P11D reporting: how to avoid resubmissions of expenses and benefits

Posted by & filed under Pensions and payroll.

We are now a couple of months into the new tax year, but as yet, we have not completely finished with the old.

Still on the ‘To do’ list is the completion and successful submission of the P11D and P11D(b) form, listing all expenses and benefits made to employees during the tax year. With only a few weeks left before the deadline it is time to complete and review the returns, making sure that all information is complete and correct before submitting to HMRC.

Below is a quick whizz around the mechanics of submitting the reports and paying the NIC (national insurance contribution) liability.

Completion of P11D

The P11D and P11D(b) is due 6 July. To miss this deadline would be to incur potentially heavy penalties. To avoid any delays and subsequent penalties, below are some typical errors, the changes and penalties involved in the P11D process.

Typical errors

One of the most popular benefits to be received by an employee is a company car, and it is here that errors occur. The main errors are to do with fuel, accessories provided, CO2 emissions and capital contributions made by the employee. Another mistake is incorrect dates when the car was, or was not available, or unnecessarily completing the ‘from’ and ‘to’ date boxes. HMRC assumes that the vehicle was available all year unless told otherwise.

Any amendments, or errors could mean missing the deadline of 6 July and therefore incur penalties as below.

Key changes

Due to recent legislation changes several field tables in the P11D have been amended for the 2017-18 tax year. The key changes are that now boxes need to be completed for ‘Amount Foregone’ and ‘or Relevant Amount’ These are a result of the optional remuneration arrangement changes brought in April 2017.

This means that the payroller must accurately complete the information in line with the legislative changes. To help with this HMRC have updated the relevant worksheets.

Other changes have been made regarding passenger payments reporting. Previously they were to be entered in Box E, but Box E is now used for the reporting of mileage allowance payments. Passenger payment must now be entered in Box M, on the second line (the first is now used for Class 1A NICs).

Submission of P11D

The P11D can be submitted to HMRC in one of two ways:

  • Online filing (which will check for, and identify, common errors, meaning less risk of rejection, less risk of delay and consequently less chance of incurring penalties)
  • Paper format. Whether submitting or resubmitting a return it should be sent to

P11D Support Team

BP1 102

HM Revenue and Customs

Department 1250

Newcastle-upon-Tyne

N398 1ZZ

Completion of P11D(b)

This is the return for Class 1A NICs due. It also includes the employer’s declaration that all expenses and benefits have been accounted for. Only one P11D(b) is required for each PAYE reference.

If there are no Class 1A NICs to report then no return needs to be filed. HMRC may request a submission of a P11D(b), in which case confirmation that no Class 1A NICs are due can be done via the online declaration ‘No return of Class 1A NICs’ located https://bit.ly/2ge4VJR

If a paper submission is preferred then this must be done on an original document with an original signature as HMRC will not accept any other type.

If the paper submission is for a resubmission then the P11D must show all the original expenses and benefits, not just the amended ones, which could mean a total re-write.

To help calculate the Class 1A NIC liability the P11D is colour-coded. The colour brown denotes the expenses and benefits that incur a Class 1A NIC liability, and the colour blue those expenses and benefits that do not.

Paying Class 1A NICs

Now to the mechanics of actual payment of the NIC liability. When paying the normal accounts office reference must be quoted followed by ‘1813’. The ‘18’ stands for the tax year 2017-18, and ‘13’ to ensure that the correct allocation of funds happens. Without it HMRC may not be aware that the payment was made.

Penalties

The penalties are comprehensive and act as a deterrent to non-compliance. As a reminder of the potential financial cost:

Failure to submit P11D return by due date Penalty ≤£300 and daily penalty ≤£60 per day, per return for as long as return outstanding
Incorrect P11D return ≤£3,000 per return
Failure to submit P11D(b) return by due date First 12 months of lateness – £100 per month, or part month, for each batch or part batch, of 50 earners for who Class 1A NICs is payable

Over 12 months of lateness – amount not exceeding the total of unpaid Class1A NICs due at 19 July
Incorrect P11D(b) return Penalty not exceeding the difference between Class 1A NICs returned and the Class 1A NICs that were due

So, there you have it. A quick update and reminder of what is left to be completed before the 2017-18 tax year is finally put to bed.

To sum up the process: Complete, submit and relax.

Positive influence: making accountancy accessible in Myanmar 

Posted by & filed under News, Students.

Pursing aspirations of becoming an accountant, Khin Moh Moh from Myanmar decided to study AAT to help realise her professional dreams, by opening up new pathways to education. 

As her Southeast Asian homeland continues to open up to the global business community after decades of international isolation, Khin is one of a wave of young professionals seeking the modern, portable qualifications that will open the door to new opportunities.

