What accountants think of the Industrial Strategy’s PBS sector plan Posted 07/17/2025 by Caroline Roberts & filed under Artificial intelligence, Members. We asked accountants in the regional hubs covered by the plans whether they could work. The Government’s recent Industrial Strategy outlines ambitious plans for the professional and business services (PBS) sector in the UK. Its vision is of a thriving national PBS ecosystem that will not only support the rest of the economy but will also become the world’s most trusted advisor to global industry by 2035. It also sees the UK remaining the second-largest exporter of PBS globally. Xero’s MTD for IT solution Get a competitive edge with Xero. Attend the showcase to look at the tools and features available. Get your exclusive preview A key part of the plan is to establish regional hubs that will be centres of national excellence for the sector. These will be sited in five high-potential city areas: Liverpool, Greater Manchester, West Yorkshire, the West Midlands, and the Edinburgh-Glasgow Central Belt. It’s hoped that these hubs will play an important role in wider regional development. The aims set out in the Professional and Business Services Sector Plan include: Greater adoption of technology and AI – the Government has pledged to fund short courses to boost digital and AI skills. More collaboration between employers and higher education providers to develop courses geared to sector needs. Increased awareness of career opportunities in PBS, along with more training placements and apprenticeship opportunities. Initiatives to improve diversity and inclusion in the sector. Better access to growth finance in all regions of the UK. We asked accountants in the hub areas for their perspectives. Genuinely encouraged by focus on developing digital and AI skills Adrian Hargreaves, Founding Partner, Everyday Accountants As an accountant based in Greater Manchester, I am genuinely encouraged by the government’s focus on professional and business services. There’s a huge appetite here for growth, innovation and cross-sector collaboration, and the business community is ambitious and forward-looking. The emphasis on digital transformation and AI skills is particularly welcome. Accountancy is already being reshaped by emerging technologies, whether through automation, real-time reporting or predictive analytics. For smaller firms like ours, the opportunity to access government-backed training and support through the hub could be a game changer. It means we can upskill our team and stay competitive in the fast-paced world we face today. Manchester has a strong talent pool, two world-class universities, and a culture of innovation. If the hub model delivers on its promise, it could strengthen the pipeline of digitally skilled professionals, improve collaboration across the PBS sector, and attract even more inward investment to the region. That will also benefit the wider Northwest economy. We also see real potential to grow our client base through the hub. As legal firms, consultants, engineers and other PBS businesses expand in the region, many will need agile, responsive accountancy partners who understand the fast-moving landscape. That is a space we are confident operating in and excited to grow further into. Of course, the influx of new firms into the area may increase competition. But competition is healthy. It drives innovation and standards. For us, the key is to stay close to our clients, continue investing in our people and tech, and focus on providing the kind of personal, expert service that larger firms can sometimes grapple with. Overall, we see Greater Manchester’s designation as a PBS hub not just as an opportunity, but as a clear signal that the region is central to the UK’s future economy. We fully support the government’s ambition and are ready to play our part in making it a success. Verdict: It will enable business to upskill and feed the culture of innovation in our region. Good news for the sector, so long as the Government follows through Vipul Sheth, Chartered Accountant and MD, Advancetrack The Government’s renewed focus on growing the professional and business services sector is a long-overdue step in the right direction. This is particularly true of the emphasis on digital skills and regional development through the new Industrial Strategy zones. As a tech-first business based in the West Midlands, we know first-hand how vital access to training, infrastructure and connectivity is for firms like ours, and for the wider ecosystem of accounting and advisory businesses supporting clients through rapid digital change. The focus on AI and digital enablement is especially timely. Our own Accounting Talent Index has shown that many firms and practices still lack a clear plan for adopting new technologies. If these hubs deliver on their promises and offer real, on-the-ground support to help smaller firms develop AI capability and digital resilience, they could play a transformative role in strengthening the sector’s future pipeline and helping firms move up the value chain. That said, we’ve been here before. The announcement contains some echoes of ‘levelling up’, an agenda that promised much but which ultimately delivered uneven, patchy results. You only need to look at the scrapping of the northern leg of HS2 to see how ambition hasn’t always been matched by results. These new plans must deliver tangible, long-term support, not just high-level rhetoric. The government must be held accountable to ensure that what’s promised in these zones translates into accessible, practical support for firms in places like the West Midlands and beyond. Done right, these new hubs could become catalysts for growth, collaboration, and innovation, particularly for accountancy firms looking to service the next wave of tech-enabled businesses and start-ups. We’ll be watching closely and hope to see real substance in the months ahead. Verdict: The plan is good news, provided the Government follows up with long-term, tangible support. Xero’s MTD for IT solution Get a competitive edge with Xero. Attend the showcase to look at the tools and features available. Get your exclusive preview
