Beginning your AAT journey? Here are 5 top tips to get you started Posted 04/14/2026 by Harry Rogers & filed under Students, Study tips. From ensuring that you’re getting all the latest student news, to making use of an interactive study planner, these five hints are a great starting point for you to follow on your new path. If you’ve just signed up to start your AAT journey – congratulations on taking the next step towards a flourishing career in accounting! Starting anything new can sometimes feel daunting, but the good thing is that there are a number of ways to get you off on the right foot: 5 top tips for new AAT students 1. Subscribe to AAT Weekly Sign up to receive your dedicated student newsletter, AAT Weekly. Stay ahead with tips, updates, events and learning insights delivered straight to your inbox every Wednesday. Sign up to receive AAT Weekly here >> 2. Explore the Lifelong Learning Portal The Lifelong Learning Portal offers an interactive learning experience, where you can manage key resources, schedule learning to suit your personal study plans, and track and evaluate your learning progress. Go to MyAAT dashboard >> 3. Download your AAT study planner Map out your studying using the full time allocated before your exam or deadline with our handy AAT study planner. Your deadline might feel ages away but staying organised, tracking your progress, and smashing your goals with this interactive planner can really help. Find your interactive study planner >> 4. Get to know how your assessments work Feel confident and prepared by learning every step of the assessment process so you know exactly how everything works. Take away the stress of getting to exam day and feeling unsure of how your work is measured. Learn more about your assessments >> 5. Connect with the AAT Community Collaborate, ask questions, share wins and get support from fellow students and professionals through a range of online resources, from forums to social media groups. Discover your student resources here >> Bonus tip… Join exciting events and webinars. AAT hosts several interactive sessions to help your during your studies. Boost your learning through live and on demand sessions to help you succeed. Further reading AAT’s Lifelong learning portal: the interactive resource to help you get ahead How to feel part of the community when studying remotely What employers really think about AAT students – and how to impress them early
How businesses are addressing the skills gap Posted 04/13/2026 by Caroline Roberts & filed under Members, Skills. With over two-thirds of employers dealing with skills shortages, we spoke to accountants and bookkeepers about their difficulties, and what they’re doing about them. The AAT’s Filling the Gap campaign highlights the growing skills gap in the accountancy and finance sector. Chapter One, published in October last year, found that 78% of employers are facing a skills gap, 84% are experiencing challenges when it comes to upskilling employees, and a third have struggled to recruit during the past year. This creates barriers to business growth, means reduced productivity and puts extra pressure on existing staff. We asked accountancy business owners how the skills shortage is impacting them, how they are addressing the problem, and what support is needed from government. We need people who are prepared to pick up the phone and talk to clients Alex Brearley, Director, Brearley & Co Accountants Interpersonal skills can sometimes be lacking, with a noticeable reluctance among some individuals to engage in direct conversations, instead favouring email communication. Our business is increasingly focused on providing advisory services, where building strong client relationships is essential. A lack of interpersonal skills can make this more challenging as effective communication and trust are key to delivering value in this area.We’ve placed a greater emphasis on recruiting through apprenticeship schemes, which allows us to develop both technical and interpersonal skills from an early stage. The overall cost of employment continues to put pressure on productivity. As a result, there can be a tendency to prioritise fee-earning work that delivers short-term returns, sometimes at the expense of longer-term training and development. Greater recognition of the time and investment required to develop skills would be beneficial, particularly when considering National Minimum Wage policy. It would also be helpful to see broader training incorporated into apprenticeship schemes, beyond purely industry-specific qualifications, to better equip individuals with transferable skills. Business is increasingly focused on advisory services, so the skills to build strong client relationships are essential. There should be more focus on digital skills in training Rachel Harris FMAAT, founder, strivex We are seeing a growing shortfall in digital capability. As accounting workflows become more cloud-based and more influenced by automation and AI, new hires need to be comfortable using software, working with data and adapting quickly to new systems. They don’t necessarily need to have previous knowledge of a wide range of different systems, but the core knowledge should be there so the transition between different software should be an easier jump than we’re seeing. Also, skills in AI, automation, cybersecurity and data analysis are high priority and it would be great to see this incorporated in some way into the curriculum. From a hiring perspective, we maintain a waiting list of potential candidates, which allows us to continuously review individuals over time rather than hiring reactively. This means we can not only assess technical capability and exam progress, but also the behaviours and character traits we value, such as a track record of going above and beyond and a clear commitment to excellence. We would also like stronger support for widening access into the profession. The sector should not be drawing from a narrow pool when there are viable routes through apprenticeships, local colleges, career