The payroll software features your practice should prioritise in 2025 Posted 05/29/2025 by Xero & filed under Members, Pensions and payroll. This content is brought to you by Xero. Whether it’s flexible working patterns or new tax rates coming into place, payroll changes more than you might think. That’s why practices need a payroll system in place that can handle the changing work and tax landscape – for friction-free pay runs every month. Here’s what you should look for in payroll software for 2025 and beyond. 1. Cloud-based payroll software Desktop software restricts you to a single device or license. But cloud-based software offers an alternative that lets users complete payroll tasks from anywhere, on any device. Cloud-based software typically comes with automated updates that align the system with new regulations, making it easier to comply with payroll rules. There are no costly user licenses with cloud-based software, either. With Xero payroll software you get unlimited users, so you can delegate tasks across your team and clients. 2. AI and automated payroll Modern payroll systems provide features like automated calculations for pay and deductions, fraud detection, and accounting software integration. Integrated accounting and payroll software saves you time with automated journal entries for every pay run. Xero payroll software gives you automatic calculations for pay and deductions, updates in line with regulations, and journal postings. Plus, Real Time Information (RTI) submissions are sent to HMRC after every pay run, automatically. 3. Real-time payroll and digital payments With real-time payroll processing, data is pulled into the software throughout the month, with pay and deduction calculations constantly updated. This means you can see the latest payroll information at any time. Combine this with digital payments, and processing payroll is even simpler. Modern software lets you clients connect bank accounts and pay their employees in a few clicks. With Xero, payroll data is pulled through in real time. Clients can also pay their team with BACS or a faster payments file for speedy pay runs. 4. Payroll software security and compliance Today, payroll software has multiple layers of security to keep information safe – things like encryption, two-factor authentication, and customisable permissions. Practices also need to adjust to changing payroll legislation, updates to pay and tax rates, plus broader reporting requirements changes. This is easier when payroll software automatically updates for you. Xero payroll software makes automatic changes where required – increasing tax codes and carrying authorised ones over. 5. Payroll apps and self-serve features The growing number of payroll apps means staff can self-serve – submitting timesheets, making leave requests, and managing their payslips on their smartphone. You and your clients no longer need to hand out payslips or coordinate annual leave, and teams get transparency over their working schedules. Xero payroll software comes with Xero Me, an app that lets staff manage timesheets, payslips, annual leave, and expenses. Why Xero payroll software is the right choice in 2025 Make every pay run go smoothly with: Automatic updates, RTI submissions, tax code updates, and centralised data storage. Multiple layers of protection including encryption, two-factor authentication, and customisable permissions. Xero Me, our self-serve app for staff to track their leave, submit requests and timesheets, manage their payslips, and submit receipts for reimbursement. Xero payroll software gives you the tools to support every type of client and their workforce. This content is brought to you by Xero.
What do accountants and their clients think about the UK economy? Posted 05/29/2025 by Annie Makoff & filed under Members. Checking in with accountants and bookkeepers about the clients’ business confidence. Business confidence in the UK economy has fallen considerably this year according to several sources, reflecting continued anxiety and uncertainty over government policies and global volatility. Earlier in April, ICAEW’s national Business Confidence Monitor (BCM) for Q1 2025 revealed a -3.0 fall in business optimism for the first time since Q4 2022. This is due in part to higher business taxes, weak UK economic growth and concern over US trade tariffs. Gain freedom and flexibility from day one The accountant start up programme breaks down the essentials into simple, practical manageable steps so you can focus on what really matters – building a business that works for you. Start building your business And confidence among UK small firms dropped to its lowest level (29%) in four years, according to Novuna Business Finance. However, the IMF this month raised the UK growth forecast to 1.2% and a predicted 1.4% in 2026, boosted by the latest UK trade deals with the EU, the US and India. But businesses on the whole remain cautious. High business costs and taxation as well as ongoing issues around skills shortages, recruitment challenges and staff retention are creating a difficult environment for many. So what do accountants think? Are their clients concerned about the UK economy? And do they agree with projected growth forecasts? There are signs of resilience but the road ahead demands caution Batool Haider MAAT, Founder and Director, Account Inc Ltd As someone running a boutique outsourcing firm serving UK accounting practices, I’m cautiously optimistic about the UK’s growth outlook.The UK-EU deal provides a degree of political and trade stability that could encourage business investment. However, persistent inflation, now expected to remain elevated until at least September, continues to squeeze household budgets.This, combined with the threat of US tariffs and rising tax burdens, may dampen consumer demand and business confidence, particularly among the small businesses our clients support. So while there are signs of resilience, the road ahead still demands caution.UK businesses might hesitate to invest or expand, preferring to maintain liquidity and manage risk carefully.For accountants, this economic climate means clients may delay hiring, limit outsourcing, or scrutinize costs more closely.In uncertain times, business owners don’t need fewer accountants, they need better ones. With rising costs and shifting markets, they’re looking for advisors who can help them stay lean, manage risk, and make informed decisions. The demand is still there, but the focus is now on flexibility, clarity, and real financial insight. Verdict: There are signs of resilience but road ahead demands caution. Good accounting can help business owners survive. Convincing directors and shareholders that the UK is back in business will be a struggle Ellis Harris-Boulter MAAT, Founder and Director, FieCo Accountancy From a distance, the UK finally seems to be gaining some momentum: securing