Accountancy Daily

Accounting / Revising the risk assessment: ISA 315

Katherine Bagshaw FCA examines some the many long-standing issues of ISA 315, Identifying and Assessing the Risks of Material Misstatement, and what the Exposure Draft of the revised standard improves upon

Tax / Selling your home and principal private residence relief

Yet again in Budget 2018, second home owners were targeted with a number of changes to the principal private residence (PPR) relief rules such as halving the exempt period to nine months from April 2020. Courtney Halifax CTA ATT, tax manager at Mercer & Hole, examines the tax implications for anyone selling property

Insight / Blick Rothenberg acquires Hazlems Fenton accountants

Blick Rothenberg, part of Cogital Group, is expanding with the acquisition of accounting firm Hazlems Fenton LLP, which primarily deals with entrepreneurial and owner-managed businesses

Tax / HMRC delays late payments penalty reforms

Planned reforms to HMRC’s penalty regimes for late submission and payment of tax due are to be further delayed while the department considers how best to communicate the changes, with papers published following the Budget indicating there are unlikely to be any change before April 2021 at the earliest

Tax / Overdue VAT reaches five-year high

There has been a 22% rise in the value of unpaid VAT owed to HMRC by UK businesses to £3bn, up from £2.48bn the previous year, as late payments leave businesses with cashflow difficulties

Accounting / ICAEW says ISA 315 not fit for small businesses

The International Auditing and Assurance Standards Board (IAASB) consultation on the proposed amendments to ISA 315, Identifying and Assessing the Risks of Material Misstatement, has elicited a response from ICAEW urging the body to take heed of concerns about its scalability

Tax / Disputed tax from big business hits £27.8bn

Figures released today show that the amount of underpaid tax in dispute with the UK’s 2,000 largest businesses increased to £27.8bn in 2017/18, a 12% increase on the previous year, as HMRC steps up its investigative activity

Audit / Mazars calls for joint audits for UK listed companies

In Mazars' response to the Competition and Markets Authority (CMA) statutory audit market study, it says that it is ‘fully supportive of changes which propose to create a genuinely competitive audit market that addresses stakeholders’ needs’ and pushes for joint audits

Insight / 40% gender difference in pension pots

The gender pension gap is 39.5%, twice the level of the gender pay gap, with women receiving on average £7000 less than their male counterparts, according to research from the union Prospect

Insight / Living Wage rates rise to £9 an hour

At least 180,000 people that work for Living Wage employers across the country are set for a pay rise as the new Living Wage rates see an above inflationary increase

Technical Alerts

2 Nov 2018

Tax / Williams: Making Tax Digital is a business opportunity for accountants

Making Tax Digital (MTD) should be seen as a chance for accountants to forge stronger links with clients, argues Nick Williams, head of UK accountants for Intuit QuickBooks

Tax / Denning: US may strike back at digital services tax

Chris Denning, head of international and corporate taxation at MHA MacIntyre Hudson, suggests that the US might retaliate against the UK’s digital services tax introduced in the Autumn Budget

Insight / Finance Mole: outside your comfort zone

Finance Mole is cornered by the internal recruiter who sees no distinction between a lawyer and an accountant plus, announcement of Sacha Romanovitch’s departure at Grant Thornton, financial irregularities at Patisserie Valerie

Audit / Stephen Haddrill to quit Financial Reporting Council

The head of the Financial Reporting Council (FRC) Stephen Haddrill is to leave the audit regulator as soon as a replacement is found

Insight / Big Four making progress on employee diversity

The Best Employers for Race - 2018 report, carried out by charity Business in the Community, has shown that the UK’s Big Four are among the UK’s best employers for taking a pro-active approach to address racial inequalities in their organisations

Tax / Treasury’s cat not creaming off cash

Taxpayers have had a ‘purr-fect’ Budget present with the news that Gladstone, the Treasury’s resident cat with specific mouse hunting duties, is not costing them a penny this year and has not been on the payroll - either as a full-time employee or via a personal services contract - since his appointment

Insight / First fine for accountant under TPR enrolment rules

The accountant of a London cafe has been ordered to pay £6,857 after he admitted falsely claiming to The Pensions Regulator (TPR) that staff had been enrolled into pensions

Audit / US regulator sanctions three Deloitte Mexico partners

The Public Company Accounting Oversight Board (PCAOB) has barred, fined, and censured three Deloitte Mexico partners for deficient work in auditing the Mexican subsidiary of a US public company

Tax / HMRC to refund child benefit penalty charges

HMRC has announced a U-turn in its policy towards taxpayers who failed to register for the high income child benefit charge (HICBC) when required, and is to issue automatic penalty refunds for those able to demonstrate a ‘reasonable excuse’

Insight / Oxford tops list of UK’s best business locations

Oxford and Reading have retained their top slots as the best places to do business in the UK, according to a study from PwC which suggests most cities have now fully recovered from the recession and downturn triggered by the global financial crisis

