Building a cyber security plan of action for your business

Posted by & filed under Cyber security, Members.

Sarah Lyons, Deputy Director for Economy & Society, the National Cyber Security Centre (NCSC) – sets out the fundamentals of staying cybersecure.

Over the past year, businesses in the UK have adjusted to new ways of working and are using the internet more than ever before. According to a report from the Centre for Economic Performance, more than 60% of businesses are using new technologies since the beginning of the pandemic. This is happening in almost all industries – including accounting.

The increased use of email, online payments and collaboration software has brought great benefits to the Finance and Accounting sector, but it does come with risks. Early in the coronavirus pandemic last year, we published guidance for businesses on securely making the transition to organisation-wide home working.

Knowing which measures to take to improve our cyber security isn’t always straightforward, though. There is a lot of information out there and sifting through this to find relevant guidance can take a lot of time and effort.

At the NCSC, we have launched a new tool that will help businesses access cyber security guidance that’s relevant to them. After responding to questions on their current IT practices in the new Cyber Action Plan, they will receive tailored advice on how to improve their cyber security, based on the responses given.

The Cyber Action Plan recommendations stem from the six practical, actionable steps from the technical experts at the NCSC that protect us from the majority of online crime:

  1. Use a strong and separate password for your email
  2. Create strong passwords using 3 random words
  3. Save your passwords in your browser
  4. Turn on two-factor authentication (2 FA)
  5. Update your devices and apps
  6. Back up your data

The behaviours underpin the cross-government Cyber Aware campaign, and you may hear our radio advertisements in March urging businesses to use the Cyber Action Plan.

For accountants and business owners more widely, cyber security should be a priority and I’d strongly recommend visiting cyberaware.gov.uk. We would encourage them to familiarise themselves with the site’s guidance and test themselves against the Cyber Action Plan. It will only take a few minutes to enter the information and it’s free– but it might just provide the priceless knowledge needed to better protect them and their businesses from cyber criminals.

If you would like to improve your cyber security further visit the small business pages on our website. Here you can access a range of resources and guidance created specifically for small business owners.

How the AAT Bursary scheme is helping me switch careers

Posted by & filed under AAT news, Bursary scheme.

When Inga Gumuliauskiene found out she was one of 10 individuals accepted for the AAT Bursary scheme – launched last year to coincide with the association’s 40th birthday – she cried with joy.

“Being chosen for the AAT Bursary has given me my confidence back and given me new hope for the future,” she says. “I don’t know how to thank the AAT for this opportunity to have a rewarding career.”

Inga’s story

A former manufacturing engineer, Inga arrived in the UK from Lithuania with her son in 2006 after her marriage broke down. Unable to find work in the manufacturing sector, she took a job as a retail clerk – an area she still works in today.

However, in 2019, disaster struck when Inga was involved in a car accident that left her unable to walk. “The accident did not seem that serious initially, but one day soon afterwards I woke up and just couldn’t walk,” Inga says. “It was a huge shock.”

She has since been diagnosed with a Functional Neurological Disorder which means she may need crutches to walk for the rest of her life. “The doctors don’t know whether my condition is permanent or not, but needing crutches is a problem in my work because it involves quite a lot of walking around,” she says. “So once I realised I was going to have to live with walking difficulties, I knew I needed to find a desk job of some kind.”

A passion for numbers

“I had joined an AAT Facebook group a couple of years earlier because I have always liked working with numbers and was interested in potentially doing some AAT qualifications so I could change my career,” she says.

“When I saw a post about the AAT Bursary scheme, it was like a lifeline.

“I researched the scheme and sent in my application, and when I received an email saying I had been accepted a few months later, I cried with joy because having this opportunity to study is like being given a second chance in my life.”

Starting out with AAT

Since being chosen as an AAT Bursary recipient, Inga has started studying for her AAT Foundation Certificate in Accounting (Level 2).

“When it came to choosing how and where to study, I picked an online course run by Kaplan because it’s easier for me to study at home,” she says. “I have passed all the exams so far with scores of more than 90%, which I’m really proud about.”

She is impressed by the level of support she has received, without which she wouldn’t have been able to start her journey as an AAT student.

“Through the scheme, I’ve received funding for one year’s AAT membership, plus all the training and exam fees,” Inga says. “I’ve even had my textbooks provided.”

Starting her own business

Now, she’s focused on building a career in accountancy – and maybe even opening her own practice one day.

“This Bursary is my chance to move forward and learn new skills that will allow me to support my son and I financially in the future,” Inga adds.

“My dream is to become a full AAT member and open my own accountancy practice one day, but the next step is to find some work experience in the financial sector.

“Then I can hopefully go on to study for my Level 3 and Level 4 qualifications.”

About the AAT Bursary

AAT is committed to improving social mobility within accountancy – ensuring dedicated individuals can succeed in the sector regardless of their personal circumstances.

So to celebrate its 40th birthday, the association launched a scheme offering bursaries to 10 financially disadvantaged students keen to study towards an AAT qualification.

The scheme was open to UK residents aged 16 or over, and included a range of AAT accounting, bookkeeping, and business qualifications – from the Access Award in Bookkeeping (Level 1) and the Foundation Diploma in Accounting and Business (Level 2) for 16 to 19-year-olds to the Professional Diploma in Accounting (Level 4).

