Accountants’ top tips for addressing late payments Posted 09/14/2023 by Annie Makoff & filed under Members, Prompt payment. Late payments are an increasing issue for many UK businesses and their accountants. Here’s how you can mitigate difficulties. Late payments are an increasing issue for many UK businesses. Two separate pieces of research published during the summer found that a significant number of invoices raised by sole traders and small businesses were not paid on time. Insurer Simply Business found that small businesses are owed £32.1 billion in late payments while analysis by cloud accounting software FreeAgent revealed that 43% of invoices sent over the past twelve months were paid late. Late payments cause significant cash flow issues for small businesses, many of which don’t have the financial reserves to fall back on. Late payment of invoices can hinder business growth, delay investment and – from an emotional perspective – cause stress and anxiety for staff. Some business owners are having to dip into personal savings or rely on bank loans. Dealing with clients who consistently pay late is not a new problem, but during a time of economic uncertainty, unpaid invoices are exacerbating existing challenges. Accountants can support their small business clients in navigating this area. Potential solutions may include: Implementing stricter and clearer payment terms for new customers. Sending regular payment reminders. Imposing late payment penalties. Improved and regular communication between small business and their customers. Ditching clients who consistently pay late. To this end, we spoke to accountants for their top tips on how small businesses can deal with the difficult issue of late payments. Adopt a tough and robust approach to late payment and implement the Late Payment Act Todd Davison, Chartered Accountant and MD, Purbeck Personal Guarantee Insurance Cash flow problems due to late payments stymie growth and force some small firms into taking on finance just to keep their heads above water. Without strong cash flow, it is difficult for small businesses to reinvest and grow so being tough and having a robust approach to late payment could push your invoices higher up the pile and save the time and stress of chasing in the future. To deal with this, we’d advise: State payment Terms and Conditions clearly, including how you will deal with overdue payments. Tell customers early on, as part of good relationships, that legal action will be taken against non-payers. Send an invoice by email to your contact and accounts payable at the same time – making doubly sure your invoice has been received. Use the Late Payment Act. This allows any business paid late to claim interest for the period the debt was overdue, plus compensation, if contact terms allow it. Use a Late Payment Demand to show the customer the costs they will face, in addition to the debt, if they don’t pay up. A Letter Before Action (LBA) is the last resort before making a claim. It sends a strong message to late payers and gives them one last chance to settle their debt. Consider using a Winding-Up demand for debts over £750. Verdict: Adopt a tough and robust approach to late payment including implementing the Late Payment Act. Use automated payment collection systems to collect payment directly Tom Hamilton, Founding Director, Erdingsworth Business and Tax Advisors We’re seeing an increase in the number of small businesses that aren’t receiving invoice payments on time due to the ongoing cost of living crisis. It’s quite likely that those people who owe our clients could also be small businesses that are waiting on payment too, which causes a domino effect into other businesses. Cash flow is the biggest concern for our clients when they don’t receive their payments on time. As a result of poor cash flow, they surrender their ability to pay employees or other suppliers which then causes issues to other people, too. It also causes issues if clients are looking to apply for financed items or borrowing. Our top tip to support clients dealing with late payment is to set clients up on automated payment collection systems such as GoCardless. It allows businesses to collect funds directly from customers’ bank accounts. And for late paying clients, small claims is very easy to do too. Verdict: Use automated payment collection systems to collect funds directly from customers’ bank accounts. He who shouts loudest gets paid first, so keep chasing Jamie Skelding, Finance Director, Prime Accountants Group Late payments are a common problem for our clients, particularly where their clients are larger organisations with more complex accounts payable systems. Late payment causes havoc with cash flow planning: receipts not being in when expected has a knock-on effect of not being able to keep to commitments. Managing cash flow takes time away from normal business tasks, not to mention creating stress for the owner-managers. Clear communication and accuracy is essential in dealing with and/or preventing late payments. Such as: Agree costs ahead of invoicing. Ensure invoice details such as order references are correct and addressed and sent to the right person. Have good monitoring systems in place to chase late payments, so you know what is expected and when. Then you can follow up and react quickly when problems arise. Be prepared – have copy invoices to hand, and software which allows a copy to be sent immediately. This is often just a stalling tactic when trying to chase debt. Keep chasing – sadly he who shouts loudest generally gets paid first. Add pressure – if you can use future deliveries as a pressure to get paid, then do so. Verdict: Clear communication and accuracy is essential but ultimately, he who shouts loudest usually gets paid first, so keep chasing.
