ICAEW technical round-up: September 2020
30 September 2020: The top technical stories on ICAEW Insights this month feature more information on the new Job Support Scheme, the extended self-employment scheme and the Job Retention Bonus, plus new draft anti-money laundering guidance.
Need to know
ICAEW’s Tax Faculty provides key information on the UK government's Job Support Scheme, which will provide support for businesses after the end of the Coronavirus Job Retention Scheme. Read more here.
The Self-Employment Income Support Scheme is being extended, but the scope of the scheme will be narrower and the third and fourth grants less generous. ICAEW’s Tax Faculty explains what is known at this stage in this article.
The UK government's Job Retention Bonus will provide a one-off payment to businesses that retain previously furloughed staff until the end of January 2021. For more information click here.
Duty-free shops will return from 1 January 2021, but international visitors to Great Britain will no longer be able to buy and take with them tax-free purchases from other retailers in the country as the VAT retail export scheme is scrapped. Read more.
Expanded CCAB guidance on anti-money laundering is now available in draft form, pending approval by HM Treasury. The guidance has been updated in line with the fifth EU Money Laundering Directive, as Sophie Wales, ICAEW’s Head of Ethics and Economic Crime, explains.
New guidance on the ICAEW Duty to Report Misconduct dispels myths and provides clarity for members looking to make a report. Find out more here.
The majority of non-PIE audits undertaken by ICAEW-registered audit firms are delivered to a good standard but around a quarter required improvement, according to the IRB annual audit monitoring report.
Government ministers have announced new grants of up to £1,500 to help businesses shut down by local lockdowns or targeted restrictions. Read more.
Other technical news
Rishi Sunak has unveiled a range of measures to stave off the threat of mass unemployment, including a new Job Support Scheme which will contribute to some workers' wages from November. Read more here.
HMRC has updated its guidance on how to perform usual hours calculations where employees come off furlough or flexible furlough partway through a claim period. Click here to find out more.
ICAEW has warned that urgent action is needed before the current business rates holiday ends in April 2021 and suggested that there was a strong case for a significant reduction in the multiplier.
ICAEW has teamed up with the International Federation of Accountants to produce a series of six short guides for accountants to enhance their understanding of money laundering. For more information on the guides, click here.
Responding to FRC demands for an operational separation of audit from the rest of the firm’s activities, Deloitte has become the first of the Big Four to announce the formation of an independent audit governance structure. Read more here.
In light of COVID-19, ICAEW’s Financial Reporting Faculty has published new guidance on how to improve disclosures when preparing accounts in accordance with FRS 102. Read more about the guidance here.
Responding to the joint statement issued by leading sustainability and integrated reporting organisations, ICAEW has welcomed the initiative as an important and necessary step towards a more comprehensive global corporate reporting system.
The automatic extension of Companies House filing deadlines in light of the coronavirus pandemic provides breathing space for SAOs. Read more here.
The ‘support service’ for Northern Ireland trade has gone live and the government is urging businesses to sign up. It will support traders with guidance and can submit declarations on their behalf. Find out more here.
As the 30 September deadline approaches, reporting accountants should be aware of a change to submissions of qualified accountants’ reports. The Solicitors Regulation Authority has recently changed their system for filing qualified reports, which should now be submitted through a mySRA account. Janet Taylor, Director and SRA expert at PKF Francis Clark, explains the changes.
HMRC has confirmed how costs relating to furloughed employees should be treated for the purposes of the R&D tax relief schemes. The Tax Faculty outlines the guidance.
If an employer normally pays staff on jury service, they will be able to make a claim under the coronavirus job retention scheme, HMRC has confirmed.
The extensive revisions to ISA 315, effective for periods beginning on or after 15 December 2021, will have far-reaching effects for firms of all sizes, according to ICAEW’s Audit and Assurance Faculty.
Sir Tony Redmond’s long-awaited report on local authority financial reporting and external audit in England has made a number of robust recommendations, including the creation of a new audit regulator. ICAEW’s Public Sector Team reports.
Significant changes have been proposed in response to the transparency in supply chains consultation, including the mandation of areas a section 54 statement should include and the introduction of a single reporting deadline. Read more here.
HMRC’s latest guidance sets out its VAT relief policy for a variety of digital advertising scenarios for charities. Click here for more information.
Following decisions in the EU Court of Justice HMRC has changed guidance for businesses charging customers a fee to withdraw from supply agreements. Read more.