Tax / ‘Cracks showing’ in HMRC performance under Brexit pressures

MPs are warning 'cracks are showing' as HMRC seeks to manage a ‘daunting’ workload in advance of Brexit, with mounting concerns about the possible impact of delays introducing its new customs system on businesses adapting to a new VAT regime

Insight / Yorkshire butchers face chop with administration

The latest victim of the difficulties currently facing businesses on the UK’s high streets is Yorkshire butcher Crawshaw Group, which has gone into administration putting nearly 700 jobs at risk

Tax / Budget 2018 briefing: key measures at a glance

In our roundup of Budget 2018 essentials, we review the key tax measures for businesses and individual taxpayers, from a time-limited hike in annual investment allowance to £1m, retention of entrepreneurs’ relief, frozen VAT threshold, a digital services tax for tech giants and an unexpected increase in the personal allowance

Insight / People in the news: IIRC, Carey Olsen, New Quadrant Partners

Career news this week includes partner appointments at New Quadrant Partners and Irwin Mitchell, while IAASB resumes search for new chair and the International Integrated Reporting Council (IIRC) hires former McKinsey chief to head up organisation

Technical Alerts

1 Nov 2018

Audit / FTSE 100 Auditors Survey 2018

Amid unprecedented political scrutiny and a second competition probe, the Big Four audit firms continue to hold a vice-like grip over the FTSE 100 audit market, now worth nearly £900m. Philip Smith provides a detailed breakdown of total audit and non-audit fees by FTSE 100 company, plus tenure lengths and year ends from our exclusive Accountancy auditors survey

Tax / Budget 2018: key tax changes for businesses explained

Cathy Corns, partner at Mercer & Hole analyses the key Budget announcements affecting businesses from changes to capital allowances for capital spend, to R&D tax relief and the increase in the annual investment allowance  

Tax / Bostock: Budget gives tax breaks for business before Brexit

Nigel Bostock, Crowe UK chief executive, looks at the business tax relief measures contained in the Chancellor’s Autumn Budget 2018 and how these could stimulate economic growth in this uncertain pre-Brexit period

Tax / Quarterly tax overpayments on pension withdrawals hit £38m

Savers continue to be over-taxed on pension withdrawals, with the latest HMRC statistics showing a record £38m was reclaimed in Q3 2018, amid call for the government to review the ‘emergency tax’ treatment of pension freedoms withdrawals

Tax / Warning over Irish PAYE claims

ACCA is warning employees in Ireland about the potential data and financial risks posed by some online tax refund service providers that are seeking to manage people’s PAYE claims, in view of the imminent move to real-time PAYE reporting from January 2019

Accounting / Segmental reporting: IFRS 8 in practice

Rachel Farris FCA CTA examines how 20 UK listed companies have dealt with segmental reporting under IFRS 8 in their latest annual reports

Audit / FTSE 100 audit market nears £900m in annual fee income

Despite attempts by regulators to reform the audit market, including the ongoing Competition and Markets Authority (CMA) market review, the Big Four audit firms continue to dominate the £899m listed audit market, according to Accountancy’s exclusive FTSE 100 Auditors Survey

Accounting / IASB clarifies definition of ‘material’

The International Accounting Standards Board (IASB) has issued amendments to its definition of material to make it easier for companies to make materiality judgements, saying some companies experienced difficulties using the old definition

Insight / Car-hire company director banned for failing to keep company records

The director of an Edinburgh private car-hire company has been given a seven-year disqualification for failing to maintain and preserve adequate company records, following an Insolvency Service investigation which found £60,000 was owing to HMRC

Tax / Employment tax updates: November 2018

Jackie Hall ACA CTA, partner at RSM on PAYE traps and the trivial benefits exemption, tribunal denies HMRC £583k in referee appeal, national minimum wage support for review visits

Tax / Tax updates: November 2018

This month's review of tax cases and tax news including penalties determined by HMRC computers ruled invalid, HMRC launches full blown MTD VAT trial, CGT entrepreneurs’ relief denied as voting rights held for less than a year

Insight / Development updates: November 2018

In the latest career development updates, PwC revenues increase by 5% to hit £3.8bn, partner payouts increase 17% at BDO, former HMRC chief joins McKinsey as external adviser

Tax / VAT updates: November 2018

Graham Elliott, VAT expert at City & Cambridge Consultancy examines questions raised over the VAT status of charities building annexes in diocese of Westminster case

Accounting / Accounting updates: November 2018

In this month’s roundup of developments in accounting and financial reporting, Jersey to offer limited liability companies, Charities SORP amendments, no-deal Brexit guidance for accounting and audit rules

Audit / Audit updates: November 2018

In our monthly roundup of developments in audit and governance, Big Four auditors face CMA investigation, KPMG and partner admit misconduct over BNY Mellon, Grant Thornton calls for independent body to control FTSE audits

Accounting / Legal updates: November 2018

In this month's legal updates, experts at law firm Gateley plc on why the takeover panel opted for a rare sealed bid option in the takeover of Sky plc to settle competing bids

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