Wednesday 30th November 2011
|
Due to the Autumn Statement, the majority of our Tax Team could be found in the office yesterday afternoon. By all accounts it was a
sombre affair with much of the content being speculated and debated in the media before the Chancellor was on his feet. On a more positive
note, there was the surprise announcement of a new tax break. In an attempt to free up lending to business, George Osborne announced a new
package of credit easing and a new tax break, the Seed Enterprise Investment Scheme (SEIS) from April 2012, offering 50% income tax relief
on investments. It will also offer a capital gains tax exemption on gains realised in 2012/13 and then invested through SEIS in the same
year. We'll let you know more as soon as the detail is known. To help you keep your clients informed of the key announcements, we have
produced a summary. See below for details.
The Future of UK GAAP has featured in a number of our recent newswires and has itself provided one or two surprises along the way. In
this month's newswire we bring you up to date with the latest developments, including news of another deferral in the expected
implementation date. European Commission audit reform proposals released this morning have also been subject to much debate over the past
few months. You can rest assured that whatever the final outcomes we will help you to implement the changes and advise your clients.
Nicola Hurley
Director
nicola.hurley@mercia-group.co.uk
|
|
Autumn Statement 2011 - What are you telling your clients?
After yesterday's Autumn Statement there is still the opportunity to update your clients and prospects on the recent announcements. To help you, we've
produced a concise, easy to understand summary of the announcements in a choice of digital formats.
For more information and to place an order please click here or contact the Marketing Support Team, telephone 0116 258 1242 or email
marketing.support@mercia-group.co.uk
Do you need to catch up on your CPD before the end of the year?
We have a programme of our topical three hour CPD courses available to watch online at a time to suit you. Each course includes a video of the
original live presentation, together with a copy of the notes and slides to download, and is available to view for a minimum two year period.
To ensure that you can verify your CPD there is a course questionnaire at the back of each set of notes to complete and retain.
You can purchase a 12 month subscription or individual courses. Prices start from £33 plus VAT per course and for further details of our prices
and options please click here.
Audit and Accountancy Issues
The Future of UK GAAP - update
Another month passes and news from recent meetings of the Accounting Standards Board in respect of the Future of UK GAAP has indicated significant
changes to the initial proposals made in FREDs 43, 44 and 45.
With the initial focus of the proposals having been on simplification, the resurrection of flexibility in some areas is likely to be a welcome change
for many. The problematic 'public accountability' issue will also have disappeared by the time we see the amended proposals which are now expected in the
new-year.
The effective date for any new standards has also been pushed back to 1 January 2015 allowing for interaction with the effective dates of new IFRSs.
To keep up to date with the ASB's deliberations on this subject here.
Audit reform
The European Commission audit reform draft legislation was published this morning. Though watered down from the initial proposals for public interest
entities, alongside the Competition Commission market investigation, it will still have significant implications for market concentration in this area.
Though not expected to come into play for a further three to five years, there may be wider implications for the audit profession as a whole in respect
of reporting and compliance which will no doubt be the subject of discussion at future update courses.
To see the proposals in full click here.
Money Laundering Regulations 2007 - update
The Treasury has published responses to the consultation carried out earlier this year on proposals to modify the Money Laundering Regulations 2007.
The full outcome of the consultation is to be published in the first quarter of 2012. We will know then which proposals will be taken forward. The summary
of responses can be seen here.
Ethical Standards (ESs) amendments proposed
The APB has proposed two amendments to the revised ESs. These will extend the transitional arrangement for tax services provided on a contingency fee
basis (where contracts were entered into prior to 31 December 2010) until 31 December 2014 and also provide a simplified template for communicating
information on audit and non-audit services. The comment period ends 7 December 2011 and full Consultation Document is available
here.
Going concern
The Sharman Panel of Inquiry has published its preliminary findings and recommendations relating to Going Concern and Liquidity Risks: Lessons for
Companies and Auditors. The Panel intends to issue a final version of its recommendations in February 2012 in the light of responses received and further
discussions held between now and the end of the consultation period on 31 December 2011. To see the report in full click
here.
Tax Issues
Research and Development for small companies
31 October 2011
HMRC has set up a 'Voluntary advance assurance' pilot to help small companies to make their first Research and Development claim. To read more, please
click here.
Advice on HMRC's interpretation of recent tax legislation
HMRC have published CAP1 (Clearances and Approvals) which explains how non-business customers, or customers with a query about non-business activities,
can get advice about HMRC's interpretation of recent tax law. CAP1 complements HMRC's clearance service for businesses which has been in place since
April 2008. To read more, please click here.
New focus on scrap dealers
A new taskforce targeting scrap metal dealers has been launched by HMRC.
The taskforce will pursue scrap metal dealers in Scotland and has been set up to tackle tax evasion where the risk is high. It is one of five taskforces
that have been set up to tackle tax evasion in different areas of the country. The new taskforces will target:
- scrap metal dealers in Scotland;
- construction traders who are self-employed or run their own company who suppress sales or over-claim expenses in the North West and North Wales;
- taxpayers not submitting their statutory returns across Corporation Tax, Income tax Self Assessment, PAYE and VAT in the South East;
- fast food outlets deliberately falsifying their records and mis-declaring their true sales levels to avoid paying the correct taxes in Scotland; and
- landlords - owning or renting three or more properties - evading their tax responsibilities in North West and North Wales.
To read more, please click here.
5% Reduced rate problems
We are negotiating with HMRC on several cases where builders have failed to apply the 5% reduced VAT rate to conversions and refurbishments. HMRC will
not repay input tax if it has been charged at the incorrect rate.
Clients should ensure that the builders understand and will apply VAT correctly.
Contact IVC for further advice if required.
Click here for more VAT news.
Office Gossip and Idle Chat!
Think Pink!
Friday 28th October was the Breast Cancer Campaign's 'Wear it Pink Day' and as in previous years the Mercia team at Best House wore pink and donated to
the campaign. This year raising £92, with a further £30 donated by the Mercia 'Give as You Earn scheme'!
Team News
Michelle Dawson, supervisor in our training admin department is starting maternity leave next month, her baby is due in the New Year - We'll keep you posted on baby's arrival!
|