What business should know about The Data (Use and Access) Act 2025 Posted 07/15/2025 by Christian Koch & filed under GDPR, Members. The Government recently announced changes to its GDPR rules. Here’s what it could mean for you and your clients. Many businesses will remember the last-minute scramble to comply with GDPR rules in 2018: sending multiple ‘Please stay with us’ emails, putting cookie consent banners on their websites, or fretting about customers suddenly unsubscribing from mailing lists. Ethics and the digital world Visit the AAT Lifelong Learning Portal to find out more about the ethical impact of digital technologies on you as an accountant (log in to view). Find out more These GDPR regulations have now been updated with the Data (Use and Access) Act (DUAA) 2025, which became law in June. The refreshed legislation aims to reduce red tape around data use, with the Government estimating it could inject £10bn into the UK economy. These updates will be much easier for businesses to follow than the existing GDPR regulations, too. The Government has also claimed the DUAA will encourage innovation. Many businesses feel that the 2018 Data Protection Act and GDPR narrowed their marketing reach because customers have increased powers to opt-out. The DUAA may relax these restrictions. What does this mean for business? Although GDPR impacted nearly all organisations in 2018, the DUAA isn’t a radical makeover. As Louise Brooks, head of consultancy at data privacy experts DQM GRC says, “From a data protection perspective, these are tweaks to the legislation, rather than seismic changes.” Businesses won’t need to drastically overhaul operations, but they may wish to rethink aspects of their marketing and data strategies. What are the main updates? Cookie consent rules are changing The big change for businesses is that they’ll no longer need to get consent from website visitors for essential cookies when used for ‘low risk’ reasons such as security, basic analytics or to improve website functionality. Essential cookies are the ones that keep you logged into a website or remember your preferences, such as language/items saved in a shopping cart. “This will be amazing for companies who want to understand how people engage with their website but [until now] have felt hamstrung because they’re not getting the consent options to release this info,” says Brooks. However, we shouldn’t get too excited about the death of the cookie banner just yet. Any cookies related to direct marketing (where businesses communicate directly with consumers) and tracking will still require consent. And because many websites will still be serving EU visitors, they’ll still need to comply with EU cookie laws – meaning they may continue using cookie pop-ups for simplicity. Charities get a ‘soft opt-in’ boost GDPR hasn’t been great for charities. Many have reported shrinking databases due to stricter consent requirements, making fundraising more difficult. The DUAA has introduced a ‘soft opt-in’ for email marketing. This doesn’t mean charities can start blanket emailing everybody in their contacts database, as the soft opt-in only relates to people who they have an existing relationship with, for example those who have previously donated or expressed interest in the charity. Legitimate interests Before the DUAA, businesses could process personal data without explicit consent if they had ‘recognised legitimate interests’ such as national security, emergencies or safeguarding vulnerable people. This usually involved making an assessment where businesses would weigh up these interests with the impact on the individual’s privacy. Under the DUAA, businesses no longer need to make this ‘balancing act’. The upshot? “Organisations will have a bit less documentation to do,” says Brooks. “They’ll still need to demonstrate [the use of personal info] is a necessary activity, but there won’t be a balancing act.” It’s set to have the most impact in areas such as direct marketing, adds Brookes. Now “if an organisation wants to undertake direct marketing on a new audience, it can apply the recognised legitimate interest basis without the need to undertake an assessment.” Automated decision-making (ADM) restrictions relaxed The rise of AI has triggered an explosion in the amount of ‘automated decision-making’ (ADM) in our online lives. These are decisions made without any human involvement, such as a bank using an algorithm to determine whether an applicant is right for an online loan. Or companies using algorithms to screen which CVs reach managers’ eyes. Because the Government wants to encourage AI innovation, it’s eased the restrictions on ADMs. However, this only applies for ADMs that don’t involve ‘special category’ data (such as health, race/ethnicity, sexual orientation or biometric data). “Before the Act, there was a general prohibition against ADMs, unless you met certain circumstances,” says Brooks. “The Act has now removed that general prohibition, so it’ll allow organisations to make automated decisions in a wider range of circumstances.” Businesses using ADMs will still need to inform people that their computers have made decisions about them, while giving them the chance to dispute the decision. Subject access requests (SARs) clarified Subject access requests (SARs) allow people to ask organisations for copies of any personal information held about them. The DUAA has clarified its rules for handling SARs. Businesses are now only required to conduct SARs that are “reasonable and proportionate” to the request, which could save hours of time sifting through data for ambiguous or obscure requests. Note: If “reasonable and proportionate” sounds vague, that’s because it is – businesses will need to wait for more guidance from the ICO. “It’s going to be most helpful for organisations who receive a huge volume of complex requests/SARs, because it might streamline the extent of their searches,” says Brooks. The one-month deadline usually needed to respond to a SARs can now be paused with a new ‘stop the clock’ mechanism, which organisations can use if they need more information from the requester. The ICO’s powers are strengthened The Information Commissioner’s Office (ICO) – the UK’s data protection regulator – has been given more powers. These include the authority to levy fines of up to £17.5 million (or 4% of global turnover) for breaches of the Privacy