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ICAEW technical round-up: December 2020

16 December 2020: This month’s top technical stories on ICAEW Insights focus on the updated furlough scheme, how the UK’s existing rules will change after Brexit, and how the pandemic will affect 2020/21 financial reporting.

CJRS: the furlough scheme reinvented. ICAEW's Tax Faculty answers questions raised by attendees at its latest webinar explaining the changes to the Coronavirus Job Retention Scheme.

ICAEW’s Tax Faculty has flagged a few reminders to consider when making claims for Coronavirus Job Retention Scheme grants during the holiday season. Read more.

With claims for the third Self Employment Income Support Scheme now open, ICAEW’s Tax Faculty has recorded a webinar which highlights what has changed for the third grant, available free to all ICAEW members.

ICAEW has produced a guide to outline how the UK’s existing VAT rules are likely to change after the Brexit transitional period. Read the guide here.

To assess the impact of COVID-19 and Brexit on businesses and the implications for 2020/21 financial reporting, ICAEW has prepared six key business questions. These can be asked by management or their auditors to enable a conversation about the big-picture factors affecting a business this year.

HMRC’s latest Agent Update highlighted common self assessment errors and issues. Some are more relevant to unrepresented taxpayers filing their own returns, but several are also relevant to agents. Read more.

Later than originally planned, Crown Preference was implemented with effect from 1 December 2020. The move essentially grants the government preferential treatment over most other creditors in insolvency procedures. Read more.

2020/21 Reporting Season: the biggest considerations for preparers. In a reporting season like no other, ICAEW’s Financial Reporting Faculty has published guidance on areas where preparers should pay particular attention.

A guide from ICAEW’s Audit and Assurance Faculty reminded auditors what to consider when determining audit materiality and how, given the impact of the pandemic, these considerations might be relevant to audits in the 2020/21 reporting season.

ICAEW has reiterated its appeal for the world’s auditing standard-setter to act decisively on a new audit standard for less complex entities, amid ongoing concerns that the complexity of current audit rules could hamper efforts to rebuild the global economy.

Other technical news

HMRC has temporarily suspended the requirement for an activation code to be sent in the post before taxpayers can access the self assessment online filing service. Read more.

HMRC has discretion to waive penalties for late filing of corporation tax returns where there is a reasonable excuse. ICAEW Tax Faculty correspondence with HMRC suggests this includes delays caused by the late filing of company accounts and other reasons associated with the coronavirus pandemic. Read more.

An online form has been created to enable VAT-registered businesses to inform HMRC that they are trading goods in Northern Ireland or between Northern Ireland and the EU. Read more.

Many trusts need to update details on the trust register or make a ‘no change’ declaration by 31 January 2021. Functionality is now available and HMRC has clarified its position on penalties, trust returns and closing trusts. ICAEW’s Tax Faculty has the latest.

The latest ICAEW-IFAC anti-money laundering guide outlined how company formation services can be misused by criminals and what accountants should be aware of when it comes to client due diligence.

ICAEW has created an e-money helpsheet to help businesses and their advisers understand whether such accounts are appropriate for their needs.

ICAEW has published a summary of the government’s proposed reforms to Companies House and its involvement in the reform process. Read more.

ICAEW’s Tax Faculty provided a reminder that from April 2021 the ‘representative occupier’ exemption from the employer-provided accommodation benefit-in-kind charge will cease.

The Financial Reporting Council’s revised corporate governance code set new expectations for premium listed companies. However, the changes haven’t prevented criticism of corporate governance reporting. Find out more.

Reporting on 2020/21 will be a challenge but there may also be opportunities for the development of corporate information, despite the uncertainty. What do shareholders, investors and other stakeholders want from corporate reporting at this difficult time? ICAEW has produced a series of articles to help entitled 2020/21 Reporting Season.