For those accepted, it covered all the costs involved in taking the relevant qualification, from the training provider’s fees to the textbooks required – up to a maximum of £5,000 per student.

In other words, it offered a potentially life-changing chance for 10 people who would be unable to pay these costs themselves.

As Adam Williamson, Head of Professional Standards at AAT, said at the time: “At a particularly challenging time for the UK, the AAT Bursary provides a fantastic opportunity to change the lives of individuals who need financial support.

“AAT qualifications are globally recognised and give thousands of people the chance to start an exciting career in finance. “We believe this scheme will add to our success stories.”

Thank you to Inga for sharing her courageous and inspirational story with us. AAT is proud to have been changing lives for more than 40 years, and is thrilled to be able to assist AAT Bursary recipients such as Inga to achieve their dreams of working in accountancy.

Further reading:

AAT launches Learning Pathways pilot scheme to supercharge your CPD

Posted by & filed under AAT news, CPD, Members.

AAT has launched an exciting new idea in professional development – CPD Learning Pathways.

Designed to take the hard work out of planning CPD, CPD Learning Pathways help you acquire vital skills and understanding through a series of carefully planned and structured content.

The initiative has started with a trial pathway for FMAATs in one of the most sought-after subject areas – Finance Business Partnering.

AAT aims to use this trial to test and hone the CPD Learning Pathways concept before making it available to the wider membership later in the year.

How Learning Pathways work

Each Learning Pathway includes a syllabus of 10 related modules, which will be released over the coming months to give you paced development. 

Every module delivers a deeper understanding of a crucial element of the subject, and by releasing them over time, they allow you to develop your skills in a manageable, schedule-friendly way.

Finance Business Partnering – for FMAATs

The Finance Business Partnering CPD Learning Pathway is free of charge and exclusive to AAT FMAATs.

Two modules can be accessed right away:

  • Introduction to Finance Business Partnering
  • Connect & Collaborate – relationship-building, influencing and negotiating skills

More will be added as the pathway unfolds.

How to access the pathways

CPD Learning Pathways are being made available through AAT’s new Lifelong Learning Portal.

AAT developed the Lifelong Learning Portal to deliver a modern, personalised platform to support professional learning. It was launched successfully to students last year and is now being introduced to AAT members.

If you are an FMAAT, you will be able to log in to the Lifelong Learning Portal access the new learning pathway resources.

Access pathway

Stay up to date

As new modules become available, we’ll let you know via the AAT News newsletter, so look out for updates on new releases and check the syllabus in the pathway introduction to see what’s to come.

AAT backs FCA plans to increase contactless card payments

Posted by & filed under Members, News.

The Coronavirus pandemic has prompted, accelerated, and enhanced myriad changes in business models and consumer behaviour, one such notable area being electronic payments.

The Financial Conduct Authority (FCA) is currently consulting on a further increase to the maximum contactless card payment limit, which was raised from £30 to £45 at the start of the pandemic. The increase being considered is a maximum of £120 although they state their preferred figure is currently £100.

International evidence

The UK is far from alone in having increased the maximum limit for contactless payments in response to the pandemic. Most countries have. Whilst some of these increases have been relatively small, many have more than doubled their limits e.g. Croatia, Hungary, Qatar, Saudi Arabia, and Kazakhstan. A small number such as Mauritius and Belarus have gone as far as to quadruple their maximum contactless limits. With no real problems reported with the increases in any of these countries, the international evidence indicates there is little cause for concern with increases of up to 400%.

Indeed, the significant increase in contactless payments in the UK over the past 12 months, which has led to a substantially improved consumer experience and greater convenience has occurred without any corresponding increase in fraud.

The FCA is therefore right to consider an increase but will need to balance requirements for fraud prevention and security, against the needs of customer demand and convenience. 

AAT members views

Taking such factors into consideration, AAT licensed accountants were this month surveyed for their views on the issue. The responses revealed that three quarters favour an increase.

A clear majority (62.5%) support a rise to £100 and a further 12.5% would prefer an even bigger increase to £120. 

Just over a quarter (25%) would like to see the current £45 limit retained but it is also worthy of note that not a single respondent favoured a reduction below the current threshold, not even back to the £30 limit that was in place when the pandemic hit just 12 months ago.

Cumulative transactions

As well as an increase to maximum contactless payment limits, there is a related issue to consider around cumulative payments. At present, contactless payments must be subjected to customer authentication i.e. entering a pin number, whenever a cumulative transaction value threshold of £130 has been reached, or after 5 contactless transactions have been made in a row without the pin number being entered.

Clearly a failure to change the cumulative transactions value threshold of £130 whilst increasing the general maximum contactless threshold to £100 or £120 would mean that the frequency with which customers have to reauthenticate would greatly increase. This would undermine the benefits of having a higher contactless limit and makes an increase essential if the overall limit is to rise. For that reason, AAT supports the FCA proposal to increase the limit from £130 to £200.

The average value of individual transactions using contactless payments in the UK is approximately £10 so a new cumulative limit of £200 would mean that, on average, a customer could complete 20 transactions before being required to provide their pin number to reset the transaction counters. 20 transactions should easily meet the needs of most individuals.

