50+50 extension plus UK R&D tax credit challenges, EY graduate hire delays and worsening HMRC customer service wait time
Accountancy Age
Accountancy Age is the accountancy profession's leading source of news and analysis.
Weekly Edition| By Rachael Kennedy
Welcome to your latest Accountancy Age's Weekly Digest, your go-to source for?the week's top insights and updates tailored for accountants. As you start a busy week, we’ve curated the most valuable content to keep you informed and ahead of the curve. In this issue, you'll find:
Due to high demand, we're also pleased to announce an extension for entries to Accountancy Age's 50+50 - a ranking of the top 100 accounting firms in the UK. The new deadline is November 1st 2024. Fill out your entry here .? We’re here to ensure you stay informed, inspired, and ready to tackle the week ahead.
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TOP READS
Is the R&D tax credit regime still fit for purpose?
Nigel Layton, Partner, Forvis Mazars
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The UK's R&D tax credit regime, a cornerstone of innovation support for nearly 25 years, is facing a critical juncture as HMRC's intensified anti-fraud measures inadvertently threaten its effectiveness. While addressing the staggering ￡4.1 billion loss in tax revenues due to fraud is crucial, the stricter approach has created unintended barriers for legitimate claimants, particularly SMEs, potentially undermining the scheme's core objective of fostering innovation. The resulting decline in SME claims, coupled with the risk of driving innovative companies to seek support overseas, poses a significant threat to the UK's ambitions in key sectors like pharmaceuticals and life sciences. A delicate balancing act is required to combat fraud while ensuring efficient support for valid claimants, necessitating a reassessment of the regime to align it with its original policy objectives. Despite these challenges, the substantial support provided by the scheme underscores its continued importance, calling for a shift in focus from fraud prevention to encouraging and supporting the innovative businesses it was designed to benefit. Read More
?NEWS
?EY delays graduate hires as advisory business slows
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领英推荐
?EY's decision to delay start dates for approximately 200 new graduates joining its strategy advisory arm, EY-Parthenon, reflects broader challenges facing the consulting industry in a post-pandemic landscape. The move, attributed to slower-than-expected revenue growth in advisory services due to a sluggish M&A and private equity market, underscores the difficulty firms face in accurately forecasting future needs amid shifting economic conditions. While EY is offering stipends to affected graduates, the decision highlights the delicate balance consulting firms must strike between maintaining their talent pipeline and adapting to current market realities. The broader industry trend of stagnant starting salaries and reduced internship slots further illustrates the sector's cautious approach. Despite these challenges, industry leaders remain optimistic about future prospects, particularly in anticipation of increased private equity activity as interest rate clarity improves. This situation exemplifies the consulting industry's ongoing struggle to navigate uncertain economic waters while preparing for potential future growth. Read More
INSIGHTS
Taxpayers spent over 700 years on hold with HMRC as wait times worsen
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?HMRC's customer service crisis has reached alarming levels, with UK taxpayers collectively spending over 719 years on hold in the year ending June 30, 2024. The average call wait time has surged to 27 minutes and 2 seconds, a 19% increase from the previous year, while only 42% of calls are actually handled by an advisor. This deteriorating service not only frustrates taxpayers but also increases the risk of late filing and payment penalties, potentially hindering HMRC's ability to resolve tax issues and collect due taxes efficiently. The situation has led to a 65% increase in customer complaints and significant compensation payouts by HMRC. Experts are calling for increased government funding specifically targeted at improving HMRC's customer service, emphasizing the need to prioritize this over additional resources for tax investigations. As the crisis deepens, there is mounting pressure on the government to address these unacceptable wait times and reform HMRC's customer service capabilities. Read More
EXPERT INSIGHT
Self Assessment: It’s time for Sage for Accountants
A Sage for Accountants plan for your practice mean you can onboard clients with Sage Accounting at incredible discounts. Learn More
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