Business &amp; Accountancy Daily

Image for frs 102 compliance problem over accounting social housing loans

Finance | FRS 102 compliance problem over accounting for social housing loans

The Financial Reporting Council (FRC) is considering amending new UK GAAP - FRS 102 accounting rules - after growing concern over interpretation in relation to the accounting for loans in the social housing sector, which it says could have a significant impact on financial statements

13 Jun 2016

Finance | Leases and revenue recognition standards raise concerns for US preparers

The US Securities & Exchange Commission (SEC) is calling on US company preparers to ramp up their plans to implement the new semi-converged global accounting standards on leases and revenue recognition, due to come into force by 2019, to minimise disruption to accounting and financial reporting

13 Jun 2016

Tax | HMRC lead for finance on the Queen’s Birthday Honours list

Eleven tax officials from HMRC and a number of Big Four partners were top of the Queen’s Birthday Honours list announced for her 90th celebrations for the accountancy profession

13 Jun 2016

HMRC

Image for company secretaries call rethink excessive pay packages

Business | Company secretaries call for rethink on excessive pay packages

A poll carried out by the Institute of Chartered Secretaries and Administrators (ICSA) has found that 60% of company secretaries feel that executive remuneration needs a rethink and only a third feel that the current long-term incentive plan (LTIP) model is fit for purpose

13 Jun 2016

Image for iasb cut board numbers and tighten focus ifrs implementation

Finance | IASB to cut board numbers and tighten focus on IFRS implementation

The trustees of the IFRS Foundation, responsible for the governance and oversight of the International Accounting Standards Board (IASB), have outlined plans for changes in its structure and activities, following a review conducted during a ‘challenging’ year with the launch of a three-month consultation

13 Jun 2016

Tax | Political clubs risk membership VAT bill

A Conservative Club on the Isle of Wight faces repaying some £17,000 after a First Tier Tribunal (FTT) ruled that membership fees were not exempt from VAT, in a ruling which may see political clubs across the country facing similar bills

13 Jun 2016

VAT

HMRC

10 Jun 2016

Tax | HMRC must hire more specialist IT staff to handle digital tax rollout

A shortage of skilled IT specialists and outstanding questions about the future IT model when HMRC replaces the annual £700m CapGemini Aspire contract with the cheaper Columbus setup from 2017, are key risks for the tax authorities

10 Jun 2016

Tax | HMRC tax expert calls for radical review of transfer pricing rules

A senior HMRC executive has called for the OECD to update its transfer pricing guidelines as part of its Base Erosion and Profit Shifting (BEPS) project, saying they need to keep pace with the way businesses operate in the modern economy, and are essential to tackling tax avoidance

10 Jun 2016

Tax | Northern Ireland cut in corporation tax to 12.5% in balance

Northern Ireland's newly appointed finance minister, Máirtín Ó Muilleoir, the first Sinn Fein politician to hold the post, has indicated that the planned cut in corporation tax is not a ‘done deal’ and remains in the balance, saying it may not happen on grounds of affordability

10 Jun 2016

Business | Euro 2016: tips for employers to keep football fans on side

As the Euros kick off tonight with the opening match between France and Romania, employers should pre-plan for potential disruptions in the workplace, particularly as the critical England Wales match is an early afternoon midweek kickoff

10 Jun 2016

Image for west bromwich building society finances hit buy let payouts

Tax | West Bromwich building society finances hit by buy-to-let payouts

West Bromwich building society will record a loss for the financial year after paying out £27.5m to thousands of buy-to-let (BTL) landlords following a Court of Appeal ruling that it was not legally entitled to vary their tracker mortgage interest rates without a change in the Bank of England base rate

10 Jun 2016

Property Tax

Tax Planning

Image for bacs extends software upgrade deadline three months

Business | Bacs extends software upgrade deadline by three months

A failure by small businesses to conform to new security protocols has forced Bacs Payment Schemes (Bacs) to extend the deadline for companies to upgrade to new payment security measures by three months