trade deals (India, the EU, the US) and stepping towards U-turns for some of Labour’s more unpopular decisions. The UK seems to be in quite a favourable position sandwiched between the US and EU; it seems we might avoid the worst effects of the tariffs. These are some of the most major deals we’ve seen since Brexit, and they’re all within the past year – quite an achievement. This is not to mention various recent improvements in economic forecasts and better than expected growth. However, being first to a deal with the US isn’t necessarily a good thing, as future deal-makers from other countries will look to build on the foundation of our deal. It also feels like we’re giving significant concessions for headline-grabbing but largely inconsequential gains (e.g e-gates at the airport). It raises questions about the broader economic impact of these agreements. On the ground, the picture couldn’t be more different. Business confidence is low; employment tax hikes in April were no way to stimulate growth and most decision makers I talk to are making cost-savings instead of investing. There’s now warning signs ahead – inflation rising (especially food, which will hit consumers), and round two of Trump’s tariff policies when the various 90 day pauses come to an end. There’s no doubt things to celebrate here, but the Government faces an uphill battle to convince directors and shareholders that the UK is back in business. Verdict: The government faces uphill battle to convince directors that the UK is back in business. It’s a gloomy outlook overall but resilience shines through Vipul Sheth, Chartered Accountant and MD, Advancetrack It’s a gloomy outlook for the UK economy. Everyone is being taxed more than ever – including businesses, which are essential to driving growth. From an accountancy perspective, nothing much has changed. On paper there are a few welcome additions, particularly the reduction of red tape for food and drink exporters, but generally we’ve seen a lot of well-meaning deals that don’t deliver in practice. US tariffs will have an indirect impact on the UK. Extra costs imposed by the US government will eventually affect UK businesses, potentially leading businesses to cut back on services or delay investments. In the long term, I’m unsure how likely US tariffs are, as they could damage the US economy itself. But this unpredictability means short-term market volatility is a real risk. I’m concerned that the current Government is imposing extra costs on businesses at a time when it should be doing the exact opposite. Employers are already having to fight to pay more in National Insurance Contributions and wages, and I fear the Government is already laying the ground for tax rises for businesses in autumn. However, the resilience of the UK’s small businesses continues to be a bright spot, even in the face of tough conditions. Many are investing in technology, exploring outsourcing and finding new ways to stay competitive despite rising costs and years of economic volatility. Verdict: It’s a gloomy outlook overall but resilience of small UK businesses continues to shine through. Gain freedom and flexibility from day one The accountant start up programme breaks down the essentials into simple, practical manageable steps so you can focus on what really matters – building a business that works for you. Start building your business
Key themes in ESG implementation for mid-market accountancy firms Posted 05/27/2025 by Christian Doherty & filed under Ethics, Members, Sustainable Business. Accounting leaders at innovative UK firms discuss how they’re developing Environment, Social and Governance (ESG) strategies for their clients, and their own firms. Developing, measuring and delivering ESG policy is now a central part of operations for accounting firms. Happily, a growing number of accounting leaders at some of the UK’s most innovative firms are taking a proactive role in developing ESG strategies both for clients and the firms themselves. They talked to us about the challenges facing the sector as compliance, engagement and leadership morphs from a ‘nice to have’ to business as usual. In this piece, they focus on the importance of engagement, authenticity and measurement. Tax masterclass series with Tim Palmer Masterclasses throughout 2025 and 2026 covering topics such as the Construction Industry Scheme, tax strategies for family-run businesses, and more. Find out more ‘There’s no substitute for authenticity’ Mhairi Poole, Head of Sustainability, Forvis Mazars There are three parts to an effective ESG strategy that people can believe and buy into. First of all, you can’t talk the talk if you don’t walk the walk. So that means our strategy as a firm has to be aligned to the advice that we are giving to clients in this space. Second, we’ve got growing client expectations and requirements, which means we have to demonstrate our commitment in this space as part of tenders, throughout engagements and as part of ESG ratings. And then finally people’s expectations. It’s a really important factor when it comes to recruitment and retention. People want to work at firms that live up to their own values – we see that all the time. Ultimately, it’s about being authentic. People, whether that’s clients, potential recruits or wider stakeholders, notice if you’re saying one thing, but then actually doing something quite different. ‘The risks from ignoring this are real’ Mark Lumsdon-Taylor, Partner, MHA Baker Tilly If we didn’t look at ESG internally, from a purely financial perspective, I think it would have damaged our ability to offer services. Because, as our Chairman says, how can we expect you to do something if we don’t do it ourselves? So the first thing is, it’s important to demonstrate genuine commitment to ESG. So part of our strategy within the firm is quarterly reporting of our four pillars (innovation, trust, talent & climate) to the main board. The board can see performance against each of them, and there are KPIs against all of those. If we’re not doing that as a firm, how can we talk to a FTSE 100 business about what we think they need to do? Second thing is, as an ethical and credible business, how do we support our recruitment of the next generation of accountants who look at sustainability and the way in which we look after the planet. Taking this seriously affects our DNA as a company. Thirdly, it would completely undermine our ability to go out there and win and retain work. When we get tenders, they will be rigorous, particularly in the public sector, and they want more than simply boxes being ticked. It’s changed. They want to know, What are your policies? What are your procedures? What are your kite marks? What is your transition planning? Do you publicly state? Accounting skills will change Yi Zheng, Senior Manager ‑ Sustainability & ESG, Saffery I think right now practitioners are trying to