How to get prepared in your last two weeks before an assessment

Whether contemplating sitting their first or last AAT assessment most students will suffer from a degree of exam nerves. 

It’s important to realise that feeling exam nerves is completely normal. In fact, not feeling those nerves would be a more worrying sign of complacency and over-confidence.

In this article, Gareth John BA FCA Chief Executive of First Intuition Cambridge offers advice on how you can channel those nerves and succeed.

These are challenging exams and can make a big difference in your career. Nerves are your body’s way of telling you that something is important to you.

Top tips from AAT students

I recently asked a number of AAT students for their thoughts on good ways to minimize exam stress, and I have put together some of the most common tips they gave me.

Overall, the most common advice was to use controlled breathing to ward off stress and panicky feelings. Spending 3 minutes breathing slowly in and out sends a powerful message to your brain to calm down and regain control.

Below is a summary of some other great ideas they gave.

In the final couple of weeks leading up to your exam

  • Being fully prepared for the assessment you are going to sit is an important way to avoid getting stressed. The process of reducing exam nerves should start a week or two before you go anywhere near the assessment venue.
  • Practice breathing deeply and slowly for 3 minutes at a time on a regular basis.
  • Revise for 45 to 60 minutes at a time before taking a short break.
  • Studying ‘little and often’ is better than trying to study for a long session in one go.
  • Turn your focus to mock assessments as you get closer to the date of the real thing. The more mock assessments that you complete under timed conditions, the less stressful the real thing will feel.
  • Make sure your diet and sleep are both regular and healthy.
  • Relaxation apps like Headspace or Calm can be very useful.
  • Have a ‘home team’ of friends and family who you can share your stresses with, and who can help take the pressure off you for jobs like shopping or school runs.
  • Don’t study all of the time. Do other things like spending time with family or taking a walk.
  • Reward yourself with a treat when you hit key targets in your study plan.

The day before the exam

  • Don’t try to learn anything new at this stage.
  • If you are sitting in a physical assessment venue make sure you know where the exam venue is and how you are going to travel there. Consider a ‘dry run’ if you haven’t been to the venue before.
  • Prepare your ‘assessment kit’ ie pens, calculator, bottled water, chewing gum.
  • Get some exercise, some fresh air, and some green space.
  • Go to bed early and get a good night’s sleep. You really won’t improve your performance by staying up late doing last-minute cramming.

Immediately before the exam

  • Plan to arrive near the venue at least an hour early in case of travel problems.
  • Have a routine to calm you down and make things feel familiar. I used to sit in the same little café before each of my exams having beans on toast and fresh orange juice.
  • Breathe deeply and slowly for 3 minutes if you start getting stressed.
  • Visit the bathroom.
  • Avoid comparing how much revision you have done with anyone else.

During the exam

  • Breathe deeply and slowly before starting.
  • Remind yourself that failing an assessment really isn’t the end of the world and that you will give it your best shot.
  • Write down any equations or acronyms you have memorised that might be useful.
  • Spend a few minutes looking through each of the tasks you will be dealing with.
  • Start with tasks that you feel most comfortable with. Leave harder ones until later.
  • Take the time to read each task properly, clearly identifying what they want you to do. I think it is worth reading each requirement two or three times.
  • Take a ‘time out’ to breathe deeply and slowly if you find yourself panicking at any point.
  • I used to ask to go to the bathroom if I started getting overwhelmed. Even if I didn’t really need to go it gave me a few minutes to clear my head.
  • Try to avoid second-guessing yourself and constantly changing your answers. Trust yourself that your first answers are likely to be good.

After the exam

  • Don’t spend ages dissecting the exam and your answers; it’s done now so try to forget it.
  • Relax and celebrate getting through it!
  • If you have another assessment to sit soon afterwards then it’s time to start focusing your attention on preparing for that one.

Further reading

Taking your assessment: a social distancing guide

Many of our training providers have started planning on reopening their doors in a safe way.

As a result, we felt it was necessary to make a decision on turning our assessments back on to help students progress through AAT qualifications.

Many assessment centres reopen from 29 June 2020 but they will be functioning in a very different manner than they were before. So what will socially distanced assessments look like and what is the key info you need to be aware of?

Here we run through what you can expect and how you get ready to nail that assessment. 

Booking your assessment 

  • Assessment schedules will be limited to ensure the correct distance is kept between each computer to support social distancing. So booking your assessment as soon as possible to grab one of the first available slots is advised.

Speaking to Tracey Mosley, CEO at EMA training, she said “we fully understand the backlog faced with the AAT assessments and have a waiting list in excess of 150 AAT students waiting to sit assessments, some of these are external students that we are supporting during a time where their training centres/colleges will still be closed. We have allocated them all with a slot and it will be made very clear they must comply with our social distancing measures and instructions”.

