Tutors explain how to get the most out of the online classroom

Posted by & filed under Students.

Most students are finding aspects of continuing their studies through the pandemic to be challenging.

Whether you have had to take on extra workload due to Covid-19, your mental health has suffered or you find online learning more difficult, everyone has their own unique situations to deal with. 

We are exploring ways in which you can best prepare and engage with your studies to get the most out of your learning in these difficult times and we’ve asked the advice of tutor Debbie Evans from Walsall College. 

Managing your studies 

You should have a calendar and scheme of work that tells you exactly what module and lesson you are working on each week and this should provide you with a structure for your studies.

Get into good routines, work out the best times for you to do different types of study, and take regular breaks. If you have one day off work each week to study then stick to that day. If not, try to spread your learning throughout the week. Do a little bit every day, even if it’s just for one hour. Don’t leave everything until the last minute as it will cause you stress.

Tips from a tutor: 

  • Talk to your tutor if you are getting behind and need additional support or sessions to stay on track.
  • And if you want additional work, ask for it and your tutor can organise that for you.
  • Don’t put too much pressure on yourself as your health and wellbeing is the priority.

Getting the most out of your online classes

Give yourself time to get ready for your online class. Set an alarm 30 minutes before so that you can prepare by: 

  • Finding a quiet place to set up your computer with a good internet connection.
  • Setting up your webcam and microphone (headphones with a microphone will work fine).
  • Looking and feeling your best so you can have your camera on.
  • Having a notebook and pen ready.
  • Writing down any questions that you want to ask during the class.
  • Having a glass of water to hand.
  • Freeing yourself from any distractions like your phone.

Tips from a tutor: 

  • If you can, have your camera on and use a mic. It makes it much harder for your tutor to engage with you if it’s a blank screen.
  • Tutors will be expecting struggles with certain topics and they should be using online classes to help reinforce learnings and give extra support in particular areas. Give them feedback on where you’d like them to focus.
  • If you feel too shy to ask questions during the class you can use the chat function, stay on the call at the end, or contact your tutor by email afterwards.

What else you can do to maximise your learning potential

If you want to take your studies that step further to really maximise your learning potential, consider these five intentions. 

  1. Turn some of your own personal time into additional study time.
  2. Connect with other students so you can help each other. Share resources that you find useful and arrange extra accountability sessions or calls with other students. 
  3. Make the most of all of the resources that you have available to you. This includes your tutor, tutorial books, your virtual learning environment, AAT resources, YouTube and Facebook groups.
  4. Monitor your own progress and set yourself objectives. Have a look around the AAT Lifelong Learning Portal which is a great place to set yourself targets in.
  5. Celebrate successes in your progress and reward yourself.

Tips from a tutor: 

  • Do not feel alone, there is always someone there to help.
  • Use your progress reviews as an opportunity to discuss target setting and any additional support you need (but don’t wait until that point if you need help before).
  • Request additional revision sessions or support through an extra video or telephone call.
  • Your tutor can signpost you to health and wellbeing support.

Key takeaways 

  • Take ownership of your studies. You’ll get out what you put in.
  • Use all of the resources that you have available to you.
  • Bring your best self to online lessons.
  • Maintain open communication with your tutor. Know that you can contact them and share any concerns you may have as early as possible.
  • Chip away at your studies and make the most of all the resources available to you.

Further reading:

Step by step: How to sign up for AAT Weekly

Posted by & filed under Students.

Make sure you’re signed up for our student newsletter – AAT Weekly for the latest updates, support, and information on your qualification.

AAT Weekly comes out every Wednesday and includes study support, career tips, exclusive discounts, latest industry news, coronavirus (Covid-19) updates, and much more.

Step by step – how to sign up

Here we will show you step by step how to edit your communication preferences in order to be able to receive the AAT Weekly newsletter.

1. Log into your MyAAT account

2. Click on the three dots next to your name (top right corner)

3. Go to ‘Edit my details’

4. Edit your communications preferences by clicking on the arrow

5. Tick the box that says ‘Student essential updates’ – remember to save your settings

6. Hit the save button at the bottom of the page

You can manage your communication preference here

Further reading:

Government plans July budget to tackle debt and kick-start the economy

Posted by & filed under Coronavirus, News.

Chancellor Rishi Sunak is expected to call an emergency budget in July to tackle recovery from the coronavirus crisis.

Over the last week, the Government has revealed details of how it will extend the Coronavirus Job Retention Scheme and has also announced another leg to the Self-Employed Income Support Scheme.