How to craft a successful job advert for your apprenticeship Posted 09/12/2023 by David Nunn & filed under Apprenticeships, Employer newsletter, Start an apprenticeship. Earlier in this series, we looked at how to design a role for your apprentice. Now it’s time to craft a compelling job advertisement. Here are some pointers: Summarise what the job entails. Outline the personal characteristics and skills you are looking for. Specify any responsibilities and duties you’d like the apprentice to deliver for your business, such as assisting the department, meeting clients, travelling to sites (if working in audit). State the desired educational level such as GCSEs/national 5, A-Levels/Scottish Highers. Some information about your business to convince the candidate your workplace is right for them. Free guide – 7 steps to start an apprenticeship AAT’s free guide to launching an apprenticeship in seven easy steps will walk you through the process, from job description to funding. Download Are you an equal opportunity and Disability Confident employer? Are you a hybrid organisation where the apprentice may be required to spend part of the week working from home? Also, what benefits can you offer, such as gym membership and duvet days? The duration of the apprenticeship plus any qualifications they will study. And, of course, salary details. What should you pay? If your apprentice is aged under 18 or in the first year of their apprenticeship, the employer must pay at least the apprentice rate of £5.28 per hour. The rates change on 1 April every year. Once an apprentice has completed the first year of their apprenticeship, the following minimum salaries apply. Age 18 or below: £5.28 an hour Age 19–20: £7.59 an hour Age 21–22: £10.18 an hour Age 23-and-over: £10.42 an hour. However, you may want to consider offering a more competitive salary for your apprentices to attract and retain top talent. Nearly all employers with training provider First Intuition choose to better the minimum wage, according to the firm’s Chelmsford MD, David Malthouse. Think long-term “In order to get eyes on your advert, you’ve got to offer a competitive salary,” he says. Experience shows this pays in the long term with higher levels of loyalty. You must also offer apprentices the same conditions as other employees in your organisation, such as paid holidays, sick pay, benefits such as childcare vouchers, plus any support such as coaching and mentoring. Apprentices will also have the same employment rights as your other workers. Apprenticeships in Scotland If you employ a foundation apprentice, you won’t pay any wages as the apprentice will still be at school. If you employ a modern apprentice, your apprentice will be paid a salary, which must be at least the national minimum wage or higher.
AAT President Christina Earls reflects on a vibrant and successful year Posted 09/12/2023 by Marianne Curphey & filed under AAT news, Members. As her year as President of AAT draws to a close this month, Christina Earls (FMAAT) reflects on the changes she has helped implement and offers some thoughts on future strategies. The role of the accountant is changing and it is becoming ever more important to recruit people from different backgrounds who have a variety of skills and talents, says Christina Earls, outgoing AAT President. Equally important is the support that AAT can give to existing members in order to help them stay up to date with CPD and grow into new career opportunities. One of her priorities this year has been to revive the AAT local branches, which are a unique way for members to keep in touch, explore CPD opportunities and provide mentoring and networking opportunities. Many of the 80 AAT branches closed during Covid and it has been a key part of Christina’s mission as President to help get these branches up and running again. “They provide invaluable support to members all around the country and help to support them both professionally and personally,” she says. “I have tried to attend as many branch meetings as possible during my 12-month presidency, in order to connect with members and open up the discussion around the difference that AAT accountants can make in their working lives.” The importance of ethics and sustainability When she is meeting local AAT members Christina has been keen to highlight both the ethical challenges which accountants often face, and the difference that they can make in their own communities. “I often talk about the three Ps: people, planet and profit,” she says. “Taking care of the planet is also about reducing future liabilities. When it comes to people, ensuring that we have equality and diversity is so important because we need to have a variety of talent brought to the workplace.” She stresses the role that everyone can play by incorporating ethical and sustainable practices into their work. “Even small actions and changes in mindset can contribute to a more responsible and sustainable future.” Social mobility and embracing diversity Having come from a relatively humble background herself and having had to work hard to succeed as a female accountant while also being a single working parent, Christina feels that diversity in the profession is long overdue. “Each individual possesses unique strengths and abilities and we know that recognising and using these strengths can make a real difference,” she says. “While progress has been made, there is still a long way to go in making opportunities accessible for everyone.” One