Before the assessment 

  • Whilst waiting to enter the assessment make sure you’re spaced a two-meter radius apart from the person in front of you.
  • Ensure you’ve washed your hands and used hand sanitiser, prior to entering the assessment room
  • Enter the room one by one and take your seat (each student will need to be seated prior to the next student entering the room – please arrive early and allow for additional time for everyone to take their seats this before starting the assessment)

Inside the assessment venue

  • All computers, equipment, and workstations will be cleaned before and after each assessment session.
  • PPE in the form of gloves and face masks can be worn during the assessment, however, these will be checked (in a non-contact manner) by the centre staff to ensure there is no hidden equipment.
  • There will be at least a two-metre radius between computers and workstations that will be used for assessments.
  • Designated safe spaces will be provided to leave your belongings, which will be spaced two metres apart.
  • Depending on the assessment venue, signage may be placed in some of the rooms and corridors advising of coronavirus (COVID-19), symptoms and processes the centre has in place, such as social distancing, floor markings, one-way systems, etc.
  • All breaks during an assessment will be supervised to ensure social distancing is being practiced.

Tracey Mosley, CEO at EMA training said: “We have agreed that we will transition back to ‘face to face’ learning two weeks later than originally planned (mid-July 2020 ), this allows us to accommodate the backlog of assessments waiting to be sat and reduce the footfall in the HUB at any one time to an acceptable level”.

Synoptic calendar

Synoptic window dates have now been confirmed for the remainder of the year and include additional dates to help with planning and potential capacity issues due to social distancing restrictions.

Download the 2020–2021 synoptic calendar (PDF)

Social distancing guidelines 

Assessment centres are responsible for ensuring that they are Covid-secure and can support social distancing during the assessment process, putting the health and safety of staff and students first.  

Read the social distancing guidance for training providers (PDF)

Calculated results

Following discussions with Ofqual, we have agreed that AAT will calculate results for students who could reasonably have been expected to complete the Foundation Certificate in Accounting or Foundation Diploma in Accounting and Business this summer.

Read our dedicated page about calculated results.

Further reading: 

AAT opinion: how can Government plot a course out of the recession?

The level and nature of the measures that the Government has put in place reflect the extraordinary nature of the challenge we are facing.

In May, the Office for Budget Responsibility identified that the direct effect of the Government’s measures in response to the coronavirus (Covid-19) pandemic would amount to £123.2bn.

The forecasts suggest that the result of this will be a £300bn budget deficit in the current financial year. 

The Resolution Foundation, an independent think-tank, recently produced figures calculating the economic impact of Covid-19, suggesting that a six-month period of social distancing would require borrowing of 22% of GDP this year, a level of borrowing not seen since World War II. It went on to suggest that unemployment would rise to almost five million (approximately 14%) across the same six-month period.  

So how does the Chancellor plot a course out of the recession?

Inevitably, there has been significant focus on the potential changes in the tax landscape. Indeed, back in March, when announcing measures to assist the self-employed, the Chancellor hinted at increasing NICs for this group, to bring the rates in line with employees. He said: “If we all want to benefit from state support, we must all pay equally in future.” 

The Government has yet to reveal details on this or other potential measures at this stage. However, a Treasury document revealed by The Telegraph indicated a possible wide-ranging approach that included breaking the Conservative Party’s “triple tax lock” pre-election promise not to increase income tax, National Insurance or VAT. 

If ever there was a time where the Government might look to introduce traditionally politically unpopular proposals, it is now.

AAT identified a number of alternative measures to tax rises in our document, Time for change: Alternatives to tax rises, which we issued in late 2018. Included were measures such as the simplification of Inheritance Tax (putting restrictions around business and agricultural property reliefs), dispensing with the Winter Fuel Allowance and closing the gender pay gap. However, tax policy changes alone are likely to be insufficient in addressing the economic challenge. 

I recently engaged with a CBI webinar that reflected on how Covid-19 is impacting the UK economy and businesses. One of the panelists was the chief economist at the Bank of England, Andy Haldane, who pointed to the likelihood of a contraction of our economy by around 20% by the end of the second quarter of this year. 

He identified that currently between a quarter and a third of the UK workforce was inactive, either as a result of having been furloughed or having been made redundant. He also suggested that the levels of employment are unlikely to return to pre-Covid-19 levels until 2022/23. 

He went on to observe that current levels of household and business spending are very low, and it is likely that even after we emerge from lockdown we can expect to see a period of prolonged caution. Yet it is spending that will be critical in helping the economy emerge from the recession. With the Bank of England looking to provide suitable monetary financial conditions, creating jobs, stimulating spending and engendering confidence among workers and businesses is going to be critical. 

Therefore reinvesting in digital infrastructure, based on upgrading the digital states of businesses (many of whom have shifted to remote working in the past few months), and investing in the development of digital skills with the aim to create rich growth in productivity and employment, will have a crucial part to play in 
any recovery

Further reading

Long-term home working? Here’s what employers should know

Employers need to reappraise their responsibilities around working from home say Toyah Marshall and Charles Spencer of HR and legal expert Ellis Whittam.

Accountancy businesses have taken a pragmatic, short-term approach to office-based employees working from home. However, despite being introduced as a temporary arrangement to endure lockdown, the business mindset regarding home working appears to have shifted.

Permanent change?