The rising costs of these support schemes is becoming increasingly evident. So too is the pressing need to move beyond them and get the country back to work.

Webinar: Embracing change in uncertain times

As part of AAT Future Finance 2020, this free on-demand webinar explains why certainty is a short-term friend, but your long-term enemy. It also shows how you can navigate change.

Register now

Emergency budget

It is expected that the July budget will first and foremost be a rallying call to revive the economy. However, it is likely to ‘trail’ ideas for tackling the enormous cost, now estimated at £300 bn, roughly the equivalent burden of fighting World War II.

Bank of England economists believe that 25-33% of the workforce is now inactive due to redundancy and furloughing. They expect the economy to shrink by 20% by the end of the second quarter and many more people could lose their jobs as firms struggle to pay furlough contributions.

What to expect

It is likely the Budget will be announced on 8 July and reports expect it to focus on at least three key elements:

  • Training – Retraining workers who lose their jobs when the furlough scheme ends in Autumn.
  • Infrastructure – The Chancellor is expected to bring forward £100bn of infrastructure schemes. Projects could include transport, gigabit  broadband and sustainable energy projects.
  • Technology – The crisis has highlighted the crucial role of technology in creating a resilient economy. The Chancellor is likely to build on the start created by schemes such as the the Future Fund and the Clean Growth Fund.

“It is less likely to be a tax-raising Budget – though that may still happen in the Autumn or in the years to come when recovery is happening,” says Andrew Browne, Partner and Head of Tax at Bishop Flemming.

“The Chancellor has already provided billions of pounds of support to businesses and individuals. But what is needed now is a runway to a sustainable recovery.”

Adam Harper, AAT Director of Strategy & Professional Standards, comments:

“Reinvesting in digital infrastructure, based on upgrading the digital states of businesses,  will have a crucial part to play in any recovery. So will investing in the development of digital skills to harness the digital infrastructure with the aim to create rich growth in productivity and employment”

Browne speculates on his blog that possible Budget measures might include:

  • A temporary reduction of the VAT rate to help certain sectors, such as leisure and tourism
  • Changes to the Apprenticeship Levy – linked perhaps to a new skills fund
  • Fundamental reform of business rates to remove the regressive nature of the tax
  • Another look at how the proposed off-payroll rules will affect the agility of the private sector
  • Further enhancements to R&D tax credits to boost innovation from 1 January 2021 (post Brexit and out of EU state aid rules))
  • Launch of a cross-party resolution to social care

Longer-term

It took 70 years to pay off the cost of World War II. So once the economy is showing signs of life, attention must turn to finding ways to pay for the enormous cost of the Covid-19 crisis.  

AAT’s Adam Harper says:

“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 within that were measures such as the simplification of Inheritance Tax (putting restrictions around Business & 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.”

Your views: ‘entire sectors’ could be lost when furlough is phased out

Posted by & filed under Coronavirus.

The furlough scheme has been a lifesaver for businesses and their workers. But certain sectors will suffer as the Government reduces its contribution.

  • People-focused sectors, such as hospitality, won’t have the funds to pay additional costs as furlough phases out
  • More sectors at risk in the result of a second wave
  • Furlough scheme still praised as an essential lifeline

Details of the next phase of Coronavirus Job Retention Scheme (CJRS) were revealed last week by the Chancellor.

Revised guide to the Coronavirus Job Retention Scheme

Read our comprehensive Knowledge Hub guide to the changes to the scheme and how they need to be applied (members only)

View

Read AAT’s Revised guide to the Coronavirus Job Retention Scheme (members only)

They were largely welcomed by accountants, but concerns were raised over the impacts on some businesses as the scheme phases out.

Part-time furloughing will be brought in from 1 July, which will allow firms to bring in enough resource to complete work without incurring costly inactive days. The 80% furlough rate will last until August. After that time, it will phase out as follows:

  • August: the Government still provides 80% of wages, but employers must start paying National Insurance and Pension contributions (around 5% of employee costs)
  • September: the Government provides 70% of employee wages, with employers making up the other 10%
  • October: government contributions reduce to 60%, with employers paying 20%

For those businesses that see work picking up, this is a manageable phase-out of the CJRS. However, for certain sectors, it may prove to be unsustainable, and they may struggle to adapt to the changes. A second wave of Coronavirus could cause issues for many more businesses unless Government re-introduced the 80% rate. Accountants give their views on the good and bad to be found in the furlough phase-out.

Webinar: Embracing change in uncertain times

As part of AAT Future Finance 2020, this free on-demand webinar explains why certainty is a short-term friend, but your long-term enemy. It also shows how you can navigate change.

