Working from home: The top 4 books, webinars and podcasts for you right now

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Make the most of your time at home with these great webinars, books, and podcasts.

Webinars

1.Leadership and Influence

This CIPFA webinar covers the factors that will help leaders in any industry develop a powerful platform for influencing their seniors and peers. It illustrates practical ways in which small changes in behaviours can enhance personal influence.

2. Networking, Networking, Networking!

Presented by Alison Dungworth and Heather White, this practical webinar from the Institute of Chartered Accountants in England and Wales (ICAEW) will help you make the most of opportunities, grow your network and build a pipeline of assignments.

3. Xero Espresso Webinar

Held twice a week, this webinar is the perfect introduction to Xero for
those who are trialling the software for the first time. The Xero team will take you on a tour of the key features in 45 minutes, covering Making Tax Digital, bank feed setup, VAT, reporting, invoicing, and mobile.

Webinar: save hours on data input with Xero and Hubdoc

Watch this free webinar and learn how to use the Hubdoc data capture solution to avoid spending hours chasing small business clients for missing documents.

Sign up

4. Presenting Numbers Effectively

This CIPFA webinar runs through some of the key considerations for making data engaging – including considering the audience, identifying your key messages, and selecting appropriate formats. Plus top tips for formatting and laying out tables and graphs.

Books

1.Cracking The Leadership Code: Three Secrets To Building Strong Leaders By Alain Hunkins

Be inspired by real-life stories from the author’s many years of leadership experience, and use a practical tool kit to become a better leader. Using
the interconnected elements of connection, communication, and collaboration ― Cracking The Leadership Code will help you learn how to communicate, influence, and persuade others more effectively.

2. The Communication Habit: Strategies That Set You Apart And Leave A Lasting Impression By Laura A Lasting Impression

Laura Katen, a leading expert in business communication, explains how to recognise and change communication habits that can hinder success. The Communication Habit provides a practical and helpful guide to applying the right communication tools and strategies in the most common business settings and situations – including recovering from mistakes or negative impressions.

3. Reach The Top In Finance: The Ambitious Accountant’s Guide To Career Success By Sally Percy

Sally Percy explains how to develop a range of skills that will support your personal and professional growth in the finance sector. Whether you work in industry, not-for-profit, or public practice, this book will guide finance professionals who want to know how they can succeed as trusted advisors, business partners, senior leaders, and innovators.

4. Stepping Up: How To Accelerate Your Leadership Potential By Dr Sarah Wood and Niamh O’Keeffe

Follow Stepping Up’s practical five-point framework on how to step-up and achieve your ambitions – vision, values, velocity, votes, and victories. This book will motivate and equip you to understand and respond to changing attitudes, changing technology, and our fast-moving world, as well as develop your ability to lead yourself and others through it.

Podcasts

1.The Cloud Accounting Podcast

One of the most popular accounting and bookkeeping podcasts, this is a must-listen for anyone in the industry. Join Blake Oliver and David Leary at the intersection of accounting and technology for a news roundup and interviews with industry leaders.

2. No Accounting For Taste

The AccountingWEB UK editorial team discuss issues and topics that are impacting the accounting industry. Topics include Coronavirus and the Budget, as well as elections, ethics, tax season, MTD, and the challenges facing accountants.

3. Where Accountants Go

Whether you work in the industry, the public sector, or are looking to start your own business, this podcast will enlighten you on all the possibilities. Successful accounting guests share their stories of how their career has developed.

4. Accounting Best Practices with Steve Bragg

Author Steve Bragg discusses accounting management, best practices, controls, throughput accounting and GAAP for accountants, controllers, and CFOs. He also covers a broad range of business subjects, including accounting technology, closing the books, financing, payroll, and more.

Further reading:

Study tips: Fixed overheads – part 2 actual overheads and under/over absorption

Posted by & filed under Study tips.

In a previous article, we considered overheads; what they are, how they are budgeted, and how they are absorbed.

Now we are going to focus on actual overheads and how they differ from the overheads recovered via overhead absorption rates (OAR’s), including what that means for over and under absorption.