A quick browse of online job boards reveals a lot about the direction many employers are headed, with a good proportion of accountancy roles now appealing to candidates through headlines like ‘remote working opportunity’, ‘potential for home working’ or simply ‘location: anywhere’.

Clearly, there is an awareness that this kind of flexibility is high on people’s list of priorities when searching for a new position, and with COVID-19 giving some their first taste of home working, this may well become the default in accountancy and wider financial services even after the dust has settled.

However, if this is to become the norm rather than an informal, short-term solution, there are a number of implications for employers concerning their health and safety duty of care and the employment law position.

Here are some practical tips for those who employ or manage people.

1. Don’t assume everyone enjoys home working

Probably most of your employees will be open to working from home on a long-term basis. Others may not share their enthusiasm – especially for a permanent change.

Parents may have found home working a less positive experience due to the distractions created by children in the home. Those who live alone may have found home working equally difficult due to reduced social interactions.

A more permanent move towards home working is likely to also impact more junior employees, who may find the prospect of being given more autonomy particularly daunting.

In these cases, you will need to properly weigh up whether home working will be beneficial, or whether it may result in more disengaged, less productive employees. If you are contemplating a more permanent transition to home working, consider how this might impact different people in different ways and what procedures can be put in place to monitor wellbeing. Some ways to support staff include:

  • Providing training for managers on how to identify stress and anxiety, especially as it will be harder to spot when staff are struggling.
  • Setting up regular one-to-ones to check in with employees – both in relation to their work and also their mental health – and making sure this becomes habitual even after the ‘novelty’ of home working wears off.
  • Using “coffee roulette” to pair up different employees each week for a short chat over whichever video conferencing software you are using – this is a great way for colleagues to support each other and will keep communication strong between different departments.
  • Ensuring employees have everything they need to carry out their role remotely, as frustrations around technology, software and access to information can be another source of stress.

2. Review your contracts

If you are planning to have staff work from home on a temporary basis until it is safe and practical to return to the workplace, this is unlikely to change an employee’s contractual place of work. Nonetheless, to avoid ambiguity, it is important to make clear to staff that this is a temporary arrangement, indicate how long you expect it to last, and explain that it can be ended at any time at your discretion. In any such discussions, take care to avoid making permanent ones that you cannot later end.

If you are contemplating making home working a more permanent fixture, you will need to agree with your employees a variation to terms. Given that most employees will view this as a positive change, this should be a relatively painless exercise. However, if staff aren’t so receptive, you will need to have a reasonable basis to change their terms unilaterally. In the current circumstances, employers may have justification to do so based on health and safety reasons or perhaps to avoid redundancies, but you will need to demonstrate that this was necessary.

3. Understand your health and safety duties to homeworkers

While home working might appear relatively low-risk, it’s important to remember that employers still owe homeworkers a duty of care. The core piece of health and safety legislation in the UK, the Health and Safety at Work Act 1974, also applies to anyone working from home and requires employers to eliminate or reduce risks where possible.

This does not mean that as an employer, you are responsible for everything that goes on in somebody’s home. You would not, for example, be expected to record someone tripping over a family pet in their living room as a workplace accident. However, if they were electrocuted while using a work laptop, this would need to be logged.

Back in March when employers initially reverted to home working, the HSE’s attitude was that this was a short-term arrangement and, as such, temporary provisions should be implemented such as a basic laptop and phone for communication with other employees. Now, as more businesses consider making home working the norm, employers will need to give further thought as to what measures will need to be introduced to mitigate risk.

Home working Risk Assessment

The best way to do this is by conducting a Home working Risk Assessment with individual employees to assess hazards and decide on appropriate controls. Within this, you should consider both physical hazards, such as those associated with work equipment, work station set-up and working alone, and mental health and wellbeing hazards, such as stress, isolation and fatigue.

Perhaps unsurprisingly, a recent survey by the Institute for Employment Studies revealed a significant increase in musculoskeletal complaints amongst homeworkers, with over half reporting new aches and pains.

Your Home working Risk Assessment should therefore include aspects of employees’ workstation set-up when assessing whether they are able to work safely in the home. This is especially important if you are considering having employees work from home long-term.

When deciding on appropriate control measures, keep in mind that employers have a duty to provide employees with suitable work equipment to enable them to complete their job safely.

Editor’s note: insurance is a further area to consider. Many home insurance policies will expect the homeowner to declare they are using the premises for business. Normally clerical use is adequate. While premiums may increase from this disclosure, failure to declare the situation could make cover void.

Summary

The Government’s advice is to ‘work from home if you can, go to work if you must’. On this basis, those working within accountancy are likely to return last to the workplace, if indeed they do at all.

However, while you might have the luxury of time on your side compared to other sectors who have had to scramble to reopen safely, it’s important to use this time wisely, as any permanent shift towards home working will not only create logistical challenges but will impact your legal responsibilities, too.

About the authors

Toyah Marshall is Principal Employment Law Adviser and Charles Spencer is principal Health & Safety Consultant at Ellis Whittam.

