Newswire June 2021

  • Mercia Group
  • 24 June 2021 00:00

Although discussions are continuing about how proposed audit reform could work in practice, and there are still interesting open consultations in areas such as Companies House reform, there has been little new regulatory content this month. While the Covid-19 situation remains ongoing, some easings remain, including the extension of the more straightforward treatment permitted in FRS 102 for Covid-related rent concessions.

On the tax side the Finance Bill has received Royal Assent, so if you haven’t attended one of our courses yet then please join us.



ICAEW Practice Assurance Monitoring Report

The latest practice assurance monitoring report from ICAEW is now available, setting out the latest insights into how firms are managing their practice assurance. A key area of focus was assessing how firms are addressing the requirements of Professional Conduct in Relation to Taxation (PCRT) and it was established that many firms still have some work to do. More information appears in our blog post.

Covid-related rent concessions

As expected, the FRC has agreed to extend amendments to FRS 102 and FRS 105 for covid-related rent concessions so that they will now apply to relevant lease payments on or before 30 June 2022. As a reminder, the FRS 102 amendment allows the effect of the rent reduction to be recognised in the period to which it applies rather than spread over the remaining lease term as would usually be the case for lease incentives.

Revised UK auditing standard on fraud

The FRC has published a revised version of ISA (UK) 240 The auditor's responsibilities relating to fraud in an audit of financial statements, which will be effective for audits of periods beginning on or after 15 December 2021.

The main changes to the standard are in line with those that had been put forward in the Exposure Draft and are UK-specific rather than being based on changes to the international standard. They highlight the need for professional skepticism and for robust engagement team discussions as well as adding a requirement to stand back in assessing whether the financial statements are free from misstatement due to fraud rather than just focussing on assessing specific identified risk areas.




Changes to the advisory fuel rates from 1 June 2021 

The advisory fuel rates have been issued with effect for all journeys undertaken on or after 1 June 2021. 

Engine Size Petrol Diesel LPG
1400CC or less 11p (10p)   8p (7p)
1401cc - 2000cc 13p (12p)   9p (8p)
Over 2000cc 19p (18p)   14p (12p)
1600cc or less   9p (9p)  
1601cc - 2000cc   11p (11p)  
Over 2000cc   13p (12p)  


Relaunch of Agent Dedicated Line, service developments and security updates

HMRC are trialling a relaunch of the Agent Dedicated Line. To help them provide priority access for agents, they are expecting agents to use digital services where these are available and to get information from clients where this is possible. 

Pay VAT deferred due to coronavirus (COVID-19)

The online portal to pay VAT payments deferred between 20 March and 30 June 2020 has now been closed. Failure to pay the deferred amount by July will generate a penalty.




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