Convenience and Coronavirus

Requiring consumers to insert a card into a card reader and enter their PIN after numerous transactions, in order to limit fraud, is hardly the bureaucratic burden that some suggest and so concerns about transactions being aborted as a result are likely overplayed.

However, many consumers feel uncomfortable having to touch a pin pad in the current Coronavirus environment so these concerns, although temporary could still prove to be long lasting. This again demonstrates the need to balance the numerous competing interests in this area.

Next steps

The contactless payments consultation is part of a wider consultation on a range of technical issues that is due to end on 30 April 2021. However, the two questions relating to contactless card payments require responses to be submitted by 24 February 2021. This indicates that a decision on this matter is likely to be taken very quickly.

AAT has already responded, providing a submission that was guided by its recent survey of AAT licensed members.

If you are an AAT licensed member and would like to take part in future surveys on these types of issues, please email [email protected]

IR35: new guidelines leave accountants wanting more clarity

Posted by & filed under IR35, Members.

HMRC has updated its guidelines around IR35 changes in response to industry concerns. But accountants report more is needed.

The Supreme Court’s ruling on Uber’s classification of its drivers has put contractor use in the spotlight again, in the same week that HMRC released its updated guidelines around the upcoming changes to IR35 rules.

The changes were set to come into force in April 2020 but were postponed due to the pandemic. In that time, HMRC has listened to criticisms and concerns from accountants and advisers, updating the guidelines in response to this.

But despite the updates, accountants still have concerns around how this will be applied. Common concerns include:

  • CEST: HMRC’s classification tool is generic, so does not address the nuances across different sectors. Businesses cannot rely on it alone to ensure the status is correct and hold up against any challenge.
  • Mutuality of obligation (MoO) is still not considered in HMRC’s assessments. This approach has been discredited in numerous court cases. The assumption within the CEST tool is to assume that MoO is present, which isn’t always the case.
  • Substitution is still a grey area. This is often thought of as a ‘silver bullet’, but it isn’t from HMRC’s perspective; CEST does not depend on the occurrence of substitution and someone can still fall outside IR35 without it.

We asked accountants and advisers what they thought of the new guidelines and where they headaches may lie for accountants and their clients.

HMRC are making the same mistakes

Andy Vessey, Head of Tax at Kingsbridge Contractor Insurance.

For sometime now, HMRC have not acted impartially as they are required to do and that is scandalous. In the 2006 Special Commissioners case of Lewis t/a MAL Scaffolding v HMRC, the judge criticised the department for the way they handled the status enquiry in a less than objective manner, saying “They, HMRC, appear to have approached their investigations on the basis that there must be an employment relationship between MAL Scaffolding and the workers there if one looks hard enough. Officers then went looking on that basis & persuaded themselves that they had found that for which they went looking. They have totally failed to persuade me.”

Unfortunately, history is repeating itself and HMRC are back to their bad old ways. In an act of sheer defiance, it continues to ignore MoO, but at their peril as they recently discovered in last year’s judgment handed down by the Upper Tribunal in Professional Game Match Officials Ltd v HMRC. Yet still they refuse to attach any degree of weight to this test.

The right of control test consists of four sub-elements. Protracted arguments can ensue with HMRC over whether or not an end client has a sufficient degree of control over the worker to create a master-servant relationship.

Advisory approach: When considering whether or not IR35 applies it is necessary to consider the contractual and working arrangements, the briefing confirms that the actual working practices are of greater importance. Just a pity the department doesn’t heed its own advice as their aggressive and stubborn approach in enquiries over recent years has caused them to argue against the working practices and place emphasis on the contractual arrangements when this suits their argument.

Verdict: HMRC needs to change its approach and stop sticking to disproven arguments.

CEST can work, but we need more clarity

James Poyser, CEO of inniAccounts, founder, offpayroll.org.uk

Contractors are the life blood of our economy. They deliver imperative change that keeps UK PLC innovating and progressing. Last year, in preparation for the reforms, we saw companies cut contractors out of the labour supply chain as part of risk management – better not to deal with contractors than get it wrong. We then saw U-turns when the reforms were delayed due to the pandemic, such was the strategic value they offered in times of uncertainty. And now those U-turns are being reversed again.

I think if companies took a more strategic view of the reforms and the value contractors deliver for short-term projects they have the chance to be far more competitive than companies that don’t. We can see that contractors are using offpayroll.org.uk to find fair clients, and as a result companies who are getting it right are edging ahead of the competition and getting first choice of the cream of talent that’s out there. They will have the best people delivering their organisation’s short-term strategic goals.

CEST has a bad reputation. Only 20% of contractors consider it fair and 75% believe third party tools are fairer to the extent that 86% would pay for their client to use one instead (Offpayroll.org.uk stats). But actually 52% of determinations using CEST are deemed outside, only 29% are inside and 19% are ruled ‘undetermined’.

It shows that CEST can work in favour of contractors provided there is clarity on what constitutes being ‘outside IR35’ in the first place.

Advisory approach: If working practices are sound then there is no need to ban contractors from the labour supply chain. Anyone involved in the procurement process should remember that CEST is a starting point and though it will be used by HMRC to build a legal case, it’s fine to use a third party tool to help validate things further.

Verdict: With more clarity, CEST could work well to help businesses navigate the rules.

