firms to be tracked and held accountable on their gender diversity progress

Insight / Bishop Fleming announces change to managing partner

Top 50 firm Bishop Fleming has announced Andrew Sandiford as its new managing partner as part of enhancements to the management structure of the business, which has expanded significantly in recent years

Insight / Failed musical hits £2.6m wrong note

A failed theatre production company which collapsed just before Christmas, ending plans for a nationwide tour of a musical starring celebrity tenor Russell Watson as the voice of God, could owe creditors as much as £2.6m, liquidators from Quantuma report

Tax / No change at top of Treasury in Cabinet reshuffle

Chancellor Philip Hammond held on to his seat in Prime Minster Theresa May’s new year Cabinet reshuffle, which saw no major changes after senior members refused to change jobs, including health secretary Jeremy Hunt who turned down the option to become business secretary

Tax / Concerns over cashflow impact of post-Brexit VAT regime

MPs and business groups are expressing increasing concern about the impact of Brexit on business cashflow, after it emerged that over 130,000 companies could face paying VAT upfront on goods imported from the EU when or if the UK leaves the customs union in March 2019

Insight / Nine insolvency advice companies placed into liquidation

Nine companies which claimed to provide services to directors of insolvent companies, have been placed in provisional liquidation following an investigation by the company investigations unit of the Insolvency Service

Insight / Jailed accountant and company boss to pay back £3.5m or do more time

A management accountant and a company director from Kent who funded lavish lifestyles through tax fraud have been ordered to pay back more than £3.5m within three months, or serve longer prison terms and still owe the money

8 Jan 2018

Tax / Returning to the UK - tax charges on overseas property sale

Complex tax rules surround residency so anyone looking to return to the UK after a period abroad needs to make sure they avoid any unexpected UK tax bills if they sell property prior to their return to the UK. Gill Tallon CTA, deputy managing partner at Mercer & Hole, considers the tax issues facing a returning couple with properties to sell

Tax / Non-resident capital gains tax and penalties for late returns

Stephen Relf CTA ACA considers the penalty structure for the new rules on the charge to capital gains tax on residential property which is now extended to non-UK residents and requires a 30-day filing requirement, especially since HMRC lost the McGreevy case

Audit / KPMG quits Grenfell Inquiry role over audit conflicts

 KPMG is standing down from its role as project management adviser to the Grenfell Inquiry with immediate effect, after concerns were raised about the Big Four firm’s auditing contracts for some of the organisations under investigation over their role in the fire in the tower block in June last year, which claimed 71 lives

Insight / Prager Metis LLP snaps up Smallfield Cody

Accounting firm Prager Metis LLP has merged with Smallfield Cody & Co, a specialist firm based in London, which focuses on providing services to UK media and entertainment clients

Accounting / FASB to simplify leasing standard implementation

The Financial Accounting Standards Board (FASB) is consulting on changes to the US leases standard in a bid to reduce costs and ease implementation, in response to stakeholder concerns

Insight / Hikes in minimum wage could increase pace of automation

Rapid increases in national minimum wage (NMW) rates could result in more jobs becoming automated, according to analysis by the Institute for Fiscal Studies (IFS), which warns that government should look closely at the potential unintended consequences of rising wage rates for the lower paid workforce

Insight / AAT introduces three entry-level qualifications

The Association of Accounting Technicians (AAT) has launched three new entry-level qualifications covering business skills, bookkeeping and accounting software, designed to help students start a career in finance

Tax / VAT cut on bridge toll to benefit Welsh business

Commuters, drivers and businesses across south Wales and the south west of England are set to make savings as a result of the UK government’s decision to reduce the charges to cross the Severn toll bridges by removing VAT

Tax / EU pushes for 15% minimum VAT rate

The EU is consulting on a draft directive that would make permanent the provision in the EU VAT Directive that requires all member states to levy a minimum standard VAT rate of at least 15%, which is set to lapse from the beginning of this year