changers, and young people who are not currently seeing accounting as a realistic or attractive path. Government, employers and professional bodies need to do more together to improve careers advice, promote vocational routes and challenge outdated perceptions of the profession. As accounting workflows become more cloud-based and more influenced by automation and AI, new hires need to be comfortable using software. Training needs to reflect real world scenarios Alex King BFP, ACA, founder, Generation Money The main gaps I see are commercial judgement, communication, and practical technology skills. With increasing use of AI and automations, the focus is less on how to produce work and more on stepping back to explain what the numbers actually mean for a business or client. The real value in the profession is moving towards judgement, interpretation and trusted advice. Technical training still matters, but staff also need more exposure to real commercial situations, client communication and problem-solving. I’m also placing much greater focus on AI skills in a practical way with real world situations. Teams need to understand where AI can genuinely improve efficiency, where the risks are, and why human review still matters. There’s a lack of clarity around AI. Many employers know they need to address it, but they are still working out which tools are appropriate, what good training looks like, and how to balance efficiency with risk, confidentiality and quality control. I would like to see more practical support for digital and AI upskilling, especially for small and medium-sized firms. That could mean targeted funding, tax relief for training, or more accessible programmes focused on real workplace scenarios rather than theory alone. Focus is shifting towards explaining what the numbers actually mean, and being aware of risks around AI, which makes good judgement essential. The government should be investing in apprenticeships Vipul Sheth, MD of Advancetrack Apprenticeships have historically played an important role in helping firms bring new talent into the sector, which is why I believe the changes to Level 7 funding have acted as a secondary barrier for those looking to enter the profession. At a time when the industry is already dealing with a shortage of qualified accountants, restricting access to these routes risks narrowing the pipeline even further. Looking ahead, the profession needs a stronger pipeline of talent if it’s going to meet the needs of businesses across the economy. Continued investment in training and professional development will be essential, but there is also a role for the government in ensuring accountancy remains an accessible career path. Targeted support for apprenticeships in sectors facing clear talent shortages would be a positive step, particularly alongside the introduction of new vocational routes like V-levels. Investing in apprenticeships is key to expanding the talent pipeline.
What private equity buying up accounting firms means for the industry and employees Posted 04/07/2026 by Christian Koch & filed under Members. Increasing numbers of accountancy practices are considering selling to private equity, so we assess the pros and cons for firms. In recent years, UK accountancy firms have been prime targets for private equity (PE) firms. In fact, nearly nine out of 10 UK accountancy firms (86% of respondents) have been approached by PE houses, according to a survey from law firm Kingsley Napley last year. The buying frenzy has driven up valuations across the industry. PE can be an attractive option for smaller firms. AI and Making Tax Digital (MTD) are forcing many to think about upgrading their tech systems, and private equity offers something of a lifeline by providing enough capital to upgrade without the need for bank loans or partner contributions. Perhaps it isn’t surprising nearly half (46%) of accounting firms surveyed by Kingsley Napley said they’re “open to” PE investment. Historically, PE investment was concentrated in industries such as tech or healthcare. By 2022 the trend was taking off in accounting. It’s a global phenomenon too: over 1,000 accounting firms worldwide have been impacted by PE investments according to the International Federation of Accountants. However, not every deal succeeds. In February, the sale of UK accounting firm Xeinadin collapsed after it failed to get bids for its £1bn-plus asking price. “The market has certainly matured since last summer,” says Julie Matheson, a partner in Kingsley Napley’s regulatory team. “Investor appetite remains robust [but] the emphasis seems to be less on indiscriminate buying and pure growth, and more on acquiring quality targets with demonstrable revenue streams.” Which major accounting firms have private equity backing? Azets Since 2016, Azets has grown rapidly, acquiring over 100 smaller firms. The expansion was partly funded by PE firms PAI Partners and Hg, each holding co-controlling stakes. Grant Thornton PE firm Cinven bought a majority 60% stake in the accounting firm in April last year. It was the largest external equity investment in a UK professional services firm, reportedly boosting Grant Thornton’s valuation to the tune of £1.5bn. Cooper Parry Cooper Parry is one of the UK’s fastest-growing accountancy firms – something made possible thanks to investment from Waterland in 2022, then US-based Lee Equity Partners two years later. Their turnover quadrupled to £250m in just a few years. Moore Kingston Smith Waterland was also behind the backing of the top 10 accounting firm in 2023. Dains Accountants The 100-year-old Birmingham-based firm has expanded into London and south-east England thanks to PE investment from IK Partners in 2024. Why are small practices attractive to private equity? Put simply, it’s because they think accounting firms are undervalued-but-profitable ventures. PE usually works by investing in overlooked businesses, injecting them with enough capital to help strengthen their balance sheets, before selling the firm for a profit. Matheson has identified