IR35 is another needless burden at this time

Lucy Cohen, co-founder, Mazuma

IR35 status is notoriously difficult to determine. Even HMRC get it wrong, having lost more tribunals on the case than they’ve won in recent years. So it’s quite the burden for employers to bear. Ultimately, HMRC are concerned about recovering tax and National Insurance and even though a ‘light touch’ approach has been promised, they’ll have little sympathy for companies who they don’t consider have made enough effort.

Delaying things by another year doesn’t seem to have made people more prepared, especially because of other major events such as Brexit and the COVID-19 pandemic. Right now, this a just another burden placed onto businesses which they simply don’t need.

Advisory approach: Encourage clients to prepare.

Verdict: With the pandemic still raging, the timing is still wrong for most businesses.

The information still isn’t clear

Dan Stopp, UK Accounting Manager at Bokio

The primary issue with IR35 guidance remains the lack of clear and definitive information regarding what the implications of these rules are, and who exactly they concern.

For instance, although the preliminary legislation implies that the liability for any unpaid PAYE and NIC lies with the client or the party closest to them in the supply chain – which is ambiguous in itself – it fails to outline the circumstances under which it is appropriate for HMRC to pursue and penalise the offending party.

Controversially, upon determining employment status, the CEST tool does not take Mutuality of Obligation (MoO) into account. In short, MoO refers to an employer’s obligation to delegate work, and an employee’s obligation to complete it. Given its historic and widespread use in tax and employment tribunals, HMRC’s decision to omit this key factor remains a major topic of confusion and frustration.

Nevertheless, HMRC defends its decision, claiming that all contracts have mutuality included or else they would not exist.

Advisory approach: Having lost a number of IR35 tribunal cases, the government’s credibility and judgement of their own tax legislation are increasingly being called into question. To help avoid unpredictable legal battles in the future, HMRC must provide all parties with clear and stable regulation, which one could argue is still lacking, even with the CEST tool.

Verdict: The clarity isn’t there – the IR35 changes will continue to be controversial.

CEST results are too subjective

Christina Nawrocki, Managing Partner at Wellers:

The main issue with the CEST tool is that it can be subjective, and because every question works towards the end result, answering one question incorrectly could change your end result. As we know, HMRC says that it will not accept the result as a definitive conclusion as it’s dependant on how you answer the questions. This creates a lot of uncertainty about the tool, nothing new but still evident.

Advisory approach: It’s now the responsibility of the engager rather than the worker to make the determination. We are seeing them send out questionnaires, like the CEST tool. We are also seeing engagers involve a third party to manage the processes, it’s time heavy and a burden on business.

Verdict: The uncertainty is still present, making it very tricky for businesses to make determinations.

Has HMRC stopped investigating VAT-evading eBay and Amazon sellers?

Posted by & filed under Brexit, Members.

Are UK retailers losing out because HMRC has almost abandoned investigations into VAT-evading sellers on platforms like Amazon and eBay? By Sean Glancy, of UHY Hacker Young.

Between April and December, HMRC only issued 80 data requests to platforms for information about online sellers it suspects of evading UK VAT. In the previous years, it issued 2,684 data requests to online retail platforms such as eBay and Amazon. The number of the requests were the lowest since the tax authority gained these powers in autumn 2016.

HMRC has said that its reduction of data requests to online retail platforms is aimed at reducing the burden on businesses during the Covid-19 period. During this time, it has also been prioritising the roll-out of support schemes, such as furlough.

The powers given to HMRC to investigate VAT-evading sellers were announced after the National Audit Office estimated that online VAT fraud and error cost between £1bn-£1.5bn in lost revenue in 2015/2016. Since 2018, online retail platforms have had to ensure that their sellers display a valid VAT number on the site and report their sales to HMRC correctly. If platforms do not meet these requirements, they can be made jointly liable for any unpaid VAT. It was estimated by HMRC that these new rules would bring in £875m in additional tax.

On January 1 2021, new rules were introduced due to Brexit. These meant that online overseas sellers have more obligations to pay VAT on their sales. Now, they must register for VAT in the UK when selling items under £135 to UK customers.

If the existing rules are no longer being enforced, will the new rules be upheld?

If these new rules are not upheld, it could potentially leave the door open for thousands of foreign sellers to take advantage of the recent surge in e-commerce to undercut British retailers on sites such as eBay and Amazon.

It is clear that supporting the rollout of furlough has been a vitally important job for HMRC over the last year and ensuring businesses aren’t beset with red tape. However, the reallocation of resources to administer furlough should not come at the cost of allowing tax evasion that undermines legitimate UK retailers and e-retailers.

HMRC is in a difficult situation and its decision to prioritise support schemes that were introduced to help businesses during Coronavirus is understandable.

However, if this action is found to be negatively affecting UK sellers on platforms such as eBay and Amazon, HMRC should reconsider this decision immediately to support the UK’s retail sector during the remainder of the Coronavirus period.

What are the prospects for more trade deals post-Brexit?

Posted by & filed under Members.

Trade deals are vital to the UK’s hopes of maintaining and increasing its prosperity post-Brexit. So what are the prospects for 2021?

After the success in reaching a trade deal with the EU, the UK has begun the process of securing deals around the world. The biggest goal, of course, is a deal with the United States, as the UK’s largest single trading partner at 15% of total trade in 2018, according to government figures.