Ellis Whittam has created a free Back to Business Hub for employers, containing all the guidance, risk assessments and template documents you need to reopen safely, compliantly and with minimal employee issues.

How to onboard staff in a remote team

Over the coming months, trainee accountants and apprentices will be looking to start new jobs.

Many will not be able to join the office in the traditional way, either because they will be working for home, or they will only be coming into the office one or two days a week.

What can managers do to create an effective onboarding process and help new starters assimilate the culture of the organisation they are joining?

Remote onboarding webinar

On Wednesday 22 July, AAT is hosting a free Q&A session on how to successfully onboard employees remotely.

Register now

Be empathetic

Sherad Dewedi, Managing Partner at Shenward Chartered Accountants and Business Advisors, says that being on the receiving end of an onboarding process is always a nerve-wracking experience.

“It’s important to be empathetic towards the candidate during both the recruitment and the onboarding phase, especially at such an unprecedented time,” he says. “We’ve successfully run the Shenward annual apprenticeship programme for four years, but this year we’ve had to adapt our approach for hiring and onboarding.”

He says that employers often structure their onboarding processes around their own needs, expectations, and requirements and forget that the success of the process relies on the happiness of the employee.

“It’s no secret that the most productive, loyal and hardworking employees are those who feel happy and respected by management, and a valuable part of the wider team,” he says. 

Organise hardware set-up well in advance

Ensure that your new hire has access to all of the technology they need to perform their role at home, including laptops, phones, headsets, and more, says Chris White, Director at Zellis and an expert in systems and technology for core HR processes, including onboarding.

“Where possible, set up automated alerts from your HR system to your IT team, so that when a new starter has been confirmed, you can work as quickly as possible to get them the equipment they need,” he says.

It is important to make the transition as seamless as possible, says Paul Williams, Director at Highstream Solutions, which provides IT solutions for businesses. 

Talk through your chosen IT software with your new recruit to ensure they fully understand how everything works.

“Send over their new laptop/PC and any accompanying equipment in plenty of time so that they can familiarise themselves with it and set up their new home office. 

“It is also beneficial to do a walk-through with your new employee to ensure they understand their new IT software,” he says. “Be aware that this may be a suite of tools that they have not used before, so setting up online training on their first few days is a must.”

Set the right tone from the beginning

Gareth John, Executive Chairman and Director of Accountancy Training College First Intuition, says managers could send an eye-catching ‘welcome to the team’ e-booklet to new staffs prior to their start date.

This could include:

  • Pictures and bios of colleagues
  • Mission statement and core values, perhaps with video links of senior staff talking about the genesis of the organisation
  • What they will need on their first day; P45, driving licence, passport etc.
  • Details of mental health and wellbeing resources
  • Video chat etiquette and dress code expectations

“For their first day make sure you have thoroughly planned out a schedule of meetings and training,” he says. “Communicating your organisational culture, ethics and values should be every bit as important as logistics, policies and procedures.”

A ‘first day’ virtual lunch where the new starter can chat informally with colleagues, and a ‘first Friday’ online social event is a good idea, he says. Sending an M&S voucher in advance so they can buy some drinks and nibbles is a nice touch. 

Schedule regular informal contact

Schedule regular touchpoints to ensure that your new member of staff does not feel isolated or lonely.

“Make sure they are subscribed to receive all of your important internal communications,” says Chris White. “Companies are increasingly using ‘social recognition’ platforms in the workplace, which allow employees to celebrate hard work and achievement in a fun, simple, and social way – using GIFs, memes, videos, and more.”

These platforms can help build a coherent team ethos during the crisis, especially for new starters, since its purpose is to recognise employees who have demonstrated a commitment to company values, he says. 

Lee Owen, Director at Hays Accountancy & Finance, says managers should get a new starter involved as soon as possible with their new team. 

“Add them to a group chat on WhatsApp, Skype or similar, send email updates to inform them of what’s happening in the department and invite them to remote social occasions like quizzes or coffee meetups,” he says. It will help them build rapport quicker with their team and get a sense of the social culture.

“Increasingly we are also seeing employers use virtual office tours to give candidates and new hires a sense of what the workplace looks like. If your organisation does not have access to this technology, you could send photos or even talk the individual through a typical day in the office to give them a glimpse into the culture.”

Use a buddy system

“Have a buddy system where each new starter is paired with a buddy who is not their line manager,” says Gareth John of First Intuition.

“Choose someone who works in the same team or bubble, has a couple of years of experience with the organisation, and shares similar personality traits,” he says. 

Getting it right early on is key for loyalty and engagement at work.

‘Employees are a huge investment and it’s critical to support them — over 40% of leaders fail to meet the needs of a new employee within the first 18 months,” says Jonathan Richards, CEO, and Co-Founder of Breathe, a cloud-based HR software platform which works with SMEs.

“As part of the onboarding process, pair them up with a buddy and encourage them to virtually eat lunch together — this will be a more informal introduction and will help them settle in and become part of the team.” 

Create a virtual culture using communication

“Remote working can sometimes create obstacles to communication, collaboration, relationship building, and accessibility within your team, however, with the right strategy and communication techniques you can still maintain a unified team ethos,” says Lee Owen, Director at Hays Accountancy & Finance. 