and Electronic Communications Regulations (PECR) – a steep increase from the previous maximum fine of £500,000. What kind of firms could receive a £17.5 million fine? Brooks says it’ll be those companies “who don’t get consent for marketing and tracking cookies”, before adding that the ICO is currently reviewing the UK’s top 1,000 websites for compliance with data protection laws. When will the DUAA updates take place? The changes will be phased in between August 2025 until June 2026. What do I need to do now? Relax. Businesses won’t need to take any immediate action, says Brooks, because the provisions are yet to be rolled out. However, she advises that business leaders ”start thinking about the changes and whether they apply to your organisation.” She also suggests keeping an eye on ICO guidance. If you have users in the EU, it may make more sense to continue sticking to GDPR standards. Says Brooks: “Because the UK is ‘lowering’ its data protection standards, it might be better to stick with the EU GDPR compliance, because everything will still be the same.” Find out more UK GDPR and DPA factsheet PEC Regulations factsheet ICO plans for new and updated guidance. Ethics and the digital world Visit the AAT Lifelong Learning Portal to find out more about the ethical impact of digital technologies on you as an accountant (log in to view). Find out more
The violations that could hand you a £5,000 fine and disciplinary action Posted 07/14/2025 by AAT Comment & filed under Anti-money laundering, Anti-money laundering, Members. Receiving or holding client money? It’s vital that you read this to avoid sanctions. AAT’s Clients’ Money policy (PDF) outlines the compliance rules placed on all licensed members who are receiving and holding client money. It is designed to protect client assets and money. All firms are required to keep client money separate from the firm’s own money, and must open a specific clients’ money account. Don’t miss out on the licensed member support series We’ve tailored a webinar series for practice owners seasoned and new. Get insights and practical guidance from industry experts, covering essential and emerging topics relevant to SMEs. Sign up now All breaches are investigated in accordance with our Disciplinary Regulations and result in a reprimand and a monetary fine of up to £5,000. The following key regulations are often the most common breaches around clients’ money identified during AAT’s practice assurance monitoring activity. If you hold client money, or plan to do so, make sure you familiarise yourself with the policy and understand what’s required. Verify client identity Before receiving or holding any money on behalf of a client, you must first ensure you’ve verified their identity. Requirements have become stricter over time, so make sure you verify pre-existing clients’ identities to the same standard as you do for new clients, as under the current money laundering regulations. Open a client bank account All firms are required to keep client money separate from the firm’s own money in segregated accounts with trust status. Failing to do so puts your clients at risk should your firm become insolvent while holding the money. Lawful and legitimate purpose A firm’s client bank account must only be used for a lawful and legitimate purpose and bona fide transactions. Payments into and out of the firm’s client bank account must only relate to accountancy services that are (or have been or will be) provided by the firm. Obtain a trust status letter You have a responsibility to safeguard client money adequately. This means a firm must have a trust letter from the bank holding its client money to ensure, in the event of a firm’s insolvency, the client money is clearly identifiable and separate from the firm’s own assets. This will allow funds to be returned to the client quickly. We have produced a draft letter template (DOC) that meets AAT’s criteria to assist you with obtaining this from the bank. Immediately pay monies into client bank accounts All clients’ money or mixed monies received by you or another principal at your firm must be paid immediately into a client bank account or directly to the client without any delay. Clients’ money must be held in the currency in which it was received unless the client instructs otherwise in writing. Follow regulations regarding designated accounts Where your firm holds or expects to hold a client’s money for more than 30 days and/or a sum in excess of £10,000, the money must be paid into a client bank account designated by the name of the client or by a number or letters allocated to that account. Check permissions on withdrawals from a client bank account There are several restrictions on when you are permitted or not permitted to withdraw money from a client account. Please refer to paragraph 24 to 29 of the Clients’ Money policy for full details. Please note any withdrawals must be authorised by a principal of the firm, or by an employee of the firm who holds written authority delegated by the principal. The written delegation should specify any restrictions on its use. Manage interest correctly You should always place your clients’ money in an interest-bearing account unless the interest earned would not be material. Make sure that a fair rate of interest on the money is earned, and ensure that all interest earned is paid or credited to the client, or as the client instructs in writing. Maintain accurate records A firm must keep clients’ money records, showing all the following: details of all money paid into and out of all client bank accounts entries of all clients’ money paid direct to the client, or, on the client’s instructions, paid to a third party, identifying that person entries of all cheques received and endorsed over by the firm to the client or, on the client’s instruction, endorsed over to a third party, identifying that person entries of all electronic money transfers received or made and transferred direct to the client or, on the client’s instructions, transferred to a third party, identifying that person details of all transactions on each client’s ledger account, which will readily identify the balance held for each client and which will reconcile to the total of clients’ money held in the client bank accounts details of all