upskill themselves through continuous professional development courses. I also believe accounting bodies are incorporating sustainability as part of the qualification, with the modules now having designed sustainability as part of the work or study content for newer accountants to come into the profession. But right now in the workplace, I think that the situation is still quite mixed, with less confidence among the general accountant population, just because the expertise in sustainability still lies with people who have years of experience. If accountants are buried in day-to-day account preparation, audit and tax work, then I would say the breadth of information they can absorb could be diluted. And then it’s about keeping up with the regulatory requirement, new expectations, new science, everything around that. And they may need external support to keep themselves up to date. However, in the newer generation, such knowledge will be more expected – especially when it comes to data quantification of ESG. ‘DEI requires rigor – and a focus on real outcomes’ Alex Hindson, Partner, Head of Sustainability, Crowe Environmental targets are more numerical, so with Net Zero we signed up to the Science Based Target Initiative (SBTI) and they’ve validated our numbers. Then it’s a case of delivering the projects; ultimately there are clear rules of the game. However, there is more to ESG than that. Diversity, Equity and Inclusion (DEI) is less tangible in some ways, and has gone through a few iterations. We’ve come to the point where we’ve got these groups you expect to have: gender, ethnicity, neurodiversity etc. And what we’re trying to do is link that to our people and talent strategy. At a base level of communication and awareness, celebrating lots of things is great. But now we’re asking, ‘Okay, with our Southeast Asian employees, how’s their life different as a result? Why is what we’re doing going to make them want to come here and stay, and thrive, and contribute?’ I think we’re actually doing quite well in hiring a diverse group of people and promoting them. But at the end of the day, why are you doing it? I don’t think diversity is an end, it’s a means. Tax masterclass series with Tim Palmer Masterclasses throughout 2025 and 2026 covering topics such as the Construction Industry Scheme, tax strategies for family-run businesses, and more. Find out more
How The Big Four are embedding their ESG practices Posted 05/21/2025 by Christian Doherty & filed under Ethics, Members, Sustainable Business. Environmental, Social and Governance encompasses a huge range of considerations that change with the times. Here, two UK leaders explain some of the thinking that’s driving their agenda. The Big 4 are grappling with seismic changes to economic norms, social change, working patterns and sustainability regulations. We spoke to two leaders in the space about the priorities and challenges the world’s biggest accounting firms face in the Environmental, Social and Governance (ESG) space. The conversation largely focused on the E and S in ESG. Tax masterclass series with Tim Palmer Masterclasses throughout 2025 and 2026 covering topics such as the Construction Industry Scheme, tax strategies for family-run businesses, and more. Find out more Gavin Harrison, Director/Head of Sustainability at Deloitte UK, and North & South Europe Short-term, easy wins In this near-term phase, up to the next five years, I think everyone has similar issues: it’s about operational efficiency to reduce your emissions and improve your energy efficiency. It’s bread and butter stuff, and you don’t need crazy innovation or huge behavioural change to achieve it. You can just make the right decisions. And we’ve been doing that since about 2010 when we launched Green Journey. And we’ve reduced our emissions by 76% operationally over the last five years. Long-term, broad approach But then pretty soon, you run out of efficiencies to be gained, and you have to quickly work on systems change and how you support that to get to that next level. Take business travel: it has long been at the heart of professional services, we travel a lot to meet our clients because face-to-face time is super important as you can get the best out of people if you’re collaborating live. We’ve reduced emissions 55% per head since 2019, it’s come down a lot, and we’ve got plans to reduce them further, but we don’t want to stop travel, and we still want face time. And so if I’m ever going to get to net zero in Deloitte, we need the aviation sector to transform at the same rate that we are transforming. And we use our skills and our network and how we can support that conversation and support their innovation to help them get to that level. And that’s really quite a big step change in how we treat sustainability. Collaboration is key When it comes to a direct conversation with a client, one of the big things we’re currently pushing is the concept of ‘sustainable delivery’. We tend to have quite a FaceTime culture with how we deliver services, which is wonderful. And so we say, “Right, if you want to move to a future operating model where we use much more digital delivery, which we have in the last five years, but we’ll continue that”. Then it’s about talking to that client, and saying, “You’ve got a net zero agenda, we’ve got a net zero agenda, how can we work together to help drive this forward?” One way we can do that is to think about the emissions associated with our delivery of this contract. It’s good for you because it reduces your supply chain emissions, it’s good for us because it’s reduced our business travel emissions. How can we collaborate on this, learn from what we’re both doing, and also, how we can still effectively deliver high standards of quality without extending those emissions; and then how can we share that good practice across your teams, across our teams, so we can both then learn and continue to develop. Emma O’Malley, Head of ESG Corporate Reporting at KPMG UK Focus on your USP There are two camps of what we do on ESG: there’s the regulated part, and that is the bare minimum. That’s what we are required to do and it forms part of our license to operate. Then there are the extra bits that go beyond regulation. So, if you look at our community strategy, it’s around where we think and where we feel we have got the skills as a business to make the most difference. We don’t take a scattergun approach, and we don’t support every good cause that’s out there. We try to be strategic about what skills we have as a business, and then look at what we can bring to the table that perhaps other businesses can’t, and use that as the basis of the direction that we push our strategy in. The campaign we founded with the charity National Numeracy to create the only day in the UK that focuses on improving people’s competence and confidence with numbers is an example. That cause was