AAT qualifications are still in their infancy in Myanmar, having been introduced just two years ago, but Khin was quick to seize the chance to educate herself through levels one to three to achieve her ambition of becoming a senior accountant in an international company.

“When I was successful in AAT[Advanced Diploma], I gained confidence in myself to take future steps, she said.” “My dream is to become a successful business woman.”

Planning your future

Khin has already mapped out the path she would like to take.

“Before I work in my own practice, I want to have a good career like a senior or chief accountant in a foreign company. If I get a chance, I want to work in the UK,” Khin added. “I think AAT will help me to achieve my dream.”

Khin comes from Kalay in upper Myanmar, where her family runs a business selling petroleum, but she now lives in a hostel in the capital, Yangon, to continue her studies.

 

She admits that studying for the new qualification in a foreign language has had its challenges. 

“Accounting techniques were easy for me, but Ethics and Management Accounting were not. I practiced assiduously and my teacher gave me support,” she said.

Studying in English required a lot of perseverance, added Khin. “I follow my teacher’s advice. He makes me read English business journals and magazines so I am good at reading,” she said.

“Now I’m learning how to write accounting management reports. My advice to others is that practice is the best way to learn. They should read many books, take an English class and do homework.”

Making personal sacrifices for an education

Choosing to study AAT has also required personal sacrifice as Khin rarely manages to see her family. “The biggest part of living in Yangon alone is that I am apart from my family. I usually go back to my hometown once a year,” she said, adding that her family have been supportive of her career ambitions.

Now she works as an AAT tutor herself, helping her friends with their studies. “This is my first step after finishing AAT [Advanced Diploma],” she said. Khin believes the AAT qualifications will in future become a popular choice for Myanmar students.

The potential of Myanmar

For many years Myanmar’s military junta operated under severe international sanctions, but with the advent of democratic elections in 2015 that brought Aung San Suu Kyi to power, foreign companies were quick to see the potential of the country of 53 million and are starting to reinvest.

Domestically it is rapidly becoming a tourist magnet, allowing the country to build up its infrastructure through hotels, business centres and shopping malls.

But with that change comes the need to modernise and reform its commercial sectors, including in the field of accountancy, where previously the state played a large role and accountants did not have easy access to international developments in professional standards.

Entering the modern business era with AAT

AAT has been at the forefront of assisting students and entrepreneurs to update their qualifications to an international level, and to enter the modern business era.

“We currently have over 500 learners in Myanmar alone who are currently going for their AAT qualification,” said Justin Kyriakou, AAT’s international Development Manager.

AAT first entered Myanmar about two years ago following a discussion with an entrepreneurial local training provider who thought it was the ideal time to set up shop there.

“The qualifications being taken by the local Burmese were not sufficient for the market. So not knowing Myanmar that well we decided to work with that provider and see how he got on, monitor his progress and support him as much as we could,” explained Kyriakou.

“It became very quickly apparent that he was being very successful and there appeared to be a real appetite for the AAT qualification[s],” he added.

Meeting the needs of the people

The appeal lay in the qualification’s ability to provide people with the skills they were specifically looking for.

“Also because of the computer-based testing model of AAT, it meant that local Burmese who wanted to take assessments weren’t having to sit down and write three hour papers, they were just being tested on technical competences. It was suited very well to the Burmese market,” said Kyriakou.

The pricing of the qualifications has been adjusted to reflect the still relatively low incomes in Myanmar and, anecdotally, Kyriakou has noticed that the vast majority of students so far are female school leavers, with the remainder being employees who want to upskill and get a formal qualification.

Despite the challenges of doing the course in English, students welcomed the opportunity to have a foreign qualification, he said.

“Some of them want to experience working abroad, some of them want to increase the skill sets within the Myanmar population so that they can trade internationally. The UK, English-language qualification for finance sits very well within the country.”

Internet coverage can also be a problem outside of the main urban centres, but Kyriakou sees a huge chance for growth in Myanmar.

“What we have found is, when we’ve been on the ground, the Burmese we are working with are very keen to do the qualification,” he said. “We have been able to quickly build trusting relationships in Myanmar and as a result things have moved quickly.”

You’ve got the qualification, now what?

Posted by & filed under Career.

What links Itzhak Stern, Frank Wilson and Josiah Wedgwood? Accountancy.

Stern was the accountant who helped Jews employed by Oscar Schindler survive the Holocaust. Wilson’s forensic accountancy skills resulted in the conviction of gangster Al Capone. Josiah Wedgwood’s cost accountancy expertise saved his family’s pottery firm from bankruptcy.