unclaimed monies withdrawn from the client bank. Undertake regular reconciliation At least once every five weeks, a firm must reconcile the total balances on all client bank accounts with the total corresponding credit balances in respect of its clients, as recorded by it. Firms must ensure figures are correct and immediately correct any differences identified. Conduct a client money annual review All firms must ensure they conduct a review at least annually. This is an opportunity for you to consider whether your systems and procedures comply with the Clients’ Money policy. Where possible, the review should be conducted by a principal who is not involved in the handling of clients’ money. Below are some key areas to consider during the review. This list isn’t exhaustive. Has a client bank account been set up in line with the conditions of AAT’s Clients’ Money policy? Can you justify the need to hold the client’s monies? Do you have a trust status letter from the bank in your records? Do you have designated account(s) if holding money for 30 days or more than £10,000? Do you have client instructions for payment, fee offset if applicable? Do you hold up-to-date client due diligence/identification of client details? Are reconciliations performed at least every five weeks on all client bank accounts? Are you retaining all records for at least six years from the date on which they were made? Do you have written operational procedures for dealing with clients’ money? What action(s) were identified and actioned from the previous annual review? What’s the date of the next annual compliance review? Don’t miss out on the licensed member support series We’ve tailored a webinar series for practice owners seasoned and new. Get insights and practical guidance from industry experts, covering essential and emerging topics relevant to SMEs. Sign up now
MTD for IT schedule for licensed members Posted 07/14/2025 by AAT Comment & filed under Making Tax Digital, Members. The Making Tax Digital for Income Tax schedule is available now. A new Making Tax Digital for Income Tax (MTD for IT) schedule was published in June 2025 by the Joint Professional Bodies Engagement Letters Working Party. It is available in our online licensed member support hub. This schedule can be used by members with clients who must comply with the requirements of MTD for IT, and in relevant cases, is to be used instead of the existing Personal Tax – Sole Traders and Property Income schedule included in the main engagement letter guidance. This schedule should be read in conjunction with the engagement letter and the standard terms and conditions. The AAT Making Tax Digital centre Stay informed on the latest updates and key dates for Making Tax Digital (MTD) – including changes that affect sole traders, landlords, agents, and businesses – and access exclusive webinars and guidance with our Making Tax Digital centre. Don’t miss out on the licensed member support series We’ve tailored a webinar series for practice owners seasoned and new. Get insights and practical guidance from industry experts, covering essential and emerging topics relevant to SMEs. Sign up now
AAT success stories: a fresh start in a new country Posted 07/10/2025 by AAT Comment & filed under Inspiring stories. From learning to speak English, to qualifying as an accountant, Dana Henželová’s AAT journey came with many hurdles to overcome. Dana Henželová at a glance… Age: 35Years in accounting: 8Name of employer: AzetsTop tip for students: Networking and friendships with other students will keep you motivated, and distance learning can enable you to earn money while studying. In 2012, Dana Henželová MAAT came to the UK from Slovakia without knowing any English. Now AAT Level 4 qualified and studying ACCA, her journey into the world of accounting and finance began when she joined the AAT distance learning course at her local college. With the support from family and friends, plus a lot of hard work, she has now passed her first two ACCA exams. That drive and spark for accounting first started back in Slovakia when Dana created her own cleaning business. Discovering a love for numbers Dana’s cleaning business was so successful that it was bought out by one of her clients, and she went to work with him in the finance department of his firm. That experience made her think about pursuing a career in accountancy. “I completed AAT Level 2 and it was very challenging for a lot of reasons. I didn’t have any office experience and English was not my native language. I self-funded AAT Level 2 in instalments and it took me three years to complete. All the time I was paying for my training by working as a cleaner.” Having a real career that she could progress in was Henželová’s main motivation, and she kept going despite a number of setbacks. “When I set off with my AAT studies I knew that in five years’ time I would be on a better salary and developing my professional skills,” she said. “I had studied economics at school and university, so I have always been interested in numbers and finance. My bookkeeping skills from running my own business were also useful.” The hardest part of her AAT journey was when she didn’t pass the exams the first time. Part of this was due to taking technical exams in English. She said: “I had worked so hard and I used to question what I did wrong. However, the experience did teach me resilience and how to handle stress. I was also really stubborn, which helped me to keep going. Once I had started AAT, I wanted to finish it and I just kept my end goal in mind.” Work experience and progression After achieving AAT Level 2, Henželová was keen to get real-life experience. She found a full-time job with ProCook in Gloucester in the accounts department, where she stayed for three years and completed AAT Level 3 as an apprentice. She then moved to the audit department and completed Level 4 via Kaplan, funded by her employer. She then moved to the audit department of Azets, a specialist accounting firm, where she has progressed on to ACCA and has just successfully completed her ACCA Finance Management, Financial Reporting and Law and Performance Management exams, with the end goal of completing ACCA by the end of 2026. “In my current role I am doing a lot of field work where you visit the client,” she said. “It’s fascinating because every business has something that they do really well and something that could be improved. Many people think auditors are scary, but we are here to understand the financial side of the business, and to help improve it.” Dana persevered with her studies despite experiencing setbacks. Her resilience is a lesson for all students that you learn through failure, and sometimes it won’t always go the way you hope on your first try. Dana added: “Whether you pass or fail an exam, reward yourself. If you have worked hard and done your best then you need to celebrate that, shake off your disappointment and begin studying again.” Further reading AAT success stories: studying alongside playing professional football AAT success stories: from student to business owner AAT success stories: defying the odds to become a qualified accountant
