Will the Northern Ireland protocol benefit business? Posted 03/23/2023 by Annie Makoff & filed under Brexit, Members, News. Scrutinising the Windsor Framework. Legislation for the Windsor Framework – the Northern Ireland Brexit agreement between Britain and the EU which rewrites the Northern Ireland Protocol – is making its way through Parliament. It was first made between PM Rishi Sunak and EU Commission president Ursula Von Leyen at the end of February. The Northern Ireland Protocol initially aimed to avoid a hard border between the Republic of Ireland (which remains in the EU) and Northern Ireland (which is UK territory) by ensuring Northern Ireland remains subject to EU custom rules. But a section in the Windsor Framework known as the Stormont Brake, now gives Northern Ireland more powers to block or challenge any new or future EU rules, if absolutely necessary. In essence, the Windsor Framework comprises three elements: Movement of goods from Great Britain to Northern Ireland Northern Ireland’s VAT status Governance of the amendment Northern Ireland Protocol. The new arrangements involve: Green lanes: for goods destined for Northern Ireland. These will not be subject to checks and requirements. Red lanes: for goods ‘at risk’ of moving into the Republic of Ireland and the rest of the EU. These will be subject to standard third-country checks. Parcel simplification: to remove custom requirement bureaucracy on some parcels. VAT: introducing more flexibility on future VAT rates in Northern Ireland under certain conditions and exempting Northern Ireland-based businesses from many EU rules. So what does all this mean for businesses? The framework will make NI more attractive to overseas investors Ashley Ritchie, Director, Campbell Ritchie Chartered Accountants (based in Northern Ireland) The majority of my clients are in Northern Ireland with some in mainland UK and south of Ireland, so I’ve had to learn a lot new rules after Brexit. The Windsor Framework will simplify Northern Ireland’s VAT system, allow for some exemptions and establish new categories for goods consumed within the region. It will also remove more than 60 EU rules which govern food and drink coming into Northern Ireland. For example, M&S didn’t sell Christmas puddings this year because of the Northern Ireland Protocol and if I order Hello Fresh, I can only select chicken or meat-free products. Under the framework, food destined only for Northern Ireland must be labelled ‘not for EU’. This labelling will start in October for prepacked meat and milk. Parcels being delivered into the country will also have a simplified process which is welcome news. If parcels are below a certain limit, they won’t have any customs formalities. Overall, the new scheme will benefit many industries in Northern Ireland – food, gardening/plants, medicines and haulage just to name a few. Plus the use of green and red lanes for imports is an improvement to the current system. It gives Northern Ireland the best of both worlds and is a great selling point to attract investors from other countries like the USA. Verdict: The framework will be of great benefit to Northern Ireland’s businesses, remove over 60 EU rules and help attract investors to the region. Businesses will see reduced red tape and costs as a much better deal Richard Phillips, VAT Manager, PKF Francis Clark The Windsor Framework reflects a significant reduction in the volume of ‘red tape’ and regulatory costs following Brexit. Businesses in Northern Ireland and the rest of the UK will see this as a much better deal. The EU has shown a very conciliatory attitude to help bring Northern Irish business back under the UK umbrella. But it is a concern that the DUP, despite the concept of the Stormont Brake, is not able to agree with the framework in total. Declarations will still be required, but far less data will be demanded. A new online portal is proposed where businesses or agents can input standard information from commercial invoices and freight contracts. The big gain is that goods destined for companies supplying Northern Irish consumers may enter via a green lane without Border Force checks, provided the supplier or purchaser has the required scheme registrations. This green lane system is to be known as the ‘UK Internal Market Scheme’. In addition, the agreement to cease EU regulation on Sanitary and Phyto Sanitary products and to lift the ban on GB chilled meat products destined for Northern Ireland markets are welcome news. Supermarkets, wholesalers, nurseries and hospitality trades, which have suffered since Brexit, will all benefit. GB suppliers and Northern Ireland purchasers should be reviewing their supply chain structures to ensure they have necessary registrations. Those already registered with the UK Trader Scheme (UKTS) will be automatically moved over to the new UK Internal Market Scheme. Verdict: Reduced red tape and fewer data demands will alleviate pressure on businesses. The framework will reduce administrative burden and VAT rates on certain products Gerry Myton, Partner, Head of Indirect Tax, HW Fisher As part of the Windsor Framework deal, the EU has agreed to cease legal action against the UK whilst the UK will drop parts of the Northern Ireland Protocol Bill. Meanwhile, a Stormont Brake gives Northern Ireland a mechanism to stop the application of amendments to or the replacement of EU law as applied to Northern Ireland. There are three noteworthy changes relating to VAT: The UK can apply reduced VAT rates on goods supplied and installed on immovable property located in Northern Ireland The UK does not need to apply the special EU VAT scheme for small enterprises in NI from 1 January 2025 The EU and the UK will work to establish a list of goods not at risk of entering the EU and therefore, not subject to EU VAT rules. Businesses and customers will benefit from these changes. Businesses now have one set of rules which will reduce the administrative burden, while customers will benefit from reduced VAT rates on certain products that will now apply across the entire UK. Under the Green Lane scheme, more businesses will be able to register as ‘trusted traders’ and goods will move into Northern Ireland without the onerous customs checks and provision of paperwork that previously existed. Checks in the green lane will involve risk-based tracking methods that will allow the EU real-time access to UK customs systems. Verdict: The framework will reduce the administrative burden and VAT rates on certain products. The green and red lane system will speed up transportation of goods Paul Samrah, Partner and Brexit specialist, Moore Kingston Smith The Windsor Framework represents a vast improvement for businesses compared to the current arrangements. It is simpler, clearer and requires much less paperwork. The deal promises frictionless crossing of sea, which will no doubt ensure a smoother operation all round for businesses. Representing a welcome reduction of red tape, businesses using the new green lane will find it no different sending goods from London to Londonderry than they do from Liverpool to Leith. For the transportation of goods from Lands’ End to Limerick, the red lane must be chosen – but there will be far less traffic in that lane due to the provision of a streamlined green lane for goods that won’t be going on to Ireland. It’s a straightforward and practical solution that the owner-managed businesses we work with welcome. Businesses must make sure they have the right paperwork in place – they will need to register as a trusted trader under the new UK IMS Internal market scheme. And of course, they must choose the correct lane. A review of the deal will take place in 2026, and at five-year intervals following entry into the agreement. At this juncture, both parties will consider what works and what doesn’t, and have the opportunity to update the deal by mutual agreement. Verdict: The deal will speed up transportation of goods thanks to green and red lane system. Registering as a trusted trader for green lane eligibility will still require a lot of paperwork Rob Janering, VAT Partner, Crowe On the face of it, the Windsor Framework seems like a good deal and should make things easier for many businesses. However, there’s still likely to be a lot of paperwork involved, even for businesses whose goods meet the green lane criteria (where goods are only going as far as Northern Ireland) – they will need to register as trusted traders. It’s not entirely clear what this will involve. Inevitably, there will need to be regular checks on trusted traders to ensure supply chains and internal controls continue to meet the criteria. For goods that are going to the Republic of Ireland and/or the rest of the EU documentation and paperwork required will be the same as before. And businesses whose goods might otherwise meet green lane criteria but aren’t yet trusted traders will need to use red lanes and submit required paperwork. My main concern is that the Windsor Framework will be more beneficial to big businesses which will have the time, money and resources in comparison to smaller SMEs, which may struggle. But the details of how all this will work in practice is still under consultation. Although the framework will not come in until at least 2024, businesses should be preparing now: reviewing supply chains, ensuring they can identify exactly where their goods are going and improving and reviewing their governance practices, internal controls and due diligence. Verdict: Registering as a trusted trader for green lane eligibility will still require a lot of documentation and paperwork, which is not idea for SMEs.