With a suitable accountancy qualification, the world opens up to you – all sectors, from the media to the voluntary sector need accountants.

A recent report from UK recruitment firm Robert Half found that a quarter of all UK chief executives of FTSE 100 companies are accountants. What’s more, if your dream is to one day run your own business then a background in accountancy will stand you in good stead.

Accountancy – the world is your oyster

Five years ago Kristina Clark landed her dream job in the defence industry thanks in part to her AAT qualification. As an Assistant Accountant at General Dynamics UK, her work encompasses month-end reporting, account reconciliations, exchange rate requests, Treasury cover – “and everything in between” she adds. When she was interviewed for the role, she was a newly qualified MAAT and was advised that this was part of the reason she was shortlisted.

Now an FMAAT, Clark says: “People wouldn’t straight away think of an accounts department in the defence industry but it’s a really fascinating place to work. Accountancy doesn’t have to mean Practice work. I have friends working in the building industry, the arts and even wedding dress manufacture.”

Collette Huckle, regional director at Reed Accountancy agrees: “As well as traditional accountancy, there are also opportunities in what can be described as “unconventional accounting” which includes forensic auditing, environmental accounting, IT accounting, education and research. There can even be a touch of Hollywood in accounting as there are a variety of exciting opportunities in the entertainment industry, such as bookkeeping for artists, bands and film makers”.

A quarter of all UK chief executives of FTSE 100 companies are accountants

Out of Africa

For 10 years Sylvia Bourhill worked for a missionary organisation in West Africa overseeing the funds coming in from overseas donors and making sure these donors were sent detailed reports. Back in the UK, Sylvia married in 1999 and wanted to find a career she could combine with looking after a baby at home. “I did a bit of general admin work but discovered I really enjoyed the bookkeeping side: I like to bring order out of chaos”.

She became AAT qualified in 2011 – by which time her business Another answer had taken off enough to need an office. By 2015, the business had grown so much they needed new premises – she now has four part-time bookkeepers including her husband, and is looking for another one. Bourhill is keen to point out the flexibility her chosen profession offers her. “I couldn’t face being employed in a nine to five after my experiences in Africa, so my own business was the only way to go”.

The sky’s the limit

One good way of trying out different sectors is to do maternity cover: after a year’s work you should know whether you’re suited to that type of business.

Huckle points out: “It is evident that having an accounting qualification and experience builds a great foundation for your career and gives a number of transferable skills should you wish to move on to other things. Finance is the hub of any business, especially for a commercial business which means accounting professionals are exposed to all areas of the business. There is also a growing demand for commercial accountants who have strong analytical skill to help in various aspects of the business”.

And she adds: “There are a number of employers who ask for an accountancy qualification as part of the recruitment brief for senior roles and having one can enable a move up the ranks. There is also the added bonus that if candidates are moving outside the structure of accountancy firms and into industries such as entertainment, arts or sport which are not so familiar with the workings of accountancy, then a qualification works like an international currency that is easily recognised as a mark of quality by all”.

So now you’ve got the qualification, don’t hold you back from achieving all you want from your career!

Payment in lieu of notice – to tax or not to tax

Posted by & filed under Pensions and payroll.

The term ‘payment in lieu of notice’ or ‘PILON’ covers a range of payments made on terminating employment.

They are made in a variety of situations and prior to 6 April 2018 had tax implications for employee and employer that need to be considered.

From 6 April 2018 the distinction between contractual, non-contractual, implied, reserved right, customary, automatic, exemption for payments relating to foreign service and other forms of PILON has also been removed. All PILON is now taxable and subject to national insurance contributions.

This should make the calculation of tax and national insurance contributions (NICs) on a termination package much easier, but, as usual, there is always something to complicate matters. It may be that there are benefits attached to the employment contract, or that the employer included a restrictive clause in the contract. These would have be considered separately to ensure compliance with legislation.

So, to ensure that the amount of tax and NICs paid are in line with current legislation below are some of the issues that may need consideration.

Issues under consideration

When calculating the tax and national insurance contributions (NICs) due on a total termination package the following need to be kept in mind

  • Any payment(s) must be correctly allocated to the appropriate section of Income Tax (Earnings and Pensions) Act (ITEPA). Some may be wholly or partially exempt from tax and NICs.
  • All cash payments chargeable to tax under sections 62, 225 or 393 ITEPA are considered earnings. These sections cover earnings, restrictive undertakings and benefits provided under a non-approved benefits scheme.
  • Lump sum payments from an employer-financed benefit scheme may be wholly or partially chargeable to tax (section 394)
  • Non-cash benefits may also be chargeable to tax (section 401).
  • A payment that falls within section 401 ITEPA is currently not liable to NICs. However, from April 2019 for amounts over £30,000 there may be a charge for employer NICs.
  • Amounts over £30,000 will be subject to income tax, and this includes amounts received over more than one year if it is part of the termination package.
  • Time spent working abroad is no longer exempt.