several characteristics which make small practices appealing to PE investors: Strong recurring revenue: investors prefer firms with healthy cashflows. Owner-managed firms: making it easier to implement operational changes. Diverse high-quality clients: investors favour firms with clients in strong, growing sectors. Tech-readiness: firms using cloud software are easier to modernise and integrate with AI tools. Well-run operations: think practices with clear processes and a clean regulatory record. How does private equity benefit accountancy firms? Practices can use the funds to invest in new tech Modernising tech infrastructure is a priority for many accounting firms due to AI and MTD. However, many smaller practices lack the capital to make these upgrades, because many pay out most of their annual profits to partners. Says Matheson, “Capital injection for smaller firms allows them to undertake technology transformation that would otherwise take years to self-fund. Whether this is implementing cloud-based practice management systems, improving cybersecurity infrastructure, or rolling out AI tools, PE-backed firms can afford significant upgrades to their systems that smaller practices simply can’t justify.” Operational know-how “PE firms also bring professional management expertise,” says Matheson. “Acquisition of talent is often easier and can be led by strategy rather than simply organic growth.” They can attract bigger clients (and charge higher fees) High-profile, high-paying organisations have traditionally turned to the big four for their accounts and audits. However, PE investment gives smaller firms the resources to challenge larger players. As a result, this also means they can command higher fees. A nice, comfortable exit strategy Kingsley Napley’s research found that older partnerships were most likely to be swayed by PE investment. Matheson believes this could be down to succession planning. “Senior partners approaching retirement don’t often have the internal successors with enough capital to buy them out,” she says. “However, PE investment offers immediate liquidity. Older partners may therefore prefer guaranteed exit proceeds over uncertain future partnership profits. The administrative burden of managing a practice might also become less appealing near retirement.” What are the risks and challenges of private equity investment? Investors might want quick short-term gains PE firms often seek rapid returns on their investments in a matter of years, or even months. They may also set high-bar performance targets for the practice, such as annual revenue growth and EBITDA margin improvement. This pressure for fast growth can take a toll on staff stress levels. Client relationships might suffer As with any acquisition, partners may leave, taking clients with them. When this has happened in other industries, such as veterinary practices or care homes, reports have suggested PE investment caused a drop customer service. “Investor pressure for returns might influence client management,” says Matheson. “Clients might notice an increased focus on fee recovery, more structured engagement letters, or less tolerance for scope creep. The risk is perhaps greater for the long-standing, lower-margin clients, who might face fee hikes or service reductions in order to improve portfolio profitability for investors.” Matheson also notes “clients could also experience improved and more efficient service through better technology and operating systems.” Governance changes “One of the first things to change [post-acquisition] is governance structure,” says Matheson. “Traditional partnership decision-making by consensus under the limited liability partnership (LLP) model is likely to give way to formal board structures with independent directors and clear reporting lines. While the regulatory regime still requires audit-qualified accountants to retain control, ownership or voting rights of audit firms, there will inevitably be changes to economic rights and the degree of oversight that a PE firm might have over the partnership (if it still exists).” Some partners could even end up with ‘employee’ status or become minority shareholders, says Matheson. “This obviously has implications for the power and control dynamic.” Cultural adjustment “Firms can find cultural adjustment to be a significant challenge,” says Matheson. “Smaller firms – where partners might be more accustomed to autonomy – may especially struggle with new, more formalized corporate governance and accountability structures.” How does private equity investment affect employees and trainees? Fuelled by fresh investment, PE-backed accounting firms have been wooing senior talent with generous packages. As such, executive-level talent is in demand. Last year, Grant Thornton hired more than 100 new partners and directors as part of its plans to expand following its investment from Cinven. Employees at PE-supported businesses can expect increased funding for training, less admin (thanks to new tech investments) and more sophisticated HR, according to Matheson. However, staff may also feel pressure to hit new performance metrics set by PE firms. Redundancies are another risk, especially when roles are duplicated across firms post-acquisition. The route to the top for trainees may look different, too. “Historically there may have been a clear pathway from trainee to partner, whereas this is fundamentally altered in the corporate hierarchy/salaried model that PE firms usually bring in,” says Matheson. Due diligence checklist If your firm is approached a PE firm, Matheson suggests asking the following questions: What is the investor’s track record in professional services? How have their previous accountancy investments performed? What is their typical hold period and exit strategy? How much operational control will they exert? What are the proposed governance structures and decision-making processes? What are their growth expectations, and are they realistic given your market position? Are you ready for the cultural shift that PE management brings?