At the end of the last article we had covered the following key points:

  • overheads can be absorbed into the cost of production on either a unit, machine hour or labour hour basis
  • OAR’s are calculated as part of planning a budget and are based on estimates of both production and non-production overheads and expected production level

In our scenario, we had allocated and apportioned the estimated overheads for Charlie’s Chocolates Ltd, a company that makes premium quality hand-finished chocolates, and reapportioned the support department costs to the production and finishing departments:

Expected production levels resulted in budgeted machine hours of 600,000 in the production department and budgeted labour hours of 18,000 in the finishing department.  So we had calculated the OAR’s to be £0.53 per machine hour for production (£317,951 ÷ 600,000 hours) and £7.17 per labour hour for finishing (£129,049 ÷ 18,000 hours).

That took us to the end of the planning phase.  Now let’s imagine we’re in the first quarter of the new financial year, the one we’ve budgeted for and to which the OAR’s relate. 

Throughout the quarter we will apply the OAR’s to the actual hours worked.  So, for example, if 52,500 machine hours were used in the first week then £27,825 will have been included in the cost of production (52,500 machine hours x £0.53 per machine hour) and charged to customers. 

If staff in the finishing department worked for 1,480 hours then £10,612 (1,480 labour hours x £7.17 per labour hour) will have been included as well.  Once the chocolates are sold and customers pay their invoices, these amounts will be recovered and available to pay overhead costs.

Now we need to do a bit of time travelling and skip forward to the end of the quarter.  The OAR’s, based on budgeted costs and estimated hours, have been applied to the actual hours worked and, in that way, money has been recovered.

Let’s remind ourselves of the budgeted figures:

  • Total budgeted overheads amounted to £447,000 which were divided between the production and finishing departments; £317,951 and £129,049 respectively.
  • Estimated hours were 600,000 machine hours in production and 18,000 labour hours in finishing.

Now we’re at the end of the quarter we have the actual figures:

  • Actual overheads incurred amounted to £445,792 which were allocated and apportioned to the production and finishing departments as £318,542 and £127,250 respectively.
  • Actual hours were 600,560 machine hours in production and 17,800 labour hours in finishing.

It is important to note that actual overheads are often different to budgeted overheads because prices change and more, or less, resources such as power are used.  Additionally, the amounts that have been recovered are likely to be different from planned because they are the result of the combination of both budgeted and actual elements.  

In the quarter, the amounts actually recovered were:

  • £318,297 in production (600,560 actual machine hours x £0.53 per hour)
  • £127,626 in finishing (17,800 actual labour hours x £7.17 per hour)

In comparison to the actual overheads incurred the differences are:

  • -£245 in production (£318,297 overheads recovered less £318,542 actual overheads)
  • £376 in finishing (£127,626 overheads recovered less £127,250 actual overheads)

In production, insufficient overheads were recovered in order to pay the actual overheads incurred.  Overheads were under-absorbed by £245.

In finishing, £376 more than is needed to pay the actual overheads was recovered.  This means that overheads were over-absorbed.

In this scenario the values are only small, however, budgeting always involves a degree of educated guesswork so over and under-absorption is a regular occurrence and it’s important to know what each means and how to account for them correctly.

Overheads recovered are recorded in the production and overheads control accounts:

Overheads incurred are paid out of the bank and posted to the overheads control account:

The over or under absorption is the balance on the control account and may be posted to an over/under absorption account:

Under absorption is an expense and will be transferred to the profit or loss account at period end, (either through the over/under absorption account or directly from overheads control account), increasing the expenses and decreasing profit:

Try entering the overheads recovered and paid in relation to the finishing department into some T accounts.  Then make the required adjustments to account for the over absorption.  Check your answers against mine to see if you got it right!

Further reading:

Matilda Witos FMAAT: “Why I love working in business”

Posted by & filed under Career.

Matilda Witos, FMAAT enjoys the flexibility and diversity of her role as a management accountant at an engineering firm.

Now 37, she has no regrets about leaving the world of sales and training as an AAT accountant in her late 20s. “I did finance and accounting at university, but I couldn’t find the right job when I graduated so I ended up doing sales,” said Witos, who is from Romania but has lived in the UK for the last 15 years.

