CCH Daily

Insight / Nurturing ambition in finance - tips and advice

Informing employees on promotion timelines, giving them recognition for their accomplishments and providing training are all things employers can do to ensure they attract and retain the most ambitious individuals, says Karen Young, director at Hays Senior Finance

Tax / HMRC hikes spend on counter-avoidance tax staff by 7%

HMRC has ploughed an additional 7% investment into the counter-avoidance directorate staff over the past 12 months, ahead of the introduction of the Criminal Finances Act 2017 at the end of this month which will make companies and partnerships criminally liable if they fail to prevent tax evasion by either a member of their staff or an external agent

Tax / Government sets out plans for Making Tax Digital for VAT in Finance Bill (No.2)

The latest draft Finance Bill sets out the framework for VAT reporting under Making Tax Digital, confirming that the rules will not be in place before April 2019 while those who fall below the VAT threshold, currently £85,000, will not have to digitally report 

Insight / CIOT revises Chartered Tax Adviser exams and opens up eligibility criteria

The Chartered Institute of Taxation (CIOT) has overhauled the Chartered Tax Adviser (CTA) examinations to ensure that the CTA continues to be as relevant as possible to the needs of tax professionals, and has removed the 'confirmation of eligibility' requirement

Audit / Lack of transparency over government use of £973m Libor Fund

The National Audit Office (NAO) has slated the government’s handling of the £973m Libor Fund, which makes charity donations from fines paid by banks for manipulating key benchmarks, saying it is unclear whether the money has been used as intended and whether a commitment to fund additional apprenticeships has been met

Insight / ICAEW launches business and finance professional (BFP) designation

ICAEW has unveiled a new professional designation for individuals who want to pursue a career in business and whose role involves an element of finance related work, called the ICAEW business and finance professional (BFP)

Tax / Draft Finance Bill (No.2) 2017 published

The government has published the draft Finance Bill (No.2), which will have its second reading in the House of Commons on Tuesday 12 September, the first time that MPs will be able to debate the proposals

Tax / Switzerland plans to overhaul corporate tax regime

Following several failed attempts to win support for an overhaul of the Swiss corporate tax regime, Switzerland’s Federal Council has started a new consultation on an updated package of corporate tax reforms, which it says will meet international requirements but will have less of an impact on the federal budget

Tax / VAT scam car dealer to pay £2m or face more jail

A jailed luxury car dealer, who built a property empire with profits from a VAT scam involving Lamborghinis, Porsches and Mercedes, has been ordered to repay £2m or face an additional ten years in prison

Insight / Called to account: September 2017

The latest scandals, cases and penalties including an accountant fined £75k over pensions advice failures, debt management directors receive a disqualification and an accountant is jailed for £350k VAT fraud

Insight / Finance Mole: unfamiliar territory

From tattoo advice to stair challenges a stressful day for Finance Mole makes him yearn for a spreadsheet, plus the Accountancy team gets a blast from the past and PwC holds one of the shortest audit reigns

Insight / Jon Davies Accountants sets up Liverpool practice

Established Merseyside accountant Jon Davies has set up an accounting practice based in Liverpool, with a team of four senior client managers

Insight / People in the news: Moore Stephens Intl, ICAS, BDO, PwC, Quantuma, MHA Carpenter Box

In this week’s moves and appointments roundup, ICAS chief executive steps down to join Moore Stephens International, new trainees at BDO, Creasys and MHA Carpenter Box, Quantuma hires insolvency specialist and Ian Kenyon named first CFO of new UK Research and Innovation body

Technical Alerts

7 Sep 2017

Accounting / IFRS 16 Leases: transition to lessee accounting

Armaghan Haq FCA and David Maxwell ACA examine the transitional options and their impact on adoption of IFRS 16 Leases under the new lessee accounting rules set to come into force from 1 January 2019

Insight / Farnell: when is an accountant not an ‘accountant’?

