Companies House reforms: what you need to know

Posted by & filed under Anti-money laundering, Members, Run your business.

AAT and Finance professionals discuss how they think businesses will be affected by changes.

As part of the Economic Crime and Corporate Transparency Act 2023 (ECCTA), Companies House has been granted new powers to assess and verify information provided by businesses on the UK company register and act swiftly against non-compliance.

The reforms, which are being carried out in several phases between March 2024 and 2027, are the first such wide-sweeping changes since the register was set up in 1844.

In March last year, Companies House began the first phase of the reforms, including querying and verifying company information and/or rejecting or removing anything found to be inaccurate or false. Companies House has also been given powers to share relevant information with law enforcement agencies and other government bodies.

Companies House have now published the latest timetable for each phase but these dates could change pending parliamentary delays:

From 25 February 2025

  • Companies House will start to remove/strike off any falsely-listed companies.
  • Third-party providers carrying out verification and identity checks will be required to register as official Authorised Corporate Service Provider (ACSP) from this date. ACSPs must be supervised by one of 25 possible UK supervisory bodies including AAT, HMRC or Financial Conduct Authority.

From 25 March 2025

  • Individuals (Directors, Persons of Significant Control, LLP members etc) will be able to verify their identity on a voluntary basis, initially.

Summer 2025 

  • Companies House will allow ‘access on request’ to certain information available on the Register of Overseas Entities.
  • Companies House will assess, verify and act as appropriate on individuals ‘seeking to suppress’ their birth date relating to documents registered before 10 March 2015. These documents may include false signatures, home addresses or nature of business.

Autumn 2025

  • Identify verification will become compulsory from this date for all new company incorporations and newly appointed directors and Persons with Significant Control of a company (PSC).
  • Companies House will start to implement the 12-month transition phase which will require over seven million existing directors and PSCs to verify their identity as part of annual filing of confirmation statements.

These reforms will impact both accountants and their clients due to stricter verification processes required by Companies House. These will apply not just when registering a new company, but each time there’s a change to existing details, or amending or adding a PSC. The increased Companies House fees which went up in May 2024 will also have an impact.

We asked accountants across practice and industry for their views on these changes, including implications for businesses, and what changes they’d like to see.

We support the measures being brought in to prevent deliberate abuse of the registers

Donna Drew, AAT Professional Standards Policy Manager

Money laundering is estimated to cost the UK more than £100 billion a year. Whilst we understand the concerns some firms may have around the initial impact of the reforms on business costs, we believe the reforms are vital to the UK’s fight against economic crime. The identity verification measures in particular will prevent the creation of anonymous corporate structures, meaning exploitation by criminals will become far more challenging.

In addition, the Registrar’s power to query and challenge information will improve the accuracy and quality of the data, which will reduce the deliberate abuse of naming processes that suggest illegitimate links to established firms and prevent misleading or offensive naming of companies.

To ensure compliance, accountancy and bookkeeping firms should familiarise themselves with the changes to UK company law. AAT firms wishing to register as an Authorised Corporate Service Provider (ACSP) should also read AAT’s article on how this may impact them.

Verdict: As an anti-money laundering supervisor, AAT is particularly concerned with, and supportive of, any measures intended to limit the opportunities for companies to use fraudulent information on the register to hide money laundering activity.

We’re cautiously optimistic about effective introduction of reforms

Paul Beare, Founder and MD, Paul Beare Limited

The importance of Companies House shouldn’t be underestimated – an effective and well-tuned companies register is vital for the efficient operation of the UK economy. So it’s natural that any changes will cause some alarm to those of us who engaged in important client work that involves Companies House.

The introduction of stricter requirements for maintaining accurate records is essential – it’s something we believe will be beneficial for accuracy of information. We’re hopeful that the new laws will give confidence that the information held on Companies House will be correct moving forward.

Critically, from 25 February 2025, Companies House will be able to challenge incorrect information and will be able to remove false companies from the register. This is a huge step forward in the battle against fraud and financial crime, so it should have widespread support.

With that said, as with any new law, the devil is in the detail: we’re waiting to see how the new Registration for Authorised Corporate Service Providers (ACSP) service plays out in practice. Getting that right will be vital in the journey towards a more robust compliance environment on Companies House so we’re very supportive of the principles and cautiously optimistic about their effective introduction.

