Latest news with #InstituteofCharteredAccountantsinEnglandandWales
The Star
3 days ago
- Business
- The Star
Accounting for Asean's future
Bridging borders: (Second row from left) Vallance and Gonzales posing for a photo with ICAEW UK and Malaysia administration employees. AS Asean economies continue to integrate, the accountancy profession plays a foundational role in supporting this transition. Chartered accountants ensure consistency in financial reporting and robust governance frameworks, building trust that enables cross-border trade and investment. With Malaysia as this year's Asean Chair, the Institute of Chartered Accountants in England and Wales (ICAEW) Malaysia recently launched Asean Connect 2025 – a first-of-its-kind forum uniting ICAEW members from across Asean with their United Kingdom counterparts at London's historic Chartered Accountants' Hall. The event, held on April 11, served as a platform to strengthen cross-border professional collaboration and position the region as a cohesive economic bloc. During the forum, officiated by Malaysian High Commissioner to the UK Datuk Zakri Jaafar, participants – including representatives from Malaysia, Singapore, Indonesia and Vietnam, and Asean professionals based in the UK – discussed how accountancy and finance professionals can work together to promote sustainable economic growth and workforce mobility within Asean. The evening also featured an ICAEW World Prizegiving Ceremony, honouring outstanding chartered accountancy students from Malaysia. ICAEW Malaysia head Shenola Gonzales said Asean Connect 2025 is the realisation of a vision to consolidate two worlds: Asean's dynamic regional economies and ICAEW's global professional heritage. 'As Malaysia leads Asean this year, we are proud to showcase how the strength of our profession can drive regional collaboration and enhance economic resilience,' she said in a press release dated May 8. Earlier this year, as part of its engagement under Malaysia's Asean chairmanship, ICAEW chief executive Alan Vallance addressed the Asean Capital Markets Forum. In addition, ICAEW convened the region's first workshop on Scope 3 emissions reporting, bringing together Asean regulators, policymakers and business leaders to strengthen transparency and consistency in environmental, social and governance disclosures. Noting the urgency of this shift, Vallance said sustainability and financial resilience go hand in hand. 'Investors and financial markets demand greater transparency, and Asean must work towards a unified approach that supports both regulatory alignment and business competitiveness,' he said.
Yahoo
27-05-2025
- Business
- Yahoo
ICAEW report finds audit quality holding steady in 2024
The Institute of Chartered Accountants in England and Wales (ICAEW) has released its 2024 audit monitoring report, revealing that 67% of audited files were rated as either good or generally acceptable. This marks a slight decline from the 71% recorded in 2023, although the report notes that the average audit quality is likely to be higher due to the targeted selection of complex or challenging audits. The proportion of audits requiring significant improvements remained stable at 10%, the report said. The ICAEW's quality assurance team conducted visits to 401 firms, reviewing 790 audits selected for their complexity. The report highlights that direct year-on-year comparisons of audit quality are not possible, as different firms—excluding the Big Four—are reviewed on longer cycles. Among the Big Four, 90% of audits were rated good or generally acceptable, with only one audit identified as needing significant improvement. The report clarified that audits requiring significant improvement do not necessarily indicate an incorrect audit opinion. Nick Reynolds, ICAEW Professional Standards Head of Audit, said: "Though we can't compare results year-on-year, the majority of audits we reviewed continued to remain good or generally acceptable." Reynolds further explained the challenges faced by some firms, particularly in attracting and retaining skilled audit staff, which affects audit quality. Larger firms tend to have better recruitment outcomes and, consequently, stronger audit quality results. "We'll continue to support our firms to help them build and maintain high standards," he added, mentioning the release of a new training film titled "Crossing the Line." To provide further insights, the ICAEW will be hosting a series of free webinars to discuss the findings from the monitoring visits in greater detail. The ICAEW, which registers approximately 2,000 firms for audit work, is the UK's largest recognised supervisory body for monitoring non-Public Interest Entity (PIE) audit quality. "ICAEW report finds audit quality holding steady in 2024" was originally created and published by The Accountant, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
08-05-2025
- Business
- Yahoo
ICAEW warns IHT reforms could burden elderly business owners
The Institute of Chartered Accountants in England and Wales (ICAEW) has raised concerns over the government's proposed inheritance tax (IHT) reforms, which aim to cap reliefs at £1m ($1.33m). According to the professional membership organisation, these changes could disproportionately affect elderly business owners and farmers, especially those in poor health, by imposing unforeseen tax liabilities. The ICAEW's response to the government consultation highlights that the proposed IHT reforms could create significant financial challenges for business owners planning to pass on their enterprises. The estates of these owners may face a 20% IHT liability, complicating succession plans. The ICAEW also argues that the £1m exemption is insufficient, potentially affecting more estates than intended. These reforms, marking the first significant change in over three decades, could threaten the continuity of multi-generational businesses. With the proposed changes, the ICAEW warned that businesses might need to be dismantled to meet tax obligations, potentially hindering economic growth and disrupting long-term planning for business owners. ICAEW technical manager of tax Katherine Ford said: 'These unfair inheritance tax proposals will result in greater hardship for business owners who are elderly or in poor health, and will threaten the future of multi-generational businesses. 'These changes would also thwart economic growth, given the detrimental impact this tax policy would have on many communities. The loss of policy certainty and stability, which has lasted for a generation, will undermine the ability of these family businesses to plan, resulting in severe consequences for UK business and the agricultural sector. 