Take control of your career with strategic upskilling Posted 03/21/2023 by Neil Johnson & filed under Career-boost, Members, Skills. How to gain the skills and experience to help achieve your goals. FloQast, provider of accounting workflow automation software, has found that 53% of accountants are not sure they will stay with their current company in the next year. Of those, 63% aren’t sure they’ll even stay in the industry. With so much unrest, make sure your career moves are strategic ones. As finance professionals, continuous learning is more than encouraged, it’s often obligatory. But let’s say you have a fairly clear idea of how you’d like your career to flow; how do you go about gaining the skills and experiences that will help you to achieve your goals? Plan, plan, plan “If you have a career end goal in mind, then you need to work out what boxes you need to tick off to get there,” says Gary Darlington, Associate Director at Robert Walters UK. “Speak with individuals that are in that position and seek advice as to how they navigated through their career to get where they are today. “Put a two, three, five-year career plan in place and work out what job role moves you need to make to get where you want to be. It might be that those opportunities are not available in your current business, so you may need to move on to gain that experience. You may even need to make two or three moves to get all those boxes ticked, but always have sight on the end goal.” Stay in the know It’s key to keep moving with the times and ensure your skills are relevant and up to date, so Darlington suggests building a network outside your current business and peer group, ensuring you are constantly learning from others outside your usual network. “Ensure you are abreast of industry news and aware of what’s on trend and upcoming and seek to gain those skills. Attend networking events, CPD seminars, join industry-relevant LinkedIn groups and take online learning courses to keep your skills and knowledge up to date.” Steve Sully, Regional Director, Finance & Accounting, at Robert Half, recommends following general recruitment trends in the market and benchmarking your skills. This together with having an honest and open discussion with your employer is hugely beneficial in guiding your journey. “Knowing what direction they expect your career to take can help identify any upskilling needs or even any disparities between what you want and what your employer expects of you.” Stay resilient Let’s say you’re focused on remaining resilient amid uncertainty and you’d like to be ready for anything – a good idea given how the pandemic took everyone by surprise. “When looking at any upskilling opportunities, it’s important to consider what will be valuable outside of your sector requirements,’ says Sully. “Tech and digital skills, for example, are in demand across the board and have a part to play in almost every role. Having specific training in this remit on your CV will certainly stand you in good stead. “In addition, given the volatility of global markets today, being adaptable and resilient is key to most jobs. These may be much more difficult to learn but will certainly prove valuable not just in any career moves, but also in managing your current role.” Become a specialist When focusing on your ultimate end goal, consider the qualifications that will help you get there. It might be that you need to continue your accountancy qualifications through CIMA, ACCA or ACA, and even further down the line you might consider more specific qualifications in tax, forensics, data analysis or management – there are so many courses you can do to support career progress. “Find out what suits you and supports your career goals best,” says Darlington. “You can also investigate what support there is from your internal HR/L&D function. Many companies have mentoring/buddy schemes, make sure you are utilising these and if you are moving companies ensure you explore what their appetite is to support your development.” Evergreen modern skills Certain skills, knowledge and experience will set you apart in any situation. Businesses are hungrier than ever for information to support decision-making, so the ability to manipulate data using software or Excel is vital – particularly when a business’s systems struggle to provide this intel, says Darlington. “Being able to improve the information coming out of finance and improve/shorten processes will stand you in good stead. Alongside this, being able to build strong stakeholder relationships with non-finance colleagues and become their go-to finance business partner will raise your profile and put you in line for future promotions.”
7 ways to succeed as an accountant Posted 03/20/2023 by Marianne Curphey & filed under Career. Accountancy is changing, and your AAT training and qualifications are changing to reflect that and prepare you for your first job. When you graduate, what skills and experience will enhance your career the most? We look at what students need to develop in order to have a fulfilling and successful accountancy career in a changing world. 1. Embrace technology but know where to add value “Many students and graduates already have a better grasp of cloud and accounting technology than their predecessors, as well as a good understanding of the importance of lifelong learning and upskilling,” says Neil Parsons, Managing Director of Wolters Kluwer Tax & Accounting UK. “This provides a brilliant foundation to flourish in what is becoming an increasingly digital and data-focused regulatory and compliance landscape. However, it’s not enough to simply master accounting technology. “To excel in the world of finance, today’s graduates must be focused on the value-add they can provide while technology and automation are taking care of the reporting and back-office tasks,” he says. “They need to be prepared to innovate with the real-time data that is now at their fingertips to open up new opportunities for their clients. Critical thinking combined with today’s advanced technology is where newcomers to the industry will really make their mark, and the possibilities are truly endless.” 2. Build relationships within your profession Whether your relationships are externally focused, working more closely with clients, or based on the conversations you have with your team, your boss or your peers, the fact remains that trust, empathy and curiosity are critical in establishing these relationships. “From starting out in the industry, you may progress to manage your own team or support and advise clients on aspects of their business; whatever the situation, communication skills are critical,” says Sophie Austin, HR Partner at Monahans. In addition, employers are increasingly looking for “soft” skills, such as an ability to think strategically and critically, and clients want objective counsel and to be challenged supportively where necessary. “Of course, these skills can be developed, and doing more “extrovert” activities, like networking, will help develop confidence,” she says. 3. Enhance your emotional intelligence Working with clients, business partners and colleagues all requires a good understanding of people skills and a willingness to see a situation from another person’s point of view. “Emotional intelligence also comes with the experience of working alongside others,” says Sophie Austin. “Understanding how to communicate with different people and get the best out of those around you, recognising your impact on other and taking on feedback without seeing it as simply criticism.” 4. Develop your critical thinking skills Critical thinking skills are essential if you are aiming high, says Liz Sebag-Montefiore, Co-Founder and Director of 10Eighty, a career and talent management consultancy. Critical thinking is the ability to look at a situation and clearly understand it from multiple perspectives while separating facts from opinion and assumption. “We are talking about clarity, precision, logic, focus and objectivity brought into play as we collect data, evaluate information and make decisions,” she says. “In business it’s important to be able to balance emotions with objective evaluation approaches, especially when dealing with controversial or complex issues and topics.” 5. Embrace your advantage as a digital native Adam Zoucha, MD EMEA at accountancy automation company FloQast, says antiquated systems, a reliance on ‘bean counting’ and repetitive manual tasks are unlikely to be aligned with the opportunities that today’s Gen Z candidates are looking for. “Newcomers to the finance sector are increasingly expected to understand and embrace the technology and tools that can facilitate faster, more accurate reporting, as well as enhance team collaboration in today’s hybrid workplace. And this is no bad thing,” he says. In recent research, over half (51%) of UK finance directors said they wanted their roles to include more strategic work, and even more wanted to be involved in transformational activities (54%). Manual tasks came bottom of the pile. 6. Upskill regularly The pandemic created the greatest acceleration of technology for companies in decades and this has prompted the wheels of transformation to turn, says Adam Zoucha. “Having access to both automation and the skills to implement it, will help the younger generation of accountants accelerate through the ranks more swiftly; and even more importantly lead to more satisfying roles. By removing the burden of manual processes, automation allows teams to produce predictive analytics and data-led narratives that can support and influence C-suite decision-making,” he says. 7. Make the most of networking A lot of people don’t enjoy networking but it is an important skill to cultivate, says Liz Sebag-Montefiore.“To do it well, you need to recognise that networking works on reciprocity – you get out according to how much effort you put in.” No-one is a perfect communicator and whether you’re advising clients, or acting as a line manager, there is always support and guidance to be sought from others and improvements to be made, says Sophie Austin.“I count building your network as a continual example of upskilling, given how crucial it is for any career,” she says. “With less of a focus on in-person meetings, consider LinkedIn. It’s a very powerful tool for developing your network and providing access to a huge amount of content to expand and develop thinking. Nor should you purely focus on your external relationships – think about your internal network and how strong relationships can create opportunities in your career, from collaboration on projects to getting a promotion.”