How a deal is reached

Trade agreements aim to eliminate tariffs and reduce other trade barriers coming into force. Many also aim to cover both goods and services.

They focus on improving on WTO rules by removing quotas and applying common rules around certain goods and services.

Trade deals in place

While it was an EU member, the UK was automatically part of around 40 trade deals, which the EU had with more than 70 countries. In 2018, these deals represented about 11% of total UK trade.

There are more than 30 trade deals that the Government has already struck, covering more than 50 countries, effective from 1 January 2021. These deals account for around 8% of the UK’s total trade, based on 2018 figures.

In October, the UK confirmed an agreement with Japan, meaning 99% of UK exports there will be tariff-free. The total value of UK-Japanese trade was £29.1bn in 2018, according to government figures. Similar deals have also been struck with Singapore and Vietnam.

Another significant deal is that struck with Switzerland on services. Under the UK-Swiss deal, UK professionals and other service workers will continue travelling freely to Switzerland and work visa-free for up to 90 days per year.

Possible trading partners

While several deals have been struck globally already, it is evident that many more are still outstanding and are likely to be concluded during 2021 and beyond. More talks still will be initiated as the UK builds its network of deals.

Further countries the government currently  has ongoing trade discussions with include:

  • Albania
  • Algeria
  • Bosnia & Herzegovina
  • Ghana
  • Montenegro
  • Serbia

WTO rules and what they mean

Trade with non-EU countries will take place under World Trade Organisation (WTO) rules, unless bilateral trade deals are made. Under WTO rules, tariffs are applied to most goods that UK businesses export. This would make UK goods more expensive and harder to sell. The UK could also do this to imported goods, if it chose to.

Having WTO rules also means full border checks for goods, which could cause delays at ports. 

US Trade deal

A trade deal with America is the most important, both politically and economically.

President Joe Biden’s new administration has said that trade deals will take second place to investing in the US economy. Liz Truss, UK trade secretary, remains confident a good deal is possible, but perhaps not in 2021. “We’ve agreed the majority of text in the majority of chapters,” Truss said in an interview with Bloomberg. “The important thing for me is it’s a good deal, rather than it gets done quickly.”

“It’s in both the interests of the U.S. and the U.K., as the global economy seeks to recover from coronavirus, that we’re putting our money where our mouth is and delivering more trade,” Truss said. “The United Kingdom is never going to be forced by some deadline into a deal that doesn’t suit all parts of our country.”

The accountant’s role in spotting furlough, CBILS and BBLS-related fraud

Posted by & filed under Coronavirus, Ethics, Members.

Government agencies and private entities are ramping up their efforts to crack down on fraud. What should accountants look out for?

Coronavirus support schemes are due to finish over the next few months – they’ve been lifelines for millions of UK businesses. At the same time, HMRC is escalating its crackdown on fraud relating to lockdown support.

HMRC’s clampdown on fraud follows feedback from three consultations, spanning from Companies House ID checks to corporate director bans, which concluded this month. The British Business Bank has also announced its own crackdown and has brought in PwC to analyse transactions after detecting £1bn of fraudulent loan requests.

According to HMRC, the estimated current value of CJRS-related fraud or ‘error’ could be as high as £3.5bn. According to the BBC, reports of potential fraud leapt from 3,000 in April 2020 to nearly 22,000 in January 2021.

Yet it won’t be until year-end accounts and VAT returns are completed that the full extent of wrongdoings will be evident. Accountants will then be able to see whether their suspicions are confirmed.

Examples of coronavirus-related fraud include:

  • Adding non-existent staff to the payroll (known as ‘ghost’ employees).
  • Non-operational businesses claiming for bounce back loans.
  • Asking employees who have been furloughed to continue working.
  • Using Bounce Back Loans to fund private purchases.
  • Third-sector organisations putting staff on furlough then asking them to ‘volunteer’.  
  • Transferring government grants and loans to private accounts.
  • Impersonating a company to take out bounce back loans.

Fraud and wrongdoing can be relatively easy to spot, especially for accountants who know their client’s business well. It’s essential to look for patterns: financial records with unusual transactions, unusually expensive claims; healthy, or even increased turnover, despite less staff cost. Or, there may be a sudden uptick in sales, despite furloughing.

So what should accountants do if they suspect fraud has been committed?

Cut ties with client if fraud has clearly taken place

John Lawrence, Guido Accountancy

Furlough fraud is quite prevalent. The main area comes from the use of flexible furlough. The rules over flexible furlough are a bit complicated so I have no doubt there is some misunderstanding. However, with a lot of employees working from home, some businesses are claiming for non-working hours/days, when the employee is undertaking some work, even if it is minimal. But in my experience overall, claiming furlough for staff who are working normally is relatively low.

I have had discussions with a couple of clients asking ‘how would HMRC know if they made a fraudulent claim’. I have simply advised these clients that I would not act for any client, in any capacity, that commits such a fraud.

Next steps: If fraud is suspected, the accountant must refuse to take part in any fraudulent activity, including advising a client on how to bypass the rules. Accountants must advise their clients correctly on what they can claim for and what they cannot. If evidence of a fraud exists, the accountant must determine where possible, the reason for it and advise the client on steps to correct it. If necessary, cut all ties with the client if they refuse and commence anti-money laundering action.

