Thursday 29 July 2010
In the summer months historically we see more of the lecturing team in the office and although it's good to see them, the car park gets full and we have to fight for spaces. With three Finance Acts on the cards for this year and the introduction of Clarified ISAs both the A&A and Tax Teams are extremely busy. We know they are in the office, as the seasonal car parking problem bears testament to this, but we haven't seen many of them as they rarely venture out for air. For once I think they are all silently looking forward to the hectic autumn lecturing schedules to get a break!
We did ask the Tax Team if they had any comments re the FHL and Pensions consultation documents that were released earlier this week but didn't receive a response that could be published! Needless to say we will be courting opinion to include in next month's newswire so if you haven't time to read the detail we'll make sure you have a summary.
Did any of you see Mark Morton quoted in the Sunday press? Further to his article on HMRC and access to private bank accounts in the June newswire, Mark was contacted by a journalist from the national press. You can find an update in tax issues below. Mark also appeared in Taxation last week with his 'Look at the pensions anti-forestalling rules'. In case you feel disappointed you missed it we have published it again. See below to find out more.
Nicola Hurley
Director
nicola.hurley@mercia-group.co.uk
Farming Conference 2010
This year's farming conference covers practical VAT issues, Renewable energy from the land, Topical tax round up, FHLs, Stock valuations, Outlook for farm profitability and Share valuations in farming companies. It will be held on:
- Thursday 21 October 2010 - Castle Donington
- Thursday 18 November 2010 - Huntingdon
A printed circular will be despatch soon or to download a copy click here. You can also enrol by email at enrolments@mercia-group.co.uk or online at http://bookings.mercia-group.co.uk/bookingindex.php.
Acting in Niche Areas - Specialist Courses
If you act for FSA clients, general insurance and mortgage brokers, solicitors, housing associations, dentists, LLPs, pension schemes or group companies you'll find a worthwhile course in our autumn specialist course programme.
Courses cost from £85 with venues nationwide. A printed copy of the programme should already be with your firm. Alternatively you can download a copy here or email liz.coates@mercia-group.co.uk and she will organise a copy to be sent to you. You can book your places by email at enrolments@mercia-group.co.uk or online at http://bookings.mercia-group.co.uk/bookingindex.php.
Audit and Accountancy Issues
Regulation round up
The last month has seen our regulators publish a number of reports, along with both new and additional guidance:
Accounting Standards Board
The future of UK GAAP
You may recall from previous newswires that the ASB launched a consultation in 2009 to consider the future of UK GAAP, in which a three tiered approach was proposed. The consultation process continues to move forward and earlier in July a public meeting was held in which the ASB's tentative decisions in its redeliberations of its Policy Proposal issued in August 2009 were outlined. The next steps include developing and drafting an exposure draft (FRED) for consultation. The FRED will include an impact assessment and at this stage, the ASB is issuing a request for responses to help in the development of this.
An update on this consultation can be found on the ASB's website.
UITF 47 Extinguishing Financial Liabilities with Equity has also been published. It applies to entities preparing their financial statements in accordance with UK accounting standards and applying FRS 26: Financial Instruments: Recognition and Measurement.
Auditing Practices Board
- A consultation draft of a revision to Practice Note 25, Attendance at Stocktaking has been published, dealing with the new ISAs (UK and Ireland) which are effective for audits of periods ending on or after 15 December 2010.
- Stakeholder feedback has also been published following the APB's October 2009 consultation on whether there should be a prohibition on auditors providing non-audit services to the entities that they audit. At the same time, the FRC has published updated guidance to audit committees on determining whether a company's auditor should be permitted to provide particular non-audit services, for consultation. The APB is proposing to make changes to its Ethical Standards and details of these, along with the feedback and consultation can be found here.
Professional Oversight Board's (POB)
The POB has published three annual reports:
- Report to the Secretary of State for Business, Innovation and Skills for the year to 31 March 2010. The report contains the usual summary of results of the monitoring of the audit profession. We will be covering the key findings of the report in our autumn audit update courses.
