Tax and Audit updates – changes and new legislation, by Simon Speak

simonedited_-_black_and_whiteAt our Manchester NWFD event recently we welcomed CLB Coopers who presented to the network updates on tax and audit issues which may affect their businesses.

Changes to the Audit threshold, effective from October 2012 mean that some companies will no longer have to partake in an audit that previously did.

The criteria now states that you have to qualify for 2 out of the following 3; over £6.5m turnover, over £3.26m gross assets, or over 50 employees – where as any one of these used to qualify your business for audit.

Audit Partner at CLB Coopers, Graham Rigby is urging businesses to consider still opting in to audit because of its positive effect on credit rating and the credibility associated with having the financial statement.

Graham also touched on the convergence of GAAP and IFRS which will be introduced in Spring 2013 for effect from January 2015, and the importance of having quality narrative about your businesses activities and situation to accompany your accounts.

Tax Partner Colin Abrahams, then took over and discussed the topical RTI for PAYE as well as GAAR, tax planning and updates from the Chancellors Autumn Statement.

Many will welcome GAAR clamping down on tax avoidance especially after recent high profile scandals, and it will encourage more careful and smart tax planning.

Some highlights from the Chancellors Autumn Statement include;

  • Restrictions to pension tax relief
  • Increase to capital gains tax
  • Reduction of corporation tax rates
  • Increase in annual investment allowance from £25k to £250k on plant and machinery
  • Cancellation of planned fuel duty increase