Working with AI: boosting your career in the right way Posted 07/09/2025 by AAT Comment & filed under Students, Technology. Despite the near-constant talk about AI and its growing role in accounting and the workplace, there will always be demand for personal interactions within the industry. Here is how you can work in harmony with AI and use it to your advantage. There is no denying that technological advances have revolutionised the accounting profession over recent years. As an accountant in 2025, many basic tasks can now be done in minutes rather than hours, a development that is helping to push productivity to new heights at forward-thinking firms. But while the time-saving benefits of such programmes cannot be denied, their increasing adoption within the sector has prompted fears of technology such as artificial intelligence (AI) taking over and rendering human accountants null and void in years to come. Fortunately, even with automated and AI-powered systems becoming smarter and more powerful, there is no danger of tech replacing humans in accounting any time soon. One of the main reasons is that we can’t teach technology to respond with emotional intelligence (EQ) or a moral conscience. Similarly, we can’t teach it to communicate with colleagues and clients in an empathetic way. Even the most sophisticated programmes are only as good as the data humans give them to work on. So, what are the advantages of working in harmony with AI to help bolster productivity? Reducing human error One of the advantages of using technology in accounting is that it reduces the likelihood of human error skewing the calculations. But these systems are not failproof as AI cannot exist without human input, training and support. They are, for example, unable to recognise when the data they are given is incomplete or inaccurate. They also need humans to check their findings and manage other risks, such as changing circumstances that affect the algorithms and make them unreliable. When environments or circumstances change, humans need to tweak AI systems – for example, by modifying the underlying data or fine-tuning the processes AI is being asked to complete to meet current guidelines or fit a new business strategy. People and machines working together AI and other accounting technologies can be a massive help when it comes to completing certain everyday tasks. Areas of accounting in which today’s technology can handle processes almost single-handedly include: Procurement: AI makes it easy to track price changes among a wide range of suppliers, so you can be sure you’re always getting a good deal. Expense management: the right accounting software will check receipts and review expenses, making it much easier to keep spending in check. There are also lots of accounting tasks that machines can help with, despite the ongoing requirement for a human touch. Auditors, for example, can make use of machine learning to pinpoint exceptions that need further investigation on their part. Ways to future-proof your career While human intervention remains crucial to the effective use of technology in accounting, there is no doubt that the growing capabilities of these new programmes and systems are changing the way finance professionals work. That means the skills you need to succeed in the accounting profession are changing, too. Future accountants will undoubtedly need to be tech-savvy, as well as technically proficient. But although an understanding of data analytics, for example, will stand you in good stead when applying for accounting jobs, it is also worth concentrating on honing soft skills such as communicating and strategic thinking, as these are what differentiates men and women from machines. Further reading AI focus: how artificial intelligence can help accounting students thrive How to partner with AI as an accountant 5 ways to develop your leadership skills from day one
Where can an AAT qualification take me in my career? Posted 07/09/2025 by AAT Comment & filed under Students. An AAT qualification opens up a range of exciting opportunities, from working in practice with individual clients and businesses, to pursuing a career in industry or the public sector. The most important aspect of your first job is the opportunity to put your AAT studies into practice. As you gain more experience, you will find out whether you enjoy working with clients, growing a business, contributing to public welfare or taking on a more commercial role. Early on, focus on developing your professional skills, which are readily transferable across sectors. As a student looking for an accounting apprenticeship or your first job, how do you choose which sector to work in? The decision between a career in practice, business or the public sector involves balancing your own personal interests and skills. Each sector has its own culture and opportunities, plus you can move between sectors as your AAT skills are valuable and transferable. Working in practice A career in practice typically involves working in accounting firms, ranging from small offices serving the interests of local people and businesses, to organisations with large international networks that offer auditing, corporate finance and legal advice – such as the accounting ‘Big Four’ of Deloitte, PwC, EY and KPMG). In smaller firms, you will have a lot of direct contact with clients and learn skills around supporting small and medium-sized