Top tips for combining study and work Posted 03/20/2023 by Marianne Curphey & filed under Career. When you start your first job you will be studying and working. What is the best way to structure your learning? How can you make the most of your apprenticeship but make time for your studies? Here are some time management tips to make sure you have a good work-life balance: If you are on an apprenticeship scheme you will be able to study whilst working in order to achieve your career goals. Studying for your qualifications, opens up huge opportunities and potential for exciting career paths, promotion and improve remuneration. So it is important to remind yourself why you are studying and what you hope to achieve in the future. Balancing your studies with your job can be tough at times, which is why we have put together these top tips for balancing work and study. Find the right work space and prioritise the tough tasks Jonathan Scott, Tax Partner in Newcastle upon Tyne at Haines Watts, started out as an AAT Apprentice and said that whilst he was studying, he tried to remove as many distractions as possible such as his phone, television and work. “It is helpful to make a working space either at home or at work whereby when you are in that space you can solely focus on studying,” he says. “Having this dedicated space helped get my mind into the right zone to learn, free from distractions from home or work. During this time and in the specific space I could give my study the focus it needs.” He also recommends identifying study areas you are unsure of and expect to take a longer time to grasp. “I made sure that for the areas during my apprenticeship that were more difficult, I was able to allocate and spend more time on trying to learn and understand. If possible, ask your employer for exposure on these areas at work, so you can put the theory into practice.” Use as much material as possible such as past papers and questions. Practicing questions and papers develops good exam technique but also demonstrates what an examiner is expecting. Having good exam technique and knowing what an examiner is looking for allows you to manage your timings during an exam, manage the points you are trying to make and ensures you reach the end of the paper, he says. Find study groups and support networks to help motivate you “Staying motivated throughout an apprenticeship can be extremely difficult, even more so since the pandemic has moved more business to home working,” Jonathan Scott says. “Reaching out to others that are also studying can help with the isolation but also help if there are areas of the course you may be struggling to understand. Creating study groups either virtual or in person can help motivate each other and break up the studying when it can feel this is all you are doing.” Make time for your home life as well as study and work. Having this balance ensures you can focus when needed on study but you do not feel as though you are having to miss out on everything outside of this study bubble. “During my apprenticeship, a lot of my friends were at university and therefore there were times when I felt like I was missing out,” he says. “I was able to keep myself motivated by speaking to other apprentices who were in similar positions but also focusing on the goal of what gaining the apprentice would mean to me, the doors it would open for my future.” Plan how you will manage work and home commitments Creating your own unique study plan to fit around your work and home life is key. “Set aside specific time to focus on studying whilst spacing out each of the different modules so that you can digest, understand and practice,” he says. Utilising a study plan will ensure you leave yourself sufficient time between learning a new area, revising this and practicing questions prior to the exam, especially if you need to revisit a certain area should this become more difficult to grasp. “Building in contingencies for when work or home life may encroach into your studies is also essential – even the best-laid plans need to be able to change,” he says. Be productive and focussed in the time you have available If your time is short, focus on making your available study time super productive, says Chloe Burroughs, a Graduate Ambassador for the Open University and author of The Return to Study Handbook. Put your phone in another room so that you can concentrate fully on your work. “Remove distractions before you study and focus on the priority tasks that will move you forward. If you have more time available, use this to prepare further for your exams. “To set deadlines, you need to break down your tasks to get from now to your exams, and then assign them dates. Reward yourself each time you stick to a deadline.” Find out what extra support is available at work This might be extra study leave, flexible working, or mentoring from a more senior member of staff. Ideally, you should ask about this before you join an organisation, so that you know that you will be supported during your journey to becoming fully AAT qualified. The amount of support you receive will likely depend on the organisation you join, says Amanda Augustine, careers expert for TopCV. “It is about their culture, how structured their corporate and departmental onboarding process is, the number of people working in your group, whether or not they have formalised training programs for recent university graduates, and so forth.” Work smart and use your time effectively The important thing is to use your time effectively, says Nathan McGurl, founder of revision aid The Study Buddy. He advises that you draw up a plan and timetable to give purpose and direction to your studies. “Sometimes staring into a really big task can seem really overwhelming,” he says. “When we can’t see past the enormity of it all, can start to feel unachievable. Instead, divide up the tasks you need to do into smaller sections. Analyse how your study plan is working At the end of each week, spend some time reviewing what is working well and what needs to be adapted. If you haven’t achieved everything you wanted to, don’t beat yourself up – this is no time to be judgemental if things haven’t happened exactly as they should have. Anything that wasn’t done simply “Is there something that should be changed for next week?” Nathan McGurl says. “Perhaps energy is low on Wednesdays, in which case don’t schedule revision for then. It won’t always be necessary to adapt the plan, sometimes we just have a bad day.” Make time for downtime If you’re feeling anxious about your studies, it’s common to experience guilt about taking breaks. However, devoting every spare hour to work is likely to make your anxiety worse. “Our brains aren’t designed to absorb information for hours on end,” he says. “Mental well-being is reliant on having a good balance, so ensure that your study plan factors in time with your friends and doing things that you enjoy.” Stay positive about your progress and achievements Think about your long term goals and how your AAT qualifications will be invaluable in your future career. “An AAT qualification can be translated to any career field,” says Karl Eastwood, COO of Global Lingo, a leading translation and language company. “Aim high, because with your AAT qualifications nothing can hold you back in terms of achieving the career you wish for. Don’t be afraid to apply for jobs which specify that you need a degree, because your knowledge will show through in the interview. AAT gives you a good grounding in stepping business skills which are transferable to other roles and careers.” 4 tips for balancing work and study – from young AAT qualified accountants Choose your study area carefully Get a quiet space to study and find different ways to study to keep your motivation high says Emily Coltman FCA, Chief Accountant, FreeAgent. “Listen to podcasts and AAT study briefings.” 2. Think about what time of day is personally most productive for you to study “Some people like to study before work and get up early, but I needed my sleep,” says Caitlin M Davis, Audit Associate at Grant Thornton UK LLP. “I found it better to spend a couple of hours in the evenings working.” 3. Use what you are studying to help you progress at work If you work full time and you are learning about what you’re actually doing as a job, you can consolidate your study by putting it into practice when you are at the office, says Jess Brindle, finance manager of Social Chain, a digital marketing company in Manchester. 4. Talk to your employer about flexible hours It may be possible to change your working day so that you start early and can fit in extra study early in the evening, says Ellie Garratty, an assistant account with Mazars, an international audit, tax and advisory firm. “I finish at 3pm, have a break for an hour and then I begin study from 4pm,” she says. “I’ve been well supported by my manager.” Further reading: Which accountancy role is right for you? The skills employers want – and how to get them Career profiles from AAT CV tips from AAT