very, very core to us; it’s about strong numeracy skills, it’s about confidence with numeracy. And we could see that we had a role to play in improving that in the UK. Prove it We’ve got strong governance around Environment in ESG, so the challenge comes with making sure that everybody in the organisation is happy that it’s the right thing to do. One thing we’re very conscious of not doing is greenwashing; that, and avoiding setting strategies and commitments without a strong sense of how we’re going to achieve them. We’ve got strong rationale behind why we’re proposing things, and that is data-backed. We know that we’re not putting something out there and hoping that we’ll figure out how to achieve it in the future. We’ve got people here who are very data-driven, who’ve got insurance backgrounds for instance, so that need for rigour comes with the nature of the sector that we work in. Tax masterclass series with Tim Palmer Masterclasses throughout 2025 and 2026 covering topics such as the Construction Industry Scheme, tax strategies for family-run businesses, and more. Find out more
How to feel part of the community when studying remotely Posted 05/20/2025 by Sophie Cross & filed under Students. There are plenty of ways to create a sense of community and stay connected, even when you’re studying from your kitchen table. More and more AAT students are choosing to study remotely, away from the traditional classroom setting. While this option offers fantastic flexibility, it can sometimes leave you feeling a bit disconnected from your peers… but there are number of ways to change this. Finding your remote study community One of the myths about remote learning is that you’re on your own. However, there is a vast community of fellow students out there, where you can access forums and social media groups at any time. Student Paula Rutter said: “Always ask for help and don’t be afraid to reach out to a group or a tutor. No question is ever silly. Everyone ahead of you was at the place you are at one point, and nobody will judge you. Remember, it’s not a race; we all learn at different speeds.” There are several options to help find that community spirit while studying remotely: How to link up with peers online AAT offers several ways to connect with other students: The Online forum – Ask questions, share tips and connect with students at the same stage as you. The Learning Portal – Access study materials and connect with fellow learners. The Wellbeing Hub – Find resources to support your mental health during your studies. If you are stuck on a tricky concept, posting on the AAT Forum means you will get different explanations from people who have recently learned it themselves, which can be easier to understand than the textbook. Social media groups Social media can be a brilliant way to connect with other AAT students. These groups can be fantastic for moral support, study tips, and sometimes even job opportunities. AAT Distance Learning Group – Connect with other remote learners. Accounting Student Network – Share resources and ask questions. AAT student Tammy said: “I think the best way to feel part of the community whilst studying remotely is to join the Facebook groups for AAT bookkeeping and accounting. Also, become a member of the WhatsApp groups for the different units of AAT. All are very helpful outside of attending a classroom or speaking to a tutor.” Make the most of your training provider Don’t forget that your training provider is there to support you: Join any online seminars or tutorials they offer. Make use of tutor support hours. Ask if they can connect you with other remote students. Check if they have their own online communities. Creating your own study circle You can set up your own remote study group or Facebook group. Here’s how: Start by reaching out to people in your course or on AAT forums. Set up a regular video call (weekly or bi-weekly works well). Create a shared online space (like a Facebook or WhatsApp group) for notes and resources. Take turns to explain difficult concepts to each other. Hold each other accountable for study goals. As well as discussing course content, in virtual study sessions, you can quiz each other on key concepts, work through practice questions together, and share resources and celebrate big and small achievements. AAT student Emma-Louise Waple started her own Facebook group which is growing daily. She said: “Without that group, I wouldn’t be where I am now. The support I get from other students and tutors is beyond belief. They are a real support network for me and others. Together, we answer questions, not just on study material, but on our future goals.”Fellow student Cheryl Yearwood continued: “We have a wonderful group, and the support is not just about accounting and bookkeeping. The group shines with the patience and kindness that is offered when we feel worried or anxious about anything going on in our lives… that is a special gift to receive and a privilege to be part of such a wonderful group!” Paula Rutter added: “Gin Lalli’s ‘Stress Bucket Solutions’ podcast episodes were recommended to me, and they are really good to listen to for a moral boost.” Balancing independence with connection The brilliant thing about remote study is the independence it offers, but that doesn’t mean you need to feel isolated. You might want some days dedicated to solo study and some when you connect with others. It can take time to find what works for you, but make sure you’re getting some sort of face-to-face interaction (even small ones) and time outside daily, so your emotional resilience doesn’t take a hit and you don’t get digital fatigue. Remote study offers the best of both worlds: the freedom to learn at your own pace, combined with the opportunity to connect with a seemingly endless supportive community of like-minded people. With the right approach, you can create a remote learning experience that’s productive and enjoyable. You’re part of a growing community of AAT students who are proving that remote study is a rewarding path to qualification. Staying motivated when studying alone Without the structure of regular classes, maintaining motivation can be tricky. Make sure you put these things in place to give yourself the best possible chance of keeping your enthusiasm levels high: Set up a dedicated study space, even if it’s just a corner of a room. Create a realistic study schedule, put it in your calendar and stick to it. Break down your learning into manageable chunks. Use a tool like Trello with kanban boards to plan your learning. Make yourself a ‘done’ list to move things on to from your ‘to-do’ list, and reward yourself when you hit milestones. Further reading Coping with stress when studying for your AAT qualifications Top tips for enhancing your studies while working from home 5 easy ways to reduce workplace stress
