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Thursday 30 July 2009

Do you know something we don't know? Whenever we see a peak in demand for one of our products or services we usually know the reason why. However, a recent increase in website orders for our technical manuals has left us assuming it must be down to the impact of the Companies Act. With audits for April year ends now being completed, you are seeing changes to everything from engagement letters to audit reports. Our audit manual was fully updated for these changes earlier in the year but it's taken until the summer to see a peak in interest! If it's not implementing the Companies Act then maybe it is interest in our plans for the next major development, the Clarity ISAs. Whilst we have already started work on this, don't worry, you have until December 2010 year ends to implement their requirements. In the meantime, audit manual and audit exemption SAM subscribers should read the news included under Audit and Accountancy Issues below in respect of an update that was issued earlier this week.

As the Finance Act received Royal Assent on 21 July 2009 you would think the tax team would be busy updating course notes for autumn courses. Those not taking a well earned summer holiday are doing just that, except for Mr Morton! It may come as no surprise to many of you that the new HMRC powers and penalties regime have led (or driven?) him to put pen to paper and you can read his latest opinion piece within the Tax Issues section below.

Finally we hope you haven’t been getting too wet in recent weeks. There is a rumour that summer will return in September, just in time for the start of our courses!

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

Farming Conference

Following on from the success of our Farming conference last year this year’s conference will be held in two locations - The Hilton Hotel, Castle Donington on 19 October 2009 and at the Bedford Lodge Hotel, Newmarket on 16 November 2009.

The topics covered include:

For further details click here or enrol online by clicking here.

New Webinar Programme

After the launch of our new webinars earlier this year we have extended the programme through to the end of the year. Webinars are live and interactive seminars which are streamed directly to your desktop via the internet, allowing you to obtain valuable training from the comfort of your own home or office, whilst maximising your working time. The one hour webinars cost £75 per participant with a 25% discount for Local and National Members.

The new Autumn programme includes a wide range of topics from Audit Manual Updates to UK Tax Residence: Its meaning and implications.

For further details and to download the programme click here or to book online click here.

Audit and Accountancy Issues

Exciting Developments for Our Technical Manuals Subscribers

Earlier this week we issued the first downloadable update to our Audit Manual. Instant access to your technical manual subscriptions is now possible and lost CDs are to be a thing of the past!

You may already be familiar with the range of our services available online as you have been able to book courses via our website for some time now. However, if you are new to these and would like to find out more about what’s on offer please see our user guide.

Important News for Mercia Audit Manual and Audit Exemption SAM Subscribers

The contact at your firm who deals with technical manuals will have received an important email from us.

This email notification simply replaced the letter and CD that have historically been sent out. Once the manuals have been accessed via our website they can be installed on to individual PCs or your firm’s network in the same way as they were from the CD. Those using the manuals on a day to day basis do not need internet access to generate documentation. The ‘what’s changed’ letter can still be forwarded to the whole team to ensure that everyone using the documentation understands what has changed and why it has.

The correct contact details are now more important than ever and if you would like to make any changes or check to see who we are currently emailing then please email Sarah Moore at sarah.moore@mercia-group.co.uk or call her on 0116 258 1200.

Other news

It has been a fairly quiet month for technical news, although we have seen the publication of the Professional Oversight Board’s (POB) Report to the Secretary of State for Business, Innovation and Skills. The report contains the usual summary of results of the monitoring of the audit profession. If you are interested in these you can access a copy of the report on the POB’s website. We will be covering the key findings of the report in our autumn audit update courses.

You might also be interested to hear of proposed amendments to UITF 42 and FRS 26 in respect of Embedded Derivatives.

Tax Issues

The new powers and penalties regime

This is now starting to take effect. The real issue will be how HMRC handle the new regime. It appears that the gloves are off - comply or else! If you would like to read more about a real life case, please click here.

Pension sharing on divorce

HMRC have published revised information about pension sharing on divorce following abolition of the safeguarded rights rules. To view click here.