Is Budget 2023 good for business? Posted 03/16/2023 by Annie Makoff & filed under HMRC updates, Members, News. There are some promising headlines but they come with caveats. Budget 2023 was tipped to be a ‘boring’ budget after the controversy surrounding the last few fiscal events in 2022. So there were no big surprises – most, if not all of this year’s announcements were leaked up to a week before budget day. The aim? To bring certainty and security to the markets by playing it safe, for the most part. One of the main headliners was postponing the 20% energy bill increase. Intended to end in April, the energy price guarantee (EPG) – which limits the amount households can be charged per unit of gas or electricity – will now be extended for a further three months until June. The increase in corporation tax was also widely expected. From April, corporation tax will rise from 19% to 25% for companies with profits exceeding £250,000. However, the Chancellor also announced a new measure that would allow companies to offset 100% of UK investments against their tax bills for the next three years. The measure, which replaces the super deduction tax break, allows companies that pay corporation tax to qualify for full expensing of plant or machinery investments. Also announced: • Help for loss-making R&D SMEs: enhanced R&D tax credits of 27% will be available for SMEs that spend 40% of their total expenditure on eligible R&Ds. • Childcare: up to 30 hours/week free childcare for the under fives which will be implemented in stages between April 2024 and September 2025. • Lifetime allowance – the total amount accrued in pension savings before additional tax is owed – will be abolished. • 50% increase in pensions annual tax-free allowance. • Fuel duty will be frozen for another year. So what do accountants think: has the budget brought relief and certainty to UK businesses or has it missed the mark? Focus on technology and innovation must continue to be backed by tax incentives to encourage growth and development Richard Godmon, Tax Partner, Menzies LLP It’s good to see the Chancellor recognising the importance of the technology sector and focusing on innovation in his speech. There appears to be a clear desire to provide an ecosystem to develop world-leading technology. But it is important that this desire be backed up with a clear and consistent tax incentivisation structure to encourage such businesses to grow and develop in the UK. The Chancellor announced additional tax relief for R&D-intensive SMEs from April 2023. A higher rate of relief for loss-making R&D-intensive SMEs that spend at least 40% of their total expenditure on R&D will qualify for the new rate. In addition, restrictions on overseas expenditure in R&D tax reliefs will be delayed. The previously announced restriction on some overseas expenditure now comes into effect from 1 April 2024 instead of 1 April 2023. The removal of the super-deduction would have left a significant hole and could have ended up discouraging business investment. The Chancellor has plugged the gap with a new policy, effective for three years from April. This is on top of AIA at £1 million, which will support unincorporated businesses, including larger partnerships and LLPs, which will be disappointed not to be eligible for full expensing. Verdict: The budget focuses on technology and innovation, but consistent tax incentivization structures are needed to back these. R&D tax relief and full capital expensing policy seem promising, but devil is in the detail Stephanie Hurst, Tax Director for Corporate Tax Consultancy and Personal Tax Compliance, Monahans This was very much a ‘back-to-work’ budget that seemingly bounced over several key potholes. The newly proposed full capital expensing policy could be exceptionally beneficial to businesses, helping to reduce corporation tax rates and freeing up more money for recruitment. However, as usual, the devil will be in the detail of exactly how this policy will work. What happens if a full expensed asset is sold, for example? The R&D relief appears as an additional relief over and above where we are now, which signals another hugely positive move for home-grown science and tech businesses, at least on the surface. Again, I’m eager to dig deeper into how the 40% expenditure threshold will be calculated and how the claiming system will function before giving it the benefit of the doubt. The double whammy of abolishing the Lifetime Allowance, paired with an increase of the Pensions Annual Tax-free Allowance from £40,000 to £60,000 came out of the blue. But its impact is only for a certain class of older worker; those on a lower income appear to have been forgotten. After all, who among us can afford to contribute £60,000 to their pension? Verdict: Some promising announcements around R&D tax relief and full capital expensing policies but the devil will be in the detail. The budget does not provide enough stability for businesses Richard Pilmore FMAAT, Director, RLTP Accountants The corporation tax rise will have a big impact on many UK businesses. Many businesses will fall into the increased 25% rate of tax (for profits in excess of £250,000) at a time when a lot of other costs are also increasing, so there’s definitely some concern among businesses. Increasing taxation at a time of uncertainty is unlikely to help boost the economy. Energy prices are a major concern for clients. The extension of the energy relief scheme for three months will actually prolong the stress and uncertainty because there is no hint at what may happen after July. It’s already going to be a tricky year. Overall, I think the budget has allayed some immediate concerns, but there is still too much uncertainty around what the future holds for businesses as well as individuals. Verdict: The budget falls short of providing certainty and stability for businesses and individuals in the long term. A ‘resounding disappointment’ for SMEs Nicholas Smith, Director and Head of Tax, Duncan & Toplis The Spring Budget is a resounding disappointment for SMEs across the UK. SMEs make up 99.9% of the UK economy, according to the Government’s own figures. So where is the support for them as the cost of living crisis closes doors across the nation? Chancellor Jeremy Hunt seems focused exclusively on easing cash flow concerns for larger businesses, leaving SMEs to fend for themselves at a point when consumer confidence and spending is plummeting and prices continue to climb. Childcare Childcare measures could enable more working parents to get to work, stay in work and up their hours. The government will introduce 30 hours of free childcare from the moment maternity leave ends, which is expected to reduce childcare costs by nearly 60% for parents. However, this is to be a staggered rollout, meaning that parents will need to wait years to qualify for the full offering. Enhanced R&D credits Measures to support research and development are extremely limited. These credits equate to 27p per pound spent, which business can only claim back if R&D accounts for at least 40% of overall expenditure. This places most companies out of the running and will mean very little to the man on the street trying to keep the lights on. Corporation tax At a time when the UK business community could really do with more simplicity, corporation tax increases create more complexity: • The 19% tax rate still applies for companies with taxable profits of £50,000 or less. • Companies that are part of a group or under common ownership will share the ‘small company’ tax rate under ‘associated companies’ rules. • The 25% tax rate applies to companies with profits of more than £250,000. • For companies with profits between £50k-£250k, there is an effective marginal rate of 26.5%, which seems punitive. And replacing the super-deduction with full capital expensing for the next three years will really only benefit larger businesses and not SMEs. Overall, support for SMEs is vague and unclear, despite sweeping claims designed to kick-start the economy. Verdict: Budget is too focused on big business, leaving SMEs to fend themselves. It’s unlikely to support 99.9% of businesses.
