CCH Daily

Tax / Economic trends: unstoppable forces and immovable objects

Nomura chief UK economist George Buckley takes stock of the UK’s progress since its vote to leave the EU, the tightening consumer confidence and the effect of the snap election on the economy

Insight / Brexit and EU rules: Data Protection Directive – part 5

In part five of our EU Directives series, Stefan Petrovski, accounting supervisor at Primexis, considers the long reach of the revamped and refreshed Data Protection Directive which will net both EU and non-EU members and comes into force in the UK in May 2018

Tax / Labour manifesto: new tax band for high earners

Labour claims it will fund its £48.6bn of pledges with extra tax revenue, including from a new 50p income tax band for those earning over £123,000, as it launched its election manifesto

Tax / Case: loyalty scheme payment was not third-party consideration for VAT

In Marriott Rewards LLC [2017] TC 05634, HMRC successfully rejected a repayment claim for those in business overseas with the First Tier Tribunal (FTT) holding that certain services were not connected with immovable property and were not advertising services, with the services relating to loyalty-reward stays

Tax / Pension scheme providers to be notified on members’ residency tax status

From January 2018, pension scheme administrators will be informed on individual scheme members’ residency tax status to allow them to calculate the correct amount of tax relief due, in light of the recent introduction of the Scottish rate of income tax

Audit / Deloitte takes pole position from KPMG for McLaren F1 technology

KPMG has terminated a planned decade-long agreement with McLaren Applied Technologies after only two years, and the F1 grand prix racing specialist supplier has now signed a partnership deal with Deloitte

Tax / Banker loses case over £57k taken under UK-Swiss tax agreement

A Swedish banker who had £57,000 taken from her bank account by Credit Suisse to comply with the requirements of the former UK-Swiss tax cooperation agreement has lost a claim in the High Court for a refund of most of the levy from HMRC on the grounds that the amount of tax in dispute was under £7,000

Insight / VAT fraudster to repay £68k or face additional jail time

A man sentenced for a total of six years for an attempted £465,000 VAT fraud has been told he must repay £68,712 or serve a further eight months in prison

Audit / ICAEW issues framework for auditing bank regulatory ratios

The ICAEW has issued its framework for auditing bank capital numbers with the aim of meeting banking regulatory ratios, including capital, liquidity and leverage ratios, while also being of use to audit committees and others that commission relevant assurance work

Insight / Commission issues cyber alert to charities

The Charity Commission has issued an alert to charities and has provided regulatory advice on cyber attacks under the Charities Act 2011, following the recent ransomware attack on NHS services

15 May 2017

Insight / Buying and selling companies: due diligence checklist

When buying or selling a company it is essential to follow a structured due diligence process from reviewing fundamental financial performance to the current management of the business. Clive Hyman, MD of Hyman Capital Services offers tips and advice on the key issues to consider in a step-by-step guide 

Tax / Actor facing £188k tax bill spends £50k on wedding

Actor Kelvin Fletcher, who played the part of Andy Sugden in Emmerdale for 20 years, is facing claims from HMRC over a £188,000 tax bill, and a six year ban from being a company director at the same time as reportedly spending around £50,000 on his wedding

Tax / HMRC wins appeal over VAT on holiday park’s electricity supply

HMRC has won at the Court of Appeal in a long-running argument with a provider of caravan holiday parks over the question of whether the reduced rate for VAT on supplies of fuel applies

Audit / Deloitte secures £9m BAE Systems audit contract

Defence giant BAE Systems has become the latest FTSE 100 company to change auditor following new rotation requirements, with Deloitte scheduled to take over from KPMG’s 36-year tenure as the company’s auditor for the financial year ending 31 December 2018

Tax / Labour proposes £26bn ‘Robin Hood’ tax

Labour’s shadow chancellor John McDonnell has said the party will introduce a financial transactions tax if it wins the general election next month, claiming the so-called ‘Robin Hood’ tax would raise £26bn over the course of the next Parliament