way to help young people from across different social divides is to introduce accounting as a potential career path early in life and do more to attract and engage young individuals from diverse backgrounds, she says. AAT is a great way for young people to access a career and for mature students to change professions, train on the job and gain a highly respected professional qualification. Raising the standard of accounting worldwide Another key plank of her mission this year has been fostering international collaboration. This has meant being involved in webinars and discussions with accounting bodies from various regions across the world, especially Asia and the South Pacific. These discussions are aimed at finding ways to raise the standards of accounting worldwide. “This is particularly important in developing countries where professional finance and technical knowledge are needed to strengthen economies and offer more opportunities,” she says. Christina attended the World Congress of Accountants in Mumbai, and joined in discussions there around the value of UK qualifications and the importance of raising the profile of accounting technicians and the value they can bring to organisations and regions. “Across the world we need to raise the awareness of the accounting profession as a wonderful profession to join that offers a variety of amazing career opportunities,” she says. Success in working with trustees As a charity and company limited by guarantee, AAT’s Council members are both trustees and Directors of the Association with defined responsibilities. Christina has been working closely with chief executive office Sarah Beale and her team. Together with the AAT trustees they have come up with a strategy which will make AAT robust and ready for the future. This has involved consulting on a new organisational design and revamping the AAT student qualifications, both of which are needed in order for AAT and its members to innovate and stay relevant in a rapidly changing environment. “In terms of the qualifications, all professional accounting bodies should be doing this every four to five years,” she says. “We are listening to members and employers about what they want and need. Society is changing all the time and we need to move with the times.” Future-proofing AAT As her presidency draws to a close Christina reflects on the opportunity she has had to raise awareness of the important role that accounting technicians bring to the accounting profession. “My role has been to highlight the importance of our members keeping their technical knowledge up to date through CPD, reviving the local branches after many closed during Covid and ensuring that the AAT qualification stays relevant for students who want to open up their career in accounting,” she says. “We have 50,000 members worldwide. The way to stay relevant is to enhance technical knowledge, improve skills and behaviours and keep learning,” she says. “AAT is here to support students and members on that journey and enable them to develop their full potential, whatever their career goals.”
How MKS boosts its business with AAT apprentices Posted 09/08/2023 by Marianne Curphey & filed under Apprenticeships, Case studies, Members. Early Talent Manager Jez Brooks explains how AAT apprentices are contributing to Moore Kingston Smith. “Our juniors have always been essential to the job. They’re not wrapped in cotton wool, they’re not protected, they have real responsibility and they make a genuine contribution to the business from the outset.” So says Jez Brooks, Early Talent Manager in charge of recruiting new AAT trainees at Moore Kingston Smith (MKS), an accountancy firm with six offices in London and the South East. He argues MKS’s approach to using apprentices fosters client relationships, ensures continuity in client services and contributes to the firm’s long-standing presence in the community. So what motivates MKS to use apprentices? The apprenticeship programme at MKS has been in place for several decades and is well-established within the organisation. The programme has evolved to provide opportunities to career starters, career changers and those returning to work. “Our apprentices bring energy and vitality,” says Jez. “In a sense, we are looking for unpolished diamonds. It is important that they can adapt to change because this is a changing industry. They need to be open-minded and flexible about what they want to do and where they might go.” In return, the apprenticeship programme opens up a broader talent pool for the organisation. It allows the firm to attract not only university graduates but also school leavers who might still be living in the local community. This approach builds relationships with local schools and colleges, providing a clear career path for students interested in local employment opportunities. There’s a need to dispel the notion that university is the only path to a successful career. School leavers today are more informed and aware of career pathways beyond just university. Jez Brooks, Early Talent Manager at MKS MKS’s apprenticeship pipeline and how it implements its scheme MKS provides professional services, audit and accounting and has around 750 staff, of which around 180 are trainees and around 30 are on the AAT apprenticeship route. MKS offers a two-year apprentice programme, with trainees studying AAT Level 3 and 4 Jez and the team use multiple recruitment channels, including specialized websites, to help attract a diverse