Verdict: We’re supportive of the principles of the Companies House reforms and cautiously optimistic about their effective introduction.

Confirmation statements should be required only when there’s something to update

Jamie Skelding, Director, Prime Accountants Group

Most businesses aren’t aware of the impact these changes could have. Human nature, particularly when it comes to tax or legislative changes, is to act only as and when you have to and many of these changes won’t be mandated until 2026.

It feels like yet more bureaucracy getting in the way of business, as it’s only fairly recently that Companies House reviewed its charges. These led to some routine costs doubling or trebling in some cases.

However, the premise is quite straightforward – driven by a wider push for transparency about who is actually running a company and a reduction in allowed time to notify of any changes.

There are situations where people can muddy the waters on purpose, or where one person might own multiple companies that are not necessarily connected up on the public register due to different name variations. Under the new rules, they won’t be able to hide anything.

On the other hand, a sole director of a simple company will still be affected by these changes, even though they’re unlikely to try to hide their identity.

In terms of changes, I’d question the value of mandating every business, regardless of size, to submit an annual confirmation statement. There could be a case for businesses to only update if there are changes to be made, rather than telling Companies House that nothing has changed and paying a fee for that privilege.

A small company has the same compliance responsibilities as much bigger companies. Businesses should be treated in accord with their complexity of their circumstances and the systems adapted to recognise that.

Verdict: Companies should only have to submit confirmation statements if there is something to update rather than paying a fee just to tell Companies House that nothing has changed.

Companies House reforms will affect business costs

Alistair Roman, chartered accountant, Founder, Cost Optimisation Consultancy

Accountants will need to be fully aware of Companies House changes in order to understand where and how best to support their clients. For example they may need to: 

  • help clients meet the new requirements for registered office and email addresses, confirming the business’s ‘lawful purpose’, annual confirmation statements and transitioning to online accounting software
  • review client details to ensure compliance
  • advise clients on how to meet the new identity verification requirements.

While we appreciate the need for these changes, concerns remain around what impact they will have on business costs in an environment where margins are already stretched, trading conditions are tough and the increase in Employer NI contributions is almost upon us.

To what extent the likely increase in business costs is passed on to the end consumer, only time will tell.

Verdict: We have concerns about the impact that Companies House reforms – while necessary – will have on business costs.

‘Accidental slip-ups’ could treated as deliberate non-compliance

Darren Mercieca, chartered accountant and CFO, Kiwi Bets

The Companies House reforms coming into effect on 25 February are a big shake-up for UK businesses. These changes are about tightening up company records and cracking down on fraud. The goal is to make sure businesses operate more transparently and that dodgy actors can’t hide behind fake names and shell companies.

One of the biggest changes is that directors and people with significant control (PSCs) will need to verify their identity. This takes effect immediately for new businesses, although current directors and PSCs have a 12-month grace period to comply. Although this could help combat fraud, businesses may need some time to catch up due to the phased deployment, and there may be some initial uncertainty.

Another change is how quickly Companies House can now strike off businesses set up with false information. That’s great for removing bad actors, but it also means businesses need to stay on top of their records. Any slip-ups could cause unnecessary headaches, so accuracy in filings is more important than ever.

A new system is coming in where Authorised Corporate Service Providers (ACSPs), like accountants and solicitors, can verify identities on behalf of clients. That could make life easier for businesses, but it also puts more responsibility on service providers to follow anti-money laundering regulations properly. 

The question is whether businesses, especially smaller ones, are ready. Some people could suffer if they don’t receive clear instructions since they don’t have the tools or knowledge to quickly adapt.

Verdict: Smaller businesses may not be ready for Companies House changes and there’s the risk that accidental slip-ups could be treated as deliberate non-compliance.

The good kind of creative accounting

Posted by & filed under Community, Members, Mental health.

When accountants get creative, it usually leads to trouble. But creative accounting in the guise of developing outside interests can do a power of good.

We spoke to AAT members who told us about their creative ventures and how they benefit from them.

Creativity helps with all spects of my role, even down to how I communicate and present information.