Once these points have been considered then the PILON amount can be determined. In an earlier blog the definitions and calculation included in the new rules were outlined. One of the new definitions was the ‘trigger date’.

Trigger date

This term applies from 6 April 2018 and is defined as

“a) if the termination is not a notice case, the last day of the employments, and

b) if the termination is a notice case, the day the notice is given”

The trigger date is used to:

  • identify the last pay period
  • Establish the ‘earliest termination date’ which then can be used to identify the number of days in the ‘post-employment notice period’, and the amount of PILON due.

Here is an example on how PILON may work in practise.

Once the basic pay is eliminated the rest of the termination payment falls under the £30,000 statutory exemption.

In summary

When calculating PILON or other termination payments the trigger date must be identified in order to ascertain which payments are subject to tax and NICs and which are not. So access to the employment contract, and notice of termination by the employer is of vital importance to avoid any mistakes or repercussions.

And finally, prepare the employer now for the liability for NICs from 6 April 2019. Forewarned means a happy employer.

How to deal with clients’ late payments

Posted by & filed under Run your business.

For bookkeepers, chasing late payments can be an onerous task.

According to accounting software provider Sage, 17% of all payments to UK-based small to medium-sized businesses arrive after the due date. As a result, SMEs typically spend 15 days a year chasing late payments.

Whether you are a sole trader, or an employee at a big company, part of your role as a bookkeeper is ensuring delayed payments are dealt with quickly and efficiently.

So what can you do to encourage clients to pay on time, and what steps can you take if a company or individual refuses to pay? Here are some of the options available.

Know your clients

A reliable means of contacting a client is essential when dealing with late payments. So make sure you have up-to-date contact details for everyone on your books.

Antonio Scamardella, an accountant at AJSD Group Limited, said: “Always keep your client database updated with their current addresses, emails and phone numbers.”

To protect against delayed payments, it can also be worth getting a credit report on a company before taking it on as a client. The information in this report will help you to work out whether or not the business is likely to pay on time.

Enhance your invoicing process

A well-managed invoicing system is also vital to avoiding late payments. Good practice includes sending out invoices as early as possible, and stating payment terms clearly and concisely in all correspondence.

Alessandra Parsons, owner at AKay Bookkeeping, specialises in bookkeeping for creative businesses. She uses Wave accounting software to manage her invoicing.

“Wave allows me to send both one-off and recurring invoices that offer clients the option of paying via online payment processor Stripe or by bank transfer,” Parsons said. “The software also is able to send reminders for any later payments, which is very time efficient.”

She believes that giving clients multiple payment options helps to prevent payments becoming overdue. “I have one client who is set up to pay via Go Cardless, which works like a direct debit so we both know that the payment will be made on a set date,” Parsons said. “Such tools are great for avoiding late payments.”

Send out regular reminders

Not wanting, or being unable, to pay are not the only reasons clients miss payment deadlines. Sometimes, they simply forget. Either way, sending out regular reminders will improve your chances of receiving payments on time.

Try sending a friendly email just before the due date, and follow up with a more formal reminder if the date has passed. “Make sure you do your bookkeeping and payment management on a regular basis, so you can keep on top of your business administration,” Parsons said.

Picking up the phone can also be a good way to elicit a speedy response once payments are overdue. Scamardella said: “I don’t spend much time chasing debtor balances.

“However, it is my first task in the morning. I switch on my computer to look at balances that are outstanding and I get on the phone.”

Set advantageous payment terms

In this digital age, there is no need to offer clients 30 days or more to pay an invoice. In some circumstances, you can even ask for payment in advance.

“As an accountant, the best way to avoid late payments is to ask clients to pay in advance,” Scamardella said. “We don’t work like this, but I know many chartered accountants ask for their fees to be paid before submitting accounts to Companies House.”

His other tips include sending late payment demand notices to tardy clients’ residential addresses, and using interest and penalty charges to make it less attractive for them to miss payment dates.

Giving clients multiple payment options helps to prevent payments becoming overdue

Penalise clients who fail to pay

Introducing overdue payment fees or interest charges – and discounts for those who pay early – can be a very effective way of reducing the time you have spend chasing payments.

Just be sure to clearly state the details of any such fees both in your contract, if you have one, and all invoices you send out. Putting such charges in place does not mean you always have to impose them. If, for example, you have a good client who misses one payment date, waiving the fee can help to further strengthen your relationship.

