How are members repricing their services to reflect incoming MTD changes?

Posted by & 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.

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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.

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5 easy ways to reduce workplace stress

Posted by & 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

How I overcame my mental health issues and went on to succeed with AAT

Posted by & filed under Mental health, Social mobility.

Alan Johnson FMAAT has faced many hurdles in his life: yet today, he runs a flourishing accountancy business which actively tries to assist those who might otherwise find it difficult to get help with their finances. 

So how has he survived and thrived despite the setbacks life has dealt him?

A difficult start

‘I was told I was useless at school’ says Alan, 50. ‘I left with one O level in music. I always liked maths and I said that I wanted to be an accountant but was just told I had no chance, that I would get nowhere in life’.

He suffered from abuse throughout his childhood which he only faced up to years later when he was receiving psychotherapy. After school, he worked as a gardener until at 23 he was involved in a road accident which left him with spinal injuries. He remains dependent on a wheelchair today.

Getting inspiration

After the accident, Alan needed to find a job he could do. Although he is dyslexic, this wasn’t fully diagnosed when he was at school ‘I was just told I was lazy’. He went to the local further education college and with one to one tuition he got English and Maths O levels, followed by Maths A level.

‘Then I got work experience in an office and from that, started work for an accountant’. From him, Alan started to learn all about accounting. ‘He’d give me stuff to do and would show me how to do things. He boosted my confidence, showed me that I could do it’.

Studying AAT gave me the foundations I needed for my career

During this time, Alan took and passed his AAT qualifications. Because he had dyslexia, he went to a private college where there were only three or four students in a class. ‘Studying AAT gave me the foundations I needed for my career. It gave me a knowledge base, confidence and a useful skill’.

The AAT’s PowerUp campaign has more great stories on how AAT qualifications can help everyone, whatever challenges they face, have a great career.

A decline in mental health

Alan continued working for the accountancy firm, assuming more responsibility and handling a range of clients. But over the years his mental health declined. In 2012, he had a breakdown. ‘There were days when I couldn’t get out of bed. All the trauma of my childhood surfaced.

On January 1 2012 I decided that by December 31 2012 I would be dead. I typed up a suicide note which fortunately my wife found’. She insisted he seek help from a psychotherapist.

The right kind of help

‘I still have help to this day,’ says Alan. ‘There are still some days when I feel very low but I know the signs now and know what to do. I would say to anyone who feels their mental health is suffering that it’s vital to get the right kind of help: you need someone you can trust and who you feel able to share your innermost thoughts with. Don’t put off seeking assistance: I truly think I wouldn’t be here today if I hadn’t found help.’

Starting up his own business

In September 2015, Alan decided to set up his own business and by April 2016, it was up and running. In 2017 he was shortlisted in the AAT Professional Members Award. Alan doesn’t deal with large companies – most of his clients (his books are now full and he isn’t seeking new ones) are sole traders.

‘I’m making less money than I was 20 years ago but I’m happy with that,’ he adds.

A special service

What’s different about Alan’s client base is that many have felt disenfranchised in the past by financial firms or other organisations. Some of them have difficulty with writing; others with form-filling. Others find dealing with HMRC too much. ‘I see people who have reached the end of the road, who can’t read or write but still have to deal with the taxman. The system isn’t set up to help them,’ Alan adds.

The Nanny Mchpee of accountancy?

Alan says his aim is to help those who otherwise wouldn’t find it easy to handle their affairs; those who need more guidance and help than others. ‘I suppose I’m a bit like Nanny McPhee,’ he jokes. ‘So, when you need me you don’t want me but when you want me you don’t need me.’

He works irregular hours so can see clients in the evening and also has a sliding scale of charges. His dyslexia can also be an advantage: ‘I don’t see things in a linear way which means I can approach things from a different angle,’ he adds.

Keep going

Alan says that he wouldn’t consider retirement – ‘What would I do? Anyway, my work is like a hobby. I love what I do. I don’t want to stop. Working helps my mental health too, so it’s beneficial to me and my clients.

I still have bad days, but I think to myself that if I can get through this, then I can get through anything. I really would tell anyone who feels their mental health is suffering is to get help, the right help, as soon as you can. And the fact that I am helping people – people who otherwise find it hard to get help, who need their hands holding – helps me too.’

Summary

If you feel that your mental health is a concern, seek help sooner. There are helplines – also your HR department should be able to assist you. The great thing about AAT qualifications is that they make it easier to work flexibly – you could build up your own business like Alan or maybe work from home in the hours which suit you.

Alan’s experience shows that even if you have multiple obstacles to overcome, it’s still possible to have an amazing career.

Further reading:

Working with neurodiversity

Posted by & filed under Mental health.

Neurodiversity is widely misunderstood. Here’s how two neurodivergent people are successfully working in accountancy, how they adapt their working lives to cope, and an expert’s views on what employers can do to support them.

