Judging from comments made at our recent series of practice assurance courses it seems that many of you have been
busy with QAD visits or preparing for them. This no doubt accounts for the recent increase in interest in our Practice Assurance Compliance Manual, as it
seems not everyone is prepared for a visit. Some of those on the courses have already had a visit but were looking for help in translating
the report they received - not always easy! If you didn’t attend any of the courses but are having practice assurance issues a summary of the support we can
provide is included below.
Finally, on behalf on Jane and John, thank you for all the messages we have received wishing them (and the rest of us) well in their new roles.
Nicola Hurley
Director
nicola.hurley@mercia-group.co.uk
PS. Look out for our ‘Stop Press’ news on the Arctic Systems case under ‘Tax Issues’ below.
Specialist Courses - Autumn Programme
Our latest Specialist courses brochure for autumn 2007 has now been finalised and, subject to postal strikes, a copy should already be with you. The programme comprises of 22 courses running in September, October and November and includes, amongst others:
- Employment Related Securities
- Trusts: Where are we now?
- VAT: Dealing with Europe
- Money Laundering Update
- Introduction to SME Corporate Finance
The programme can be viewed here and the complete brochure including the course outlines can be downloaded here. If you have any questions about our specialist course programme please contact liz.coates@mercia-group.co.uk or call her on 0116 258 1200.
Practice Assurance Support
Practice Assurance Compliance Manual
Our Practice Assurance Compliance Manual focuses on the requirements of the ICAEW’s Practice Assurance Scheme. The Manual provides all the support you need including guidance on how you might comply with the standards and a wide range of supporting checklists. The subscription also includes a free copy of our Practice Assurance - A Practical Guide training course on CD. The manual costs £245 (£195 for members) plus VAT. For further details and to order online click here.
Practice Assurance Reviews
A practice assurance review is an excellent way to prepare for a QAD visit. Our experienced reviewers can visit your offices to report on your firm’s compliance with the practice assurance standards. Reviews begin with a discussion to agree upon the scope and focus of the review to suit your needs. A detailed review of the firm’s main departments or key income streams follows and a written report is provided. The report will highlight the areas of best practice at your firm as well as identify any areas that require improvement. For further details about this service click here.
QAD Report Implementation Visit
We can also help to translate your QAD report and plan appropriate actions and responses. Send us a copy of the written report and we will arrange a two hour meeting at your offices to deliver a verbal report by reference to the specific instances of matters raised on your files or procedures. For further details click here.
Audit and Accountancy Issues
Companies Act 2006
The last month has seen further information on the new Companies Act emerge:
- Consultation response
At the end of June the government issued a written statement in response to the earlier consultative document on questions related to secondary legislation. The statement outlines the government’s position on the main areas and includes:
- confirmation of unanimous support for the proposal to have a single set of accounting and reporting regulations for small companies
- an intention to draft a single set of accounting and reporting regulations for all companies other than small companies
- a requirement for medium sized, but not small companies, to disclose turnover in their abbreviated accounts
- retention of the disclosure requirements in Schedule 7 of the Companies Act 1985 in respect of employment of disabled persons and in respect of employee involvement in company matters.
A copy of the statement can be accessed here.
- Draft third commencement order
The third commencement order, which deals with the October 2007 implementation of the Companies Act 2006, was originally published in early July. However the first version was subsequently withdrawn and a second version was issued on 23 July. We’ll have more on this in next month’s newswire.
The draft Statutory Instrument can be accessed here.
- FAQs
A number of FAQs on the new Act have also been published, including:
Q: When will the new Act’s requirements on accounts/reports come into effect?
A: Generally the requirements on the form and content of accounts and reports in Part 15 of the Companies Act 2006 and new regulations to be made under it will be commenced with effect for accounts and reports for periods beginning on or after 6 April 2008. Accounts and reports for periods beginning before then will continue to be prepared in accordance with the Companies Act 1985.
However, the new business review requirements in section 417 of the Companies Act 2006 will be commenced for reports for financial years beginning on or after 1 October 2007.
The FAQs can be accessed on the DTI’s website.
In last month’s newswire we referred to the consultation on the new Money Laundering Regulations 2007, which must be implemented into UK law by mid December 2007. One issue that has caused particular concern amongst respondents is the treatment of trusts in respect of the identification and verification of the beneficial owner. This has lead the government to consult further with interested parties and to revise some of the requirements in this area. We still await the final Regulations, which should be issued later in the summer.
The Joint Money Laundering Steering Group (JMLSG) has also published its proposed amended guidance to take account of the changes to be introduced by the new Regulations. This guidance is generally used as the benchmark for identification evidence. You can access a copy of the proposed guidance here.
Specialist Assignment News
Do you subscribe to any of our Specialist Assignment Manuals? Earlier this month we sent out copies of our latest newsletter, which reviews the last 12 months activity and sets out our plans for the year to come. If you would like to see a copy click here.
