AUDIT & ACCOUNTING
Audit reform
Last month we reported that plans to introduce legislation to reform the UK audit market had been announced. Since then more detail on the nature of these reforms has been announced which we have considered in this blog.
Update to the FRC’s Guidance on the Strategic Report
The Financial Reporting Council (FRC) has issued an updated edition of its Guidance on the Strategic Report to incorporate the new climate-related financial disclosures, following changes in legislation made earlier this year. The updated guidance also contains a number of other amendments to maintain alignment with legislation. Where applicable, the new climate related disclosures apply for periods commencing on or after 6 April 2022.
FRC publishes inspection key findings and good practices
The FRC has published anonymised key findings and good practices reported by its Audit Quality Review (AQR) team in relation to their 2020/21 audit quality inspections at the seven largest audit firms. The purpose of these documents is to share the nature of the key findings and good practices reported on the individual audits inspected.
ISAs updated for recent changes issued by FRC
The FRC has released 29 updated ISAs (UK), amended to include conforming amendments arising from the revision of ISA (UK) 315 (Revised July 2020) Identifying and Assessing the Risks of Material Misstatement.
The revised ISAs (UK) are: 200, 210, 220, 230, 240, 250A, 260, 265, 300, 320, 330, 402, 450, 500, 501, 505, 520, 530, 540, 550, 570, 580, 600, 610, 620, 700, 701, 720. ISQC (UK) 1 has also been updated.
FRC issues FRED 80 Draft amendments to FRS 100 Application Guidance
The FRC has issued FRED 80 Draft amendments to FRS 100 Application of Financial Reporting Requirements Application Guidance The Interpretation of Equivalence. The FRC proposes to update the Application Guidance to FRS 100 to reflect changes to company law and decisions on equivalence further to the UK’s exit from the European Union. Comments on FRED 80 are requested by 26 August 2022.
New Irish Audit Regulations
Chartered Accountants Ireland (CAI) has issued new stand-alone Audit Regulations for Ireland. The Audit Regulations Ireland replace the Audit Regulations and Guidance (effective 1 January 2020) and the addendum effective 22 December 2021. This ends the use of joint audit regulations with the UK which has been the case since 1995.
TAXATION
Compliance checks: How to avoid penalties for Making Tax Digital for VAT - CC/FS69
HMRC have issued a new factsheet providing information about how to avoid penalties for MTD for VAT. To read more, please click here.
VAT - business and non-business activities
HMRC have issued Revenue and Customs Brief 10 (2022): VAT - business and non-business activities, explaining their change of view on how they approach determining whether or not an activity is a business activity for VAT purposes. To read more, please click here.
HMRC urges customers to leave Tax Avoidance scheme promoted by London-based firm
HMRC has named Peak PAYE Ltd as a tax avoidance promoter and urged individuals to withdraw from using it. To read more, please click here.
Changes to the advisory fuel rates from 1 June 2022
The advisory fuel rates have been issued with effect for all journeys undertaken on or after 1 June 2022.
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Engine Size
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Petrol
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Diesel
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LPG
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1400cc or less
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14p (13p)
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9p (8p)
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1401cc - 2000cc
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17p (15p)
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11p (10p)
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Over 2000cc
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25p (22p)
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16p (15p)
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1600cc or less
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13p (11p)
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1601cc - 2000cc
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16p (13p)
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Over 2000cc
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19p (16p)
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For more information
Mercia Group 
24 June 2022 00:00