10 Jun 2016

Image for wales closer gaining devolved tax powers

Tax | Wales closer to gaining devolved tax powers

Plans to introduce devolved tax powers for Wales are likely to come into force later this year, giving the Welsh control of a share of the nation’s £4.5bn annual tax take

10 Jun 2016

Finance | Audit Scotland running costs exceed £25m

Audit Scotland is predicting an increase in demand for services in the next financial year as Scotland moves towards increasingly devolved powers, folliowing a record spend on public sector audits and associated costs and services of £25.3m in 2014/15

10 Jun 2016

Auditing

Corporate Governance

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HR | People in the news: ICAEW, Smith Cooper, Coutts, Mazars, McLintocks

Career news this week includes a real estate leader promotion at PwC, partner promotions at Deloitte, Smith Cooper and Mazars, ICAEW names second female president, Coutts director wins award and financial director for Warwickshire Cricket Board

10 Jun 2016

Careers

Image for referendum uncertainty hits sterling and business confidence

Business | Referendum uncertainty hits sterling and business confidence

With under two weeks to go to the referendum, uncertainty about which way the vote on membership of the EU will go is causing considerable uncertainty for business, with research suggesting many are holding back on investment decisions and face challenges because of sterling volatility

10 Jun 2016

Image for financial reporting lab launches research big data and blockchain usage

Finance | Financial Reporting Lab launches research into big data and blockchain usage

The Financial Reporting Lab has launched a research project looking at the use of big data and digital communications on the future of financial reporting, focusing on the use of big data, data analytics and the impact of technology like blockchain

10 Jun 2016

Finance

Financial Reporting

Audit Consultations

9 Jun 2016

Image for head tax deductibility corporate interest expenses

Tax | Head: tax deductibility of corporate interest expenses

Businesses will face an increase in financial and administrative burdens under proposals for UK rules on interest deductibility in light of OECD BEPS rules, says Daniel Head, partner of the global transfer pricing services team at KPMG

9 Jun 2016

Tax | HMRC chief tells MPs low staff morale is ‘a worry’

Jon Thompson, HMRC’s newly appointed chief executive, has identified low staff morale and the move to in-house IT provision as among the key challenges the department faces, and has told the Treasury select committee that some of the past criticisms of poor performance have been justified

9 Jun 2016

Image for mabbutt scores win over ps653k hmrc date blunder

Tax | Mabbutt scores a win over £653k HMRC date blunder

HMRC risks failing to collect £653,000 of tax from Michael Mabbutt, a participant in a tax avoidance scheme after sending out an enquiry notice which has been declared invalid by a tribunal because it mistakenly referred to a non-existent tax year

9 Jun 2016

Finance | IT giant Oracle challenged over accounting approach

A former senior finance manager for US tech giant Oracle has launched a legal claim that the company sacked her after she voiced concerns about its approach to accounting for revenues in its cloud services division

9 Jun 2016

Tax | MEPs set to probe Panama Papers and flouting of EU tax rules

The European parliament has set up a 65-strong committee of MEPs to probe the Panama Papers revelations into the use of offshore companies and their ultimate beneficiaries, in light of widespread contravention of existing EU directives

9 Jun 2016

Tax | Taxman set to challenge ‘Spot the Ball’ VAT decision

HMRC is attempting to force its legal battle over a £97m VAT repayment claim from betting operator Sportech into extra time, by applying directly to the Supreme Court for permission to appeal the most recent judgment in the long running ‘Spot the Ball’ case

9 Jun 2016

Business | Can squad values predict the winner for Euro 2016?

