Stephenson House, High Force Road, Riverside Park
April 22, 2022
April 22, 2022
ESG accounting practices are coming in to sharp focus, driven by climate change legislation to deliver net-zero. The 2050 deadline agreed by the 193 countries that are signed up to the Paris agreement is already impacting larger multi-national corporations who are changing the way they operate. SMEs and the supply chain eco-system are next to feel this change. This “trickle-down” effect means that it is no longer just affecting the Big Four.
Neil Johnson, a freelance journalist, recently covered the subject in an article on the ACCA website here, where he interviewed Kreston Global member, Kreston Reeves, on their journey to net-zero. They commented,
“There is evidence from many businesses, including Kreston Reeves, that by becoming carbon neutral (or aiming for net-zero) can be hugely beneficial. For example, this can be a big attraction for new candidates/employees to join the business. In addition, it can help improve retention rates of staff if an employer can demonstrate strong social responsibility practices,” said Corporate Partner James Peach and audit senior Dan Firmager.
An accountancy practice’s client base is a great audience with which to share a net-zero story, in the hope that it will resonate with some and may lead to action from others to help support climate action.
Internally, it can be galvanising tool that strengthens and enforces company culture.
Kreston Reeves continues to focus on reducing carbon to work towards the more stringent goal of net-zero. “We are very keen to focus more on our carbon output and to minimise this as far as possible. This is part of our assessment of net-zero and how we can achieve this. It is important that every business or individual does not become complacent and simply rely on the ability to offset whatever CO2 is emitted. The more than can be done to reduce emissions, the better result for the environment and for our future
generations,” said corporate partner James Peach and audit senior Dan Firmager.
There are online carbon calculators for businesses, such as this from the Carbon
Trust: https://www.carbontrust.com/resources/sme-carbon-footprint-calculator or the government’s MacKay carbon calculator: https://www.gov.uk/guidance/carbon-calculator.
April 21, 2022
April 20, 2022
Accounting and business advisors James Cowper Kreston release their 2022 spring statement as the Chancellor addresses the backdrop of the rising inflation.
This includes an interesting read on the most recent economical changes in the United Kingdom. Also, a knowledgeable insight into national insurance rises, fuel duty and taxes.
April 19, 2022
Clive Owen LLP, chartered accountants and business advisers have appointed David Baggaley as a fifth Tax Partner at the rapidly growing firm.
David joins the firm, which has offices in Darlington, Durham, Middlesbrough, and York, from EY where he was an associate partner leading the private tax team in the North East and Yorkshire providing tax advice to both corporates and individuals.
A chartered accountant and chartered tax adviser with many years of experience in UK taxation, David spent time on secondment to EY’s offices in Bangalore, India and Edinburgh gaining valuable knowledge. He also has a keen focus on business development through networking.
Across the four offices currently, the firm now employs 117 people. The Clive Owen tax team has four tax partners, nine fully qualified chartered tax advisers and four trainee-chartered tax advisers, within the 17 strong team, making it one of the largest independent tax teams in the region. In addition, further appointments are set to be made in the coming months to add further depth to the tax team.
Growth is something very much on the agenda for the firm. They opened their fourth office on Riverside Park in Middlesbrough earlier this year with a 20-strong team at the 3,000 square foot site. The new office will provide more space to grow the business across the Tees Valley where they already have a significant number of existing clients and an appetite to develop further.
David Baggaley said:
“I am very pleased to be joining such a well-respected firm as Clive Owen. The firm has an entrepreneurial client base which I know I will very much enjoy working with.”
“It is a very exciting time for Tees Valley with Freeport status and the Treasury and other Government departments which are relocating part of their functions to Darlington. Clive Owen is very well placed to take advantage of the resurgence of the area, and I am looking forward to playing my part in this.”
Gary Ellis, managing partner said:
“David is an exceptional appointment who will further strengthen our excellent tax team. The firm has won a significant amount of new client work and seen an increase in demand from existing clients for tax advisory projects including re-organisations, R&D tax relief claims and inheritance tax advice and a tax partner of his calibre will help support the firm as we drive further growth.
I’m delighted to welcome David to the Clive Owen team at such an exciting juncture for us. His expertise and experience will be an asset as we develop the partnership going forwards”
April 17, 2022
The Marshall plan initiative, created by members of Kreston Ukraine, is a critical part of economic recovery. A robust strategy will give the economy a chance to recover when the war one day comes to an end.
Liza Robbins, Chief Executive, Kreston Global and Sergey Atamas, Managing Partner, Kreston Ukraine report.
Andrew is an experienced qualified chartered accountant who specialises in the technical and quality aspects associated with professional services in an international environment.
Andrew previously held the role of Technical Manager at RSM International and is proactively involved with several industry bodies as a member of the ACCA Global Audit Forum and The Transnational Auditors Committee (TAC).
April 14, 2022
Andrew Collier our Director of Quality and Professional Standards, Kreston Global comments regarding whether audit firms should be prevented from cross-selling consultancy services to audit clients. Read here.
