Member Since: 21st Apr 2004
22nd Jun 2017
This had occurred to me but I'd refrained from commenting. It does strike me that if the client places the accountant in a position of trust then the client should be made aware of the pros & cons.
I tend to focus on non compliance work and when I needed to look at this was pretty appalled at how poor and inflexible FRS105 is; but as you point out the alternative is putting remuneration and dividends on public record.
My thinking is that unless there is a commercial reason for having 'proper' accounts that FRS105 would be preferable for most micro entities on the grounds that reduced disclosure would outweigh the presentational defects (which most clients wouldn't care about).
I do think that dependency on supplier credit should be a commercial consideration as I can't see how a credit reference agency can glean useful information from a FRS105 balance sheet.
20th Jun 2017
Thanks for the replies. It does seem to me that businesses that need trade credit would need to think carefully. The lack of detail in the balance sheet, means that you can't even see what's in the bank -the liquidity of the assets can't be assessed.
The company I'm looking at has no need for any credit and there is a preference to keep disclosures on the public record to a minimum -so I think FRS105 -is the answer. Having said that as someone who was (in the dim & distant past) a technical partner I do think the FRS 105 formatting is garbage.
21st Feb 2017
Thanks that's helpful
21st Feb 2017
Why would they need to confirm? - it would simply be a revision of the estimated amount and interest would be payable if the estimate is wrong.
5th Jul 2016
Thanks for the replies the amount is about £1,200 - (I'd charged a substantially reduced rate as it's a not for profit for organisation and I wanted to help them out!)
The not for profit status makes me slightly reluctant to go legal - although I guess it probably is the right course of action.
18th Mar 2016
I'd love to see an article about this!
It strikes me that there different providers with different products and various pricing models - is there an article that compares the pros & cons?
20th Jul 2013
I've had a further look at the draft guidance BIM 46495 refers to integral features and when I read it in isolation I took it to mean that replacement of integral features in a dwelling house would be disallowed.
However, looking at the example in B46950 it says "As the property is a dwelling house, it does not qualify for capital allowances and so the integral features rules do not need to be considered". While this appears to confirm that allowances for white goods etc are no more, it also suggests that I was missing something in my previous post and the rewiring would be allowable.
It would be helpful if separate guidance was written specifically for residential lettings businesses!!
12th Jul 2013
I've been looking at the draft guidance in the context of a (very) recent refurbishment of an unfurnished letting. While the draft guidance gives an example of a like for like (or similar) kitchen replacement being a repair (as the building is the asset and kitchen is part of the building), it seems bizarre that rewiring a property is not allowable because it treated as an "asset on which capital allowances are given"- even though capital allowances can't be claimed for a dwelling house.
I realise that tax isn't always logical, but to me the inconsistency seems completely bizarre - am I missing something? Does anyone have any thoughts on this?
11th Jun 2013
Thanks very much for your reply. The HMRC web site says "A furnished property is one that is capable of normal occupation without the tenant having to provide their own beds, chairs, tables, sofas and other furnishings, cooker etc." I don't know what the basis for this is, but it sounds reasonable at least in layman's terms.
I'm not sure it changes the conclusion, but thought it may be of interest.
4th Jun 2013
Thanks -this may be of interest
Thanks I've just come across this which refers to the kitchen on page 8 http://www.hmrc.gov.uk/briefs/income-tax/draft-guidance.pdf