Hiring an accountant is not always as transparent as one might think as anyone can say they are an accountant, regardless of whether they have specific institute endorsed qualifications. Sean Farnell, partner at Burgis & Bullock, says it is high time this shoddy state of affairs was reviewed and calls for tighter controls on who can call themselves an accountant

Tax / HMRC announces Leeds city centre regional hub

HMRC is to move into a brand new government hub in Leeds, 7 & 8 Wellington Place, as part of its strategy to consolidate services into regional centres, it has been confirmed

Accounting / Switch to IFRS 15 sees Capita’s 2016 profits re-stated

Outsourcing specialist Capita has re-stated its underlying operating profit for 2016, which is now down from £481m to £335m, as a result of its early adoption of IFRS 15 Revenue from Contracts with Customers, which has had a significant impact on its long-term contracts and software business

Tax / OECD updates country by country reporting guidance

The OECD has released two sets of guidance to give greater certainty to tax administrations and multinational groups on the implementation and operation of country-by-country reporting (CBCR), which is action 13 of its Base Erosion and Profit Shifting (BEPS) plan

Tax / HMRC’s footballers’ image rights inquiry score increases

HMRC’s project investigating tax payments on offshore image rights, which is predominantly an issue in the football industry, has recorded a sharp rise in the number of clubs and players under scrutiny, according to the latest information given to Parliament

Insight / BEIS push to improve diversity in UK listed companies

The Department for Business, Energy and Industrial Strategy (BEIS) is mounting a campaign to encourage the UK’s largest companies to increase transparency around diversity policies and targets

Tax / Treasury consults on tax breaks for financing innovative companies

The Treasury is consulting on ways to increase the sources of finance for innovative, high growth potential companies as part of a review of the use of patient capital

Tax / December 2017 end date for HMRC payments at Post Office

HMRC has confirmed that from 15 December 2017 taxpayers will not be able to make payments for outstanding tax bills at any Post Office via cheque, cash or card

Insight / Scottish local councils still to resolve equal pay issues

Local government in Scotland has taken twice as long as anticipated to implement equal pay for council workers, and is still struggling to meet the legal requirements in this area, with around £750m spent on settling claims so far and nearly 27,000 still outstanding, according to a review by the Accounts Commission

Technical Alerts

6 Sep 2017

Tax / Scottish government may raise income tax by 1p

The Scottish government has signalled it is considering using new devolved tax powers to vary the rate of income tax for the first time, after first minister Nicola Sturgeon announced a discussion paper on ‘the use of income tax in Scotland to support public services’

Tax / What are HMRC Simple Assessments?

In a bid to reduce the number of taxpayers forced to complete a Self Assessment tax return, HMRC has introduced Simple Assessments, but there are potential pitfalls, particularly for those outside PAYE and pensioners who are liable for tax, says Graham Boar, tax director at UHY Hacker Young

Insight / Gareth Rees QC resigns as FRC executive counsel

Gareth Rees, the Financial Reporting Council’s (FRC) QC in charge of its disciplinary system, has resigned after five years in post to join law firm King & Spalding

Tax / Parents to claw back child benefit charge via pensions

Hundreds of thousands of working families in the higher tax bracket are missing out on up to £171m a year by failing to take advantage of a little-known connection between their pension contributions and their child benefit entitlement, according to an analysis by mutual insurer Royal London

Tax / Finance Bill (No.2) to be published 8 September

The government has announced the Finance Bill will be published on Friday 8 September, following the delays caused by the April snap election

Insight / UK calls for EU to be ‘more imaginative’ on Brexit customs deals

The UK government is urging the EU to   be ‘more imaginative and flexible’ in their approach to the movement of goods on the market post-Brexit, according to the latest update from the Department for Exiting the European Union (DexEU) which says it wants to minimise uncertainty and disruption for business

Tax / Luxembourg remains attractive tax regime despite tax avoidance issues

Luxembourg is too often associated with tax avoidance after the ‘Luxleaks’ scandal and low tax rates but Wolters Kluwer Global Tax experts say the tax regime still remains attractive when compared with other countries

Insight / Leonard Curtis cooks up new owner for collapsed cake company

Andrew Duncan and Alex Cadwallader, directors at Leonard Curtis Business Solutions Group, have been appointed joint administrators to cake makers More Food Ltd, and have sold the company via a pre-pack deal, saving some 150 jobs

Tax / Catax and Croner Taxwise sign joint venture to cross-sell services

Specialist tax relief company Catax has signed a joint venture with fee protection insurance provider Croner Taxwise, a subsidiary of Peninsula Business Services Group, in a move to broaden its reach across the accountancy profession

Insight / 50 jobs saved despite collapse of one of Scotland’s oldest law firms

Scottish law firm Thorntons has acquired the assets, goodwill and work-in-progress of Fife-based Pagan Osborne following the appointment on 1 September 2017 of Tom MacLennan and Iain Fraser, partners with FRP Advisory, as its joint administrators

Audit / Diploma ends 10-year Deloitte audit contract with move to PwC

FTSE 250 life sciences specialist Diploma is to change auditor with the appointment of PwC as its auditor for the financial year ending 30 September 2018, subject to shareholder approval at the 2018 AGM

Technical Alerts