Summary:  Advise client to correct mistakes, but if fraud has taken place and client refuses to disclose to HMRC, cut all ties with client and commence anti-money laundering action if necessary.

Escalate fraud concerns to line manager, non-executive director or external auditors 

Andrew Durant, senior MD in forensic & litigation consulting segment, FTI Consulting


We believe that Covid-19 related fraud is and will be a major financial burden on the UK economy. Potential frauds could range from companies claiming furlough money for fake employees to criminals using fake data and documents to pass themselves off as a real company to claim moneys from the bounce back loan.

It can be difficult to spot any potential wrongdoing if the accountant does not have immediate access to the information being submitted to support a claim.  However, there will be other signs that all may not be right. For example, there are anecdotal stories that high-end car dealerships are seeing an upsurge in sales.  This may be due to the fact that the various schemes are being misused and the ill-gotten proceeds are being used to purchase luxury goods.  In my experience, signs of “a lifestyle beyond one’s means” is a red flag that fraud may be occurring.  So, if accountants become aware of such spending, they should not ignore this. 

Next steps: Accountants should remain professionally sceptical and should examine any claims made by businesses in detail in order to identify any fraud early on. They can then advise their clients on how to go about correcting this. If working inside a company, read the companies whistleblowing policy to ensure that whatever steps are taken are in accordance with it.

If you suspect your line manager is involved in wrongdoing, accountants should escalate it to:

  • In-house general counsel, head of risk or money laundering reporting officer or
  • Head of audit committee and/or a non-executive director or
  • External auditors.

Accountants have additional responsibilities to report certain issues to their own institute (if the wrongdoing involves another accountant) or to the National Crime Agency (if the wrongdoing has a Money Laundering implication).

Summary:  Escalate any fraud or wrongdoing concerns to relevant higher authorities ASAP.

Don’t jump to conclusions but encourage the client to notify HMRC immediately

Mahmood Reza, Pro Active Resolutions

I’ve come across anecdotal evidence from clients about other companies where fraud has been committed. In one instance, the employers making the furlough claim were not passing on the 80 per cent wages on to the employee.

Fraud appears to happen in sectors where there is no union and where staff are not fully aware. In these types of organisations, there tends to be more ‘bending of the rules’. We’ve also been aware of some accountants incorrectly advise on how furlough calculations are made and some employers are therefore overclaiming.

Fraud is an emotive thing so it can be difficult to separate out the emotional side, especially if accountants have a good working relationship with their clients. But there needs to be a balance between professional experience, evidence and following your firm’s only internal systems and policies.

Next steps: It is the duty of the accountant to ensure their client doesn’t get into hot water. Seek an explanation from the client first, allow them to rectify their mistake and encourage them to notify HMRC right away. If the client refuses, you must report it.

Summary:  Don’t jump to conclusions that fraud has been committed, ensure the evidence is there first. If there is clear evidence, report it to HMRC immediately.

Remember your ethical duty as an accountant

Helen Barrett, Professional Standards Manager, AAT

Covid-19 has led to the most challenging conditions any of us have experienced in modern times and we know through the enquiries received into our Professional Standards team helplines that our members are facing new and more complex ethical dilemmas professionally as a result.

However, it is still important that our members continue to exercise their sound professional expertise and judgement when dealing with client affairs. If you suspect a client might not be following the rules, you must evaluate the circumstances and consider your obligations under the AAT’s Code of Professional Ethics and Professional conduct in relation to taxation (PCRT). Think about the following principles:

  • Integrity – Members are required to act honestly and straightforward in all professional and business relationships. In the context of fraudulent claims or other unethical activity, this means you have an obligation not to be associated with misleading information. If a client is seeking to make claims based on falsified or incorrect information, you have an obligation to tell the client this does not comply with the rules.
  • Professional competence and due care – Members are required to maintain professional knowledge and skills at a level that ensures clients receive a competent professional service. With so many new schemes and changes during COVID-19, you must make sure you’re up to speed before providing clients with advice.
  • Objectivity – Members will want to help clients during difficult times but it is important you keep in mind the fact that as an accountancy provider you should not compromise your professional judgement through bias, conflict of interest or the undue influence of others. Make sure your relationship with clients isn’t interfering with your decision making, such as feeling pressured to sign off on incomplete or misleading information in order to retain clients.

How to land a role at AstraZeneca

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If you are looking for a career that will give you the opportunity to work for a company that makes a real difference to people’s lives and their health and build a sustainable career, then you could consider a role at AstraZeneca.

AstraZeneca is one of the world’s most exciting global bio-pharmaceutical companies. From Scientists to Supply Chain, IT to Engineering, they are on a mission to turn ideas into life-changing medicines that improve patients’ lives and benefit society. Based in over 100 countries, with over 64,000 employees worldwide and 7,400 in the UK. They need great people who share their passion for science and have the drive and determination to meet the unmet needs of patients around the world.

What does an apprenticeship at AstraZeneca involve?

An apprenticeship at AstraZeneca will give you the opportunity to work in real roles, whilst studying for a relevant qualification with an approved education provider to qualify with industry recognised associations.

Typically, the delivery model is a blended learning approach. It can be a mix of online and classroom delivery, together with an online learning environment to support ongoing learning throughout the term of the apprenticeship. The programme aligns with globally recognised professional accountancy qualifications, as well as providing structured support and guidance.