“I decided to do my AAT qualifications when I arrived in the UK because I was looking for job stability and the chance to move forward in my career. “It wasn’t always easy with a full-time job and two young children.

“But it has helped me go from being an accounts assistant with no relevant formal qualification to a management accountant with lots of involvement in business planning and decisions.”

The pros and cons of working in business

Some people assume working for a business will involve less diversity than being in practice with lots of clients. But Witos argues that a career in industry can be just as varied. “Throughout my career, I have worked for a manufacturer, an asset management provider, and now an engineering firm, so I have learned how to adapt my skills to several different industries,” she says.

“My current role is also very varied as I spend about two weeks of each month working on the previous month-end, and the next two weeks on-site reviewing accounts and trying to identify any issues. “

“I had my own business in the past, and I know how hard you have to work to make a success of it,” Witos adds. “So I like having set hours – it means I can clock off in the evenings. “I also enjoy the stability of having a regular income.” However, she recognises that not all industry roles offer the same advantages as her position.

“I go out to meet stakeholders regularly in my current job, but I know not all management accountants get to do that, so I would recommend looking for an employer who lets you meet your colleagues and clients,” Witos says. “It adds variety to your day and gives you a much better understanding of how the business works.”

The advantages of AAT membership

Having upgraded her membership to fellow status last year, Witos attributes much of her success to her involvement with AAT. “Being AAT qualified gives you opportunities and opens lots of doors,” she says.

“It allows you to increase your earning power, and to progress more easily in your career. “It also helps you to go on to do further qualifications if you like. “For example, my AAT qualifications meant I was exempt from the first ACCA papers, which I am now doing because I would like to become a finance manager.”

She also makes good use of the resources available via the AAT branch network. “Being an active AAT member means I can keep up with my CPD and stay up to date with any changes in standards,” Witos says.

“Receiving my FMAAT certificate at the 2019 AAT Achievement Ceremony was a really proud day for me, especially as I was able to share it with my children, who are four and two; I found it really inspiring. “What’s more, having the letters FMAAT after my name gives my employer confidence that I have the required skills to do my job.”

FMAAT membership explained

Held by more than 6,000 professional members, fellow membership of the AAT is the highest level of membership you can achieve. 

Having FMAAT status means you have senior experience, an advanced level of expertise, and – as it is only open to those who have been a MAAT for at least five years – have demonstrated sustained professionalism. 

It gives you increased status in the accountancy world and demonstrates both your loyalty to AAT and a commitment to your on-going professional development.

In summary

The business world can be an exciting and satisfying place to build your career in accountancy. There are lots of opportunities to move up the ladder as you attain further AAT qualifications. You won’t have the freedom of being your own boss, but you will enjoy fixed hours and a regular income.

Further reading

Why FP&A is set to take off after coronavirus

Posted by & filed under Data analytics.

The coronavirus (Covid-19) pandemic has highlighted the importance of future-proofing your business to ensure it can survive unexpectedly turbulent times. Financial planning and analysis (FP&A) technology is making it easier to do.

Apart from uncertainty, the coronavirus crisis has spawned huge amounts of data, highlighting another need for the modern accountant – the ability to transform information into actionable insight.

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

In a rapidly changing and hazardous world, the way accountants do budgeting will profoundly alter. The days when budgeting meant poring over spreadsheets into the small hours will soon be gone.

In its place? Accountants cast in roles such as “analysts”, “architects” and “storytellers”, who’ll deep-dive into datasets using shiny software to determine how a business will perform.  

Welcome to the world of the FP&A team.

FP&A teams

The financial planning and analysis (FP&A) team is an in-house group that works within a company’s finance department. It typically provides senior management with analysis and information to make strategic decisions.

“FP&A doesn’t work on the frontline making the wheels spin,” explains Anders Liu-Lindberg, who co-runs the Business Partnering Institute consultancy. “It’s more strategic and tactical – they work with a much bigger agenda. Historically, there’s never been anybody [in finance] supporting the senior team on this bigger agenda before – now businesses need that support.”

Ready for takeoff after coronavirus

With the Covid-19 pandemic having a seismic impact upon business, the ability for companies to accurately mine and interpret data to guide future performance will be crucial in the years to come.