Pensions: Anti-forestalling Questions and Answers

HMRC have also published some additional questions and answers on the pensions anti-forestalling measure announced in the Budget on 22 April 2009. Click here for more information.

VAT zero rate

HMRC have published a Brief that announces a change in their interpretation of the of the legal provisions that apply the zero rate to new buildings used for a relevant charitable purpose and the withdrawal of Extra Statutory Concession (ESC) 3.29 and two related concessions. VAT Information Sheet 08/09 provides further detail.

Online Services Events for Agents - feedback to topics raised

Since May 2007 HMRC have run more than 220 free events for agents, to share our latest plans for online tax services and to help them get the most out of using our online services.

To view responses to questions raised at events, along with some additional information, see the links. HMRC will continue to update this material regularly.

Rank's £59m tax refund faces Appeal Court challenge

Rank Group’s £59m tax rebate from the UK authorities is being challenged in the Court of Appeal. As previously reported in our June 2009 newsletter, Rank Group’s claim for overpaid VAT of £59m was upheld last month by the High Court.

However, HMRC was given until 29 June to appeal that decision to the Court of Appeal. No date has yet been set for the hearing.

This will be the second time HMRC have attempted to overturn the decision requiring them to repay VAT that Rank paid on games of interval bingo and gaming machines in its Mecca Bingo clubs over a five-year period from January 2003.

HMRC failed to overturn the original decision of the VAT & Duties Tribunal in May and August last year after the Tribunal ruled the UK’s treatment of these supplies in Rank’s clubs was inconsistent with European Union rules on fiscal neutrality.

The Court of Appeal hearing is not likely to be heard until the early part of 2010.

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!

Mercia Communications Day

In last month’s newswire we mentioned that we were holding a communications day on Wednesday 22 July 2009 and promised to share any news with you. After a serious communication session outlining our financial results, targets and plans for 2009/10 we set a few team fun challenges. One of these was to rewrite the lyrics of a well known song with a Mercia theme. Ten bonus points were on offer to each team who performed their song to the rest of the team. We are delighted to say all six teams entered into the spirit of the occasion and all were recorded for prosperity. However, the Green Party won the round with the following song sung to the tune of ‘Always look on the bright side of life’. We thought we would share...

The Green Party Lyrics
By Jeremy Williams

New accounts staff can feel sad;
Double-entry drives them mad.
These accruals and prepayments give them gip.
If their shouting makes them hoarse,
Send them on a Mercia course!
And our bookkeeping will help them get a grip.

Credits go on the right side of the line (whistle)
If your debits go on the other side you’ll be fine! (whistle).

Use a rule to draw accounts,
Enter all the right amounts,
Do a balance sheet to check your figures cast.
You will never know you’re born
Till you’ve filled out an assessment form
And you’ll find our helpful lessons really last.

Credits go on the right side of the line (whistle)
If your debits go on the other side you’ll be fine! (whistle).

If your bad and doubtful debts
Make you want to hedge your bets;
If disposing of fixed assets makes you scream.
Let our lectures lead the way
And before the end, you’ll say;
"Mercia’s courses go beyond my wildest dreams!"

Credits go on the right side of the line (whistle)
If your debits go on the other side you’ll be fine! (whistle).

Sabbatical Update from John Sharkey

John has found time in his hectic schedule to touch base with us and his family have already visited Denver, the Grand Canyon, Las Vegas, Los Angeles and Vancouver. They are currently travelling overland from Vancouver back to Los Angeles where they will be flying onto Guatemala. Then it's from Guatemala to Costa Rica returning to the UK on 31 August and John is back to work on Thursday 3 September! I'm sure we'll have more news and stories to share on his return.

New Baby News

Helen James (A&A Lecturer) has had a baby, Niall James was born Monday 20 July, weighing 7lb 12oz. Mum and baby are doing well!