“My terms and conditions do say penalties will be issued for late payments, but I haven’t applied any yet,” Parsons said. “I think I would apply penalties if the reminder invoice didn’t get paid, though.”

Understand your rights

Even if you do not have late payment fees in place, you can officially claim interest and debt recovery costs once a client is 60 days’ late with payment. The “statutory interest” rate set by the government for business transaction is Bank of England Base Rate plus 8%.

Late payment laws also allow companies to charge fixed sums of £40 on up to £999.99, £50 on between £1,000 and £9,999.99, and £100 on £10,000 or more.

The is plenty of information available on making a “statutory demand”, and how to proceed if that too is ignored.

HMRC publishes its latest UK Tax Gap estimate

Posted by & filed under News.

Earlier today HMRC published its 2016/17 UK Tax Gap estimate.

At 5.7% of the estimated total tax due, the gap has flatlined (also 5.7% in 2015/16).

The amount attributed to small business is down from £14.1bn (previously stated as being £15.5bn) in 2015/16 to £13.7bn.

What is the tax gap?

The tax gap seeks to monitor an estimate of the difference between the amount of tax due and that which is actually collected.

It is calculated and produced by HMRC using values, principles and protocols set out in the Code of Practice for Official Statistics.

The UK has one of the lowest tax gaps in the world. Encouragingly, the gap is significantly less than a decade ago.

The key findings

  • There has been a long-term reduction in the overall tax gap, from 7.3% in 2005-06 to the current rate of 5.7%.
  • The Income Tax, National Insurance Contributions and Capital Gains Tax (IT, NICs and CGT) gap is 4.2%.  This is its joint lowest level since 2009-10.
  • From 2005-06 the VAT gap (12.5% to 8.9%) trend has been towards a long-term reduction.
  • Corporation Tax gap has also been on a long-term downward-trend, from 12.4% in 2005-06 to 7.4%.
  • There has also been a steady downward-trend in the avoidance tax gap, from £4.9bn in 2005-06 to £1.7bn.

Avoidance

The avoidance section, found in page 12 of the published report, focuses on Corporation Tax (45%) and payroll taxes (44%).

Income Tax avoidance (and other taxes) is only listed as 3%,with a similar percentage attributable to VAT.

Income tax, NICs and Capital Gains

In 2016-17, the total estimated tax gap for Income Tax, National Insurance Contributions and Capital Gains Tax was £13.5bn. This equates to 4.2% of the estimated total theoretical liabilities.

Of the £13.5bn, £7.0bn is attributable to self-assessment, meaning that the tax gap is 16.4%.

Under avoidance (page 53, published report) the tax gap concerned with measuring personal income taxes ascribed to the hidden economy is estimated at £1.8bn.

Employers and small business

The employer and small business tax gap fell from £1.1bn in 2013-14 to £0.6bn. The main factor for the fall is given as a reduction in non-payment in 2014-15 and 2015-16.

Non-payments increased in 2016-17, but this is from under-declared liabilities due to incorrect returns decreased.

Corporation Tax

The estimated Corporation Tax gap has declined from 12.4% in 2005-06 to 7.4%.

So where is the surprise?

If anything, the report is interesting for the large number areas of no change.

So with the gap figures largely as last year the surprise is there really isn’t any surprise.

Should you let your staff watch the World Cup on company time?

Posted by & filed under Run your business.

Of course, it’s up to you but set down some rules first so there’s no need for red cards.

The Russia World Cup is upon us and will run until Sunday 15 July. England are scheduled to play all of their games either at 7pm or at weekends, even if they make it all the way to the final. But many other games will be shown on week days at lunchtime (1pm) and in the afternoon (3pm and 4pm).

“Whether or not England are in it for the duration, you are likely to have employees wanting to watch favourites like Brasil, Spain and Germany,” says Lucy Merrifield, HR consultant and founder of Mesh Consulting. If a member of your staff is Polish or French, they will want to follow their teams’ efforts, too.

So what do you do?

“Football fans will watch matches, it’s a fact,” says Susy Roberts, executive coach and founder of people development consultancy Hunter Roberts. “It’s far better for you to acknowledge this and accommodate them than deal with the inevitable fall-out if you don’t.”

Give them a gift of time

Why not make it a positive experience and allow everyone to have a break to watch important games together?

“Giving a ‘gift’ of time to your employees to do something they love is likely to result in happier, more motivated people – and that can only be good for your business,” says Lynn Scott, leadership coach and author of The Effortless Leader Revolution.

Setting up a TV in a communal area and providing refreshments will earn you lots of brownie points.

“You could also do a sweepstake with a prize for first and second place, which should get everyone involved, even those not into football,” says Nicki Bidgood, director at outsourced HR consultancy Westcountry HR.

