Wednesday 20 December 2006
As the Christmas holiday approaches, you may well be starting to relax in anticipation of a well-earned break. Before you head off, I hope that you find the time to read our newswire.
2006 looks set to end as it started, with ever-changing legislation setting the agenda. The Companies Act 2006 finally hit our desks earlier this month, so we are extremely busy updating course notes and planning updates for our audit and specialist assignment manuals. We are also writing a client briefing to help you explain to your clients how the new Act will impact them. Will the pace of change continue in 2007? No doubt, but you can rest assured that whatever comes your way we will be here to help.
In this issue we are featuring our final Mensa puzzle - as ever, the answer can be found at the bottom of the page. Thank you to those of you who have contacted us to say how much you've enjoyed this monthly diversion throughout 2006. You'll be pleased to hear that we have already chosen next year's teasers but we'll leave the theme as a surprise for our first issue of the new year!
Whatever your plans are for the remainder
of 2006, I hope you have a healthy and happy break and may I take this opportunity to wish you a prosperous 2007.
Nicola Hurley
Director
nicola.hurley@mercia-group.co.uk
New Spring Specialist Courses
Our latest Specialist Courses brochure has now been finalised. Courses for spring 2007 include a mixture of popular general topics as well as areas which will be of interest to those with niche clients. Below is a selection from the 22 courses available:
- Acting for FSA Clients: A Refresher
- Share Valuations
- Practice Assurance - Are You Ready for a Visit?
- 20 Ways to Run Your Practice More Effectively
- Sage Payroll: Set Up and Processing Cycles
- Accounting for Properties and Audit Issues
If you have any questions about these courses please contact liz.coates@mercia-group.co.uk
New Client Briefings
Many of you will be familiar with our detailed bulletins. We have decided to re-launch these publications under the title of client briefings because we believe that this new name more clearly explains their purpose. Traditionally available in a non-personalised format, we have extended the range to include two new options - personalised and bespoke. This offers you a new opportunity to provide useful information to your clients in a branded format which matches your other marketing materials. Titles for spring include:
- Companies Act 2006 - all change for directors
- Trusts - what they can do for you
- Year end tax planning - included with the spring client newsletter
- CIS - a new dawn
Monthly Marketing Tip
At this time of year, it's good to focus on your achievements over the last twelve months. It's also the time to look forward to the year ahead. Regardless of the size of your firm, a marketing plan will help you to focus your efforts and highlight methodically how and when to communicate with your clients and potential clients throughout the coming year. Click here to see a suggestion of activities for 2007.
Audit and Accountancy Issues
Companies Act 2006
The new Companies Act was finally published on 7 December - all 760 pages of it, including 59 contents pages! The new Act consolidates company law legislation from the 1985 and 1989 Acts, as well as the Companies (Audit, Investigations and Community Enterprise) Act 2004, although there are some clauses that will remain in force. The 2006 Act also extends company law to the whole of the UK, so it will now include Northern Ireland. Many of the detailed provisions needed to implement the Act will be set out in forthcoming regulations and the government will be consulting further on implementation and transition. This is expected to start February 2007 and all provisions will be effective by October 2008.
At the moment we're busy updating course notes, planning for the impact on our technical manuals and writing a client briefing to help you keep your clients informed of the changes. If you would like to see what's coming, click here for a copy of the Act.
Charities Act 2006 - implementation plan
As well as the new Companies Act, last month also saw the new Charities Act receive Royal Assent. Again, you can see a copy of the Act here. More detailed implementation guidance has now emerged from the Office of the Third Sector, although precise implementation dates have not been announced. However, we do know that parts of the Act (including the higher audit thresholds) will come into force in early 2007 and subsequent provisions will roll out over the following two to three years. If you would like to see a copy of the implementation plan click here.
Other technical news in brief - Amendment to FRS 17, Retirement Benefits
Following a consultation earlier this year, the ASB has issued an amendment to FRS 17, which aligns the disclosures in FRS 17 with those of IAS 19. In order to allow time to prepare for the amended disclosure requirements, the Amendment will be effective for financial statements covering periods beginning on or after 6 April 2007, although early adoption is encouraged.
The Amendment also amends paragraph 16 of FRS 17, such that for quoted securities, the current bid price (rather than the mid-market value) is taken as fair value. This is a further alignment with IAS 19. The ASB has also indicated that it will publish a Reporting Statement, Retirement Benefits - Disclosures, in January 2007.
Click here to find out more and we'll be covering the changes on forthcoming courses.
Technical manuals update
Subscribers to both our Charities and Clubs Specialist Assignment Manuals (SAMs) have received updates this month. You can check whether you have the latest versions on our website.
Subscribers to our FSA SAMs can expect to receive updates in January 2007 which, amongst other changes, introduce audit exemption documentation to the manuals.
Finally, we are now putting the finishing touches to an update to our Registered Social Landlords SAM which also introduces audit exemption documentation to the manual. Again, this update will be available in January 2007.
Tax Issues
Date for Arctic Systems hearing announced
At last, we have now heard that the Arctic Systems case will be heard in the House of Lords from 5-7 June 2007. The case, and the subsequent uncertainty, has now been running for more than two years and it is to be hoped that some sort of finality to this issue can be obtained before the end of 2007.
HMRC have commented on the completion of tax returns in the intervening period. To view the statement click here.
Charities guidance
The guidance for charities and donors has been updated and improved, including new customer guides and the re-writing of the detailed technical guidance on trading by charities. Please click here to see these new guidance notes.
New Construction Industry Scheme (New CIS) - mailshots
Recently, a letter and a paper list (125 or fewer subcontractors) or a letter and a CD-ROM (126 or more subcontractors) have been sent to all registered contractors. The lists contain details of subcontractors paid since 6 April 2005 and therefore not requiring verification under new CIS. Questions and answers are also available. More information can be found here.
Employer (P35 and CIS36) late filing penalties for 2005/06
HMRC have announced that they started sending out late filing penalty notices from 27 November to those employers who they believe sent in their 2005/06 employer's annual return late. The due date for the 2005/06 return was 19 May 2006 and fixed penalties are charged where the employer's original return was received after 29 May 2006.
Employers can appeal against the penalty by writing to the office address shown on the penalty notice. For more information click here.
VAT developments
If you would like to read about recent VAT developments, please click here for this month's VAT news round-up.
If you would like help with VAT problems or HMRC enquiries, look no further. Mercia has teamed up with IVC, VAT and investigation specialists, to offer preferential rates to Mercia clients for these specialist services. Please click here for more information.
Office Gossip and Idle Chat!
Mercia Scotland takes to the skies!
Many of you will know that on Sunday 26 November, Karen Duncan took part in a sponsored parachute jump, to raise funds for Children First, one of Scotland's leading childcare charities.
"It was an absolutely fantastic experience! We had a clear day, with lots of sunshine and, to be honest, it was colder on the ground than in the air. A huge thank you to the Mercia Give As You Earn Scheme and all those who individually sponsored me - colleagues and clients. My final grand total was £1,015.00."
Getting into the Christmas spirit
The Mercia Christmas tree has made a welcome return to our reception area and, already, our 'Secret Santas' have been hard at work and a large number of presents have been placed there, ready to be opened at our Christmas lunch on 22 December.
If, like us, you have planned a Christmas celebration, have a great time!
We will be closed from midday on Friday 22 December until Tuesday 2 January 2007.
The answer to this month's puzzle is ALISON - 30 HOURS, BARRY - 5 HOURS,
CLAIRE - 25 HOURS, DANNY - 9 HOURS AND ELLIE - 17 HOURS.
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