AAT success stories: using the skills learned at AAT to build a resilient business Posted 04/02/2026 by Jessica Bown & filed under Inspiring stories, Students. Ian Morgan MAAT talks us through his story of emotional strength and hard work to create a successful business. Ian Morgan at a glance… Age: 40Years in accounting: 20 yearsName of business: MBS Accountants Top tip for students: If you don’t try to be everything to everybody, you can end up being really important to somebody. Having endured a series of traumatic business and family experiences in a short space of time, Ian Morgan has needed to adapt over the years to meet the needs of all challenges that life can bring. MBS Accountants has been reinvented several times since 2010 to meet both client requirements and the needs of Morgan and his team. “Both my wife and I trained with AAT,” he says. “When we went into business together, we initially focused on small companies such as sole traders and start-ups. “But that was very hard work, so we changed tack by having fewer clients but taking on more businesses that were three to four times the size of our typical clients.” After growing and flourishing for many years, the practice then became something of a victim of its own success about a year ago. Adapting to your business to be successful “One of the services we provide is to help businesses with the process of selling their companies,” Morgan says. “We help them to turn things around where needed and be ready to sell for a good price. “However, when several of our biggest clients exited at the same time, it was a great result for them but less so for us. “We lost about 20% of our income in one go and had to take a step back and cut costs in the short term, including making some redundancies. “It was tough but we got through it by always being honest with our colleagues and having an open and communicative management style.” This business is now back on track and growing again, this time by acquiring rival firms. Juggling your personal life with running a business In the past year, Morgan has also faced several personal challenges involving family members. His eldest daughter suffered a fractured eye socket after being attacked while on a camping trip to celebrate finishing college. Then his mother-in-law was diagnosed with breast cancer , followed by his younger daughter, who was 16 at the time, being run over by a tractor trailer after falling from it while participating in a carnival parade. “My wife and I really had to concentrate on the needs of our family at that time,” he says. “That period certainly tested the business’s ability to function without us, which is something we have tried to develop. “In the accounting sector, most businesses are built on the back of the founder or founders being good accountants. In the earlier days of our business, for example, we had 600 clients on the books but 99% of them wanted to deal with me. “Now we take a more team-based approach that allows other individuals to shine and takes the focus off me, which proved very useful at that time.” Providing the space to be great Having been based in an office in Gloucester, MBS Accountants is now a fully digital business with team members located around the UK and in the Philippines. “All the members of the team work from home now,” Morgan explains. “Going remote gives us a lot more choice when it comes to taking on quality candidates. “We are careful to seek out people with the right characteristics and skill levels for each role. The aim is to ensure the team has all the required skills as a whole and then let each individual play to his or her own personal strengths.” This way of working is based on his management philosophy, which involves giving people the space to be great. “Workplace relationships often resemble those between a parent and a child in that the boss makes all the decisions and solves any problems that arise,” Morgan says. “But for everyone in the team to reach their full potential, I think workplace relationships should be adult to adult. It’s amazing what people can do when they are given the opportunity. “This approach also allows you to run the business rather than struggling to do everything with lots of assistants.” Due to his ability to keep moving forward when everything seemed a little too much, Ian Morgan was chosen as the recipient of the AAT Triumph Award for his dedication. The accolade, which is part of the AAT Impact Awards, is given to an exceptional individual who has achieved success while overcoming significant challenges during their accountancy journey, demonstrating resilience, perseverance and determination. This article was first published in Feb-March 26 edition of AAT Student magazine here. Further reading AAT success stories: building a seven-figure accounting firm in five years AAT success stories: swapping animal care for a career in finance AAT success stories: a fresh start in a new country
Looking ahead: Making Tax Digital timelines Posted 03/31/2026 by Cat Hall & filed under Making Tax Digital, Members. The deadlines you can’t afford to miss. MTD was first raised all the way back in 2015, and has been the subject of intense discussion and planning ever since. It’s easy to lose track of the details, so here is a timeline of the various important dates you should be aware of. A brief overview of MTD for IT What is Making Tax Digital? Making Tax Digital for Income Tax (MTD for IT) is HMRC’s initiative to modernise the UK tax system. The Revenue wants to improve the accuracy of end-of-year returns through regular digital record-keeping. What will I need to do? To be compliant, taxpayers will need to: keep digital records, use MTD-compatible software and submit quarterly summaries of their income and expenses to HMRC. When is it happening? MTD is being introduced in stages. Only sole traders and landlords with qualifying income will have to comply. The threshold for qualifying income will decrease each year, to slowly absorb people onto the system. Qualifying income is gross income from self-employment and property before any tax allowances or expenses are deducted. From 6 April 2026, sole traders and landlords with qualifying income over £50,000 per year will need to comply. This video provides a brief overview of the deadlines they’ll need to meet. The timeline Here’s our outline of key dates coming up. 2026+ 31 January 2026 Deadline to submit a Self Assessment tax return for the 2024/25 tax year. 6 April 2026 Sole traders and landlords with qualifying income of £50,000 and over must comply. The ‘Soft Landing’ period applies for the first year. That means there will be no penalty points awarded for late quarterly submissions during 2026/27 – but late payments will still be penalised. 