- Audit Inspection Unit 2009/10 Annual Report for the year to 31 March 2010. The Report provides an overview of the activities and findings of the AIU, which reviews the quality of statutory audits of listed and other major public interest entities that fall within its scope. Individual reports on the major audit firms reviewed by the AIU will begin to be published in September.
- Key Facts and Trends in the Accountancy Profession, which provides statistical information on the membership of the six Chartered Accountancy Bodies, plus two others as at 31 December 2009.
Tax Issues
HMRC follow up
Further to Mark Morton's article on HMRC and access to private bank accounts in the June newswire, Mark was contacted by a journalist from Sunday Mail, which subsequently published an article on the same matter, quoting Mark.
As part of the journalist's investigations, he contacted HMRC Press Office about the disappearance of CH223430 and received the following response:
'There have been no amendments to the guidance on asking for private bank statements. Indeed, EM2221, which contains the same information as CH223430, is still available on the internet. It is intended that the contents of CH223430 will be reinstated in due course.'
A strange old world indeed!
A look at the pensions anti-forestalling rules
Mark Morton has written an article that looks in detail at some of the processes and calculations involved in the pensions anti-forestalling rules for 2009/10 and 2010/11. The legislation to deal with this is somewhat tortuous and is dependent upon some complex definitions. The complexity has been increased by a change in the starting point for the rules which apply from 9 December 2009. To read more click here.
Employer provided company cars
From April 2009 employers no longer have to submit Form P46 (Car) for replacement company car changes. From April 2010 Forms P46 (Car) relating to replacement company car changes are no longer accepted.
From April 2011 employers will be able to notify HMRC electronically of any replacement car changes. To read the full statement, please click here.
Revised guidance on 'fit and proper persons test' for charities
The guidance on the fit and proper persons test for managers of charities has been revised and replaces the original version published in April 2010. It incorporates significant revisions, in particular on which managers a charity should notify HMRC about. To read the full guidance, please click here.
Revised online filing system for Trust and Estate Tax Returns
A revised online filing system for Trust and Estate Tax Returns was introduced on 1 July 2010. To read more please click here.
HMRC and DWP trial
HMRC and Department for Work and Pensions (DWP) are working together to offer customers the chance to participate in a voluntary scheme in which they can agree to have deductions taken from their state benefits and use those deductions to reduce their tax arrears or tax credit overpayments.
As part of this project a number of customers will be contacted by letter and invited to take part. Customers will not be contacted by telephone to take part in the scheme. The scheme is entirely voluntary. To read more please click here.
A better partial exemption method?
Most partial exemption methods are devised to deal with historic circumstances or those existing at that time. Few are able to deal with current or future changes in the business structure. We therefore recommend that any partial exemption method over three years old should be reviewed to ensure that it is still relevant to the business and provides the maximum recovery possible. For further information please contact Jim Taylor 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!
The Mercia Team Communications Day - Thursday 22 July 2010
The morning session on financial performance and changes in the business was followed by an afternoon of fun. This year's theme was 'Wacky Races' with six teams performing 9 challenges to win points. There were a few spot prizes to be won, Penelope Pitstop key rings for individuals who shined during the day and Dick Dastardly key rings for individuals who tried to cheat! As expected there were more Dastardly key rings awarded than Penelope ones with one member of the team receiving two! The losing team won a booby prize of Mutley key rings for being 'mutts' but we are sworn to secrecy as to which one of our tax lecturers was a 'Mutt'!
Have your say...
Whilst looking at the Revenue website earlier this month we came upon a link to http://yourfreedom.hmg.gov.uk/ - a website launched by the government to collate ideas on the laws and regulations the public think we should get rid of. There are some very interesting comments and ideas under the tax tag and you may want to add your own?
Sabbatical Update
Three lucky members of the team are enjoying a three month sabbatical over the summer months; Andrew Paul, Andrew Guntert and Shan Hughes. We've heard lots from Andrew P via his blog as he attempts to visit as many countries as possible over three months (including flying back from Australia for just 3 days for his girlfriend's graduation day). Andrew G has been busy visiting all the galleries and museums he never finds the time to go to before travelling abroad. Shan was hoping to explore her love of drama and spend more time being a mum. We've yet to hear if she has ticked off the things on her wish list but we're sure she is enjoying the break.