Emma Locke MAAT, Finance Manager, Roberts Environmental

Photography makes me a better colleague

Emma Locke MAAT, Finance Manager at Roberts Environmental in Newcastle upon Tyne, and a nature and wildlife photographer

“Photography is the perfect blend of creativity and technical knowledge, as well as giving me an excuse to spend my weekends outside.

“Creativity is something that came later for me – the further I’ve progressed through my career, the greater the need has been for a creative outlet. Photography gives me a focus outside of my job, but also helps me cultivate skills that benefit my work. I think everybody should have a hobby outside of work, and if it’s something that can benefit their mental or physical health, even better – photography definitely does that for me.

“Being creative makes me a better problem solver. Being able to focus on something other than work means when I go back to the office, I’m looking at things with a fresh pair of eyes, and often able to spot mistakes or generate new ideas. Creativity helps with all aspects of my role, even down to how I communicate and present information.

“Spending time being creative while surrounded by nature reduces my stress levels and helps me sleep better, which improves my quality of work, as well as my mood.

“As my photography is all outdoors, it’s been incredibly beneficial physically too. As someone who struggles to allow myself time to relax and unwind, I can spend time outdoors while also feeling like I’m achieving something. Sometimes conditions aren’t right, or the shots don’t come out the way I expected, but this has taught me to find enjoyment in the creative process and not just the perfect shot.

“Creativity is a skill that must be cultivated, and gives so many benefits – stress reduction, self-expression and using different parts of the brain. Creativity makes me healthier and happier, as well as making me a better accountant.”

Setting my own pace

Stuart Haynes FMAAT, CFO at Outer Temple Chambers in London by day and rock drummer by night

“Drumming is one of those activities where the easier it looks, the harder it is. It’s a completely different challenge to work, using separate parts of the brain, allowing you to escape from everything else. Even a straightforward song like Free Fallin’ by Tom Petty has an unusual bass drum pattern and there is a point in the song that requires all four limbs to play slightly different parts. It’s challenging to learn new songs, but the sense of achievement from practising is amazing.

“Practice is so important. I was fortunate enough to meet Steve Hewitt, who used to play drums for Placebo and Six by Seven. He told me that when Six by Seven were recording an album, he spent six months solid just perfecting the rhythm and the grooves, before he started working on fills. That shows incredible dedication, self-awareness and a desire for perfection that, as a skill, translates well to a work environment.

“Being motivated and conscientious in achieving one’s goals are important life lessons, regardless of one’s profession.

“In the band, our setlist is made up of 35 songs. We have another five as back-up. That is a lot of songs to be able to play from memory. We also regularly drop some and introduce others, so there’s a perpetual learning process. As a CFO, I have to be up to date with technical developments and legislation, so I need to constantly maintain my CPD. Working in a barrister’s chambers, I also have to be abreast of legal developments. Having the mindset to appreciate that change is healthy, rules will vary and the need to keep learning is directly applicable in a band setting. I’ve also realised that I will not always succeed the first time, but the end result is in direct relation to the amount of preparation. This is true for budgets, a presentation or playing Lonely Boy by The Black Keys.

“Drumming allows me to forget the work environment and use a discrete set of skills. The band consists of an occupational psychologist, a primary school teacher, a golf instructor and a tattoo artist. Despite our disparate backgrounds, we all agree that our practice sessions allow us to reset mentally and devote ourselves wholly to the music. Additionally, playing drums is physically demanding and it has forced me to work on my fitness levels.”

Making things gave me my identity back

Lorraine Hatfield FMAAT runs her own accountancy and small business coaching firm, as well as a sideline making bird feeders and cake stands out of vintage crockery

“I was building up my accountancy firm when my daughter was diagnosed with autism. She really needed me, so I offloaded the business to concentrate on the family. But I felt a bit lost. I’d always had a strong professional life. So, I thought, what can I do from home?

“The lightbulb moment struck in a vintage shop. I love the vintage style and upcycling. I use crockery — side plates, saucers, teacups, milk jugs and so on — to make cake stands and bird feeders. I use a desktop drill to make the holes very carefully, then run rods through to bring all the pieces into form. There’s a technique to knowing the right drill speed and the right amount of pressure, it’s something you have to learn, but I picked it up pretty quickly. It’s about challenging yourself.