In recent years, analytics software has become more affordable.  That’s going to make it spread.

“FP&A is set to be even bigger than before,” says Larysa Melnychuk, qualified accountant, CEO at FP&A Trends group.

“All those old budgets and forecasts are dead and worthless now. Companies will have to start over at the beginning. Can they predict what’s going to happen? No. But FP&A can help leaders make flexible decisions.”

Liu-Lindberg agrees: “For many companies, simply knowing how long you can survive in this environment is difficult. Sooner or later, they may run out of cash.

If I was a business-leader, I’d always refer to my FP&A team to give me information and decide what options to go for. They’ll play a critical role.”

From building a team to choosing the right tech, here’s how to get FP&A-ready…

Why do companies need FP&A?

Business leaders are bombarded by scores of decisions every day.

However, when armed with data-driven insights given to them by their FP&A team, they can vastly improve these choices.

Why? Put simply, it provides a real-time (and often more accurate) overview of risks and opportunities. 

“With today’s growing uncertainty and increasing speed of change, business leaders need somebody to tell them, ‘how are we doing?’,” says Liu-Lindberg.

“Classic finance teams can’t really do that – they might show  the CEO some numbers in Excel, but can’t  take it to the next level like FP&A.”

By furnishing shareholders with deal-breaking information on revenue and income, budgets  and forecasts prepared by FP&A can also  directly influence a company’s share price too.

For start-ups and developing businesses, these forecasts are essential – giving them the competitive oomph of higher valuations or attracting investment and talent.

“FP&A is crucial for companies if they want to successfully run a business,” says Glen Foster, director of accounting partners, UK & EMEA, at cloud-based accounting platform, Xero.

“It helps businesses small and large understand how the business is performing, plus forecast costs vs revenues and outgoings vs incomings. It can help implement strategies used to measure success and make decisions on the future of business. Just as importantly, it can spot any potential issues too.”  

FP&A in your company – the first steps

Implementing FP&A can “take anything from a couple of months to two years”, according to Melnychuk.

“If you’re a company of fewer than 30 people, you can start tomorrow. Just hire an FP&A person or allocate an accountant who’s good at it, and do it straight away.”

Before splashing money on swish new software, the first (and probably most important) change should be cultural – convincing your team FP&A is important.

“You could be a company with the best FP&A system in the world, but if you don’t have a mindset that allows for analytical projects, you won’t be successful,” says Melnychuk. “Companies should drive this from the top down.”

“The reason most IT projects fail isn’t  because of technology – it’s because of people and poor time management,” adds Chris Argent, founder of online finance community Generation CFO (and a member of AAT who developed its data analytics course).

Building an FP&A team – the three key roles

1. FP&A architect

This person is the bridge between data management and data science.

“Typically, they work in systems or IT. They’re not just finance people, but also data scientists who can understand statistics as well as mathematics”, says Melnychuk.

2. FP&A analyst

FP&A analyst  is typical role favoured by accountants.

“FP&A analysts marry numerical skills with an ability to analyse different types of data. Thanks to our accountancy training, we’d make good FP&A analysts,” Melnychuk says

3. FP&A storyteller

The main role of an FP&A storyteller is presenting the insight you’ve amassed.

Melnychuk explains:

“You have to deliver this to different audiences, adjusting the detail and jargon to their level of understanding. Whether it’s the CFO or other finance colleagues (who’d appreciate technical detail), your CEO (who might not have a financial background) or the marketing team who want to know why their budget is being cut.

“Unfortunately, many finance professionals tend to be too corporate in their presentation skills. Communication skills are vital.”

Other roles – FP&A data scientist

“This person will introduce the power of big data and predictive analytics,” says Melnychuk. “They might deal with artificial intelligence too, and will work closely with FP&A architects and analysts.”

Choosing the right tech

Quality FP&A software can help professionals centralise budgets, plans and forecasting, as well  as dispense real-time insight.

“The right technology can elevate the role of accountants to business advisors by giving them the real-time data at their fingertips, such as the overall financial health of the business” says Foster.

“FP&A software provides a snapshot of both profit and loss statements and can offer projected statements through forecasting tools, giving them the insights needed to make strategic decisions.”