Register now

Furlough can’t go on forever – but as it phases out, we could lose sections of the economy

Henry Cooper, managing partner, Birch Cooper

The furlough claim is now part of business as usual, so from a practical point of view, the phase-out shouldn’t cause an issue.

From a monetary perspective, it will be hard to prepare for.

Businesses that can’t open, such as hospitality businesses, are going to really struggle. There may need to be more flexibility in the scheme depending on the sector. Some sectors will bounce back really easily, but if you’re a firm that cannot get the revenue in, you may need help for a longer period of time. We could lose whole sectors of the economy, here.

Take a hospitality business that has furloughed all of its staff, paid them their full wages with its fingers crossed. As the reductions start to kick in, what are they going to do?

There’s going to be a big funding gap between what they can afford to pay employees and what’s coming from the Government. If their business is still a non-starter, I’m not sure what they’re going to do. I think it will put some people out of business.

The flexibility side is good for some firms; if they get more work in, they can bring back more staff for a certain number of days. We have some mechanic clients who could have done with more flexibility in the scheme earlier on.

From the country’s perspective, this can’t go on forever – something’s got to give at some point. In that respect, I think phasing out furlough is the right thing to do, but whether it’s too early or not, only time will tell. If there’s a big second wave of this and there’s another lockdown, what will happen then? Will they go back to the full furlough or not?

Next steps: Help clients make a plan for the furlough phase-out, and identify the businesses that may struggle as government contributions reduce.

Verdict: Some sectors are not ready for the CJRS to end. While it needs to end at some point, it could have catastrophic consequences for some businesses.

The extension is great news, but it’s not easy to implement

Farha Jamadar, finance manager, Todd Doors

The furlough scheme has been amazing. It’s great that it has been extended.

As a company in the retail sector, we do not know what the lasting effects of this will be. If we’re lucky enough to survive this, will everyone else?

It could create issues with our supply chains and products. Phasing out the scheme allows employers to use the Government’s aid to test the waters and change gears, to make operating in a post COVID-19 world possible. So on the face of it, it’s really helpful for us to navigate these uncertainties.

However, the execution and administration is proving to be harder for finance managers and accountants. My concern is that once the legislation is in place, there will be areas that aren’t clear.

The reporting platform is very time consuming and not automated for the submission of information.

I fear that with all these complexities, it will be harder to calculate and submit. Mistakes will be made. I feel HMRC should dedicate some initiative to error-checking or produce calculators to ensure you are calculating this correctly.

There is a month left in the current scheme, so we do have time to review and implement.The fear of submitting wrong information and repercussions leading to this is ultimately our responsibility, juggling this alongside ensuring your company keeps afloat is a hard balance to find.

Next steps: Try to keep up with the changes as more details are announced. Use the time before the CJRS rate reduces to plan accordingly.

Verdict: The extension is a great thing, but it might be tricky to implement as businesses struggle with their day-to-day.

Webinar: The Finance Team’s role in the recovery

As part of AAT Future Finance 2020, you can watch this free webinar showing how finance professionals can help shape the recovery.

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The phase out will push businesses to assess their plans

Andy Sullivan, founder, Complete HQ

I understand why the Government is trying to put the burden back onto the employer a little bit. It’s pushing businesses to assess their plans for the future and work out whether they are over-resourced. It gives them a little bit of a chance to put those plans in place now.

If the scheme goes on much further than it already has, we’re going to find ourselves in a very big black hole. I think October will probably be when we will see a Budget, so it will be interesting to see if any new tax measures will be announced then.

For the business world, it’s been a great support. I think Rishi Sunak has performed very well, and I know a lot of accountants that agree with me.

Business as a whole do see that, although there are issues around new staff and directors not being able to claim for their dividends. But they’ve covered off 80-90% of the economy in two to three months. For once, HMRC did a really good job of rolling out the schemes that they needed to implement. With the hand they’ve been dealt, the Government has one a pretty good job of supporting business. 

Next steps: Be very hands-on with planning and forecasting, and reassure clients that they should often trust their gut instincts.

Verdict: The CJRS has to end, and will encourage businesses to start planning ahead.

Further reading

Revised guide to the Coronavirus Job Retention Scheme

Important HMRC updates to coronavirus assistance schemes

Posted by & filed under Coronavirus.

The Government revealed several important updates to coronavirus support schemes on Friday. Here are the details.

Coronavirus Job Retention Scheme update

From 1 July 2020, businesses using the scheme will have the flexibility to bring previously furloughed employees back to work part time – with the government continuing to pay 80% of wages for any of their normal hours they do not work up until the end of August. This flexibility comes a month earlier than previously announced, to help people get back to work.

