The disruption caused by the Arctic Systems case, which has thrown small
businesses’ tax planning into disarray this month, could reappear in a year’s
time, a key player has warned.
Geoff Jones, the director of Arctic whose salary and dividend payments
provoked the row, told Accountancy Age that the legal process, launched
by HM Revenue & Customs last Friday might not come to a close until this
time next year.
The delay would create more problems for small family businesses when
completing their tax returns next year.
HMRC said on Friday it would be submitting a petition to appeal in the case,
in which it is trying to clamp down on companies it feels are avoiding tax.
The case surrounds the practice of paying profits earned by one spouse in a
business disproportionately to the other through dividends, to maximise
available allowances and tax rates.
Jones said: ‘I have been led to believe it could take as long as a year. If
that’s right, it could run right up against the buffers again next year.
‘It’s possible there will be this mad rush again,’ said Jones.
The Financial Reporting Council has issued guidance regarding the annual reporting of 1,200 large and smaller listed companies. The letter highlighted the key issues and improvements that can be made in the 2016 reporting season
Baldwins Accountancy Group has continued investment in the north-east and appointed David Fish as a director in its corporate finance team
UK M&A activity bounced back strongly in July and August, according to analysis by the deals practice at PwC.
Smith & Williamson has added Jim Clark and Philip Marsden, of Marsden Clark Corporate Finance Limited, to its corporate finance team.