The Business Income Manual has been updated
The Business Income Manual (BIM) has been rewritten to include legislative changes, the Tax Law Rewrite, and new chapters on the Simpler Income Tax rules. It has also been updated for accountancy changes introduced by new UK GAAP.
The changes are detailed below:
BIM31015 Tax and accountancy: meaning of ‘generally accepted accounting practice’
BIM31027 Tax and accountancy: interaction between UK GAAP and IAS
BIM31030 Tax and accountancy: concepts and pervasive principles
BIM31040 Tax and accountancy: events after the end of the reporting period
BIM31045 Tax and accountancy: materiality, an accountancy concept
BIM34055 Change of basis of computing taxable profits: accounting policy changes: Section 10 of FRS102
For more information, see 'Related links'.
Accounting standards are the starting point for tax computations under both the Income Tax (Trading and Other Income) Act 2005 (ITTOIA 205) and the Corporation Tax Act 2009.
Individuals and charities are not permitted to use IAS; new UK GAAP is available in these cases.
New UK GAAP consists of FRS 101 and FRS 102, which are compatible with IAS and framed so as to give a ‘true and fair view’ as required by the Companies Act 2006.
All SSAPs and FRSs, with the exception of FRS 27, will be withdrawn for accounting periods beginning from 1 January 2015 and replaced by FRS 100, 101 and 102.
It is expected that FRS 27 (Insurance companies) will be replaced by FRS 103 in due course.
HMRC has also issued the following guidance on the tax implications of the new UK GAAP:
For more information, see 'Related links'.