Ded­i­cated team helps to make tax sim­ple

Halifax Courier - - Business -

Wel­come to our monthly tax newsletter de­signed to keep you in­formed of the lat­est tax is­sues. We hope you en­joy read­ing the newsletter; re­mem­ber, we are here to help you, so please con­tact Adrian Broad­bent or any of our team mem­bers for any as­sis­tance.

Changes to au­dit thresh­olds for Char­i­ties

The gov­ern­ment has an­nounced the fol­low­ing changes to the au­dit thresh­old for char­i­ties with ac­count­ing pe­ri­ods end­ing on or af­ter 31 March 2015:

In­creas­ing the in­come thresh­old from £500,000 to £1 mil­lion

In­creas­ing the ag­gre­gate group in­come thresh­old at which par­ent char­i­ties should have group ac­counts au­dited from £500,000 to £1 mil­lion

In­creas­ing the prepa­ra­tion thresh­old for group ac­counts from £500,000 to £1 mil­lion

Adding the In­sti­tute of Fi­nan­cial Ac­coun­tants (IFA), sub­ject to the sub­mis­sion of ap­pro­pri­ate ev­i­dence, to the list of recog­nised pro­fes­sional ac­coun­tancy membership bod­ies whose ap­pro­pri­ately qual­i­fied mem­bers can carry out in­de­pen­dent ex­am­i­na­tions of the ac­counts of char­i­ties with in­comes that are more than £250,000

In­ter­est­ingly, the gov­ern­ment in­tends to leave the in­come and as­set com­po­nent of the as­set thresh­old un­changed at this point in time, i.e. as­sets worth more than £3.26 mil­lion and in­come of more than £250,000 (to­gether, “the as­set thresh­old”).

Changes to au­dit thresh­olds for Com­pa­nies

One in five medium-sized ac­count­ing firms reckon that about half of their clients will de­cide not to have an an­nual au­dit af­ter the turnover thresh­old for hav­ing an au­dit is in­creased in 2015, re­search sug­gests.

Cur­rently, busi­nesses with gross as­sets of less than £3.26m, or turnover less than £6.5m are not re­quired to get an au­dit.

When an EU ac­count­ing di­rec­tive is in­tro­duced in the UK, in early 2015, th­ese thresh­olds are ex­pected to in­crease to £5m-plus and £10m re­spec­tively.

As a holder of a prac­tis­ing cer­tifi­cate with the In­sti­tute of Fi­nan­cial Ac­coun­tants we will be able to save com­pa­nies and char­i­ties who qual­ify for the new ex­emp­tions on their present ac­count­ing fees.

Adrian Broad­bent

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