Accountancy Daily

Tax / Making Tax Digital is an opportunity, not a threat

Kim Hau, senior proposition manager for Onesource Indirect Tax, explains the benefits of different Making Tax Digital (MTD) for VAT software solutions and why companies should embrace a comprehensive approach rather than a quick fix

Insight / Hallam: where’s the reward in a no-deal Brexit?

With 80 days until Brexit, Nicholas Hallam, CEO of Accordance VAT, questions whether politicians have any understanding of the needs of business and the high risk stakes of a no-deal Brexit      

Tax / Japan charges departure tax on international visitors

This week sees the launch of an international tourist tax in Japan, requiring visitors to pay a 1,000 yen (£7.20) levy when leaving the country by plane or ship, which is expected to raise 50bn yen in 2019

Tax / Tribunal confusion over BlackRock VAT for financial services case

A dispute between investment management firm BlackRock and HMRC over VAT on financial services has seen the case referred to the European Court of Justice (CJEU) after the Upper Tribunal failed to reach a verdict, reports James Bunney

Tax / Half of taxpayers still to complete self assessment

ICAEW is warning the 5.5m individuals HMRC estimates have yet to complete their tax return against leaving it to the last minute, as they risk a penalty if they miss the 31 January 2019 deadline

Tax / Doubts grow over IRS refunds during shutdown

Despite assurances from the US government, there is growing concern that billions of dollars in tax refunds from the Internal Revenue Service (IRS) will be delayed until the shutdown ends, potentially causing hardship for thousands of US taxpayers

Insight / Regulator investigates charity for second time

The Charity Commission has opened a second statutory inquiry into The Mohiuddin Trust to look into concerns over potential misconduct and mismanagement, including continuing problems with poor financial controls identified in an earlier investigation

Insight / Brexit worries see financial services move £800bn

Heightened uncertainty about how the UK will manage Brexit has driven financial services companies to move almost £800bn of assets to Europe, with Dublin proving a popular location, according to research by EY

Insight / Search ends for NAO replacement head

Mazars partner Gareth Davies has been selected as the government’s preferred candidate to succeed Sir Amyas Morse as the comptroller and auditor general, and head of the National Audit Office (NAO), subject to parliamentary approval

Insight / 53% increase in retail CVAs in 2018

Research by Deloitte shows that the number of retailers that went into administration in 2018 rose by 6% to 125, but the number of company voluntary arrangements (CVA) spiked as retailers and businesses struggled with online competition

Audit / EY to replace KPMG as SSE auditor

FTSE 100 energy provider SSE has appointed EY as its external auditor, subject to approval by shareholders, ending a 20-year relationship with KPMG

Tax / Q&A: VAT on architect fees for design and build contracts

Vivienne Scott, senior VAT consultant at Croner Taxwise, discusses whether design and build contracts allow architects to apply a zero rate VAT to the professional services they provide to contractors

7 Jan 2019

Tax / Dodwell: final countdown to Making Tax Digital for VAT

With the mandatory deadline to digitally report VAT under HMRC’s Making Tax Digital racing down upon us, Bill Dodwell, senior policy adviser at OTS, says this will not mean an immediate end to spreadsheet reporting as HMRC has accepted that some VAT calculations are just too complicated to comply immediately and more work needs to be done

Tax / Scottish income tax catches out higher rate taxpayers

Pension saving may soften triple whammy for higher rate Scottish taxpayers with salary sacrifice reducing tax liability while higher pension contributions can offset higher rate child benefit clawback, explains Kay Ingram, director of public policy at LEBC Group     

Audit / SEC fines Crowe’s US firm $1.5m over audit failures

US firm Crowe has agreed to pay a penalty of $1.5m (£1.18m), after the Securities and Exchange Commission (SEC) identified significant failures in audits of Corporate Resource Services, which went bankrupt in 2015 after the discovery of $100m in unpaid federal payroll tax liabilities

Tax / Upper Tribunal rejects QC tax penalty appeal

The Upper Tribunal has dismissed an appeal against HMRC by a QC over penalty notices, with implications for self-employed workers facing cash flow difficulties and outstanding tax liabilities

