Accountancy Daily

Tax / Register: extended time limits gives HMRC too much power

The decision to extend the assessment time limit to 12 years gives too much power to HMRC with the tax authority already being handed a huge volume of data from the Common Reporting Standard , warns Dawn Register, partner in the tax resolution team at BDO

Tax / FB 2018-19: death in service benefits can now be paid to charities without tax penalty

Life insurance premiums paid by employers to provide death benefits for their workers will be tax-exempt regardless of the beneficiary of those benefits, under proposed HMRC legislation

Insight / Dominic Raab named Brexit secretary following Davis’ resignation

Dominic Raab, previously minister of state for housing, has today been appointed as secretary of state for exiting the European Union after David Davis resigned following disagreements over Brexit policy

Insight / Ex-BDO Jersey director in £2.6m fraud

A former managing director with BDO in Jersey has been jailed for defrauding clients of £2.6m, with the court told he used the money to fund an ‘extravagant lifestyle’ which included buying a Formula 1 racing car and paying off debts relating to companies in which he had invested

Tax / FB 2018-19: corporation tax exit charge rules changed to comply with ATAD

The government is planning changes to the UK rules concerning corporation tax exit charges on certain unrealised profits or gains when companies or assets move within the EU or European Economic Area (EEA)

Tax / FB 2018-19: exit charges for CGT can be deferred under new rules

The government is to introduce new rules governing when capital gains tax (CGT) payments must be made to HMRC in respect of exit charges in a bid minimise cash flow problems when companies relocate with the EU

Tax / FB 2018-19: rules on aggressive tax planning disclosure

Companies involved in aggressive, cross-border tax planning arrangements will be required to notify HMRC of those arrangements under new proposed legislation aimed at removing ‘secrecy’ around complex tax avoidance strategies

Insight / MPs criticise ‘lowest cost’ approach to government outsourcing

MPs have lambasted the government’s approach to outsourcing, with a new select committee report claiming the collapse of Carillion earlier this year has exposed fundamental flaws in its approach to handling the £251.5bn per year spent on outsourcing and contracting

Tax / FB 2018-19: HMRC to act on profit fragmentation

HMRC is consulting on plans to tackle tax avoidance schemes which move UK profits outside the charge of UK tax, often using offshore trusts and companies, by introducing new rules which will add these profits to the profit of the UK trade

Tax / FB 2018-19: Stamp Duty waived for failed banks’ creditors

Under new government legislation, Stamp Duty liabilities will be abolished for share capital transfers issued under the terms of the Banking Act 2009’s resolution stabilisation powers when a financial institution is danger of collapse

Tax / FB 2018-19: changes to VAT grouping eligibility

Following an earlier consultation, the government is proposing to allow non-corporate entities to join VAT groups, subject to certain conditions, with a measure included in draft Finance Bill 2018/19

Tax / FB 2018-19: HMRC plans points-based overhaul of penalties for late tax payments

HMRC plans to overhaul the penalties for late payments by businesses and individuals for corporation tax, income tax and self assessment, using a brand new points-based system

Tax / FB 2018-19: ‘Transferable tax history’ for North Sea oil and gas companies

The government is to introduce a transferable tax history (TTH) mechanism for oil and gas companies operating on the UK Continental Shelf (UKCS), as a way of attracting new investment into North Sea late-life assets and encouraging additional production

Tax / FB 2018-19: NICs and income tax exemptions for charging electric cars at work

Businesses which provide charging facilities for employees with plug-in hybrid or electric cars will be exempt from income tax and National Insurance contributions on any liability from providing this service, government has explained through draft legislation, effective from 6 April 2018

Tax / FB 2018-19: loss relief rules to be tightened up for insurers

The government is to amend the loss relief rules to correct a defect that may lead to excessive relief being allowed, with draft legislation which changes the way in which restricted losses are calculated by all companies, and also how the regime applies to insurers within the Basic Life Assurance and General Annuity Business (BLAGAB)

Tax / FB 2018-19: benchmark scale rates for expenses simplified

The government will go ahead with plans to abolish receipt checking for benchmark scale rates and changes to overseas scale rates, to simplify expenses related to travel

Tax / FB 2018-19: HMRC clarifies climate change levy exemption rules post-Brexit

The government has published draft legislation to change the definition of mineralogical processes used to determine which businesses can claim exemption from the climate change levy, to ensure that this exemption remains operable following the UK’s departure from the EU

Tax / FB 2018-19: corporate interest restriction rules clarified

HMRC is consulting on technical amendments to the corporate interest restriction (CIR) rules, which have been updated as part of the government’s package of wider changes to ensure business profits are taxed in the location in which economic activity takes place

6 Jul 2018

Tax / FB 2018-19: HMRC to double offshore investigation time limits

The government is planning to more than double the retrospective time limit during which HMRC can investigate non-payment of income, capital gains tax (CGT) and inheritance tax (IHT) from offshore accounts

Tax / FB 2018-19: two-tier Making Tax Digital penalty regime confirmed

The penalty system for Making Tax Digital will kick in within 15 days of an overdue payment and will be a two-tier system, the government has confirmed in the draft Finance Bill 2018-19, although there will be an initial grace period for late filers

Tax / FB 2018-19: insurance costs on company cars brought into scope of tax rules

The government has released draft legislation to include costs connected with company cars and vans, such as vehicle maintenance and insurance, within the scope of Optional Remuneration Arrangements (OpRA) rules for tax and National Insurance contribution (NIC) purposes

Tax / Government releases draft legislation for Finance Bill 2018-19

The government has issued draft Finance Bill 2018-19, including draft legislation for at least 33 significant measures affecting employment tax, simplification of Gift Aid, company car tax liability, Making Tax Digital penalty regime and new rules for tax under IFRS 16 Leases, reports Sara White