7 August 2026 Deadline to submit your first quarterly update. 7 November 2026 Deadline to submit your second quarterly update. 2027+ 31 January 2027 Deadline to submit your Self Assessment tax return for 2025/26. This is to be done in the usual way. 7 February 2027 Deadline to submit your third quarterly update. 6 April 2027 Sole traders and landlords with qualifying income of £30,000 and over must comply. ‘Soft Landing’ period ends and the penalty system applies. 7 May 2027 Deadline to submit your fourth quarterly update. 7 August 2027 Deadline to submit your first quarterly update for 2027/28. 7 November 2027 Deadline to submit your second quarterly update. 2028+ 31 January 2028 Deadline to submit your end-of-year tax return for 2026/27. Those with qualifying income of £50,000 and over will send this straight from their MTD for IT software. Those with qualifying income of between £30,000 and £50,000 will submit it in the usual way. 7 February 2028 Deadline to submit your third quarterly update. 6 April 2028 Sole traders and landlords with qualifying income of £20,000 and over must comply. 7 May 2028 Deadline to submit your fourth quarterly update. 7 August 2028 Deadline to submit your first quarterly update for 2028/29. 7 November 2028 Deadline to submit your second quarterly update. 2029+ 31 January 2029 Deadline to submit your end-of-year tax return for 2027/28. Those with qualifying income of over £30,000 will send this straight from their MTD for IT software. Those with qualifying income of between £20,000 and £30,000 will submit it in the usual way. 7 February 2029 Deadline to submit your third quarterly update. 7 May 2029 Deadline to submit your fourth quarterly update. A simplified timeline for those with qualifying income over £50,000 only is available on the GOV UK campaign page for MTD for IT. A simplified timeline for those with qualifying income between £30,000-£50,000 only is available further down the same page, under the heading ‘You’ve probably got some questions’. Helpful links AAT has been responding to MTD plans since they were first announced in 2015. You can read through our archive on AAT Comment. Here are some highlights: Action Plan: Preparing for MTD for IT In brief: A summary of updated MTD for IT guidance on GOV.UK Interim topical guidance covering the application of professional standards to the provision of MTD for income tax services MTD for IT schedule for licensed members
Late payment reform package with “real teeth” finally in sight Posted 03/30/2026 by AAT Comment & filed under Members, Prompt payment. Late payments have held small firms back for years. With major reforms now confirmed, we look at the new protections for businesses. Late payments have been a stubborn problem in the UK for years, draining time, energy and confidence from the small firms that keep the economy moving. So when the government published its package of late payment reforms on 24 March, it felt like a genuine step forward. We’re proud to have closely engaged the government during the consultation process, and you can view our published response from last year here. Late payments cost the UK around £11 billion every year and contribute to the closure of 38 businesses every single day. Those numbers are stark, but anyone who works with SMEs knows the real‑world impact. Delayed invoices that disrupt payroll, projects that stall because cash is tied up elsewhere, and owners spending evenings chasing money instead of running their business. The benefits for suppliers The government’s proposals amount to the most significant reforms in more than a quarter of a century. When the legislation is in place, the UK will have the toughest late payment laws in the G7. While we’re still waiting for firm timelines, the overall direction is clearer and far more decisive than many expected. At the centre of the package are new powers for the Small Business Commissioner (SBC). These include the ability to investigate businesses suspected of poor payment practice, settle disputes without the courts, and issue fines to large companies that repeatedly pay late. Crucially, the Commissioner will also receive the resources needed to use these powers properly. That’s something we’ve been consistently calling for because enforcement only works when the body responsible has the capacity to act. Several other measures directly strengthen protections for suppliers. Payment terms will be capped at 60 days, with only limited exceptions. There will be a statutory deadline for raising disputes, reducing the scope for drawn‑out arguments. And mandatory statutory interest will now form part of every commercial contract, ensuring late payers feel the cost of holding up someone else’s cash flow. Transparency also gets a boost. Large companies with poor payment performance will have to articulate openly, at board level, why their record is weak and what changes they’re making. It’s a practical way of putting accountability where it belongs. One proposal dropped The government has chosen not to reduce Payment Practices Reporting from twice-yearly to annual. That’s a sensible decision. Visibility is one of the simplest safeguards against poor behaviour, and reducing reporting would have risked losing it. Our view Rebecca Roberts-Hughes, Executive Director of Strategy and Compliance at AAT, said: “AAT welcomes the government’s announcement of legislation to tackle late payments and strongly supports its commitment to introducing these vital reforms. The confirmed steps – capping payment terms, applying financial penalties to repeat offenders, and giving the Small Business Commissioner much needed powers – match exactly what AAT has long called for. These measures finally put real teeth into enforcement and hold large companies properly accountable for poor payment behaviour that has hurt small businesses for far too long. This is a game-changing opportunity to shift UK payment culture for good, shield thousands of small firms from cash flow damage, and boost economic growth. We look forward to working with government and industry to ensure these proposals deliver meaningful improvements for SMEs.” Looking ahead This isn’t the end of the conversation. We’ll continue working with government and the SBC throughout the legislative process, and we’ll support our members as and when necessary, with practical guidance as the new rules take shape. The reforms may be ambitious, but with the right follow‑through, they can move the UK towards a culture where paying on time isn’t the exception but the norm. For now, the direction of travel is encouraging. And for many small businesses, the shift can’t come soon enough.