What AAT members need to know about the Spring Budget Posted 03/15/2023 by AAT Comment & filed under Members, News. The Chancellor of the Exchequer announced his Budget today with a mixture of tax breaks and increases for business. The theme of this year’s Budget was economic growth and getting people “back to work”. In his speech, Chancellor of the Exchequer Jeremy Hunt MP updated Parliament on the state of the economy, with the UK now expected to avoid a technical recession this year under new OBR forecasts, and inflation also now set to fall to 2.9% by the end of 2023. While much of the public attention has been on the Budget’s proposals to expand free childcare for one- and two-year-olds in England and extend the Energy Price Guarantee for households for three months, the picture for business was a mixed bag. The major business announcement was the replacement for the ‘super-deduction’ scheme with a temporary full-expensing regime which would allow qualifying expenditure to be written off in the year it is incurred. However, despite intense pressure from the business community, the Chancellor confirmed the increase in Corporation Tax to 25% and the introduction of a less generous Energy Bills Discount Scheme for non-domestic consumers would both go ahead as planned. E-learning: data protection and information security Data security is a whole new branch of ethics for accountants. This AAT course teaches best practice and tests your knowledge (free to members). Take the course For AAT members, the key announcements from the Budget included: A new full expensing of capital allowances regime: From April 2023, investments made by companies in qualifying plant and machinery will qualify for a 100% first-year allowance for main rate assets, meaning companies will be able to write off the full cost in the year of investment. Qualifying investments include things like IT and office equipment, vans and lorries, warehouse equipment, tools, construction equipment and kitchen and bathroom fixtures in non-residential properties. Companies investing in special rate (including long life) assets will also benefit from a 50% first-year allowance in the year of investment. Changes to R&D Tax Relief: A new credit rate will be available to R&D intensive loss-making companies whose R&D expenditure constitutes at least 40% of total expenditure. Qualifying companies will be able to claim a payable credit rate of 14.5% for qualifying R&D expenditure. The changes will take effect from 1 April 2023 with eligible companies able to claim once the Finance Bill has received Royal Assent. Pensions reform: The Annual Allowance, Money Purchase Annual Allowance and minimum Tapered Annual Allowance are all being increased from April 2023. The Government is also abolishing the Lifetime Allowance Charge, before abolishing the Lifetime Allowance altogether in a future Finance Bill. Transforming HMRC Guidance and Forms for Small Businesses: Over the next 24 months, the Government will conduct “a systematic review” of tax guidance and forms to make it easier for SMEs to interact with the tax system. This includes clear, simple and easy to find guidance with modernised HMRC forms and step-by-step interactive guidance. Expanding the cash basis: The Government has launched a consultation on proposals to reform cash basis for the self-employed so as to increase the number of eligible businesses and increase the use of the cash basis within the eligible population. Modernising Income Tax Services: The Government has published a discussion document exploring how HMRC can simplify and modernise Income Tax services as part of its Tax Administration Framework Review. A summary of all the relevant information in the Budget can be found below. You can also read the full Budget and accompanying documents and an overview of tax legislation and rates. If you are an AAT member and would like to learn more about the announcements in the Budget, or share your views on how it impacts you, please contact AAT’s Head of Public Affairs & Public Policy: [email protected]. Economic forecast The OBR forecasts that the UK will not now enter a technical recession this year. The economy is expected to contract by 0.2% this year, before growing by 1.8% next year, followed by 2.5%, 2.1% and finally 1.9% in 2027. The OBR forecasts that inflation will fall from 10.7% in December 2022, to 2.9% by the end of 2023. The overall tax burden will now be lower for the rest of the Parliament relative to the OBR’s Autumn forecast. The UK unemployment rate is set to rise to 4.4%. Taxation – Business Delivering agent access to payrolling Benefits in Kind – the Government will deliver IT systems to enable tax agents to payroll Benefits in Kind on behalf of employers. Confirmation that the Government will render void assignments of income tax repayments. This means that assignments of income tax repayments received by HMRC on or after the 15 March 2023 will be legally invalid. In a response published alongside the Budget to a previous consultation on the subject, the Government has confirmed its plans to proceed with plans to digitise business rates, which includes a new integrated system for ratepayers to interact with central government. The Climate Change Agreement Scheme will be extended for two further years, providing tax reliefs for companies investing in energy efficiency measures. A new set of customs measures focused on the simplification of customs import and export processes intended to reduce administrative burdens for traders. Taxation – Personal Consultation on the introduction of a new criminal offence for promoters of tax avoidance who fail to comply with a legal notice from HMRC to stop promoting a tax avoidance scheme. Consultation on expediting the disqualification of directors of companies involved in promoting tax avoidance including those who exercise control or influence over a company. Introducing changes to Self-Assessment tax return forms requiring amounts in respect of cryptoassets to be identified separately. Legislate to close an avoidance loophole that can leave HMRC out of time to assess tax due on capital gains when an asset is disposed of under an unconditional contract. Formalise and extend an existing income tax concession for low income trusts and estates. HMRC also intend to make changes to inheritance tax regulations to remove non-taxpaying trusts from reporting requirements. The Government will extend the Help to Save scheme by 18 months until April 2025. A consultation will be launched to seek views on longer term options to support low-income savers. E-learning: sustainability and finance Investors, consumers and regulators are all creating pressure for more reporting on sustainability. Find out what’s coming with this timely course (free to members) Take the course Employment and skills The Government is introducing new ‘Returnerships’, a new type of apprenticeship aimed at promoting existing skills interventions to the over-50s, focusing on flexibility and previous experience to reduce training length. £63.2 million of new investment will fund an additional 8,000 Skills Bootcamps in 2024-25 in England and 40,000 new Sector-Based Work Academy Programme placements across 2023-24 and 2024-25 in England and Scotland. A new White Paper on disability benefits reform is being published, abolishing work capability assessments and enabling benefit claimants to seek work without the risk of losing benefits. An enhancement of the DWP’s Midlife MOT strategy – “to ensure the best possible financial, health and career guidance”. Cost of living and pensions The Energy Price Guarantee will remain at £2,500 for the next three months. Customers on pre-payment meters will have their charges brought into line with comparable direct debit charges. Free childcare of 30 hours a week for one- and two-year-olds will be introduced for working parents in England and will be fully implemented by September 2025. Fuel duty cut will be maintained and frozen for a further 12 months. The pension lifetime allowance will be abolished in a future Finance Bill. The pension annual allowance will be increased from £40,000 to £60,000. Public sector spending Day-to-day departmental spending will grow at 1% year on average in real terms from 2024/25. The Government is investing a further £47.2 million to improve HMRC’s capability to manage tax debts. This will allow HMRC to better distinguish between taxpayers who can afford to settle their tax debts but choose not to, from those who are temporarily unable to pay, ensuring taxpayers are offered the right support. Investment zones 12 new investment zones will be created to drive growth in key sectors including green industries, digital technologies, life sciences, creative industries and advanced manufacturing. These zones will have access to a single five-year tax offer that matches that of freeports, consisting of enhanced rates of Capital Allowance, Structures and Buildings Allowance, and relief from Stamp Duty Land Tax, Business Rates and Employer National Insurance Contributions. They will also have access to flexible grant funding to support skills and incentivise apprenticeships, provide specialist business support and improve local infrastructure.
