Newswire August 2020

  • By Mercia Group
  • 28 August 2020 00:00

As lockdown measures continue to ease the last month has been reasonably quiet with a small number of reports from the FRC and other bodies, as the focus shifts gradually onto reporting the current and future effects of the pandemic.

August is always a quiet month in the world of tax as both the politicians and civil servants take a break but we have had an important announcement containing further information about the Job Retention Bonus. See our blog below.

Latest tax and accounting products

 

Is it a bird, is it a plane, or is it van?

The latest instalment of HMRC's attack on the concept of a van

Effectively improving client communication 

Our Newsletters provide you with the tools to keep your clients updated all year round. Available in both printed and digital formats, the content is relevant and easy to understand and branded with your firm's details.

AUDIT & ACCOUNTING

 

Financial Reporting Lab report on coronavirus reporting

The FRC's Financial Reporting Lab has issued a review of financial reporting during the Covid-19 pandemic. It suggests current and expected cash flows will be investors' main focus and gives examples of disclosures proving decision-useful information, though it does not show any historical cash flow statements. 

ICAEW - guide on including an emphasis of matter

There is a new guide from ICAEW discussing when the Covid-19 pandemic will make it appropriate to use an emphasis of matter paragraph in an audit report. It reminds auditors that an emphasis of matter is only needed where the matter is fundamental to users' understanding of the financial statements , and suggests that a policy adopted by a firm to include such a paragraph in all of their audit reports issued during the time of the pandemic may be questioned by regulators. 

FRC comment on adoption of IFRS 16 amendments

IFRS 16 Leases was recently amended to allow a simple treatment for rent reductions or breaks relating to the Covid-19 pandemic, and these amendments have not yet been endorsed for use in the EU. The FRC, in its role as regulator, has confirmed it will not pursue regulatory action against UK companies that apply the amendments in their IFRS annual or interim accounts even before EU adoption. The statement does remind companies to be particularly careful in assessing the legality of any distributions in these circumstances. 

Companies House resuming normal strike-off process

After a temporary relaxation of strike-off measures to allow for difficulties from the pandemic, Companies House has announced that from 10 October 2020 it will revert to its normal procedures, meaning for instance that strike-off proceedings would begin where company documents are outstanding and directors have not responded to standard reminder letters.

 



TAXATION

Job Retention Bonus 

More information has been published about the eligibility requirements and what employers need to do to claim the bonus. Full guidance will be published by the end of September. To read more, please click here.

To listen to our Podcast click here.

Disguised remuneration

HMRC have updated their guidance relating to outstanding disguised remuneration loans that are not subject to the loan charge and announced ‘August 2020’ terms. To read more, please click here.

SEIS

The second tranche of the Self Employment Income Support Scheme is now open. Claims will need to be made on or before 19 October 2020. To read more, please click here.

 


 

OTHER NEWS

Reduce exposure to cyber threats

As many businesses continue to work remotely or flexibly, cyber threats are more prominent than ever. Designed by HM Government, the Cyber Essentials Scheme ensures businesses and firms complies with cyber security and assurance. Taking advantage of the scheme could reduce your exposure to common issues by up to 80%.

For further information, please click here.  

You might also be interested in these articles…