enterprises (SMEs), helping them plan and manage their businesses, and personal tax. Often these relationships are long-lasting and you have the satisfaction of watching their business grow. Larger firms tend to provide a fast-paced, dynamic environment that demands technical expertise and a deep understanding of specialist aspects of accounting. You will needstrong technical skills, attention to detail and the ability to build excellent client relationships. You will explain changes to tax and legislation to non-financial people and build strong networking and communication skills. Industry and the corporate sector Working in the business or corporate sector means joining the finance team of a company. This environment tends to be more structured around reporting dates and regulations, and offers the opportunity to become a specialist in areas such as management accounting, financial planning or internal auditing. You will learn how the finance team plays a key role in business strategy, decision-making, budgeting and risk management. As well as working on payroll, cash flow, credit control, supplier accounts and annual reports, corporate accountants need to be able to communicate complex financial information to non-financial colleagues and articulate their recommendations for strategic business decisions. You will play a key role in guiding decision-making processes through financial analysis and budgeting. Key skills include analytical thinking, problem-solving and managing your time well. Public sector The public sector offers opportunities in government bodies, regulatory agencies and public institutions such as hospital trusts, emergency services, education, local government, waste management and law enforcement. Working in this sector requires a different focus, as accountants need to be accountable, transparent and provide value for money for the public purse. Since these organisations are not primarily profit-driven, this sector often appeals to people who are interested in providing a service to the community. A key difference is that you will need to be able to navigate complex regulatory frameworks and make decisions based on industry standards and specific tendering requirements. You will need to have strong organisational skills and be committed to high standards of integrity. Whatever path you take, AAT is there to support students every step of the way. Further reading Coping with stress when studying for your AAT qualifications Why employers look for AAT qualifications What should I do once I’ve completed all my AAT qualifications?
5 ways to develop your leadership skills from day one Posted 07/09/2025 by AAT Comment & filed under Students. Leadership abilities aren’t just for those with ‘manager’ in their title. These skills create value in any role and can set you apart from the start of your career. Here is how to adopt these skills from your first day as a student. When most people hear ‘leadership skills,’ they think of managers with teams reporting to them or executives making major decisions. However, leadership skills are valuable for everyone, even if you’re applying for your first role. Leadership skills are abilities that help you guide projects, work with others, and make decisions effectively. They include: Communication: expressing ideas clearly and listening well; Problem-solving: finding solutions to challenges; Decision-making: making good choices with available information; Emotional intelligence: understanding your and others’ feelings; Adaptability: responding well to change; Initiative: taking action without being prompted; Reliability: being someone others can count on. How to develop your leadership skills from day one Building leadership capabilities is a gradual process that starts with small, consistent actions. Here are practical ways to strengthen these skills from your first days in the office. 1. Observe effective leaders Pay attention to colleagues whose approach you admire. Notice how they lead by example, handle difficult conversations, run meetings efficiently, make decisions under pressure, motivate others, and respond to setbacks. 2. Take initiative Look for opportunities, no matter how small, to show initiative. Volunteer for projects that need someone to coordinate them, suggest solutions rather than just pointing out problems, follow through on commitments without reminders, and help new team members get oriented. 3. Ask for feedback Regular feedback helps you get better faster and demonstrates that you’re keen to improve and advance. Regular feedback helps you improve faster. Ask your manager for specific input on your communication style, request observations about how you handle challenging situations, and be open to constructive criticism about your work approach. 4. Practice self-awareness and self-management Before you can lead others, you need to lead yourself. Manage your time effectively, follow through on your commitments, stay organised, control your emotional reactions, and take responsibility for your mistakes. 5. Develop your emotional intelligence Understanding yourself and the way others feel about things is crucial. Practice recognising your emotional responses, consider situations from others’ perspectives, notice how your words and actions affect those around you, and adapt your communication style to different personalities. Why do leadership skills matter? Employers look for staff who can work independently and show potential. By demonstrating leadership qualities early on, you signal that you’re someone worth investing in. Good leadership skills improve how you interact with colleagues at all levels. When you communicate clearly, listen well, and show empathy, working relationships become smoother and more productive. Even in junior roles, you’ll likely work on projects where you need to coordinate with others, meet deadlines, and deliver results. These situations require leadership skills regardless of your job title. The good news is that it’s never too late to start adopting these skills. So, how will you introduce leadership into your studies? Further reading Advance your studies with these problem solving skills Top tips for enhancing your studies while working from home What can I do to manage stress and anxiety while studying?