What skills are needed?

Emma Wood, Talent Acquisition Partner – Early Talent at AstraZeneca, explains that AstraZeneca is looking for people who are curious, keen learners with the desire to grow and make a difference through the work they do.  

“We are looking for enthusiastic, passionate individuals with great potential to be strong collaborators – they will be challenged and supported to showcase their unique abilities to make a difference,” she says.

AstraZeneca is a huge advocate of early careers and in return for the passion and energy you will bring to the function, you will be supported in your apprenticeship and encouraged to fulfill all of your potential. 

We provide the opportunity for our Finance apprentices to build a solid foundation of knowledge, skills and behaviours required for a modern day Finance professional. Combining their on the job learning in their roles at AstraZeneca, with the AAT programme, this will give them a great platform to springboard their careers into the Finance profession.

What does a career at AstraZeneca offer?

“AstraZeneca is a world-leading biopharmaceutical company,” says Emma Wood. “Our people are proud of our contribution to healthcare and to society and are always looking for ways to innovate and grow.  As a company we place a heavy emphasis on inclusion and diversity and creating an environment where each employee can bring their best self to work every day.”

She says that AstraZeneca has made the decision to hire even in these difficult times because the continuous development of early talent is critical to the future of many organisations. 

“At AstraZeneca, we are committed to doing everything we can to help people and society in both good and challenging times,” she says.  “We think it is important, now more than ever, to give those with the interest and determination to make a difference, the opportunity to do so.”

How does the finance function fit into AstraZeneca?

Finance lies at the very heart of driving AstraZeneca’s success – both through past achievements and future aims. The company’s agility, flexibility and pioneering approach to new ideas helps it capitalise on innovation. 

The emergence of a new Finance, one that is committed to driving sustainable performance and outstanding delivery, is developing. AstraZeneca Finance is invested in its vision to ensure that the company can deliver growth through innovation. It supports the development of its Finance professionals, both with entry level roles on structured development and learning programmes and also supporting to continue the AstraZeneca culture of lifelong learning.

In AstraZeneca Finance there is the advantage of many disciplines “under one roof”. From Purchase to Pay, to Order to Cash, Record to Report to Planning and Management Reporting, to Controls, Intercompany, and Enabling – candidates joining the Apprenticeship Programme have the opportunity to develop through a variety of experiences.

What are the benefits of undertaking an apprenticeship? 

AstraZeneca recruits apprentices from age 18, with no maximum age limit onto apprenticeships from level 3 to 7.  All opportunities offer career progression and often access to other higher levels of apprenticeships. 

You can find out more about apprenticeships here.

What are the opportunities for me within AstraZeneca?

Global Business Services (GBS) is the heart of the AZ Finance function. It is accountable for the design and delivery of high quality, simple to operate transactional finance processes. The areas cover record to report (R2R), procure to pay (P2P) and order to cash. In addition, the finance function also plays a role in tax, planning and forecasting, and management reporting to customers across AZ globally in Commercial, Science, Operations & Enabling Functions, Tax, Treasury and Group Finance. 

AstraZeneca includes a Great Place to Work as one of the three pillars in its global strategy, alongside the other two pillars – Deliver Growth and Therapy Area Leadership, and Accelerate Innovative Science.

Find out more about how to apply for an apprenticeship at AstraZeneca here.

Further reading:

What Network Rail is looking for in new recruits

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If you enjoy problem-solving, love working as a team, and are looking for an exciting and rewarding career, then an apprenticeship at Network Rail could be a great opportunity for you.

Apprenticeships at Network Rail are designed to provide you with practical on the job training mixed with classroom-based learning. You will be earning whilst you are learning, and you will be supported by experienced colleagues, allowing you to thrive in the rail industry.

After completing the apprenticeship scheme you will be set up to take the next step on your career journey. With several years of experience, nationally recognised qualifications and a large support network, there are great opportunities ahead. We talk to Freya Horrocks, Finance New Entrants Scheme Manager for apprentices, graduates, year in industry and summer interns at Network Rail, about the opportunities for apprenticeships in the company.

AAT qualifications are a key component

The AAT qualification provides apprentices with a fundamental basis for learning and helps them gain practical skills and real-world accounting knowledge. The exposure and experience AAT provides in the early years of the scheme sets them up to move onto their Chartered Institute of Management Accountants (CIMA) qualification. By the time an apprentice has finished the scheme they have 5 years’ experience, a strong network, and an excellent set of transferrable skills and their AAT qualification is a key part of their professional journey.

What skills are you looking for in your new recruits?

Some of the key qualities we look for include good communication skills, adaptability, a problem-solving mindset, collaboration and resilience. 

In an increasingly virtual world, where communication can be more challenging, demonstrating a skillset in effective communication and adaptability is key. Especially as the roles comprise of working with different colleagues across the business, in different functions and at different seniority levels. 

We empower our recruits to be proactive, to challenge, to look for improvements and to help the business develop viable solutions. A willingness to learn and having a problem-solving mindset will help a recruit to add value to the organisation by solving real world problems and developing their professional and personal skillsets.

What does a career at Network Rail offer? 

We invest in our people because we want them to be the future of our business and Network Rail offers many benefits that help employees to develop both personally and professionally.