Top tips for practising self-kindness while you study Posted 05/14/2025 by AAT Comment & filed under Mental health, Students. Self-criticism can increase stress, anxiety and procrastination, however, self-compassion helps build resilience, motivation and emotional wellbeing. Learn how to enhance your skills with these tips. Being kind to yourself makes a significant difference to your mental health, studies and work life. While many of us find it easy to show compassion to friends and colleagues when they face challenges, we often treat ourselves much more harshly. Self-kindness is not about lowering standards or making excuses, it’s about creating conditions that help you perform at your best while maintaining good mental health. People who display self-compassion often achieve more than those who are self-critical, as they are better able to learn from setbacks and stay motivated. 6 techniques for self-compassion 1. Notice negative self-talk The first step in being kinder to yourself is recognising negative self-talk. Notice when you use words like ‘should’, ‘must’, or ‘have to’. These create unnecessary pressure. Replace them with more balanced language such as ‘I’m choosing to’ or ‘I would like to’. This slight shift will help reduce anxiety while maintaining motivation. 2. Create your routine Continuously tweak your routine to find what works for you, so that you feel you are getting the right balance and have good and consistent energy levels. Your routine might include exercise, sleep times, healthy meal plans and time with friends. 3. Take regular breaks Your brain needs time to process information and rest, so schedule short breaks between study sessions or work tasks. Use this time to stretch, drink water or take a walk. Laurie Santos, a cognitive scientist and happiness expert at Yale University, wrote in The New York Times: “There’s lots of work on what’s called time affluence, the subjective sense that you have some free time. The simple act of giving myself a break — two to five minutes to catch my breath between tasks — makes me feel less time-famished. Studies would suggest that just changing that sense of time famine can have a disproportionate impact on wellbeing.” Try AAT’s wellbeing hub If you need further support on how to be kinder to yourself, and other tips for practising a positive state of mind, try AAT’s wellbeing hub. Find out more 4. Set realistic expectations You can probably achieve way less than you think you can in a day but way more than you think you can in a year. Focus on one priority task at a time and break large projects into smaller, manageable steps. 5. Write down your achievements Celebrate small wins along the way rather than focusing only on the end goal and spend 10 minutes writing down everything you are proud of from the last year. It will help you maintain perspective and look at the bigger picture. One bad grade or difficult day doesn’t define your abilities or worth. 6. Embrace failure If you only succeeded at everything you did, you never would have pushed yourself. Everyone faces challenges and setbacks, which are normal parts of learning and growth. Further reading 5 easy ways to reduce workplace stress Coping with stress when studying for your AAT qualifications What can I do to manage stress and anxiety while studying?
AAT success stories: studying alongside playing professional football Posted 05/14/2025 by AAT Comment & filed under Inspiring stories, Students. Professional footballer Reece Styche reveals how studying for AAT gave him focus as he recovered from injury – and why the right mindset and hard work can enable you to achieve your goals. Reece Styche at a glance… Age: 35Years in accounting: 7Name of employer: Safety Technology InternationalTop tip for students: Hard work gets results – if you really want something, be prepared to commit to it fully. Also, be consistent. Small regular wins will add up to great results. Reece Styche never set out to be a professional footballer. In fact, he originally had his heart set on being a plumber and left school at 16. Yet 27 years after playing his first Sunday league match as an eight-year-old, he has represented his country while working as finance manager at Safety Technology International. Styche progressed through the youth system at Hednesford Town, moved to Chasetown when he was 20 and made his debut at Forest Green Rovers in January 2010, scoring two goals after coming on as a substitute. He was approached by Stevenage but had to turn them down to complete his accounting apprenticeship. In November 2010, having qualified as a plumber, he then went full-time with Forest Green. Finding AAT through injury When he suffered cartilage damage in one knee, then an ACL (anterior cruciate ligament) tear in the other, he realised how short a football career is, and started looking at other options away from plumbing. This is where AAT came in. His self-funded Level 2 and 3 AAT studies helped him stay positive and focused between 2011 and 2013 while on the sideline. It was a tough time. His nan, who had been a bookkeeper and an inspiration to Styche, suffered a stroke. He was also recovering from a nine-month cruciate injury. His AAT studies were book-based, with tutor support, but he had incredible backing from Nick Craggs of First Intuition, who gave him help and advice via Facebook, marked mock exams and encouraged him. Landing his first accounting role Styche got his first accountancy job at Safety Technology International, where he started seven years ago as an accounts assistant and has since worked his way up. Now 35, he has combined his AAT and CIMA studies with playing part-time football. After completing AAT Level 4, he started studying for CIMA but, in 2018, he got called up to play for Gibraltar’s national team having made his debut four years earlier, due to his nan’s heritage. Hard work pays off In November 2019, Styche scored his first international goal against Switzerland. He said: “Scoring that goal changed everything. There was a time in football when I was constantly on the bench and I thought about quitting. “Instead, I committed to relentless work – training, gym, nutrition. I got myself in the best shape possible and football has been, since leaving full-time, really rewarding. That wasn’t luck, that was preparation meeting opportunity. I was with Gibraltar between 2018 and 2023 and had a really successful run with them. “It’s the same with accountancy. If you have the right mindset and put in the work, you can achieve anything.” Further reading AAT success stories: from student to business owner From AAT apprentice to director – there’s no limit to success 5 reasons to do an apprenticeship with AAT