June 2025 AAT Disciplinary, Professional Standards and Regulation update Posted 07/07/2025 by AAT Comment & filed under Anti-money laundering, Members, Practice management. Minor amendments to AAT’s Standards and Regulations members should be aware of. We have made a number of minor changes to some of our standards and regulations with the approval from the Professional Standards and Regulation Board (PRSC). AAT Regulations 2025 (PDF) Client Care policy (PDF) Professional Indemnity Insurance policy (PDF) Clients’ Money policy (PDF) Continuity of Practice policy (PDF) The changes address areas where stakeholder feedback suggested clarity was required, and in some cases, the amendments reinforce positions we had already clarified through our guidance. The amendments focus on changes which remove or amend impractical requirements, while still protecting the public. A summary of the changes can be found below. This is an opportunity for all licensed members, however new or longstanding, to read each document in full and familiarise themselves with our compliance requirements. Common disciplinary cases resulting in sanctions and monetary fines include non-compliance relating to inadequate PII insurance, clients’ money contraventions, and failing to issue correct terms of engagement to clients. Please ensure you or your firm avoid similar mistakes. Further details can be found on our Disciplinary Outcomes page. Don’t miss out on the licensed member support series We’ve tailored a webinar series for practice owners seasoned and new. Get insights and practical guidance from industry experts, covering essential and emerging topics relevant to SMEs. Sign up now In summary AAT Regulations 2025 The amendments made to the AAT Regulations 2025 do not constitute significant revisions but will aid consistency with the revised Articles of Association, governance changes, and clarity to support existing regulatory requirements and terminology used. Changes include: Removal of the ‘Eligibility for student membership’ section and any relevant references of the term ‘student’ used across these regulations. Reintroduction of work experience back in as an option to the eligibility requirements for Affiliate status (Regulation 7(a)) and Full membership (Regulation 9(b)). Change of section name from ‘Insolvency, Criminal convictions and disciplinary sanctions’ to ‘Disciplinary powers’ and update to the section ‘Annual declaration’ to ‘Annual renewal’ to ensure consistency with terminology used in the Renewal policy and how we communicate with our members. Inclusion of specific clause to set out the importance of updating the Association with material changes to their AML registration application details in addition to membership to ensure both the member, and AAT, as the authority, are meeting legal obligations to hold correct information for all relevant persons within the meaning of The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRO2017). Client Care policy The specific rule requiring licensed members to do a critical evaluation prior to taking on a new client has been removed. Although taking reasonable measures to determine whether there are any reasons why you should not take on a client is still important, we wanted to streamline the rules by removing this duplication because it is already a required part of the client due diligence and risk assessment compliance requirements under Regulations 27 and 28 of the Anti-Money Laundering regulations. We have amended the policy to require that the client be given the name and contact information of the professional indemnity insurer as well as the insurance’s territorial coverage upon request. This guarantees conformity with the current Provision of Services Regulations and is in line with our guidelines and how we handle complaints of this kind. Taking account of governance change in Clients’ Money policy AAT’s Clients’ Money policy sets out AAT’s approach to licensed members holding Clients’ Money which relates to accountancy and/or bookkeeping services the member has been engaged to perform for the client. Clients’ money means money of any currency (whether in the form of cash, cheque, draft or electronic transfer) which a firm holds or receives for or from a client. No material changes have been made to the requirements, but we have tidied up the policy by removing the reference to the ‘Council’, replacing it with the ‘Professional Regulation, Standards and Compliance board’ (PRSC) to ensure consistency with the recent AAT governance changes. Suitable alternate in Continuity of practice policy We have modified the policy criteria to include the fact that if a licensed member is a principal in an accounting firm with several qualified directors or partners who hold active licenses with the AAT or other professional bodies, it is acceptable to designate the other principals to serve as the continuity in the licensed member’s absence. Although these alternate arrangements are already widely accepted, we frequently receive this question via our assurance helplines and practise assurance review activity. Professional Indemnity Insurance (PII) policy We have improved the policy wording for licensed members to reflect our original policy intention that that the licensed member must hold valid professional indemnity