Wellbeing on a budget Posted 08/19/2022 by Croner-i & filed under Future Finance. This content is brought to you by Croner-i. The wellbeing of employees has never been more important than it is now. After the difficulties of the pandemic, which is still not entirely behind us, many employees have been left feeling drained — mentally, physically and financially. Employers are recognising the impact of this on the performance of their workforce, and targeting policies, benefits and working practices at helping employees to recover and thrive. But it’s not just employees who have struggled. Businesses are faced with a number of problems, including rising energy prices, increased costs, lack of supply of goods, and funding problems due to inflation, amongst other issues. They may have the best of intentions to promote and support staff wellbeing, but what if there are not the funds spare to do this? In this article and my talk at Future Finance Conference 2022, I look at wellbeing on a budget: simple measures employers can implement for the better health of their staff that won’t break the bank. Focusing on wellbeing The CIPD 2022 Health and Wellbeing at Work survey identified the top three benefits of an increased focus on employee wellbeing as: a healthier and more inclusive culturebetter work-life balancebetter employee morale and engagement. Therefore, employers have a lot to gain through better employee wellbeing. According to the CIPD, there are seven key areas of employee wellbeing. Highlighting these as areas to focus efforts on, we offer ideas to increase wellbeing in your business. 1. Health This encompasses physical and mental health and safety and can be supported by: promoting healthy eating — sharing information about healthy choices, recipe swapping and tasting sessionsholding walking meetings — can employees that work remotely get out in the fresh air for the daily team meeting and use a handsfree device?establishing mental health champions, mental health first aiders and encouraging conversations about mental ill healthenquiring with local charities what support they might be able to offerintroducing company exercise challenges — which team can travel the furthest using free distance tracking and logging apps? This not only encourages healthy behaviours but also healthy competition and teamwork. 2. Good work Employees need engaging work that allows them to contribute and progress, that is balanced and manageable without unnecessary stress. This can include: flexible working options to ease pressures from an employee’s personal life, such as commuting costsmanagement training to ensure good line managementinternal development programmes and leadership training to support employees in their current roles and to work towards their futurestarting an employee recognition scheme that employees themselves can contribute topromoting work-life balance — leading from the front is beneficial to this, so encourage senior leaders to share how they achieve balance. 3. Values/principles Environmental social governance is important to employees. They want to know they work for a “good” company, that shares their values, such as protecting the environment and charitable works. Initiatives include: developing a volunteering initiative — give employees a day off to participate in charitable works and set up a charity committee of employees to find ways staff can volunteer or arrange charity eventsbacking diversity and inclusion with diversity training days and diversity-friendly workforce policies, such as hours which suit working mothersholding a staff wellbeing day with ideas on how to improve wellbeing. 4. Collective/social Employees who feel comfortable with those around them, are included and able to be their authentic self are more likely to thrive. Initiatives to encourage socialisation amongst colleagues include: setting up opportunities that encourage employees to mingle informally. Authentic friendships at work can be a big contributor to wellbeing, so think of ways that can encourage these to form, such as shared interest groups and after-work meet upsteam hikesa board game tournamenta sports tournamentrunning an open forum to hear employees’ feedback when making a decision that will affect everyone in the business. 5. Personal growth Naturally, people want to grow and develop themselves. Enabling staff to do this can significantly contribute to employee wellbeing, and can include: arranging topical webinars and inviting guest speakers to deliver them, and also contacting prominent figures in your industry to give talks or run seminarsmentoring from peers or employees in other departments, allowing development, knowledge sharing or upskillingholding resilience training to improve personal development. 6. Good lifestyle choices Good lifestyle choices contribute significantly to wellbeing, and employers can support employees (in a non-patronising way) to achieve significant health and wellbeing benefits. Here are some ways to encourage staff wellbeing. Offer a space for group workout sessions — perhaps a room with a video display for YouTube fitness videos.Provide bike parking and changing facilities to encourage taking a bike to work.If there is a canteen, offer and promote healthy choices.Run weekly/monthly cooking or recipe sharing clubs. 7. Financial wellbeing A person’s financial situation will have a huge impact on their wellbeing, and stress from money worries can have a significant impact on job performance. As well as paying their wages, you can go a step further and support employees in making sensible financial decisions. Some ideas are: holding workdays focused on finances and savingsignposting debt counselling servicessetting up “swap shops” where employees can swap goods they no longer want or need, such as clothes or furniture, with their colleagues. Implementing your plans Having ideas is one thing; implementing them is the crucial step. Effective take-up of wellbeing initiatives will come from engaging employees with these ideas, promoting what is available and making sure everything is in place for the initiatives to be successful. This will not need a significant financial investment, but it will take time to do properly, which can take employees away from their day-to-day jobs for a short time. The gains to be had from increased health and wellbeing, however, are more than likely going to outweigh short- term disruption caused by staff working on, or using, your wellbeing initiatives. If you want to hear more on this and around Mental wellbeing! Then coming see me talk at Future Finance Conference 2022. Amanda Chadwick is an, expert HR and and H&S speaker from Croner-i.