April 12, 2022
We are delighted to welcome Nicoletta Iodice, who joined us recently as the events manager. This important role was created in response to several developments, including the move to hybrid events and return to more in-person events, an ambitious event schedule to accommodate a growing need and our focus on ESG. Nicoletta will manage the full Kreston event programme and strategy. Nicoletta comments,
“I am Italian, but I have been living in London since 2014 delivering worldwide events for membership organisations – from exclusive dinners to conferences, summits, and award ceremonies. I thrive in multicultural and diverse environments where I can learn something new every day and get to know different people and cultures. I am still very fussy about my pizza, but also love Sunday roasts, Scotch eggs and absolutely adore any type of dumpling – from pierogi to gyoza. Sustainability is very important to me and I look forward to contributing to Kreston Global’s purpose by improving our events’ environmental impact.
With its global scope, diverse membership and focus on positive impact, Kreston seems like the perfect organisation for me and I am very excited to be part of this Global network.”
April 5, 2022
April 4, 2022
March 23, 2022
March 11, 2022
Investment in Spanish property, particularly by British investors, has been growing in popularity since the early 2000s, as expats look to retire in the sun, or spending cold winters in Spain and returning in the Spring.
This common practice could be subject to double taxation rules and those looking to invest in Spanish property should consider how long they intend to stay at the property to determine the Non-Resident Income Tax (NRIT). Habitual residency is defined as spending more than 183 days in Spain during a calendar year or when the main core or base of their activities or economic interests is located in Spain. Residency in Spain is assumed when the spouse and minor children are habitual residents in Spain.
Researching tax residency and any double taxation laws between the domicile country and Spain is critical before buying or selling property, however, double taxation treaties signed by Spain tend to claim tax on the sale of a property, in accordance with the Non-Resident Income Tax (NRIT).
NON-LEASED PROPERTIES
Next, a distinction must be made between leased and non-leased property. Residential property can be subject to Personal Income Tax (PIT), meaning that non-residents must declare them each year as real estate capital gains:
It should be noted that the tax rate for citizens of the EU and European Economic Area (EEA) states is 19%, with effective exchange of tax information (Iceland and Norway). For all other taxpayers, the tax rate increases to 24%.
LEASED PROPERTIES
Rates as above, but commercial properties must pay withholding tax to the Tax Authorities on rent. This withholding tax, 19% in the case of EU citizens or Iceland and Norway and 24% in all other cases, will exempt the owner from making the aforementioned quarterly declarations. Rental-related expenses are tax-deductible for EU citizens and Iceland and Norway.
The 60% reduction provided for in the PIT is not applicable to income from rental housing and that is per property, so it is not possible to offset them.
Value added tax (VAT)
Non-resident landlords, subject to VAT, are defined as
VAT will be charged at 10%, will need to register and file VAT returns quarterly.
a) Renting to a long-term tenant is VAT exempt.
b) If the rental of the property is not exempt, the Central Economic-Administrative Court in its ruling of 20 November 2016 applies, endorsed by the Directorate General of Taxation in various consultations (CV1145-17, CV2915-17 and CV 2897-18). VAT obligations therefore only apply to long term rental agreements. Simply owning a property in this instance does relieve landlords from VAT. Rental of subject and non-exempt leases (offices, commercial premises, warehouses, etc.), are as follows:
Usual VAT recovery on purchase and maintenance of properties apply, depending on if the non-resident is established or not in Spain:
a) Non-resident/permanent establishment – should input tax paid in the VAT forms that he/she files periodically (form 303).
b) Non resident/non permanent establishment- should apply for a VAT refund through the non-established refund procedure:
For further tax advice on the selling of Spanish property, please visit our Spanish member Kreston Iberaudit website, here.
Kreston Global is still the 13th largest network in the world.
Kreston Global’s Network ranking has just been published by the International Accounting Bulletin, and remains at 13th in the World, thanks to worldwide revenues of $2.6bn, an 8% increase on last year’s figures of $2.4bn. The rankings cover the financial year period of 2021.
“A very good result for the Network, particularly against the Covid backdrop “ commented Liza Robbins, Chief Executive, noting that a number of new firms had joined Kreston in late 2021/early 2022 so were not included in the Kreston 2021 revenue figures. “We feel that 2022 is shaping up to be a transformational year for Kreston Global, with many new firms coming on board and exciting new initiatives in the pipeline.”
Click here for more IAB ranking information on Kreston Global 13th largest network position – you do need to be a subscriber to access the tables.
March 7, 2022
Kreston Global condemns the war in Ukraine and the violation of international law. We are deeply troubled at the terrible impact on innocent people in Ukraine, Russia and Eastern Europe, and we stand by all people suffering from oppression anywhere in the world. We very much hope for a quick and peaceful resolution to this tragic situation.
We can confirm that Kreston Global does not have any member firms operating in Russia. Our member firm in Ukraine – Kreston Ukraine – has understandably been impacted by the current situation, and we are doing everything we can to support their team during this difficult time.
Accounting firms play a critical role in ensuring relevant economic measures and sanctions are applied effectively. To do so, our firms are encouraged to use resources available from professional bodies and government departments in their respective jurisdictions and to seek guidance from Kreston Global. As trusted advisors, our member firms will continue to support clients as they manage the significant disruption that these changes will bring.
Kreston Global firms from around the network have been in touch with offers of support. Kreston Ukraine has set up a fund to support its employees at this time. If you are a member and would like to offer support, please contact us here.
