How to approach your boss when you’re feeling stressed Posted 10/10/2018 by Adam Harwood & filed under Career, Mental health. Two-thirds of British adults have admitted to having experienced a mental health problem at some point in their lives. Work can contribute to poor mental health, and the government’s Thriving at Work report has shockingly found that around 300,000 people with a long-term mental problem lose their jobs each year, and 15% of people at work have symptoms of an existing mental health condition. If you start feeling stressed at work, or feeling like you are suffering from poor mental or emotional health, trying to explain this to your boss may feel like a daunting prospect. In a survey of professional finance workers we carried out last year, we found that only a quarter (25%) would feel most comfortable talking to their line manager about stress or mental health problems. It’s understandable to be nervous about approaching your manager about stress or mental health issues, but most managers will usually try to give you as much support as possible, especially in light of The Health and Safety at Work Act 1974, which requires employers to take reasonable steps to look after employees’ mental health and welfare. Here are five steps to help you approach your manager in the best way and hopefully get the support you need. 1. Prepare what you might want to say. Take some time to think about how much you want to disclose, and what you might need from your manager or employer to help you. 2. Ask to speak to your manager privately. You can email them and ask if you can have a private meeting with them, which may be easier than approaching them face to face. 3. The best way to approach the subject is to try and be as open as possible. Let them know what is happening as soon as possible, although you don’t necessarily need to tell them the full details, only as much as you feel comfortable doing. 4. Let them know what support you need. You will probably be best positioned to know what you will need to help you, so ask for it, whether it’s time off, changes to your working hours, or changes to your workload. Annie Donovan, Chief Executive of KIM Inspire, a non-profit organisation that aims to provide routes to emotional well-being through a variety of activities and group work says: “It’s usually the person who is struggling with mental health who will know the kind of things they need that will take the pressure off and alleviate some stress.” 5. If your manager is not as helpful as you might hope for, you may want to speak to someone in your organisation’s Human Resources department, and if they are still not very forthcoming, you could get in contact with the legal line at Mind. With many people up and down the country reporting that they have experienced mental health issues at some point in their lives, much of which is because of work-related reasons, anyone suffering should not feel like they are alone. Nearly half (43%) of those finance professionals we spoke to admitted that they have suffered from stress on a frequent or regular basis at some stage in their career. Annie Donovan suggests it is best to have open conversations about any problems: “Just be open and just treat it as an everyday conversation, Don’t be afraid to ask because it’s not going to hurt anybody. Nobody’s mental health will become worse as a result of talking about it.” After you’ve talked to your boss about how you are feeling, there is a good chance you will feel at least a little better, having got it off your chest, and also because you will be able to start getting the support you need to start trying to feel better.
Overseas residential property investors Posted 10/10/2018 by Phil Hall & filed under AAT news. Annual new build housing starts totalled 157,480 for the year to March 2018, well short of the 300,000 homes a year that the House of Lords Economic Affairs Committee estimated the UK needs for the foreseeable future or what the Chancellor committed to delivering in the 2017 Budget. Punishing land banking house builders, addressing the effective monopoly enjoyed by the big house builders, giving local authorities more powers, freeing up part of the green belt, applying punitive taxes – for example additional stamp duty on second homes – and many other solutions have been put forward as solutions to this problem over the years with varying degrees of success. Another solution There is another mechanism that could be employed to help reduce the problem, one that AAT first highlighted in 2017, and that is to impose some form of additional tax on overseas residential property investors. This is in recognition of the fact supply is limited and that millions of UK residents who live, work and pay tax in the UK are struggling to get on the housing ladder – and that competition with overseas investors is not helping. It’s far from a panacea and AAT has repeatedly stated it won’t solve the housing problem but it will make a small yet significant dent. Government response The Government has responded to AAT’s 18-month campaign for reform with the Prime Minister last week confirming that they will introduce such a change. The Prime Minister, Theresa May MP, said; “Britain will always be open to people who want to live, work and build a life here. However, it cannot be right that it is as easy for individuals who don’t live in the UK and don’t pay taxes here, as well as foreign based companies, to buy homes as hard working British residents.” Why penalise overseas investors? Some commentators have questioned why this is necessary, so it might be helpful to set out the case. Put simply, it doesn’t matter how many houses are built in the UK, there will never be enough to meet demand because demand is not simply coming from the 65m currently resident in the UK but from across, Europe, Asia and America. Years of London property purchases by the super-rich from Russia, China, America and various other countries are well documented but it’s not just London that overseas investors are setting their sights on. Liverpool, Manchester and other parts of the UK are proving equally attractive. What’s more, it is no longer the super-rich alone who are snapping up properties across the country. Middle income earners from across the world, especially China, Malaysia and Singapore, are finding UK property an increasingly attractive proposition. This has been exacerbated the weakness of sterling following Brexit. Perhaps the most frustrating aspect of this phenomenon is the fact that some of these properties are bought solely as investments rather than as homes or even as rental properties. In other words, they sit empty, appreciating in value whilst huge numbers of British residents become priced out of the property market, are forced to rent, to live with friends and family or to join the ranks of the thousands of rough sleepers on our streets. Imposing an additional tax is far from radical, will introduce some much-needed fairness to the system and could raise tens of millions of pounds to help reduce homelessness. These are all factors that the Government has accepted and highlighted with their announcement last week. Evidence Much of the criticism of this policy, primarily from estate agents concerned about dwindling commissions, has suggested there is no evidence this will make any difference and indicated that it is unacceptably discriminatory. Neither argument stands up to scrutiny. There are numerous international examples to demonstrate this