Tax / Case: holdover relief denied on business asset gift

A First Tier Tribunal (FTT) dismissed an appeal against the disallowance of a hold-over claim as the company was controlled by persons not resident in the UK

Accounting / Ireland to adopt FRS 105 for the first time

Ireland has passed the Companies Accounting Bill 2016 and will begin to implement the EU accounting directive which allows small and micro companies to use FRS 105 micro entities regime and section 1A of FRS 102 for the first time, despite the UK adopting the same legislation two years ago

Accounting / World Bank agreement to push IFRS adoption in developing economies

The global accounting standard setter, the IFRS Foundation, has signed a cooperation agreement with the World Bank to support developing economies in their adoption and use of International Financial Reporting Standards (IFRS)

Accounting / Consultation on revisions to global valuation standards

Global standard setter the International Valuation Standards Council (IVSC) has opened a consultation on future revisions to the international valuation standards (IVS) in a number of areas, despite only publishing IVS 2017 in January

Insight / Under quarter of FTSE 100 report on company ethics

The UK’s biggest companies are still failing to provide shareholders with adequate information on ethics, with just 22% of the FTSE 100 including ethical performance metrics in their latest annual reports according to research by the Chartered Institute of Internal Auditors (IIA)

12 May 2017

Insight / Mergers and acquisitions: tips and pitfalls

The UK may be experiencing the most volatile economic climate in decades, but for many companies there is at least one silver lining amid all this uncertainty, merger and acquisition (M&A) activity is booming, Miguel Vergara, EPM Evangelist at Oracle, outlines how to make a merger a success by consolidating data and Cloud software

Tax / Old child trust funds match Junior ISA rate for 2017/18

HMRC has confirmed the annual subscription limit for the now closed child trust funds (CTF) for 2017 to 2018 will be £4,128, same of the Junior ISA which is the recommended tax-free savings vehicle for children

Tax / UK in top three for EU ‘sin taxes’

The UK, along with Ireland and Finland, tops the European league table for ‘lifestyle regulations’, including heavy taxes on alcohol, soft drinks, e-cigarettes, food, and tobacco, according to research by the European Policy Information Centre (EPICENTER)

Audit / Independent review of FRC audit sanctions and penalties out for consultation

In a bid to improve the disciplinary oversight regime for auditors and accountants, the Financial Reporting Council (FRC) has given the green light for work to start on the independent review of the sanctions imposed under the audit watchdog's enforcement procedure 

Tax / Case: appeal against disclosure notice dismissed as evidence was inadmissible

A First Tier Tribunal (FTT) dismissed an appeal against closure notice as the properties were not trading stock but capital investment therefore, the FTT did not need to consider whether any losses arising were available to be offset against taxable income 

Tax / HMRC updates form 64-8 guidance

HMRC has updated form 64-8 guidance on how to use paper forms to set up agent authorisation to deal with the tax authority

Tax / Scotland mulls plan to raise top income tax rate to 50p

The Scottish finance secretary has indicated the government is conserving whether to raise the top rate of income tax in Scotland to 50p next year, in line with an SNP manifesto commitment

/ People in the news: Mercer & Hole, Blick Rothenberg, Wilkins Kennedy

In the latest accountancy jobs moves, Mercer & Hole appoints a corporate finance director, two partners join Blick Rothenberg’s corporate tax team, Wilkins Kennedy makes three partner promotions

Insight / Software supplier Xero books 43% revenue growth

Cloud accounting software provider Xero Ltd has reported 43% year-on-year growth in operating revenue to reach NZD$295.4m (£157.5m) for the year to 31 March 2017, an increase of NZD$88.3m (£47m) over the previous year

Audit / Auditors influenced by personal bias, warns ACCA

ACCA is calling for changes to the standard-setting, regulatory and audit processes to take personal bias into account, in a bid to improve audit quality and encourage greater professional scepticism

Insight / Kingston Smith media acquisition takes the stage

Top 20 firm Kingston Smith has acquired Anderson & Pennington, a boutique firm of accountants and business advisers serving the media and entertainment sectors, in a bid to strengthen its media services offering