JULY  2017

So at last some common sense has prevailed. The Government or HMRC (it is not entirely clear which is pushing this project so hard) have at last decided that the pace of the introduction of Making Tax Digital (MTD) will be slowed for businesses. We have summarised our thoughts on the latest developments in our blog post Making Tax Digital delayed - but which bit?.

Our tax team still have plenty to keep themselves occupied though and the recent reforms of the IR35 legislation is an area keeping them busy. Our free download this month offers more information on off-payroll working in the public sector.

On Audit & Accounting side, the Financial Reporting Council (FRC) have decided that further work is needed before proposals to amend FRS 102 for major changes to IFRS are consulted upon. The FRC have also issued revisions to auditing standards that become mandatorily effective for audits of financial statements with accounting periods commencing on or after 15 December 2017. For more information, see A&A section below.

Nicola Hurley Managing Director

Mercia Free download

Off-payroll Working In The Public Sector

An informative opinion piece which looks at the reform of the IR35 legislation.

taxapp

taxapp

Give your accountancy firm a digital advantage

Provide valuable tools and tax information to your clients at the touch of a button

Available on iOS, Android and Windows Phone.

Mercia Academies Update Conference 2017

Academies Update Conference

7 September 2017 London

A one day conference specifically for partners and senior managers with responsibility for a number of clients in this sector.

AUDIT & ACCOUNTING

FRS triennial review update

The FRC have decided that further work is needed before proposals to amend FRS 102 for major changes to IFRS are consulted upon. Therefore, its triennial review (phase 2) exposure draft, initially scheduled to be issued later this year, will be deferred.

This will allow more time for the FRC to consider any proposals to reflect the principles of the expected loss model of IFRS 9, IFRS 15 (revenue recognition) and IFRS 16 (leasing) in FRS 102. It does not affect other proposed amendments to FRS 102 that were suggested through the phase 1 exposure draft, issued earlier this year.

Earlier this month the FRC also issued Amendments to FRS 101: Reduced Disclosure Framework - 2016/17 Cycle.

Audit bank letters

The FRC have issued revisions to auditing standards that become mandatorily effective for audits of financial statements with accounting periods commencing on or after 15 December 2017. Principal revisions include:

  • Amending ISA (UK) 250 on laws and regulations to reflect revisions to the International Code of Ethics; and
  • Withdrawing Practice Note 16 (PN16) on bank reports for audit purposes and integrating a streamlined approach into a revised ISA (UK) 330 on the approach to assessed risk.

One of the key changes that will arise on implementation of the above revisions will be that the revised ISA (UK) 330 allows the need for a bank confirmation to be driven by the auditor’s own views on risk, rather than the PN16 assertion that the auditor will usually conclude that a bank confirmation is required.

Technical manuals news

We have issued an update to our Academies Specialist Assignment Manual to reflect changes made by revised auditor standards and the ESFA Accounts Direction 2016 to 2017.

If you are a subscriber and have any administrative questions about these updates, please email Karina Johnston or call us on 0116 258 1200.

TAXATION

Making Tax Digital delayed

In a victory for common sense, the Government have delayed the implementation of MTD. More information available here. The Government have also updated their policy paper on MTD.

Penalties for late submission of Non Resident Capital Gains Tax returns

HMRC have confirmed to the CIOT that it will no longer issue £10 daily penalties for late non-resident CGT returns. Past penalties will also be withdrawn. More information available here.

OTS review and recommendations on simplifying the corporation tax computation is published

This report sets out some significant steps towards creating a 21st-century corporation tax system in the UK, responding to calls from businesses of all sizes to make the calculation of corporation tax simpler, with fewer changes and more time to plan. The report looks at four broad themes:

  • simpler tax for smaller companies
  • aligning the tax rules more closely with accounting rules where appropriate
  • simplifying tax relief for capital investment
  • a range of further issues affecting the largest companies

More information available here.

HMRC update off-payroll working rules for public authorities

HMRC have updated their guidance on off-payroll working rules for public authorities. More information available here.

HMRC guidance on TAAR

HMRC have updated their guidance on the Targeted anti-avoidance rule (TAAR) and winding up. Read more here.

OUR LATEST BLOG POSTS

Mercia Blog TTYC Company Car Changes July 2017

Talking To Your Clients

Company Car Changes

By Mark Morton

Mercia Blog FRS 102 – A Stable Future?

FRS 102 – A Stable Future?

By Helen Lloyd

Mercia Blog 10 Ways to Use Social Media For Your Firm

Tips On Using Social Media For Your Firm

By Marketing Team

OFFICE GOSSIP & IDLE CHAT

Mercia's Communications Day

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As is tradition, every year we close the office for a day to hold a team communications event to share news, developments and achievements with the whole team, including our Mercia colleagues in Ireland and Practice Track colleagues in Bristol.

This year we also welcomed our SWAT UK colleagues from Plymouth and London - it's been year since we acquired them.

After a morning of announcements and updates, we had an afternoon of ‘summer fete’ fun! 12 teams competed against each other in 12 different games, in a marquee decorated with giant flamingos! The games brought out a wonderful team spirit in everyone and it was a busy afternoon but some of us still found the time to take part in the impromptu flashmob dancing to the tunes of Macarena.

All in all, a fun day for everyone and a great opportunity for teams from different locations, to meet, to share ideas, to catch up and do a bit of team building.

Thank you for following us on LinkedIn and Twitter

Mercia Social Media

This month we reached a milestone 2,500 followers on LinkedIn. In the past year, we have also seen the number of our followers on Twitter soar to over 3,100.

We use our social media channels to regularly curate and share relevant updates from the Accounting and Audit industry.

We'd just like to say a big thank you to all of you who follow us and share our content on social media. We are pleased to know that you are finding the content we share useful and relevant. We also enjoy the photos and feedback you share from our attending our courses and conferences. Keep 'em coming!

Fresh faces

We're really pleased to welcome Kaye Davis to the technical team. Kaye joins us as a Professional Training Workshop lecturer and consultant, having previously worked for Aspire, Achieve and Advance Limited.

We are also pleased to welcome on board Alison Latham who has joined us as our new HR business partner.

Get in touch

0116 258 1200

enquiries@mercia-group.co.uk

www.mercia-group.co.uk

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