The sheer multitude of tech providers can befuddle many business owners though.

“Just six or seven years ago, we only had three classical systems: IBM, Oracle and SAP,” says Melnychuk. “Now, there are dozens.”

To make that decision easier, Melnychuk recommends adopting software appropriate to your industry.

“Do your research. Define what you want from the system and look at the type of clients using the software. If you’re in manufacturing, then a sales or marketing-led system won’t be right for you.”

Melnychuk also proposes business leaders book a software demonstration.

“Some systems providers allow you to send them some data, so they can create prototypes for your business.”

Problems and pitfalls

Isolating FP&A

FP&A should be integrated into all areas of the business.

“Some smaller-sized firms turn FP&A into a silo, making it one person’s job who then multi-hats many different roles. To do FP&A well, it needs to partner with people outside the FP&A department,” says Argent.

Adopting FP&A too quickly

Any assimilation of FP&A should be gradual.

“You’ve got to learn to crawl before you can run,” says Argent.

“FP&A can be overwhelming… It’s best to take small steps on a day-to-day basis over a couple of years and you’ll get where you want to.”

Placing all your faith in the tech/software

Machines are great at ‘business as usual’. But as we’ve seen by Covid-19, we often don’t know what to expect.

“Anybody working in FP&A should be cognisant of things that machines can’t do, such as new trends and competition that could affect the business,” says Melnychuk.

Final thoughts

“Being a data scientist has been described as the sexiest job in the world, according to Harvard Business Review – which can lead some people to think they need to learn coding or get an advanced science doctorate at university,” says Argent.

“But in the time it takes to study, the world will move on. Accountants need to keep doing what we’re good at, which is to understand financials and performance, as well as the business.”

As for business leaders, Melnychuk says there’s never been a better time for small businesses to introduce FP&A. “Starting this in two years is too late. It should be done straight away.”

Mind your Ps and As

P (Planning)

The core of FP&A is its capacity to plan, as this involves forecasting how the bottom line can change, plus develop solutions and identify the company’s potential.

When planning, FP&A professionals examine gross and operating margins, variables that govern pricing, fixed and variable costs, plus estimating how long it could take for the business to reach positive cashflow (or not).

However, Chris Argent, founder of online finance community Generation CFO, suggests “performance” should replace “planning” in FP&A’s moniker.

“People get so bogged down in the budget, and how we plan, they forget the reason that budgets exist because it can help improve the financial performance of the business,” he says. “It’s like worrying about a football team having a 4-4-2 formation, when you’ve forgotten that you’ve got to score goals in the game. If you don’t have positive cash flow, you won’t survive very long, which is why performance is vital.”

A (Analysis)

“If you have data, analytics is about presenting it in a way that’ll give you a conviction about the future,” says Argent.

“The difference between traditional budgeting/planning and analytics, is that you’re trying to understand and fix problems before it gets to a performance [planning] conversation. You don’t want to wait for a year or even three months to have an unhelpful conversation about why the business hasn’t hit its budget. Analytics is much more dynamic – it can help people with decision support and trying to intervene before problems arise.”

I’m an accountant –  how can I work in FP&A?

Getting a job in FP&A could be a way of building an arsenal of future-friendly skills.

“There’ll still be opportunities for people who are highly numerate,” says Chris Argent, founder of online finance community Generation CFO. “But if you look at the skills required for 2030, it’s critical-thinking, problem-solving and being tech-savvy. If you want to future-proof yourself, then analytics is a good way to start. Stay in an administrative finance role and you could be putting yourself at risk.”

There’s fierce competition for jobs too.

“An FP&A analyst or planning manager is probably one of our top roles at the moment – it’s the skill set companies are wanting,” says Matt Weston, UK managing director at financial recruitment firm Robert Half. “You’ve got to be commercially aware, have communication skills and enjoy business partnering.”

For those that do work in FP&A, a rewarding career awaits, according to Weston.

“You’ll be exposed to lots of different departments: marketing, promotions, sales. You’ll be at the heart of the business and effectively plan its future.” FP&A is also a relatively safe place to work, as the department is needed in both good times and bad.

Coronavirus updates

Tax Update Series – available online

Tax expert Michael Steed takes you through latest tax changes affecting you, your business and your clients – including coronavirus. Webinars are free to members.