Being open about ADHD

Carl Reader is an entrepreneur, head of franchising and director at d&t chartered accountants, a multi-award winning accountancy practice, and a finalist for Practitioner of the Year at the British Accountancy Awards. Yet when he dropped out of school at 15, he thought his issues around education and achievement were because he was “a naughty kid”. It wasn’t until he was 35 that he was diagnosed as having ADHD and several years later before he decided to speak openly about it.

Carl is a business expert, qualified accountant and the founder of the #BeYourOwnBoss movement. He’s also chairman of business advisory firm d&t, which has over 2,500 clients in the UK, and director of 3 other businesses.

“I didn’t actually try to be different, I think I just was different,” he says. “Being the odd one out has worked in my favour, but also had its challenges with it as well. I became a trainee accountant when I was 16 and in the early days of training to become an accountant, I would try to fit in. However, I realised I was good at being able to relate to clients, speak to them, go out and visit them, and add value to their businesses.

“By my mid 20s I decided that it was ridiculous that I was buying suits and ties and trying to look a lot older and act or older than I was, and conform to the world of accounting, which really wasn’t me. So I made the decision to wear the clothes I was comfortable in. and do things in a way that I was comfortable with. I decided to allow my natural way of thinking to drive what I felt was best for my clients and for the business.

“So that entailed me stepping away from day to day technical work. I haven’t done tax returns, accounts productions for years and years. Instead I focused on where my skill sets were and where my personality sat best.”

Encouraging people to play to their strengths

The turning point came when he decided to define his values as a person and in business, which were to have utmost honesty, transparency and integrity.

“That was really what drove me to talk about the neurodiversity, which for me has caused a number of challenges,” he says. “So many people talk about ADHD as a superpower, and I really wish I could look at it in that way. Actually, I feel like I’m a very rare person saying this, but it is debilitating so often in my daily life. I can spend an hour or two just trying to find my keys or my phone to get out of the door.

“There are powers such as being hyper-focussed when you’re truly invested in something plus the creativity that comes from being able to think outside the box. The downsides can be extremely crippling and have a massive effect on personal life, but in spite of that I’m actually able to function and I do okay in society and I have 100 ideas before most people have breakfast.”

He says that the whole conversation around diversity of thinking is about how to create a balanced team in organisations, where everyone has the opportunity to play to their strengths.

Adapting to working with autism

Jayd’n Sarrington, 18, is an assistant accountant at The Beauty Accountant and is studying AAT Level 3. He received his ASD diagnosis at age 8 but it wasn’t until he started secondary school that he began to feel different and experience some challenges linked to his autism.

“I couldn’t say I was ever bullied for being neurodivergent, but I did feel that people didn’t understand what it meant to be autistic and that sometimes the term was used by younger people in high school as a synonym for stupid,” he says. “I also used to come home from school feeling really burnt out and need to sleep.”

Jayd’n studied for GCSEs at Walton High in Milton Keynes, and then chose to do an apprenticeship with AAT rather than sitting his A levels. He is currently studying Level 3 AAT at Milton Keynes College and aims to complete his study to Level 4 AAT.

The challenges of autism when studying and learning

“The challenge for me around autism is having black and white thinking and just taking things literally both in an academic setting and also in a social setting too,” he says. “So sometimes the questions in the AAT exams expect you to read between the lines and that can be difficult for me.

“On the personal side, I can struggle with the standards and societal expectations. When I am getting ready to go out and face the world, it’s like taking a deep breath. Then when you’re outside, you’re holding your breath. If things go wrong while you’re taking in that deep breath, then it can make everything else really overwhelming.”

Thanks to support from his mum, Jayd’n successfully enrolled at college and is enjoying his studies.

Jayd’n has an EHC (Education, health and care) plan in place and he and his mum work with the college to help tutors understand how Jayd’n prefers to communicate, what might trigger him to feel overwhelmed, and extra support around stressful events such as taking exams, including putting access arrangements in place so that he sits his exams in a smaller room and has extra time allowed.

Making an impact on lives and businesses

“I love accountancy because there is the opportunity to work with a wide range of people,” he says. “You can make a big impact as an accountant, especially now when people are more interested in starting their own businesses and they need your support and guidance.

“I also enjoy studying and learning about accountancy in depth and having the space to spend time learning more about the subject. Even for people who do not necessarily want to be an accountant, having the AAT qualification gives them a deep and useful knowledge on tax laws and how to structure your business. I have found college to be supportive environment and my tutor is really good at communicating with me,” he says. “Masking isn’t as big of an issue there because I feel like I’m pretty well understood.”

Jayd’n says more education is needed to help schools, colleges and workplaces understand the challenges that go with autism.

“I think a lot of people are actually unaware of how masking works and how it may seem like an autistic person is like coping and it’s fine, but actually underneath they are struggling,” he says. “From an employer’s perspective as well, understanding the sensory impact of lights, smells and noises and making adaptations to the office environment can be really helpful.”

How can employers support neurodivergent workers?