“A key element of this is effective and open communication,” he says. “It is important that you establish frequent communication via the right digital tools, taking advantage of all channels at your disposal. Video calls help to build a stronger connection between participants, so make sure these feature heavily in your communication plan.”

As well as maintaining transparency, it is important to build in ‘team time’ on conference calls to provide the opportunity to encourage small talk and build relationships. With fewer opportunities for those impromptu interactions which happen in offices, it’s important to make the time for these virtually to help foster working relationships and build team ethos. 

“Efficient knowledge sharing is another part of creating an ethos that needs attention while working remotely,” he says. “Everyone will possess specialist knowledge that is easy circulated in the office, so encourage them to share this through PDFs, webinars or podcasts. This could be a unique opportunity to encourage your team to appreciate one another’s value.”

Choose the right method of communication

Online meetings can be more regular and shorter than in-person meetings which are great for a feeling of constant engagement, says Gareth John of First Intuition.  A ten-minute daily team meeting at the start and end of each day can work wonders.

“Pick the right platforms for different types of communication,” he says.

This could include:

  • Zoom video calls where there are a number of participants
  • Slack is replacing email for internal communications and can be broken down into channels for different teams and projects, and even for ‘fun and games’. Slack also has an easy one-to-one video call function that replaces a ‘quick phone call’
  • Whatsapp for more social interactions and chatter 

He suggests that managers record meetings at which key news or developments are being discussed so that those that cannot attend are kept in the loop and do not feel excluded.

Think about your own management style

“Managing trainees is not always easy even when you’re in the office, so now everyone is working from home, it can be a real challenge which requires changes to your management style to overcome,” says Lee Owen, Director at Hays Accountancy & Finance.

“While some of your trainees will need reassurance to feel secure and satisfied, others will flourish working more independently under flexible circumstances, so account for personality when supervising and see how you can add different value to the individuals you manage,” he says. 

If you are managing multiple remote trainees, it is going to be impossible to infiltrate every aspect of their working day, so effective delegation is important, he says. 

“Take sufficient time to brief individuals on particular tasks so you can empower them with the responsibility while easing your own workload. It shows you trust your workers to get the job done without too much oversight and helps their development and progression.”

Supervising trainees working remotely does mean that you will need to be sensitive to their schedules, so make allowances where possible.

“Give them the freedom to decide when their breaks will be, how they will spend them and when they get back to work. Offer support wherever possible while also making deadlines clear.” 

Do you really need to have everyone back in the office?

“We are now much more open to recruiting remote workers in the future,” says Caroline Collyer, Head of People, Bright

“This is due to the fact that we have successfully navigated running the company with everyone remotely and adapted comfortably to the tools of communication needed,” she says. “This will do wonders for opening up new roles to a wider range of people and has the added benefit of improving accessibility and diversity.”

Further reading:

Self-employed must register properly to avoid National Insurance snag hitting pensions

HMRC will not make changes to its IT systems to prevent self-employed people from under-paying Class 2 National Insurance contributions.

Concerns have been raised with HMRC by professional bodies representing self-employed agents over instances where Class 2 National Insurance Contributions (NICs) have not been included in a customer’s Self Assessment (SA) calculation, and as a result go unpaid.

Paying Class 2 NICs is a legal requirement and also protects a person’s future entitlement to State Pension.

HMRC states that most people are correctly registered for SA and Class 2 NICs, and do have their Class 2 NICs included in their SA calculation.

Where this doesn’t happen, HMRC says the underlying reason is that the self-employed person has not correctly registered as self-employed.  They have registered for SA (on the CESA system) but not registered for Class 2 NICs (on the NPS system). As it is the NPS system that determines the amount of Class 2 NICs due this prevents Class 2 being included in SA calculations.

The situation has attracted criticism from the press – see this report in the Guardian.

However, HMRC says all things considered changing the IT system is not a priority.

“While HMRC understands why changes to our IT systems to deliver an automated solution would be desirable any such solution is prohibited by cost and plans in place for the future of the IT systems concerned.”

Agents and self-employed people are being urged to correctly follow the existing self-employed registration process by completing the correct registration form, which will ensure that the self-employed are registered on both the NPS and CESA systems.

Completing form SA1 only results in registration for Self Assessment tax and Class 4 NICs whilst completing form CWFI results in registration Self Assessment tax, Class 4 NICs and Class 2 NICs.

HMRC says it is “keen to make it clearer and easier for the existing process to work and will continue to work with Professional Bodies to help us improve guidance and communications”.

Pension update and planning opportunities

Discover how you can build wealth and assist business growth using pension schemes in this practical webinar.

Watch webinar

Further information

Direct Debit reminder as coronavirus VAT deferral window closes

HMRC has reminded agents that the period for deferral of VAT payments, given as part of coronavirus relief, is coming to an end.

Payment of VAT falling due between 20‌‌ March and 30‌‌ June 2020 can be deferred until 31‌‌ March 2021.

