Tuesday, 31 August 2010
We try to use our opening paragraph to share what is happening at Mercia and current issues for the profession. Your calls to the office and questions and comments on courses are always useful in helping us to share such matters. If we were to focus on what has been happening at Mercia this month (and since the New Year) the whole opening paragraph could just repeatedly say Clarified ISAs, Clarified ISAs, Clarified ISAs! So whilst you may not be as worn down by them as much as our A and A team is (although it seems many of you are waking up to the fact they are on their way) we thought we would give ourselves a break and avoid mentioning them - well we almost succeeded!
The summer is always quiet on the tax front as ministers and civil servants jet away on holiday but it has been a welcome break from announcements and consultation papers. It has given the tax team time to update course notes for the Finance Act courses and we have included a short extract from these notes regarding the recent FHL and Pensions consultation papers under tax issues below. And whilst August may have been quiet, with a third Finance Bill due in the autumn to implement the changes already announced the pace of tax change will remain challenging.
Nicola Hurley
Director
nicola.hurley@mercia-group.co.uk
Audit manual courses
Our Audit manual has now been updated to include Clarified ISAs and we have planned a nationwide series of Clarified ISAs audit manual update courses to run in October and November 2010. These will focus on the changes to the Mercia audit documentation arising from Clarified ISAs. To find out more click here.
If you would like to hold the course on an in house basis to train your whole team email liz.coates@mercia-group.co.uk
Corporate brochures, banner stands, html emails and more
We can help you with all your marketing requirements. Our in house team of fully qualified designers can help you to design a new logo or brochure, create an attractive banner stand for reception or sponsorship events, and produce an html email inviting your clients to a seminar or reminding them to send in the information for their tax returns.
We can also advise you how to get the most from your website, perform a website health check or help you integrate Google Analytics. We can prepare personalised copy, create a marketing plan or offer marketing advice. If you would like to know more contact Nicola Hurley on 0116 258 1200 or email nicola.hurley@mercia-group.co.uk
Audit and Accountancy Issues
Audit news
August has seen the Auditing Practices Board (APB) issue a Discussion Paper entitled 'Auditor scepticism: Raising the bar'. The APB has developed this with the cooperation of the Professional Oversights Board (POB) and its Audit Inspection Unit (AIU).
Professional scepticism is essential for a high quality audits that encompasses all aspects of the auditor's judgement. The Discussion Paper highlights the importance of scepticism to the quality of audits and uses recent research to add to the debate considering what actions may be added to ensure an appropriate level of scepticism is applied.
It is hoped that this Discussion Paper will lead to discussion within the profession about what firms need to do to ensure that auditors are appropriately sceptical and how companies can assist with this to ensure the best interests of investors and other stakeholders.
Companies House
Companies House has produced a guide of 'Common accounts rejections' showing some statistics from Jan to June 2010. As there is currently a high level of rejections, this guide may prove useful to you in identifying and avoiding the most common errors and thus penalties.
The guide also states the exemption statements that must be included on the financial statements.
Money Laundering Regulations news and updates
Plans for a new National Crime Agency
The Home Secretary has announced plans to create a new National Crime Agency. This would harness and build on the intelligence of the, analytical and enforcement capabilities of the Serious Organised Crime Agency (SOCA). As the details are still under consideration, businesses are being reminded that they should continue to report suspicious transactions or activities to SOCA until further notice.
External consultants not permitted to act as Money Laundering Nominated Officer
Following recent FSA investigations, HMRC have taken the same view and have concluded that whilst they have no objection to businesses getting advice from external consultants regarding their obligations under Money Laundering Regulations, the responsibility for complying with the regulations remains with the business rather than the consultant. HMRC do not consider that consultants from outside the business can be appointed as Money Laundering Nominated Officers for any business supervised by them.
Technical Manuals Update
All audit manual users have been emailed informing them of our forthcoming clarified ISA update and asking whether they require an early version. If you do not think that the appropriate person in your firm has been contacted please let us know.
The formal scheduled release of the audit manual update is due in October.
Updates to our Clubs, Charities, Pensions, LLPs and RP(formerly RSL) Specialist Assignment Manuals are due for release in the Autumn.
Technical Manuals Update
All audit manual users have been emailed informing them of our forthcoming clarified ISA update and asking whether they require an early version. If you do not think that the appropriate person in your firm has been contacted please let us know.
The formal scheduled release of the audit manual update is due in October.
Updates to our Clubs, Charities, Pensions, LLPs and RP(formerly RSL) Specialist Assignment Manuals are due for release in the Autumn.
Tax Issues
Consultation documents
At the end of July the government issued a series of consultation documents. Two of the more interesting ones related to Furnished Holiday Lettings and pensions. We will include the changes in our forthcoming Finance Act courses but if you would like to read a summary taken from course notes, please click here.
Mandatory VAT online filing
The Tax Faculty has reported that the deadline for all businesses to file VAT returns online is 2012, including existing VAT registered businesses with a turnover of less than £100,000.
They have now been told that a Ministerial decision has been taken on the timetable for mandating online filing for these remaining VAT businesses. Ministers have decided to mandate online filing for existing businesses with a turnover of £100,000 or less from 2012. To read more, please click here.
HMRC give details of disclosure facilities
The Tax Faculty has also reported that HMRC has given the professional bodies some information about the results of both the New Disclosure Opportunity (NDO) and the Tax Health Plan (THP).
'The NDO has yielded about £82m from approximately 5,500 disclosures -- an average of £14,500.
The THP has yielded about £9m from approximately 1,500 disclosures - an average of £6,500. One case alone raised £1.2m for HMRC.
HMRC highlighted that disclosures have identified others who should have come forward but who have failed to do so; for example other partners in the same medical practice. Cases are being passed to local compliance and to HMRC's specialists in the CIF (Civil Investigation of Fraud) teams and in Special Investigations.
HMRC will start investigations in earnest in the autumn. HMRC is already working on cases for prosecutions and expects prosecution numbers to rise.' To read more, please click here.
Central Agent Authorisation Team: changes to turnaround times for paper forms
HMRC have redeployed resource to higher priority work and this will result in longer turnaround times for processing paper 64-8s and registrations for Self Assessment and self-employment for paper forms handled by the Central Agent Authorisation Team until 31 October 2010. This will not affect turnaround times for online agent authorisations. You can read more on the HMRC website.
VAT and employment taxes - major blow for salary sacrifice and flexible benefit schemes
The recent decision by the European Court of Justice (ECJ) in the Astra Zeneca case could lead to significant VAT costs for employers who operate, or intend to implement, salary sacrifice schemes and could mean fundamental changes to the way they are run. To read more about this and other VAT news, please click here.
Office Gossip and Idle Chat!
Congratulations to Jeremy Williams...
On Friday 20 August, at approx 11:30pm, Jeremy's wife Jane gave birth to Harry Edward David Williams weighing in at 8 pounds 1 ounce. Mother and son are well. Everyone at Mercia is thrilled for Jeremy and Jane and we are sure that everyone who has met Jeremy will be in no doubt he'll make a great daddy.
...And Christina Campbell
Christina didn't just pass her CTA exams but also won a prize. In November this year she will be awarded with the Ian Walker Medal for achieving the highest mark in the awareness paper. Well done Christina.
Lottery success?
In a newswire last year we shared with you the very sad statistics compiled from The Mercia Lottery Syndicate success. This year things are looking up as we won £261 one week and £75 the next; our best wins for years. Is this a sign of things to come or will our luck run out?