Tax / FB 2018-19: Gift Aid rules for donors simplified to help charities

The government is going ahead with rules to support charities with a Gift Aid measure to simplify the donor benefits rules, due to come into force from April 2019, pending approval of draft Finance Bill 2018-19 

Tax / FB 2018-19: SDLT payment window shortened to 14 days

From 1 March 2019 the time limit that individuals have to file a Stamp Duty Land Tax (SDLT) return and pay any tax due has been shortened from 30 days to 14 days

Tax / FB 2018-19: EU tax dispute resolution rules out for consultation

The government is consulting on draft legislation to introduce statutory powers to implement an EU directive on tax dispute resolution mechanisms to reduce double taxation risks across EU member states

Tax / FB 2018-19: HMRC to scrap ‘perverse’ entrepreneur tax relief rules

The government today announced plans to retrospectively protect tax relief for entrepreneurs whose ownership of shares in a company drop below the currently required 5% as a result of a new share issue

Tax / FB 2018-19: HMRC extends tax regime to include property gains for non-UK residents

HMRC has released draft legislation on extending the scope of corporation tax and capital gains tax (CGT) to include gains on disposals of interests in non-residential UK property as well as shortening the CGT payment window for residential property gains

Tax / FB 2018-19: rent-a-room relief clampdown will target gig economy

The government is clamping down on abuse of rent-a-room relief with new rules on shared occupancy to ensure the tax relief is used for lodgers, not as a boost for gig economy renters, from April 2019

Tax / FB 2018-19: HMRC amends CIR rules to reflect IFRS 16 Leases standard

The government has published draft legislation requiring companies adopting IFRS 16 Leases to continue to classify leases as either financial or operating leases for the purposes of Corporate Interest Restriction (CIR) rules

Insight / Negative first impressions turn off finance applicants

Salaries and job vacancies are on the rise in the accounting sector, but employers risk missing out on the most talented candidates because their workplace fails to make a good first impression and their application process does not meet expectations, according to recent research

Insight / People in the news: RSM, Haines Watts, PKF Littlejohn

This week's news of professional moves in the sector includes RSM International appoints a European regional leader, Haines Watts hires its first group managing director in 14 years, a member of the audit team is promoted to partner at PKF Littlejohn

Tax / 100 countries ready to exchange offshore account information

The OECD has published a new set of bilateral exchange relationships established under the common reporting standard’s (CRS) multilateral competent authority agreement, marking a major enlargement of the global network for the automatic exchange of offshore account information

Insight / Simplified SME contract for government work

The government has launched a new, simplified public sector contract (PSC) designed to make it easier for businesses to apply for government work

Insight / US regulator fines Credit Suisse $30m over bribery charges

Credit Suisse Group is to pay around $30m (£22.6m) to US regulator the Securities and Exchange Commission (SEC) to settle charges the bank obtained investment banking business in the Asia-Pacific region by corruptly influencing foreign officials in violation of Foreign Corrupt Practices Act (FCPA)

Tax / Record £1.4m owed in minimum wage underpayments

A record 22,400 minimum wage workers are to receive a total of £1.4m in backpay, latest HMRC statistics reveal

Tax / Hammond rules out immediate action on business rates

Chancellor Philip Hammond has rejected pleas from MPs to consider further reform of business rates in light of the current problems facing high street retailers, but has indicated that the government is looking at ways to level the playing field with digital-only businesses

Insight / Supporting staff and managers through redundancies

David Price, CEO and wellbeing expert at Health Assured, provides advice to employers on how to minimise employee stress caused through redundancy by reducing uncertainty and supporting staff and managers

5 Jul 2018

Accounting / IFRS 16 Leases: tips and advice for construction companies - part 5

Rebecca Farmer, partner at EY, considers the complex accounting issues facing construction companies when applying the new lease standard, IFRS 16 Lease, offering tips and advice on dealing with control issues, specialised materials and judgment calls

Insight / 30 million people at risk of poor pension planning

Potentially some 30m working age people are failing to save enough for retirement and risk not being able to afford the lifestyle they want in later life, according to research from the Pensions and Lifetime Savings Association (PLSA) which suggests more needs to be done to educate pension savers on planning for their future

Accounting / Jersey tightens anti-money laundering legislation

Jersey has introduced new legislation designed to strengthen the Crown dependency’s capabilities to fight financial crime in response to the findings of Council of Europe’s Committee of Experts on the Evaluation of Anti-Money Laundering Measures and Financing of Terrorism (MONEYVAL) report

Insight / £19m data-sharing boost for Scotland’s public sector

Better data sharing between different bodies could give a significant boost to Scotland's public finances after an exercise conducted by Audit Scotland identified nearly £19m of fraud and error across the public sector

Tax / HMRC updates guidance on registering client trusts

HMRC has updated its guidance for tax agents and advisers on registering a client’s trust online, to show the types of trust which must be registered and the deadlines for doing so

Insight / Employees pressured to compromise ethics

Employees across Europe are coming under increasing pressure to compromise ethical standards, according to a survey by the Institute of Business Ethics (IBE), while almost a third have come across examples of misconduct at work

Insight / Game over for Scottish video retailer

Kenny Craig, partner, and Ken Pattullo, regional managing partner, of Begbies Traynor have been appointed provisional liquidators to Scottish video games retailer Game Centre Ltd, which has ceased trading with the loss of 39 jobs

Accounting / FRC raises queries in half of corporate reporting reviews

The Financial Reporting Council (FRC) wrote to almost half of the companies whose accounts it reviewed over the past year, raising issues about corporate reporting practice directly with their boards, according to its first public listing of the corporate reporting review (CRR)