Tuesday 30 June 2009
There was a rumour flying around last week that the pensions anti-forestalling limit of £20,000 imposed in the Budget was being increased to £50,000. It is true that some amendments to the Finance Bill were tabled by MPs but those amendments didn’t get to the voting stage of the proceedings and were withdrawn. Earlier this month, we prepared a client letter on the changes to the tax regime for individuals. The letter covered pensions and included a technical note that could also be used as an appendix to the letter. Following the release of a publication on 18 June 2009 (the instigator of the rumour perhaps?), we received a few calls asking us if the details were still correct. After investigation we believe the clause and schedule were not amended.
In our October 2008 edition of Vision, our quarterly technical update, we examined the new Companies Act requirements with regard to auditor cessation. Since then we’ve had a number of technical queries on the key issues coming out of the new guidance. The ICAEW have already issued five versions of their notes on Auditor Cessation Statements and so matters are becoming clearer. Our technical team has been taking a deeper look in to some common practical queries and prepared a summary that you will find under Audit and Accountancy Issues below.
Finally if you would like the newswire to be sent to other colleagues in your office you only have to ask and we’ll add them to the mailing list.
Nicola Hurley
Director
nicola.hurley@mercia-group.co.uk
Specialist CPD courses - autumn programme now available
We have just finalised our specialist course programme for autumn 2009. As usual the programme has been planned in response to what is happening in the professional environment to provide you with a selection of highly topical and specialist courses, which are not usually found in our local CPD course programmes.
The topics covered include HMRC Powers and Penalties - The New Regime, Money Laundering Update, Company Law Update and Solicitors' Accounts Rule Update. Printed details of the full programme will be circulated shortly but if you would like to download a copy now, please click here
If you have any suggestions for courses you would like us to consider when we plan the next programme please email liz.coates@mercia-group.co.uk
Technical Queries Support - are you registered?
We have recently taken a few calls from clients with technical queries. Unfortunately due to money laundering regulations we are unable to answer the queries unless you have previously registered with us. As it is free to register and you only pay for the advice you need as and when you need it, why not register your firm now?
You can found out more and register online at www.mercia-group.co.uk/technical_support/options.htm
Audit and Accountancy Issues
Going concern disclosures
Over recent months the FRC have issued a variety of guidance aimed at helping the directors of both listed and smaller companies with their assessment of going concern.
At the end of May 2009 they issued an exposure draft of updated guidance to assist directors in evaluating the nature and extent of disclosure.
Illustrative examples are provided for a variety of scenarios and the intention is that when finalised, this will replace the original guidance issued back in 1994.
New FRS for Heritage Assets
The ASB have issued FRS 30 ‘Heritage Assets’ which introduces significant new disclosure requirements for reporting the content and value of collections held by museums and art galleries. This marks the culmination of the long standing project on heritage assets which started back in 2006!
The standard covers heritage assets that are kept principally for their contribution to knowledge and culture, regardless of whether these assets are reported in the balance sheet. New disclosures will provide information about an entity’s total holding of heritage assets and its stewardship of these assets. Illustrative examples of the disclosure are provided to help with implementation.
FRS 30 applies for accounting periods beginning on or after 1 April 2010 although earlier adoption is encouraged.
ASB amendments for Companies Act Changes
FRS 2 ‘Accounting for subsidiary undertakings’, FRS 6 ‘Acquisitions and Mergers’ and FRS 28 ‘Corresponding amounts’ have all been amended by the ASB. The amendments focus solely on updating the references in the FRSs to refer to Companies Act 2006. The amendments take effect for accounting periods beginning on or after 6 April 2008 or when the provisions of the Act/ and or the Regulations are applied to other entities (eg limited liability partnerships) if later.
The new Companies Act requirements with regard to auditor cessation
As mentioned in our introduction, in our October 2008 edition of Vision, our quarterly technical update, we examined the new Companies Act requirements with regard to auditor cessation. The ICAEW have already issued five versions of their own notes on Auditor Cessation Statements and so things are becoming clearer and our technical team has summarised the position - click here to read their summary.
Tax Issues
Changes to the advisory fuel rates from 1 July 2009
The advisory fuel rates have been changed with effect for all journeys undertaken on or after 1 July 2009.
| Engine size | Petrol | Diesel | LPG |
| 1400cc or less | 10p (10p) | 10p (11p) | 7p (7p) |
| 1401cc - 2000cc | 12p (12p) | 10p (11p) | 9p (9p) |
| Over 2000cc | 18p (17p) | 13p (14p) | 12p (12p) |
For more information, click here.
Equitable liability concession
HMRC have issued a statement about the withdrawal of the concession 'equitable liability'. Click here to view the statement.
Guidance on dealing with historic VAT claims
In 1996 and 1997, the government introduced a three-year limitation period for repayment claims for overpaid VAT, the correction of errors and late claims to input tax. This guidance sets out how to deal with these claims.
New version of Code of Practice 9
Code of Practice 9 has been updated to take account of the new appeals process and penalty regime that came into force on 1 April 2009.
And finally...
Just in case you missed it in our introduction above, there was a rumour flying around last week that the pensions anti-forestalling limit of £20,000 imposed in the Budget was being increased to £50,000. It is true that some amendments to the Finance Bill were tabled by MPs but those amendments didn’t get to the voting stage of the proceedings and were withdrawn.
More VAT news
Cross-border VAT changes 2010 - are you ready?
Radical changes have been announced to the way VAT is to be accounted for on supplies to and from overseas businesses. If you or your clients are involved in supplying or receiving goods and services to and from overseas businesses, you will need to make fundamental changes to your current VAT accounting and reporting processes in order to be ready for the implementation of these changes on 1 January 2010.
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 - Wednesday 22 July 2009
You may (or may not) recall that we hold an annual communications day for the whole of the Mercia team. We use the day to share results for 2008/09 and plans for 2009/10, followed by a few ‘fun’ activities that usually create moments to remember (or forget for some individuals) and keep the office gossip machine well oiled for a few weeks following! Whilst we are staying local this year we will all be away from the office for some of the day. If you need to contact us on that day there will be phone cover and we will return any urgent calls.
Mercia’s long service lunch
Another annual event is the long service lunch for all team members who have been with us for 10 years or more. 1998/9 must have been a good period for recruiting as this year there will be quite a few new faces joining us for the first time. Invitations have been extended to 24 but not all will be able to join us due to holiday commitments and sabbaticals!