For sure, some of your people may want to carry on working without being distracted by the noise. “If so, you could allow the others to watch the games in a local bar, making it clear that usual rules such as no alcohol during working hours still apply,” says Roberts.

For other games, consider relaxing your policy on people using their work computers or their own devices for personal usage at work so that they can follow the games they are keen to see.

Take a flexible approach

If you cannot entertain letting your staff take time out, perhaps allow them to work flexibly for the duration of the tournament.

Roberts says: “Make it clear that working hours can be adjusted rather than reduced, that any time spent away from their work to follow football must be made up elsewhere, either by coming in earlier or staying later. This way they can get their football fix and you don’t get a drop in productivity.”

Also, make it clear this is a temporary allowance in their favour that will be removed if abused. “This is likely to ensure that people don’t mess up and that work continues to get done around the matches,” Merrifield says.

Offering some flex to accommodate personal interests will benefit you once the World Cup’s finished, too.

Merrifield says: “It provides a great reason for your employees to stay with you in the longer term and perform well. They will also do your PR for you by speaking well of you, which will in turn make recruitment easier, with good candidates lining up to join you.”

Be fair

Just make sure you also offer the opportunity to work flexibly during this time to those not interested in the football. “This way they won’t complain about others receiving special treatment,” says Merrifield.

Or reassure them they will get the opportunity to flex their hours at a later date.

Roberts says: “There are many who care not a jot about millionaires kicking balls around fields but may feel just – if not more – passionate about Wimbledon, the Chelsea Flower Show or a child’s school play. Extend them the same flexibility when it comes to their own needs and interests – as an employer, you have a duty to be fair and balanced.”

You must also be fair in one other respect. If you allow employees to watch one of the big games but refuse to allow a Polish employee to watch Poland play, that is likely to amount to discrimination.

Beware of the banter

If you have different members of staff supporting different teams, things could get heated. There’s a risk that friendly banter before, during and after a game suddenly slips into discriminating comments so you need to remind your employees to be respectful of their work colleagues.

“Reconfirm that any offensive comments or behaviour when discussing national rivalries will constitute harassment or unlawful discrimination and will be addressed as a disciplinary matter,” Merrifield says.

The AAT Annual Conference 2018: as seen on social

Posted by & filed under Annual Conference, Members.

This article is best viewed from internet provider such as Google Chrome.

It’s the tenth anniversary of AAT Annual Conferences, and there can be no doubt that this year’s event was right up there with the biggest and best yet.

And in an increasingly digital age, our member delegates didn’t hesitate to share their experiences of the conference on various forms of social media, using the dedicated hashtag #AATConference.

Here’s just a taste of how social viewed the celebrations as the AAT Annual Conference moved into its second decade.

(Please download our PDF if you are unable to view the entire post)  

Build-up gathers momentum

Ahead of the Conference, speakers Emma Rose and Andi Lonnen shared member suggestions around the myths of accounting while delegates – some 300 of them – were busy buying tickets, and finding out whether they’d made the shortlist for the Professional Member Awards.

Right around the corner

As the Conference day dawned, our sponsors, speakers and suppliers were keen to let you know exactly where you’d be able to find them!

https://twitter.com/MJWalker93/status/1004039608802217984

https://www.instagram.com/p/Bjt2CfflvyE/?tagged=aatconference

https://www.instagram.com/p/BjuLDJBHMgt/?tagged=aatconference

Hitting the ground running

The 2018 AAT Annual Conference started with members from across the UK descend upon the stunning De Vere Beaumont Estate in Windsor on Thursday 7 June.

And many of you were keen to make your presence felt, as the Conference opened with a Sue Tonks networking session, opening address from AAT President Nicky Fisher, and keynote speech from HMRC’s Penny Cieniwicz.

https://twitter.com/gordon_trish/status/1004669777917480960

Work…shop, eat!

The morning sessions continued with our first series of workshops – featuring Karen Thompson on payroll legislation, Duncan Brodie speaking on building a high-performance finance team, ex-AAT President Henry Cooper answering practice questions, and Darren Shirlaw future-forecasting the accountancy landscape. An excellent lunch followed on from these talks.

https://twitter.com/FocusCollect/status/1004686169035157504

https://twitter.com/markfarrarAAT/status/1004689372325842945

MTD a-GO

Oliver Fisher of HMRC’s Making Tax Digital session proved popular after the lunch break. Elsewhere, Shane Lukas of AVN enlightened other delegates on building a £1m practice, Andrew Scrivens gave an IR35 update and Steve Collings discussed minding the UK GAAP.