He says employers can educate themselves on spotting signs like the tapping of a pen or physical rocking which indicate that an autistic person is feeling overwhelmed. They can offer support by offering to help them move rooms to somewhere quieter, get a coffee or help the person change their environment for a while. Many autistic people also struggle with anxiety, which can take the form of stomach pains and GI issues, and employers can be sensitive around giving them toilet breaks and not drawing attention to their absences.

“It would be good for employers and educators to seek out information on autism and other forms of neurodivergence,” Jayd’n says. “It is very common for people to have a surface level understanding of autism and ADHD, for example, but really these are just stereotypes because everyone’s different and not every person with ADHD or autism will respond or want to communicate in the same way.”

Starting the conversation about inclusivity

Nathan Whitbread, the Neurodivergent coach, who is dyslexic, works with individuals and employers to shape neuroinclusive workplaces.

“We need to start a conversation about what adjustments people need in the workplace,” he says. “I don’t think you can fundamentally change yourself as an individual, but you can put strategies in place to help you manage.

“It is about what we need to do as a culture and as businesses to help people amplify their strengths and manage the things they find tricky, both as an individual but also as teams. As we work with individuals who think differently, instead of thinking about how to fix them, why don’t we think about the team we need to put in place to enable them to be the most effective they can be?

“There is a lot of good research that suggests that people who think differently and collaborate well can solve more complex problems better because they come up with different angles.”

Jayd’n says his autism means he is good at getting clients to send in documents and abide by deadlines, which is a great strength in accountancy.

“It’s really important that people seek out education on neurodiversity in general, just to open up the doors for communication. That would make working life a lot easier for people who are neurodivergent,” he says.

In brief: A summary of updated MTD for IT guidance on GOV.UK

Posted by & filed under Making Tax Digital, Members.

The Government has updated some of its pages on Making Tax Digital for Income Tax (MTD for IT). Here’s where you can look on GOV.UK for the latest information.

HMRC has been working to deliver MTD for IT for customers. That’s involved updating a number of their web pages (below) as well as making improvements, such as introducing multiple agent capacity for taxpayers.

As part of this effort, HMRC has just launched a new campaign page on MTD.

Updated GOV.UK pages

HMRC is also hosting MTD for IT events at its offices across the UK, which you can read about in its agent update.

Multiple agent solution

HMRC is pleased to confirm that it has enabled multiple agent capability for taxpayers (GOV.UK), and the solution is live.

The self-employed and landlords that sign up to use MTD for IT can choose to authorise more than one agent to help them with their Income Tax responsibilities. Introducing multiple agent capability is intended to:

  • Provide greater flexibility for MTD for IT customers to appoint or authorise agents to act on their behalf.
  • Further support MTD for Income Tax customers in meeting their mandatory reporting and submission obligations.
  • Prevent MTD for IT customers with multiple agents from needing to re-authorise them throughout the year, reducing the admin burden on customers and agents.

HMRC will continue to monitor and improve the system ahead of MTD for IT being enforced in April 2026.

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What the FRS 102 updates mean for accountants and their clients

Posted by & filed under Financial accounting and reporting, Members.

Accountants and bookkeepers discuss how the changes will affect their approach, and their clients.

New changes to the Financial Reporting Standard (FRS) 102 are coming into effect for accounting periods beginning on or after 1 January 2026.

FRS 102, which is reviewed every five years, applies to entities within the UK and Republic of Ireland and provides a standardised framework for financial statements to ensure they give a ‘true and fair’ picture of an entity’s financial position, including profit and loss accounts.

The main changes to the standard include a five-step model for revenue recognition:

  • Step one: Identify the contract with a customer.
  • Step two: Identify performance obligations (goods or services as laid out in contract).
  • Step three: Identify transaction price.
  • Step four: Allocate the transaction price to the performance obligations.
  • Step five: Recognise revenue in accounts when goods or services are provided to the customer.

Further details on FRS 102 changes are available in this article.

So how are these changes likely to affect accountants and their small business clients?

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Changes are to present a clearer view of a company’s financial position

James Shaw, Head of Contractor Accounting, Sapphire

The FRS 102 updates are designed to bring the standard more in line with international norms, while retaining the pragmatic, principles-based approach that UK GAAP is known for.

Key changes include:

  • Revenue recognition: The new model draws inspiration from IFRS 15 but is designed to be proportionate and practical for smaller entities.
  • Lease accounting: Most leases will now need to be brought onto the balance sheet. This change will provide a more accurate picture of a business’s financial commitments.
  • Fair value and other measurement changes: Updates to the fair value framework and how entities account for business combinations and uncertain tax positions.

While these updates are intended to modernise UK GAAP and improve comparability, they will require adjustment, particularly for small businesses. For example, when it comes to financial reporting, lease-related liabilities will now appear on the balance sheet and this could alter key financial metrics and impact borrowing decisions or covenant compliance.

For some businesses, the updated revenue model could mean recognising income earlier or later than before, potentially affecting reported profits and tax planning.

The revised standards emphasise transparency, so businesses really must provide sufficient detail in their notes to the accounts.

