Accountancy Daily

Audit / Haddrill: audit quality and corporate governance must improve

Continuous improvement in audit quality and corporate governance is essential if the UK is to attract investment post Brexit and shake off the legacy of questionable auditor behaviour, says Stephen Haddrill, chief executive of the Financial Reporting Council (FRC)

Audit / FRC plans to increase fees for third country auditors

The FRC is consulting on plans to increase registration and annual renewal fees for auditors of companies based outside of the EU, with full registration rising to £5,680 for auditors with more than three clients

Audit / PRA reviews external audit of public disclosure rules

The Prudential Regulation Authority (PRA) is consulting on a revision to the rules for the external audit of public disclosure requirements under Solvency II, which would see certain smaller insurers excluded from the requirement

Insight / Four-time bankrupt hit with fourteen-year restriction

A man who has been made bankrupt four times has been handed a 14-year bankruptcy restriction, for obtaining credit without disclosing to his lenders he had been banned from doing so

Accounting / Divergent financial regulation costs $780bn a year

The current patchwork of global financial regulations is costing $780bn (£549bn) a year as a result of inconsistencies between different jurisdictions, with smaller institutions more likely to experience additional costs, according to research from the International Federation of Accountants (IFAC) and Business at OECD (BIAC)

Insight / Accountant temporary head of SFO

The Serious Fraud Office (SFO) has named an accountant as its interim director, pending a permanent appointment to replace the outgoing head, marking the first time in its 30-year history that the agency has not been led by a lawyer

Insight / Prompt payment to SMEs critical for government contractors

The government is launching a package of measures designed to level the playing field for smaller businesses bidding to win government contracts, including proposals to exclude suppliers from major government procurements if they cannot demonstrate fair and effective payment practices with their subcontractors

Insight / KPMG commits to cut firm’s plastics use

KPMG has signalled its support for current campaigns to reduce single-use plastic and has announced the firm will stop using plastic water cups across its 22 offices in the UK by the end of the summer 2018, in a move that will save three million cups every year, and reduce costs by £60,000

Insight / Begbies Traynor administrators to collapsed building company

Julian Pitts and Bob Maxwell of Begbies Traynor have been appointed joint administrators to Wetherby-based construction business Haresign Ltd, which experienced severe cashflow problems following a dispute over work on a wedding venue

Insight / Ex-accountant property developer sentenced for VAT fraud

A city accountant turned property developer who created false invoices to commit £260,000 VAT fraud has been given a suspended jail sentence following an HMRC investigation

Technical Alerts

10 Apr 2018

Tax / Top tips: reclaiming VAT on international business expenses

Brendon Silver, CEO of VAT IT, reveals the top tips for businesses to get the most out of their expenses, what to look out for and how to break out of a habit of simply putting off claiming back

Accounting / Airbus reports 20% hike in EBIT using IFRS 15 Revenue Recognition

Multinational aircraft and aerospace supplier Airbus has provided further details of the restatement of its 2017 financial figures to account for the implementation of IFRS 15 Revenue from contracts with customers, which will see a 20% increase in earnings before interest and taxes (EBIT) adjusted

Audit / FRC plans to sharpen up monitoring of top six audit firms

The Financial Reporting Council (FRC) is to tighten its monitoring of the six largest audit firms, which will include analysis of the skills and attributes of candidates for key roles such as independent non-executives, heads of audit and ethics partners

Tax / Top ten tips: 2018/19 tax year reliefs

The new tax year only began on 6 April, but individuals should start planning for it now to ensure they do not miss out on valuable allowances that could save them thousands on allowances and tax reliefs

Tax / Q&A: VAT registration and company incorporation

Croner Taxwise VAT consultant Sally Atkins examines the implications of the VAT registration for companies choosing to incorporate from the start of the 2018/19 tax year

Tax / HMRC encourages individuals to disclose undeclared tax

HMRC has updated its disclosure service calculators, used by individuals to work out the tax, interest and penalties owed on outstanding tax, to include the 2016/2017 tax year

Tax / ATT warns employers to review value of salary sacrifice schemes

Transitional protections from tax which had applied to benefits provided under optional remuneration arrangements (OpRA), such as salary sacrifice schemes, have now ended following the introduction on the 2018/19 tax year, with the ATT warning employers to consider if they need to recalculate the value of benefits for tax purposes

Accounting / Revamped global code of ethics for accountants

The International Ethics Standards Board for Accountants (IESBA) has released a completely rewritten code of ethics for professional accountants designed to provide clearer advice about how accountants should deal with ethics and independence issues which it says is easier to navigate, use and enforce

Tax / Proposals to tackle hidden offshore profits

HMRC is inviting views on proposals first announced at Autumn Budget 2017 to tackle avoidance schemes where profits of trades or professions are moved outside the UK tax charge, often using offshore trusts and companies

Insight / Pub landlords disqualified over insolvency abuse

Two pub landlords from Cheshire have been disqualified for seven years after an Insolvency Service investigation found they had abused insolvency laws to avoid paying debts, while continuing to keep their pub open

Technical Alerts

9 Apr 2018

Audit / Are auditors to blame for high street woes?

As the UK high street once again faces the never ending fallout from the move to online and major retailers go into administration or contemplate restructuring, Mark Gardner, insolvency specialist at Excello Law, asks where sound accounting could have saved some of the casualties  

Accounting / Revised Code takes into account IFRS 9 and IFRS 15 for local government

The joint board of the Chartered Institute of Public Finance and Accountancy and the Local Authority (Scotland) Accounts Advisory Committee (CIPFA/LASAAC), has issued the latest Code of Practice on Local Authority Accounting in the United Kingdom 2018/19

Accounting / CDSB issues revised climate disclosure reporting framework

The Climate Disclosure Standards Board (CDSB) has released an updated version of the framework for reporting environmental information, natural capital and associated business impacts

Tax / Rule change on taxation of termination payments now operational

New rules regarding the taxation of termination payments have come into effect, with HMRC reminding employers they need to pay income tax and Class 1 National Insurance contributions (NICs) on an element of all termination payments from 6 April whether or not they are contractual payments

Insight / Brexit transition deal boosts CFO optimism

For the first time in two years, worries about Brexit are not top of the list of risks facing UK corporates, with CFOs more concerned about weak UK growth, according to research by Deloitte

Tax / Average tax fraud sentence up by 25%

The average sentence length for tax fraud has increased by 25% over the last year, suggesting political pressures and a tougher stance from HMRC are having an impact, according to research by Pinsent Masons

Audit / FRC threatens £10m fines for poor audit work

The Financial Reporting Council (FRC) will implement the recommendations of the independent review of sanctions undertaken last year, which include introducing a fine of £10m or more for seriously poor work by a Big Four firm and greater use of non-financial penalties, as well as the possibility of ten-year bans for individuals

Insight / Absconding manager jailed for tax fraud

The manager of a male stripping troupe, who was sentenced in her absence for tax and benefit fraud, has been jailed after more than a year spent on the run

Tax / Benefits in kind reporting revised from 6 April

HMRC is reminding employers that they now need to provide details for all benefits in kind (BiKs) now that new rules for optional remuneration arrangements (OpRAs) have come into effect

Technical Alerts

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