https://twitter.com/DivineMissDeany/status/1004733211589660674

Cooley and the Gang

The last workshop sessions of the day saw talks from Ian Cooley on GDPR, Sam Ellis talking about being integrated and analytical, Stanley Payne discussing R&D tax credits and Toni Trevett providing an employment law update.

https://twitter.com/FocusCollect/status/1004734794528325632

https://twitter.com/mentekandco/status/1004741802224734209

Having a ball

As Henry said, delegates now got a well-earned rest (or walk!), before the glitz and glamour of the evening gala dinner! Selfies appeared to be the order of the day…

https://www.instagram.com/p/BjuwOodHVBG/?tagged=aatconference

https://twitter.com/mentekandco/status/1004791657722712070

https://twitter.com/FocusCollect/status/1004793638633852928

Awarding success

The second AAT Professional Member Awards proved the highlight of the evening. Seven awards were handed out, including AAT Champion, Rising Star and Branch of the Year.

https://twitter.com/adrianjyearsley/status/1004844601784635392

A new day dawns

The late night and overcast weather didn’t dampen the enthusiasm for learning as we moved into day two. While Oliver Fisher and Brian Palmer took part in an HMRC Q&A session, Henry Cooper tried something less sedate by hosting around 25 members on a ‘net-walk’ around the hotel grounds.

Full Steed ahead

The first set of workshops for the second day of the Conference saw the return of Michael Steed’s popular tax updates, Lucy from the National Cyber Security Centre discussing minimising the cyber risk, Nomisma providing insights on how to run a 21st century practice and Andi Lonnen saying how to control your personal impact at work.

https://twitter.com/DivineMissDeany/status/1005016479539097600

Changing the world – one accountant at a time

Steve Pipe was up next delivering the second keynote speech of the Conference. As ever, he was engaging and enlightening, talking on the theme of becoming one of the most inspiring and profitable accountants.

https://twitter.com/TomJohnsontheAM/status/1005036056532652032

Simms City

The penultimate round of workshops saw Richard Simms, along with AAT’s Adam Williamson, provide an update on money laundering regulations, while Xero’s Glenn Foster discussed frictionless finance and Chris Paton delivered a talk on building a clear business strategy. Michael Steed conducted a second round of his tax update.

The final countdown

After another outstanding lunch came the last round of workshops – from Deborah Ashby on Excel, an update from Stephen Rowntree of The Pensions Regulator, and Sam Ellis discussing how data analytics can inform decision making.

https://twitter.com/DivineMissDeany/status/1005079119623852033

Future-gazing

With a final opportunity to visit our wonderful exhibitors completed, delegates enjoyed an interesting and engaging panel debate around the future of accountancy. Hosted by Brian Palmer, the panel included 2017 AAT award winner Abul Nurujjaman, Andi Lonnen and Glen Foster.

https://twitter.com/mentekandco/status/1005090147799584768

So long for now

Outgoing AAT President Nicky Fisher then closed what has been a spectacular two day affair. We hope all of our delegates had a great time and encourage you all to give feedback via [email protected]. See you all in 2019!!

https://www.instagram.com/p/Bj3-mjNnIy2/?tagged=aatconference

World Cup 2018: France and Spain could go all the way with the most valuable squads

Posted by & filed under AAT news.

The World Cup is about to kick off. The final squads were submitted last week, with each nation deciding on the 23 players who will carry their hopes and dreams for the tournament.

With many millions being gambled by punters keen to predict who will win the trophy, could the value of each country’s squad provide an indicator of the winner?

AAT has used our maths skills to calculate the total worth of each of the 32 teams at the tournament, using the transfer values of the players who make up each squad.

 

 

Rob Alder, AAT Head of Business Development says: “Based on the calculations, France are the most valuable squad in the tournament, with almost a billion pounds worth of talent, although Spain are not far behind. England are in fifth, and we will all be hoping that their relatively high value will mean that they can at least go into the later stages of the tournament – especially given that Portugal had only the sixth most valuable side at Euro 2016 but ended up with their hands on the trophy.

“At the other end of the scale, Panama have a total squad value which is less than one hundredth of France’s squad, and only twice as much as England’s least expensive player, Ashley Young, who’s valued at £4.5m. Egypt’s value of over £150m is somewhat inflated by the £135m price tag on the head of the currently injured Mohamed Salah.”

How would top Premier League teams fare in the World Cup?

AAT also considered how some of the top teams in the Premier League match up with the most valuable nations, comparing the teams who finished in the top five in the 2017/18 season with the top five most valuable teams at the World Cup.

Looking at each team’s value, Manchester City would probably be one of the favourites for a semi-final spot if their squad was entered into the World Cup. The other four Premier League teams may not fare so well though, with values less than the top five most valuable nations, including England.