insurance that satisfies the requirements of AAT’s PII policy for all the period during which a practising licence is held. There should be no gaps in coverage at any time, which we are identifying frequently during our reviews. While our policy has a general requirement for run-off cover if you are a sole practitioner or the only principal in a firm that has ceased trading, it doesn’t adequately provide any specific requirement in circumstances where a member has retired or resigned as a principal in an entity (potentially becoming an unregulated firm) that will continue to trade. We have included how we expect our members to comply in such circumstances. Useful links Please make use of the following resources to ensure you are up to date with the latest regulatory information.AAT Standards and Requirements Support for licensed members AAT’s AML hub AAT’s ethics hub Don’t miss out on the licensed member support series We’ve tailored a webinar series for practice owners seasoned and new. Get insights and practical guidance from industry experts, covering essential and emerging topics relevant to SMEs. Sign up now
How to price MTD for IT services for your practice Posted 07/07/2025 by Xero & filed under Members. This content is brought to you by Xero. MTD for IT increases the number of submissions clients need to make – replacing one annual assessment with four quarterly updates and a Final Declaration. This could mean existing clients need more support throughout the year, and business owners may seek an accountant or bookkeeper for the first time. Practices and clients also need MTD software. These changes to process, clients numbers, and software all need to be factored into your pricing. In this guide, we show you how to set fair, feel-good prices for MTD services. What to consider before building your pricing model Client size and type: Freelancers and one-person businesses typically have less budget, and simpler requirements. Larger clients may require more help. Client industries: Certain industries may require more work for MTD. For example, retail clients may have high transaction volume, so you should shape your services and pricing around this. Software: Modern accounting software can reduce your compliance workload, making it easier and less costly to deliver services. Choosing the right pricing model Practices commonly use hourly, fixed fee, and value-based pricing for accounting. Hourly pricing requires you to bill based on time, whereas fixed pricing combines the cost of service delivery plus your desired profit margin. But if you work quickly, hourly pricing can mean you earn less. And profit margin can disappear if a task requires extra resourcing. Value-based pricing requires that you set fees based on the value created for clients. This allows you to set fees that reflect the impact of your services (but it can be hard to determine prices). Tiered pricing works for clients and practices. Clients can choose a package that meets their budget and requirements, and you get a guaranteed chunk of income each month. You could start with a basic package that requires the client to take care of their own bookkeeping, and you cover MTD software-set up and all submissions. A standard package might include MTD submissions, plus all bookkeeping and reconciliation. A premium package could include all of the above plus ongoing MTD advice, training, and tax planning. How to address client concerns and communicate value Some clients may show resistance to new MTD pricing. Here are some example scenarios and responses: ‘I don’t want to pay the extra fees’ – Explain that MTD for IT is mandatory, and non-compliance could come at a high cost. Highlight the benefits of MTD services – such as reducing the pressure on clients and giving them more time to focus on their business. ‘I don’t have the budget – what are my options?’ – Suggest that they could take care of their own recordkeeping and opt for a submissions-only service. Point them towards software and apps that make MTD compliance easier – like Xero’s data capture tool, Hubdoc. ‘I don’t want to use MTD software’ – Highlight that MTD software is mandatory, but it can also be beneficial beyond compliance. Point to features that can save them time on financial processes and give them a better view of their cash flow. Finding software to support MTD pricing In our latest UK Accounting and Bookkeeping Industry Report 2025, 87% of practices say the use of cloud accounting software leads to increased client satisfaction, 51% of practices using cloud experience client growth, and 44% report that adopting or switching to cloud-based software has increased practice efficiency. Xero accounting software is MTD-compatible and HMRC recognised. With automatic bank feeds, reconciliation predictions, and data that flows into client returns automatically – preparing submissions is faster and more accurate. Plus, you can show clients insights on cash flow, invoices, and key financial metrics with customisable dashboards. If you’re not yet a Xero partner, visit our Xero Partner Programme where you can find out more about becoming a partner and join over 250,000 accountants and bookkeepers using Xero in their practice. Get the tools and resources you need to succeed. This content is brought to you by Xero.