However, VAT returns with a payment due date after 30‌‌ June must be paid in full, on time.

As part of the Government’s support for businesses during COVID-19, HMRC gave businesses the option of deferring their VAT payments if they were unable to pay on time, without incurring late payment interest or penalties.

If you haven’t deferred any VAT payments, you don’t need to take any further action.

Where VAT has been deferred and would normally be paid by Direct Debit, it will now be necessary to reinstate the instruction. This must be done at least three working days before submitting the VAT return in order for HMRC to take payment.

For further details go to GOV.UK and search for ‘Pay your VAT bill’.

HMRC reminds agents that VAT payments that were deferred under the emergency measures should be paid in full on or before 31‌‌ March 2021. You can make ad hoc payments or additional payments with your subsequent VAT returns to reduce the amount outstanding, if you wish.

Businesses that cannot pay the VAT due should contact HMRC before the payment is due to discuss additional time to pay.

Tax expert and former AAT president, Brian Palmer, comments:

It’s a good thing that HMRC is writing out to the VAT registered to remind them to reinstate their Direct Debits. It is highly like that many will not have thought they needed to do this. They probably would not have realised  until they received a reminder from the Tax Department that their 30 June liability remains unpaid!”

Remote control: how to manage and motivate a virtual team

Remote working is different, and you need to think and manage differently if you want to keep staff motivated and productive.

Given that before the coronavirus pandemic only five per cent of the workforce – worked from home, it’s strange to think how the transition to remote working has gone more smoothly than anybody expected.

We spoke to HR expert Natasha Kearslake, director of consultancy Organic P&O Solutions, to get some insights.

From ensuring that water-cooler chat continues to dealing with apprentices in pyjamas, read on for expert advice… 

Remote onboarding webinar

On Wednesday 22 July, AAT is hosting a free Q&A session on how to successfully onboard employees remotely.

Register now

Whether it’s behemoth corporations such as KPM seamlessly shifting its 16,300-strong UK workforce to home working or small practices questioning whether they need to pay expensive office rents, most firms have adjusted to their workers slogging away from their kitchen tables or garden sheds.

Even as lockdowns start to lift, it looks as if some people may never return to their office cubicles or endure soul-crushing commutes ever again. Facebook expects half of its workforce will work remotely over the next five to ten years; Twitter has announced that its staff can work from home “forever” if they choose.

That doesn’t mean that remote working hasn’t thrown up considerable challenges. In particular, many managers are concerned staff could be slacking given that it’s now difficult to monitor them. There are also some reports of trainees being furloughed because the experience of supervising them and delegating tasks has gone so badly.

1. Restructuring your team for remote working

Assess staff needs

“The first step is recognising that some people will adjust to this easily and others will struggle,” says Kearslake. “Assess what remote working means for your people. Do they have enough physical space? Do you need to loan them any equipment? Will home working affect their mental health? Identify these issues first.”

Establish a team ‘check-in’ 

Within your organisation, it’s worth having a team ‘check-in’, somebody who speaks to staff individually on a daily basis at a fixed time. This remote manager will monitor what staff are currently working on, as well as acting as their go-to person should they have any concerns or worries.  

2. Getting the most out of your staff 

Set team objectives and express these clearly

Workers have actually become more productive during lockdown. One recent University of Montreal study revealed that one third of those surveyed feel their performance has improved since they started working virtually.

However, not every boss is confident that their hires aren’t spending all day scrolling through Instagram feeds or playing with their pet dog. In fact, now that physically hovering over their desks is no longer an option, there’s no way of guaranteeing whether staff are slacking or not.

Kearslake’s advice is simple. Because remote-working requires staff to take more responsibility, managers should abandon any ideas about presenteeism. They should ensure that any work produced has to be results-driven, perhaps setting assignments with timescales and deadlines. 

“Because you can’t see staff working, it increases the case for managing by results,” says Kearslake. “Don’t focus on how many hours they should be working. Instead, have a conversation about what you expect them to achieve.”

Clarity is essential here. “You need to be absolutely clear with staff about deadlines and what you expect them to produce by a certain day,” says Kearslake.

If in doubt, managers can monitor email traffic, phone calls or financial performance. However, before you start snooping their data, Kearslake warns that you should check whether such surveillance is in your employment contracts. Another (more drastic) measure is to contact a private investigator: in Las Vegas De Becker Investigations has caught home-workers playing tennis and golfing after their suspicious companies hired the detective agency to do some sleuthing. 

Become an inspiring leader by developing the personal touch

“If you praise people when they produce good work, they’re more likely to repeat it,” says Kearslake. “The postal service hasn’t disappeared – try sending a thank-you card or gift.”

It’s also worth making yourself more visible as a leader, she adds. “Think about content, whether it’s a video you put on your intranet page every morning or blog posts.”

Keeping company culture alive 

The fabric of the workplace thrives on water-cooler chat. Some companies even claim informal conversations lead to innovation – see Google, which keeps its canteen lunch-lines deliberately long in the hope this “serendipitous interaction” will foster inventive ideas.    