The basics of Parental Bereavement Leave and Pay Posted 03/13/2023 by Julie Hodgskin & filed under Members, Pensions and payroll, Tricky topics. Breaking down who’s eligible for Parental Bereavement Leave and Statutory Parental Bereavement Pay, and how to administer the benefit. As of 6 April 2020, Parental Bereavement Leave (PBL) and Statutory Parental Bereavement Pay (SPBP) became a right for employees. PBL is, and SPBP may be, available for parents who have suffered the loss of a child (up to age 18) or a stillbirth (24 weeks or more pregnancy) and is for a period of two weeks. However, since this benefit came into being during a period of, among other things, lockdowns, furloughs, tiers and reducing percentages of claim-back pay, the new entitlement may have been overlooked or something ‘to get around to’. To help, what follows is information on: the definition of a ‘parent’ when it comes to the benefit eligibility for the leave and for how long eligibility for the pay and how much Administration of the benefit First, what’s a parent in this instance? A parent is defined as: the child or baby’s legal guardian, whether biological, adoptive, or born of surrogacy. Note that the biological parent, once an adoption or parental order is in place, loses their eligibility to the benefit. The only exception to this is if there is a contact order in place after adoption. the partner of the child’s or baby’s parent Someone who had day to day responsibility for the child, though not paid for it, and had the child living with them for the four continuous weeks immediately prior to the death a foster parent someone whose expenses were reimbursed for caring for the child or baby someone who was receiving payments under the terms of a will or trust for the child or baby’s care. Parental Bereavement Leave (PBL) Since 6 April 2020 this is now a right from day one of employment. The leave period is for two weeks. This can be taken in one block or as two separate weeks. The leave must be taken within 56 weeks of the child’s death. The 56 weeks are split into two periods: From the date of the child’s death or stillbirth to eight weeks after. Here the employee must give notice before the first day of the week(s) wanted as leave. Nine to 56 weeks after the date of the child’s death or stillbirth. Notice must be given at least one week before the start of the week(s) wanted as PBL. Note however, that the employee can choose not to take PBL at all if they so desire. Assuming that the employee does take leave, the information required is as follows: the date of death the date they want to start PBL how long they will be taking, either one or two weeks. The notice can be given informally, no letter or form is required, nor is proof of death. Employees can cancel PBL or rebook the leave as they need. If the leave starts within eight weeks of the death, then notification of cancellation must be before day one of the planned PBL. If the leave was due to start nine weeks or later after the death, then the employee must notify the employer no later than one week before the start of the original PBL date. If the employee is taking other statutory leave, for example statutory maternity leave, the PBL can added to the end of that as long as it all takes place within the 56 week window. Statutory Parental Bereavement Pay (SPBP) Though PBL is a day-one right, SPBP is not. To claim this the employee must: have been employed for a continuous period of at least 26 weeks prior to the child’s death have received pay at, or above, the Lower Earning Limit (LEL) for eight weeks prior to the child’s death or stillbirth. The rate of pay is the same as other current statutory parental payments, or 90% average Weekly Earnings (AWE). If the AWE is lower than the current statutory parental payment, then payment will be at the lower level. Each time an employee applies for SPBP they must give, this time in writing: name dates when SPBP is claimed, date of child’s death or date of stillbirth. Information regarding eligibility to SPBP, that is, relationship to the child, needs to be given – but only when first applying for SPBP. Notice of cancellation of SPBP is the same as for PBL. Administration As with other benefits, employers can: reclaim 92% of SPBP through the Employment Payment Summary (EPS) claim 103% if eligible for Small Employer’s Relief (employer has paid less than £45,000 in Class 1 national insurance contributions in the last tax year prior to the ‘qualifying week’). Bear in mind that: Records of dates and amounts of payments and evidence of entitlement must be kept for three years following the end of the tax year in which it was paid. If an employer cannot afford to pay the SPBP then they can apply online to HMRC for an advance. This will need to be paid back through the EPS. These regulations apply to England, Scotland and Wales. Employers in Northern Ireland will need to check as there are different rules for them. Conclusion SPL and SPBP have similar eligibility criteria and pay to other parental benefits. However, unlike other parental benefits, the claim is due to a tragic circumstance or circumstances. It is hoped that employers will have very few claims for these benefits, but if they do, that they are handled sensitively and with compassion. For more information on the policies in England, Scotland and Wales please go to GOV.UK, or NI Direct for information about Northern Ireland.
What the Chancellor should know about HMRC’s poor service levels Posted 03/13/2023 by Annie Makoff & filed under Making Tax Digital, Members. Frustrations are leaving some accountants feeling that HMRC is working against them. AAT led several professional bodies in signing an open letter to Chancellor Jeremy Hunt ahead of the Spring Budget 2023, urging the Treasury to ‘prioritise’ investment on HMRC in a bid to improve declining service levels. The letter states HMRC customer service staff numbers have been cut by 24% since 2018, from 25,500 to 19,500. Long delays, call-hold times and reduced operating hours of dedicated phonelines have all become a ‘regular occurrence’. Businesses, accountants and taxpayers alike are experiencing ‘delays, business disruption and frustration’, the letter adds, while urging the Chancellor to prioritise investment in HMRC in next week’s budget. But back in January, MPs warned it was ‘unlikely’ that HMRC service levels would improve quickly. HMRC has struggled with a myriad of issues and backlogs, and faced additional pressures in December and January to address these. Common problems and complaints included: slow – or lost – service connections. system outages and ongoing technical issues. huge delays in responding to queries (at one point, the department had a 3.3 million post pile up) long call-wait times. Ahead of the budget, we spoke to three accountants about their frustrations with HMRC and what improvements they’d like to see in the department. Make more HMRC services available online Lauren Harvey, Assistant Accounts Manager, The Accountancy Partnership We’ve noticed increased waiting times for HMRC over the last few months, both for phone calls and responses to letters. This has caused clients to become frustrated with us, but we have no control over it. In January, HMRC added a new process whereby it would only discuss ‘urgent’ self-assessment queries with us via the self-assessment helpline. However, our understanding is that all SA queries in January will be urgent! It was also impossible to get an answer from the agents as to what they classed as ‘urgent’. In cases where the agent will only speak to the client directly, for example when discussing payment plans, nine times out of 10 clients tell us they’ve been trying to get in touch with HMRC for days with no response. HMRC has recently taken steps to make more services available online which allows us to view and amend details more easily. However, a number of queries still require you to write to HMRC. It would be brilliant if such processes could be moved online so queries can be answered, or investigations can be resolved, in a more timely manner. Verdict: There have been longer delays recently, frustrating accountants and clients alike. More online services are desperately needed. Inconsistent service levels with limited support from phone lines are a big issue Joanne Thorne, Technical Compliance Manager, SJD Accountancy Inconsistent service levels are causing the general frustration many businesses face when dealing with HMRC. Users frequently report being on hold for about an hour. And the person they get through to is not always helpful: callers are frequently asked to repeat their issues with each new call. Often calls offer very little resolution and instead, customers have to go through a lengthy process of waiting to speak to someone who can actually help them. Although individuals can now seek help through online chats, these services are as understaffed as the phone lines, resulting in