ICAEW technical round-up: May 2020
29 May 2020: the most-read items of technical content on ICAEW Insights during the month of May include information on going concern, accounting for support schemes and information on what training furloughed employees can undertake.
Need to know
In light of the continuing economic uncertainty caused by the coronavirus pandemic, ICAEW has published guides on going concern considerations for those preparing accounts and on reverse stress testing. Read about the guides here.
Company directors are still required to assess whether their business is a going concern when drawing up their annual accounts, according to new guidance written to assist small and medium-sized businesses affected by coronavirus measures. Find out more about the guidance here.
A webcast from ICAEW’s Financial Reporting Faculty has outlined how to account for a variety of the support schemes being made available to businesses during the coronavirus pandemic. More on the webcast here.
Following the launch of the Self-employment Income Support Scheme (SEISS) the Tax Faculty provides guidance on how taxpayers and their agents can request a review of grant entitlement. Read more here.
Confirmation on what training furloughed employees can undertake and the eligibility of TUPE staff has been made in new legislation on the CJRS. The Tax Faculty outlines the changes.
Other technical news
ICAEW’s Audit and Assurance Faculty has produced a webinar looking at accounting for and auditing revenue during COVID-19, which also tackles questions on issues such as FRS 102 recognition criteria and client internal controls. For more information on the webinar click here.
The Financial Reporting Council has urged firms to enhance their early warning systems for spotting signs of poor-quality audit work following a major review by the watchdog. Read more on this story here.
The Charity Commission has confirmed that it will be conducting an ongoing review of the reporting of matters of material significance by auditors and independent examiners. Find out more here.
Organisations reimbursing staff for equipment purchases enabling them to work from home during the coronavirus pandemic will not have to pay tax, a Treasury minister has confirmed. For more information click here.
Small employers and their tax agents will be able to submit claims for rebates of statutory sick pay linked to coronavirus from 26 May, HMRC has confirmed. ICAEW Tax Faculty has the story here.
A sharp reminder has been circulated by HMRC asking agents not to use client Government Gateway credentials to claim the SEISS grant on their behalf. ICAEW Tax Faculty reports.
Taxpayers may have an additional three months to appeal HMRC decisions or penalties where the usual 30-day deadline cannot be met due to the coronavirus pandemic. More on the story here.
HMRC is urging contractors to take independent advice before working with an umbrella company to avoid finding themselves liable for unpaid tax and national insurance. Read more here.