Advance your studies with these problem solving skills Posted 05/14/2025 by AAT Comment & filed under Students. Developing your problem-solving while studying can really stand you in good stead for your future financial career. Finance professionals and students will face questions that need answering constantly in areas such as budgeting, financial reporting, discrepancies, regulatory compliance, market assessments and cost analysis. Often, solutions can be found by analysing the correct data and there’s a sense of satisfaction that comes with this. However, the workplace and life will also throw up many issues to be tackled that numbers might not be able to help with, such as navigating team conflict, technical faults, streamlining processes, customer complaints and project delays. We need to deal with all sorts of different things that come up unexpectedly every day. So, what mindset do students need to equip themselves with? Five key mindset components Adaptability: You can deal with the unexpected, analysing situations as they change and developing up-to-date solutions. Decisiveness: You can consider the information and options available to you and make informed decisions in a timely fashion. Critical thinking: You can break down complex problems into logical and manageable parts. Creativity: You can come up with innovative solutions and unconventional ideas and aren’t afraid to try new things. Resilience: You bounce back quickly and view failures as opportunities for learning and growth. Key problem-solving skills There are a number of techniques for students to practise their problem-solving skills to help them excel in their studies and future careers: Decision trees A decision tree is a flowchart that helps you visualise the decision-making process. The branches and leaves (nodes) represent the different potential directions and courses of action that can be taken and their outcomes. They can be particularly useful if you’re a visual person, if you have to present options back to the team or for assessing probability-weighted results. Scenario analysis Create the best-case, worst-case and most likely scenarios. This is useful in financial planning and helps prepare for various outcomes and develop contingency plans. Data-driven problem-solving This involves first gathering all of the relevant data, analysing historical patterns, using statistical methods, testing hypotheses and making evidence-based decisions. Break down complex problems If you don’t know where to start with a problem then you probably haven’t made it small enough. Begin by identifying the core issue and divide the problem into manageable components. Make a plan for each part and decide which order they should be prioritised in. Collaborative problem-solving Problem-solving can benefit from multiple people with diverse perspectives sharing their knowledge and opinions. Don’t be afraid to ask for help. Encourage everyone’s input and be an active listener. Five important things to remember You can only work with the information you have available to you. Don’t get caught up in analysis paralysis or gathering endless data. Set clear parameters for when you have enough data to make a decision. Don’t just focus on short-term solutions. Think about the long term and what caused the problem in the first place. Decide on an outcome that will measure your problem-solving success. Use technology where it will be helpful but oversee it with your own judgment. Whenever you are faced with a problem, think about how it will allow you to try out these strategies and techniques and improve your problem-solving. It’s a skill that will be continuously developed over a lifetime. Look to surround yourself with other people and a workplace culture that supports and encourages problem-solving, collaboration and innovation. Further reading How to avoid common VAT mistakes or problems How to partner with AI as an accountant Here’s what you need to know about AI and accountancy
How are members repricing their services to reflect incoming MTD changes? Posted 05/08/2025 by Annie Makoff & filed under Making Tax Digital, Members, Practice management. Accountants anticipate a sharp increase in work following MTD for IT. Here they discuss the upcoming administrative burden, effects on clients and resultant pricing. Making Tax Digital for Income Tax (MTD for IT) will become mandatory for thousands of individuals from 6 April 2026 – just under eleven months from now. HMRC says it’s the biggest, “most significant” change to Self Assessment since 1997. In the first phase, it will initially affect landlords and sole traders with a qualifying income over £50,000. Stay up to date with MTD Find free resources, articles and policy updates we provide to support you, your business and your clients on our Making Tax Digital centre. Read more From April 2027, the new system will then apply to landlords and sole traders with qualifying income over £30,000. And from April 2028 the system will apply to those with qualifying income of £20,000. The changes require digital record keeping using MTD-compatible software and submitting digital quarterly updates to HMRC. Self-employed individuals and company directors within the scope of MTD for IT will therefore be required to submit quarterly returns (updates) as well as Final Declarations. Although these quarterly updates have been designed to distribute the workload more evenly throughout the year and align with real-time reporting, there are concerns it will create more work for accountants and bookkeepers. The standard deadlines for submitting quarterly updates are as follows: First quarterly update: 6 April to 5 July. Deadline to submit – 7 August. Second quarterly update: 6 July to 5 October. Deadline to submit – 7 November. Third quarterly update: 6 October to 5 January. Deadline to submit – 7 February. Fourth quarterly update: 6 January to 5 April. Deadline to submit – 7 May. Alternatively, businesses can opt to report for calender quarters. The same deadlines apply: 1 April to 30 June. Deadline to submit: 7th August. 1 July to 30 September. Deadline to submit: 7th November. 1 October to 31 December. Deadline to submit: 7th February. 