What AML/CTF supervision reform will mean for AAT members Posted 03/27/2026 by AAT Comment & filed under Anti-money laundering, Anti-money laundering, Members. Supervision is moving from membership bodies, like AAT, to the FCA. What impact will this have? The sector is facing its biggest regulatory shift in years. In 2025, the government decided to move anti-money laundering (AML)/counter terrorism financing (CTF) supervision for accountancy and legal services to the Financial Conduct Authority (FCA). Right now, many practical details are still being developed, for example, what the FCA fees might look like. With a transition team now in place, the FCA has begun intensive engagement with the Professional Body Supervisors at various levels, and AAT is actively involved in this process. AML supervision is one aspect of the service AAT provides to members. Not all members are licensed for these purposes by us, and we do plenty of other work for you too. That includes influencing policymakers and advocating for your needs, keeping you up-to-date on legislative changes, and so much more. We’ll continue to support the profession through this period of change, and to make sure your voice is represented as the new system takes shape. We’re in the process of regularly meeting officials on the planned implementation programme, and ways of collaborating. What does this mean for AAT AML supervised members? In the meantime, the message to members we supervise for the purpose of the AML compliance is continue as normal. Your AML obligations remain exactly the same today as they were last year, and all current supervisory arrangements remain in place for now. For example, you must ensure you continue to comply with the Money Laundering Regulations; you must complete the annual AML firm return and submit to a Practice Assurance Review. This is still only the early days of a multi-year journey towards a new AML regime. Further guidance and support on risk management and other components of Money Laundering Regulations compliance is available on our AML webpage. You can also contact us on +44 (0)20 7367 1347 or via email at [email protected]. What about other members? AML/CTF supervisory regime reform won’t result in any regulatory changes for you. Being a voice for members AAT has been an AML supervisor for many years, and that experience puts us in a strong position to influence the new regime. Even when our formal supervisory role eventually comes to an end, our commitment to supporting all our members absolutely won’t. In fact, this shift opens the door for us to rethink how we help firms stay compliant, confident, and well prepared. We’re already looking at how our guidance, resources, and policy work can evolve to reflect this. Our aim is to make this change as smooth as possible. With the direction now set, we’re focused on delivering a robust supervisory system that upholds the highest standards for our profession. What’s happened so far HM Treasury focused its 2025 consultation response on the key duties, powers, and accountability mechanisms that the FCA will need to be an effective supervisor. You can find our published response here. We’re currently awaiting a response. HM Treasury also ran a series of workshops, which we used to highlight the need for a clear transition plan that is proportionate and transparent, considering the diverse set of businesses reform will impact. Our message to the FCA We support the government’s objective for stronger, more consistent oversight. However, the move to the FCA needs to be carefully managed to avoid disruption. We’ve stressed that any transition should prevent duplication, gaps in oversight, and unnecessary demands for information. Good planning, clear communication and proper resourcing are essential. AAT represents a diverse range of financial professionals, from experts in small practices to those working in large accountancy firms, industry and beyond. We believe key proposals such as public register, fit-and-proper tests, better information-sharing, and stronger enforcement are all required. However, supervision must be balanced. Firms across the profession operate very differently, and they face different levels of risk. We have been clear about the need for a proportionate, risk-based approach which reflects the realities of smaller practices as well as larger firms. A single, uniform model simply won’t work. Stronger enforcement has a role to play, but it must be fair and proportionate. We’ve recommended an approach that supports firms to remedy issues first, escalating only where there is serious or repeated noncompliance. Education and guidance should always come before punishment. Many small practices are already facing rising costs. If regulation becomes too costly or complex, some may leave the market, and that could reduce access to essential services for hundreds of thousands of small businesses. In other words, the cost of regulation must be affordable.