Insight / Brexit concerns increase among CFOs

CFOs seeing increasing risks to their business from Brexit and a slowing UK economy are reacting with a renewed focus on cost control, according to Deloitte’s latest survey

Insight / Tax fraud provides sentence for food delivery boss

A company director who used his food delivery business to make more than £150,000 in false tax claims over ten years has been sentenced

Tax / Case: not proportionate to strike out appeals

A First Tier Tribunal decided to not strike out three appeals against personal liability notices, for failing to provide documents, as it was not proportionate and there was too much at stake

5 Jan 2018

Insight / Finance Mole: no-one warned me about Bitcoin

Finally shot of his old job, Finance Mole is cornered on his first day by a bunch of Bitcoin evangelists plus, accountants and advisers still have a job when it comes to Making Tax Digital, FCA head warns about cryptocurrencies

Tax / Top mistakes people make when completing their tax returns

Every year, with new tax rules and new ways of earning money, people make classic mistakes when filling in their personal tax return in the rush for the 31 January 2018 self assessment deadline. Jonathan Amponsah CTA FCCA, founder of The Tax Guys guides taxpayers through potential pitfalls

Tax / IT glitch at HMRC forces delays as self assessment returns rejected

HMRC is still trying to rectify problems with the self assessment tax return online service for taxpayers attempting to use Verify to access online services

Insight / Charities urged to check MiFID compliance requirements

Charities which invest and trade on the financial markets in the UK are being warned they now need to apply for a legal entity identifier (LEI) following changes to the regulations under the European Markets in Financial Instruments Directive (MiFID II) 

Tax / MPs call for 25p ‘latte levy’ to tackle cup waste

MPs are putting pressure on government to introduce a 25p latte levy on disposable coffee cups to cut the amount of waste, calling for a total ban of single use cups by 2023 unless manufacturers can make them recyclable

Insight / Half of employees think colleagues undermine productivity

Gossiping, complaining and messy workspaces are the top pet peeves driving employees to wish for new colleagues in 2018, with many believing they could do a better job than their manager, according to research from CABA, the charity that supports the wellbeing of chartered accountants

Insight / Disqualification on the menu for Chinese takeaway director

The director of a Chinese takeaway has been disqualified for 10 years for causing the company to deliberately understate its profits, following an Insolvency Service investigation which found he owed some £500,000 in unpaid taxes

Accounting / FRC issues agenda for 2018/19 priorities meeting

The Financial Reporting Council (FRC) has set the date for the 2018/19 priorities meeting where it will set out its key objectives and work plan for the next 12 months

Insight / People in the news: Blick Rothenberg, Wilkins Kennedy, KPMG

In this week’s moves and appointments roundup, heather Self joins Blick Rothenberg as a partner, wilkins Kennedy appoints a head of VAT, KPMG makes two promotions in its cyber security practice

Insight / HW Fisher administrators save football site Squawka

HW Fisher administrators have saved London-based football website Squawka from liquidation, saving 35 jobs

Insight / Companies slow to hit gender pay reporting deadline

With just three months to go before the deadline for publishing gender pay gap reports for the first time, official figures suggest more than 90% of affected companies have yet to comply with the new rules, according to research from RSM

Tax / MPs to grill HMRC over online tax-free childcare IT difficulties

HMRC officials are set to be grilled by MPs over the operation of the new childcare service website, which has been heavily criticised by parents over difficulties in logging on since its launch last year, as part of a Treasury committee inquiry into childcare policy and its influence on the economy

Insight / Mechanic’s £210k tax fraud grinds to a halt

A car mechanic has been jailed for 18 months for failing to pay £210,000 of tax and national insurance due on self-employed earnings, following an HMRC investigation

Insight / Chancellor will not rule out EU customs deal post-Brexit

Chancellor Philip Hammond has refused to rule out the UK being in a customs union with the EU as part of its end-state relationship, fuelling concerns that continued uncertainty over trading arrangements will result in confusion once Brexit takes place in March 2019