A more explicit confirmation around going concern is now required, including evidence that management has considered the foreseeable future when preparing their accounts.

While these changes might seem technical, they’re really about presenting a clearer, more complete view of a company’s financial position.

Accountants can help support clients with these changes through:

  • Tailored impact assessments – Highlighting where and how the changes will affect the business, from financials to compliance processes.
  • Educating teams – Accountants can translate technical jargon into practical steps, offering training or briefings to business owners and finance teams.
  • System and process review – businesses may need to update their accounting systems or processes, for example, to capture lease data more accurately.
  • Advising on early adoption – There may be benefits to adopting the new rules early, and accountants are well placed to advise on the pros and cons.
  • Planning: Financial projections and cash flow forecasts need adjusting, so proactive planning now can reduce surprises later.

Verdict: The changes may seem technical but they’re about presenting a clearer, accurate view of a company’s financial position.

Financial statement presentation and timing of profit recognition to be affected

Michael Marslin, Director, Financial Services team, PKF Littlejohn

It is crucial to understand the impact on financial statements and any existing and potential contracts as soon as possible, since the comparative period for these changes has already started for most preparers.

The most significant changes introduce a five-step revenue recognition model based on IFRS 15 and a recognition of lease liabilities and corresponding right-of-use assets on the balance sheet like IFRS 16, with some exceptions.

These changes could significantly impact the presentation of the financial statements, the timing of profit recognition, key performance metrics and debt covenants.

Small entities applying Section 1A of FRS 102 must consider the impact of changes in FRS 102, particularly in revenue and lease accounting. The amendments introduce additional disclosure requirements, including mandatory disclosures regarding going concern. The FRC has also converted several previously ‘encouraged’ disclosures into mandatory ones and introduced new minimum disclosures, many of which were previously only required for medium and large businesses.

Several changes have been introduced for micro-entities applying FRS 105. These include a five-step revenue recognition model and updates to the concepts and pervasive principles section of the standard. However, there are no changes to lease accounting, nor are there any additional disclosure requirements for micro-entities.

Verdict: These changes could significantly impact the presentation of financial statements, the timing of profit recognition and key performance metrics.

More of my clients now fall under ‘small and micro entity’

Ben Rose, MAAT, Partner, Martin Seitler & Co

Turnover and balance sheet totals thresholds have been increased under the changes. As a result, generally more clients will fall under the SME category – which is good news for some clients who were just at the threshold previously.

If a company moved from ‘micro’ to ‘small’, then we would have to report their financial statements slightly differently. However, not much is changing for our clients as many of them still fit in the ‘micro entity’ category. For example, neither a small company nor a micro entity need to submit their Profit and Loss account to Companies House… yet.

Verdict: More clients will fall within the ‘small and micro’ entity category under the new FRS 102 amendments due to threshold changes.

Accountants will need to provide consultative advice

Vipul Sheth, Chartered Accountant, MD, Advancetrack

The changes are all about bringing UK accounting standards closer to international norms and improving consistency and transparency in financial reporting. Revenue recognition now focuses on when goods or services are delivered rather than when invoices are issued. Companies will be expected to provide fuller, clearer disclosure about key judgments they have made in financial statements.

Those affected will need to adapt to stricter rules on revenue recognition and will have to spend time considering what leased equipment and vehicles need to be included in their balance sheets, which could be quite time-consuming. Service-based businesses will also have to consider when they are recognising service delivery, in order to follow the five-step approach.

For accountants, it’ll mean a greater focus on providing consultative advice to clients, to help them understand the changes. The new rules will be more complex, but hopefully they will ultimately lead to clearer, more reliable financial statements and better decision-making.

Verdict: Changes are complicated and accountants will need to provide consultative advice to clients. Hopefully the new rules will lead to clearer financial statements and better decision-making.

Including leases under one umbrella in the balance sheet is welcome

Aaron Westgate, Chartered Accountant and Accountant Teacher

Leases and revenue steal the headlines but there are a slew of welcome changes. Most notable is the classification of software (a staple accounting line for almost every company) but everything from financial instruments to share-based payments gets a focus.

Leases are the bigger move to reflect what we see in reality – for example, lots of 1-year leases for business expenditure. The move to simplify leases under one umbrella is the big change we’ve been expecting (and wanting) for some time, avoiding the class ‘off balance-sheet’ item controversy

Revenue changes may be less significant than leases but are still welcome. For revenue, we’ve always had to consider the breakdown of bundles and quirks to atypical revenue streams but this helps simplify some of the pain points in accounting for it.

Verdict: The move to include leases under one umbrella in the balance sheet is a welcome change.

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Everything you need to know about MTD for IT 2026

Posted by & filed under Making Tax Digital, Members.

With less than a year until Making Tax Digital for Income Tax goes live, we summarise all the information you’ll need.

Making Tax Digital for Income Tax (MTD for IT) is the most significant change to the self-assessment regime since its introduction in 1997.

