Thursday, 30 October 2008
Snow in October? It seems it's not only the economic climate that's in a flurry! Fingers crossed that by the time our next newswire is distributed the Chancellor will have given his Pre-Budget Report and that it will contain some good news to address the tough times ahead.
Whilst considering Chancellor's announcements, you may recall in last month's newswire we included a link to the HMRC guidance on Entrepreneurs' Relief. When our head of tax, Mark Morton read it he was compelled to put pen to paper in his own inimitable style. You can read his views in tax issues below.
This time of year also sees our team of technical consultants very busy out and about performing a variety of reviews. During Investment Business Reviews one of the many things they look at is the related wording on the firm's website to ensure specific rules are adhered to. We do come across errors from time to time where either incorrect wording has been used or necessary wording has been omitted. If you are authorised to carry out investment business it may be worth checking your own website to ensure that you are compliant. To help, you can find a copy of our factsheet under Audit & Accountancy Issues below, which gives general guidance on the matters to consider, along with some example wording.
Nicola Hurley
Director
nicola.hurley@mercia-group.co.uk
Pre-Budget 2008
Although the date is still unknown, the Chancellor's Pre-Budget Statement is expected soon. If you would like to provide your clients with a summary of any announcements on your website or by email or post we can help.
If you would like to order any personalised printed summaries or a pdf file please contact us soon. Orders for non-personalised printed summaries, pdf, html or Word files can be taken on the day of the Pre-Budget. For further details visit http://www.mercia-group.co.uk/marketing_support/budget_prebudget.htm or call the marketing support team on 0116 258 1242.
Tax specialist courses coming in 2009....
We are introducing a series of three hour CPD courses designed specifically for tax partners and managers. The speakers will be specialists in their area and will include barristers who will look at each topic in detail.
The courses will range form general topics such as HMRC powers through to more specific areas such as share incentive schemes. Further details will be circulated to firms next month but please contact Kay Sanders at kay.sanders@mercia-group.co.uk or call her on 0116 258 1200 to ensure you personally receive a brochure.
Audit and Accountancy Issues
APB & ASB News
Earlier this month the ASB approved amendments to FRS 26, Financial Instruments: Recognition and Measurement and FRS 29, Financial Instruments: Disclosures, that permit the reclassification of certain financial instruments.
These amendments follow amendments made to the corresponding IAS / IFRS to ensure that those applying UK GAAP have the same ability to make reclassifications as those applying IFRS, particularly in the light of the current credit crisis. You can find out more here.
The APB issued a consultation paper on whether UK and Irish auditing standards (our ISA+s) should be updated for new international auditing standards that are due to be issued in early 2009. We've come to know this more generally as the 'clarity project'. You can find a copy of the consultation paper here.
Finally, the FRC has also published updated guidance on Audit Committees.
Investment business and your website
As you are no doubt aware, there are strict rules governing investment business and its promotion on your firm's website. It is important therefore that as part of your website you ensure that the correct wording is used. To help you get things right we have prepared a short factsheet which provides general guidance on the key matters to consider.
Tax Issues
Entrepreneurs' Relief
Last month we informed you that HMRC had issued new guidance on Entrepreneurs' Relief in their Capital Gains manual. After reading through the guidance Mark Morton felt compelled to put pen to paper! To read his thoughts on the 'Conflicting views on Entrepreneurs' Relief' click here.
Just in case you missed the link last month you can view the guidance at www.hmrc.gov.uk/manuals/cg4manual/CG63950+.htm
Self assessment time...again!
The 31 October deadline for filing paper self assessment returns is here but we thought we would share some guidance HMRC have issued to help smooth the filing process.
Late-filing penalties
HMRC have announced that, for late filers of paper returns, taxpayers can now submit any reasonable excuse, on a one-page form, with the paper return. Taxpayers do not have to wait until after the return has been submitted and it is hoped that this will avoid some being hit with an automatic late-filing penalty.
This procedure will enable HMRC to suppress penalty notices and save time. The form can be found at www.snipurl.com/excuse
Working Together 32
HMRC have published the latest issue of Working Together, which includes a number of relevant points:
- Correspondence attached to returns
HMRC have denied that they no longer take notice of letters sent in as part of the submission of tax returns and that these are taken out and destroyed without ever being read. They assure advisers that correspondence accompanying tax returns is read.
HMRC also state that agents can help increase the speed of processing of tax returns by only attaching letters to tax returns that cover matters providing further information or which seek advice or action from HMRC. Correspondence submitted with a tax return that covers non-related issues should ideally be sent separately to avoid being retained with the return until processing. - Receipts for Self Assessment returns - 'reasonable evidence'
HMRC have produced guidance for agents who are concerned about the need to obtain a reciept for paper returns delivered to Enquiry Centres; and also guidance on late-filing penalties and enquiry time limits
www.hmrc.gov.uk/workingtogether/news/reason-evidence.htm
www.hmrc.gov.uk/sa/sa-penalties.htm
Intestacy rules
The Ministry of Justice has announced an increase in the amount of the statutory legacy on intestacy. From 1 February 2009 the statutory legacy will increase to:
£250,000 (from £125,000) where there is a surviving spouse or civil partner and children
£450,000 (from £200,000) where there is a surviving spouse or civil partner and parents or siblings, but no children.
Further details can be found at www.justice.gov.uk/news/newsrelease280808a.htm
Staff hire concession
You may be aware that the staff hire concession will end on 31 March 2009 which will have a major impact on the employment sector. Please contact IVC if you have any clients who are affected by the concession (ie staff hire agencies or nursing/residential homeowners who hire in temporary staff) and they will keep you updated by email VAT alerts. Alternatively email Sally Duke on sally.duke@ivcadvice.com for further details.
Fleming update
IVC are currently assisting a number of accountancy firms in identifying which of their clients are eligible for a claim. If you would like to know more please contact Sally at IVC as above.
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!
Announcing courses for supermen!
We thought we would share a moment of hilarity in the office. Whilst proof reading course details before they were distributed to the training group one of the team spotted an error. We are not quite sure what was on the mind of one of our typists but our 'Introduction to tax issues for sportsmen and entertainers' had become 'Introduction to tax issues for supermen and entertainers'! It's a shame it didn't slip through the net as we would love to have seen how many participants turned up with their pants on the outside of their trousers!
The answer to this month's quiz is 91%
