Accountancy Daily

Audit / FRC to be disbanded as government green lights new audit regulator

The Financial Reporting Council (FRC) will be closed and replaced with a new audit regulator following criticism of their effectiveness of the existing organisation following a string of audit scandals at major listed companies

Tax / Taxing cryptocurrency: does the guidance go far enough?

After four years in the making, HMRC decided to put out its updated cryptocurrency for individuals’ guidance at the end of 2019. Amy Austin, reporter at Accountancy Daily, gets industry reaction to see if anything has changed and whether the new guidance goes far enough 

Tax / Loan charge tax avoidance schemes do not work, warns HMRC

HMRC has issued another warning about schemes and arrangements designed to avoid the 2019 loan charge on disguised remuneration, saying that these schemes do not work

Tax / OECD digital tax for multinationals criticised over double taxation risk

OECD plans to radically change the global tax framework to introduce a unilateral approach to taxation of digital services have been criticised over the broad reach of the proposals, risks of double taxation and potential to be the first step towards turnover tax, reports Sara White

Tax / HMRC’s first probes into corporate tax evasion facilitation

HMRC has confirmed that it has opened its first investigations into the corporate criminal offence of failure to prevent the facilitation of UK tax evasion, using new powers to tackle corporate fraud contained in the Criminal Finances Act, introduced in the wake of the Panama Papers leaks

Insight / Government outsourcer Interserve battles ‘critical’ situation

Embattled outsourcing giant Interserve, which is a major government contractor, has just four days to win shareholder support for the board’s deleveraging plan, ahead of a crucial general meeting on 15 March to resolve what the company admits is ‘a critical financial situation’, raising fears of another Carillion-style collapse

Insight / Treasury to introduce code to boost female entrepreneurship

The Treasury has signalled it plans to increase the number of female entrepreneurs in the UK by 50% by asking lenders for details of the gender split of business investments, after research found women face too many barriers to setting up a business

Tax / One in five VAT-registered businesses in the dark over MTD

With only weeks to go until the planned introduction of Making Tax Digital, nearly one in five businesses above the VAT threshold still know little or nothing about the new requirements, according to the British Chambers of Commerce (BCC), which is calling on the government to delay the launch

Insight / Regulator’s inquiry sees charity improve financial controls

A Charity Commission inquiry into One Nation, a Yorkshire-based charity which aims to provide relief of hardship internationally, has result in improvements to its financial governance and a reduction in unmanaged risks, the regulator has reported

Insight / FCA to publish directory of key financial services individuals

The Financial Conduct Authority (FCA) has announced the final rules on a new public register that enables consumers, firms and other stakeholders to find information on key individuals working in financial services

Technical Alerts

8 Mar 2019

Insight / Called to account: March 2019

The latest scandals, convictions and penalties this month feature a £60m HIV cure tax fraud, a truck dealer’s VAT scam, a cash-burning bankrupt, and a forex-fiddling travel agent FD

Insight / Women, let’s look at the real issue: accountancy is still a man’s world

Myfanwy Neville, a partner at accounting and advisory firm BKL, describes herself as a ‘working class woman from Wales' who has become 'middle class' through her work. Here she gives voice to the negative experiences women still have in breaking into senior leadership roles at accounting firms, even when their working environment is‘trying’ not to discriminate

Insight / Finance Mole: German project sounds a bit fishy

Finance Mole fishes for an inoffensive name for the cunning German sales plan, but is left on the hook by the CFO

Insight / Women at work: gender diversity at accounting firms

To celebrate International Women’s Day, the team at accounting firm Mercer & Hole give us their views on gender balance, leadership and what the accountancy industry needs to do to create a #BalanceforBetter in a working environment which is still fairly male dominated

Accounting / Five-a-side football business flags up accounting errors

Goals Soccer Centres, a Scottish company operating five-a-side football clubs across the UK, has revealed it now expects its 2018 full year results to be materially below expectations, after a business review identified a number of accounting errors

Insight / People in the news: MHA MacIntyre Hudson, KPMG, Mayer Brown

This week's news of professional moves in the sector includes MHA MacIntyre Hudson appoints a partner to lead its transfer pricing service line, KPMG strengthens its legal services line with three hires, Mayer Brown gains two partners in its restructuring, bankruptcy and insolvency practice