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Who’s affected, and when

From 6 April 2026, approximately 795,000 sole traders and landlords earning over £50,000 annually will need to keep digital records, use MTD-compatible software and submit quarterly summaries of their income and expenses to HM Revenue & Customs. 

Those with qualifying income – gross income from self-employment and property before any tax allowances or expenses are deducted – above £30,000 will need to use MTD for IT from April 2027. The threshold will then decrease to £20,000 from April 2028.

Quarterly reporting deadlines

MTD for IT will fundamentally change the tax reporting rhythm. Practices should embed quarterly reporting into their operational cycle, setting up reminders, checklists and review procedures for each submission period.

The standard quarterly reporting deadlines are:

  • 6 April to 5 July
  • 6 July to 5 October
  • 6 October to 5 January
  • 6 January to 5 April

Businesses can elect to report for calendar quarters:

  • 1 April to 30 June
  • 1 July to 30 September
  • 1 October to 31 December
  • 1 January to 31 March

The deadlines for quarterly updates will be 7 August, 7 November, 7 February and 7 May following the end of the relevant quarter.

Reporting requirements

Taxpayers will be required to maintain digital records of business and/or property income and expenses, including the following details:

  • The amounts and dates of the transaction.
  • The category of the expense (which is broadly aligned with those on the Self-Assessment return).

Taxpayers with turnover from either self-employment or property below the £90,000 VAT threshold can choose to submit simplified “three-line accounts” and just categorise each item as either income or expense and net profit.

There is an easement for landlords of jointly owned properties. They will not need to show their expenses in the quarterly updates, instead reporting them when finalising their year-end tax position. However, they do still have to submit their income each quarter, so are not exempt from making quarterly updates.

However, separate quarterly updates will be required for each business a taxpayer is involved in so that an individual who is a sole trader and a landlord will need to provide eight quarterly updates each year.

Taxpayers must then complete a final declaration of their tax position through MTD-compatible software at the end of the year – based on the current Self-Assessment return of 31 January. This includes:

  • All other sources of income (e.g., employment, dividends, bank interest) that have not already been reported.
  • Claiming any relevant reliefs or allowances.

Digital records must not be kept in spreadsheets unless those spreadsheets are API-enabled or used in conjunction with bridging software that allows two-way communication with HMRC systems.

Penalties

Under MTD for IT the new points-based penalty regime introduced by HMRC applies to those failing to submit a return.

This regime is already in force for VAT (since January 2023) and will apply to MTD for IT from the 2026 start date for relevant taxpayers.

  • One point is incurred for each late submission.
  • Once a taxpayer reaches a certain threshold, a £200 fixed penalty is issued.
  • Further penalties of £200 apply for each additional late submission after the threshold is met.

Thresholds (based on submission frequency):

Submission frequencyPenalty threshold
Annual (e.g. Final Declaration)2 points
Quarterly (e.g. MTD for IT)4 points
Monthly5 points

Points expire:

  • After 24 months if the taxpayer remains compliant.
  • If the threshold is reached, a period of compliance is required to reset the points total (e.g. 12 months with no late submissions for quarterly obligations).

Beta testing

HMRC expanded its private beta testing for MTD for IT on April 16, opening the pilot scheme to agents and eligible clients.

Participating allows practitioners to road-test systems in a live environment and provides valuable experience before the mandatory go-live. Early adopters can spot teething issues, fine-tune workflows, and build confidence ahead of wider rollout.

You can sign up your client voluntarily if all of the following apply: 

  • their personal details are up to date with HMRC 
  • they’re a UK resident 
  • they have a National Insurance number
  • they have submitted at least one Self Assessment tax return, or you have done this on their behalf 
  • they’re up to date with their tax records: for example, they have no outstanding tax liabilities 
  • their accounting period runs from either:
    • 6 April to 5 April
    • 1 April to 31 March (you must make sure you and your client’s software can support this accounting period).

You cannot sign up your client voluntarily if they: 

  • have a payment plan with HMRC
  • are a partner in a partnership  
  • claim Married Couple’s Allowance  
  • claim Blind Person’s Allowance  
  • are currently, or are going to be, bankrupt or insolvent  
  • are an MP, minister of religion or Lloyd’s underwriter  
  • have income from being a foster carer or being in a shared lives scheme  
  • have income from a trust
  • are subject to a compliance enquiry 
  • use ‘averaging’ or other arrangements because their profits vary between years, for example, because they’re a farmer, writer or artist.

Taxpayers participating in the beta testing will be subject to the new penalty regime. However, they will not incur any filing penalties for late submissions or quarterly updates during the testing phase. However, the exemption does not extend to the final declaration due by 31 January.

Software

Practitioners and their clients will need to use commercial software that works with MTD for IT.

Sole traders with simple income may benefit from free or low-cost options, while landlords and complex businesses might need more advanced tools.

Some software can submit both quarterly updates and year-end tax returns, but other products will only do one, so it’s important to check first.