Rob Alder says: “Liverpool have the lowest worth of the top five Premier League teams, while England’s squad is worth more than all the Premier League teams apart from Manchester City. Despite City cantering away with the Premier League title last season, their squad value is still put in the shade by France and Spain.”

“As we’ve seen many times in the past however, football is not played on paper. So, I think we can expect to see some upsets in this tournament from teams with less resources beating countries with larger values, which should make it an exciting watch.”

The future of accounting – expert insights

Posted by & filed under Annual Conference, Future of accounting, Members.

Change is on the horizon for the accounting profession, but what will it mean for individual careers and how should professionals respond now?

Following up on the Future Accountant research, AAT invited a panel of experts together at the annual conference to discuss how accounting roles will evolve.

It was clear that our experts don’t believe machines are ready to take over the future. In fact our panel maintains accounting professionals are well placed to deal with change – provided they start taking small positive steps now.

‘The biggest thing in our business is still people, not AI. The things machines can’t do are build trust, create empathy or show humility – all the things that make you want to buy from somebody, work with somebody, have a relationship with them,’ said Glen Foster of Xero.

Expert Panel

Facilitator: Brian Palmer, AAT Tax Policy advisor

  • Andi Lonnen, The Finance Training Academy.
  • Abul Nurujjaman, AAT Licensed Member of the Year 2017, Taj Accountants.
  • Christopher Argent, Group Finance Systems and Process, BI and Analytics, Vodafone.
  • Glen Foster, Director, Partner Sales, Xero.

Soft skills upgrade

Less time spent on data processing will mean more time is available for advising and consulting with clients.

This kind of discussion needs the right approach: so developing skills, such as rapport-building, mirroring, presentation and great all-round communication are a priority.

Technology will see accountants move from being accountants to advisors, leaving them to “do what they were born to do”, says training professional Andi Lonnen. “It’s that intelligent interpretation of the numbers. Helping people understand what the numbers mean for them. And how to run their departments or businesses better.

“We forget some people don’t like numbers, and they don’t understand them like we do. So breaking it down, having those clear communication skills is what it will be about,” she adds.

Trusted advisors

We assume CEOs are in control. But they could use a listening ear. If you provide it, it will lead to a deeper relationship.

What does it look like to become an advisor to a business? Well, the challenge is to help your clients or non-financial colleagues see life through the windscreen, not the rear view mirror. That means having bigger and more courageous conversations.

“Sometimes you might be asked to project manage something the CEO can’t deal with. Have you ever asked, what is your biggest risk in your business?,” says Christopher Argent, Group Finance Systems and Process, BI and Analytics, Vodafone and a member of AAT.

“We assume that CEOs  are 100% in control and in charge, but they could use a listening ear. If you provide it, it will lead to a much deeper and longer relationship with the business.”


Watch the panel discussion

A whole new you?

The future challenge starts with developing soft skills. But it goes further. Accountants need to be more proactive and more outgoing. Christopher Argent says the typical Myers Briggs personality analysis would probably label accountants introverts. But instead they need to be willing to open discussions and seek interaction with clients.

It may be a bit of a shock for some. But the overwhelming advice from this year’s conference (including the likes of HMRC and Accountants) is to jump in and have a go.

Andi Lonnen advises individuals to start learning – and practicing these skills now, making the most of the free help available from sources like AAT Comment and the trade press. “Don’t just read about it. Practice it. That can be really tough for some people. But get out there and try – it will help you stay relevant.”

Transitioning clients

For those working in practice or running their own businesses, there is the added challenge of transitioning the business. The process starts with making time to think, and then moves how to get clients in tune with moving to digital services.

Christopher Argent says: “In the immediate future, you need to think of yourself as an information data broker to your client, to get them over this hump. Show them how to automate their operations. This frees you up to add value, which will lead to a longer term relationship.”

The challenge is that some fee-earning opportunities will be lost through automation, and new services will be an “upsell”.

Freemium to premium services

At the beginning we have to somehow absorb the cost while teaching clients to use these add-ons.

Abul Nurujjaman, AAT Licensed Accountant, says accounting professionals can convince their clients if they tackle the process in the right way.

“We will spend less time on data processing. We will spend more time talking with clients. Then… we have the opportunity to sell them more strategic products. If clients have the [need] to understand the business and the [opportunity] to do so, they will definitely come to us.

“At the beginning we have to somehow absorb the cost while teaching clients to use these add-ons. The first time they will get the report for free. The next time you can charge them. You have to teach them with a free sample.”

Many other topics came up during the panel debate. You can watch the full discussion using this link.