pool of applicants. Offering real client exposure and responsibilities from the outset enhances apprentices’ learning experiences and makes the firm an attractive place to work. Establishing a strong support network, including buddies and training managers, helps apprentices succeed. The programme enables trainees to take on increasing responsibilities as they progress through the qualification. By the second year of their apprenticeship, they can supervise new junior trainees and handle more complex tasks. As apprentices move through their apprenticeship journey and obtain their qualification, they become qualified supervisors and can advance to higher positions within the firm. At the entry level Part of MKS’s apprenticeship pathway is helping AAT students understand how a business works and what’s expected of them. There have been discussions around whether there is a skills gap between the expectations of employers and the skills of new graduates and apprentices. Jez says that while generational differences exist, it’s important to note that the apprenticeship programme focuses on developing skills required for the workplace. “The behaviours that you expect of a person in a professional services accounting firm are actually pretty much the same behaviours you’d expect someone in retail, finance or tech sector,” he says. “You have to engage, listen and be part of the team. You have to be able to communicate. So that’s why when we recruit, we do so on the basis of transferable skills and potential for the future. We will then train the person in the requisite professional competence capability to do that job.” Ensuring accountants are real-world ready “AAT students make a real contribution to our teams and to our business success as a whole,” Jez says. “Our juniors are an important part of the team. Wherever they’re working, they’re making a contribution. They are delivering our revenue work, and they are billing time to our clients. “We are giving our trainees responsibility from the outset,” he explains. “They are not shadowing in terms of the roles that they do. They are part of the client accounting and audit teams and they have responsibility for not just doing the basic work on an account but progressively more complex and supervisory work.” The way apprentices progress Jez says that while there may be some initial differences between AAT apprentices and university graduates in terms of life experience, the work experience and skills acquired through the apprenticeship programme eventually level the playing field. AAT apprentices, with their practical work experience and AAT qualification, are positioned to achieve the same career progression and opportunities as graduates who follow the university route. Indeed, by the time their training is over, AAT accountants have developed highly valuable personal and professional skills which open many career paths, including eventually becoming a partner. The AAT apprenticeship program allows trainees to reach chartered status within four years, compared to the three years typically required for university graduates. However, the real work experience gained by AAT apprentices over the four years gives them a strong foundation for career growth. Ultimately, the manner in which individuals entered the firm becomes less significant as they progress and excel in their roles. Branching out The AAT apprenticeship route at MKS can lead to obtaining recognised qualifications, including chartered status, and allows for progression into different areas within the accounting field, such as audit, general practice, tax, corporate finance, financial advisory services, and more. “The apprenticeship scheme gives you a good basis to work from but doesn’t necessarily commit you to forever only doing one kind of role as an accountant,” says Jez. “There are lots of different ways in which apprentices can progress”. Plus, “apprenticeships are a terrific route into a career. The AAT qualification establishes you on a path to a career but if you want to change, then that’s absolutely fine. It’s about building skills and knowledge for the future, creating an employable person who can communicate and work as part of a team. Those skills are vital in any job in any sector.” So which applicants does MKS go for? “We are looking for energetic and dynamic individuals who are open-minded and flexible,” says Jez. “These traits are crucial due to the evolving nature of the industry and the changing needs of clients. The younger generation, particularly Gen Z, is digital-savvy and capable of understanding the impact of digital advancements on the field.” To be considered for a role, applicants need 96 UCAS points, or three A Levels at grade C or above, or International Baccalaureate or BTech qualifications. They do not need to have any prior accounting knowledge and the apprenticeship program allows trainees to start their accounting careers with practical work experience on the job. Conclusion The AAT qualification provides a clear pathway for apprentices to progress as accountants or auditors It offers essential grounding in various disciplines, making apprentices well-rounded professionals Practical skills gained can be applied in real-world situations, such as accounts preparation and audit planning AAT apprentices can build relationships with clients and junior trainees, taking on supervisory roles as they progress Apprentices gain confidence, capability, and qualifications while working on real tasks.