For example, an individual might create their own digital records and send their quarterly updates but still want their agent to submit their tax return. In this instance, software that sends quarterly updates is sufficient. 

Some software will be able to report all business income sources, whilst others may focus on a specific source. For example, there are products that are designed specifically for landlords.

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Action Plan: Preparing for MTD for IT

Posted by & filed under Making Tax Digital, Members, Tax.

There’s less than a year to go until Making Tax Digital is enforced. Act now to ensure you and your clients are ready.

With just under a year until the first group of taxpayers mandated for Making Tax Digital for Income Tax (MTD for IT) enters the new system, accountants and bookkeepers must act now to ensure clients – and their own practices – are fully prepared.

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From April 6, 2026, approximately 795,000 sole traders and landlords earning over £50,000 annually will need to keep digital records, use MTD-compatible software and submit quarterly summaries of their income and expenses to HMRC. 

Those with qualifying income – gross income from self-employment and property before any tax allowances or expenses are deducted – above £30,000 will need to use MTD for IT from April 2027. The threshold will then decrease to £20,000 from April 2028.

Here’s how to get started.

1. Review and Segment Your Client Base

  • Identify clients in scope: Focus on self-employed individuals and landlords with total annual income over £50,000 (from April 2026) and over £30,000 (from April 2027).
  • Gross income from each source must be totalled. A client with £35,000 from self-employment and £20,000 from rental property will earn £55,000, so would be within scope.
  • Categorise clients: Group them based on their current record-keeping practices (e.g., fully digital, partially digital, paper-based).
  • Start implementing digital record-keeping solutions for these clients that have no records. Identify the necessary steps to bring clients with inadequate records up to standard.
  • Prioritise engagement: Begin with clients who are least prepared for digital transition. MTD for VAT has been mandatory for VAT-registered businesses regardless of turnover since April 2022. So, clients that are already in MTD for VAT will be easy wins, as they will be more prepared to submit MTD quarterly updates.

2. Assess and Update Your Own Practice Systems

  • Evaluate software: Ensure your practice software is MTD Income Tax-compatible or plan a transition.
  • Train your team: Upskill staff on digital record-keeping requirements, quarterly updates and client support for MTD.
  • Adapt workflows: Build quarterly processes into your firm’s tax return cycle now, so it’s routine by 2026. While it is possible to elect for calendar quarters instead of tax year quarters, these dates are still within five days of each other, and could create pinch points.
  • Firms that have a mixed practice with audit work and clients that have December year-end accounts should ensure they are fully prepared for that peak in the first quarter of the year.
  • Use practice management software to automate reminders, track client compliance and test these new processes internally or with beta clients.

3. Choose Suitable MTD-Compatible Software for Clients

  • Research options: Select software that suits the needs of your different client segments (e.g., sole traders vs landlords). Sole traders with simple income may benefit from free or low-cost options, while landlords and complex businesses might need more advanced tools.
  • Some software can submit both quarterly updates and year-end tax returns, but other products will only do one, so it’s important to check first.
  • Standardise where possible: Reducing the range of software you support will make ongoing client management easier.
  • Pilot internally: Test the software within your team or with a small number of clients before wide rollout.

4. Participate in HMRC’s Beta Testing Programme

  • Join the public beta: From April 2025, HMRC’s open beta for MTD Income Tax is available for accountants and clients to test the system ahead of mandatory compliance.
  • Select suitable clients: Encourage digitally confident clients to join the beta early. Pick several clients who all have different requirements or obligations – a self-employed client, a UK property only client, or a client who has got both of those income streams as well.
  • Consider pricing: Practitioners will need to consider whether to charge clients who participate in the pilot.
  • Learn and adapt: Use real-world experience from the beta to refine your workflows, educate staff, and identify any technical issues early. Early adopters can spot teething issues, fine-tune workflows, and build confidence ahead of wider rollout.
  • Provide feedback: Beta testers have a direct line to HMRC to report issues, giving you an opportunity to shape the system and gain early insights.

5. Educate and Communicate with Clients

  • Raise awareness: Start an MTD IT awareness campaign (emails, webinars, factsheets). Explain how quarterly reporting differs from the annual return.
  • Set expectations: Outline the benefits (e.g., better financial visibility) alongside compliance obligations.
  • Offer practical support: Provide software demos, training materials, or even one-to-one sessions for nervous clients.
  • Where clients continue to rely on spreadsheets, ensure they use bridging tools or APIs to remain compliant with MTD’s digital link requirements.

6. Transition Clients to Digital Record-Keeping

  • Set early deadlines: Encourage clients to move to digital record-keeping by early 2025, allowing a full year to adjust.
  • Offer flexibility: Consider how to address the need for those clients to maintain digital records, either by providing that technology as part of a wraparound service as part of their annual compliance work or by advising clients to purchase their own software.
  • Support onboarding: Offer checklists, templates, and how-to guides to ease the transition.
  • Monitor progress: Regularly review which clients have fully transitioned and who might need further assistance.