the same – or bigger – frustrations. I’d like to see: Increased HMRC staffing. Improving services starts with hiring enough well-trained staff, who are connected with back-office systems, processes and people, and can therefore be proactive when solving a query or handling a complaint. Opening up the closed back-office teams to respond directly with clients would be a great help, especially if they are the only people who can resolved queries and issues. Invest more in digital technology such as mobile apps and self-service channels. Verdict: HMRC would benefit from improvements and investment in all areas: staffing levels, technology infrastructure and customer service. HMRC delays and inefficiencies are damaging our own client relationships Sam Mitcham FMAAT, Founder of SJCM Accountancy We would like to see HMRC working together with us instead of what feels like against us. We’re constantly being told certain information is ‘no longer accessible’ via a phone call and we have to write instead, or ask clients to make the call themselves. This damages client relationships some of whom say, out of understandable frustration, ‘‘isn’t this what we pay you for?” HMRC are attempting to move us into a digital world, but their own systems do not reflect this: we are still expected to correspond via post on many matters which seems ironic given that ‘making tax digital’ is high on their agenda. There’s inconsistency with API viewers: some information is accessible and some isn’t – there’s just no logic to it. For example, why can’t we or the client see all tax deducted by contractors under an individual’s UTR? While clients have an obligation to ensure they have CIS subcontractor statements, if we could cross-check this information with HMRC, this would make the process slicker. We’re also experiencing the longest delays we’ve ever seen for VAT numbers being issued. This is creating difficult situations for our clients, who are often new in business. It means having to amend invoices to their clients and suppliers at a later date which puts an added complication into the mix for us as agents, and for the client and their bookkeeper. There are also incredibly long response times for replies to letters. It can take HMRC months to even open a letter, never mind process and respond, meanwhile they often continue chasing clients for tax which isn’t due or information which we have already sent in. This makes it difficult for us to bill for work. We cannot add a line on an invoice saying: “sending the same information to HMRC twice” or “spending an hour on hold to HMRC to chase a reply to written correspondence”! Verdict: HMRC delays and inefficiencies are damaging relationships with our own clients. Its systems don’t reflect its own push to make tax digital. It feels like HMRC is working against us.
7 tips for synoptic success Posted 03/13/2023 by The content team & filed under Synoptics. AAT synoptic assessments may seem daunting to many learners, especially those from countries where English is not their first language. Being successful in synoptic assessments requires lots of SMART preparation and revision. Here, Mei Yoke Pak, founder and director of System and Skills Training Concept in Selangor, Malaysia, shares her advice on preparing for your synoptic assessments. Fear of the synoptic is one element that can tear learners’ confidence. Be over-prepared and over-learn – putting in more than the usual amount of effort when preparing for your synoptic will not only give you more confidence but it will also improve your retention. The synoptic usually covers a few units, which presents a voluminous revision task for learners. A few questions are subjective-based, requiring learners to think and write the answers rather than choosing answers (e.g. multiple-choice questions, match the answers and ‘true/false’ statements). This means that you need to have the ability to think critically, creatively and out of the box. Make your points stand out by linking answers logically and presenting them in an organised manner. Learn all the different formats of business correspondence, such as reports, emails, memorandums, etc. Learners frequently lose marks here by not adhering to this instruction. Lots of students find synoptic assessments difficult to deal with – so do not be embarrassed to ask for help and support. Let’s run through some tips to help you excel in your synoptic. Tip #1 Repetition works Know your own study style and understand how your brain works. Our brain remembers better through repetition – multiple exposures enhance our memory. Repetition learning and revising is an efficient way to elevate memory performance. Herman Ebbinghaus’s Forgetting Curve reveals that memory weakens over time (see diagram one, page 28). If we learn something new but do not attempt to relearn that information, we remember less and less of it as time goes by. The biggest drop in retention occurs soon after learning. For example, have you ever wondered what you learned from a webinar that you attended just a couple of hours ago? Studies show we might only remember 20% of the contents. To increase your rate of learning and retention, revise and refresh the information regularly. Repeating and reviewing topics learned three times is hitting the target, but doing it five times will get the facts stuck into your head. Yes, five is the magical number. Try the following steps: 1st review: SKIM through your revision materials. 2nd review: SCAN this time around. Spot and take key notes or create a mind map. Practise commonly asked calculation questions. You may look at the model answers if you are not sure. 3rd review: REVIEW your notes. Practise calculation questions, but this time don’t look at the model answers. Mark your answers upon completion. 4th review: CHECK your competency with multiple mock assessments. Time yourself and complete it within the time limit. Take note of your errors. Try at least five different mock assessments. 5th review: CONFIRM your readiness by trying the Green Light Tests and AAT mock assessments. The gaps between your review sessions can be longer as time goes on. You might refresh your learning from a lecture the following day, then two days later, then after a week, then after 30 days. Diagram two (on page 28) shows shallower curves as the number of reviews increases. Reviewing topics multiple times will stretch your recall and strengthen the memories. Tip #2: Customise your notes Study the pattern of the synoptic. What are the usual tasks and types of questions asked? This narrows your scope of study and allows you to place more emphasis on popular question topics. Make key notes and customise your notes to make them more personal. Experiment with colour coding, notes on tiny cards, diagrams, mind maps or whatever helps you learn your topic. Use acronyms or even word associations to help you remember. Tip #3 Understand what you study “What I hear, I forget. What I see, I remember. What I do, I understand.” Xunzi (340 – 245 BCE). This Confucian scholar emphasised the importance of understanding when it comes to learning. Hearing is not as good as seeing, seeing is not as good as experience, and true learning is only evident when experience produces an action. Using all or most of our sensory skills significantly increases retention of any learning. Sight: Read all the relevant learning materials. Hearing: Listen to podcasts and webinars on similar areas. Speech: Discuss with tutors and peers. Argue and debate on topics. Doing: Practice makes perfect. There is no short-cut and you should not skip this part. Application is proof of your understanding. Remember to ask questions and seek clarification if you are not confident. Do not memorise model answers – as questions may be asked from another perspective, the model answer may not be the appropriate solution. Relate your answer to the facts or background case of the question. Tip #4 Attempt all mock assessments within set time limits A valued tip by a former student who has passed the Professional (Level 4) synoptic: attempt all the mock assessments available on AAT’s website. Familiarise yourself with the layout and type of tasks you will be asked. Further improve your exam technique by completing mock assessments within the set time limit. Check your answers with the respective model answers. Work on your weaknesses. Model answers give students an idea of how to structure answers and cite relevant points to the requirements of the task. One common mistake made by students is that they tend to write a lot in the areas that they are very good at, forgetting the other parts of the task. You will not score full marks by over-concentrating on specific parts of the question. Be mindful of the allocated marks and visualise the number of points you need to provide to get maximum marks. Do not neglect going through the learning materials found in the AAT Lifelong Learning Portal. They will give you an indication