Register now

Apprenticeship levy reform brought into sharp focus

Posted by & filed under Apprentices, News.

The apprenticeship levy has had its problems and more than its fair share of critics, but it has also resulted in a step-change in both employer and public awareness of apprenticeships and that’s no bad thing.

There are still many parents, teachers, and others who continue to have outdated or misguided views as to what apprenticeships are, and this, in turn, has limited the ability of tens of thousands of young people to make an informed choice about their next steps after school or college.

Opening up a variety of sectors

Careers in accountancy, banking, law, architecture, engineering, pharmaceuticals, the civil service, digital, almost every imaginable sector of the economy, are now available through high-quality apprenticeships.

Given there are no tuition fees and thus no debt; that apprentices are paid (many well above the minimum apprenticeship wage); and that practical on the job skills and experience is gained from day one; the alternative of higher education appears less and less attractive to large numbers of students.

To many employers, the increased loyalty, higher productivity, lower staff turnover, commitment to learning, and the ability to directly mould candidates to meet specific business needs, not to mention the help with costs via the levy, make apprentices increasingly more attractive than graduates.

Over 16,000 AAT apprentices

AAT has over 90,000 students of which approximately 16,000 are apprentices. Since 2016, AAT has campaigned for the apprenticeship levy to be renamed the “Skills Levy” and broadened to include traineeships and other forms of high-quality training.

Widening the remit of the levy would help address the fall in apprenticeship starts since the levy was introduced (because more people would gain the skills, confidence, and knowledge to start an apprenticeship), the frustrations of many employers (because of the restrictive nature of the levy as it stands) and the future skills needs of UK plc.

Small and medium businesses could be doing more

Whilst big employers like Rolls Royce, BAE Systems, and of course, “the big four” accountancy firms, rightly draw attention for their large and successful apprenticeship programs, most companies in the UK are much smaller. It is frequently argued that these small and medium-sized organisations could be doing more to take on apprentices.

But it must be remembered that whilst the figure of 5m+ SMEs is frequently promoted by politicians, the media and other commentators, 76% of these SMEs do not employ anyone. It is unrealistic to expect one person entities, that currently have no employees, to take on an army of apprentices or indeed even a single apprentice – not least in the aftermath of the Coronavirus crises. 

Removing barriers to entry

For the remaining quarter that does have staff, there is certainly a need to reduce the amount of management time and bureaucracy involved in the apprenticeship system and whilst the co-investment fee that small businesses are obliged to pay towards the cost of apprenticeships has recently been reduced from 10% to 5%, some will still find this a significant barrier.

In summary

Irrespective of sector, irrespective of company size, it’s clear that the effectiveness of the apprenticeship levy could be improved. AAT has made numerous proposals as to how this could be achieved through an evolutionary rather than a revolutionary process and will keep fighting for positive change.

In light of the job losses and economic pressures about to be wrought upon us by the coronavirus outbreak, levy reform will be brought into even sharper focus and would certainly be in the best interests of Government, employers, the economy, and of course, most importantly, students.

Further reading:

Payments to begin in May for Self-employment Income Support Scheme

Posted by & filed under Coronavirus.

HMRC will start contacting self-employed people this week, as the Self-employment Income Support Scheme (SEIS) will come online on 13 May.

AAT understands that first payments could be made before the end of May.

However, a key decision to enable the early launch is that agents will not be given access to make applications on their clients’ behalf.

Webinar: Self Employed Income Support Scheme

This free Croner-i webinar will explain SEISS, giving a helpful overview and covering eligibility conditions, exclusions and how to calculate grants.. Click below to register.

Register now

A new eligibility-checker tool has been launched today, following the publication of new guidance on eligibility on 1 May. This will also assign a date between 13 May and 18 May after which an individual will be able to make their application. Funds will be paid into their bank account within six working days of submission.

The Government believes around 95% of those who earn the majority of their incomes from self-employment will be eligible for the SEIS. They could receive grants of up to £7,500, including back-dating.

HMRC to contact self-employed

This week HMRC began contacting people who are likely to be eligible, through a combination of emails, SMS texts and letters, to tell them what they need to do to get ready to claim.