can be done effectively. Property can only be purchased by residents in Singapore and Iceland. Others impose less rigorous but arguably sensible restrictions. Non-residents in Poland, well those from outside the European Union anyway, must obtain permission from and pay a fee to the Ministry of Internal Affairs to purchase a home. This permission will only be granted if they have either lived in the country for five years or more, or can demonstrate some other form of significant connection to the country e.g. marriage to a Polish citizen. Similarly, Denmark and Hungary impose some limits on who can buy property within their borders and make additional charges, and Australia and New Zealand have imposed some restrictions as a direct result of an explosion in overseas property acquisitions, primarily from China. The discrimination argument also has no merit given location rather than nationality is the deciding factor – as with much other successful tax law and policies. Furthermore, the Government has rightly been explicit that anyone of any nationality is encouraged to buy property in the UK if they live here, it’s simply that if you don’t you will have to pay a little more. My understanding is that this will also apply to British nationals who are permanently resident in another country, again undermining the rather weak opposition based on discriminatory grounds. Another criticism is that Government shouldn’t interfere in the market, that imposing some sensible restrictions in this area threatens the important message that Britain is open for business or that it could be damaging for our successful property market. Scratch the surface and these arguments fall away. Governments often interfere where markets are not working properly, and few would argue our housing market is working well. Britain is open for business, whatever your nationality, move here, contribute and there will be nothing to stop you buying a home. Why AAT? AAT has been campaigning for this reform not simply because it’s fairer, because it will help raise money to tackle homelessness, or because it will make a small but meaningful contribution towards the UK’s housing problems, but because there is overwhelming support for such a change from our members. Last year, AAT members were asked if there should continue to be no restrictions on house purchases by overseas investors and the response was overwhelming. 87% said “No” with a mere 8% saying “Yes”. This indicated the time had come for Government to give serious consideration to acting. More specifically, the 2017 AAT Housing Survey revealed that when asked, “Should an additional tax be paid on property purchases by overseas investors?” more than three quarters (78%) said “Yes” compared to just 14% who said “No”. As a result, AAT welcomes the Government decision to impose an additional Stamp Duty charge on overseas residential property investors. Whilst recognising this isn’t going to solve housing supply issues on its own, it’s a sensible and measured response to an increasing problem that will also raise £40-£120m and add a degree of previously absent fairness to the system.
How to avoid becoming overwhelmed at work Posted 10/10/2018 by Georgina Fuller & filed under Career. A recent report by the CIPD and Mind mental health charity found that mental health issues are now the primary cause of long-term sickness for almost a quarter (22%) of organisations. The survey of over 44,000 employees also found that only four in ten (42%) felt their manager would be able to spot the signs if they were struggling with mental health issues. Emma Mamo, head of workplace wellbeing at Mind, said: “Our research finds that almost one in two workers reported they had experienced poor mental health – such as stress, low mood, and anxiety – while working at their current organisation. Given how much of our lives are spent at work, and how common poor mental health is, it’s really important that our employers and managers take an active role in helping us keep well and supporting us when we need it.” So how can managers and businesses help spot the signs and prevent their employees m becoming overwhelmed at work? Appreciate that everyone is different Jonathan Taylor, senior psychologist at Pearn Kandola business psychology firm, says one of the first things to understand is that everyone has a different response to stress. “Stress occurs when we feel unable to cope with the current demands being placed on us. That ‘this feels too much’ moment. But we are all different and we each have different thresholds.” These thresholds are influenced by a number of different factors and the working environment. “For example, have we overcome similar challenges before? Do we feel like we have additional support on hand if we need it? How rested are we? Having an understanding of what stress is, what causes it, what it feels like, and how we can manage it is key,” says Taylor. Learn how to spot the warning signs “The most common warning signs of stress include feelings of anxiety (rapid heartbeat and difficulty concentrating), irritability or short temper, reducing social contact with others, difficulty sleeping and memory problems,” says Taylor. “Carry out your own risk assessment and encourage employees to take regular breaks, mentally switch off from work at times, socialise and look after their wellbeing by making sure they are getting enough sleep, eating well and exercising.” Learn how to say no While “yes” might be the default for many of us, we can’t say yes to everything and everyone. Sometimes this comes down to learning to say no to things without feeling as though you’re letting your boss or colleagues down. “Rather than a straight ‘no’, turn the discussion into a positive by offering suggestions on what you feel is possible. For example, ‘I won’t be able to make Friday, but I could do Monday?’” Taylor advises. “Or if the new task has created a conflict for you, share this with your manager – ‘I’ll struggle to do this and the other task. Can the deadline for the other task be pushed back a day?’” Encourage and reassure people Adrian Lewis, director of Activ Absence software company, says encouraging people to communicate more openly is essential. “People would rather be perceived as being lazy than having a mental health problem, so leaders must reassure people there are no stigmas around mental health,” he notes. “They could also promote mental health support services, such as EAPs or counselling, and use great events such as World Mental Health day to communicate positive mental health messages.” Give employees more autonomy Peter Clarke, co-founder of Qlearsite HR consulting firm, says there will inevitably be times when we all feel overwhelmed but that it’s about giving employees the autonomy to speak up. “Employees need to be given the autonomy to decline a task if it doesn’t fit within their long or short-term priorities,” he notes. “It is far better to commit to doing ten things excellently than to commit to doing 20 and not being able to deliver on any of them in full detail or to the high standard others expect of you.” Don’t suffer in silence Ultimately, it comes down to not trying to be a martyr and letting your boss and colleagues know how you’re feeling. Lewis says: “Being authentic and realistic is far better than taking on too much and suffering in silence and becoming overwhelmed. Unless there is a two-way, open dialogue about workloads then managers simply won’t realise they are over loading their staff.”