“It’s very rewarding, especially when people want to buy what you’ve made. And it helps me de-stress and switch off from the professional side of things. It’s like therapy, because it’s a different way of thinking. It’s just completely different from my professional life. I can’t imagine not having this creative sideline, much to my husband’s dismay, because I’ve taken over one of his sheds and part of the dining room with stock.”

Hitting the right notes

Sinead Pratschke MAAT is a tax adviser to musicians and performers, and a former professional opera singer

“I trained as a singer at the Royal College of Music and National Opera Studio, and worked for 10 years as a freelance musician, before retraining as an accountant and tax adviser. I still love singing, but I didn’t think I had the right temperament to do it as a professional. Fortunately, I’ve remained immersed in the creative arts through my client base at my firm Orpheus Accounting.

“The music business, for me, is too steeped in work, so while it’s unquestionably a creative industry, it wasn’t until I stepped away from it that it began to become a creative outlet. I love attending concerts, plays and dance performances. It’s part of my job to see clients performing. I now get a mental health benefit, of stepping outside myself, doing something different – there’s a real release in it.

“I’ve found satisfaction from solving problems. While I was a financial controller at the Royal Opera House, I prepared a detailed production budget for the orchestra. I looked at the various music scores, I saw how many players they’d need and when. In and of itself, it perhaps wasn’t creative – in the end it was an enormous spreadsheet – but you had to know how an opera would be rehearsed and what players were needed for what parts and for how long to even begin building the spreadsheet. I spent hours devising that elaborate spreadsheet, but it provided numbers that worked and informed people, so it was time well spent.”

Conclusion: creativity in the workplace

  • Creativity helps communicate and present information
  • improves physical and mental health
  • is a skill that must be cultivated
  • can evolve into a sideline business
  • can enable greater knowledge and detail in some job roles.

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Navigating the Future of Tax with Confidence: Making Tax Digital (MTD) for Income Tax and Sage’s Roadshow Events

Posted by & filed under Tax.

This content is brought to you by Sage

Starting in April 2026, Making Tax Digital (MTD) for Income Tax will revolutionize how taxpayers interact with HMRC.

This significant change will be mandatory for unincorporated sole traders and landlords with annual business or property income, driven by regulatory changes and new technologies. It marks the biggest shift for small businesses in a generation.

Accountants and bookkeepers are adapting to this new era by focusing on three key areas: leveraging AI and technology for more efficient services, growing skills and attributes to build a more efficient team, and building human relationships to drive client value. The Practice of Now report highlights these focus areas as essential for professionals to become future-ready.

HMRC aims to become one of the most digitally advanced tax administrations globally, with MTD being a key programme to make tax management easier for individuals and businesses. The phased approach for income tax includes:

  • 2026 for those with combined income over £50,000.
  • 2027 for those with combined income over £30,000.
  • 2029 for those with combined income over £20,000.

Accountants and bookkeepers will need to support clients through this transition, create internal processes for consistent and profitable service delivery, and select the right technology aligned with client needs.

To help navigate these new requirements with confidence and ensure you and your clients are ready, Sage has launched a series of free, CPD-accredited roadshow events across 7 UK locations. These practical sessions are tailored to equip professionals with the knowledge and tools needed to manage the transition to MTD with ease. With a blend of expert-led insights, real-world examples, and innovative solutions, the roadshows are designed to ensure you’re ahead of the curve.

What to Expect:

  • Expert Guidance: Learn directly from Sage specialists and HMRC representatives about the key requirements, timelines, and next steps for MTD compliance.
  • Actionable Strategies: Develop a 100-day plan to successfully implement MTD in your practice, including effective pricing, marketing, and client onboarding techniques.
  • Hands-On Insights: Discover how MTD-compatible tools like Sage Copilot can simplify digital record-keeping, enhance workflows, and deliver greater value to clients.
  • Q&A Opportunities: Bring your questions to the experts and get the clarity you need to confidently support your clients.

Find out more here.

*This content is brought to you by Sage

Trust or Company Service Providers, are you aware of the risks your business might face?