Addressing the final sticking points in MTD Posted 03/26/2026 by Caroline Roberts & filed under Making Tax Digital, Members. With Making Tax Digital just days away, accountants discuss the final issues they’re overcoming. Making Tax Digital for Income Tax (MTD for IT) launches on 6 April 2026 for sole traders and landlords with qualifying income of £50,000 and over. Qualifying income is gross income from self-employment and property before any tax allowances or expenses are deducted. They will need to: keep digital records, use MTD-compatible software and submit quarterly summaries of their income and expenses to HMRC. As we enter the final stretch in the run-up to MTD, we asked accountants about last-minute sticking points, areas of uncertainty, and their reflections on the journey to this point. What Companies House reforms mean for you in practice Attend our webinar to understand your responsibilities as an Authorised Corporate Service Provider (ACSP). Find out more There are still some technical hitches with my online accounts Karen Chugg FMAAT AATQB, owner, Phoenix Bookkeeping I’ve had trouble accessing clients on HMRC, although it says that my Agent Services Account is connected to my Online Services Account, no clients are showing, so I am going to have to contact HMRC to sort it out. Hopefully, I won’t spend hours on the phone trying to get through. The worst thing is that there is no list of clients, and you have to enter the UTR number to find a client. This is very time consuming and is also making me wonder if letters will start to come through with no client name on, like they do with MTD VAT, so you have to look the number up. Accountants would love HMRC to put all clients in a list in the ASA. The biggest problem with clients will be getting them to authorise me as a lot of them don’t have the Government Gateway or don’t know their log in. I remind them that they managed to find it and use it to make SEISS claims during Covid. I think overall it will be fine once we’ve got the first batch filed, but it’s getting to that point. For the next tranche of £30K qualifying income, we anticipate signing them up a lot earlier so that we are ready for April 2027. I was at an AAT branch meeting recently and somebody pointed out how great MTD will be for us, as we will have all the info we need by the fifth filing and HMRC will populate a lot of the other items required. So, by the time all clients are on it, the January madness should go away. Once clients are fully set up on the system and we’re into the fifth filing, everything should be easier – including January madness. We need clarity on mixed income sources Bev Flanagan MAAT, Owner, Bev Flanagan Financial Ltd Overall, the run-up to MTD has been reasonably well managed, although there are still questions and uncertainties among both practitioners and clients. It’s confirmed that there won’t be any late filing penalties during the first year, but HMRC haven’t laid out exactly how long the grace period is or what the reminder process will be. So, there’s still some uncertainty about how late you can be before action is taken. Most of us are just waiting to see how it plays out in practice. There’s also the question of whether income such as dividends, interest, and foreign income needs to be reported through the same process or separately. HMRC’s guidance hasn’t been 100% clear, so some practitioners are still trying to work out the best approach for those with mixed income sources. Unsurprisingly, there has been some resistance from clients when it comes to increased fees. MTD means more frequent submissions, more bookkeeping and, in many cases, the introduction of new software. However, when the changes are communicated clearly and clients understand that the service being provided is fundamentally different from a once-a-year tax return, most recognise the value of the additional support. MTD is encouraging accountants to move away from the traditional once a year approach to tax reporting and towards a more regular, collaborative relationship with clients. While this requires adjustments to internal workflows and processes, it also creates opportunities for more proactive conversations and advisory support. MTD isn’t just a compliance change, it’s a mindset shift too. The firms that embrace it will build better systems, stronger client relationships and far more valuable practices in the long run. MTD will create a more regular and collaborative relationship with clients that will result in better systems. The main issue now is how to price services Craig Dyer MAAT AATQB, Owner, C A Dyer Accounts & Bookkeeping At our practice, only a very small number of self-employed individuals or landlords will be affected by the first wave of MTD. They are informed and ready to go, with plans in place to hit the ground running. However, I’ve spoken to others who are not as informed as they should be, especially those who’ve not had an accountant or bookkeeper to support them in the past. They rely far more on information directly from HMRC. The level of support has been good. HMRC has run a number of webinars, training opportunities, and pilots. When you combine this with direct support from software providers and information and training sessions from professional bodies like AAT, members have access to a lot of support to help them through this transition period, and guide their clients. The main concern I hear from AAT members is how to price the change in provision and extra work, especially with price-sensitive clients. To practitioners not facing the change until next year, I’d say go out there and read as much as you can, listen to podcasts and attend webinars. Also, the AAT community really comes together at times like this and many of the awesome members help and support each other with signposting to great resources or a bit of advice. I’m generally happy with the level of support, especially from AAT and its member community. Not everyone’s sure of how detailed quarterly submissions must be Nick Robinson, Managing Director, Yorkshire Accountancy Ltd The support and communication around MTD has improved compared with earlier stages of the rollout. However, there is still some uncertainty among small business owners about what will be required in practice, particularly around quarterly updates and how detailed those submissions need to be. One implication for accountants is that the workflow becomes more consistent throughout the year rather than heavily focused around the January deadline. In the long run that should benefit both accountants and clients, as it encourages more regular financial visibility rather than retrospective reporting. My main advice to other accountants yet to be affected by MTD would be to start conversations with clients early and keep the message simple. Focus less on the legislation and more on the practical benefits such as better visibility of tax liabilities and more organised records. Contact clients about MTD early, and keep messaging simple. What Companies House reforms mean for you in practice Attend our webinar to understand your responsibilities as an Authorised Corporate Service Provider (ACSP). Find out more
