March 2013 saw a ground-breaking event for UK financial reporting with the release of FRS 102, The Financial Reporting Standard applicable in the UK and Ireland.
This new standard replaces current UK accounting standards, for periods beginning from 1 January 2015, and so has very broad relevance.
This new standard has been described by some commentators as the biggest change to the accountancy profession for over 40 years.
Accounting treatment differs from current UK GAAP in many areas and therefore over the coming months there will be significant challenges for finance professionals as they attempt to identify the impact these changes will have on their financial statements.
It is well known that food prices can fluctuate based on yields in different years or market conditions. Currently it is dairy farmers experiencing tough conditions with the price of milk falling, but meat prices can also vary, for example depending on imports of New Zealand lamb.
While many farmers experiencing falling incomes may think that they do not have tax to pay, this may not be the case due to the payment on account system which HMRC operates and depending on when the accounting year end falls.
Many farming businesses are run as a partnership and therefore are in a system of payments on account where the current year’s tax bill is estimated based on the previous year’s results until actual figures are prepared and adjusting payments can be made (or refunds received). If prices achieved resulted in good profits in 2013/14, a tax bill and another payment on account will be due in July 2015 to HMRC based on those good profits.
The latest Travel & Tourism Survey conducted by MHA, the UK-wide association of chartered accountants and business advisors, indicates that 26% of operators in the hotel and bed and breakfast sector are still unable to take online bookings.
This is despite the fact that 50% of respondents to the annual survey report a year-on-year increase in online bookings and the fact that there has been a 16% increase in the ability to take online bookings direct.
“This growth in direct transactions is good to see, especially as online booking agents have been increasingly dominating the UK hotel and bed and breakfast sector,” said Andrew Burnham, head of the MHA travel and hospitality sector. “This trend should lead to a greater online presence and more competitive offerings.”
From April 2015, Sage will begin withdrawing support for customers currently using Sage 50 v2011, v2012 or v2013 software for Instant Accounts, Sage 50 Accounts and Sage 50 Payroll.
This is standard practice in order to focus on new technology and legislation.
This means that Sage will be withdrawing updates and general support for your software. Additionally, your software will become non-compliant with legislation and may face compatibility issues with other software.
If you are currently using Sage 50 v2011, v2012 or v2013, you will receive communication from Sage outlining the details and notifying you about the withdrawal of updates and support.
We recommend you upgrade to the latest version of Sage 50. You have the choice to move to Sage 50 on monthly subscription, ensuring you always remain up to date with legislation and software updates and to avoid compatibility or other software issues.
As accredited Sage Accountant Partners, we are able to offer great discounts on Sage RRP – contact our Sage Solutions team to find out more.
For advice and support about your Sage 50 Payroll, please contact email@example.com
It was announced in 2014 that charities carrying out certain care and rescue operations would not be disadvantaged by the cost of incurring VAT on their non-business activities. However it has taken HMRC until now to release details of how this would work.
On a notice from HMRC dated 28th April 2015, the long awaited guidance has been issued.
The notice explains which charities are eligible to use the refund scheme to claim a refund of VAT incurred on goods and services used for their non-business activities*, what to do when circumstances change, what falls within the scope of the refund scheme and how to make a claim.
*Non-business activities relate to those activities carried out by the charity which are funded by income which is not within the scope of VAT i.e. typically grant income, donations etc. Ordinarily, it is not possible to recover the VAT incurred on goods and services purchased to support non-business activities.
THIS EVENT IS NOW FULLY BOOKED
If you would like to register your interest for our October, Rugby World Cup themed quiz night, then please email Linda.firstname.lastname@example.org
Broomfield & Alexander are supporting the Prince’s Trust with a quiz night at the Cardiff Blues (Cardiff Arms Park) on the 11th June.
Register now to take a table and join us to pit your wits against the great and the good of Cardiff at our annual charity quiz.
Aged 16-25 and an aspiring engineering entrepreneur? Could you do with some extra support? Have you heard about the Royal Academy of Engineering’s Launchpad Competition?
The aim of the Launchpad Competition is to enable an aspiring engineering entrepreneur aged 16-25 to start a new business based on their engineering innovation.
The winner will receive the JC Gammon Award, a prize of £15,000 and the support from a money-can’t-buy Membership of the Royal Academy of Engineering Enterprise Hub.
The Enterprise Hub is an initiative that sees some of the UK’s leading technology entrepreneurs and engineering business leaders volunteer their time to mentor the country’s most promising engineering entrepreneurs, who in turn form a highly valuable peer-support network. The Hub also runs a year-long programme of training courses, exclusively for Hub Members.
The Government’s controversial legal aid reforms have been given the go-ahead after the Court of Appeal dismissed an appeal by the Law Society and practitioners groups.
This has far-reaching implications for the legal profession and whilst there is political opposition from Labour (which has pledged to reverse the position if elected) the Law Society is warning that if the plans go ahead ‘hundreds of firms’ could go out of business as a consequence of the ruling.
By way of a background, the tendering process for duty provider contracts in police stations and magistrates courts had been suspended since December while the Law Society, Criminal Law Solicitors’ Association and London Criminal Courts Solicitors’ Association challenged the Justice Secretary’s (Chris Grayling) plans to reduce the number of criminal legal aid contracts from around 1,600 to 527. This was re-opened following the Court of Appeal ruling.