Applications will open in tranches based on the unique taxpayer number (UTR) given to all self-employed taxpayers.

Eligibility tool launched

If the eligibility-checker confirms that they are eligible (and they qualify due to being affected by coronavirus and because they intend to continue trading), they will be given a date when they can use the online service to make a claim from 13 May.

The scheme will allow customers to claim a taxable grant worth 80% of their average trading profits up to a maximum of £7,500, equivalent to three months’ profits.

Customers can claim if they’re a self-employed individual, or a member of a business partnership, their business has been adversely impacted by coronavirus and they:

  • traded in the tax year 2018 to 2019 and have submitted their Self-Assessment tax return for that year on or before 23 April 2020
  • traded in the tax year 2019 to 2020
  • are trading when they apply – if they’ve temporarily stopped trading because of coronavirus they will still be classed as trading by HMRC
  • intend to continue to trade in the tax year 2020 to 2021.

Their trading profits must also be no more than £50,000, and at least half of their total income for either:

  • the tax year 2018 to 2019; or
  • the average of the tax years 2016 to 2017, 2017 to 2018, and 2018 to 2019.

HMRC urges agents to help their clients to use the eligibility checker themselves, or if necessary, to use the checker on their behalf, and then help them understand the result, including recommending other sources of support if they are not eligible.

To use the eligibility checker the customer/their agent they will need their: 

  1. Self-Assessment Unique Taxpayer Reference (UTR)  
  2. National Insurance number 

Government Gateway account workaround

HMRC has been exploring ways to manage applicants who do not have a Government Gateway account. AAT understands that the online process will allow two alternatives:

  • Passport number
  • Driving license number

Reaction

Commenting on the latest developments, Chancellor Rishi Sunak said:

“SEISS is one of the most generous self-employed support schemes announced by any government in response to coronavirus.”

“Let me put on record my gratitude to HMRC who have been working night and day to build the SEISS system from scratch. This follows the recent launch of the Coronavirus Job Retention (furlough) Scheme which has also been delivered ahead of schedule.”

Coronavirus updates

Mark Farrar’s 5 lockdown tips

Posted by & filed under Coronavirus.

Here are five tips for making the most of the lockdown from AAT’s CEO Mark Farrar.

I’ve been recording video messages to our members and students this week. But before pressing the record button on my laptop, I wrote down five things that I’m planning to do whilst I’m spending more time at home

I suspect they could apply to all accountants and finance staff:

Full video message

1 Understand the new digital accountancy revolution

Something new drops into my inbox every day whether it’s a software update, CRM, analytics tools or an app that tells me how I can monitor the business cashflow in real-time. So I’m really trying to get to grips with the best of thing and taking the time to see where is adds genuine to AAT or accounting professionals in general.

2 Use social media to keep up to date

Twitter is my channel of choice. It’s an easy way to see what other professional bodies, accounting practice and both education and industry commentators are talking about. It’s like a really good filter of the news, assuming you can follow the right people!

3 Embrace change and the new tools available to us

Had you heard of Zoom when you sat down for your Christmas lunch at the end of 2019? Of course, we’re using Zoom, Skype, House Party and other platforms to run meetings and keep in touch with family and friends. The chances are this style of working will stay with us in some form, so get used to it and get good at using it.

4 Talk to people

Alongside all of this it’s important to keep in touch with friends, colleagues and clients. Schedule regular calls and share ideas, advice and information. Clients, especially, will remember people who helped them and might show loyalty to you and your business in the future.

5 Record your CPD

Make a note of activity. We all know it’s easy to forget to record your learning. But now is a good time to keep a log of the things you’re doing because you will be learning new things and new ways of doing things every day. You just might not be doing it in a structured way through formal learning activities, but if you’re furthering your knowledge, it counts as CPD. We provide useful templates for professional members to help you record your CPD.

Tax Update Series – available online

Tax expert Michael Steed takes you through latest tax changes affecting you, your business and your clients – including coronavirus. Webinars are free to members.

Register now

Engage: Why you should join AAT’s feedback loop

Posted by & filed under Members.

Our members are the reason AAT exists, but we want more of you to engage with us.

