In Practice January 2020

In Practice January 2020 INSIDE THIS ISSUE 1. New AIA brand 2. AIA’s anti-money laundering update.

3. The latest CPD events, online seminars and news from the accountancy profession.

4. Spotlight On: The UK Financial Intelligence Unit

THE LATEST TECHNICAL INSIGHTS, NEWS AND SUPPORT FOR AIA MEMBERS IN PRACTICE

`

NEW BRAND LAUNCH It’s been a long time in the making, but we are now delighted to share our new rebrand with you following its official launch on 3 February.

Careful consideration has been taken throughout the rebrand process in order to not lose our identity; consciously maintaining selected brand elements from our rich heritage, and at the same time amalgamating in a vibrant new primary colour with a revitalised modern look, tone of voice and dynamic feel. We strongly believe in our new brand and we envisage it being with us through to our next major milestone; our 100th anniversary in 2028!

Throughout the process we have worked on the philosophy that change is good, but never to the detriment of what we have grown and nurtured over many, many years.

Members in Practice can now access the new logo and brand guidelines via the Secure Document Library in My AIA. https://aia-website.azurewebsites.net/my-aia

“Our brand is an integral part of the Associations marketing and development strategy and a significant part of how we interact with our members, students and other key stakeholders.�

2

`

FIFTH ANTI-MONEY LAUNDERING DIRECTIVE COMES INTO FORCE The Fifth Anti-Money Laundering Directive (5MLD) comes into force today and introduces the requirement for 'obliged entities', including AIA Members in Practice, to report certain information discrepancies to Companies House.

From 10 January 2020, all obliged entities must tell Companies House if there’s a discrepancy between the information that they hold about a beneficial owner and information on the Companies House people with significant control (PSC) register.

The requirement extends to any obliged entity required to carry out customer due diligence under anti-money laundering regulations.

The accountancy sector is currently drafting updated guidance on the regulations, which will then require HM Treasury approval before being released to members.

For further information click here.

A report is required if a discrepancy is found when a new business relationship is being set up between an obliged entity and a customer as from 10 January 2020.

CPD

NEWS

PERSONAL TAX

31 MILLION TAXPAYERS TO GET APRIL TAX CUT

P1171 Personal tax round up (Dean Wootten) P1172 Reversal of a main residence decision (Robert Jamieson) P1173 Who wants to be a millionaire? (Robert Jamieson) P1174 Making tax easier for Trusts and Estates (Robert Jamieson) P1175 Case study on establishing UK residence (Ros Martin) BUSINESS TAX B1171 Business tax round up (Dean Wootten)

31 million taxpayers are set to get a tax cut in April, the Chancellor has announced, due to new legislation laid in Parliament on 30 January 2020.

The government is today setting out the National Insurance thresholds for 202021, with the level at which taxpayers start to pay NICs rising by more than 10 per cent to £9,500 per year for both employed and self-employed people.

Read More …

B1172 Major change in nature or conduct of trade - The basics (Kevin Read) B1173 Major change in nature or conduct of trade F(No.2)A 2017 (Kevin Read) B1174 Input tax recovery on entertaining - or not! (Neil Warren) B1175 Cosmetic or medical care? (Neil Warren) AUDIT AND ACCOUNTING A684 Intangible assets and goodwill (John Selwood) A685 Government grants (John Selwood) A686 Events after the reporting period (John Selwood) A687 Small company exemption thresholds (John Selwood) A688 IFRS 9 Financial instruments (John Selwood) A689 Ethical issues for auditors - common problems (John Selwood) A690 Audit exemption for subsidiary companies - a reminder (John Selwood) A691 Going concern requirements strengthened (John Selwood) A692 Attendance at stocktakes (John Selwood) A693 Modified auditors' reports (John Selwood)

LETTERS TO BUSINESSES ABOUT TRADE ARRANGEMENTS AFTER THE UK HAS LEFT THE EU Letters have been sent to VAT-registered businesses trading with the EU, or the EU and the rest of the world. They explain actions to take to prepare for changes to customs arrangements after the transition period, including: • •

getting a UK Economic Operator Registration and Identification (EORI) number customs facilitation

There will be no changes to the terms of trade with the EU or the rest of the world during the transition period. Businesses can keep up to date with these changes by registering for HMRC’s email updates.

Read more …

SPOTLIGHT ON: THE UK FINANCIAL INTELLIGENCE UNIT (UKFIU) Money laundering underpins and enables most forms of organised crime, allowing crime groups to further their operations and conceal their assets. Although there are no exact figures there is a realistic possibility that the scale of money laundering impacting the UK annually is in the hundreds of billions of pounds.

Clicking here will take you straight to the UKFIU page where you can find useful information on money laundering and illicit finance.

The UK Financial Intelligence Unit (UKFIU) has national responsibility for receiving, analysing and disseminating financial intelligence gathered from Suspicious Activity Reports. SARs are a critical intelligence resource for tackling money laundering, terrorism, serious and organised crime, corruption and fraud.

The UKFIU receives over 460,000 SARs a year. Virtually all of the SARs data is shared with UK law enforcement through a secure channel, enabling visibility of over two million SARs that can be used to deliver impact against crime threats.

Submitting a SAR protects you, your organisation and UK financial institutions from the risk of laundering the proceeds of crime.

Useful reference documents SARs Annual Report 2019 SARs Reporter Booklet (December 2019) SAR Glossary Codes and Reporting Routes (November 2019) DAML FAQ – SARs regime good practice

Incorrect use of SAR glossary codes SARS IN ACTION – ISSUE 3 – NOVEMBER 2019 SARs in Action is a UKFIU publication aimed at all stakeholders in the Suspicious Activity Reports (SARs) regime.

This issue contains articles and intelligence from challenger banks, partner agencies and SARs exploitation, case studies and regime news. https://www.nationalcrimeagency.gov.uk/who-we-are/publications/391-sars-in-action-november2019/file

SARS QUALITY You can view AML webinars focussing on good quality SARs at https://www.gov.uk/guidance/help-and-support-for-anti-money-laundering

or read AIA’s article on Suspicious Minds and reporting suspicious activity here: https://issuu.com/aiaworldwide/docs/ia_108/s/10122686

MODERN SLAVERY HUMAN TRAFFICKING (MSHT) You can view a full-length Panorama documentary on BBC iPlayer relating to slave gangs in Britain and the red flags associated with Modern Slavery here: https://bbc.co.uk/iplayer/episode/m00085r7/panorama-the-hunt-for-britains-slave-gangs Useful contacts Defence Against Money Laundering (DAML)

All contact with the UKFIU DAML team is via email: DAML@nca.gov.uk

Queries regarding SAR online / general enquiries

Telephone: 0207 238 8282 – option 2 or 3

Queries related to disclosures concerning terrorist financing

UKFIUTFT@nca.gov.uk

Feedback on guidance provided or ideas for the UKFIU magazine

ukfiufeedback@nca.gov.uk

Email: ukfiusars@nca.gov.uk

You can follow the UK’s Financial Investigation Unit on twitter using @NCA_UKFIU For more information on Anti-Money Laundering and SARs, please visit the ‘Anti-Money Laundering Resources’ file within the Secure Document Library of MYAIA. https://aia-website.azurewebsites.net/my-aia