Time to get tough on late payment Posted 09/07/2023 by Adam Harper & filed under Members, Policy, Prompt payment. With UK businesses still struggling against multiple headwinds, addressing late payment could help many survive. For smaller firms in particular, getting paid on time is perhaps the single most important factor inmaintaining a healthy cash position. If cash is the oxygen supply that keeps a business alive, thenpaying late effectively chokes smaller suppliers, endangering their survival. Worrying trends Late payment to smaller firms is a stubbornly difficult problem to fix. Unfortunately, the problem is getting worse. According to Xero’s Small Business Index, based on anonymised and aggregated data from hundreds of thousands of small businesses, “In the UK invoices are paid significantly later (8.2 days) than they are in Australia (6.5 days) and New Zealand (6.2 days).” SMEs are still sometimes forced to accept 60, 90 or even 120 day terms from their larger customers. The Office of the Small Business Commissioner’s (OSBC) own figures underline the scale of the issue: a third of payments to small businesses are late, with the average value of each payment is £6,142. It says 20% of small businesses have run in to cash flow problems due to late payments, and says that if small businesses were paid on time, “This could boost the economy by an estimated £2.5 billion annually.” “It’s not uncommon for companies to use extended payment terms as a method of increasing working capital,” says Andrew Dunn, Director at Valley Accountancy in Whitley Bay, who kick started his accountancy career by studying with AAT and is now a full member. “I have seen more than a few companies go out of business due to desperately trying to work with large organisations, who demand payment terms increasing from 30 days up to 120 on a take it or leave it basis.” The result is stark: businesses struggling to stay afloat as cash flows dry up. The stats back that up: the Centre for Economics and Business Research (CEBR) reported 6,700 business closures in Q2 2023 with an estimated 7,000 per quarter in 2024. And with a recession forecast due to high borrowing costs, the cost of living crisis etc is only going to make larger companies hang on to cash for longer. Urgent help required The accounting profession is on the front line. Andrew Dunn says much of his work centres on equipping clients with the necessary tools and procedures “We take them through what needs to be explicitly stated in contracts, we offer credit control services, debt collection templates and advise when sometimes, it is best to walk away from a large customer.” Numerous guidelines and codes have been devised and introduced to tackle the problem. In the UK, the main tool is the Prompt Payment Code (PPC), which requires those businesses that are signatories to it, to pay 95% of invoices from businesses with fewer than 50 employees within 30 days, amongst other measures. Currently the PPC is voluntary. The Code is overseen by the OSBC, which promotes best practice in payment to SMEs and lobbies. The OSBC was designed as an advocate for the SME sector, but its statutory powers are limited. As result, UK SMEs remain vulnerable to late payment. Clearly, action is needed. Tackling the issue Thankfully, the urgency has been recognised by MPs, who have indicated a desire to increase enforcement around late payment. The most recent survey conducted by YouGov on behalf of two of the UK’s largest accountancy bodies – the Association of Accounting Technicians (AAT) and the Association of Chartered Certified Accountants (ACCA) – showed that nearly two-thirds (65%) of MPs think the Prompt Payment Code (PPC) should be made compulsory for organisations with over 250 employees. The second lever that MPs are considering pulling is to hand more powers to the Small Business Commissioner. The survey revealed that over half (54%) of MPs agreed that the OSBC should be able to impose financial penalties for persistent non-compliance with the PPC. It should be said that separate data from the Federation of Small Businesses (FSB) revealed the majority of small businesses experienced a late payment in 2022 – leading to 40% of SMEs applying for credit to manage their cash flow. This comes at a time when the government is assessing the responses to its Statutory Review of the OSBC’s effectiveness. There are limits to every initiative, but if so many legislators recognise the urgency of the issue, then surely giving more power to those invested in helping SMEs must be part of the solution. As accountants in business and in practice, we are at the sharp end of this issue, so it’s important that as a profession we speak with one voice in our support of greater support for small businesses.