Posted by & filed under Anti-money laundering, Anti-money laundering, Members.

TCSPs are at high risk of being exploited. Here’s what to watch out for.

Trust and Company Service Providers (TCSPs) play a crucial role in the global financial landscape, assisting clients in establishing and managing trusts, companies, and other corporate entities.

Many TCSP clients create intricate ownership structures that involve multiple offshore entities and nominee shareholders or directors. This complexity can obscure the flow of funds and make it challenging to detect and prevent money laundering activities.

As such, TCSPs are at a high risk of being exploited for illicit purposes, including money laundering and terrorist financing, with that risk increasing when provided with other financial, legal, or accounting services. 

What is a TCSP?

Under the money laundering regulations, a trust or company service provider is any company or sole practitioner whose business is to:

  • form firms i.e. companies, limited partnerships or other legal persons
  • act, or arrange for another person to act:
    • as a director or secretary of a company;
    • as a partner of a partnership; or
    • in a similar capacity in relation to other legal persons
  • provide a registered office, business address, correspondence address or administrative address for a company, partnership, or other legal person or arrangement 
  • act, or arrange for another person to act, as a trustee of an express trust or similar legal arrangement
  • act, or arrange for another person to act, as a nominee shareholder for another person, unless the other person is a company listed on a regulated market which is subject to acceptable disclosure requirements.

Risk characteristics

The Accountancy AML Supervisors Group Risk Outlook identifies the risks of TCSP services in the accountancy sector as being highest when coupled with other high-risk services or high-risk factors, such as a client in a high-risk country. There is also a high risk when a new client approaches a firm for a one-off company formation, with no ongoing services required.

Accountancy sector firms that offer registered office or nominee directorships are also at risk of exploitation as those services can enable the concealment of beneficial ownership. Law enforcement have indicated that many investigations into money laundering have led to complex corporate structures. By creating structures that disguise the ownership of assets, the accountant may be either wittingly or unwittingly involved in ‘integration’ of the illicit funds into the legitimate economy.

HMRC has recently updated its risk assessment of TCSPs and published updated guidance on Understanding risks and taking action for trust and company service providers.

Firms can also access further guidance through:

  • Issue 21 of the UKFIU’s SARs in Action magazine – contains an alert published by the National Economic Crime Centre (NECC) around the high-risk behaviours and typologies associated with the TCSP sector, with a list of indicators for potentially suspicious companies formed by TCSPs
  • AAT’s Anti-money laundering and ethics area within Knowledge Hub

What due diligence is needed?

Firms are required to carry out a firm-wide risk assessment that takes into account the customer base and the nature of the services the firm provides so that policies, controls and procedures can be put in place to counter any risk of the firm being exploited for money laundering,  terrorist financing, or proliferation financing (ML/TF/PF) purposes.

TCSPs must identify who their customers and beneficial owners are, and what levels of due diligence are appropriate. Policies, controls and procedures should document the firm’s approach when dealing with intermediaries and when placing reliance on third parties or accepting due diligence undertaken by others.

To mitigate ML/TF/PF risks, TCSPs should conduct thorough background checks, verify the source of funds, and regularly update client information. Enhanced due diligence is necessary when dealing with high-risk clients, high-risk jurisdictions, or politically exposed persons (PEPs).

Maintaining detailed records of client interactions, transactions, and corporate structures is essential. These records should be readily available for regulatory inspections and audits.

TCSPs should adopt a risk-based approach to their services. This involves assessing the specific ML/TF/PF risks associated with each client and tailoring their due diligence and compliance efforts accordingly.

When risk assessing a client, firms should consider location, complexity, sources of wealth, PEP status, nature of services and client’s business, and transparency. Those holding client money should always consider the handling of client money, along with the nature of the client’s business, the purpose of the business relationship and sources of wealth.

HMRC’s TCSP register

Firms (including sole practitioners) providing any TCSP services that are not registered with the Financial Conduct Authority (FCA) must be included on HMRC’s TCSP register maintained under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017). Firms are prohibited from providing TCSP services unless they are on HMRC’s TCSP register.

