FDs HAVE SUPERPOWERS AND THESE UPDATES ARE WHY

Missed out on getting your superpowers at this year’s showstopping, knowledge-dropping FD seminar? Well have no fear we can bring you up to speed. Here’s an overview of what took place.

There’s even a link to a video of the event. It’ll be just like you were there along with over 100 FDs and FCs in Birmingham and East Midlands. They heard all about the changing financial landscape and what it means for their companies.

Economic update

Well, it’s a good job Mark Berrisford-Smith from HSBC gave lots of caveats at the start of his talk given the unpredictability of this current government. Since the FD seminar a whole host of things have changed, although the latest changes seem to have settled the markets.

The main thrust of Mark’s presentation was that, although it has been rocked by the events of the last few years, the UK economy is actually in better shape than might have been expected. Particularly when you consider we’ve had a global pandemic and an ongoing war in Europe. He was also clear that any prediction around what will happen in the near future is really hard. A lot depends almost entirely on what happens to energy prices. They’re really unpredictable and depend a lot on what happens in Ukraine. A difficult environment for anyone to run an economy in, or to predict one. Good luck to Rishi Sunak, Nadhim Zahawi, Kwasi Kwarteng or is it still Jeremy Hunt?

R&D claims

HMRC are clamping down significantly on what they perceive as fraudulent claims. Chris Knott, our Head of CP Innovation, talked us through really insightful data from HMRC regarding national and regional claim values and the approach HMRC are now taking to claims they believe to be fraudulent. HMRC are certainly baring their teeth on this subject now and anyone who has previously made an R&D claim needs to ensure they don’t get on the wrong side of them.

Technical update

FRS102 is going to be even more closely aligned with IFRS in future years, starting with revenue recognition and accounting for leases.

Mel Hopwell, one of our Audit Partners, explained the impact the changes will have on balance sheets and banking covenants. This will be a huge issue for any business that leases property and being on the front foot regarding the impact of the likely changes is vital. Mel also updated us on the Russian sanctions. The responsibilities we have to ensure we stay compliant with them and where we can get help if we’re unsure what we should and shouldn’t be doing

Tax update

The Chancellor’s mini-budget on 23^rd September caused tremors throughout the financial markets. Bijesh Morjaria, one of our Business Tax Directors, talked everyone through the Chancellors proposed changes, as well as the changes already gone back on before the seminar. He also warned that there could be more changes to come in the near future and he was proved right with the subsequent announcement of the Chancellor’s resignation and the appointment of Jeremy Hunt into the role

Despite the revolving door at Number 11, there are a number of changes to the UK tax environment that are coming into force in the near future. Bijesh explained what they were and their impact on businesses.

Ronak Shah, our Head of Capital Allowances, explaining how the new capital allowances super-deduction works and the often-unseen pitfalls with making super-deduction claims.

Nathan Woollery, our Head of Employment Taxes talked through upcoming changes to IR35 and ways businesses can reward their employees tax-efficiently. Take a look at the article he recently wrote managing your employment tax risk effectively. We can help you identify ways to create efficiencies and attract or retain the top talent in your sector.

Credit ratings

Recent years have seen relative turmoil with credit ratings. Covid then the Ukraine war have often led to businesses filing accounts with extraordinary results. They’ve then received adjustments to their credit scores which are often inconsistent between the different credit rating agencies and / or entirely unwarranted. The good news is that there are often things that can be done to correct or improve credit scores. James Piper, from Lightbulb Credit, talked us through the ways he can help, using his insight and experience of the sector.

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