Make the most of social media networking Posted 09/07/2023 by Annie Makoff & filed under Digital skills, Members, Networking. Accountants explain how they stand out from the crowd. Networking has always been an essential part of an accountant’s role. Nowadays however, many networking opportunities happen online through social media channels such as LinkedIn, Instagram Tiktok or X (formerly known as Twitter). While some accountancy firms predominantly use social media to recruit either by posting hiring opportunities or asking for recommendations, others may use it more regularly to find new clients. Forums and special interest groups too can help both accountants and accountancy students feel connected and share knowledge and ideas. Online networking can increase sales, help business growth and promote personal knowledge and experience. Social media networking is a world apart from in-person events – which still have their place – in terms of being more time efficient and much more global. Yet therein lies the problem: everyone is using social media for the same purpose. Standing out from a sea of profiles is getting harder. We spoke to accountants who regularly network via social media to find out how they differentiate their profile and personal brand. Treat your social media profile like a CV even if you’re not looking for work Andy Murray MAAT AATQB, Finance Manager and Company Secretary, Galson Sciences I really appreciated online networking when pandemic restrictions were in place. If things outside had lost the personal touch, you could still reach out to people and network in some shape or form online. I love how accessible and flexible it is – you can share knowledge, exchange ideas, reshare content and connect with people – all at the click of a button. One way I ensure my profile stands out when building connections is by being clear and concise with the information I share – I make sure it’s easy to read and digest, and that my profile feels friendly and welcoming.One of my pet hates is acronyms: I’ve been in the accountancy sector for ten years and there are still situations where I’m reading profiles and find myself thinking ‘what is that? What does that stand for?’ so when using acroynms, always explain what it is. It’s also really important to include soft skills, too: communication, teamwork and presentation skills. Shout about your qualifications, even if they’re not directly related to accountancy, it’s all transferrable. Even if you’re not looking for work, treat your social media profile like a CV – use it to sell yourself. Verdict: Be clear and concise with information shared, avoid acroynms and treat your profile like your CV – use it to sell yourself. I’m continuously changing my profile because I’m forever learning Freelance practice accountant and bookkeeper Natalia Micu AATQB I use networking to help me find new clients as well as knowledge share with other accounting professionals. I can keep updated with news and accounting laws and develop new skills. As an introvert, social networking improves my social wellbeing because it can be hard to interact in person sometimes. The way I ensure I stand out is by continuously changing and adapting my profile on LinkedIn because my professional skills are continuously changing, too. I prefer to lead by example – it’s about showing people that no matter your age or experience, you always have something new to learn. And when I post or share articles, I’m always open and straightforward in my ideas and options – it’s about being genuine and authentic. As a mentor, I have pupils all over the world and it’s important that when connecting with them via LinkedIn, they can see I’m being authentic in what I post and share. Verdict: My profile reflects my continuously changing skills and experience, and is authentically me. People buy from people – so be authentic Claire Bartlett, Director, Arden Bookkeeping Networking helps me build brand awareness but importantly, helps me build a community of like-minded peers who understand the downs and celebrate the wins with you. I mainly use LinkedIn for networking but I never do ‘cold connecting’ or direct messaging. It annoys me when people do this to me. Instead, I grow my network through my existing connectons: people they are connected to who interest me or whose views I agree with, or people I’ve met previously at events. The key to successful networking is creating posts that come straight from the heart. People buy from people, so if you can showcase who you are, you morals and values, people will come to you if they align with their own values. Through LinkedIn, I have made some great connections who I now consider friends, and I hope to continue doing so. Owning a business can be a lonely and difficult place to be so being able to find like-minded individuals to chat to and share experiences with is key for my sanity. Verdict: People buy from people, so be authentic and create content that comes straight from the heart.
Managing finances a big challenge for 75% of entrepreneurs Posted 09/06/2023 by AAT Comment & filed under Artificial intelligence, Members, Tax. A new study from Sage reveals the importance of sound financial advice to start-ups, and a potential opportunity for accountants. Sage’s research looked into how supported entrepreneurs felt in their start-up journey. Although the study largely focused on differences in gender-based and regional lines, there are some key take-aways for start-ups and accountants in general. Accountants can bridge the knowledge gap Alongside managing finances, entrepreneurs’ biggest obstacles included understanding tax requirements (74%), becoming profitable (74%), work-life balance (71%) and minimising costs (68%). They also feel they need to develop and improve upon financial management (37%), tax (33%), and stock management (24%). Many entrepreneurs are still facing these issues, which serves to highlight the potential importance of accounting roles in the start-up world. Furthermore, over a quarter (27%) of entrepreneurs felt they were not aware of what technology is available to them and what they should use, such as accounting applications and other financial management tools. Technological help The rise of cutting-edge technologies, such as artificial intelligence (AI), may also prove instrumental in relieving the burden of certain tasks. Approximately 68% of respondents reported moderate to extensive use of technology and digital tools like accounting applications and inventory management software. Accountants can leverage these tools to streamline business operations, enhance productivity and expand customer reach more efficiently. About the study Sage’s study focused specifically on how supported female entrepreneurs felt and where in the country female start-ups did best. The research delved into the areas where women entrepreneurs have found their footing, the obstacles they have faced and the support systems that have aided their start-up journey. The North East ranked highest. There, 81% of female entrepreneurs reported feeling supported as they embarked on their business ventures, and 69% of them highlighted their ability to manage the delicate balance between work and life commitments.
