Accounting Principles for Tax Purposes

Fifth Edition

By Lynne Oats, Bill Telford

This fifth edition of Accounting Principles for Tax Purposes bridges the gap between UK tax and accountancy and is the only work of reference that provides a guide through the complex maze of UK accounting principles, providing the key answers to interpreting accounts for tax and other purposes. This practical work is recognized in the tax profession as the bible for non-accounting professionals who have to use accounts in their work. The book has been completely updated to examine recent developments affecting the interface between accounting and tax rules and regulations. It is written for tax practitioners who wish to gain a better understanding of accounting rules in the UK, how these are applied in different circumstances to a set of financial statements, and what the resultant impact on the taxable profit is. The starting basis for tax computation for a business for either income tax or corporation tax is a set of accounts prepared in accordance with financial reporting standards. Her Majesty's Revenue and Customs (HMRC) employ a number of accounting specialists who consider whether the accounting treatment in a particular case is correct. While this is particularly prevalent for large companies, it is also a key issue for the smaller business. Accounting flaws will have an impact on the tax treatment and may well give HMRC grounds for discovery assessments. Since the publication of the previous edition in 2010, there have been a number of important developments. There is a fundamental change in the structure of UK accounting standards. For some time, the existing set of standards that comprises UK GAAP have been viewed as no longer fit for purpose. As a result, three new standards (FRSs 100-102) have been introduced and replace the existing standards as of January 2015. As they are loosely based on IFRS, accountants will have a range of issues to understand, from changes in terminology to presentational issues. The following cases are included: Smith vs HMRC (2011) STC 1724, where the recognition of income was queried * Greenback Holidays vs HMRC (2011) STC 1582, which focused on the definition and accounting treatment of goodwill * Greene King plc v HMRC (2012) UKFTT 385 (TC), which dealt with tax avoidance across different companies within a group and has major implications for tax advisors, taxpayers, and auditors.

400 pages

Publication Date: 5/31/2014
Format: Paper
ISBN: 9781780434551