9am Lowdown: Harry Potter actor’s failed £1m quid-hitch

9am Lowdown
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In this morning's lowdown, Harry Potter's Rupert Grint's accountant couldn't work magic by changing the actor's accounting date, and a new firm has emerged to rival the Big Four.

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Harry Potter actor’s failed million quid-hitch

Harry Potter actor Rupert Grint has failed in his £1m tax refund appeal against HMRC.

According to the Guardian, Grint’s accountants Clay & Associates advised him to bring forward tax liability on eight months’ worth of income due in 2010-2011, when the top rate tax was increased from 40% to 50%.

By changing to the accounting date by 20 months, the actor would have saved 10% on income, which amounted to £1m.

Tax tribunal judge Mosedale said Grint failed to show a change had been effected under section 217 of the Income Tax.

Clarifying, Mosedale added “HMRC accepted that he had the right to change his accounting date. The dispute solely concerned whether he had done so within the meaning of the legislation.”

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New firm challenges Big Four

Deloitte’s former chief executive could be planning a rival to the Big Four, after Sky News discovered John Connolly is planning a handful of takeover deals.

John Connolly and the private equity group HgCapital have established Cogita group. The two parties have already invested in Blick Rotherberg, which Sky News believes will ultimately become part of Cogital group.

Connolly will take the chairman position of the new accounting company, setting his long term aspirations on challenging the Big Four, Sky News reports.

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ICAS joins forces with RBS

ICAS has partnered with RBS under a new agreement which encourages accountants and bankers to work together to help grow the SME sector.

Announcing the partnership, ICAS chief executive Anton Colella hopes the partnership will bring bankers and accountants closer together, which will help “firms serve their clients better”.

Scotland’s RBS chairman Malcolm Buchanan highlights why this relationship is more important than ever. “Increasingly, accountants are often working as business partners, with advisory services and even societal support seen as core responsibilities alongside duties such as financial reporting,” he said.

Commenting on the arrangement Colella added: "This partnership between Royal Bank of Scotland and the ICAS Practice Community brings our professional bankers and our professional accountants closer together to help our firms, to help the SME sector and to help grow the economy. 

About Richard Hattersley

Richard Hattersley

Richard is AccountingWEB's practice correspondent. If you have any comments or suggestions for us get in touch.

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10th Aug 2016 17:02

Re Rupert Grint, I agree with the comments in the link below that HMRC should accept accounts in any logical format and the computation itself should arguably be OK.
https://www.accountingweb.co.uk/any-answers/can-a-fianl-set-of-accounts-...

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14th Sep 2016 10:41

The erudite author of the article in the link below appears to agree with me here:
http://www.taxation.co.uk/Articles/2016/09/13/335358/wizard-accounting?u...

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