Stop The Merger

Tax Matters - Michael Izza

noreply@blogger.com (Ken) — Wed, 04 Nov 2009 06:44:27 PST

Michael Izza is interviewed by AccountingWEB:

"Q: In the ICAEW's Enterprise survey, 54% of respondents said UK regulatory and tax environment was 'not very' or 'not at all' business friendly. Employment tax and legislation and business tax changes were all regarded a hindrance. Why do you think businesses responded so negatively and what do you think can be done to improve the situation?

A: This is a constant refrain, and we hear this from businesses of all sizes. We have a great opportunity this year because we're moving into the last few months of this government, there has to be an election no later than June 2010 and this is now the time when business people of all sizes can start to talk to their MPs (or prospective MPs) about the things that bother them and the legislative changes they would like to see.

The institute has issued a manifesto and that was something we were talking to politicians about at the three main party conferences in September and October. One of the themes in it is that we need a more simplified government in this country. An area which I'm sure many of your members will be familiar with is the tax code. The tax code in this country now runs to over 11,200 pages.

There is nobody in HMRC who understands that from A-Z. There is no chartered accountant in this country who understands it from A – Z, it's just become too complicated. We have an opportunity to make something like that more simple, for everyone in business. This is the sort of thing we should be talking to the politicians about now and saying we want to see it changed.

We're at one of those moments in history where because of the economic crisis that we've just experienced and the fact that things are going to be very different going forward, we might be able to make a very significant change in something like that; and that's the sort of thing the institute is going to be asking for".

I fully agree wrt simplification. However, this is something that the ICAEW should have been calling for way back, not "going to be asking for"!

Bangladesh

noreply@blogger.com (Ken) — Wed, 28 Oct 2009 05:06:29 PDT

Accountancy Age reports that a deal has been made between the ICAEW and the Institute of Chartered Accountants of Bangladesh (ICAB) wrt developing the profession.

"Both will look at examining requirements allowing members of one body to access the other."

I assume that any inter institute membership, if it occurs, will be structured in such a way as to ensure that the brand value of the ICAEW qualification will not be diluted.

In From The Cold

noreply@blogger.com (Ken) — Fri, 09 Oct 2009 02:59:35 PDT

Ernst & Young will take ICAEW students again, having abandoned the ICAEW at the turn of the century in favour of ICAS.

However, Ernst & Young will continue to use ICAS.

Gerson Lehrman News

noreply@blogger.com (Ken) — Fri, 04 Sep 2009 02:42:25 PDT

Off topic, I write articles covering business issues for Gerson Lehrman News, and am an Accounting & Financial Analysis Council Member (AFA Council Members include CFOs, former top regulatory body officials, partners from the world's leading accounting firms, academics, forensic accountants, and other financial executives).

The news articles can be accessed via this link Gerson Lehrman News.

Online Community

noreply@blogger.com (Ken) — Thu, 13 Aug 2009 03:21:43 PDT

Accounting Web reports that the ICAEW is to launch a new online community for accounting students.

The site will offer information and guidance on relevant topics to support ACA and CFAB students, as well as containing a forum where members can swap tips and network. Membership will be open to all ACA or CFAB students, including those outside the UK.

Good idea, when will there be an online community for qualified members of the ICAEW?

Update: I stand corrected, it seems that there are some non student communities; evidently I have either been asleep for the past few months, or ICAEW did not publicise these very well.

The list of communities can be accessed via this link www.ion.icaew.com

Madden Leaves

noreply@blogger.com (Ken) — Fri, 17 Jul 2009 05:10:56 PDT

Accountancy Age reports that Dr Raymond Madden, executive director for learning and professional development of the ICAEW, is leaving his post this week without warning.

His duties have been taken on by Mark Protherough, director of learning and professional development at the institute.

The sudden departure was, seemingly, unexpected.

Tax Investigation Insurance - Taxwise

noreply@blogger.com (Ken) — Wed, 08 Jul 2009 02:47:46 PDT

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-Now covers business's with an annual turnover of up to £10 million

To find out more, please use this link Taxwise

Diluting The Brand

noreply@blogger.com (Ken) — Sat, 04 Jul 2009 02:58:31 PDT

A fellow member of the institute wrote to me today, voicing his fears over the dilution of the ICAEW brand wrt less demanding entry requirements for members of the profession who qualified in India and Pakistan.

"I recently discovered that ICAP(Pakistan) members just need to pass ICAEW 4 papers to become ICAEW members. Moreover ICAP members do not need to undergo any training with ICAEW ATO.

In past (until last wk) ICAP members needed to pass ICAEW 4 papers plus undergo 2 yrs training with ICAEW ATO to become ICAEW member, but now ICAP members do not need to undergo any training.

I do not know why ICAEW is giving its membership of other institutes members in this way. If ICAEW does not want other institute's members to undergo any training in ICAEW ATO (which is main strength of ICAEW), then I have to say merger with ACCA is a better option....

ICAEW has given more relaxation to ICAI(India) members."

Anyone from Moorgate care to comment?