Presenteeism – present at work but not productive Posted 10/09/2018 by Iwona Tokc-Wilde & filed under Career. Turning up to work ill or working late is usually nothing but counter-productive. The CIPD’s 2018 Health and Well-being at Work report shows that 86% of organisations observed “presenteeism” among their workforce last year, compared to 72% in 2016 and just 26% in 2010. “The term ‘presenteeism’ was originally used to describe the issue of employees coming into work while not physically or mentally well, instead of staying at home and recuperating,” says Steve Thompson, managing director at Forward Role Recruitment. The term now also covers employees staying in the office longer than required to prove they work hard. Often, however, they are merely putting in face time without doing anything productive. The pressure’s on Productivity and performance consultant Abigail Ireland says “face time” is still a big issue in the UK: “The old school approach to management requires staff to show commitment and good work ethic by getting to work early and leaving late.” In fact, according to a survey by Totaljobs, as many as 45% of accountants feel pressure to work overtime, worrying their boss or colleagues might think they aren’t working hard enough if they leave on time. Bosses set the tone for this kind of work culture. “If the staff see their managers – and peers – staying late every day, they’re likely to be doing the same for fear of job security and concerns about career progression,” Ireland says. Similarly, people feel under pressure to come to work when ill. Bupa’s research shows that 64% of UK employees have done so in the last twelve months, and that nearly a third have decided to “soldier on” against medical advice. Mike Blake, wellbeing lead at business performance consultancy Willis Towers Watson says that more than half of those who do take their doctor’s advice to stay at home decide to return to work before they have fully recovered. “Our research suggests that many organisations have negative attitudes – either perceived or real – towards sick leave.” 45% of accountants feel pressure to work overtime The culture of ‘busy’ Willis Towers Watson’s research also shows that people tend to turn up for work when unwell if they worry about letting their colleagues down, and if they are concerned about their workload and deadlines. Ireland says this happens when people are made to feel they are irreplaceable and that the office will fall apart without them. “Over recent years, the practice of downsizing and overloading existing employees with more responsibilities has exacerbated this sense of dependency.” The technology fuels presenteeism, too. “Email and instant chat channels encourage an unhealthy addiction to immediate responses and it’s now perfectly normal for staff to always be ‘on’, checking emails after hours and even on holiday,” says Ireland. Flexible and remote working can also compound the problem. “With increasing workloads, many employees struggle to effectively manage the blurred boundaries between work and personal time,” Ireland says. A vicious circle While coming into the office with a minor ailment isn’t likely to affect someone’s ability to do their job properly, attending work with a more serious illness should be out of the question. “It affects staff morale, productivity and engagement levels,” says Blake. He adds: “It also delays recovery, increasing the chances of a prolonged illness, and puts others at risk of catching the illness.” The knock-on effect on others mustn’t be underestimated. “A loss of morale can often be as infectious as a cold,” says Thompson. “Also, if one of your staff passes on the illness, you will see reduced productivity across the board.” Working all hours is equally counter-productive. Ireland says: “It doesn’t prove anything about an individual’s true performance, output or quality of work. Instead, it’s a vicious cycle that creates more work and more stress, impacting relationships, weight, heart health and mental clarity. When people lose their sense of work/life balance and struggle to switch off, they can’t get quality sleep. This leads to tiredness, low energy, low creativity, irritability, poor focus and mistakes.” Thompson points out that presenteeism can actually become more expensive for a business than other employee health-related costs. Put a lid on it It’s clear that presenteeism is a threat to employee wellbeing, and that working long hours doesn’t always bear good results. So what can you do to combat presenteeism among your staff? First and foremost, lead by example and go home at a decent time, encouraging others to do the same. “Make sure your staff know that quality of output is more important than hours spent at the desk and that leaving work on time actually shows that they are getting the job done in less time,” says Ireland. At the same time, remember that everyone has their own working style and personal circumstances to manage. Ireland says: “Some people are night owls while others are morning larks. Give them permission to work when they can perform at their best. If you trust them to deliver results, the hours worked should be irrelevant.” It should go without saying, but don’t set them unrealistic deadlines. “Be reasonable and you will avoid ‘firefighting’ behaviour,” says Ireland. Your staff must also be reassured that it’s really ok to take sick leave and to stay at home until they are fully recovered. “Keep in touch during their absence ensuring that they don’t feel pressured to come back to work too soon,” says Blake.