7. Consider Pricing

For accountancy practices supporting clients through MTD for Income Tax, especially during the beta phase, pricing must reflect the added time, software costs, and client support required.

Practices should consider offering fixed monthly fees that bundle quarterly submissions and software use, apply tiered pricing based on client complexity, and clearly communicate the value of early adoption to justify any new or increased charges.

Three key pricing considerations:

  • Service bundling: Use monthly or annual packages that cover quarterly updates, software, and support.
  • Cost recovery: Pass on or include the cost of MTD-compatible software licences and bridging tools.
  • Tiered pricing: Charge based on the complexity of client needs (e.g. sole trader vs property and self-employment).

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Tax update Spring 2025 from HMRC

Posted by & filed under Members, Tax.

Exchequer Secretary to the Treasury James Murray has outlined a range of administration and simplification measures intended to help modernise the tax and customs system.

Jonathan Athow, Director General, Customer Strategy & Tax Design at HMRC says “Many of the measures will improve HMRC systems or reduce administrative burdens to provide a better experience for individuals and businesses, while others will simplify the way HMRC communicates with our customers”.

Below are the consultations open to your responses, as well as the changes being made, and HMRC’s explanation of how each should help.

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Improving HMRC’s approach to dispute resolution 

Consulting: HMRC is inviting views on how it might resolve customer disputes earlier and more effectively. 

The consultation focuses on the ease of access and use of HMRC’s alternative dispute resolution and statutory review processes, and includes the potential to simplify the appeals process by aligning
its approach for direct and indirect taxes.  

The consultation is open for feedback until 7 July 2025.

Valuation Office Agency (VOA) to join HMRC 

Change: Functions of the VOA will be integrated with HMRC by April 2026.

Explanation: Moving the VOA’s functions into HMRC will help to improve the experience of customers and businesses and support the delivery of the government’s commitments to reform business rates and modernise the tax system.  

This move will deliver change more quickly and effectively, by combining the expertise and experience of both organisations in policy, valuations and programme delivery.  

Income Tax Self Assessment (MTD for IT) criteria review  

Change: The government intends to change IT income reporting thresholds within this parliament. This will change how customers can report income below the thresholds to HMRC. The £1,000 tax-free trading allowance remains the same, meaning the amount of tax due is unchanged.  

This change will align three IT reporting thresholds for income at £3,000 (gross) each:

  • increasing the IT reporting threshold for gross trading income
    from £1,000 to £3,000
  • increasing the reporting threshold for “other taxable income”
    from £2,500 to £3,000
  • creating a single reporting threshold for property income at
    £3,000 gross (currently £2,500 profit or £10,000 gross income).

Explanation: Implementing this will mean up to 300,000 customers will no longer be required to file a tax return. The vast majority (98%) of these customers are individuals who receive small amounts of trading income.

HMRC also estimates that 90,000 customers will have no tax to pay and could withdraw from Self Assessment. Others will still have tax to pay but could also withdraw from Self Assessment and report their liability through a new simple online service.

More details, including a timeline for delivery, will be published in HMRC’s Transformation Roadmap later this year.

Mandating the payrolling of Benefits in Kind update

Change: HMRC has published an updated technical note which provides
more operational information on how employers can adapt to mandatory reporting of Income Tax and Class 1A NICs for most Benefits in Kind and taxable expenses. These changes have been pushed back, and will now apply from 6 April 2027 instead of April 2026 as previously announced.

Explanation: HMRC is extending the deadline to give employers more time to adapt.

Capital Goods Scheme Simplification 

Change: The government will bring forward legislation to simplify the VAT Capital Goods Scheme (CGS), reducing burdens for businesses by increasing the threshold for land, buildings and civil engineering work from £250,000 to £600,000 (exclusive of VAT) and also removing computers from CGS assets.

Explanation: Increasing the threshold to £600,000 will remove an estimated 105,000 commercial properties from being subject to the scheme. These changes will take effect at a later, unspecified date.

Transfer pricing

The government has published two consultations on international tax reform.

Reform of UK law in relation to transfer pricing, permanent establishment and Diverted Profits Tax, is a
technical consultation on draft legislation. The intention is to simplify and update some of the UK’s international tax rules and align them with the UK’s treaty obligations.

Transfer pricing: scope and documentation, is a policy consultation on two related proposals:

  • To better define the UK tax base by removing the exemption from transfer pricing for medium-sized businesses, whilst retaining an exemption for small businesses.
  • Introducing a requirement for multinationals to report information on cross-border related party transactions to HMRC through a new International Controlled Transactions Schedule. The ICTS is intended to facilitate better identification of transfer pricing risk and allow for more efficient, targeted compliance activity.

Both consultations are open for feedback until 7 July 2025.

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The science of studying – how to make it work for you

Posted by & filed under Study tips.

Whether you are preparing for exams, revising for progress tests or consolidating your knowledge, being self-directed in your study and revision is a valuable and time-saving tool. This is particularly true if you are working and studying at the same time.

