Wednesday 31st August 2011
With the technical team busy preparing autumn's course notes they were quite relieved that August was a relatively quiet month on the technical front. All that changed last week when government proposals to reduce the costs of smaller businesses were announced. The so called 'micro-entity' proposals issued for discussion could have a big impact on small businesses, both companies and unincorporated businesses. The government estimate that no less than 1.3m companies and 3.5 unincorporated businesses could benefit! You'll find more detail in Audit and Accountancy issues below and if you would like to participate, the discussion paper is open for comment until 30 October 2011. We will make sure we keep you updated on the progress.
Whilst these proposals look to cut costs for your clients we have prepared a summary to help you improve the efficiencies of your audits. This continues our series of practical guides surrounding clarified ISAs. See the Economy 7 article below to find out more.
Posting comments on discussion papers links very nicely to news of our own launch into social media. We have already posted a few blogs and we would very much like to receive your comments and views on our thoughts. For those of you who know Andrew Guntert you'll not be surprised to read his contribution. It may only be a few lines long but we are quietly confident it will encourage a few comments! You can access all our social media channels from links on the newswire banner above and on our website. If you visit our YouTube page you can also watch the Sisters of Mercia performing at Liz's retirement party. You'll find more news on this event in office gossip below.
Nicola Hurley
Director
nicola.hurley@mercia-group.co.uk
Farming Conference 2011
The one day Farming Conference looks at a wide range of practical issues which enable those with responsibility for a number of farming clients to provide the best possible advice. Topics covered include:
- Farming Profitability Outlook
- Farming Diversification and the Associated Tax Treatment
- Succession and Maximising Reliefs
- Farming Renewables
- Protecting Farming Assets on Divorce
- Policy Change Ahead
- HMRC's Aggressive Stance to Farming
The Farming Conference will be taking place at Hilton Hotel Castle Donington on 18 October 2011 and Marriott Hotel in Huntingdon on 4 November 2011. It costs £265 (including lunch) plus VAT per person, £50 for MembershipPLUS or 25% discount for members.
For the full course outline please click here. If you have any questions, or need further information, email emily.bailey@mercia-group.co.uk
Online Professional Development Courses
Following on from the success of the Mercia online 'An Introduction to Bookkeeping' course, more of our popular professional development courses are now available online:
- Understanding Company Accounts
- Understanding Analytical Procedures
- Audit Exemption and Abbreviated Accounts
- Understanding FSA Assignments
The online solution allows your staff to access a course from their desk; the course can be worked through in one sitting or done in parts, giving flexibility in working around their other commitments. Included is an audio presentation, PowerPoint slides and case studies. A set of comprehensive notes are also included and can be downloaded at any time. To view further course details of all the Mercia online professional development courses please click here.
Audit and Accountancy Issues
Economy 7 for your audits
Many firms have now completed a number of assignments under the clarified ISAs. Continuing with our series of practical guides on implementation, we have put together an article setting out seven simple reminders of ways to improve the efficiency of your audits. Click here to download your copy.
Proposals for simplified smaller business reporting
The Department for Business Innovation and Skills, along with the Financial Reporting Council, have issued a discussion paper outlining proposals to simplify the financial and corporate reporting requirements for the smallest businesses - so called 'micro-entities'. European Commission proposals currently being considered define a micro-entity as a company trading for profit and not exceeding two of the following criteria:
- a net turnover of Euro 500,000 (£440,000)
- a balance sheet of Euro 250,000 (£220,000)
- average of 10 employees during the financial year.
The paper proposes that micro-entities would be able to prepare:
- a simplified Trading Statement in place of the current profit and loss account on a cash receipts and payments basis;
- a simplified Statement of Position replacing the traditional Balance Sheet and reporting using simplified headings;
- a simplified Annual Return;
- use of this simplified information for tax purposes.
Other proposals include filing annual returns within 12 weeks of the financial period end and standardising the reporting year. The discussion paper is open for comment until 30 October 2011. To see it in full, click here.
Updated exempt charity guidance
The Charity Commission has issued updated guidance on exempt charities (CC23) to reflect recent legislative changes surrounding the charitable status and regulation of academies, foundation and voluntary schools and sixth form colleges. To read more click here.
News for Mercia technical manual subscribers
We have released updates to the Mercia Audit and Audit Procedures Manuals which principally take account of the changes arising from the revised APB Ethical Standards.
Earlier this month we also issued an update to our Practice Assurance Compliance Manual. If you are a subscriber and have any administrative questions about the update please contact karina@mercia-group.co.uk or call her on 0116 258 1200
Tax Issues
Civil Disorder helpline
HMRC have announced a helpline- 0845 366 1207 - to help businesses and individuals adversely affected by the recent civil disorder.
The dedicated Civil Disorder helpline is available to provide comprehensive advice and deal sympathetically with problems currently faced by businesses and individuals. To read more, please click here.
Pension Schemes Services New Forms
HMRC have published a new Pension Scheme Services form, APSS227 - Application for protection of your lifetime allowance - fixed protection, along with completion notes. They have also published APSS315- Registered Pension Schemes flexible drawdown payments.
The Pensions Regulator - online interactive tools for employers
The Pensions Regulator has launched an online tools designed to help smaller businesses get to grips with their employer duties under the new laws, which start in 2012. To read more, please click here.
HMRC get slated regarding penalties for late P35s
In a potentially wide-ranging case, HMRC have been castigated for deliberately issuing penalties for late P35s several months late, thus generating more penalties than are necessary.
To read our summary of the case, please click here.
Reed Employment Decision and Update - VAT on Temporary Workers
HMRC have released Revenue & Customs Brief 32/11 which sets out their guidance following the Reed decision. HMRC consider that the Reed decision is only binding on the parties to the appeal and their guidance set out in VAT Information Note 03/09 is still extant.
There is still scope for a bureau acting as an agent to account for VAT on its gross commission. However, a bureau acting as a principal has to account for VAT on the full amount charged to clients including the temps' wages and employers' NIC.
We will see further litigation on this subject and in the meantime a bureau could consider if meets the "agency tests". For further advice please contact James Taylor at IVC.
Click here for more VAT news.
Office Gossip and Idle Chat!
Goodbye to Liz
We have been sharing over the last few months details about Liz Coates' retirement; on the afternoon of July 29 we said a fond farewell to Liz in true Mercia style! Her party celebrated her 22 year contribution to Mercia and we were all treated to live entertainment from 'The Sisters of Mercia'...
Some of our very talented team members formed a band the 'Sisters of Mercia', the line-up of Jeremy Williams (lead guitar and vocals), Ann Steer (vocals and percussion), John Johnston (bass guitar), Matt Green (rhythm guitar), Jackie Thomasson (drums) and Norman Allison (keyboard) entertained us with a varied 'set'.
Everybody joined in with the Sisters of Mercia rendition of 'Admin Queen' in honour of Liz, to view us in action (and the amazing Sisters of Mercia), click through to the Mercia Group YouTube page here.
