ICAEW technical round-up: October 2020
30 October 2020: The top technical stories featured on ICAEW Insights this month include updates to the self-employed and Job Support schemes, as well as a raft of Brexit planning guidance and audit updates and guidance.
Need to know
The Chancellor has revealed that the third SEISS grant will now be based on 40% of average trading profits and businesses temporarily unable to trade due to coronavirus will be eligible. Read more.
Changes announced by Rishi Sunak will bring more flexibility to the JSS and reduce costs to employers for employees working fewer hours due to the coronavirus pandemic. ICAEW Tax Faculty has the latest.
The end of October sees the transition into the next phase of UK government coronavirus support schemes. ICAEW provides a reminder of key dates and deadlines. Read more.
Employees required to work from home can have a £6 per week or £26 per month allowance paid tax-free by employers or, during the pandemic, can claim a deduction from earnings for this allowance, HMRC has confirmed.
With the Brexit transition deadline looming, HMRC is sending letters to all VAT-registered businesses within Great Britain that trade with the EU and/or the rest of the world. Read more.
With still no Brexit deal agreed, it is impossible to know how the UK’s EU exit will impact such vital areas as availability of skills and workers’ rights. Although the future is unclear, you can still prepare now, writes ICAEW’s Business and Management Faculty.
Brexit planning: how to hire overseas talent. In this article, Dhruti Thakrar of Edwin Coe LLP explains how the new sponsor licensing system will work and the potential challenges for businesses.
Revisions to UK auditing standards extend the requirement to include an explanation of how capable the audit was at detecting irregularities, including fraud, to all audit reports. A new guide from ICAEW’s Audit and Assurance Faculty examines the changes.
Companies House reforms: new rules to combat crime. The UK has announced changes to identity checks for individuals which aim to fill gaps in the UK company registration system.
While MTD for VAT will be mandatory for all VAT-registered traders from 2022, changes expected in 2021 will affect VAT registered businesses not yet in MTD. ICAEW’s Tax Faculty explains the likely impact.
Other technical news
2020/21 Reporting Season: COVID, Brexit and other challenges. In an exclusive interview with ICAEW Insights, The FRC’s Executive Director, Regulatory Standards, Mark Babington, urges the profession and all businesses to put clarity of information and high-quality assurance at the forefront during this difficult time.
In conversation with ICAEW chief executive Michael Izza, the Financial Reporting Council’s Jon Thompson spoke about the drivers for and progress in audit reform, the attractiveness of the profession and the challenges of COVID-19. Read more.
The Big Four’s audit fee income rose at a record pace in 2019 but fees made consulting for audit clients dropped, according to the FRC’s latest Key Facts and Trends in the Accountancy Profession report. Click here for more details.
Audit quality is not the sole responsibility of auditors. Regulators, inspectors and standard-setters all have a role to play, and auditing standards and the standard-setting process needs to be fit for purpose, writes ICAEW Chief Executive Michael Izza.
HMRC has started writing to Self-employment Income Support Scheme grant claimants that may have ceased trading and therefore do not qualify. Read more.
HMRC will not charge daily penalties for late filing of 2018/19 tax returns as an easement during the coronavirus pandemic, writes ICAEW’s Tax Faculty.
HMRC has introduced a workaround for those who have been unable to obtain a national insurance number and need to register a self-employment and obtain a Unique Taxpayer Reference. ICAEW Tax Faculty has more.
In the second of six short guides for accountants to enhance their understanding of money laundering, ICAEW and IFAC set out what is involved in a risk-based approach to AML. Read more.
Samantha Barrass, CEO at the Business Banking Resolution Service, explains the eligibility criteria for this free scheme and encourages members to register if they have a dispute and think they might come within its remit. Find out more here.
The Office of Tax Simplification is still collecting evidence for its major review of Capital Gains Tax. OTS Tax Director Bill Dodwell discusses the ins and outs of the process with ICAEW Insights.
UK digital services tax will continue for longer than originally anticipated after the OECD decision to extend discussions until mid-2021. ICAEW’s Tax Faculty reports.
Sundip Jadeja, Technical Manager at the Climate Disclosure Standards Board, explains how the organisation is helping to advance the integration of climate-related matters into financial reporting. Click here for more details.