Our apprenticeship, graduate and sponsorship schemes provide employees the opportunity to pursue a professional qualification while carrying out roles within the organisation. Whilst completing placement rotations in various finance teams, significant study support is provided. Apprentices have scheme managers supporting their development needs and dedicated college and study days for their AAT course. New recruits are not limited when it comes to experience and opportunity and our schemes help support employees in identifying the direction, they want their careers to take.

Network Rail actively encourages employees to drive their own career path, while offering support systems such as mentoring, buddies and coaching. These support systems allow colleagues to provide advice, guidance, share previous experience and act as a soundboard. By the time an apprentice has finished the scheme they have three years’ experience, a strong network and an excellent set of transferrable skills. 

What is the culture like at Network Rail?

Lots of colleagues are now working virtually and we encourage exposure to different areas of the business and people up and down the finance chain despite remote working.

We are also continuing to build a more diverse and inclusive organisation which is representative of the passengers we serve. As a company we are committed to improving access and inclusion; ensuring that all employees have access to everything that they need to do their job. We believe that investing in our people is one of the most effective ways of improving the safety, reliability and efficiency of the railway. To learn about the benefits we offer please click here.

What is life like in this sector? 

The work is engaging and wide-ranging in Finance, with opportunities to work with Capital expenditure, Operational expenditure, Income, Financial Accounting and Group Finance environments, with a wide range of different stakeholders. Due to the exposure and experience provided in the early years of the scheme, apprentices are often in demand to complete complex projects for finance leaders.

There is a significant emphasis on health and wellbeing within the company. We believe that safety and performance go hand in hand, and this doesn’t just mean safety on the railway. We are committed to the wellbeing of our employees. There are many internal and external wellbeing partnerships available to all employees and we also encourage a culture of flexible working and have several excellent employee benefits that support this.

How do you train staff? 

At Network Rail we empower our employees with the knowledge to help them progress. We encourage all our employees to be ambitious and offer great training and career development opportunities to enable them to do this.

As the railway becomes bigger and more technologically advanced, it is crucial that our employees have the right skills to develop their careers and meet the challenges ahead. We believe that investing in our people is one of the most effective ways of improving the safety, reliability and efficiency of the railway. This has recently been demonstrated through the dedicated Continuous Professional Development workstream that has been undertaken by the Finance Strategy and Development team within the company.

Network Rail also has a training catalogue containing over 1,000 skills and leadership courses, easy-to-access eLearning and award-winning new entrant and higher education programmes on offer to employees. It is vital to get everyone’s training programme just right, ensuring everyone has access to help them to achieve their personal and professional goals. 

Finally, our apprenticeship schemes are tailored to provide training and development opportunities and they also allow additional time off for studying. 

How do you manage career progression?

Career progression is managed through succession planning programmes and regular 1-2-1s with line managers. We aim to ensure employees are aware any opportunities available to gain the experience required to enable successful career progression. Apprentices are supported by their line manager, scheme manager and their apprenticeship talent coach in developing a Personal Development Plan (PDP).

Personal developments plans are used to identify skill gaps or development areas for the employee to support their progression and setting objectives to try and proactively develop the employee within these areas. As a company, we offer support on creating the PDPs and coming up with objectives aligned with the organisation’s objectives and individuals’ ambitions. We also encourage our apprentices to collaborate and attend development days and volunteering opportunities.

We also offer fantastic talent management programmes including our talent pools, where a collective of employees attend multiple different training courses to provide them with a necessary skillset for the transition into more senior roles within the company.

Career progression within the company could be in many forms. Lateral moves are very common within the organisation and provide employees with the opportunity to broaden their understanding of different areas within the business and diversify their skillset.

Our coaching and mentoring programmes also offer a very exciting opportunity for our people to grow and develop, gain the confidence to expand their influence, and to seek out new opportunities or be better in their current roles.  We have a significant number of mentors and coaches that have sought out these positions to help provide guidance and wisdom and act as a soundboard and hub of knowledge from the vast experience they have developed through their careers.

What are prospects like? 

As a company we are proactively working to ensure that everyone has access to training that will help them to achieve their personal and professional goals, as we know that it’s vital to get everyone’s training programme just right, which are often varied as people will be at many different stages within their careers. 

The long-term career prospects within the organisation are excellent and this has been demonstrated with many previous graduate schemes recruits now holding directorate level positions within Finance. There are also over 10 director level finance roles within the organisation for those that want to reach the very top, so there is no limit or shortage of opportunity for employees.

Our staff turnover rate is also very low, which not only indicates the culture we promote and work-life balance that is championed, but also the many opportunities that are available within the company. 

What skills is your organisation building?

As an organisation we are looking to build resilience, influencing, business partnering, self-development and leadership skills. We aim to create a diverse and inclusive workforce which is resilient and is full of finance professionals. Given that we are publicly funded, we are looking to instil behaviours of working and spending money efficiently and effectively, with managing public money sessions regularly being held to embed this.

Influencing, people management and business partnering are all directly related in our ability as finance professionals to provide forward looking analytical support to our business partners and colleagues that enables them to make informed decisions that consider the risks and opportunities.

The application process for our 2021 schemes are now closed. We will be accepting applications for our next intake in October 2021. To be the first to know please register your interest here.

There is lots of information on the finance apprenticeship scheme (includes dates our scheme will open and lots more).

Further reading: