Audit / Internal audit: the governance case - part 1

In part one of a three-part series, Chartered Institute of Internal Auditors chief professional practices advisor Liz Sandwith outlines the purpose and scope of internal audit and looks at how it can benefit the governance of organisations more widely

Tax / Tax liability for short-term business visitors working in UK

Relocating to the UK on a temporary work assignment for an international company, or even on a contractor basis, raises a number of income tax and NICs' issues for short-term business visitors, explains Mansel Turnham CTA ATT, corporate tax senior manager at Mercer & Hole

Tax / HMRC to reject non-iXBRL company filings

HMRC has confirmed it will reject any company accounts or tax computations submitted in non-iXBRL format from 1 November 2017 unless a specific exception applies

Tax / HMRC claims Upper Tribunal victory in Clavis Liberty 1P case

The Upper Tribunal has dismissed an appeal by the Clavis Liberty Fund 1 Partnership scheme, in a ruling HMRC expects to protect £325m in tax

Tax / Taxpayers need to beat Halloween deadline for self assessment

The 31 October deadline to submit your paper self assessment return is approaching and ICAEW is reminding everyone to face their demons and avoid a nightmare by finding out what you need to do ahead of the Halloween deadline

Accounting / FCA fines Merrill Lynch £34.5m over derivatives reporting failures

The Financial Conduct Authority (FCA) has fined Merrill Lynch International (MLI) £34.5m for failing to report tens of millions of exchange traded derivative transactions over a two-year period under the European Markets Infrastructure Regulation (EMIR)

Audit / IAASB updates on group audits work

The International Auditing and Assurance Standards Board (IAASB) has issued an update on the work being undertaken by its group audits taskforce on the revised international standard on auditing (ISA) 600, Special Considerations‒Audits of Group Financial Statements

Tax / HMRC updates anti-money laundering supervision fees guidance

HMRC has updated its guidance on the fees payable when registering for anti-money laundering supervision, and how to pay them, including details of a new £40 approval fee payable by accountancy services providers

Insight / Consultation on principles for shareholder voting research

The Best Practice Principles Group (BPPG) has launched a consultation seeking views from investors and companies on whether the best practice principles for shareholder voting research and analysis have been effective in ensuring the integrity and efficiency of the services provided

Insight / Scottish government consults on national investment bank

The Scottish government has moved forward on plans to establish a Scottish national investment bank, opening a public consultation on the details of the bank’s operation, which was originally floated as part of the programme for government launched in September

Audit / FRC warns companies against ‘complacency’ in reporting

The UK’s largest listed companies still have work to do in improving the clarity and completeness of their corporate reporting, according to the Financial Reporting Council’s (FRC) annual review, which says there has been no discernible improvements compared to the previous year

Technical Alerts

20 Oct 2017

Insight / Tips and advice: preparing your accounting practice for sale

When accounting firms look to sell their business, it is essential to profile and prepare the business ready for a sale, from the critical financial data to softer information about management structure, client base and staffing splits, advises Keith Underwood, managing director of merger experts Foulger Underwood

Tax / Tax revenues up £35.6bn as CGT and stamp duty bite

HMRC’s tax take has seen its biggest jump since the recession in the last year, rising by £35.6bn, with a 10% hike in revenue from national insurance contributions (NICs) while higher rates of property tax have raked in £1.1bn in additional revenue

Tax / HMRC consults on draft guidance on enabler rules for tax advisers

HMRC is consulting on draft guidance covering new legislation on enablers of defeated tax avoidance schemes which will be introduced once Finance Bill (No.2) 2017 receives Royal Assent, and which could see accountants and lawyers liable for penalties as a result of providing contentious advice in this area

Accounting / IFRS 15 rollout will stop mobile networks overcharging after contracts end

Telecoms giants Vodafone, EE and Three are continuing to charge customers extra for a handset after this cost has been covered in their fixed deal, research suggests, despite the looming prospect of IFRS 15 Revenue from Contracts with Customers

Accounting / Charities must comply with financial sanctions requirements

Charities need to ensure they comply fully with the latest financial sanctions rules, warns the Office of Financial Sanctions Implementation (OFSI)

Insight / Unpaid tax bills see HMRC pull the plug on computer reseller

Misco UK Ltd, a computer reseller business has gone into administration after HMRC applied for a winding-up order over unpaid taxes, with the loss of around 300 jobs

Insight / Charity Commission looks into children’s disability charity

The Charity Commission has opened a statutory inquiry into Dream It Believe It Achieve It, over concerns about its financial controls, including the charity’s relationship with connected companies.