Revised guide to the Coronavirus Job Retention Scheme

Read our comprehensive Knowledge Hub guide to the changes to the scheme and how they need to be applied (members only)

View

Employers will decide the hours and shift patterns their employees will work on their return, and will be responsible for paying their wages in full while working. This means that employees can work as much or as little as the business needs, with no minimum time that they can furlough staff for.

Any working hours arrangement agreed between a business and their employee must cover at least one week and be confirmed to the employee in writing. When claiming the CJRS grant for furloughed hours, they will need to report and claim for a minimum period of a week. They can choose to make claims for longer periods such as on monthly or two weekly cycles if preferred. Employers will be required to submit data on the usual hours an employee would be expected to work in a claim period and actual hours worked.

If employees are unable to return to work, or employers do not have work for them to do, they can remain on furlough and the employer can continue to claim the grant for their full hours under the existing rules.
 
Employer contributions

From August the government grant provided through the job retention scheme will be slowly tapered.

  • In June and July, the government will pay 80% of wages up to a cap of £2,500 as well as employer national insurance (ER NICs) and pension contributions for the hours the employee doesn’t work. Employers will have to pay employees for the hours they work.
  • In August, the government will continue to pay 80% of wages up to a cap of £2,500, but employers will pay ER NICs and pension contributions. For the average claim, this represents 5% of the gross employment costs that they would have incurred if the employee had not been furloughed.
  • In September, the government will pay 70% of wages up to a cap of £2,187.50 for the hours the employee does not work. Employers will pay ER NICs, pension contributions and 10% of wages to make up 80% total up to a cap of £2,500.
  • In October, the government will pay 60% of wages up to a cap of £1,875 for the hours the employee does not work. Employers will pay ER NICs, pension contributions and 20% of wages to make up 80% total up to a cap of £2,500.

The cap on the furlough grant will be proportional to the hours not worked.

Many smaller employers have some or all of their employer NIC bills covered by the Employment Allowance so will not be significantly impacted by that part of the tapering of the government contribution.

Around a quarter of CJRS monthly claims relate to wages that are below the threshold where employer NICs and auto-enrolment contributions are due, and so no employer contribution will be required for these furloughed employees in August.

Important dates

It’s important to note that the scheme will close to new entrants from 30 June. From this point onwards, employers will only be able to furlough employees that they have furloughed for a full three-week period before 30 June.

This means that the final date by which an employer can furlough an employee for the first time will be 10 June, for the current three-week furlough period to be completed by 30 June. Employers will have until 31 July to make any claims in respect of the period to 30 June.

Self-Employment Income Support Scheme update

On Friday 29 May, the Chancellor announced an extension to the Self-Employment Income Support Scheme (SEISS) for those people whose trade continues to be, or is newly, adversely affected by COVID-19 (Coronavirus). Eligible self-employed people will be able to claim a second and final SEISS grant in August; this will be a taxable grant worth 70% of their average monthly trading profits for three months, paid out in a single instalment and capped at £6,570 in total.

The eligibility criteria for the second grant will be the same as for the first grant. People do not need to have claimed the first grant to claim the second grant: for example, their business may have been adversely affected by COVID-19 (Coronavirus) more recently. More information about the second SEISS grant will be available on 12 June.

Claims for the first SEISS grant, which opened on 13 May, must be made no later than 13 July. Eligible self-employed people must make a claim before that date to receive the first SEISS grant (a taxable grant of 80% of their average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and capped at £7,500 in total). So far, over 2.3 million people have claimed, with a total of £6.8 billion paid out to support people’s incomes and give us the best chance of recovering quickly as the economy reopens.

In the meantime, please help us reach those self-employed people who could benefit from a SEISS grant now, by encouraging anyone you think might be eligible for the first grant but hasn’t yet made a claim to do so ahead of 13 July. For more details please visit GOV.UK

Coronavirus Statutory Sick Pay Rebate Scheme launched

The UK Government’s Coronavirus Statutory Sick Pay Rebate Scheme is now live on GOV.UK.

If you’re an employer with fewer than 250 employees, you can now claim for Coronavirus-related Statutory Sick Pay (SSP). You can also speak to your tax agent about making claims on your behalf.

The repayment will cover up to two weeks of the applicable rate of SSP. Employers can claim for periods of sickness starting on or after:

  • 13 March 2020 – if an employee had COVID-19 (Coronavirus) or the symptoms or was self-isolating because someone they live with had symptoms
  • 16 April 2020 – if an employee was shielding because of COVID-19 (Coronavirus)

For more information on eligibility and how to make a claim please visit GOV.UK.