Audit / Audit updates: January 2019

In this month’s round-up of audit news, the Competition and Markets Authority releases its initial findings into the lack of competition in the listed audit market with the Big Four under fire, while the Kingman review questions to competency of the audit regulator, while Patisserie Valerie drops Grant Thornton in auditor switch to RSM

Accounting / Accounting updates: January 2019

In this month’s roundup of accounting and reporting developments, IFRS 16 Leases effective date hits balance sheet, SEC fines Hertz Global $16m over accounting misstatement, crackdown on abuse of Scottish partnerships for money laundering

Tax / Government consults on doubling plastic bag charge

The government is consulting on proposals to extend and increase the plastic carrier bag charge, which would see it double to 10p and require all retailers to participate

Insight / 12-sided £1 coin rolls out to overseas territories

The new pound coin is going global, with Britain’s overseas territories and Crown dependencies set to design and mint their own versions of the 12-sided £1 coin for the first time since it was introduced in 2017

Insight / Monarch’s aircraft maintenance arm falls into administration

David Pike, Ben Leith and David Standish from KPMG’s restructuring practice have been appointed joint administrators of Monarch Aircraft Engineering Ltd (MAEL), which has been experiencing financial challenges since the collapse of budget airline Monarch in 2017

Insight / Interim manager for charity with governance failings

The Charity Commission has appointed an interim manager, Geoff Carton-Kelly, a partner with FRP Advisory, to Jole Rider Friends after it suspended trustees following continued concerns about the charity’s governance

Tax / Ireland’s realtime PAYE system 51% tax shock

The introduction of a realtime PAYE reporting system in Ireland risks leaving around 120,000 people with substantial underpayments in its first month of operation, ACCA is warning

Tax / Millennials pick up income tax burden from elderly

Research by Moore Stephens shows that the tax burden on the older generation has fallen by 4% in the past year, with millennials paying an extra £5bn compared to the same period in the previous year

Insight / CIOT and ATT relocate in Whitehall

The Chartered Institute of Taxation (CIOT) and the Association of Taxation Technicians (ATT) have today moved office and will now be based at 30 Monck Street in Westminster

4 Jan 2019

Insight / Dealing with difficult bosses

Micromanager? Dictator? Bully? Favouritist? Incompetent? Bad bosses come in many forms and if you do not address the issue, working for them could have a severe impact on both your job performance and mental wellbeing. Simon Wright, managing director of CareersinAudit.com gives the inside track on survival tactics

Tax / Reforming wealth tax will raise revenue

An ageing population and rising public service costs are putting a strain on the Treasury’s coffers. Torsten Bell and Adam Corlett of the Resolution Foundation argue that the Chancellor could generate £7bn a year by 2022-23 with adjustments to five wealth taxes and subsidies

Audit / KPMG refuses to retender for Aston Martin audit

The luxury car company has begun the search for a new auditor after KPMG declined to reapply for its audit tender, less than three months after the company made its debut on the London Stock Exchange

Tax / Commercial property brought into non resident CGT charge

HMRC has issued draft guidance for the extension of the non resident capital gains tax rules bringing commercial property and company disposals into scope for the first time from April 2019

Tax / HMRC turns to universities for digital expertise

With the introduction of Making Tax Digital for VAT only three months away, HMRC is looking to recruit tax specialists with digital skills, along with data analysts and digital experts

Tax / US government shutdown freezes IRS services

Taxpayers face delays and the Internal Revenue Service (IRS) has suspended all non-essential work as the US government shutdown over a political funding dispute overlaps with the beginning of the tax filing season

Insight / ‘Fat Cat Friday’ as FTSE 100 CEOs pocket average worker’s annual pay

Just three working days into 2019, the typical FTSE 100 chief executive has already been paid what it will take the average UK employee the rest of the year to earn, according to the High Pay Centre and the CIPD

Insight / Three sisters jailed for £323k VAT scam

Three sisters from Manchester have been jailed for a total of 60 months after stealing the passport details of tourists to falsely claim £323,000 in VAT refunds

Audit / PwC uses drones in audit for first time

PwC has taken to the skies and, for the first time ever, has undertaken a stock count audit using a drone, as part of a wider drive to harness emerging technologies to enhance audit quality
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