Meet the mentor: Sacha Romanovitch CEO Grant Thornton Posted 10/08/2018 by Loulla Smith & filed under Inspiring stories. Unsure of his next steps, student Craig Blakemore seeks advice from one of accountancy’s most inspiring leaders, Sacha Romanovitch. Craig Blakemore has wanted to be an accountant since he was 16 but never had the confidence to go for it; he lost his hearing at a young age, leaving him feeling very unsure of himself. The turning point was when Craig became a father for the first time. His wife persuaded him to start wearing hearing aids. With his confidence boosted, he decided to make the move into accountancy. He’s currently working on his AAT Professional Diploma in Accounting and considering his next move. Sacha Romanovitch wanted to be a forensic scientist when she was at university, before considering moving into the fashion industry. But her career path changed when she discovered she wanted to learn how to run a business. Now she’s the first female CEO of a major UK accounting firm. How do you make the leap into your first accounting role? Craig: I’m aware that, once I make the leap, I’ll have to start at the entry level and probably lose £10,000 from my salary, but I don’t want to limit my boys’ enjoyment so I’m using the opportunity now to do some overtime. Sacha: We’ve been doing work on financial inclusion at the moment, and one thing we’ve discovered is that it makes a massive difference to people’s resilience if they manage to save even two months’ salary. With your goal of saving as much as you can, having that buffer will mean that, if your salary comes down, it won’t knock your life off track. Have you looked into getting an apprenticeship? Craig: I saw apprenticeships as being more for school-leavers; I wasn’t aware they were for anybody. Sacha: We have people of all ages doing the apprenticeship scheme. What’s great is what you’re discovering now: that at any age you can say the time is right to pursue what you want to do. Last year, we had someone who was a policeman retraining with us as an accountant. A lot of firms have worked on how to provide paths that don’t pigeonhole people and that give them opportunities to step into a new career at any stage. How would I go about gaining experience? Craig: I’ve been emailing a few bookkeeping companies to see if I can get some voluntary work but I haven’t been successful so far. Do I just keep emailing or do I go to their front door and ask to have a chat with someone? Sacha: There are brilliant networks through AAT where you get to meet people and learn from them. Find a network of people who have taken the same route as you or who are in businesses that are actively reaching out to get to students. That can be more powerful than people realise, because often you stand out when you make that human connection. And it can be quite demoralising sending lots and lots of emails and not getting responses. Craig: I started AAT Level 2 about two years ago and it concerns me that, because I’m not working in the industry, that knowledge is going to slowly filter out before I get my accounting job. Sacha: Some of it is a bit like riding a bicycle. But I think you’ve got a stronger proposition than you realise. For businesses, there’s nothing better than someone who wants to grow and develop themselves and who is interested in finding ways to do that. What challenges have you faced? Craig: My job hasn’t really changed in 15 years. What challenges did you face with your career change and how did you overcome them? Sacha: When I was coming up to thinking about partnership in the firm, I had a few changes in my personal life that really made me think: “What do I want to do with my life?” At that point, I did what a lot of people probably thought was crazy. I took a sabbatical, sold my flat, got rid of pretty much everything and went travelling for a year. And that is what has instilled me with a real sense of purpose. After having gone on the conveyor belt and done all the things I was expected to do, I was suddenly stepping off and coming back because it was what I was choosing to do. That’s sort of the step you’re going through. You’ve got everything working perfectly well but there’s something in you that says: “I think there’s something more that I want to be part of.” I can see your eyes light up when you’re talking about accountancy, and I can only encourage you to follow that. This article first appeared in our Autumn 2018 issue of 20 magazine.