So what is the most effective way to study and how can you study smart to make the most of your time? Do flashcards work? What is the best study aid? How do you draw up an effective revision and study timetable? What can scientific research tell us about the best revision strategy?

The importance of effective study

“Combining study alongside work and other responsibilities can certainly be a challenge, however a good starting place is reframing what you know about managing your time,” say Karen Meager and John McLachlan – Co-founders of Monkey Puzzle Training and Consultancy.

“The phrase ‘time management’ is a myth because you cannot manage time itself, only your use of it. Time management is not multitasking nor speeding through your tasks as quickly as possible.” Indeed, when studying, this perception is only likely to reduce the amount of quality information you’re able to take in.  

“Each of us has the same amount of time each day, each week and each month. How we choose to use that time depends on what we consider to be important and how we think about time. It has as much to do with our deep-seated thinking and behavioural habits as it does to do with organisational skills.”

Making the most of your time might involve using commuting or downtime to gain extra information. Learning doesn’t necessarily equate to days in a classroom and can instead now be done in micro doses, to adapt to everyone, says Sarah Danzl, Head of Global Communications and Client Advocacy at Degreed.

“When you look at the concept of studying, it’s important to look at all types of learning – podcast while you commute or work on admin things, videos, books, reading blogs and newsletters,” she says. Reading round your subject, consolidating knowledge by looking at topics from different perspectives, can also help to shape your learning.

What is the most effective form of revision?

A fascinating study by Nate Kornell at the Department of Psychology, University of California, Los Angeles, looked at the use of Flashcards in revision. His research:  Optimising Learning Using Flashcards: Spacing Is More Effective Than Cramming, found that not only did flashcards work well, but they worked best when revised in big batches, and then revisited later.

“The spacing effect—that is, the benefit of spacing learning events apart rather than massing them together—has been demonstrated in hundreds of experiments, but is not well known to educators or learners,” he says in his introduction to the paper.

“I investigated the spacing effect in the realistic context of flashcard use. Learners often divide flashcards into relatively small stacks, but compared to a large stack, small stacks decrease the spacing between study trials. Studying one large stack of flashcards (i.e. spacing) was more effective than studying four smaller stacks of flashcards separately (i.e. massing).”

He points out that spacing does not take more time than massing, it simply involves a different distribution of time.

Is it worth going over topics you have already learned?

In short, yes. Research by Katherine Rawson, a psychologist at Kent State University in Ohio, in a paper on The Power of Successive Relearning: Improving Performance on Course Exams and Long-Term Retention, found it did.

She found that the spacing effect worked well when optimising learning and memory, as did practice tests across several days. Going through practice tests helped students retrieve information from their long term memory and consolidated what they had already learnt. In addition, testing yourself regularly, or getting someone else to test you and ask questions on different topics, can be very effective in helping you prepare for the variety of questions and approaches that might come up in a formal exam.

Cramming is less effective than spaced-out revision

Nate Kornell’s experiments also revealed that spacing was more effective than cramming. In other words, learning gradually across weeks or months will help you retain more than if you try to stuff your brain with facts and figures the night before your exam.

Cultivating this discipline is what will set you apart as a self-directed learner. Quizlet, the online revision tool, identifies self-directed learners as students who regularly practice behaviours that lead to greater achievement. They don’t just earn excellent grades; they demonstrate a genuine interest in learning. This internal motivation gives them a strong sense of personal agency and responsibility for their achievement.

Self-directed learners have three important habits:

  • Goal setting: They create clear long-term objectives with concrete steps for achieving them and time management skills.
  • Metacognitive skills: They are aware of how they learn best. They know which actions foster learning — like taking marginal notes or memorizing flashcard sets — and apply that knowledge strategically.
  • Growth mindset: They regard effort as the most important factor in their own learning, including the development of study skills. They believe their actions influence their intelligence and potential.

Plan your time for effective study

Another effective tool is to create a to-do list so that you can keep yourself on task.

“If you are revising for an exam, make a list of key topics you want to have studied by the end of that session so that you aren’t revising aimlessly, and tick them off at the end, says Michelle Bibby, Head of Pedagogy at The City of Liverpool College. “It may also help to rate your confidence out of ten for each topic you have revised so that you can revisit anything that you are still unsure of at the start of your next session.”

Get into Deep Focus mode 

This means putting your phone away and engaging fully with your work.

“If you have one particular project that you need to make progress on, blocking out a few hours of Deep Focus time in your diary will really help you,” says Dr Alex Young, human performance expert and founder/CEO of immersive training company Virti.

“Deep Focus time means removing all distractions – from social media to emails and even other people – so that you can give 100% of your mental energy to just one task,” he says. It’s best to plan your Deep Focus time to fall in the part of the day when you usually have the most energy, for example earning morning.

“When it comes to being more productive and balancing work and study in your life, there is no one-size-fits-all strategy,” he says. “Everyone is different; we all have our own motivators and it’s about finding what works best for you.”

Further reading