Tax Investigation for Dummies

noreply@blogger.com (Ken) — Tue, 16 Jun 2009 07:50:01 PDT

Tax Investigation for Dummies provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to find out more: Tax Investigation for Dummies

Wake Up!

noreply@blogger.com (Ken) — Thu, 19 Mar 2009 05:50:21 PDT

Today (19 March 2009) I received an ICAEW Alert, on which was a link to Michael Izza's blog where he wrote a piece about HMRC customer service levels (dated Friday 13 March).

Here is an extract:

"Due to the Select Committee's timescales, the Tax Faculty is working to a very tight deadline and needs the survey completed by 9.30am Monday 16 March 2009."

Can you spot the problem here?

Yes, that's right, the deadline has long since passed!

Why alert us to a survey, that many memebrs of the ICAEW would have happily contributed to, after the deadline?

Elected To Serve?

noreply@blogger.com (Ken) — Thu, 12 Mar 2009 06:34:24 PDT

I can appreciate that Tony Lomas has been a wee bit too busy recently to attend ICAEW Council (absent for six meetings in a row).

However, given that he evidently has other more pressing commitments, please could he explain why he wishes to remain on council?

The purpose of council, wrt the membership of the ICAEW, is what precisely?

See Accountancy Age for the background to this.

Brand Rules Out Merger

noreply@blogger.com (Ken) — Tue, 27 Jan 2009 04:04:49 PST

The Financial Director reports that ACCA CEO, Helen Brand, has all but ruled out the possibility of a merger with another industry body.

She is quoted:

"M & A activity has traditionally been seen to divert organisations from their strategy and take up lots of resources and time and effort."

Quite!

A Nice Little Earner

noreply@blogger.com (Ken) — Thu, 15 Jan 2009 05:30:32 PST

The ICAEW has fined members for the first time for failing to meet the requirements for continuing professional development.

Source Accountancy Age.

I recall, many many years ago, forgetting to pay my annual membership fee (mea culpa!) and (despite apologising profusely for my error) being charged approximately £400 by the ICAEW for the privilege of being "readmitted".

Suffice to say my membership fee is now paid by direct debit!

A Small Step Forward

noreply@blogger.com (Ken) — Thu, 04 Dec 2008 07:10:59 PST

Is it possible that this is the first tentative step towards merging ICAS and ICAEW (two equally prestigious professional bodies)?

See Harmonisation of Qualifications

I would welcome that.

About Time!

noreply@blogger.com (Ken) — Mon, 06 Oct 2008 03:22:23 PDT

The ICAEW is looking at plans to slash its 100 strong council, after meetings in which some members had to sit on the steps because there were no seats.

The council met yesterday to give its views on the plans, with proposals set to be brought forward, possibly for a vote in the middle of 2009.

There are more council members than there are seats in the council chamber, and there are feelings that the number of people makes it very hard for all members to put their views across in debates.
‘Some people feel that a council of over 100 people is getting a bit unwieldy.

‘If everyone were to say their halfpennyworth, every single item would last several hours.’ one council member told Accountancy Age.

Source Accountancy Age

Have I not been saying this for several years now?

It is a pity that it is the lack of seats that has prompted the ICAEW to address this issue.

I suppose we should be grateful that they did not propose building a larger council chamber!

Piffle!

noreply@blogger.com (Ken) — Mon, 15 Sep 2008 02:51:41 PDT

Vince Cable spoke at a fringe meeting in Bournemouth, organised by the local ICAEW.

At the meeting he said that tax avoidance is "deeply corrosive of the ethical basis of taxation".

Piffle!

We all practice tax avoidance, via using personal allowances.

Avoidance is legal and ethical.

Evasion is illegal and unethical.

I hope the ICAEW pointed that out to him?

The March of The Technocrats

noreply@blogger.com (Ken) — Thu, 28 Aug 2008 04:55:08 PDT

Could it be that assurance reviews are no longer the "enjoyable" experience that they once were for the reviewees?

According to Accountancy Age it would seem not.

They quote one senior member of the profession as saying that:

"They [those who have passed the assurance visits] are not given positive reviews unless they are so technically competent that they speak in a technical way all the time. There’s a difference between being technically competent and knowing what the standards say and being able to apply them. But applying the rules requires judgment.

But they [the QAD inspectors] just talk in the standards..if you can't reply in a similar vein, they think you’re an idiot.

Perhaps this is why people are no longer enjoying audits at smaller firms. But we still need a balance between small and large firms."

Could it be that the ICAEW is allowing itself to continue to drift apart from its real world members, and only feed the needs of the large firms?

Why do individual accountants need to belong to the ICAEW, aside from the rule that states you cannot call yourself an FCA without belonging to the ICAEW (and paying the annual subscription)?

What do the ordinary members actually get for their money, aside from a nice certificate in a cardboard tube?

The ICAEW Carbon Footprint

noreply@blogger.com (Ken) — Thu, 24 Jul 2008 02:29:43 PDT

This just in from the ICAEW:

"As part of our ongoing commitment to reduce the Institute's carbon footprint you will now be able to receive, by email, notification of your annual subscription and profile."