The benefits of being an AAT accredited employer Posted 10/05/2018 by Sophie Cross & filed under Employers, Run your business, Students. The AAT accreditation scheme recognises employers who support their finance staff with AAT training and membership, and ongoing professional development. Sophie Cross interviewed with Maureen Jacobs Chartered FCIPD, HR Manager at Menzies to find out about the training they provide their staff, and the benefits of being an accredited employer. AAT membership and training Out of our permanent base of staff we have 18 students currently undergoing AAT training, either at Professional Diploma (Level 4) or the Advanced Diploma/Professional Diploma (Level 3/4) fast track qualification, which we’ve been transferring our Advanced Diploma students on to. We have an additional five employees who are already AAT-qualified and have now achieved full AAT member status at MAAT, and another two with FMAAT. We’ve recently had another four trainees joining us who will be beginning their Advanced Diploma/Professional Diploma, combined fast track AAT qualification, under the apprenticeship programme. This is a wonderful way to utilise the apprenticeship levy for AAT trainees. This means they will come away with an apprenticeship and an accountancy qualification – gaining the people and employability skills from the apprenticeship, and the technical side from the AAT – so they’ll have the whole package. The benefits of AAT qualifications for employees AAT is a great foundation if [employees] want to go on and achieve additional qualifications, for example, ACA under ICAEW to become a chartered accountant or ACCA, which is more suited to our Outsourcing employees. They might be happy to stay as AAT. Often they are school leavers, aged 18 or 19, so it’s really good for them to be getting an accountancy qualification. Even if they don’t go on to something else, they can be a bookkeeper. If they are competent and [willing] we will encourage them to continue studying and we can place them where we have vacancies. As an accredited organisation, our team gets extra support from AAT and our Relationship Manager. Utilising AAT resources AAT is there from day one as part of our trainee’s induction. The trainees use their ‘MyAAT’ logins to access their records, [and make use of] a wide range of resources to help them, including test papers and courses. There’s a huge amount of training there and lots of things they can do to improve their chances of passing their exams and to gain understanding of the modules that they’re going to be taking. We have a dedicated Relationship Manager, Jenny Dack, who is really helpful. We meet regularly and she comes back to us on all our queries and will come in and talk to trainees about what’s available for them. The importance of building a relationship with AAT As an organisation it looks really good to prospective employees and clients for us to be an accredited member of the AAT. It attracts more trainees to come and join us and gives clients more confidence in us. Supporting staff through their studies The trainees get study leave, which we gave them before the Government introduced apprenticeships, but it is also forms part of the apprenticeship programme. The study leave is booked in blocks of weeks and we organise the booking of their training for them. They are allocated paid time to go away and carry out their studying and take the exams. For our permanent employees we offer them sponsorship, funding their AAT courses and exams, and allowing them the study time that they need to fit in around their full-time jobs. This means they can complete the qualification at their own pace. Setting yourself apart from competitors Applicants and prospective clients will often look for accreditation. It demonstrates a high professional standard, corporate social responsibility and our commitment to training. It’s very important to us that our team are all fully trained in order to meet, and hopefully exceed, the expectations of our clients.
MTD six months countdown Posted 10/05/2018 by Brian Palmer & filed under Making Tax Digital. The fighting talk is nearly at an end, while years of political wrangling, and arguments for and against, are ultimately not going to prevent its implementation. That’s right, we are now all but six months away from the first implementation of Making Tax Digital (MTD) – and not a Chequers ‘agreement’ in sight. From 1 April 2019, all VAT registered entities with an annual VAT-able turnover above £85,000, the current compulsory registration threshold, will be mandated to a keep digital record of their VAT transactions, and to file MTD-compliant VAT returns using API enabled software for all VAT return periods commencing after 31 March. Entities with a VAT-able turnover below the threshold are not obliged to change their method of record keeping or to file MTD-compliant VAT returns in this way, but can do so if they so wish. Six months may sound a while away. However, given the looming spectre of Brexit, set to become reality on 29 March, the fact is there isn’t much time left for the 1.2 million affected businesses. Many of these are yet to establish if their current software will be MTD-compatible, or if they don’t already use appropriate software to source a VAT MTD-compliant solution. Update from HMRC Meanwhile the UK’s tax authority isn’t hanging around in its ambition to become the world’s most digitally advanced tax administration. The initial pilot for MTD-VAT began privately as an invitation-only affair in April, with a small select group of businesses and their agents taking part. A range of MTD-compatible products is nearing completion. After a modest start, HMRC has expanded the range and scope of its MTD-functionality to enable a greater range of business types to join the private testing phase. On-board early With confidence growing, it is clear that HMRC is preparing to move into a public, testing phase, where the majority of businesses within the scope of MTD-VAT will be able to on-board (join) early if they wish. Participants will be required to keep a digital record of their VAT transaction and to file MTD-compliant VAT returns using API enabled software. On-boarding early will enable those involved to familiarise themselves with the requirements of the new way of working well ahead of mandation, next April. While most VAT registered entities will be able to on-board at the start of the public testing phase, interestingly, given my earlier Brexit references, those who trade with the EU will not be able to participate at this stage. Understandably, HMRC remains bullish and optimistic about MTD being the right approach for business. Indeed, one of the department’s recent communications talked about taking an ‘agile approach to delivering MTD’ and underlined its ‘commitment to delivering a modern, streamlined, digital service that helps businesses get their tax right.’ I, for one, am convinced that the project will act as a benefit to business in the modern era, and not a scourge. The clock is ticking However, there’s no doubt that while through this move to more or less real-time record keeping MTD should reduce tax errors and help businesses with managing their cash flow, those mandated and agents need to start laying careful foundations if they are to get MTD right for their business. With this in mind, AAT spoke to some 184 of its licenced members to find out whether they are edging towards having a fully MTD-compliant system, so that they can test any pitfalls themselves during the pilot phase. 63% told us they are fully confident they will be ready come 1 April; indeed 31% think they are effectively already prepared. In many cases, of course, this could be because they happen to be with a software provider who has already rolled out their own compliant products and are doing their best to ensure their own clients are sticking with their offering. Are clients ready? Members were less positive about their clients’ readiness. Rough estimates suggested that around 53% of their clients affected by MTD would be in a position to successfully file their returns when the new tax year starts. Part of the frustration has been that some software providers have been slow to get going, leaving tax agents and businesses waiting to see if they were going to deliver a VAT-MTD compliant product. Recently in response to demands from AAT and others, HMRC has published a list of some 50 software products that have successfully filed MTD-compliant VAT returns using non-live data. It looks likely that this list will continue to grow to more like 150 products by next April. Nonetheless, you might not want to stick too much longer; with the expanded pilot phase clearly being an extremely useful tool in ironing out any last minute hiccups. You can access further information about AAT and Making Tax Digital. AAT surveyed 184 of its members via its Green Room survey facility between Monday 24 September and Monday 1 October 2018.
