HMRC Targets Tradesmen who do not submit Tax Returns

The HMRC has announced that it will run campaigns this year to target higher rate taxpayers who fail to submit tax returns. In particular the HMRC have indicated that they will target tradesmen working in home improvement and direct selling businesses. Roofers, carpenters and joiners have been identified as key group the taxman will be pursuing for underpaid and undeclared tax. However, the HMRC will take a more lenient approach to taxpayers who make voluntary disclosures.

UK Accounting Standards to Converge with IFRS

The UK Accounting Standards Board (ASB) is proposing to converge UK accounting standards with IFRS. The proposal includes a 3 tier approach whereby listed companies (Tier 1) can opt to prepare their accounts under full EU-adopted IFRS. 

 Large and medium sized companies and the UK subsidiaries of listed companies will fall into Tier 2. Tier 2 companies will have the option of adopting full IFRS or reporting under the Financial Reporting Standard for Medium Sized Entities (FRSME). The FRSME is expected to be more in line with IFRS but with significantly reduced disclosure –which can run to as much as 2,000 pages under the full IFRS.

Small companies will report under the ASB’s FRSSE, which is similar to existing UK GAAP. The move will enable more consistent reporting within many UK and Global Groups. The new rules will come into effect in January 2015.

Government Standing by controversial Health Bill

The Prime Minister, David Cameron has pledged to stand by the governments controversial Health and Social Care Bill. The Bill aims to cut bureaucracy and boost efficiency by switching power over decision making to GP’s. Critics argue that this is an attempt to privatise the NHS and the move has been met by significant opposition. 

Many will be watching the move with interest. The NHS has long been dubbed as a black hole for government finances and has been stifled by layer upon layer of bureaucracy. Improving efficiency is essential but is something that has been met with little success in the past.