September 2017 1

E-NEWS5 SEPTEMBER 2017

IDENTITY FRAUD AT RECORD LEVELS

Cifas, a not for profit fraud prevention membership organization, has published research that shows identity fraud increased by 5% in the first six months of 2017, compared to the comparative 2016 period. A record 89,000 cases of identity fraud were recorded, of which 83% were perpetrated online. It is a salutary reminder that individuals and entities need to be on the alert at all times against the criminal fraternity who are able to access an increasing amount of personal data through social media.

HMRC INVITES BUDGET REPRESENTATIONS

Whilst we await the announcement of the date for the Autumn Budget 2017, HMRC has invited representations as part of the policy-making process. Any comments must be submitted online or by email by 22 September.

WELCOME TO ENEWS, HAYSMACINTYRE’S REGULAR “E-NEWS ALERT” FOR CORPORATES AND PRIVATE INDIVIDUALS.

GETTING TOUGH ON PENSION SCAMMERS

The Government has announced it is to ban cold calling, including texts and emails, in relation to pensions as it looks to protect individuals from pension scammers. It is understood that the enabling legislation will be introduced when “Parliamentary time allows”. The Government is looking to tighten the rules around opening pension schemes and at tougher rules on transferring between schemes to prevent fraud. The Information Commissioner’s Office will be responsible for enforcing the ban.

2 September 2017

HMRC’S GUIDANCE ON IHT RESIDENTIAL NIL RATE BAND

The nil rate band, above which inheritance tax is paid, has remained at £325,000 since 2009. From 2017/18, an additional residential nil rate band is introduced (increasing to £175,000 by 2020) when a residence is passed on death to a direct descendant. The additional relief is also available when an individual has sold or gifted a property, or downsized prior to death, provided a number of conditions are met. Even HMRC have admitted the rules are complex (!) and have recently published guidance. Please contact Katharine Arthur for further details on how the relief may apply to you.

AUDIT THRESHOLD FOR CO-OPERATIVES MAY INCREASE The size thresholds, above which co-operative and community benefit societies need to appoint an auditor, are under review. The consultation, which runs until 22 September 2017, proposes aligning the audit threshold with that for small companies, namely meeting two out of the three following criteria: no more than 50 employees; turnover less than £10.2 million; and total assets less than £5.1 million. A resolution will need to be passed to take advantage of audit exemption and the Financial Conduct Authority will retain a right to stop societies disapplying the audit requirement.

DRAFT ANTI-MONEY LAUNDERING GUIDANCE ISSUED The Consultative Committee of Accounting Bodies (“CCAB”) has issued its Anti-Money Laundering Guidance for the Accountancy Sector following the new regulations that came into effect on 26 June 2017. The guidance, which will supercede the existing guidance, is designed to ensure accountants meet their responsibilities in connection with anti-money laundering legislation. The draft has been sent to the Treasury for approval, which is expected to be later this year.

September 2017 3

TAX SCHEME PROMOTERS BEING SUED FOR MIS-SELLING A law firm is representing 122 investors, including over 40 Premier League footballers, in suing Ingenious Media and three of its directors in relation to the mis-selling of film schemes which were designed to provide a tax saving. Claims are also being made against other professional agents, financial advisers and banks who were involved in promoting the tax schemes. The investors are facing significant tax and interest liabilities as a result of HMRC’s success at tribunals in, so far, defeating the schemes. Ingenious have stated that they believe the claims are without merit and will vigorously contest them.

REVISED INTERNAL AUDIT GUIDANCE The Chartered Institute of Internal Auditors has updated its “Guidance on Effective Internal Audit in Financial Services”, often called the Financial Services Code (“the Code”). The key changes include requirements for internal audit to: report annually on whether the firm is adhering to its risk appetite framework; review actions taken after an adverse event; regularly review its plans to take into account emerging risks; have a central role in assessing the firm’s culture; and for audit committees to discuss annually the objectivity and independence of chief internal auditors after they have been in situ for seven years.

AND FINALLY....CAUGHT BY THE “HMRC BOBBIES”

A Swansea call centre worker who set up a company, purportedly to sell men’s designer underwear over the internet, as a front to conduct a VAT fraud has been jailed for two years and three months. The fraudster had attended a VAT seminar to better understand the tax system before submitting repayment claims exceeding £50,000 over a fifteen month period, a ruse that only worked briefly until HMRC pulled him up.

© Copyright 2017 haysmacintyre. All rights reserved.haysmacintyre is registered to carry on audit work and regulated for a range of investment business by the Institute of Chartered Accountants in England and Wales.

A list of partners’ names is available for inspection at 26 Red Lion Square, London WC1R 4AG.

Disclaimer: This datasheet has been produced by the partners of haysmacintyre and is for private circulation only. Whilst every care has been taken in preparation of this document, it may contain errors for which we cannot be held responsible. In the case of a specific problem, it is recommended that professional advice be sought. The material contained in this datasheet may not be reproduced in whole or in part by any means, without prior permission from haysmacintyre.

t 020 7969 5500

e marketing@haysmacintyre.com

w www.haysmacintyre.com

haysmacintyre

@haysmacintyre

haysmacintyre,

26 Red Lion Square,

London WC1R 4AG

ABOUT HAYSMACINTYREWe are a leading mid-tier firm of chartered accountants and tax advisers in central London, providing advice to entrepreneurs, fastgrowing and owner-managed businesses, charities and not for profit organisations across the UK and internationally.

As a mid-tier firm we’re large enough to provide a wide range of services, yet small enough to offer a personal, responsive approach.

As a founding member of MSI Global Alliance, one of the largest and most respected associations of independent legal and accounting firms, we are ideally placed to advise you on international matters.