Accountancy Daily

Tax / Taxing royalties in the digital economy: do the plans make sense?

A proposed tax on royalties at the giant digital multinationals announced in the last Budget and now out for consultation is supposed to curb profit shifting but will the royalties withholding tax produce the desired effect? Paul Davies CTA ACA, tax writer at Croner-i, examines the proposals

Audit / FRC under fire over Carillion collapse at meeting

The Financial Reporting Council (FRC) was questioned on its response to Carillion’s collapse at the regulator’s annual priorities meeting, with a panel member from Aberdeen Standard Investments admitting that there were a number of red flags at the outsourcing giant which worried investors

Audit / Regulators identify risk hotspots for actuaries from Brexit to pensions

The Joint Forum on Actuarial Regulation (JFAR) is warning that poorly funded defined benefit pension schemes, the aging demographic and rising mortality rates, and post-Brexit regulatory concerns are key risks actuaries need to take into account when assessing risk probabilities

Tax / Case: reasonable excuse gives taxpayer part penalty relief

A taxpayer had part of his penalties cancelled after falling victim to the malpractice of his accountants however his six-month penalties remained as the daily reminders should have prompted him to take action

Insight / MPs hit out at lack of Brexit action and financial information

The government has been too slow to allocate skills and resources for Brexit according to an assessment by the public accounts committee (PAC), which also calls for greater transparency over the costs of delivery

Insight / BEIS research finds 'pay between assignment' contracts failing

The Department for Business, Energy and Industrial Strategy (BEIS) has published background research on the use of pay between assignment (PBA) contracts and the role of umbrella organisations, two of the topics which are under consideration in current consultations on ‘good work’ proposals

Insight / Four ‘good work’ consultations published in response to Taylor review

The government has published four consultations setting out its proposals in response to the Matthew Taylor review of modern work practices, which will form part of its newly announced ‘good work’ plan

Insight / KPMG gets teeth into Square Pie administration

Rob Croxen and Will Wright, restructuring partners from KPMG, have been appointed joint administrators of Square Pie Ltd, a food and restaurant business which has collapsed with the loss of 50 jobs

Accounting / IASB issues amended IAS 19 pension accounting standard

The International Accounting Standards Board (IASB) has issued narrow-scope amendments to pension accounting in relation to IAS 19 Employee Benefits

7 Feb 2018

Accounting / Companies Act 2006 part 13: individual accounts

This article, the thirteenth in our series on the Companies Act 2006, will focus on the preparation of individual accounts looking into Financial Reporting Standards (FRS) and International Accounting Standards (IAS) 

Insight / Longe steps down as CEO of RSM

Laurence Longe is to step down as CEO of RSM after 22 years at the head of the firm, with current CEO David Gwilliam named as his successor in the top job

Tax / Case: overpaid tax claim not allowed

The High court dismissed a taxpayers claim to recover £215,000 in overpayments of tax ruling that it had no jurisdiction to entertain this claim and the taxpayer had no reasonable grounds for bringing it

Insight / Footballer Sanchez sentenced for tax fraud

Manchester United’s Alexis Sanchez has accepted a 16-month prison sentence for committing a €1m (£890,000) tax fraud during his time at Barcelona FC, although he will not spend any time in jail

Tax / HMRC signs lease for Glasgow regional hub

HMRC has signed a 25-year lease for its Glasgow regional hub with the tax authority planning to move 2,700 employees into the building by 2021, with the Scottish building becoming the tenth lease that HMRC has signed out of the 13 regional centres

Audit / FRC to closer scrutinise top six audit firms

The Financial Reporting Council (FRC) is to introduce a new approach to monitoring the top six audit firms, seeking evidence in five areas while also assessing candidates for key roles such as head of audit, the regulator confirmed at its annual priorities meeting

Insight / BEIS unveils ‘good work plan’ in response to Taylor review

The government has committed to act on all but one of the 53 recommendations from last year’s Taylor review of modern employment practices, with a package of reforms to support the gig economy, but no plans to reduce the difference between the National Insurance Contributions (NICs) of employees and the self-employed

Tax / Consultation on simplification to PAYE settlement agreement

HMRC is consulting on secondary legislation to reduce administrative burdens by simplifying the PAYE settlement agreement (PSA) process, by removing the current requirement on employers to renew their PSA annually, and providing for an ‘enduring agreement’

Tax / HMRC guidance on changes to enveloped UK dwellings

HMRC has issued guidance covering changes to enveloped UK dwellings and related finance which took effect from 6 April 2017 and limit the availability of excluded property for inheritance tax (IHT), meaning that some properties which were previously excluded may no longer fall into that category

Insight / Tesco faces potential £4bn bill in equal pay challenge

Tesco is facing a class law suit in what is potentially the largest ever equal pay challenge in UK history, which could cost the supermarket giant £4bn to compensate workers for an apparent disparity between store workers and depot workers’ pay

6 Feb 2018

Accounting / IFRS 17 Insurance Contracts: will the benefits outweigh the costs?

David Holliday, senior manager at KPMG and insurance accounting specialist, explains the impact of IFRS 17 on insurance companies from new presentation and disclosure requirements to the measurement approach to calculation of expected values and recognising revenue

Accounting / Tesco trial abandoned as defendant falls ill

The Tesco trial over accounting irregularities regarding misstatement of profits has been abandoned as a key defendant, former finance director Carl Rogberg has had a heart attack

Accounting / MPs told Carillion’s accounting policy ‘aggressive’

MPs have been told that accounting policies at Carillion became ‘more aggressive’, while the company was not paid for over 18 months on a key building contract in Qatar, as part of an evidence session to a joint select committee looking into the outsourcer’s collapse early this year

Tax / Warning on VAT burden for small businesses

VAT receipts now account for 21% (£124bn) of all of HMRC’s tax income, up from just 16% during the recession, and the rise in VAT demands coupled with late payment issues is creating cashflow problems for small businesses, according to analysis by Funding Options

Accounting / IPSASB consults on accrual-focused workplan

The International Public Sector Accounting Standards Board (IPSASB) is consulting on its proposed strategy and work plan for 2019-2023, with a focus on increasing adoption of accruals-based standards as a way of strengthening public financial management globally

Accounting / Investigation into Welsh charity over non-SORP accounts

The Charity Commission has opened a new statutory inquiry into the Cymmer Workmens Hall and Institute, over concerns about the charity’s governance, trading activities and accounting policies

Tax / Guidance issued on IHT deemed domicile rules

HMRC has published guidance on the new inheritance tax (IHT) deemed domicile rules which apply from 6 April 2017, and include changes to the number of years of residence needed in the UK for deemed domicile to apply and the addition of a new category

Tax / Case: ignorance of basic law not reasonable excuse

A couple's appeal against late filing penalties was dismissed by a First Tier Tribunal (FTT) after it ruled that the failure to submit non-resident capital gains tax (NRCGT) returns due to ignorance of basic law was not a reasonable excuse

Tax / Fraudsters scam taxpayers with vishing calls to mobiles

The latest scam to hit taxpayers is a call to mobile phone numbers from fraudsters posing as HMRC officials requesting immediate payment of £500 in so-called vishing attacks