Accountancy Daily

Tax / R&D tax relief and the three-factor cap: what you need to know

The introduction of a cap on research and development (R&D) tax relief at three times the total of the companyʼs PAYE and NICs liability for that year is set to come into force in 2020 and could hit companies with a high R&D spend and low staff costs, despite protective measures, explains Stephen Relf ACA CTA    

Audit / Ferrexpo hires MHA MacIntyre Hudson for £2.4m audit

FTSE 250 Swiss mining group Ferrexpo has named MHA MacIntyre Hudson  as its new auditor, following Deloitte’s resignation from the position earlier this year amid concerns about delays to an independent investigation into a possible ‘misappropriation’ of corporate social responsibility (CSR) funds

Accounting / SFO fines Serco £19m over fraud and false accounting

Outsourcing giant Serco Group is set to pay £23m including costs under a deferred prosecution agreement (DPA) with the Serious Fraud Office (SFO) over fraud and false accounting charges

Insight / Haysmacintyre names Jeremy Beard as managing partner

Haysmacintyre has appointed Jeremy Beard as the new managing partner of the firm, ranked at number 26 in the Accountancy Daily 2019 league table of firms with a revenue of £28.8m

Insight / Pension trustee system needs to be overhauled

The Pensions Regulator (TPR) is consulting on the future of trusteeship in a bid to raise standards and reduce the number of poorly governed pension schemes

Accounting / FRS 102: liabilities vs equity - NEW CPD module

This month’s exclusive Accountancy Daily CPD module will look at the FRS 102 accounting treatment of liabilities versus equity

Tax / Scotland pays £2bn in sin taxes

Taxpayers in Scotland pay a disproportionate share of sin taxes in the UK, paying 13.4% of spirits duties and 11.4% of tobacco duties last year, equivalent to £229 for every adult

Accounting / Charity regulator investigating funds at unregistered organisation

The Charity Commission is to investigate the funds raised by an unregistered organisation, Sikh Youth UK, as the money is classed as being charitable and there have been warnings over financial management

Technical Alerts

2 Jul 2019

Tax / Childcare and tax: 30-hours free childcare – part 4

In part four of a series on childcare tax issues, Julie Clift CTA, specialist tax writer at Croner-i, examines how the government’s 30-hours free childcare scheme works and the various tax compliance issues

Tax / Q&A: tax liability for property transfer in divorce

In our regular Q&A series, Croner Taxwise consultant Steven Jones warns divorcing couples to consider the capital gains tax (CGT) implications when a residential property is transferred to one partner in the event of divorce in a no gain, no loss situation under section 58 of TCGA 1992

Tax / Rules for non-residential structures and buildings allowance amended

HMRC has amended the compliance rules for a new capital allowance for non-residential structures and buildings (SBA) following consultation

Insight / Grant Thornton sells wealth advisory arm to specialist

Grant Thornton has shed its wealth advisory unit which has been acquired for an undisclosed sum by 1825, Standard Life’s wholly owned financial planning and advice business, as the firm seeks to concentrate on core tax and accounting activities

Tax / New EU rules on tax dispute resolution launched

This week marks the introduction of new EU rules designed to ensure quicker and more effective resolution of tax disputes between member states, in a push to offer more tax certainty for businesses and individuals experiencing double taxation issues

Tax / HMRC ramps up tax credit renewal reminders

HMRC has issued a reminder that taxpayers must renew their tax credits by 31 July, or risk having their payments stop, as part of a concerted campaign to ensure individuals take action

Accounting / Companies to report on financial risks from climate change

The government is to introduce requirements for publicly listed companies and large asset owners to disclose by 2022 how climate change risk impacts their activities, as part of a newly launched green finance strategy

Insight / Big increase in cyber incidents at financial services firms

There has been a sharp spike in the number of cyber incidents reported by financial services firms, with 819 cases logged with the Financial Conduct Authority (FCA) in 2018, up from 69 the previous year, according to analysis from RSM

Tax / Consultations: July 2019

This month's HMRC and Treasury consultations focus on a review of the effectiveness of social investment tax relief, draft legislation for extending offshore receipts for intangible property and an overhaul of Companies House' business disclosure regime

Technical Alerts

1 Jul 2019

Tax / Football player’s image rights taxable as earnings

In the case of Hull City AFC (Tigers) v HMRC TC/2015/02945, a tribunal ruling stressed the importance of substance when structuring image rights deals, in a decision which has implications beyond footballers, explain Mark Davies and Sian Armitage of Mark Davies & Associates

Tax / Tax updates: July 2019

In this month’s round up of tax news concerns over the number of unregulated tax agents, return of film fund tax breaks, small businesses account for largest percentage of tax gap, HMRC cracks down on fake phone calls and France tops list for providing unlawful tax breaks  

Accounting / Accounting updates: July 2019

In this month’s accounting updates Morgan review calls for charity reporting shake up, Crown Dependencies plan beneficial ownership register, EU plans to simplify company registrations and senior accounting officer (SAO) fines jump 22%

Insight / Impact of Brexit on UK financial services nears £4bn

Brexit has cost the UK financial services sector close to £4bn, despite companies pausing job and asset moves once the extension to October for leaving the EU was announced, according to analysis from EY which says the final spend may be much greater

Insight / Regulator investigates charities over trustee concerns

The Charity Commission has opened two separate statutory inquiries into The Jalloh Charitable Trust and The Deacons Charitable Trust, over concerns about potential conflicts of interest and a number of accounting issues

Insight / Welsh cheese company enters administration

Paul Dumbell, director, and David Costley-Wood, partner, at KPMG have been appointed as joint administrators to GRH Food Company Ltd, a Snowdonia-based cheese processing business, which has collapsed after 30 years of operation with the loss of over 80 jobs

Insight / PwC announces new board and partners

PwC UK has announced a shake-up of the leadership of its core business divisions along with the promotion of 69 new equity partners from 1 July

Insight / FTSE 250 under fire over female board representation

There remain four companies in the FTSE 250 with all-male boards, and too many have a ‘one and done’ approach to increasing the proportion of women in senior leadership roles, according to the latest analysis from the independent review body backed by government

Accounting / IASB proposes amendments to IFRS 17 Insurance Contracts

The International Accounting Standards Board (IASB) is consulting on proposed amendments to the Insurance Contracts standard, IFRS 17 before it is even introduced to reduce the costs of implementation and make it easier for companies to explain their financial results after they apply the standard

Accounting / Legal updates: July 2019

In this month’s legal updates, Sophie Brookes, partner at law firm Gateley plc, considers a complex accounts warranty claim in 116 Cardamon, limited liability and veil of incorporation in Hurstwood, and defining 'ordinary and proper course of business' in Akcil

Audit / Audit updates: July 2019

In this month’s audit updates, fines for PwC over Redcentric, KPMG refuses to retender $2.2m Cineworld audit, ICAEW finds one in four audits sub-standard, Gama Aviation ditches Grant Thornton and the Financial Reporting Council gets a new head of audit inspections on loan from the Bank of England

Tax / VAT updates: July 2019

In this month’s VAT roundup of significant cases, Graham Elliott CTA (Fellow), VAT specialist at City & Cambridge Consultancy, considers when payroll services for a carer are not subject to VAT, two NHS trust VAT rulings and the sale of fractional interests in hotel rooms

Technical Alerts

30 Jun 2019

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