Newswire May 2018

  • By Mercia Group
  • 31/05/2018

Whilst HMRC has announced a 'pause' on some areas of Making Tax Digital they plan to press ahead with MTD for VAT from April 2019. Also following the implementation of the rules for off-payroll working in the public sector, the government is now consulting on proposals to extend the rules to the private sector. See the tax section and blog link below for more details on these issues.

Looking ahead we have a busy programme of conferences planned in June for anyone working with academies or in the healthcare sector. We are also holding a conference called Tomorrow's World, where we have partnered with our colleagues at SWAT UK to look at the future of the profession and how you can advise your clients in the new era. 

Last but not least, a May 2018 newswire would not be complete without mentioning GDPR! We hope you have survived the avalanche of business requests for consent and dealt with your own data in time for the deadline.



Bannerman Clarification Language

The ICAEW has published Technical Release 01/03AAF (Revised): The Audit Report and Auditor’s Duty of Care to Third Parties. This Technical Release provides updated guidance on the positioning of the ‘disclaimer’ paragraph that the ICAEW recommend is included in an auditor’s report to help manage the risk of liability to third parties (also referred to as ‘Bannerman Clarification Language’).

The guidance now recommends that this ‘disclaimer’ paragraph is positioned at the final section of the audit report, directly preceding the auditor’s signature. The example given in the guidance includes the paragraph under the subheading ‘Use of our report’.

A separate email alert has been sent to subscribers of relevant Mercia technical manuals regarding this guidance.

FRS 101 Reduced Disclosure Framework 2017/2018 cycle

The FRC has concluded that no amendments are required following its 2017/2018 review of FRS 101 Reduced Disclosure Framework.  The Basis for Conclusions within the standard has been updated to reflect this decision.

A&A technical round-up

Other publications you may find of interest include:





Off-payroll working in the private sector

HMRC have launched a consultation on how to tackle non-compliance with the off-payroll working rules in the private sector and are asking for comments on the best way to do this. More information from HMRC available here.

HMRC’s changing priorities

On 30 April 2018 HMRC shared a statement about how they are prioritising change in the department. This acknowledges the challenges in:

  • exiting the EU; and
  • the ambition to become the world’s most digitally advanced tax authority.

While some of the finer details are still being worked out, the upshot is that, to achieve the above, some other work areas need to be shifted down the priority list.

To read the full article and implications for MTD, please click here.

200,000 receive back pay as HMRC enforces National Minimum Wage

The BEIS and HMRC have launched a campaign urging underpaid workers to complain, as figures show that the number of workers getting the money they're owed has doubled. Find out more here.

Changes to the advisory fuel rates from 1 June 2018

These advisory fuel rates apply for all journeys undertaken on or after 1 June 2018. You can use the previous rates for up to one month from the date the new rates apply. Hybrid cars are treated as either petrol or diesel cars for this purpose. More information available here.

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

* Amount per mile





Mental Health Awareness Week

In support of the recent Mental Health Awareness Week (14 - 20 May) we held two events in our Leicester office to raise awareness for this much-needed cause.

On Monday Mocktails and Muffins were on sale in the boardroom and on Wednesday there was a lunchtime Wellbeing Walk. To end the week there was a competition to ‘guess how many sweets are in the jar’. It wasn’t a surprise when this was won by one of our auditing team, Ian Pickering!

This was organised by Ashleigh Cullen, one of our training events team, and all monies raised went to the Mental Health Foundation.

Accountex 2018

This year we had a joint stand with our sister brand SWAT UK. We enjoyed two very busy days meeting clients and taking new enquiries. Thank you to everyone who came to say hello.



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