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Friday 27 February 2009

As this year's Budget will take place on 22 April, a little later than the norm, we have been given plenty of notice to make relevant plans, so can we relax?

The majority of the 2009/10 tax rates have already been announced so payroll departments should function without a hiccup but 16 days can be a long time in the tax world! Hopefully there won't be any announcements in the Budget that may have an adverse effect on a transaction made between 6 April and 21 April. We can only wait and see!

Here at Mercia it would be fair to say we are unable to relax as we are now waiting for a another key date to be announced. April is always a busy lecturing month and it is also the time the tax team write the course notes following the publication of the Finance Bill. Usually this is published three weeks after the Budget but, as nothing is usual this year, our tax and diary planning teams are hoping it will be sooner than three weeks so we can still digest the Bill, write the notes and deliver the courses at the time you need them.

The good news is a date for your diaries, as we can now confirm our Budget webinar will take place on Tuesday 28 April at 10.00am. If you have any questions about our new Webinars you'll find out more at www.mercia-group.co.uk/webinars or you can contact Kay Sanders on 0116 258 1200.

Nicola Hurley
Director
nicola.hurley@mercia-group.co.uk

Budget 2009 - What will you be telling your clients?

The Budget provides you with an excellent opportunity to market your practice and we have a range of products and services that will help you make the most of it. Our in house design team will work with you to ensure that your products complement your other marketing material.

New online quote service now available - You can visit our website for an online quote any time of day or night. This can then be printed out and saved or converted to an order if you decide to buy. Rest assured, simply requesting a quote will not result in us contacting you unless you order or contact us!

To place an order or to obtain an online quote either click here or telephone the Marketing Support Team on 0116 258 1242.

Solicitors Conference

We have just finalised the details of our 2009 Solicitors Conferences to be held on 4 June 2009 in London and 19 May 2009 in the East Midlands.

This year's conference will cover:

The full day conference costs £250 (including lunch) plus VAT per person, £50 for National Members and 25% discount for local members.

Further details can be found here. To enrol online, please click here.

Audit and Accountancy Issues

A new Practice Note on Credit Unions

The APB has published Practice Note (PN) 27 - The Audit of Credit Unions in the United Kingdom. The usual commentary is included, providing guidance to auditors on the application of ISAs (UK and Ireland) to the audit of credit unions in the United Kingdom. Guidance is also provided on the various legal and regulatory requirements relating to credit unions, both in Great Britain and in Northern Ireland.

You can find a copy of the PN here.

Paid cheques guidance from the Audit & Assurance Faculty

The Audit & Assurance Faculty of the ICAEW has issued Technical Release 01/09 - Paid Cheques, which provides guidance for those who need to examine paid cheques, for example, on a Solicitors'' Accounts Rules assignment. This guidance replaces that last issued in FRAG 27/93.

A copy of Tech 01/09 can be found here.

Bank reports for audit purposes

Following the changes in procedures for obtaining bank reports for audit purposes, as set out in Practice Note 16, the British Bankers Association has issued a leaflet summarising the changes. You can access a copy here.

New templates for requesting bank reports were included in the 01/09 update to our audit manual.

Technical manuals news

Subscribers to our Money Laundering Compliance Manual will shortly be receiving an update to their manual. Along with the updated manual, a CD copy of our latest money laundering update course will also be included.

This version of the manual also includes two newsletters that can be used to help with ongoing training in this area. The first is aimed at new starters to help introduce them to the concepts involved and the second is aimed at existing staff to help provide refresher training.

Remember details of the latest versions of our manual can be found on our website.

Tax Issues

Beneficial loans: the official rate of interest

The official rate of interest will change to 4.75% from 1 March 2009. For details click here.

Extension of clearances HMRC provide to business owners

HMRC have announced that the clearances service for business owners in relation to Inheritance Tax Business Property Relief will be continued and will include an extension to the scope of the service. For more information, please click here.

Goodwill in Trade Related Properties - Practice Note

In the past HMRC had taken the view that it was unlikely that there would be 'free goodwill' of any significant value in businesses carried out from trade related properties (e.g. public houses, hotels, restaurants, care homes, etc).

HMRC now acknowledge that when a business is sold as a going concern, the sale price will reflect the combined value of the tangible assets together with the benefit of other business assets such as any contracts with customers, staff and suppliers, etc and that substantial value can be realised by combining the tangible and other business assets together for sale as a going concern. However, this enhanced value may be reduced if the assets are split and sold separately.

The Practice Note explains the issues in more detail and sets out how HMRC and the Valuation Office Agency consider one should go about apportioning the price paid for a business as a going concern between goodwill and other assets included in the sale. For further details, click here.

Fleming Claims Deadline - 31 March 2009

All Fleming Claims must be submitted to HMRC by 31 March 2009. You should ensure that each claim includes all the appropriate information as required by HMRC. Incomplete claims could be refused by HMRC, particularly as it takes a number of months for the claim to reach a claims processor.

If you would prefer IVC to check any of your claims to ensure they meet HMRC's standards, please contact Sally Duke or Liam Caton.

More VAT news

If you would like to read more about recent tax investigation and VAT developments, please click here for this month's IVC news round-up.

Office Gossip and Idle Chat!

The Mercia audit manual is truly global, going to India, Malta and Cyprus to name a few of its destinations, because of this the training is also required slightly further a field...

Following a training session in Luxembourg, lecturer David Gallagher returned with an assessment form which included the comment, "Very interesting and useful examples given (following experience). David is very sympathetic and pedagogic." With English not being the first language of the delegates, David's double-checked the dictionary for the literal interpretation of the last word and is still trying to convince himself that it was meant as a compliment!

And Finally...

You may recall a few months ago that some of our clients were being contacted by us asking for information about their firm / employees. These turned out to be fictitious employees and we forewarned you that we were not making any such calls. It seems this has started once more so if you do receive any calls please let us know so we can investigate further.