The value of all national team squads competing in Euro 2016, hosted by France, has been calculated by Association of Accounting Technicians (AAT) to see whether this can predict the tournament’s winner

9 Jun 2016

Image for meps draw plans eu tax avoidance directive

Tax | MEPs draw up plans for EU tax avoidance directive

MEPs have voted to support a European Commission proposal for an EU anti-tax avoidance directive based on the OECD’s Base Erosion and Profit Shifting (BEPS) action plan, and have indicated they want to push for stricter limits on deductions for interest payments and tougher rules on foreign income

9 Jun 2016

Business | RSM appointed administrators to stone supplier

Keith Marshall and Gareth Harris, partners at RSM restructuring, have been appointed joint administrators of Realstone Ltd, one of the largest suppliers of natural stone in the UK, which has failed to find a buyer after collapsing due to trading losses, putting 35 jobs at risk

9 Jun 2016

Restructuring & Insolvency

Image for hmrc looking extending scope double taxation treaty passport scheme

Tax | HMRC looking at extending scope of Double Taxation Treaty Passport scheme

HMRC has opened a consultation on renewing and extending the scope of the Double Taxation Treaty Passport (DTTP) scheme, to ensure it still meets the needs of UK borrowers and foreign investors and to see if it should be offered to sovereign investors, pension funds and other entities

9 Jun 2016

International Tax

HMRC

8 Jun 2016

Image for frs 101 ten things you need know about reduced disclosure accounting

Finance | FRS 101: ten things you need to know about reduced disclosure accounting

The reduced disclosure reporting in FRS 101 Reduced Disclosure Framework has a number of advantages over full-blown FRS 102, particularly for subsidiaries of groups. Helen Lloyd FCA assesses the pros and cons of opting for this approach

8 Jun 2016

Finance | FRC to investigate Deloitte over Serco audits

The Financial Reporting Council (FRC) has launched an investigation under its accountancy scheme into Deloitte and some of its staff in relation to the auditing of outsourcing specialist Serco, following information received from the Serious Fraud Office (SFO) which is examining potential overcharging claims on government contracts

8 Jun 2016

Auditing

Corporate Governance

Image for bhs purchaser labelled fantasist and asset stripper

Finance | BHS purchaser labelled ‘fantasist’ and ‘asset stripper’

In evidence to a parliamentary select committee, Michael Hitchcock, the interim CFO brought into BHS following its acquisition by Retail Acquisition Ltd (RAL), has accused purchaser Dominic Chappell of being a ‘fantasist’ and claimed he entered into secret negotiations to sell off some of the company’s assets as part of a project on which Grant Thornton acted as advisers

8 Jun 2016

Finance

Financial Reporting

Image for small business risk being locked out bacs after security upgrade

Business | Small business risk being locked out of Bacs after security upgrade

Next Monday, 13 June, risks being an unlucky date for around 1,000 small businesses, with Bacs warning they may be locked out of the payments system used to process salaries, supplier payments and collect Direct Debits because of failing to make important software upgrades

8 Jun 2016

Image for gauke confirms prescribed format moving digital tax accounts

Tax | Gauke confirms ‘prescribed’ format for moving to digital tax accounts

HMRC’s making tax digital (MTD) plans will require businesses to submit quarterly updates of their tax and financial status using software which is compatible with HMRC’s own systems, to allow for direct transfer of data, according to information supplied to the Treasury select committee in response to concerns raised over the cost and complexity of the new requirements

8 Jun 2016

Tax | Accountants slow to offer probate services

Accountants view probate work as a potential future area of growth, but need to spend more time marketing their new services if they are to achieve expected revenues, according to research by training provider swat UK

8 Jun 2016

Tax | Changes to tax relief on pensions for Scottish taxpayers

The introduction of the Scottish Rate of Income Tax (SRIT) from April 2016 means that registered pension scheme administrators and pension providers will need to make changes to their IT systems for Scottish taxpayers before April 2018

8 Jun 2016

Tax | Sports Direct admits unfair play over National Minimum Wage

HMRC is investigating Sports Direct over the retailer’s failure to pay its staff the National Minimum Wage (NMW) and the company is in talks about arrangements to make back payments to staff, according to evidence given to MPs by founder Mike Ashley

8 Jun 2016

| Charity spending on audit fees hits £67.3m

The top 5,000 charities spent £67.3m on audit fees last year, which marked a 2.5% increase and the smallest consecutive rise over the past four years, largely as a result of competition in the market according to a report by Charity Financials, an online platform providing information about the charity sector

8 Jun 2016

Auditing