Newswire June 2019

  • By Mercia Group
  • 31/05/2019

In a month with nothing to report on the future of audit we look at ICAEW's recent practice assurance and audit monitoring reports, and the ICO's assessment of the first year of GDPR.

Meanwhile, a hot topic in VAT is the new domestic reverse charge which is being introduced from 1 October 2019.  This will be applicable to certain construction services and will affect contractors and their subcontractors. To help you get to grips with this charge we have a new webinar in July. 

AUDIT & ACCOUNTING

 

ICAEW practice assurance and audit monitoring reports

CAEW has issued its annual reports on audit monitoring and practice assurance.

On audit monitoring, the general conclusion was that more often than not, audit quality was acceptable or better, but a quarter of audits reviewed still required improvement. Issues raised included a lack of audit evidence and documentation, including discussions on fraud, as well as problems with identifying and assessing risk, audit sampling, and going concern. The full report is here.

The practice assurance monitoring report noted common areas of focus as being compliance with the Money Laundering Regulations 2017, data protection legislation and, for larger firms, policies and procedures relating to gifts and hospitality. The report highlights that 2019 Practice Assurance on-site visits will focus on payroll services, conflicts of interest and whistleblowing. The full report can be read here.

Review of the Charities SORP

A new report has been published detailing the outcome of a governance review performed by representatives from the charity regulators, based on a public consultation. Its main suggestions were that:

  • Charity reporting should pay more attention to the needs of users;
  • There should be more attention paid to the needs and capacities of smaller charities;
  • The SORP advisory committee should have a modified role with wider representation ensuring its focus is not too narrowly on accounting standards;
  • The SORP should not be too focused on technical compliance;
  • There should be more guidance on non-financial information included with charity statutory accounts.

The panel’s suggestions need to be endorsed by the regulators before steps are taken to establish how proposed changes would be made in practice. You can read the report in full here.

GDPR one year on

The Information Commissioner’s Office has issued a report on the first year of GDPR, describing their own work so far and discussing some of the feedback received. The report emphasises the fact that GDPR compliance is not a one-off event, but an ongoing commitment to privacy, embedded in an organisation’s culture and practices. It also acknowledges that compliance may have been particularly difficult for smaller organisations.  You can read the full report here.

Methodology and compliance products update

We issued an update to our Charities Specialist Assignment Manual (SAM) that updated disclosure checklists and proforma accounts for periods commencing on or after 1 January 2019 to reflect requirements of SORP Update Bulletin 2.  The update also reflects other recent changes in legislation and OSCR guidance on Scottish charity independent examinations.

Earlier this month, we also issued an update to our Societies and CICs SAM to reflect recent changes in accounting standards and relevant legislation.  If you are a subscriber and have any administrative questions about this update, please email our Technical Manuals Team or call us on 0116 258 1200

Find out more about our range of methodology and compliance products here.

 


 

TAXATION

 

Changes to the advisory fuel rates from 1 June 2019

The advisory fuel rates have been changed with effect for all journeys undertaken on or after 1 June 2019.

More information available here

 Engine Size  Petrol  Diesel  LPG
 1400cc or less  12p (11p)    8p (7p)
 1401cc - 2000cc  15p (14p)    9p (8p)
 Over 2000cc  22p (21p)    14p (13p)
 1600cc or less    10p (10p)  
 1601cc - 2000cc    12p (12p)  
 Over 2000cc    14p (13p)  

 

Corporation Tax relief on goodwill and relevant assets

HMRC has issued guidance on the changes to Corporation Tax relief on goodwill and relevant assets. To read more, please click here.

 

Review for High Income Child Benefit Charge penalty cases concludes

HMRC has issued guidance on the changes to Corporation Tax relief on goodwill and relevant assets. To read more, please click here.

 

VAT: domestic reverse charge for building and construction services

HMRC has issued guidance about the VAT domestic reverse charge for building and construction services that starts on 1 October 2019. To read more, please click here

 


 

OTHER NEWS

 

Our new website 

We are excited to announce that there will be further updates and improvements to the Mercia website in early July. This specifically relates to the inclusion of all SWAT products and services that will be accessible within the My Account area of www.mercia-group.com

What this means for you

If you already have a Mercia website account, then look out for our email to you next week. This will provide confirmation that you can access all the SWAT products you previously accessed from www.swat.co.uk and additional benefits.

If you don’t have a Mercia account and only use the SWAT website, next week you will receive an email with information about creating a Mercia account and the simple steps you need to take.

For now, please continue to use the Mercia and SWAT websites as usual, but please look out for our emails next week!

 

 

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