'With certainty now gone, business owners will be left to scramble with short notice – that is no way to design policy. At £1m, the allowance is also not sufficient and could jeopardise the viability of businesses and family farms if not increased.' The ICAEW suggests that elderly or terminally ill owners may struggle to make lifetime gifts to avoid IHT, as they might not survive the required seven-year period for exemption. To address this, the ICAEW proposed a taper for gifts during the transitional period or transitional relief for active business owners and farmers over 65 years old. It also recommends that the £1m allowance be adjusted annually for inflation and be transferable between spouses to simplify tax planning. Smaller businesses, which exceed the valuation threshold but lack resources for tax planning, may face disproportionate challenges, according to the ICAEW. Paying the IHT over ten years could still pose practical problems, especially for shareholders in family companies relying on business property relief. The ICAEW warns of potential double tax charges if assets need to be sold to pay IHT, affecting business viability. Extending legislation around company purchase of own shares is suggested as a solution. The ICAEW also highlights the need for more professional valuations, which could increase financial burdens on taxpayers. Smaller businesses and farms near the £1m threshold may face scrutiny from HMRC valuation enquiries. The ICAEW urges the government to clarify the validity of valuations and adequately resource HMRC's IHT valuation team to prevent delays in estate administration. "ICAEW warns IHT reforms could burden elderly business owners " was originally created and published by The Accountant, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
The Independent
15-04-2025
- Business
- The Independent
UK business confidence sinks to lowest level in years after tariff chaos
British business confidence has plummeted to its lowest point since late 2022, mirroring the economic turmoil seen during the energy crisis and Liz Truss's short-lived premiership. A new survey reveals a widespread sense of "despondency" among business leaders, grappling with the double blow of rising taxes and the looming threat of US trade tariffs. The latest poll by the Institute of Chartered Accountants in England and Wales (ICAEW) paints a bleak picture of the current business landscape. The survey, conducted during the first three months of the year, found confidence levels had slumped significantly. This downturn echoes the anxieties experienced during the energy crisis and the market instability triggered by the former Prime Minister's mini-budget. Taxation has emerged as a major concern for businesses, with a record 56% of respondents citing it as a growing challenge. This unprecedented figure underscores the increasing pressure on companies as they navigate a complex economic environment. The combined impact of rising taxes and potential trade tariffs is creating a climate of uncertainty, dampening investment prospects and hindering growth. Alan Vallance, the Institute's chief executive, said: 'These findings reveal a state of despondency among businesses as they stave off a blizzard of extra outlays, including the rise in national insurance. 'Meanwhile, the US tariff announcements have loaded on exceptional uncertainty and the very real prospect of higher costs and global economic woes. 'Tax worries have never been so prominent, causing record levels of distress for our members for the second quarter running.' The ICAEW's business confidence monitor, which produces a so-called index score from its quarterly surveys, came in at minus 3, the weakest reading since the fourth quarter of 2022 and down from 0.2 in the previous poll. The survey comes after weeks of uncertainty over what US President Donald Trump's tariffs will mean for UK firms. After a chaotic few days following the announcement of worldwide so-called reciprocal import tariffs, Mr Trump rolled back the measures to include a baseline of a 10% levy for most countries, including the UK. Meanwhile, employer national insurance contributions (Nics) rose in April at the same time as growing utility bills and an increase in the minimum wage. And weak economic growth over recent months led firms to project that domestic sales growth would hit its lowest level this year since the second half of 2022, the ICAEW said, despite a slight uptick in sales across those surveyed in the opening months of this year. Recent figures from the Office for National Statistics (ONS) showed gross domestic product (GDP) grew by 0.5% in February. But that was a surprise leap after the economy flatlined in January, with GDP showing no growth in the first month of the year. Suren Thiru, ICAEW economics director, added: 'These figures suggest that this year has so far been a pretty harrowing one for the UK economy as accelerating anxiety over future sales performance, April's eye-watering tax hike and US tariffs helped push business sentiment into ominous territory. 'Our data suggests that firms are currently responding to intensifying cost pressures with only limited price rises, but at the expense of more restrained recruitment and weaker spending on staff training, which will hinder productivity.' The ONS will release its next monthly report on the UK's jobs market on Tuesday, while the most recent inflation data is due on Wednesday.
Telegraph
15-04-2025
- Business
- Telegraph
Business in ‘state of despondency' as confidence plummets
British businesses have been left in a 'state of despondency' by Donald Trump's trade wars and Rachel Reeves's tax rises, with confidence at its lowest level since the mini-Budget crisis. The Institute of Chartered Accountants in England and Wales (ICAEW)'s quarterly survey of business confidence has plunged into negative territory for the first time since the end of 2022 during Liz Truss's ill-fated premiership. Alan Vallance, ICAEW chief executive, said Labour's tax raid and US tariffs were to blame. He said: 'These findings reveal a state of despondency among businesses as they stave off a blizzard of extra outlays, including the rise in National Insurance. 'Meanwhile, the US tariff announcements have loaded on exceptional uncertainty and the very real prospect of higher costs and global economic woes.' A record 56pc of companies warned that taxation was placing a growing strain on operations, after Ms Reeves's £25bn tax hike on employers took effect in April. Evaporating confidence is hitting the job market, with employment growth slowing to the lowest rate since spring 2021 when the country was emerging from lockdown. Companies are scaling back recruitment and slashing staff training budgets to cope with rising costs rather than raising prices, the survey noted, in a boost to rate cut hopes. The findings come as Oxford Economics warned global trade could plunge to pandemic levels because of Mr Trump's aggressive tariffs. The consultancy estimated trade could fall by 5pc by 2028, which would be similar to the drops seen in 2020 during Covid and the global recession of 1975 - a time of oil crisis, surging unemployment and miners' strikes. The author of the report, Adam Slater, warned this was a 'conservative' estimate, adding: 'A global recession is a real possibility.'