Strengthening funding support for SMEs with Swoop Posted 03/26/2026 by AAT Comment & filed under AAT news, Members. AAT is partnering with business funding platform Swoop to give accountants and bookkeepers powerful new tools to help their SME clients make smarter funding and cash flow decisions. Swoop’s latest data shows that businesses supported by an advisor are 2.6x more likely to secure funding than those applying alone, highlighting just how critical accountants and bookkeepers are when it comes to early intervention and better outcomes. What Swoop does Swoop provides a clear and simple comparison of the financial products and services available to you, enabling you to make the most appropriate choice for your business and clients. That includes loans, grants, equity and asset finance. Swoop works with institutional and fintech lenders, so it can identify the best financial options for you, whether you: need to stock up ahead of a busy season, want a VAT loan to help manage cash flow, are looking to purchase new equipment, or are considering expanding your business. You’ll not only find lenders who specialise in your industry, but the ones who are most likely to give you an offer, and in the quickest amount of time. AAT member benefits Through the partnership, AAT’s licensed members will gain access to Swoop’s funding platform, specialist support and data driven insights, making it easier to identify funding needs and introduce clients to the right solutions, without adding complexity to existing workflows. Members will also benefit from an exclusive 20% discount on Swoop’s accountant and bookkeeper offering. Plus, the partnership will be supported by CPD-accredited webinars, insight reports and practical resources designed to help members strengthen their advisory role and deliver even greater value to clients. Book a meeting with Swoop to see what they can do for you.
4 top tips for bouncing back when passing your exam feels impossible Posted 03/26/2026 by Jessica Bown & filed under Students, Study tips. Whether it is failing an exam or making a mistake during your studies, such moments can feel overwhelming. But it’s not the setback that matters as much as the way you respond to it. When something goes wrong, your first instinct might be to panic or assume you are not cut out for the profession. But setbacks are not personal failures, they’re valuable experiences and lessons to take forward. The skill is to reframe what has happened, so instead of asking “Why did this happen to me?”, try “What is this telling me?” This shift moves you from feeling like a victim to feeling empowered. Tip 1: resilience through reflection Having resilience means having a process to work through setbacks and the best way to start is with honest reflection. Give yourself 24 hours to feel disappointed (treat yourself kindly and have some rest), then ask yourself three questions: What actually happened? Write down the facts without writing down any judgment or how you felt about it: “I didn’t pass my exam” rather than “I’m terrible at exams.” Writing this down instead of just thinking it through will help you process better. What factors contributed to this? Consider everything. For example, your preparation time, study methods, external circumstances and areas where your knowledge was weak. What can I control going forward? This part is really important because you can only make changes to the things you can control. You can’t change exam questions, but you can change how you prepare. You can’t control redundancy decisions, but you can control how you present yourself in future interviews. Tip 2: develop problem-solving skills Another way that you can reframe a setback is as a problem waiting to be solved. You can choose whether you’ll solve it reactively or strategically. Try following these steps: Break the problem down into manageable parts. If you’ve made an error, fix the immediate mistake but also analyse why it happened. Was it time pressure? Unclear instructions? A gap in your technical knowledge? The cause will determine the type of solution you’ll need to prevent it from happening again. Gain some perspective. Talk to your tutor or peers about what went wrong. People who’ve experienced similar setbacks can often offer answers you might not have considered. Create an action plan. Make sure it has specific steps that feel manageable. Vague intentions such as “I’ll work harder” rarely make a difference, but concrete tasks such as “I’ll complete three practice papers each week and review any incorrect answers with my tutor” give you something solid to work with. Tip 3: celebrate what went right Even when something goes wrong, rarely does everything go wrong. Perhaps you didn’t pass your exam but you improved your score from last time. Being able to find some positives (however small) among what feels like a setback stops you from catastrophising. These small wins provide evidence that you’re making progress, even when the overall outcome has caused initial disappointment. Tip 4: move forward with confidence Once you’ve rested, recovered, reflected, problem-solved and created an action plan, the final skill is to move forward without carrying the setback around with you like baggage. Set a small, achievable goal to rebuild your momentum, such as mastering one topic for an exam completely before tackling the next. You can acknowledge your progress by keeping a record of what you’re doing differently and your small wins along the way. Use this as evidence to yourself when doubt creeps back in. Hold your head high and remember that the people who achieve the most have all faced setbacks. It means that you are challenging yourself and that can only be a good thing. Sometimes, even better opportunities can come from things that seem to have gone wrong. This article was first published in Feb-March 26 edition of AAT Student magazine here. Further reading What to do when you feel like giving up – AAT students share their turning points How to overcome setbacks and ace your qualification How to build your personal brand while studying AAT