1 January to 31 March. Deadline to submit: 7th May. These changes will have a huge impact on accountants and the services they provide, and many are considering repricing their services to reflect the extra work. But how are accountants approaching this? How can they ensure their new pricing structures fairly reflect the additional time and resources needed under the new system while retaining clients? And how much extra work and time do accountants estimate the new system will create? We spoke to accountants and bookkeepers. Not sure where to start? Here’s a plan you could follow to prepare for MTD. Repricing needs to reflect improved services, even if it means losing clients Stephen Leonard MAAT, Partner, Winders Chartered Accountants We’re in the early stages of repricing and we’re looking at how we’re going to communicate price increases to clients. MTD for IT is going to create additional work, no doubt about it, but it also brings a chance to reassess our services and the value we bring. We’re identifying clients who will be affected by each phase of MTD implementation. So rather than sending out generic emails and adopting a blanket approach, we’re going to write personally to everyone, outlining how the changes will affect them. We will also offer the choice for early adoption. We’ll be clear that these changes will bring an additional cost in percentage terms, which for some clients, is likely to be substantial. We do expect to lose some clients along the way, as some will no longer be able to afford the cost. We see that as an opportunity to focus on bigger and more engaged clients. Repricing is not just about the extra work, it’s about the extra and improved services we can provide for our clients. It’s about getting the conversation right and being part of the solution, seeing MTD for IT as an opportunity rather than a problem. In terms of the additional burden MTD for IT will create, I envisage the initial sign-up and registration process to be quite messy. There will be a lot of back and forth and various authentication processes. But what’s clear is that even though we need to submit four updates, it won’t be four times the work, that’s a myth. Ultimately we’re expecting around 20-25% more work once the system becomes more embedded. But in the early years and during the transition period there will be a lot of time and resource pressures. It’s likely to be 30-40%, and in some cases as much as 50% more work while we’re getting clients registered and signed up. In terms of compatible software, we use Xero. Some clients may want us to use alternative software, but that creates additional time and resources for us to adjust to it. Some of the challenges of using compatible software are around staff training. That creates time and resource pressures as well as training fees. Eventually, we’re likely to see more self-employed people – who previously did accounts themselves – take on accountants and bookkeepers because of added complexities. But that’s unlikely to happen for a while – there is lots of misinformation about DIY accountancy software, so it will take a while before people will seek advice. Verdict: This is an opportunity to review and improve our services and repricing needs to reflect that – even if it means losing clients. Quarterly reporting move is a natural point to ensure commercial viability Rachael-Ann Harrison MAAT, Chartered Accountant and MD, Chadwick Accountants and Bookkeepers Ltd Repricing self-assessments is absolutely essential in light of the upcoming MTD rollout. The shift means four times the number of submissions and queries, and in many cases, year-end calculations will now need to be performed quarterly. This represents a significant increase in workload. That said, I’m viewing this as a real opportunity. Many of our sole trader clients are long-standing legacy clients who are still on outdated, low-fee arrangements. The move to quarterly reporting provides a natural point to reassess and restructure pricing, ensuring these services become commercially viable. Client retention isn’t a major concern for us, as our value proposition isn’t built on being the cheapest. We focus on delivering excellent service and maximising tax efficiency, and those who appreciate that will stay. If someone is purely price-driven, we’re not the right fit for them. I recently spoke with a competitor who has taken an interesting approach. She’s proactively converted all her sole trader clients into limited companies, meaning they’re not impacted by the new MTD requirements. It’s certainly a bold strategy. I do anticipate that more sole traders will start seeking professional support as a result of the changes. What was once a once-a-year inconvenience is becoming a much more frequent obligation, and many will quickly tire of the administrative burden. Verdict: The move to quarterly reporting provides a natural point to reassess and restructure pricing to ensure commercial viability. Clients will want us to pick up more MTD work, increasing planning opportunities Steven Millerchip, Partner, Brearley & Co and Ben Wingate, Partner, Brearley & Co We are definitely considering repricing our services. I’ve been getting five returns done for the price of one return, unfortunately. It’s going to create a massive amount of work all at one time. There’s no staggering to it. It’s not like VAT where we have a number of different quarters that we can work to and spread that work out during the year. We’re approaching this with clients by offering them different options and scenarios for different prices. Clients submit it themselves and crack on with it They do it all themselves and we check it. They could also do most of it and we just do the final bits and submit it. They could give us all the information we require every quarter, and we’ll do it all for them. We’re always wary of valuing ourselves correctly when we bill people. We don’t always get it right – sometimes we give clients a little bit more leeway, and other times the fee structure goes a little in our favour. There’ll be an awful lot of work in the first year because of the limits. And once we’re at the £20,000 threshold, pretty much every single self-employed person client will be affected, even if it’s just someone who does 10 hours a week. Generalising a little bit, the younger generation might be OK with the software, but some older people are going to struggle. Before VAT moved online, clients were more than happy to look after these themselves. When VAT moved onto software, all of a sudden clients very much didn’t want to touch it. They wanted us to pick that up because they’re a bit scared of using that software. We went from maybe seeing a client once a year to a minimum of five times a year, as they wanted us to do all the bookkeeping and all the back returns for them. I can see this being a very similar scenario. MTD for IT should be seen as an opportunity for clients as well – it’s not all doom and gloom. The costs are obviously going to increase, but increasing contact with your accountant or your tax adviser makes for more planning opportunities for mitigating tax in legitimate manners. Verdict: Clients will be intimidated by digitisation and want us to pick up more work. As a result, we’ll have more contact with them, increasing planning opportunities. We’d have to quadruple fees to cover extra costs and admin Andrew Dunn MAAT, Founder, Valley Accountancy We are looking at repricing our services. I don’t see a scenario where MTD for IT isn’t going to increase costs and time spent. It could be around two to three times the workload, but I suspect it’ll be four times for some clients. 