As a membership organisation, it is obvious to most that our members are the lifeblood of AAT. Communicating with members is something that AAT does through a plethora of channels, from the blog and magazine to the Informi website for small businesses, a range of e-newsletters, and social media channels. However, it is important that engagement is not one way, and that is an area where you can really help.

Keeping on top of change

Giving us your views helps to ensure regulatory requirements are being met, informs lobbying activity, and helps develop educational provision, as well as the provision of relevant help and advice (in relation to insurance, cybersecurity, anti-money laundering, tax and so on).

In times of challenge, such as the financial crisis or the coronavirus (Covid-19) outbreak, two-way engagement also ensures members can keep on top of rapidly changing situations and challenges – both for themselves and their clients or employers – while AAT is able to react promptly and positively to the experiences of those at the coalface. 

Informing the work of others

However, it is not just AAT and our members that engagement helps – it is a wide variety of external organisations too. For instance, AAT has a list of more than 100 members who are called upon to help inform the work of HMRC, Companies House, the Office of Tax Simplification, and others – so that they can get a good idea as to what AAT members think and do.

Volunteer to support our policy work

These volunteers can get involved as little or as much as they like, in undertaking online surveys, attending focus groups, and occasionally discussing issues on the telephone.

The commitment is far from onerous, but volunteers take heart from the fact they are making a real contribution, and a real difference, to how policy is formed – a policy that will likely impact the accountancy profession and the wider business community as a whole. You can join these volunteers simply by emailing your name and membership number to [email protected]

Additional ways you can get involved

There are lots of other ways you can support AAT and get involved. You could volunteer for your local branch committee to help run events in your area, or become an AAT case study to share your story. Or if you have less time but still want to get involved, you can take surveys and share your views on AAT Green Room, or simply get involved with the discussion on AAT’s social media channels or the AAT Discussion forums. Any contribution will help us to improve what we do and make AAT an even stronger community.

Further reading

“Future resilience is more important than ever”: AAT responds to Access Accountancy’s Bridge Group report

Posted by & filed under News.

Access Accountancy, a group of employers and professional bodies dedicated to the improvement of socio-economic diversity within the accountancy profession, has today published its latest Bridge Group Report.

The report, based on research conducted by the Bridge Group on behalf of Access Accountancy, has found that:

  • 93% of participants rated their awareness of careers in professional services/accountancy as ‘excellent’ or ‘good’ following work experience at an accountancy firm, compared to 58% before work experience
  • Considering selection, candidates entering accountancy from a higher socio-economic background are 15% more likely to be successful than those from lower such backgrounds
  • 51% of applicants to accountancy firms identify themselves as being of white ethnicity, while 42% of applicants are female.

Responding to today’s report, Adam Williamson, Head of Professional Standards at AAT (Association of Accounting Technicians) said:

“As the profession works hard to come to terms with the current Covid-19 crisis, future resilience is more important than ever. We know that diversity of experience and voices adds value in any workplace, and AAT continues to work with the Access Accountancy group to try to open up the profession to people from all backgrounds. 

“The latest Bridge Group report shows that there is still a long way to go, but also shows improvement and, importantly, helps us to identify where our resources may best be focused.” 

Access to the full report available here.

Further reading:

Video message to members from AAT CEO Mark Farrar

Posted by & filed under Coronavirus, Video and podcast.

CEO Mark Farrar shares thoughts on the coronavirus crisis and how it affects AAT and our members.


When we come out of lockdown, the country will need really good accountants, accounting technicians and bookkeepers. So we need to be ready.

Keeping technical and practical knowledge up to scratch will be crucial to be ready for the aftermath. AAT has taken several exciting steps. It has launched a programme of weekly webinars (see below). Future Finance 2020 Online – a two-day digital learning experience will be available free, covering analytics, tax, digital accounting and crisis management. There will also be new e-learning modules, beginning in May, covering Corporation Tax, VAT, and Data Analytics.

Download a transcript

Watch on Vimeo

Tax Update Series – available online

Tax expert Michael Steed takes you through latest tax changes affecting you, your business and your clients – including coronavirus. Webinars are free to members.

Register now

Coronavirus updates

Resources