FAO Accountants, particularly in Taxation !
Discussion
Hi,
For my work may I ask what are your views on Accountancy over the past 10 years, particularly, any significant events ?
I'm thinking along the lines of Enron, Rank Xerox and the changes to the Companies Act capping the liability of Auditors.
Any ideas gladly recieved.
Regards
Nathan
For my work may I ask what are your views on Accountancy over the past 10 years, particularly, any significant events ?
I'm thinking along the lines of Enron, Rank Xerox and the changes to the Companies Act capping the liability of Auditors.
Any ideas gladly recieved.
Regards
Nathan
I have to ask, why?
Over the past ten years we have seen the gradual decline of auditing as a central activity, especially for smaller firms of accountants who tend to deal with companies that can avail of the audit exemptions. However, despite the reduction in audit work, COMPLIANCE work has actually increased as more and more reporting requirements and disclosures are forced onto small companies.
Also, with the advent of Self Assessment taxation, accountants now have to work to much more narrowly defined deadline dates, which can produce intense pressure, especially in the run up to the end of January each year.
Company taxation, especially for smaller companies, has become more complex as the Revenue try more and more to prevent small companies from exploiting some of the tax advantages of being a small company. The situation is becoming ludicrous, Gordon Brown has changed the basis of small company taxation of profits and dividends FIVE times in his nine years as Chancellor.
More and more accountants now use dedicated accounting and taxation software - which is now very versatile, fast and generally accurate. Frankly, we couldn't cope with modern complex tax and reporting requirements without it. However, I do have reservations about the fact that maybe some of these computations and disclosure complexities have come about simply because we all know that most of the nitty gritty elements will be dealth with by the software. Complexity breeds complexity, I think.
Over the past ten years we have seen the gradual decline of auditing as a central activity, especially for smaller firms of accountants who tend to deal with companies that can avail of the audit exemptions. However, despite the reduction in audit work, COMPLIANCE work has actually increased as more and more reporting requirements and disclosures are forced onto small companies.
Also, with the advent of Self Assessment taxation, accountants now have to work to much more narrowly defined deadline dates, which can produce intense pressure, especially in the run up to the end of January each year.
Company taxation, especially for smaller companies, has become more complex as the Revenue try more and more to prevent small companies from exploiting some of the tax advantages of being a small company. The situation is becoming ludicrous, Gordon Brown has changed the basis of small company taxation of profits and dividends FIVE times in his nine years as Chancellor.
More and more accountants now use dedicated accounting and taxation software - which is now very versatile, fast and generally accurate. Frankly, we couldn't cope with modern complex tax and reporting requirements without it. However, I do have reservations about the fact that maybe some of these computations and disclosure complexities have come about simply because we all know that most of the nitty gritty elements will be dealth with by the software. Complexity breeds complexity, I think.
Edited by Eric Mc on Monday 20th November 22:31
I'm with Eric MC if maybe you were to give more clues about the end use of the document maybe I could add something. However with no idea of the focus and without sitting here all night and listing things in detail it is hard to provide much user focus (to give you a tiresome management speak buzzword)
If you are looking more at audits. Small charities are still audited either due to funder's requirements or because they have exceeded a very low income threshold of £250K.
The administrative burden and auditing cost for these charities has risen sharply, due to new Charities accounting standards (Sorp 2005) and new auditing regulations (IAS). Many of the requirements of these standards may not be relevant at all to a small charity and lead to a large part of their time and money being spent on accounting & compliance issues.
The administrative burden and auditing cost for these charities has risen sharply, due to new Charities accounting standards (Sorp 2005) and new auditing regulations (IAS). Many of the requirements of these standards may not be relevant at all to a small charity and lead to a large part of their time and money being spent on accounting & compliance issues.
It would take FAR too long to do that, there have been so many.
For starters -
Income Tax Self Assessment (fully implemented in 1995/96).
Corporation Tax Self Assessment
The abolition of the old Schedular ssytem of tax
Fundamental ways in which dividends are taxed and the nature of attached tax credits
Tax credits and their vast complexity
Multiple changes to pension legislation and related tax reliefs
Changes to the Capital Gains Tax system - the aboltion of Indexation for individuals and the introductoin of taper relief
The replacemnent of Stamp Duty with Stamp Duty Land Tax
Greater emphasis on anti-avoidance schemes
IR35 for personal service companies
Abolition of cash accounting for solicitors and other professionals
Construction Industry Sub Contractors scheme changes in 1998 and more fundamental changes next April
And they're the ones I can think of off the top of my head.
For starters -
Income Tax Self Assessment (fully implemented in 1995/96).
Corporation Tax Self Assessment
The abolition of the old Schedular ssytem of tax
Fundamental ways in which dividends are taxed and the nature of attached tax credits
Tax credits and their vast complexity
Multiple changes to pension legislation and related tax reliefs
Changes to the Capital Gains Tax system - the aboltion of Indexation for individuals and the introductoin of taper relief
The replacemnent of Stamp Duty with Stamp Duty Land Tax
Greater emphasis on anti-avoidance schemes
IR35 for personal service companies
Abolition of cash accounting for solicitors and other professionals
Construction Industry Sub Contractors scheme changes in 1998 and more fundamental changes next April
And they're the ones I can think of off the top of my head.
Have to say, the initial post didn't appear to be much to do with taxation!!!
Is it tax you're interested in or changes in accountancy?
Taxation would be solely based on the country in question, whereas accounting could be more broad ranging.
Biggest thing out of Enron et al would be SOX would it not?
Is it tax you're interested in or changes in accountancy?
Taxation would be solely based on the country in question, whereas accounting could be more broad ranging.
Biggest thing out of Enron et al would be SOX would it not?
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