Tax Issues
STOP PRESS - HMRC lose the Arctic Systems case
Just as we were about to send this newswire, the judgment in the Arctic Systems case was delivered and the taxpayer has WON!
HMRC’s reaction will be interesting to see, even though they have stated that Arctic Systems was not a test case.
We will review the judgment and reaction over the next few days so look out for news on our forthcoming client letter. In the meantime if you would like to read the full judgment, click here.
Offshore disclosure - HMRC follow up
The deadline for notifying an intention to disclose passed on the 22 June. HMRC say they have received some 70,000 disclosures by that date. They apparently hold 400,000 pieces of information, so a number of your clients may still have things to discuss!
HMRC suggest they will seek punitive penalties if they discover non-disclosure and, in some cases, prosecute. However, if a client has something to disclose there is considerable merit in meeting the November reporting deadline. It will be very difficult to sustain an argument for higher penalties if a report and payment have been made by the end of November. It is important that those discussions take place now to obtain maximum benefit.
Tax Investigation and VAT developments - news round-up
If you would like to read about recent tax investigation and VAT developments, please click here for this month’s 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 tax investigation specialists - to offer preferential rates to Mercia clients for these specialist services. Please click here for more information.
Changes to the advisory fuel rates from 1 August 2007
The advisory fuel rates are being changed with effect for all journeys undertaken on or after 1 August 2007.
Further details can be found at www.hmrc.gov.uk/cars/advisory_fuel_current.htm
Updated Tactical & Information Packages (TIPs)
The range of TIPs available on the HMRC website will gradually increase over a period of time and where possible replace the existing Business Economic Notes (BENs). New TIPs on pubs, the construction industry, and bookmakers have recently been added and the TIPs on estate agents, franchises and waste disposal and landfill sites have been updated. These can be found at www.hmrc.gov.uk/tips/index.htm
Business disruption - postal dispute
HMRC have announced that VAT returns and payments that are delayed by the postal dispute will be viewed sympathetically. There will be no liability to a surcharge where the postal strike has caused a delay.
Refund of voluntary NICs
HMRC have issued further guidance on the refund of voluntary NICs, following the Paymaster General’s announcement on 16 January 2007.
When the Pensions Bill becomes law, the number of qualifying years needed to qualify for a full basic State Pension will be reduced, from 39 years for women and 44 years for men, to 30 years for those reaching State Pension age on or after 6 April 2010.
The Paymaster General issued a statement on 16 January 2007 concerning refunds of voluntary NICs. HMRC have now provided further details about the administrative arrangements for making refunds following this statement.
HMRC will make refunds to people who apply for a refund and satisfy the following conditions:
- reach State Pension age on or after 6 April 2010;
- paid voluntary contributions on or after 25 May 2006 (the date the Pension White Paper was published) but before the Pensions Bill receives Royal Assent (expected to happen in summer 2007); and
- were not aware of the changes when they paid. This means that at the time they paid they had not received information from HMRC about the changes.
Office Gossip and Idle Chat!
Alton Towers - the Mercia day out
It rained, we got wet but we had fun and far too much to eat and drink!
Technical Team Conference
Our two-day conference is primarily a communication conference where we share financial results, plans for the next 12 months and thoughts and ideas on how we can improve our products and services. However we always have a team building exercise and this conference was no exception.
The conference was held in Stratford - home of the famous bard. With this in mind a challenge was set for each five-person team to create a presentation on one of Shakespeare’s comedies. The presentation was planned during the day but performed after dinner (and alcohol!). The style of the presentation was left up to each team to best use the talents of each team member. Well it seems we employ frustrated thespians as every team decided to perform a play! All I can tell you is that we laughed hard for an hour. It would be fun to share the photographs with you but we decided we must remain professional to the end otherwise you would never look at our lecturers again in the same light.
Phil Frost’s team won first prize with their play. If you would like to know more you will have to ask the team to share once the training season kick starts again in September.
David Gallagher - Sabbatical Update
You may recall that in May we told you about David Gallagher’s sabbatical and his plans to cycle around the UK to raise funds for The Samaritans. We are very pleased to tell you David successfully completed his tour on Sunday 15 July after cycling over 3000 miles in just six weeks. Many thanks to everyone who gave a donation or posted a message of support on his website. David is spending the rest of his sabbatical relaxing at home!
The answer to this month’s sports trivia question is the Lance Armstrong in 1999 and 40.276kph.
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Nicola Hurley
Mercia Group Ltd
Best House, Grange Business Park, Enderby Road, Whetstone, Leicester LE8 6EP.
Tel: 0116 2581200 Fax: 0116 2581250.
Email: nicola.hurley@mercia-group.co.uk Website: www.mercia-group.co.uk
Mercia Group Limited is a company registered in England and Wales with company number 1464141.
Registered Office: Paulton House, 8 Shepherdess Walk, London N1 7LB
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