of the types of questions and areas of assessments. Tip #5 Understand key command words Students need to understand what the question asks and answer accordingly. It helps to understand the command words in specific assessment tasks. Remember to stick to the intention of the question and provide a straightforward answer – do not beat around the bush. Students tend to equate quality with lengthy answers. On the contrary, the more you write the more errors you may make. This is especially so for students whose first language is not English. Use short sentences and simple words to convey your answer. Some of the key command words in AAT synoptic assessments are: Analyse: Dissect and examine the subject in detail. Identify the components and explain the relationship between them. Calculate: Work out from the given facts, figures or information. Comment: Give your opinion. Compare: Identify and comment on similarities and differences. Contrast: Identify and comment on differences. Define: Give a brief explanation or precise meaning. Describe: Give characteristics of main features of the topic. Discuss: Write about the topic or topics in detail. Evaluate: Give your verdict by weighing the pros and cons. Give reasons for your conclusion. Explain: Give reasons and show relationships between topics. Support with evidence. Identify: Name or state. Justify: Support a case with clear evidence. Outline: Set out the main points. Tip #6 If your English proficiency is limited Make sure you read the tasks carefully. Read it again if you need to. Highlight key points on your computer screen. Jot down a quick list of key points you need to cover. You may construct your answers using statements from the questions. It is okay to echo them in your answer to drive home your point. For example, a test question may ask: ‘Why would the recommendation that you had made be the most effective?’ You may begin your response with: ‘This recommendation is the most effective because…’ By re-typing the question, may spark your thinking along the right lines. Markers also prefer students to write complete sentences when they answer subjective questions in synoptic assessments. Echoing the question sets you on the right footing. Answering synoptic assessment questions requires practice before it becomes easier. If you find yourself struggling with the questions, ask your tutor or learning provider for sample questions to practise. Then set a timer and practise! Tip #7 Mind your typing speed Some students do not type fast enough during the computer-based assessments. Time is limited during your synoptic assessment and the pressure worsens the situation. Students are expected to be apt with using a computer, especially being able to type fairly fast and accurately. Try typing out the model answers – this may improve not only your typing speed but may enhance your understanding and retention. How many hours should you study for? Studying for hours and hours will tire you and ruin your concentration, which may eventually make you more stressed. Take small breaks during your studies – a break every 45 or 60 minutes is good. Going for a short walk, having a cup of coffee, or even closing your eyes for 10 minutes can help to calm nerves. Discipline and keeping up with a regular revision schedule are important. Keep a timetable and set apart at least one-and-a-half to two hours a day to revise or practise calculation tasks. As the assessment date draws nearer, you may need to set aside a few days to focus on your studies fully. Physiological factors such as sleep and stress can impact your preparation. So, make sure that you eat well and exercise regularly. Our brains sort and organise information during sleep, so do not deprive yourself of it! Further reading: Top tips to help you prepare for your synoptic How I overcame my struggles with the synoptic exam High demand for accountancy qualifications in 2023
Morning motivation – the most productive ways to start your day Posted 03/12/2023 by Charlotte Beugge & filed under Career. The first hour of your working day could be the most productive. Or you could waste it by going on Google, chatting or general procrastinating you can think of. According to research by www.powwownow.co.uk we are at our most productive between 9-11am on a Tuesday morning – and our least between 3-5pm on a Friday. But what about the other days of the week: how do you ensure you use the first hour of your working day best? Slave to the rhythm? There’s some science behind why we work best first thing in the morning. According to John Trougakos, an associate professor of organisational behaviour at the University of Toronto, and quoted on the BBC, “Based on circadian rhythms, about 75% of people tend to be most mentally alert between 9-11am”. Your circadian rhythm is your internal, 24 hour clock, which cycles between sleepiness and alertness says the National Sleep Foundation. It is controlled by your hypothalamus, but is also affected by outside factors, particularly lightness and darkness . So for most people who don’t work night shifts the biggest dip in energy happens between 2-4am (when you are fast asleep). But another big dip occurs around 1-3pm after lunch, which just shows how those in continental Europe have it right having siestas. Circadian rhythms and how they affect productivity have even been studied by Nasa, so they can study how to improve astronauts’ health and work patterns, which of course aren’t affected by changes in light and darkness. Eat a live frog first thing in the morning and nothing worse will happen to you for the rest of the day The right start You wouldn’t expect your car to start without fuel in the tank, so don’t expect to be productive if you don’t eat breakfast. Carole Alexander, director of Carole Alexander and Associates which provides bookkeeping services for small businesses, makes sure she gets the most out of her first few hours of every working day. “Breakfast is usually porridge and a couple of cups of tea with my diary and notes for the day’s work” says Alexander. You need to eat to get your blood sugar stable – so that doesn’t mean sugary cereal or fatty croissants but complex carbohydrates (oats, whole wheat unsweetened cereals), fruits and lean protein. As well as having something to eat, it’s worth making it easy on yourself by having a morning routine. Putting out your clothes the night before is something we probably all did when at school – you don’t need to make style decisions first thing. Knowing where your phone/keys/wallet is will also save time and hassle first thing. It’s also a good idea to take a few minutes the night before to work out what you’re going to do tomorrow – it will save time and mean you get off to a running start. Alexander usually leaves for work at about 8am and she will check her emails before she leaves but tries not to make phone calls. “We tend to go to clients in the morning so we can concentrate on them for two to four hours” she adds. “If I go into the office first it is easy to get caught up in something else and then I find I don’t give the visit to the client enough time”. Do a to-do list This is a vital tool to making sure your first hour isn’t wasted. You can do it on your phone or on paper. Prioritise on the must/should/could basis: ie tasks you must to do today; those you should and those you could do. Must tasks should be the ones you tackle when you first start work – when your circadian rhythms mean you are your most productive. Once you’ve done those, move onto should tasks and then finally could tasks. Update your list every night. You won’t clear it every day – there will be curved balls that come in to disrupt it – but you’ll make a big dent in it if you concentrate on the most important tasks first thing. How about a frog for breakfast? Make sure you don’t just put easy tasks on the must list: it can be better to do the most difficult first. Mark Twain once said: “Eat a live frog first thing in the morning and nothing worse will happen to you for the rest of the day.” American productivity guru Brian Tracy, author of Eat the Frog says, you should do the most daunting one (the frog) first – and when you finish it “your body releases serotonin the natural feel-good drug which makes you feel happier and more productive. You power through the rest of the day knowing the most important task has been achieved”. What’s important is that you don’t get derailed from being productive first thing. Emails can be disruptive: unless you are waiting for an urgent one then only check them once every few hours, set yourself times, if that helps. Keep away from social media, otherwise you’ll find it’s lunchtime before you’ve done anything. If you don’t trust yourself not to be distracted, you can use browser add-ons such as StayFocused to keep you away from time-wasting websites. And there’s a final bonus to working hard for the first hour: it will make the rest of the day just go faster.