Time To Pay – updated guidance

All businesses and self-employed people in financial distress, and with outstanding tax liabilities, may be eligible to receive support with their tax affairs through HMRC’s Time To Pay service. This support is available now, and arrangements are agreed on a case-by-case basis and are tailored to individual circumstances and liabilities.

HMRC has set up a helpline to support businesses and self-employed people concerned about not being able to pay their tax due to COVID-19 (Coronavirus). Anyone who is running a business or is self-employed, and is concerned about paying their tax due to COVID-19 (Coronavirus), can call HMRC’s helpline for help and advice: 0800 024 1222.

More guidance is available on GOV.UK.

Updated webinars now available

To support businesses, our live webinars on a variety of COVID-19 (Coronavirus) related topics, including the Job Retention Scheme, Self-employed Income Scheme (SEISS) and Statutory Sick Pay Rebate Scheme (SSPR) have been updated.

You can book a place on any of our other webinars or watch a recording on HMRC’s YouTube channel

Students: An Assessment update from AAT’s Director of Education and Development

Posted by & filed under Coronavirus - students.

AAT’s Director of Education and Development Suzie Webb shares an update on assessments for our students.


  • Assessments will be reinstated and available on training provider premises from the 29 June 2020
  • All training providers holding assessments will need to adhere to government social distancing policy for both students and staff
  • A new synoptic schedule is now available here
  • We are planning to make remote invigilation available in August for four assessments, allowing students to take assessments at home.
  • We will calculate results for students who could reasonably have been expected to complete the following qualifications this summer:
    ● Foundation Certificate in Accounting – Level 2 (Level 5 in Scotland) 
    ● Foundation Diploma in Accounting and Business – Level 2.
  • Calculated results will be issued on 13 August 2020.
  • Ensure you stay up to date by signing up for AAT Weekly and keeping an eye on our social channels.

Further reading:

Top tips for succeeding as an apprentice

Posted by & filed under Apprentices.

In the first of our three part series, we heard from two apprentices about how their apprenticeship shaped their careers.

Next, we talk to a further two apprentices about what they’ve gained from their studies and the tips they’d give others looking to take on an apprenticeship.

How have the skills and behaviours (non-technical) elements of the apprenticeship helped you develop your career in accountancy?

“These elements of the apprenticeship have opened up my eyes to what I have achieved during my apprenticeship by reminding me of the challenges that I have faced and how I overcame them, and also how far I have developed in such a short space of time,” says Jonathan Ralph MAAT, Accounts/Audit Senior at Menzies LLP.

“The skills and behaviours have helped me to reflect on everything I have learned as an apprentice and identify the areas I need to improve on, finding practical ways to develop my skills. I believe they have helped me to adapt from college to professional life and I think this has been recognised by my team” says Jemma Nicholls, GMS Tax Technology Apprentice at KPMG. 

Any tips for balancing workloads and studying for a professional qualification?

“I would say that a fundamental skill that is required for this is planning and prioritisation. When at work (especially around exam periods) it is essential to keep on top of your workload, by establishing clear expectations with managers and clients. This will ensure that when the priority is the exam, managers understand that you will require your own time to carry out the required studying, rather than certain pieces of work that can be done at a later stage” says Jonathan.

“Balancing workloads alongside study for a professional qualification can be challenging as both require a significant amount of work. It is important that you are in frequent contact you’re your team or line manager to let them know the deadlines you have. Providing them with a schedule of your upcoming exams for the next few months is a great idea so that everyone is aligned and aware of key dates and how they might be able to better support you during periods of high pressure. Planning is essential to effectively manage workloads” says Jemma. 

What value do you feel the AAT qualification brings to the Apprenticeship programme? 

“The qualification itself drills a certain level of responsibility into its learners, by reinforcing some key behaviours such as the ethical principles, but also provides fundamental theoretical topics to allow learners to carry out their day job to a high standard” says Jonathan. 

“The AAT is a highly regarded accountancy qualification which opens a number of different opportunities post qualification. Such a broad qualification allows for apprentices to gain overall knowledge to give them better perspective and understanding of issues in practice” says Jemma. 

What advice would you give to Apprentices to help them develop a first-class portfolio?

“Complete reflective statements on the key skills and behaviours on a frequent basis, by adding real life experiences to different statements as soon as they happen so that they are fresh, which should allow you to express how you felt and how you achieved/overcame such experience,” says Jonathan.

