Audit exemptions and useful links

Audit exemptions

The main restriction on the work that can be undertaken by members of AAT is the audit threshold. Anyone can prepare the accounts. However, if the company requires an audit then that must be signed off by a registered auditor. Charities can either be audited or undertake a form of audit called an independent examination. Whether an audit is required depends on the company or charity’s turnover or gross income.

Contact details and helplines

Useful documents and links

If you provided the accounts that you have prepared to be sent, in support of a mortgage application or loan, to a bank or building society then you may find this covering letter useful.

Accounting Standards (IFRS Standards)

The accounting standards that a member or student would use to prepare the financial statements of an entity may depend upon:

  • the legal requirements of the country (state, jurisdictions)
  • the type of entity (business, charity, government organisation, etc)
  • the legal status of the entity (sole trader, partnership, private limited company, public limited company, etc)
  • the size of the entity.

If the International Financial Reporting Standards (IFRS) or the IFRS for SMEs Standard can be used then here are some of the relevant links:

The IFRS Foundation has a standard-setting body called the International Accounting Standards Board (IASB) that sets the IFRS Standards.

Please note that some countries (eg the UK) use endorsed or modified versions of the IFRS Standards and IFRS for SMEs Standard.

Accounting Standards (UK and Ireland)

The Audit, Reporting and Governance Authority (ARGA) will be replacing the Financial Reporting Council (FRC) which currently sets UK and Ireland accounting standards.

View a full list of FRS standards

Statements of Recommended Practice (SORPs) - UK

View a full list of SORPs 

Effective for periods commencing on or after 1 January 2019.

Tax (HMRC guidance)

Here is a comprehensive list of tax agent toolkits that cover the following subjects:

  • Capital Gains Tax toolkits
  • Companies toolkits
  • Employer toolkits
  • Toolkits for individuals
  • Property rental toolkit
  • VAT toolkits
  • Trusts and estates toolkits

HMRC – Webinars, updates, bulletins and newsletters

Off-payroll working

This article covers the changes to the Off-payroll working rules applying from 6 April 2020.

Disguised remuneration schemes and the loan charge

Disguised remuneration schemes are tax avoidance arrangements that seek to avoid Income Tax and National Insurance contributions by paying scheme users their income in the form of loans. The intention is for the loans never to be repaid, so they are no different to normal income and are taxable.

To tackle these schemes the loan charge was announced at Budget 2016. The loan charge applies if the individual received a disguised remuneration loan or credit on or after 6 April 1999 and it's still outstanding on 5 April 2019, unless the individual or their employer have previously accounted for any tax due on the loan.

On 11 September 2019, the Chancellor announced an independent review of the loan charge. HMRC recognises that some individuals may want to wait for the government’s response to the review before finalising their settlement.

Company Secretarial