Audit / European Court of Auditors to audit EU fraud

The European Court of Auditors is to conduct an audit on how the European Commission manages the risk of fraud in EU spending, in response to concerns that not enough is being done to tackle the issues

Insight / Call for watchdog to assess public spending plans

Failures in financial planning mean the government is being forced into poor and reactionary spending decisions, instead of getting ahead of problems before they become crises, spending over £10bn in five years just to keep troubled services going, according to research by CIPFA and the Institute for Government

Insight / Roofer’s £102k tax fraud falls through

Richard Cakebread, a self-employed roofer, has been jailed for 20 months for evading £88,000 in VAT and stealing a further £14,000 by failing to pay income tax, following an investigation by HMRC

Insight / People in the news: RSM, IVSC, Quantuma, Leon & Co

In this week’s moves and appointments roundup, RSM appoints a tax director in its Manchester office and the firm’s legal arm makes it onto the Legal 500 list, the International Valuation Standards Council (IVSC) appoints a trustee member

Technical Alerts

19 Oct 2017

Tax / HMRC races to update IT system to handle dividend tax change

HMRC’s own computer systems have been unable to deal with the slew of changes to dividends and interest income introduced for the year ended 5 April 2017 so it is having to take swift action to address the problems, warn RSM head of tax risk and investigation Mike Down and tax manager Sarah Saunders

Accounting / FRS 101: disclosure exemptions explained - part 2

Anne Cowley ACA examines the disclosure requirements and exemptions provided under FRS 101 Reduced Disclosure Framework, and explains how to make the most of reporting under this accounting regime and any potential pitfalls for reporters

Insight / DWP takes over pension dashboard project from Treasury

Development on the pension dashboard will continue with the Department for Work and Pensions (DWP) announcing that it has taken over the responsibility from the Treasury after economic secretary Simon Kirby, who was involved in the project, lost his seat in the June election

Audit / UK regulation could need EU recognition post-Brexit

The regulation of audit after the completion of Brexit may need to be recognised as equivalent by the EU in order for UK firms’ work to be accepted, the Financial Reporting Council (FRC) has admitted

Tax / IRS to require health coverage details with annual tax returns

The US Internal Revenue Service (IRS) has announced it will not accept electronically filed tax returns for taxpayers who do not include information about the health coverage requirements of the Affordable Care Act (ACA), starting from the upcoming 2018 filing season

Tax / Amazon wants tax breaks for second US HQ

Amazon’s announcement that it is looking for a US city in which to set up HQ2 and its requirement that the chosen location is ‘business friendly’ has sparked controversy over whether the contenders should offer tax breaks and other financial incentives

Insight / UK organisations lagging on cyber security preparations

Despite some well publicised and damaging cyber security incidents recently, nearly one in five UK organisations do not prepare for cyber attacks and only half conduct penetration tests to examine their defences, according to research by PwC

Insight / Warning on ‘endemic’ low pay in UK

There has been little progress in the number of people managing to escape from poorly paid jobs in the UK with women earning less than men, according to a report from the government’s Social Mobility Commission

Insight / Treasury Committee launches inquiry into women in finance

The Treasury Committee is to investigate women in finance, focusing on the Treasury’s women in finance charter and the progress made against it, in a bid to identify the barriers to women entering and progressing in the financial services industry

Insight / Sham company director fakes death to avoid 14-year disqualification

In move described by the Insolvency Service as ‘bizarre’ a man who ran a sham TV company, which he claimed had a turnover of £4.7bn, got a friend to claim he had died, in order to avoid disqualification for dishonest attempts to obtain credit made through a limited company

Technical Alerts