Budget 2018: tax reliefs under scrutiny Posted 10/05/2018 by Andrew Goodall & filed under Brexit, Members. Now that the party conferences are over, what changes to the UK tax landscape can we expect to see in the coming months? It is not yet clear how the government will meet the prime minister’s commitment, announced in the summer, to increase National Health Service funding by £20.5bn a year in real terms by 2023. Theresa May has vowed that a post-Brexit Britain will offer the lowest rate of corporation tax in the G20, and the Conservatives pledged at the 2017 general election not to increase the level of VAT. As Philip Hammond, the chancellor of the exchequer, prepares to deliver his budget on 29 October, tax issues continue to be overshadowed by the wider Brexit controversy. Recent experience suggests that the government is unlikely to try to increase rates of income tax or national insurance contributions. Reviewing tax reliefs AAT has argued that higher investment in public services can be funded without increasing tax rates or public borrowing. The reforms set out in its 4 September report would provide a “simpler, fairer alternative”, and could deliver £27bn in annual savings, AAT said. The recommendations included restricting pension tax relief to 20%, replacing fuel duty with a “pay as you drive” charge, the removal or restriction of certain inheritance tax reliefs, and switching the liability for stamp duty land tax from the buyer to the seller. AAT is not alone in suggesting a review of tax reliefs. While some reliefs may have a positive impact, capital gains tax entrepreneurs’ relief has very little merit, according to Adam Corlett, senior economic analyst at the Resolution Foundation. The question for those seeking extra cash for the NHS is likely to be “what is the least bad tax rise”, Corlett said, adding that the chancellor “needs to take a long, hard look at ER: quite likely the worst tax relief in the UK”. The budget is likely to set out the government’s response to several consultations have addressed aspects of the tax system that require careful consideration rather than quick fixes. Tax professionals have called for any extension of new rules for off-payroll working to the private sector to be delayed. In a consultation on employment status the government undertook to consult further on any significant changes, given that employment status has “wide reaching effects”. A call for evidence on the VAT registration threshold was intended to help the government consider the impact of the current threshold on small businesses. We can also expect the government’s response to a technical consultation on the draft finance bill published in July. Brexit, customs and VAT Regardless of the outcome of the Brexit talks, leaving the European Union will have significant tax consequences, and there is a great deal of uncertainty over changes that may well affect businesses in just six months’ time. May has pledged that the UK will leave the EU customs union. She has undertaken to set out a revised proposal for a “backstop” arrangement intended to ensure that, in the absence of a Brexit agreement, there would be no need for a hard border between Ireland and Northern Ireland. Addressing the Conservative party conference on 3 October, May urged MPs to back the other key elements of her Chequers plan. But reports have suggested that the government is reviewing its proposal for a facilitated customs arrangement (FCA) with the EU. The government’s July 2018 white paper said the FCA would remove the need for customs checks and controls between the UK and the EU “as if they were a combined customs territory”. The UK would apply the EU’s tariffs on goods intended for the EU, and apply UK tariffs for goods intended for the UK. But Michel Barnier, the EU’s chief negotiator, has said the EU cannot delegate protection of its customs union, or collection of its customs revenue, to a non-EU country. Preparing for no-deal The current impasse has made a no-deal Brexit more likely. The government has issued technical notices advising individuals and businesses on how to prepare for a no-deal scenario. These include guidance on trading with the EU. HM Revenue & Customs wrote in September to 145,000 VAT-registered businesses that trade only with EU countries, setting out changes that would affect them from April 2019 in a no-deal Brexit. It is estimated that a further 100,000 businesses, not registered for VAT, would also be affected. Reflecting the lack of progress on the Irish border issue, HMRC said it would update its guidance on customs arrangements “in due course”. Business groups have warned of the possibility of serious disruption following a no-deal Brexit. Tax professionals have pointed out that, from April 2019, many businesses would have to deal with the introduction of both new customs procedures and quarterly reporting under the Making Tax Digital for VAT programme. Hammond was expected to deliver the budget in late November, but brought it forward to avoid the aftermath of negotiations – now expected to run to mid-November – on an EU withdrawal agreement. Businesses will be looking for signs of an end to the current, damaging uncertainty.