“Plan when you are going to write first drafts, make amendments and collate feedback.  It may seem like you have lots of time, however, this goes very quickly and it is important to be proactive and use the time wisely. Consider how long it will take to collate feedback and request your manager’s appraisal and plan accordingly well in advance” says Jemma.

Which resources in MyAAT did you use to help you prepare for EPA?

“Green light tests were particularly helpful for practice on calculation questions as they would provide a comfort level on the traffic light system on each topic, but also showed workings on how to get to the right answers,” says Jonathan.

“In preparing for synoptic, I found going back over green light tests were useful as well as completing as many of the practice exams and possible to become more familiar with the content – I found that the more comfortable you are with the format and layout of the exams can have a real impact on exam confidence” says Jemma.

What did you find most difficult about developing your portfolio and how did you overcome this?

“The most difficult part I found to be the large reflective statement combining all skills and behaviours. This was because I was struggling to reduce my word count down to the work limit of 3000. To overcome this I initially drafted the whole statement, read through it a couple of times, to try and cut out and improve as much as possible” says Jonathan.

“In preparing my portfolio the most challenging thing was knowing how much detail to include and understanding when I had covered a point enough. I went back to what I had learned from writing my reflective statements and the importance of being concise and this allowed me to analyse my feedback and pick a few of my best examples to include. Taking a step back and self-reviewing what I had written gave me a fresh perspective and allowed me to focus on the aims and produce a portfolio in line with the requirements” says Jemma.

What was the best piece of advice you received from your Skills Coach or Line Manager when you were approaching End Point Assessment?

“I come from a football background so when it comes to approaching a task, I don’t like the whole “good luck” thing, I prefer someone saying “step up and don’t be complacent”. When I was approaching my EPA my training manager said something along those lines, as it is something we had discussed previously and I have used it as a motivation tool” says Jonathan.

“The best piece of advice I received from my skills coach was highlighting the importance of planning and using time wisely. Set a clear timeline for yourself of what you are going to achieve and at what point” says Jemma. 

What are your top tips for Apprentices approaching their end point assessment looking at both the reflective and synoptic element of EPA?

“The tips they gave me for the final exam and also the guidance from colleagues who also went through the EPA process, showed me that it is possible and that I am more than capable of getting through it, if the right level of work is put in” says Jonathan Ralph MAAT, Menzies LLP.

“Make use of the AAT online materials as much as possible, often these are similar to the live exam and will help you better understand the types and style of questions you will be faced with. For the reflective element of the EPA, remember to be concise and demonstrate how well you have performed over your apprenticeship by writing about examples which cover multiple skills and behaviours” says Jemma Nicholls, GMS Tax Technology Apprentice at KPMG. 

Any words of encouragement for Apprentices that are nervous about their End Point Assessment?

“As long as the work that is required is put in, any doubts are communicated/addressed promptly and all resources that are provided are utilised to their utmost capacity, the EPA is doable and is something when complete you can be proud of,” said Jonathan.

“The end point assessment can be a daunting task as it is a key element of the level 4 qualification. Remember, you have overcome challenges to get to this point and you have done a great job so far. This is the final stage in the qualification, keep going and all your hard work will pay off!” says Jemma. 

Further reading:

Assessment update for Training Providers from AAT’s Director of Education and Development

Posted by & filed under Training providers.

AAT’s Director of Education and Development Suzie Webb shares an update on assessments for our training providers.


  • Assessments will be reinstated and available on training provider premises from the 29 June 2020
  • All training providers holding assessments will need to adhere to government social distancing policy for both students and staff
  • Training providers will be allowed to schedule assessments from 22 June 2020 (a week in advance) this time frame has been shortened on this occasion due to the pre-emptive high demand of the service
  • Some changes have been made to the synoptic schedule published based on training provider feedback which is available here
  • We are planning to make remote invigilation available in August 2020 for four assessments.
  • We will calculate results for students who could reasonably have been expected to complete the following qualifications this summer:
    ● Foundation Certificate in Accounting – Level 2 (Level 5 in Scotland)
    ● Foundation Diploma in Accounting and Business – Level 2.
  • Calculated results will be issued on 13 August 2020.
  • The new suite of AAT Qualifications (Qualifications 2021) will now be launched in February 2022.

Further reading:

Coronavirus: Help and advice for landlords

Posted by & filed under Coronavirus.

Landlords are not eligible for many of the schemes available for businesses to help mitigate the effects of the lockdown. Weathering the storm requires careful financial management.

