Friday, 26 February 2010
As soon as the self assessment deadline passed and your thoughts turned to other matters we started to receive requests asking if we had produced information on PAYE online filing and penalties that could be passed on to your clients. In our November newswire we gave away a FREE client letter about online filing covering: in-year and end of year PAYE forms for employers; VAT; and corporation tax. If you did miss it, because your mind was on other things, we've included a link to it again in Tax Issues below.
Staying with client letters, in January we issued a letter regarding HMRC's 'attack on doctors' with a promise to issue a second letter on dentists when the details were released. Following an enquiry from a client chasing the letter we made a call to HMRC for an update. We were told that dentists were included in the THP and they confirmed that discussions were ongoing with the relevant professional bodies. When asked if new paperwork should be expected the response was to use the existing form and cross out reference to the GMC registration number and replace it with any relevant dentists' registration number. Will it be the same guidance when (if) they target solicitors and accountants? Only time will tell! And talking of telling - when will we be told the date of the 2010 Budget?!
Nicola Hurley
Director
nicola.hurley@mercia-group.co.uk
Advising the Elderly - one day conference
Advising the elderly client is an increasing area of practice for many firms, and the growth of this sector is likely to continue - partly due to demographic factors, and partly because of the complexity of the laws surrounding this area. Our one day conference will look into a wide range of practical issues which will enable you to offer the best possible advice and service to your elderly clients.
The conference will be held on Wednesday 21 April 2010 at the Thistle Hotel, Castle Donington. For further details click here.
Budget 2010 - 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 Budget summary and tax card products and services that will help you make the most of it.
To find out more, request FREE printed samples or obtain an online quote visit http://www.mercia-group.co.uk/budget or call our Marketing Support Team on 0116 258 1242.
Audit and Accountancy Issues
Revised 'Bannerman' disclaimer wording
Earlier this month we sent out an email alert to our Audit Manual and Charities, LLP and Registered Social Landlords Specialist Assignment Manual subscribers, letting them know that the Audit & Assurance Faculty of the ICAEW has issued revised 'Bannerman' clarification language for Companies Act 2006 audit reports, and therefore that relevant audit reports and engagement letters in their manuals should be updated in accordance with this. The revision is effective from January 2010.
What changed?
The legislative reference in the first line of the wording has been changed to:
- 'Chapter 3 of Part 16 of the Companies Act 2006'
It previously referred to:
- 'Sections 495 and 496 of the Companies Act 2006'
If it is your firm's policy to include this disclaimer click here to see a copy of the Audit & Assurance Faculty's announcement.
Other audit news
February has seen the Auditing Practices Board (APB) issue:
- Bulletin 2010/1 - XBRL Tagging of Information in Audited Financial Statements - Guidance for Auditors
The Bulletin provides background information on the requirement for XBRL tagging of UK statutory financial statements in 2011 and on the application of APB's Ethical Standards for Auditors to non-audit services in relation to this.
- Practice Note 15 (Ireland) - The Audit of Occupational Pension Schemes in Ireland (Revised)
The Practice Note has been updated for changes in the regulatory environment for pensions in Ireland including the Occupational Pensions Schemes (Disclosure of Information) Regulations 2006.
Copies of the Bulletin and the Practice Note can be found on the APB's website.
The future of UK GAAP
You may recall, as featured in our August 2009 newswire, that last year the Accounting Standard Board (ASB) launched a consultation that considered the future of UK GAAP, in which a three tiered approach was proposed:
- Tier 1 - publicly accountable entities would apply IFRS as adopted by the EU ('EU-adopted' IFRS).
- Tier 2 - all other UK entities other than those who can apply the FRSSE could apply the IFRS for SMEs.
- Tier 3 - small entities could choose to continue to apply the FRSSE.
Entities within Tier 2 and Tier 3 would have the option of using EU-adopted IFRS if they wished, and those in Tier 3 would have the option of using the IFRS for SMEs.
The consultation period ended on 1 February 2010 and the responses received have now been published on the ASB's website. After further public consultation, it is the ASB's intention to publish an exposure draft outlining the its recommendations for the Future of UK GAAP.
Technical manuals update
Updates to our Clubs and Friendly and Industrial and Provident Societies Specialist Assignment Manuals were issued earlier this month and updates to our Money Laundering and Practice Assurance Compliance Manuals will be issued in March 2010.
Remember that you check that you have the latest versions of our manuals here.
Tax Issues
FREE client letter - Online Filing
As mentioned in our introduction, in November we produced a general letter regarding the significant changes to online filing for PAYE, VAT and corporation tax. It is available for you to download with our compliments here.
Employer supported childcare
On 3 December 2009 the government announced changes to employer supported childcare that will affect new joiners from 6 April 2011. HMRC have now issued a technical note providing guidance on those changes. To read a summary from our course notes, please click here and to read more on the HMRC website click here.
Residence and Domicile: foreign currency bank accounts
HMRC have issued new guidance on the treatment of foreign currency bank accounts, including the extension of Statement of Practice 10/84 and a de minimis for foreign exchange calculations. To read more click here.
Gaines Cooper loses judicial review
The Court of Appeal has handed down its decision in the Gaines Cooper case on residence and his losing streak has continued. To read the full judgment, please click here.
HMRC publishes its revised policy on the Lennartz mechanism.
The Lennartz mechanism allows VAT incurred on the purchase, construction or refurbishment of buildings to be recovered where the buildings are put to both taxable business and non-business use. An output tax charge or repayment of VAT is then applied over the next ten years (based on non-business use of the building). Lennartz can provide a significant cash flow benefit.
From 22 January 2010, Lennartz accounting will not be available for property and construction put to non-business use. If you are considering a new building project you should speak to is immediately. HMRC have advised us that some new projects could still qualify. We could help you to obtain Lennartz approval from HMRC.
For existing/completed projects - If you already use Lennartz you can either continue to monitor the VAT you recovered in accordance with your Lennartz agreement or undo your claim and repay any VAT benefit to HMRC. Either way you will have to notify HMRC what you intend to do.
If you would like further information, please contact a member of the VAT services team at IVC on 0870 264 0080.
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!
Baby news
Congratulations to David Gallagher and his wife Sarah as Shem and Sylvia are to have a new brother or sister. The new addition to the Gallagher family is expected to arrive in September!
...and congratulations to Jeremy Williams and his wife Jane as they are also expecting their first born is due in late August. Is someone putting something in the A&A team's coffee...?
Will you be watching...
Do you recall a TV programme called The Hotel Inspector? If you missed out HMRC have sponsored, for a fee of £370k, a business related spin off series; The Business Inspector. HMRC's press release alludes to the fact it will be value for money as they are keen to increase awareness for the need for good record keeping. For those who enjoy 'fly on the wall' programmes you'll be delighted to hear the production company is the same one who produced Ramsey's Kitchen Nightmares! We wonder if presenter Hilary Devey (Secret Millionaire participant) will have a similar approach to that of Gordon. If like us you are intrigued, make a date for your diary to watch the first episode on 17 March at 8.00pm on channel 5.
Russian invasion
On the first Saturday in February we received over 50 free marketing support sample requests from our website - all of them from Russia! As they all came through within minutes of one another our first thoughts were we'd been hit by a new 'bug' (even though we'd recently installed new anti virus software) but thankfully it seems that is not the case. Although the requests continued to arrive at one per day for the next week or so they have now stopped. We can only think that a school or university had set a project which required samples? They will probably be disappointed as we didn't send them!