HMRC Update – phased move to Customs Declaration Service Posted 09/04/2023 by AAT Comment & filed under HMRC updates, Tax. Updating your address digitally when you move home, phased move to Customs Declaration Service for exports, guidance for first-time Self-Assessment filers. Moving home – clients can update their address digitally August is the most popular time for house moves. Moving can be a busy time with lots to consider, and HMRC don’t want customers to miss out on money they’re entitled to and/or any actions they need to take. So, they’re making it quicker and easier for customers to tell HMRC when they change their address on GOV.UK or through the HMRC app. Following recent improvements to the online service, customers can now update their address within minutes and get instant confirmation to reassure them that it’s done, with no need to call. Please remind your networks that, if they move home, they can easily and quickly update HMRC with their new address online or on the app. Phased move to Customs Declaration Service for exports There will be a phased approach to the deadline to move to the Customs Declaration Service (CDS) for exports. Some businesses may still be able to start making export declarations through CDS by Thursday 30 November 2023. Businesses will be contacted by HMRC or their software developer with further support if this option is available to them. All other export declarations should be made on CDS by Saturday 30 March 2024. This decision was taken in consultation with industry trade partners to allow businesses more time to prepare and to ensure the IT system is thoroughly tested. More information about the phased approach to CDS migration is available on GOV.UK. HMRC will continue to provide guidance about the Customs Declaration Service to support businesses making declarations through CDS, and this information is available on GOV.UK. Guidance for first-time Self Assessment filers HMRC is reminding individuals who need to submit a tax return for the first time, or who no longer need to because their circumstances have changed, to tell them by the 5 October 2023. They can use the free online tool on GOV.UK to check if they need to complete a tax return for 6 April 2022 to 5 April 2023 tax year. Guidance on whether they need to complete a Self Assessment tax return this year, including information about how to register for Self Assessment and what they’ll need to do if they stop being self-employed is available on GOV.UK. Please encourage your networks to check whether they need to file a tax return, and if they do to register by 5 October. New Alcohol Duty rates and reliefs were introduced on 1 August 2023 Changes to the Alcohol Duty structure, which include new rates and reliefs, have been in place since 1 August 2023. Here are the main changes: A Small Producer Relief, which supports smaller producers of alcoholic products with a discounted rate of duty A reduced rate for draught products, also known as Draught Relief, which supports the hospitality industry by charging a separate, lower rate of duty on qualifying draught products Transitional arrangements for producers and importers of some wine products, which supports those businesses with moving to the new method of calculating duty on their products. Small producers of alcoholic products can also use the Small Producer Relief calculator to work out how much duty they need to pay on GOV.UK. Your networks can read more about the Alcohol Duty changes in English and Welsh on GOV.UK. Email updates, videos and webinar recordings for Alcohol Duty are also available on GOV.UK.
Bounce back loan SARs: what good looks like Posted 09/01/2023 by AAT Comment & filed under Anti-money laundering, Members, Webinars. ICAEW is offering non-members free, on-demand access to its webinar on bounce back loan SARs. Don’t miss out. The webinar is a presentation by the Financial Intelligence Unit (UKFIU) of the National Crime Agency (NCA) and National Investigation Service (NATIS) on what constitutes a good quality suspicious activity report (SAR), focusing on bounce back loan (BBL) fraud and misuse of other Covid support schemes. Whilst the webinar is aimed at the Restructuring & Insolvency Community, it is open to all firms including accountants and bookkeepers. The webinar will guide you through: the roles of the UKFIU and NATIS indicators of BBL fraud what information you can include in a SAR to assist NATIS in bringing a successful action against the perpetrator of the fraud. You can register for and access the webinar here.