Insight / EY fashions administration for L.K. Bennett

Dan Hurd, Hunter Kelly and Craig Lewis of EY’s restructuring team have been appointed joint administrators of upmarket fashion retailer L.K. Bennett Ltd, which has collapsed putting some 500 jobs at risk at the company, whose shoes and dresses have been favourites of the Duchess of Cambridge

Insight / Lack of financial control sees charity dissolved

A Charity Commission inquiry into the Ghulam Mustafa Trust has found evidence of misconduct and mismanagement, including a lack of financial control, which mean the charity has now been dissolved

Insight / Music tuner’s VAT fraud falls flat

A Somerset company boss, who fraudulently reclaimed more than £230,000 of VAT, has been jailed for two years following an HMRC investigation

Insight / £92bn boost from closing UK gender pay gap

Closing the UK’s gender pay gap would increase female earnings by £92bn, a rise of 20%, according to research from PwC

Insight / MPs call for better anti money laundering supervision

The Treasury select committee is calling for the government to do more to tackle economic crime, saying the anti money laundering (AML) regime should be strengthened, with proposals including introducing corporate liability legislation, reforms to Companies House, and removing HMRC’s responsibility for AML supervision

Technical Alerts

7 Mar 2019

Accounting / Essentials: Brexit changes to company law for accountants

The government is passing substantive legislative changes to Companies Act 2006 (CA 2006) via statutory instrument and has issued guidance letters for accountants and auditors with advice on how to operate cross-border in the event of a no deal Brexit. James Waller CA, technical writer at Croner-i Tax and Accounting, explains the key considerations

Tax / HMRC sets out exemption process for Making Tax Digital for VAT

HMRC has issued updated guidance outlining the situations in which businesses and individuals can receive exemption from Making Tax Digital, although Low Incomes Tax Reform Group (LITRG) is warning that VAT registered individuals and businesses have little time to apply for an exemption

Insight / Underwood: accountants must be commercial with their own businesses

Despite advising clients on how to be more commercial, accountancy firms often fail to use the same analysis and tools on their own practices, especially those that want to sell up, says Keith Underwood, managing director, Foulger Underwood

Accounting / What happens when no one trusts the numbers?

Financial discrepancies in month end reporting and inaccurate financial data is a major risk and reputational issue for CFOs and finance directors so why does the C-suite trust the numbers, asks Mario Spanicciati, chief strategy officer at BlackLine

Accounting / IASB plans ‘game changer’ on financial reporting

Hans Hoogervorst, chair of the International Accounting Standards Board (IASB) has described its primary financial statements project as a ‘game changer’ in financial reporting

Insight / Call for more planning for no deal Brexit

A survey from ICAS has found that nearly three-quarters (73%) of finance professionals believe that a no-deal Brexit is ‘very’ or ‘quite’ likely, but only half say their organisation has prepared for that outcome from the current negotiations over the UK’s withdrawal from the EU

Insight / Ross Boyd restructures practice by adding shareholder

The entrepreneurial founder of Ross Boyd ltd, which has expanded from Ireland across the UK, has announced a restructuring of the accountancy practice, bringing in its first outside shareholder, following the appointment of a new director who has taken a stake in its Belfast operation

Insight / KPMG opens window out of administration for Synseal Group

Chris Pole and Mark Orton, partners from KPMG restructuring, have been appointed joint administrators of Synseal Group, which has been sold to Aperture Trading, in pre-pack deal which preserves over 1,000 jobs

Insight / UK lags US in penalty enforcement for serious economic crime

The UK is lagging behind the US in holding large companies to account for serious economic crimes such as financial fraud or money laundering, according to research by Corruption Watch, which is calling for more effective legislation

Insight / Employers only use 9% of apprenticeship levy funds

In 2017-18 apprenticeship levy-paying employers only accessed £191m of an available £2.2bn in levy funds and government top-ups, despite these funds expiring after two years, reports Amy Austin

Accounting / Extension of beneficial ownership register to overseas territories delayed

Plans to extend the public register of beneficial ownership of overseas entities to cover offshore Crown dependencies and overseas territories will not happen before 2023 at the earliest, the government has confirmed

Tax / HMRC sets out rules for postponed VAT accounting if no deal Brexit

With weeks until Brexit, HMRC has finally issued guidance for importers and exporters on how a postponed VAT accounting system would work in the event of no deal scendario to prevent businesses having to immediately pay UK VAT on imports from the EU

Technical Alerts