To be included on HMRC’s TCSP register, firms must be registered with a supervisory authority under the MLR 2017. Firms that are registered with a professional body supervisor under the MLR 2017 do not need to separately apply to HMRC for supervision.

Professional body supervisors notify HMRC of all the firms (including sole practitioners) they supervise that perform trust or company service work by sending HMRC the name and address of each business and confirming they are ‘fit and proper’. HMRC will then review this information and may carry out further checks before confirming approval. 

AAT notifies HMRC of all licensed members who are approved to provide Company Secretarial Services (trust or company services) and have registered their firm, or firms, with AAT for AML supervision to be included in the register. If you are an AAT licensed member providing TCSP services, please ensure you have been approved to provide Company Secretarial Services (trust or company services) as a specific area under your licence and have told AAT about of each of your firms providing TCSP services.

If you need to apply to add TCSP services to your AAT licence, here is where you can do so.

Any AAT member who is in public practice and is providing trust or company services whilst not on the register may be subject to disciplinary action by AAT and/or criminal or civil penalties by HMRC.

UKFIU’s SARs Reporter Booklet January 2025

Posted by & filed under Anti-money laundering, Anti-money laundering, Members.

Your regular CDD, risk assessments and SARs are helping detect suspicious activity as early as possible, and preventing crime.

SARs are a critical intelligence resource for law enforcement – they provide information like phone numbers, addresses, company details, investment activity, bank accounts and details of other assets. They have been instrumental in identifying sex offenders, fraud victims, murder suspects, missing persons, people traffickers, fugitives and terrorist financing.

Accountancy and bookkeeping firms (including sole practitioners) play a critical role in alerting law enforcement to potential instances of money laundering and terrorist financing. Undertaking regular Customer Due Diligence (CDD) and risk assessments can help firms detect instances of suspicious activity as early as possible and the submission of SARs can help reduce and prevent financial crime.

SARs case studies

The latest SARs Reporter Booklet published by the UK Financial Intelligence Unit (UKFIU) uses case studies to provide a snapshot of how SARs intel initiates and supports law enforcement investigations.

Risk indicators and the Accountancy AML Supervisors Group Risk Outlook

Some of the key risk indicators leading to the submission of the SARs in the case studies used include:

  • a business exceeding their expected yearly turnover within a few months with little evidence of the business being legitimate and cash being deposited in small amounts in an apparent effort to avoid detection
  • an international student receiving a large number of cash payments from unknown origins into their account which were rapidly transferred out
  • financial activity inconsistent with the customer’s declared occupation and income, significant spikes in monthly credit turnover, multiple large cash deposits, often in the same day, and a high number of businesses found to be registered at the customer’s address.

Firms are reminded that the risk of money laundering and terrorist financing is constantly evolving. Firms should regularly review the Accountancy AML Supervisors Group Risk Outlook (PDF), and any other risks published by their supervisory authority (such as the AML Alerts that AAT publishes in Knowledge Hub) to make sure they have identified all the areas relevant to their own business –particularly as risks may evolve because of changes to the firm’s client base, geography and services provided.

Guidance on making an SAR

Chapter 6 of the CCAB’s Anti-Money Laundering, Counter-Terrorist and Counter-Proliferation Financing Guidance for the Accountancy Sector provides guidance on what suspicious activity must be reported, when and how a report should be made to the National Crime Agency, and matters which may require a Defence Against Money Laundering (DAML).

The quality of an SAR can affect the UKFIU’s ability to prioritise and process the report. It can also affect the relevant agency’s decision or ability to investigate. Before making an SAR, firms should familiarise themselves with the UKFIU’s Guidance on Submitting Better Quality SARs.

AAT’s AML helpline

AAT’s AML helpline offers advice for AAT-supervised firms on all aspects of complying with the Money Laundering Regulations, such as advice on how to report suspected illegal activity. To discuss any questions you might have, call us on +44 (0)20 7367 1347 or email [email protected]

UKFIU Podcast looks at Illicit Company Formation

Posted by & filed under Anti-money laundering, Anti-money laundering, Members.

Panellists discuss the recent work that has been done on illicit company formation activity and transformations to Companies House following legislative changes.