LOL!

Surely going online to fill in these forms will use more electricity, thus adding to greenhouse gases etc?

If the ICAEW really wants to reduce the amount of hot air in the world their time would be better employed cutting council down to 12 members or less.

Doomed To Failure

noreply@blogger.com (Ken) — Thu, 17 Jul 2008 03:23:15 PDT

I agree with Damian Wild when he says that the campaign to "prevent unqualified accountants, tax and financial advisers providing services unless they have professionally recognised qualifications" is doomed to failure.

As he says:

"What do you do with the thousands of unqualified accountants who have offered sound advice for years?

Do the institutes offer an olive branch and a grandfathering scheme?

Or simply cast them adrift?

Who would oversee a new regime?

The Financial Reporting Council sees it as impossible to police and expensive to coordinate. So who would do it?"

The experience, quality, qualifications of the accountant and the professional body to which he/she belongs should guide the seeker of services to make a well informed choice as to who should provide their accountancy services/advice.

We do operate in free market, don't we?

Lib Dems Hire ICAEW

noreply@blogger.com (Ken) — Mon, 07 Jul 2008 03:42:56 PDT

Congratulations to the ICAEW for winning an engagement offered by the Liberal Democrats, to audit their expenses.

Lib Dem MPs will have their receipts studied by the ICAEW in regular spotchecks.

I hope that the money earned will be used to offset future membership fee increases that are no doubt planned by the ICAEW.

Tax Safeguards

noreply@blogger.com (Ken) — Fri, 06 Jun 2008 02:59:08 PDT

I wish David Furst (the new ICAEW president) and the ICAEW well as they campaign to insert safeguards against new HMRC powers in the finance bill.

I hope that the campaign is assertive and vocal, and that the ICAEW stands up for itself.

Award Nomination

noreply@blogger.com (Ken) — Mon, 19 May 2008 07:20:22 PDT

I am pleased to announce that HMRC Is Shite has been nominated for the New Statesman New Media Awards 2008.

The New Statesman, Britain’s leading political magazine is delighted to announce that HMRC Is Shite has been nominated for a New Media Award in the category of Campaign For Change. The campaign for change award will go to the individual or organisation that has most effectively influenced opinions and behaviour through the use of new media technology. The winner of this award will champion a cause and provide information and tools to instigate change.

The full press release can be downloaded here.

Cost Saving Suggestion

noreply@blogger.com (Ken) — Wed, 14 May 2008 01:57:05 PDT

Given that the ICAEW made a loss of £1,909K in 2007, I assume that they are looking for ways of saving money in order to avoid raising my members' subscriptions (oh, my mistake, we are being asked to vote for an increased in subs of 4%).

I note that the accounts state that communications expenditure increased by 71%, mainly due to the provision of Accountancy to all members. I can't see in the accounts how much the figure actually is though.

Given that all the qualified accountants that I know simply throw the magazine in the bin, unopened.

Why not stop sending out accountancy to members?

Loss

noreply@blogger.com (Ken) — Thu, 08 May 2008 09:08:47 PDT

The ICAEW made a large loss in 2007

Net result before JDS £1,750K (2007) £5,433K (2006)
Funding of JDS £3,389K (2007) £1,671K (2006)
Net result after tax £(1,639)K (2007) £3,762K (2006)

The result is particularly poor given that income increased from £63,615K in 2006 to £69,052K in 2007, a rise of 8.5%.

It seems that "A substantial part of the Institute's expenditure was as a result of investment in people, with headcount increasing by 9.8% to 594".

Why do they use the Nu Labour word "investment", when we all know that they mean cost?

It is a sad indictment of our profession that a council and board of over 100 accountants cannot at least manage to break even.

I assume that we may expect further increases in our subscriptions.

Reputation

noreply@blogger.com (Ken) — Tue, 06 May 2008 03:27:29 PDT

I see that The Guardian has taken a snide sideswipe against accountants, in its coverage of its row with Tesco over tax avoidance.

"As is often the way, the tax had no sooner been introduced than some companies engaged smart accountants and lawyers to work out ways of avoiding what parliament had clearly intended....

But fleet-footed accountants and lawyers were still nimbler, knowing that UK tax legislation is rarely retrospective. A casual reading of the Treasury's repeated statements on SDLT avoidance can leave no doubt as to its frustration at the lengths to which companies would go to outwit the law - and at the sums draining away from the exchequer as a result."

Seemingly, the negative subliminal message being drip fed by the Guardian is that "smart" accountants are rather "devious" and are depriving the government of its "legitimate right" to collect as much tax as it wants.

The Guardian needs to remember that, as I have said before on www.hmrconline.com, tax avoidance is not illegal; we all avoid tax each year by using personal allowances.

The need to avoid tax would be considerably reduced if Brown simplified the tax system.

The ICAEW needs to launch a counter offensive, and counteract the Guardian's negative spin about our profession.