Limited options for landlords

Landlords do not have a go-to safety net, such as the furlough scheme, to ease pressure on their income. This includes those whose primary income comes from property.

Landlords have the option of taking a mortgage ‘holiday’ from their mortgage providers. In reality, this may be no more than a deferral with compounded interest.

“In some circumstances, landlords are in extremely difficult situations,” explains landlord Lucy Fisher. “Many are ‘accidental’ landlords – they may have tried to sell their properties but have been unable to.”

Webinar: The impact of Coronavirus on financial statements

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Fisher was able to offer deferred payments to her tenants. But she is still taking on a lot of risk.

If she does not bring in some income, she could end up defaulting on her mortgage and end up having to sell her home as well as her rental property.

“I have been lucky so far in that my tenants have not taken advantage of the situation. We have all played fair and been honest.

“I hope that normality resumes soon as the lockdown does have enormous repercussions that many are not yet aware of. We will be paying for this economic shutdown for many years to come.”

What can landlords claim?

In addition to the aforementioned mortgage ‘holiday’, not very much.

Some landlords have successfully applied for the Business Bounce Back Loans. This is one of the survival options recommended by the guild of Landlords.

  • Landlords can borrow up to 25% of their annual turnover with a minimum of £2,000 and a maximum of £50,000.
  • The loans are interest and repayment fee for 12 months, and then interest is 2.5%.
  • The loan term is up to six years, but early repayment comes with no penalty.
  • Bounce back loans are unsecured for the borrower, with the government underwriting the risk for lenders
  • Property businesses must have started before March 1, 2020, must still be trading and in financial difficulty due to coronavirus

However, as the guild notes, most banks are not keen to lend to new customers.

Shaz Nawaz is a specialist property tax accountant and managing director of aa Chartered Accountants. He is also a property investor himself and comments:

“Landlords haven’t been very well supported through this pandemic.”

“Landlords who are refinancing or were trying to refinance before COVID, are now being asked if they’re taking a mortgage holiday. If the answer is yes, they won’t approve any refinancing. That’s making it harder.”

What’s the advice?

Nawaz  breaks down his advice for landlords into 4 points:

  • Cut out all of the costs that are unnecessary
  • Look into any repayment holidays or deferrals that they might be able to use
  • Monitor cash flow and look for ways to protect it
  • Work with their tenants to work out a plan that works for both parties

The position with evictions

Under the emergency Coronavirus Act 2020, landlords must give tenants a notice period of at least three months. However, if the tenant refuses to leave, all possession hearings are ‘stayed’ until at least 25 June.

However, evicting tenants who are struggling to pay rent through no fault of their own is not going to do landlords any favours. “It’s a long term relationship, so we’re advising them to hold on,” says Ghanshyam Vaswani, co-director of accounting firm 24Budha.

Even if a landlord asks the tenant to vacate their premises and they leave, it will be extremely difficult to get a replacement tenant who can pay in full. “Landlords would be incurring agents’ fees and other expenditure that they don’t really need right now,” says Vaswani. “We’re advising them to stick with the tenants they have.”

The call to support tenants

AAT President John Thornton has argued for landlords to take proactive, helpful approach. And he urged accountants to give clear parameters to their clients operating in the buy to let market.

“Lots of people in the current situation don’t know whether they have got jobs, whether they offer a load. [Your landlord clients] need to talk to them. It is better to have tenants paying something rather than tenants who can’t pay and disappear.

Accountants should provide an analysis that says “you could afford to drop the rent by X and still survive. This is the margin that they can talk to their tenants about.”

Shawaz says landlords are keen to help but adds a caveat.

“They have to be mindful of their tenants’ situations…Most landlords are very supportive of their tenants, just like most businesses are supporting their clients.

“The problem is that most businesses are getting external support, enabling them to support and assist their clients. That’s not available to landlords.”

Summary

  • Landlords are expected to be helpful, but receive little direct help themselves.
  • Business Bounce Back Loans and mortgages offer some relief. But they also pile up liabilities for the landlord.
  • Tightening up cost-control and cashflow management is essential to survive.

Further reading

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How employers can avoid employee claims arising from Covid-19

Posted by & filed under Coronavirus, Employers.

Employment lawyer Helen Watson shares best practice to avoid being on the receiving end of a workplace claim.

There is likely to be an increase in claims from employees in the wake of the coronavirus pandemic.

It is therefore important that employers remain mindful of their duties and responsibilities. This is particularly relevant to employees returning to work after the lockdown period, or following dismissals arising out of COVID-19.