Journeying from accountant to Finance Director Posted 10/04/2018 by Mark Blayney Stuart & filed under Inspiring stories, Students. How can you climb up to a top job in finance? The journey from apprentice to Financial Director is a challenging one, but there are several things you can do to set yourself apart. Mike Copping, FMAAT spoke to Mark Blayney Stuart about how determination and focus – plus a few unconventional decisions – led to his rise to the top. How did you begin your career? At school I wanted to be a lawyer, but when I went to sixth-form college I discovered many other people thought the same and the law course was actually full! I started five ‘A’ levels and found accountancy the most interesting; but unfortunately I absolutely hated sixth form college and dropped out after two weeks. Cue lots of criticism from family members who thought I’d made the worst decision of my life. I found an advert for a trainee accountant role that offered sponsorship for professional qualifications. It felt vital to get this and I felt that it would change my life. Tell us about your first professional role. It was for NICEIC (National Inspection Council for Electrical Installation Contracting); they regulate electricians. I was there as a trainee accountant, going to night school two nights a week to study for my AAT qualification and working full time. To begin with I was cycling to and from work because I was too young for my driving test. I gave it everything I had, and ended up winning student of the year in the final year. There was a big ceremony, cuttings in the newspaper – incredibly memorable. What strategic decisions did you make early in your career? I changed from industry into private practice, some time after completing my AAT studies. I’d been in my first company for nearly four years and it was time for a change and to broaden my skills. I could have gone to work as an audit junior in a large firm – it would have looked great on my CV – but I decided to enter the small practice world, and be part of an owner-managed business. It’s definitely a decision that worked out well as it’s given me rounded experience and I’ve seen large company finance, small company finance and the world of practice including tax, statutory accounts and audit. What’s your advice for others climbing the ladder? Say yes. I said yes to everything! By this I mean say yes to all of the challenges and opportunities thrown your way in the workplace. Avoid the inner voice that can say things like “it’s too difficult,” or other people saying “that’s not your job.” Show an interest in the businesses that you work for. Ask questions and try to learn what drives value in the business. The days of being a “bean counter” are well behind us and the role of accountants has changed dramatically, even over the course of my career. My other key piece of advice is to treat everyone outside of the finance department as though they’re a client that you’re providing a service to. Find out where you can add value to what they’re doing day-to-day. If you can do that, it makes you invaluable and will fuel your rise to the top. Avoid the inner voice that can say things like “it’s too difficult What are the pitfalls to avoid? I’ve always put work ahead of everything, and even now I put my clients first above all else. At times this has been done at my own expense and I’ve missed or shortened holidays. The answer is to find a way through that and create a system to balance everything – that’s something I definitely would have done with hindsight. What you would tell your 20-year-old self, if you could? I’d say keep going – it is worth it in the end! Long days, late nights and missed time with my friends was hard, and still is. However, watching a strategy that I’ve been involved with pay dividends in a business, or seeing an owner grow their business to the point where they need to hire more staff or move to larger premises is so rewarding. I’d also recommend to the young version of me the idea of keeping a diary. I’ve worked with some incredible businesses and people and I’d really enjoy one day being able to look back and reading about some of the days I’ve had! How do you cope with stress? I work with high-growth SMEs and managing and forecasting cash flow is always a critical pressure point. Being the person ultimately responsible for making sure 150-200 households get paid every month and can put food on their table is definitely stressful. When you know directors and owners personally, they’re real people with real kids. This does add pressure as you’re in at the deep end; if things don’t go well there are real consequences. Fortunately I’ve always coped with pressure pretty well which is a great blessing. I met a Finance Manager recently who was struck by how laid-back my approach as a Finance Director was. I had to admit that it’s partly an act! I care about every business I work with and inspiring confidence as a leader is critical – you can’t be seen to wobble. What’s the value of hard skills, and how do you learn around the job? This is a really important part of how I got to where I got to, and a big ongoing responsibility too. I read all the time – in lunch breaks, on trains, on buses, in bed at night. I make use of LinkedIn and Twitter to follow relevant media outlets such as Bloomberg, Business Insider and AccountingWEB, to name but a few – as well as AAT Comment of course! I love podcasts, radio shows and TED talks and am always on the lookout for new ones. Life is an education; you should never stop learning. I used to ring-fence half a day per week to self-study or attend a training course; but I do find I struggle for time nowadays. And finally, what’s the importance of a soft skills set? I genuinely believe that you can get to a point whereby you have all the professional qualifications and professional memberships that you need, you have many years of experience and you’ve made it up the career ladder. However – attitude and soft skills are what make the difference between a very good finance manager or financial controller, compared with those who make it all the way to FD. The ability to cope with, and adapt to, change – coupled with the ability to communicate with non-financial colleagues and add value to the wider business. Those elements make up the key that unlocks the top job in finance.
