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ICAEW technical round-up: January 2021

Author: ICAEW

Published: 29 Jan 2021

This month’s top technical stories on ICAEW Insights include HMRC’s decision to waive late filing penalties for one month, help with common COVID-19 accounting and auditing issues, and a raft of Brexit news and guidance.

Need to know

HMRC waive SA late filing penalties for one month: the tax authority will automatically waive penalties for self assessment tax returns filed late due to the coronavirus pandemic. The move will see no penalties issued for returns filed online up to 28 February 2021.

Chancellor reveals lockdown grants for retail and hospitality firms: one-off grants of up to £9,000 per property will be paid to businesses in the retail, hospitality and leisure sectors as the government outlined a new £4.6bn package of measures to help businesses through the latest lockdown.

Supreme Court backs small business COVID insurance claims: tens of thousands of small businesses forced to close during the first lockdown could receive insurance payments following a Supreme Court ruling, in a move which could cost insurers more than £1bn.

Can staff be furloughed to look after their children? Updates to guidance on the Coronavirus Job Retention Scheme have highlighted that those with caring responsibilities are eligible for furlough.

Q&A – common COVID-19 accounting and auditing issues: ICAEW’s Technical Advisory Service answers some of the most frequently asked accounting and auditing issues as part of the Audit and Assurance and Financial Reporting faculties' going concern event.

Delayed CIS VAT reverse charge takes effect on 1 March: after several delays, HMRC’s VAT domestic reverse charge for construction services is due to come into force on 1 March 2021. ICAEW’s Tax Faculty provides a reminder of the changes.

Companies House reforms could cut filing deadlines: the proposed reform of Companies House could see the introduction of mandatory digital filing, a reduction in the number of filing options available to the smallest companies and filing deadlines shortened to as little as three months.

Government cracks down on late payment culture: signatories to the UK government’s Prompt Payment Code must pay small businesses within 30 days as part of a raft of measures taken to tackle the ongoing issue of late payments

Brexit news and guidance

Brexit - where do your goods originate? ICAEW has issued a new helpsheet on rules governing the origin of goods and warns that businesses might end up having to pay customs charges or penalties if they fall foul of the rules.

Brexit - Understand additional customs changes in Northern Ireland: ICAEW has prepared a helpsheet to assist businesses inside and outside Northern Ireland when considering the implications of Northern Ireland’s unique status in the EU customs union and the UK for their operations.

Brexit - changes for short-term travel and longer-term stays: as an employer or an employee, it is worth understanding how certain provisions on mobility in the new EU-UK Trade Cooperation Agreement will affect business activities.

Brexit and VAT - Registering for the non-union MOSS: 10 February 2021 is the deadline to register for the non-union mini one stop shop (MOSS) scheme for any UK business making relevant supplies into the EU during January 2021. ICAEW’s Tax Faculty provides an overview.

Data protection now the UK has left the EU - January 2021 update: following the UK’s departure from the European Union, ICAEW Insights has the latest on how this affects the sensitive issue of data protection.

Brexit - Clarity on social security contributions of mobile workers: following the end of the transition period, workers moving between the UK and the EEA and Switzerland should only pay social security contributions to one country, usually this will be where the work takes place confirms HMRC.

Other technical news and updates

ICAEW re-examines draft MTD for ITSA regulations: HMRC has dusted down the draft Making Tax Digital for Income Tax Self Assessment regulations previously consulted on in 2017 and issued a further consultation. ICAEW’s Tax Faculty has identified several areas where changes are needed before the regulations are laid before Parliament.

Getting to grips with AML - asset transfers: the latest piece in an ongoing anti-money laundering series from ICAEW and IFAC looks at how accountants can avoid becoming complicit in hiding the proceeds of crime through the movement of assets.

UK targets dormant wealth and pensions to aid virus recovery: the UK government is to expand its ability to free up forgotten or dormant funds to help the country recover from the coronavirus pandemic.

How to improve your s172 statement: ICAEW’s Financial Reporting Faculty reflects on what preparers of large companies’ reports can do to make their Section 172 statements more meaningful and wide-reaching in the upcoming financial reporting period.

10 things you need to know about MTD for CT: as HMRC begins gathering feedback from stakeholders on the potential expansion of the Making Tax Digital regime to corporation tax, ICAEW’s Tax Faculty outline the key things that businesses and agents need to consider.

ICAEW concerned over proposals to limit access to the Court of Appeal: ICAEW’s Tax Faculty has urged the Ministry of Justice to rethink proposals for restricting the mechanism for appealing cases from Upper Tribunals to the Court of Appeal.

HMRC launches online tool for mandatory disclosure reporting: the revenue has opened its portal to allow taxpayers and intermediaries to report arrangements that fall under OECD mandatory disclosure rules, but agent functionality is not yet available.

Endgame for LIBOR as regulators publish final deadline: time has finally been called on LIBOR, dubbed the “world’s most important number”, as UK regulators say they will monitor activity to ensure the interest rate benchmark is no longer used by the end of 2021.

Technical content exclusive for ICAEW members

COVID-19-related rent concession under FRS 102 and FRS 105: help for ICAEW members preparing financial statements under FRS 102 and FRS 105 to account for operating leases for which COVID-19-related rent concessions have been granted.

COVID-19 - Ethical issues for members in practice: help for ICAEW practice members to navigate some of the ethical issues that may arise during the COVID-19 pandemic.

Using social media: key considerations for individuals and employers when using social media.

Electronic client due diligence: help for ICAEW members using electronic resources as part of carrying out client due diligence.

COVID-19 - Ethical issues for members in business: help for ICAEW members in business to navigate some of the ethical issues that may arise during the COVID-19 pandemic.