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Exceptional circumstances don’t give protection

The pandemic has created a difficult set of circumstances for businesses. However, this will not be enough to shield employers from courts and tribunals and many employers are likely to see a spike in claims from employees.

Businesses need to make critical decisions whilst keeping on top of already existing employment legislation alongside the ever-changing guidance set out by the government.

Risks areas

Furloughing and redundancy decisions are among those that may be challenged.

If employers make decisions without following fair and proper procedures, they leave themselves open and vulnerable to different kinds of claims from employees in relation to their employment including:

  • Constructive dismissal
  • Unlawful discrimination
  • Unfair dismissal
  • Breach of privacy

With Boris Johnson announcing phased plans to lift lockdown restrictions, employers are keen to resume to “business as normal” as quickly as possible. That said, it has been made very clear by Michael Gove that the UK will not be going “back to the old normal” and the road ahead is a slow, phased return.

Employers and HR teams have already started planning ahead for a return to work.

However, many workers are concerned about returning to the workplace and want to know that they will be safe.

It is therefore essential that employers put in place appropriate measures to manage risk and ensure that employees feel confident to return to the workplace.

Careful planning and manager training is essential to minimise the risks of claims by employees at this time.

General good practice

Conduct risk assessments and ensure appropriate safety measures are in place

Businesses need to ensure that they are taking all necessary steps to ensure appropriate safety measures are in place, including conducting appropriate risk assessments. It is important individual risk assessments are also carried out. Risk assessments may vary from business to business, but it is essential to consider the following:

  • Travel to work
  • Work space – including sanitisation requirements, social distancing or mitigation measures
  • PPE requirements
  • Mental and physical health and safety at work.

Follow specific Government guidance issued for the relevant business sector.

  • These currently include: hotel and restaurants, working in other people’s homes, factories, working outdoors, working in vehicles, retail and office environments.

Following the guidance given by the Government and Health & Safety Executive in addition to Public Health England Guidelines on social distancing.

Once lockdown is lifted, many of the current recommendations are likely to remain in force, for example:

  • Enhanced hygiene requirements
  • Continued social distancing (where possible) to maintain a 2-metre distance
  • Staggering of hours of work and break times to reduce crowding
  • Isolation for anyone who develops symptoms
  • Reducing touchpoints (e.g. door handles, photocopiers and printers)
  • Restrictions on turnstiles, lifts and shared workplaces such as hot-desking arrangements

Training for managers and all staff.

Training is essential to ensure all managers are aware of potential risks, to address employee concerns appropriate and to spot issues that may trigger disputes and claims:

  • Equality refresher training for all
  • Mental health first aider training
  • Manager training

Communication

  • Ensure all new rules and obligations are communicated to all staff, particularly in respect of health and safety
  • Update disciplinary procedures to make it clear a breach of the new the health and safety measures could result in disciplinary action and the possible consequences
  • Ensure staff are kept up to date with any proposed changes
  • Ensure staff know where they can get support for their well being, including access to Employee Assistance Programmes

Policies

  • It is essential to review policies and procedures and ensure they are up to date, for example, disciplinary and grievance, flexible working, home working policy, equal opportunities, welfare policy and health and safety.

Protecting employee privacy

Employers should be careful not to disclose the identity of individuals who have been infected with Covid-19 unless they are able to establish that it is absolutely necessary to ensure safety at work or to meet public health requirements.

Employers should ensure that data protection compliance documents are reviewed and updated, including:

  • Data privacy notices
  • Consent forms
  • Data registers
  • Retention and destruction forms.

Where transparency and privacy rights collide, employers may be faced with potential safety risks on the one hand and potential risks of breach of privacy rights on the other.

Challenges to furlough and redundancy

Comply with current legislation and ensure all processes are fair, transparent and thorough

It is anticipated that many employers will face potential claims as a result of disputes arising from furloughing and redundancies.

For example, if employees perceive that the reason they were or were not furloughed – or in some cases were made redundant – related to a protected characteristic under the Equality Act 2010, they may pursue discrimination claims.

It is essential that employers still follow current equality law legislation when making decisions and ensure that no employee is subject to unlawful discrimination.

Employers also need to ensure that they follow their internal procedures, the ACAS Code and current legislation to minimise the risk of claims. Whilst adaptations may need to be made to processes, it is essential that employees are aware of any changes, kept up to date and individual circumstances are taken into account which may vary from employee to employee.

It is important employers take steps to minimise the risk of claims against them. We would always recommend businesses to seek legal advice during this time.

About the author

Helen Watson is a Partner and Head of Employment Law at solicitor Aaron & Partners. She is also an experienced advocate and accredited mediator.