Tuesday 22 December 2009
Last month we were eagerly awaiting the PBR which whilst not overly exciting saw the release of the draft legislation confirming that the special Furnished Holiday Lettings rules are set to end at the end of this tax year. Some of you have already enquired if we will be writing a client letter highlighting the impact on their clients so a letter is currently being technically checked and will be available early in the New Year.
The 50% tax rate was also confirmed in the PBR and we have also been asked if we could provide information for their high earning clients. In response we have developed a client seminar pack and details of this can also be found below.
Over recent months we've had the opportunity to meet with many of you at our annual training group planning meetings. Amongst plenty of other things you have been telling us that you have taken on fewer trainees or have decided to stagger recruitment throughout the year. To ensure we can offer you the right training when you need it we have developed our first online PDC course, An Introduction to Bookkeeping. Other courses will follow as we believe these alternative ways of learning will give you better choice and flexibility. Further details, including a link to a sample of the course, can be found below.
Finally thank you to everyone who entered our '24' quiz last month and congratulations to Brian, a tax manager at Hawsons in Sheffield, who won the iPod Touch.
Nicola Hurley
Director
nicola.hurley@mercia-group.co.uk
Quiz - winners and answers
If you are interested in finding out the answers to last month's quiz and the names of the lucky 10 runners up who won a webinar place click here.
An Introduction to Bookkeeping - new digital course available
The first in our range of digital PDC courses is An Introduction to Bookkeeping. The course covers the material from both of our Principles of Bookkeeping and Bookkeeping the Next Stage one day courses. Delivered straight to the student's desk top the course can be worked through in one sitting or done in parts giving flexibility in working around their other commitments. It includes an audio presentation, PowerPoint slides and case studies.
To view a sample of the course please click here.
The cost of the course is £300 plus VAT per firm (less 25% discount for members). This gives unlimited access to the course up until 31 July 2010. To renew the subscription for subsequent years the cost will be £200 plus VAT (less 25% discount for members).
50% Tax rate - Strategies for high earners seminar pack.
We have prepared a one hour client seminar covering the detail of the changes to income tax for high earners which will apply from 6 April 2010 and outline some of the possible strategies which could be considered to help mitigate the effects of the changes.
The seminar pack (comprising PowerPoint slides and a PDF set of notes) costs £145 (£95 for members). If you would like us to provide a speaker the cost would be £1065 plus travelling expenses. We could also provide you with printed copies of the notes with a personalised cover. These would cost £50 and £5 per copy.
If you would like to order the seminar pack or check speaker dates please contact Liz Coates at liz.coates@mercia-group.co.uk or call her on 0116 258 1200.
Audit and Accountancy Issues
Practice Note 26 (Revised)
Earlier this month and following the issue of the 'clarified' ISAs in October, the Auditing Practices Board (APB) issued a revised version of Practice Note (PN) 26, Guidance on Smaller Entity Audit Documentation. The revised PN provides guidance for smaller entity audits on documentation under the clarified ISAs. It is in three parts:
- Notes
- Appendix A - Table summarising the key documentation requirements together with a reference to the 'clarified' ISA paragraph
- Appendix B - Illustrative examples of audit documentation using both proprietary systems and a free-form approach.
The notes are similar to those in the original PN. Appendix A, which was previously in the notes section of the original PN, has been fully updated to correspond to the new standards. Appendix B updates the previous examples, with the same restaurant and hotel client being used. However, the revised version now includes several new documentation examples including an audit strategy, working papers, completion and groups.
If you would like to see a copy click here.
Bulletin 2009/4 - Developments in Corporate Governance Affecting the Responsibilities of Auditors of UK Companies
The APB has also issued new guidance for auditors on their responsibilities in reviewing a listed company's statement as to whether the business is a going concern and in reviewing Corporate Governance Statements required by the FSA under its Disclosure and Transparency Rules.
Bulletin 2009/4 updates and supersedes the guidance in paragraphs 68 to 72 of Bulletin 2006/5 relating to the requirement in the Listing Rules for the auditor to review the directors' going concern statement.
A copy of this new Bulletin can be found here.
Improvements to Financial Reporting Standards 2009
The Accounting Standards Board has issued these improvements in order to maintain the existing levels of convergence between UK and International FRSs. The following standards are affected:
- FRS 20, Share-based Payments
- FRS 26, Financial Instruments: Recognition and Measurement
- UITF 42, Reassessment of Embedded Derivatives
- UITF 46, Hedges of a Net Investment in a Foreign Operation
- FRS 11, Impairment of Fixed Assets and Goodwill, where the disclosure requirements have been strengthened.
Details of the changes made can be found here.
Audit Inspection Unit findings
If you found last month's published reports on the Audit Inspection Unit's findings for 2008/9 of interest then you may also be interested in the findings on four further firms inspected in 2008/9, along with an overview of the findings.
The findings on the individual firms inspected can be found here. The overview report can be found here.
The Pensions Regulator - Updated Code of Practice 7
The Pensions Regulator (TPR) has published the second issue of Code of Practice 7, Trustee Knowledge and Understanding. This code sets minimum requirements for trustees in order to help ensure that pension schemes are run effectively. The learning requirements set out in the code have been updated. The key changes are:
- in order to know the essential elements of the scheme's trust documentation, trustees will be required to read it all thoroughly;
- it is more explicit that TPR expects trustees to use its 'Trustee Toolkit' unless they can find an alternative learning programme.
The guidance supporting the code has also been subject to a review. The most significant change is that there is a reduced requirement on trustees of small (12-99 members) fully insured DC schemes.
A copy of the updated Code can be accessed here.
Tax Issues
Advisory fuel rates from 1 December 2009
These rates apply to all journeys on or after 1 December 2009. After discussions with trade bodies, the month's notice previously given has been withdrawn for this change.
Employers are not obliged to reimburse their employees for business fuel at these rates as long as they do not exceed them overall. Employers making or collecting payments at the superseded rate because they have not been able to change their systems in time may use their judgement on whether to make or require a second payment in respect of the same period in order to apply the new rate from its effective date.
However, employers should note that under the normal rules, employees are only able to avoid the car fuel benefit charge if the amount they repay in respect of private fuel at least equals the amounts based on the rates as published.
http://www.hmrc.gov.uk/cars/advisory_fuel_current.htm
Practical help for people affected by flooding
HMRC have opened a special helpline for anyone affected by the recent floods on 0845 3000.
New Year Offshore Extension
HMRC is giving taxpayers with offshore investments more time to come forward under the New Disclosure Opportunity (NDO). The registration deadline has been moved from 30 November to 4 January 2010 as some banks need more time to contact their offshore customers.
Change to handling of agent authorisation form 64-8
With effect from 1 December 2009, 64-8s must include the national insurance number and Unique Taxpayer Reference. The CIOT have also issued an alert which can be read by clicking here.
http://www.hmrc.gov.uk/news/news-011209.htm
Important VAT changes ahead?
The 1 January 2010 marks an important date for VAT, with a series of fundamental changes to the VAT system being implemented.
If you would like to read more about these changes and other developments please click here or, for more advice, contact IVC direct.
Office Gossip and Idle Chat!
£15,571 generously donated to charity by our totalSOLUTION subscribers and training group members
Last year we introduced the creation and distribution of Christmas eCards for all firms using our totalSOLUTION website service. This year we opened the offer up to training group members too. There was no additional charge for the service but there was an option to make a donation to charity so this could be included on the eCards. The great news is that an amazing £15, 571 was generously donated to a variety of national and local charities.
Opening hours
Our office will be closed from midday on Wednesday 23 December until 8.45 on Monday 4 January 2010.
