IFRS for SMEs: Third Edition Released with Significant Updates
In 2024, the International Accounting Standards Board (IASB) released the long-anticipated third edition of the IFRS for SMEs Accounting Standard, marking the first major update to the framework since 2015. This edition brings the standard in closer alignment with full IFRS while preserving its simplified structure and suitability for small and medium-sized entities. The IFRS […]
Employment-Related Securities Reporting: Key Deadlines 2025
In the UK, any employer that provides employees or directors with shares or securities—whether as part of a formal share scheme or through ad hoc arrangements—is required to report these events to HM Revenue & Customs (HMRC) via an annual Employment-Related Securities (ERS) return. These rules apply regardless of whether the company operates a registered […]
International Tax Reforms: A Strategic Shift in UK Cross-Border Tax Policy
In a move that reflects both post-Brexit independence and global tax alignment efforts, the UK government has announced a package of proposed reforms to its international tax rules. These reforms—targeting transfer pricing regulations and the Diverted Profits Tax (DPT)—form part of a broader agenda to simplify the UK tax system, reduce unnecessary compliance for domestic […]
Revised Company Size Thresholds Take Effect from April 2025
The UK government has enacted a significant reform to company reporting rules by increasing the financial thresholds that define a company’s size for accounting and filing purposes. From 6 April 2025, businesses will see the turnover and balance sheet limits rise by approximately 50%, allowing thousands more companies to qualify for simplified reporting obligations under […]
Major Updates to UK GAAP: Revisions to FRS 102 and FRS 105 Effective 2026
The Financial Reporting Council (FRC) has published substantial amendments to FRS 102 (The Financial Reporting Standard applicable in the UK and Republic of Ireland) and FRS 105 (The Financial Reporting Standard applicable to the Micro-entities Regime). These changes are set to take effect from 1 January 2026, with early adoption permitted for financial statements prepared […]
Business Liquidations on the Rise: What’s Driving the Exit Trend Among UK Entrepreneurs?
In the 2024–25 tax year, the UK experienced a marked increase in voluntary business liquidations, with levels not seen since the height of the COVID-19 pandemic. This upward trend has raised concerns among economists, business advisers, and policymakers, as more entrepreneurs—particularly sole traders and owners of small private limited companies—choose to shut down operations and […]
Contractors Urged to Verify Subcontractors’ CIS Status
HMRC is urging contractors to regularly verify the Construction Industry Scheme (CIS) status of their subcontractors. The reminder comes as HMRC has identified instances of incorrect CIS tax deductions by some contractors. As part of its latest outreach campaign, HMRC is highlighting the need for contractors to: a. Verify all new subcontractors before making […]
HMRC Late Payment Interest Rates Revised After Base Rate Cut
The Bank of England Monetary Policy Committee announced on 1 August 2024 a reduction in the base rate from 5.25% to 5%. HMRC interest rates, which are linked to the Bank of England base rate, will subsequently be reduced for both late payment and repayment of taxes. The new HMRC interest rates will take effect […]
HMRC 2023/24 Reports: Record Revenues & KPI Underperformance
HMRC has released a series of reports analysing its performance in 2023/24, including the annual report and accounts, and a performance report against the charter. Tax Revenues Highest on Record The annual report for 2023-24 reveals that total tax revenues reached a record £843.4 billion, marking a 3.6% increase from the previous year. […]
Autumn Budget Announced for 30 October 2024
The Chancellor of the Exchequer, Rachel Reeves, has announced in the House of Commons that the Autumn Budget will be on 30 October 2024. The Budget will be accompanied by a comprehensive fiscal statement from the Office of Budget Responsibility (OBR). This announcement came as part of the Chancellor’s statement on ‘public spending inheritance’, with the Chancellor […]
Draft Audit Reform and Corporate Governance Bill Back On Agenda
Audit and corporate governance reforms have been placed on the new UK Government’s legislative agenda. The Draft Audit Reform and Corporate Governance Bill was included on the King’s speech earlier this month, following previous proposals by the Kingman Review (2018), the Brydon Review (2019), and the Competition and Market Authority’s (CMA) statutory audit market review […]
HMRC Issues Further Pillar 2 Guidance
In its third update on Pillar 2, HMRC has provided clarity on various aspects of the rules and outlined its plans for the coming months, including the next phase of its Pillar 2 online service. The multinational top-up tax (MTT) and the domestic top-up tax (DTT) have been introduced as part of the UK’s adoption […]
UK Firms Failing to Meet Anti-Money Laundering Standards
A HM Treasury report on anti-money laundering (AML) and counter-terrorist financing (CTF) has revealed that 18% of assessed financial services firms and over a third of accountancy firms were non-compliant with the regulations. The Financial Conduct Authority (FCA), which supervises approximately 18,000 financial services firms in the UK for AML/CTF compliance, found that 4% of […]