FRC Annual Enforcement Review
The FRC has issued its first Annual Enforcement Review which summarises the outcomes of enforcement cases including fines and sanctions against auditors, accountants and actuaries.
The headline figures are that annual fines have increased from £15.5m to £42.9m and non-financial sanctions from 11 to 28. The report also summarises the FRC’s current powers, which will expand as it transitions into being the ARGA.
Realistically it seems likely that investigations, fines and sanctions will only increase, at least in the short term, as the FRC then ARGA increases its resources and works on the principle that sanctions, as well as transparency, improve corporate behavior.
Preparing for Brexit
As the proposed date of Brexit approaches, increasing amounts of guidance are becoming available, mostly focused on the consequences of “no deal”. In particular, the UK government has issued notes on both accounting and auditing in the case of a no deal Brexit. In accounting terms, it will no longer be relevant whether an IFRS Standard is adopted by the EU; instead a specific UK body will make a series of decisions on new UK-endorsed IFRS (which is expected, realistically, to be the same as EU IFRS as at the exit date). Exemptions based on having an EU parent will also stop applying so parent companies not preparing group accounts will need to review carefully whether they have other ways to achieve this. The government has also issued a document about Brexit and auditing, last updated in June, making observations about audit firm structure, changes in data protection legislation, and additional Brexit-related risks in financial reporting that are likely to require extra audit attention.
Guidance confirms employers may exceed £1,000 cycle-to-work scheme limit
The Department for Transport has published updated guidance confirming that employers may now offer cycling equipment above the £1,000 limit allowed under most salary sacrifice cycle-to-work schemes, by running the scheme through a Financial Conduct Authority-approved third-party provider. To read more, please click here.
Agent Update 73
This Update contains articles on a variety of topics but in particular gives guidance on the implementation of NIC on termination awards and sporting testimonial payments from 6 April 2020. To read more, please click here.
Employer Bulletin 79
This Bulletin contains articles on a variety of topics but in particular gives guidance on the new VAT reverse charge on building and construction services. To read more, please click here.
New advisory fuel rates take effect from 1 September 2019
More information available here.
|1400cc or less||12p||8p|
|1401cc - 2000cc||14p||10p|
|1600cc or less||10p|
|1601cc - 2000cc||11p|
OFFICE GOSSIP & IDLE CHAT
Our Leicester office recently completed our first Mercia Community Day. This project was to help clear a space for the children to play outside at Danemill Primary, a local school.
Due to the success of this project, we are already looking forward to the next challenge that will help our local community.
Important News About Our Website
The SWAT website will close today, Friday 30 August, and you should now use your Mercia Incorporating SWAT website account at www.mercia-group.com/account to access everything you used to from the SWAT website. If you have not yet accessed your My Account area on the Mercia Incorporating SWAT website, or reset your password from previous emails sent, then don’t worry. You can use the reset your password by simply entering your email address here.