These representatives from the National Economic Crime Centre (NECC), Companies House, and private sector members of the NECC’s public private partnerships share their perspectives on this work, including its relation to Suspicious Activity Reports (SARs).

Listen to the podcast on Spotify.

Quiz – What type of learner are you?

Posted by & filed under Students.

Are you a kinesthetic, auditory or visual learner? Take our quiz to find out!

When it comes to learning we all apply a mixture of techniques, although the majority of us tend to have one preferred method. Our learning styles are not fixed but can be defined. The key is to find what works best for you.

By recognizing whether you are a visual, auditory or kinesthetic learner, you will be able to incorporate learning techniques better suited to you, making learning more enjoyable.

What type of learner are you?

Are you a kinesthetic, auditory or visual learner? Take the quiz and find out which type of learner you are and which learning style resonates most with you…

Take the quiz

Further reading:

Five top tips for successful recruitment

Posted by & filed under Employer Videos, Employers, Recruitment.

Watch a video from AAT’s Employer team to learn how to hire the best apprentice.

Marlon Thomas, Employer Account Manager at AAT, supports partners in industry and the corporate field with implementing our qualification across finance departments.

In this video, he gives his top five tips for recruiting successfully, including how AAT can support you in onboarding your apprentice.

Find the right apprentice for you

We’ve launched the UK’s only dedicated accounting apprenticeship job board, where employers can connect with motivated career starters and changers.

Find out more

HMRC’s customer service is in the spotlight once more

Posted by & filed under Members.

January’s PAC report into HMRC’s services was incendiary. Here’s our take on it.

One of the big stories to emerge in January was the publication of the Public Accounts Committee (PAC) report into HMRC’s Customer Service and Accounts. The incendiary headline from the PAC’s own press release accused HMRC of deliberately degrading its own telephone service in a bid to drive more of its customers to use their online digital services. 

HMRC’s CEO, Jim Harra fiercely rejected this accusation, describing it as “completely baseless”. 

Declining service

The PAC’s report did, however, highlight that there had been a continued decline in HMRC’s customer service. Evidence showed 66% of customer attempts to speak to an adviser were answered, against a target of 85%, and average call waiting times exceeded 23 minutes. Indeed, over 44,000 customers were cut off after waiting on the telephone for over 70 minutes.  

Harra explained that the decline in standards of the HMRC telephone service was caused by a growing taxpayer population with more complex needs, compounded by HMRC’s budget constraints. 

The PAC is appointed by the House of Commons to examine the value for money of government projects, programmes and service delivery. AAT responded to two calls for evidence on this matter in 2024, with the PAC issuing requests in both May and November.

Our feedback

In our most recent response, we stated that effective customer service delivery is essential to meeting the Government’s objectives of closing the tax gap, protecting funding for public services and improving productivity. We shared members’ feedback that HMRC’s customer service performance continues to decline and remains an area of growing concern to AAT members and the wider accountancy profession. 

Members have told us that HMRC’s unresponsive and inefficient services mean they routinely face severe delays, business disruption and productivity losses. HMRC’s Charter Annual Report showed that HMRC received 92,206 complaints in 2023/24 – an increase on the previous year. Plus, customer satisfaction with tax agents fell by 7% to 37%. 

We welcomed the Government’s Budget announcement setting out details for new investment into HMRC. We also recognise that HMRC has been working hard in recent years to deliver improvements and solutions, but it has been hamstrung by consistent underinvestment. The trend of contending with both significantly increasing demands and declining resources has posed substantial issues for HMRC and its ability to collect tax and handle customer inquiries effectively and efficiently. 

Whilst extra investment is essential, it is not the only solution. Digitisation should be progressed without any further delays, co-designed more with software developers, and accompanied by targeted support for those who are digitally excluded. A long-term strategy for HMRC, including tax simplification and workforce planning, would also help. 

We continue to engage directly with HMRC to support the delivery of its objectives.  

Most recently AAT’s Chief Executive, Sarah Beale, was invited to participate in a roundtable with other professional accountancy and taxation body representatives by HMRC’s Director General, Customer Strategy & Tax Design. At the meeting, HMRC continued with their commitment to listening to members’ feedback shared by key professional bodies, of which AAT is one.