The ultimate crash course in Excel – part 4 Posted 10/03/2018 by Filtered & filed under Excel tips. Please enable cookies in your browser to watch the videos. Note: we are currently experiencing difficulties with the videos in this article, but are working to resolve it ASAP. Thanks for your patience. Excel tips: Ultimate crash course series Part 1 – Copy, cut & paste in Excel Part 2 – Conditional formatting in Excel Part 3 – Pivot Tables in Excel Part 4 – Mathematical Formulas in Excel Part 5 – Excel formatting guide for a great looking spreadsheet Part 6 – Essential Excel formulas like vlookup Part 7 – Filtering your data in Excel Maths… Wait, before you run for the hills! There’s no way around it: you can’t get what you want out of Microsoft Excel without a basic understanding of Maths. Luckily, that’s what today’s lesson is about. At the heart of any Excel spreadsheet are the numbers within the data. Using basic maths functions to manipulate those numbers is one capability that makes Excel so powerful. Calculations can be entered into the Excel formula bar or into a cell. It’s also possible to build a calculation in Excel by using the values in multiple cells. All functions and formulae in Excel start a calculation with the = sign. You can type the calculation you want to perform directly into the cell or the formula bar and when you press Enter the answer will show in the cell. Another option is to use multiple cells to construct the formulae, as we see here (where cell A1 (or 87) plus cell A2 (or 16) equals cell A3 (or 103)): Precedence (+ – * / ) When working with numbers and calculations in Excel, operators specify the type of calculation you wish to perform. The usual rules for the order of calculations apply in Excel, but you can change this order by using parentheses in your formula. In order to perform the basic mathematical operations such as addition, subtraction, multiplication, or division we use the following arithmetic operators: + (plus sign) for addition – (minus sign) for subtraction * (asterisk) for multiplication / (forward slash) for division The following video shows these operators in action. Excel interprets the = (equals) sign as indicating a calculation to be performed and calculates according to the operators indicated from left to right. To change the order in which Excel performs the calculations, enclose in parentheses the part of the formula to be calculated first. For example if you have a formula: =6-3*4 You can use parentheses to make sure the 6-3 is calculated before the multiplication: =(6-3)*4 Powers You can use a basic formula to create calculation exponents in Excel. To do so, use the = sign and the ^ (caret) symbol: =3^2 OR =32^10 If the result of your calculation is very long, Excel will show the answer in scientific notation (as seen below): Practice makes perfect, so download the exercise below and give it a go: Download Practice Document Maths formulas There are specific formulas that will perform maths functions in Excel. The first is SUM which adds up a group of cells: Counting Counting entries in spreadsheets can be done in a similar way to ‘summing’ them. There are a few subtleties which we cover here. Counting numbers The COUNT() function counts the number of cells that contain numbers. That includes cells that Excel recognises as date-format. The function won’t count cells that contain text. Example: In the sheet below, the formula in A1 is =COUNT(C1:H3) This counts how many of the 18 cells (three rows by six columns) that are specified contain a number – so the answer is 6. As with SUM(), COUNT() works with any number of inputs, and those inputs can be ranges and the Status Bar can be used to COUNT() the number of selected cells containing numbers. However, on the Status Bar COUNT will count the number of cells containing numbers or text. To count just numbers on the Status Bar, we need to customise it to ‘Numerical Count’. Take care when using COUNT(). If numbers are forced to be interpreted as text (by specifying text format before entering a number for example), they will not be counted. We need Excel actively to convert the content to a number for COUNT() to recognise the entries as numbers—simply changing the cell format from Text to Number won’t rectify the problem: Counting anything at all The COUNTA() function counts the number of cells that have any content. Replacing COUNT() with COUNTA() in the example above means the two cells with text content are also counted: Example: The formula in A1 is now =COUNTA(C1:H3) This counts how many of the 18 cells that are specified as inputs to the function contain any entry – so the answer is 9. Note: cells containing only spaces (so they appear blank) will still be counted by COUNTA(). Absolute references The final, and very important function you need to understand in Excel when performing maths calculations are absolute references, this video explains it all: There we have it – your crash course in Excel maths. That wasn’t so painful was it? Again, there are two more downloadable exercises for you to practice with below, enjoy! Totaling a column and copying the formula to total another column: Download Practice Document Adding a formula to count cells (containing numbers) in a range; then a formula for counting cells with any contents. Download Practice Document Next up in part 5 of our series, we’ll show you how to format your spreadsheet to make sure your data is clearly displayed AAT students and professional members can access a wide range of Excel resources and training.