What accountants are doing to keep clients green in the cost-of-living crisis Posted 08/31/2023 by Annie Makoff & filed under Climate change, Members, Sustainable Business. Business priorities for many SMEs have moved from environmental commitments to survival. Here’s how accountants are helping clients make the best of a bad situation. Despite growing consensus that greener business practices are essential, the cost-of-living crisis is forcing some firms to press pause on environmentally friendly initiatives. Survival is the more pressing concern, so businesses are prioritising revenue and attracting customers and clients. Accounting for a better world Discover other ways to keep your clients green with our sustainable finance course collection. Browse our courses A body of research finds UK businesses are struggling to juggle environmental demands and managing money issues. Research for the British Standards Insitution (BSI) annual Net Zero Barometer showed 22% of businesses surveyed aren’t ‘currently’ committed to becoming net zero. A further 18% felt they weren’t ready to meet government targets. Some businesses (29%) are so focused on navigating the economic crisis that they’re prepared to face future penalties over their lack of progress to net zero. Separate surveys by small business lender Iwoca and financial services company Novuna produced similar results. Meanwhile, research by Veolia found just 29% of UK businesses have actually committed to net zero. The lack of government support and tax incentives is putting off many businesses, especially given the current climate. Who can blame them? This backdrop means that environmental, or ‘green’ accounting – which balances financial, environmental and social costs in relation to business activities – is all the more important. Accountants can help clients’ businesses meet targets and embrace environmental practices by: Identifying business practices which cause environmental harm (eg, supply chain emissions, landfill, use of harmful chemicals, etc). Going paperless. Carrying out environmental audits. Switching to greener energy suppliers. Here, accountants explain how they’re helping their clients do what they can. I’m advising about environmental incentive schemes available Francis Fabrizi, Keirstone Ltd Some of my clients are reluctant to prioritise green initiatives, mainly due to upfront costs and uncertainty about potential return on investment. There’s also a lack of government support and a limited number of government grants and tax incentives. I’m working hard on educating clients about the benefits of going green: it can save money, improve the bottom line and boost reputation. I also help identify government grants and tax incentives, and work closely with clients to develop a plan to implement green initiatives. In particular, the initiatives and schemes I’m currently supporting clients with include: The Low Carbon Buildings Programme, a business grant for energy-efficient building improvements. The Carbon Emission Reduction Target (CERT) scheme, which requires energy suppliers to help their customers to reduce their carbon emissions. The Energy Saving Trust, which provides free advice and support to businesses on energy efficiency. The Green Business Directory, which lists businesses that offer green products and services. Verdict: I’m advising clients on the green initiatives, grants and schemes that are available to businesses. We’re providing specialised green-focused accountancy services Steve Aston FCCA, Director, AGS Accountants and Business Advisors Our clients range from small start-ups to larger, more established enterprises and they’re all making concerted efforts to reduce their carbon footprints whether through waste reduction, use of renewable energy solutions or sustainable supply chain management. However, the cost-of-living crisis is restricting spending power so many clients are having to delay investments which would potentially make their business more environmentally friendly. For example, in Birmingham – where we’re based – many of our clients are affected by the new clean air zone requirements. They now need to make existing fleets of vehicles comply with these new zones, which is an expensive transition. The transition to sustainability is rarely straightforward, given the myriad complexities such as compliance with ever-changing environmental regulations and upfront costs of sustainable technology. Yet clients view these challenges not as obstacles but as stepping stones towards a greener and more sustainable future. We’re supporting them by: Offering specialised accountancy services focusing on financial aspects of sustainability through carbon accounting, securing green grants or tax planning which takes advantage of government incentives for sustainable practices. Providing advice on a range of green subsidiaries and tax incentives. Running a green tax and electric car awareness campaign. Verdict: We offer specialised, environmentally focused accountancy services as well as advice on green subsidiaries and tax incentives. We’re preparing for ESG regulations by promoting better data handling and reporting Neil Parsons, Managing Director, Wolters Kluwer Tax & Accounting UK Green initiatives are extremely important, but with the cost of living crisis and other financial strain, some companies may elect to push these initiatives further down their priority list. Yet Environmental, Social and Governance (ESG) has become one of the defining trends for business in recent years, and companies both big and small will have to prove and report on their compliance in the near future. Digital transformation will play a key role and there’s no time like the present to explore what it will take to get your sustainability data in line, and your reporting functionality fit for purpose. We’re therefore promoting better data handling and better reporting practices to help companies demonstrate the strength of their green initiatives. Accountancy firms know their own clients may ask questions surrounding their sustainability position, and accountants must be equipped with the appropriate answers. Having an ESG strategy in place is essential to ensure accountants meet the requirements of customers and stakeholders. Verdict: All firms will soon have to demonstrate ESG compliance so we’re promoting better data handling and reporting to ensure clients are ready. Accounting for a better world Discover other ways to keep your clients green with our sustainable finance course collection. Browse our courses