But how can you inspire team bonding when everybody has dispersed into isolated, one-person units? Kearslake recommends changing the means of communication. “If most of your work is conducted on email or Zoom, then consider encouraging staff to chat with each other on less informal channels such as Slack, social media or instant messaging.”

The last few months has also seen countless creative examples of staff letting their hair down online: digital happy hours, quarantine quizzes and virtual pizza parties (whereby pizza is delivered to all team members during their videoconferencing call).

3. Managing apprentices and trainees/ Managing younger staff

What to do when an apprentice doesn’t attend a virtual meeting because they’re having a lie-in… 

Start by observing their working habits, suggests Kearslake. “Does this person operate on their own initiative or do they need motivating? Is this apprentice capable of getting themselves breakfast or will they wander through the day in their pyjamas? It’s about seeing how they get on.”

Ditching nine-to-five working patterns is also a good idea. “Work with the rhythms of your staff the best way you can,” advises Kearslake. “Be flexible: concede not everybody needs a 9am start. If somebody functions better when starting later in the day, let them do that. Also, set clear boundaries about what they need to achieve, rather than focusing on when they’re available.”

According to research by Henley Business School, millennials and generation Z (those born those born between the mid-1990s and early-2010s) desire flexible working and would happily trade pay for the freedom to work wherever and whenever they want.

“With that particular age group, if you show that you’re prepared to give some leeway, you’re more likely to win their hearts when it comes to things that you can’t be flexible about,” says Kearslake.

Be mindful of their home working conditions

Junior members of staff, apprentices and trainees are more likely to be working from a parental home or shared accommodation. It’s something that bosses should be conscious of, says Kearslake.

“What kind of space are they working in? Have they got a spare room to work from? Or are they using the kitchen table as a desk? It might be noisy with lots of children around, or they could be caring for their relatives.”

If that’s the case, Kearslake suggests exercising some leniency. “These are unusual times and you can’t apply traditional working principles,” she says. “You’ve got to be understanding about the challenges they’re facing. Find out the best times of day for them to work. It might also mean that the apprentice has a conversation with their families, such as telling their furloughed mother they can’t watch Netflix in the background of their Zoom calls.”

Become acquainted with asynchronous working

Asynchronous working broadly means that business hours won’t be at the same time for everybody.

“Think carefully when scheduling hours for your staff,” says Kearslake. “For example, you could move somebody to starting early before their kids wake up, because that’s the only time when the house is quiet. Or you could shift other staff to the evenings because that’s when they’re most productive.”

Helping workers who aren’t tech-savvy

“Find whatever technology they are comfortable with,” says Kearslake. “If the rest of the team is on Zoom, and they’re more comfortable with telephone conversations, consider that instead.”

Helping less confident trainees

Holding team meetings on virtual conference calls may mean the voices of bashful staff may struggle to get heard. Fortunately, many videoconferencing platforms have chat functions where team members can type messages for co-workers (see Zoom’s ‘Raise Hand’ feature or Google Hangouts’ Google Chat).

4. Employee wellbeing 

Looking after… the physical health of workers

Under the Health and Safety at Work Act 1974, employers have a legal duty to protect staff when they carry out their work. This includes home-workers. Although it’s logistically difficult to ensure staff are using equipment properly – you can’t visit their homes, after all – you must educate and train them on any potential hazards, plus provide any devices to help mitigate any risks. Kearslake suggests referring to the Health and Safety Executive website [HYPERLINK: hse.gov.uk], as well as “giving information to the employee so they can conduct their own risk assessment at home and report back.

Looking after… the mental health of workers

The lack of face-to-face interaction can leave staff members feeling lonely and isolated; one recent Nuffield Health study found that around 80 per cent of British people working from home feel that lockdown has negatively affected their mental health. Managers should check in on the wellbeing of their staff, and refer them to professional support such as counselling should they need it.

5. Recruiting and dismissing

Recruiting virtually

Body language and other non-verbal cues are an essential part of job interviews and something that doesn’t immediately translate to video calls. Kearslake suggests conducting more than one interview for potential recruits and setting them some work. “You can also learn about them from how they turned up for the call,” she says. “Did they attend on time? Did they have tech issues? The way they approach remote working is important, as it’s how we’ll all be working in the months ahead.”

Dealing with underperforming staff and firing them

“You need to change the standard template of any correspondence to reflect the fact that these are unusual times,” says Kearslake. “Also, let them have a say in how the meeting happens. You should never accuse underperforming staff of being lazy either – you need to find out what’s going on [at home] and give them an opportunity for them to tell you they’ve hit a problem.”

In summary

The Covid-19 pandemic has radically altered the way that businesses operate. Even when restrictions are lifted, it’s likely many firms will permanently shift to home working, as it can result in increased productivity and a reduction in fixed costs. By recognising that employee living conditions aren’t always a place of calm, setting crystal-clear boundaries to staff, plus constantly observing what works with remote working (and what doesn’t), managers have a critical role to play if they want their companies reap any benefits.

Further reading

Your views: how will the government pay the bill for coronavirus?