90% of our clients provide us with tax information at the last minute, in January, despite us chasing them from the previous April. We have a lot of sole trader clients who just consistently put it off, so having to meet deadlines every few months is going to be a nightmare. It may be a case of deciding to no longer work with sole traders because it’s not worth the headache and stress. Currently, we can cover the fees comfortably, but if we had to quadruple fees – which I’m loath to do – to cover the extra workload and last-minute chaos, it’s going to put off a lot of people. There is a hybrid solution where we can teach them to do their own quarterly returns instead, but the educating and training will take time, and that’s a drain on us. A lot of our clients could be hit with penalties for filing late, especially now they have quarterly deadlines to meet. Maybe it could benefit them – it’ll motivate them to become more organised and better at admin. I am cynical about the benefits of MTD for IT; my concern is that it’s going to push entrepreneurs out of the market and hinder growth. I can see a lot of sole traders deciding to just walk away altogether because the admin and cost increases are too much. Some sole traders have businesses which are more like a part-time hobby – evening yoga classes for example. These businesses may earn £20-30k but when the threshold changes and their earnings fall within the scope of MTD for IT, they’re likely to be put off and close their business down. Some sole traders may become limited companies, however. That is what I plan to advise some of my clients – there are tax advantages for limited companies and it’s less complex in some ways. Verdict: We’d have to quadruple our fees to cover costs and time resources, and I’d rather not do that. Stay up to date with MTD Find free resources, articles and policy updates we provide to support you, your business and your clients on our Making Tax Digital centre. Read more
5 easy ways to reduce workplace stress Posted 05/08/2025 by Jessica Bown & filed under Mental health. It’s not always easy to recognise just how stressed you are – until it’s too late. Here are just five ways to cope when things get a little tough. Signs you may be struggling with workplace stress include: Feeling nervous or twitchy Losing motivation and/or confidence Experiencing mood swings Being hyper-sensitive and tearful Getting into more arguments – both at work and at home If that sounds familiar, here are five simple ways to ease the strain and enjoy a calmer, happier, and more productive working life. 1.Organise your day Planning ahead is one of the best ways to reduce work-related tension.Mornings, for example, can be stressful, especially if you have to get the kids to school and fit in a lengthy commute all before you even sit down at your desk. So why not take the pressure off by getting up a bit earlier and putting the breakfast things out the night before? “Taking the time to watch the sun rise is the best stress killer I’ve found, especially if you can find the time to watch it set too,” says offshore construction manager Sean McGree. Once you’re at work, an online calendar such as Google’s are an easy way to stay on top of your appointments. Productivity apps such as Todoist can also help, as can simply writing an old-fashioned to-do list of achievable tasks at the start of your working day. 2. Set boundaries – and stick to them Knowing when and how to switch off is one of the biggest challenges many workers have faced while working from home due to Covid-19. But when the lines between your work life and your home life become too blurred, it often leads to other issues such as insomnia and relationship problems. A recent survey by HR software provider CIPHR found that not getting enough sleep is one of the most common causes of stress among UK adults, often because they don’t take the time to “wind down” after a day at work. Keeping work emails and messages confined to a dedicated device is one way to protect your personal time. “Don’t have work emails on your phone and turn your laptop off when you have done enough work for one day,” says payroll manager Harry Harris. “No-one’s going to get shot because you leave replying to an email until tomorrow morning.” Mental health charity Mind also advocates developing end-of-day habits, such as tidying your desk or workspace when you have finished. 3. Don’t be afraid to ask for help People often feel stressed when they are unsure what is expected of them, or feel the goalposts keep moving. So, if you are unclear about the requirements of your role, or think what is expected of you is unrealistic, it’s important to raise the matter with a supervisor sooner rather than later. That way you can make sure you are both on the same page, while also discussing potential strategies for meeting your goals, which may prove much more attainable than you thought. Your employer may also offer counselling services via its Employee Assistance Programme (EAP), while many companies also run mentoring and buddy programmes that can help you do a better job, while keeping stress at bay. 4. Be a team player Stress can be very isolating, so another way to avoid it all getting too much is to concentrate on forging good working relationships with the rest of your team. A problem shared is a problem halved, the old adage goes; and that’s certainly true when it comes to letting off some steam with a quick rant about a difficult client or a troublesome piece of software, for example. When you feel overwhelmed, being better connected to your workmates will also make it easier to ask them for help. “Delegate both up and down when you need to,” says communications and marketing director Alex Casey. “But be careful to do it in a sensitive way. What one person thinks is a direct approach can come across as a personal attack to someone else.” 5. Prioritise exercise and fresh air Leading a sedentary lifestyle is not good for us, so when you take a break, try to use it to get some fresh air and exercise. You could, for example, start your day off with an invigorating run or cycle ride, or just go out for a walk on your lunch break. Even gentle exercise can lift your mood and clear your mind, while helping you to get into better shape at the same time. “Look after your physical health,” Mind says. “Take short breaks throughout the day, as well as at least half an hour away from your desk at lunch. Spend some time outside if you can.” In summary Fighting workplace stress doesn’t have to be complicated. It’s mainly about being kind to yourself, for example by: Giving your working day a definite beginning and end – even if you are working from home Asking for help when you need it – and supporting colleagues when they need assistance Staying active – looking after your physical health is one of the best ways to protect your mental health Further reading Coping with stress when studying for your AAT qualifications How to help your employees with their mental health 5 ways to be a great manager