The Government’s measures to help businesses and individuals during the lockdown have been well-received by businesses, but nothing comes for free.

As the country begins a slow return to work, attention must turn to how we pay the nation’s sick bill.

The UK Budget deficit will rise to £300bn, according to the OBR, and something will need to be done about it once the pandemic is over.

It is highly likely that more tax revenue will need to be collected to pay off the deficit – exactly how this will happen, and how soon, remains to be seen.

  • Tax thresholds may change
  • It could result in radical reforms
  • It will require a careful balance of taxes and incentives

Accountants share their views of what the government might do to increase tax revenues once the pandemic is over.

Tax rates won’t change – but thresholds will

Barrie Dowsett, CEO, Myriad Associates

We have to recover this money from somewhere. But the Conservative manifesto has made it very difficult for the Government.

They promised not to increase VAT or National Insurance, so I think they will try to change the thresholds. The wealthy will probably end up paying more towards the deficit we’ve created.

The self-employed have been supported through this pandemic. It’s possible that the government will say that  they have to give something back.

The difference in National Insurance rates between the self-employed and employed workers will get much narrower. They’ve tried it before and it didn’t work, but I think there is more appetite for that, now. The National Insurance rate is certainly an opportunity for them.

I think the measures they take will target the higher earners – high net worth individuals. They will do that not by increasing the rates, but by moving the thresholds so that more people qualify for the highest rate, and they wouldn’t give any more allowances at the bottom end.

I think it will be tiny steps at first so we’ll ease out of this crisis. But I think it will start to ramp up about 12 months afterwards.

Next steps: Keep an eye on announcements, make sure clients are aware of all the incentives available to them.

Verdict: The government will look for ways to tax high earners – possibly by moving tax thresholds.

AAT Opinion: what are the Government’s options to pay for coronavirus?

Borrowing could hit £300bn and unemployment 5 milliion. So how does the Chancellor plot a course out of the recession?
Read

This is an opportunity for radical changes to the system

Anonymous tax adviser

Potentially, there is a political appetite to do some quite radical stuff and do a reset of the system.

Personally, I don’t think that will mean drastic simplification of taxes. I don’t really buy the idea that tax is too complicated, even though people say that if you lined up the tax legislation on a shelf it would be three feet long.  I don’t think that’s the issue.

Complexity for the average person is about how hard it is for to deal with HMRC. They don’t care that the latest Finance Bill has 365 new pages of tax on it. We could certainly tackle some of the unfairness we see, such as the loan charge, self-employed off-payroll contractors, stuff like that.

Certainly the off-payroll stuff is driven by this fundamental difference in our system between how we tax the employed and the self-employed, so that’s something that can be fixed. I know that they have tried very modestly to close the gap and had to do an immediate U-turn. I think there is much more possibility for radical change now. Even though they are viewed as being a right-wing government, it is actually quite radical in itself.

Next steps: Watch for changes, and determine any impacts it might have on clients.

Verdict: We may see some quite bold announcements from government once the pandemic is over.

Any changes that come in will need balance

Rob Mander, tax consultant, RSM International

We need to have a framework of measures that encourage productive investment and consumption. I don’t think it’s as simple as lower corporate tax rates mean more money for companies to invest and higher tax rates mean governments have more money in their pockets.

I don’t think that there’s a linear answer here; if you look at, say, the digital economy, it’s easier to bash up the big digital companies, they’re an easy target. But at the same time, we’ve got to incentivise new digital businesses to set up which to me, is a combination of the right innovation and R&D framework.

We could explore the right support around what I would call your gig workers and casual employees. That might mean things like employee share schemes, maybe tax concessions for co-funding projects with either big business or government so you look around where the growth opportunity is and say how we incentivise it.

Next steps: Monitor suggested changes and get involved in consultations.

Verdict: Taxes will go up, but it needs to be balanced with incentives and needs some thought.

Further reading

Government reveals border controls and puts no deal back on table

TheGovernment has announced its approach to border controls on GB-EU trade in 2021 and it formally notified the EU that it will not accept or seek an extension to the Transition Period.

In recognition of the unprecedented impact that coronavirus has had on all aspects of life, border controls are being introduced in stages, to give businesses more time to prepare. The stages are:

  • From January 2021: Traders importing standard goods will need to prepare for basic customs requirements and will have up to six months to complete customs declarations. Tariff payments can be deferred until the customs declaration has been made. Traders moving controlled goods such as tobacco and toxic chemicals will be required to complete a customs declaration. Businesses will also need to consider how they account for VAT on imported goods. There will also be physical checks at the point of destination on all high-risk live animals and a proportion of low-risk live animals.
  • From April 2021: All products of animal origin (POAO) and all regulated plants and plant products will also require pre-notification and the relevant health documentation.
  • From July 2021: Traders moving all goods will have to make declarations at the point of importation and pay relevant tariffs. Full Safety and Security declarations will be required, while for Sanitary and Phytosanitary (SPS) commodities there will be an increase in physical checks and the taking of samples.

This approach does not apply to the flow of trade between Northern Ireland and Ireland, or between Northern Ireland and GB