AAT asks for a record number of votes in this year’s Council election Posted 08/17/2022 by David Nunn & filed under Future of accounting, Members. Calling members: as AAT develops its new strategy, we need your vote to help us shape our plan and the future of the profession. As AAT prepares its strategic plan for a new era we are delighted by an excellent crop of nominees for the important upcoming elections to AAT Council. 22 members have come forward – a record in recent years. They offer a wide range of backgrounds and experience to help AAT carry forward its new strategic plan (see below). To complete the picture, AAT is calling on the rest of the membership to show their commitment by voting. AAT CEO Sarah Beale comments: “Members should have a say in the direction of their membership body, and we need your participation to make this process a success. “By voting you can ensure we have a diverse Council representing the breadth of our membership and contributing the kind of leadership we need for AAT’s next chapter.” Eligibility Voting for the AAT Council election is limited to MAATs and FMAATs. You can read the personal statements of nominees below, or on the online voting portal. In order to vote you will need your security code, provided by email (unless you specifically request print communications. Go the voting portal Candidate statements in alphabetical order Chris Argent MAATLucy Cohen FMAATJane Collins MAATKatarina Collins MAATWayne Cook FMAATBen Gadsby MAATRebekah Glover FMAATAdrian Hart FMAATEve Jones FMAATJennifer Lashley MAATMatthew Lewis MAATSalina Loum FMAATVanessa Myatt FMAATDaniel Perrin FMAATAjay Prabhakar FMAATFatimah Razak FMAATEdward Reilly FMAATJiteshchandra Shah FMAATDanny Thompson FMAATFrancesca Tricarico MAATDavid Walker FMAATLibby Walklett FMAAT Chris Argent MAAT I firmly believe the AAT’s mission, “to promote practical financial skills to empower people and enable businesses to achieve their potential.” is entering new ground. Therefore, I am excited to apply for Council for three distinct reasons. 1. “Practical financial skills” must include digital/data skills to truly “empower people and enable businesses” today. I believe the AAT can change the accounting profession by being the “digital academy” of accounting talent. 2. Clare Bennison has recently joined as Director of Marketing and Commercial who I know from the ACCA and will be looking for/ driving new opportunities at AAT. 3. Sarah Beale is also new in role and has a great opportunity to drive new initiatives, like the digital academy. With this change of personnel and this new opportunity, I have chosen this year to apply for Council, after 20+ years of membership, to support Council and advise on the digital shift and what it might mean for AAT. My experience covers, senior management of finance teams, leading finance and analytics transformation in many organisations, developing syllabi and materials with training providers, charity trustee positions at an educational charity and a sports club, and running my consultancy and media business. Vote now Lucy Cohen FMAAT As the founder of the first ever subscription-based firm, I am well versed in change-management and challenging the status quo. In my 16 years in practice as an AAT Member in Practice, I have gone from a scrappy start-up founder, to a well-established businessperson who is regularly called on to provide industry insights to peers. I am closely connected to the accounting community at large, in 2021 being awarded the AccountingWeb Outstanding Contribution Award for my work in the industry and supporting other accountants through the pandemic. I have experience of serving on various boards outside of accountancy. In 2020 I was appointed to the Economic Strategy Board for the Swansea Bay City Deal, and in 2021 to the Sketty Business School Advisory Board. I think that my knowledge of the accounting industry, grass roots experience of building a firm and understanding of the business world in the wider context, provide me with the experience required to serve the AAT well. If appointed to the council, I would use my skillset and experience to support the AAT in their growth as, what I believe to be, the most exciting and versatile accounting qualification. Vote now Jane Collins MAAT I am applying to be a member of the AAT Council as I have a high regard of the professional body, in which I have had connections since 2000, in various roles. Firstly, as a student at South Devon College enabling me to see the benefits of the qualification and membership and the route to entrepreneurship and self-employment. Secondly as an Assessor Coach for apprentices when working at the training provider, working with AAT lecturers Employers and Apprentices. During this role I completed a Post Graduate Diploma in Education and now lecture in accountancy and have progressed to Programme Co-ordinator for both Accounting and Apprenticeships for the College. These varied roles have provided insight into all aspects of AAT, and I have also been a member in practice. I see the positive change in students when progressing through the qualification levels either as apprentices or adult learners. The change in students’ confidence and the progression opportunities available to a diverse group of students, that is brought through studying and being part of AAT, is wonderful to see. The wider skills students learn including Business Awareness, Ethics and Sustainability heightens their employability skills. I would value being part of the council. Vote now Katarina Collins MAAT AAT has been my gate into the exciting world of accounting. It has provided a solid base for my work and further studies, but also a source of knowledge, skills, new professional relationships and friendships built on common grounds of our profession. I really like that AAT also fights for important issues of 21st century – above and beyond accounting and bookkeeping issues. I am truly grateful for all that AAT has done for me – and I am excited to offer something in return. I already started by joining the very supportive and enthusiastic committee of AAT Swindon Branch few years ago – but I would like to extend that by my nomination for AAT Council. I would like to offer my existing knowledge and skills gained by studying further, working in practice and industry and also develop myself even more personally and professionally by supporting AAT Council. Vote now Wayne Cook FMAAT For the last 2 years I have had the honour and privilege of serving on the AAT Council and for the past year I have served on the Audit Board. It has been a challenging but enjoyable and rewarding time and I have learned a lot more about the AAT. I am very passionate about the AAT having been a member for 26 years becoming a Full Member in 1996 and a Fellow Member in 2015. I am a Licenced Accountant and have run my own practice for 14 years. I have been involved with the Exeter Branch Committee for 11 years currently as the Treasurer. Prior to this I was the Chair for 4 years. I have had a varied career, having many years’ experience in local government, industry and now in practice so I know what it is like to be at the sharp end for businesses and I can bring this experience and versatility to the AAT. If I am re-elected it will be a great honour and I will work hard to help grow and develop the AAT and encourage others to become members of the AAT and to embrace the qualification. Vote now Ben Gadsby MAAT I first started studying with AAT in, I think, 2010 and have been an MAAT since 2014. While I have not worked in accountancy now for a number of years, my more recent career gives me a different skillset which I think will be useful for AAT Council. I am an education and skills policy expert and have worked in policy roles in local government, Parliament and the third sector. I am currently Head of Policy and Research for a charity, and an Associate Fellow for a think tank. I have expertise in several policy areas relevant to AAT’s work including employment, apprenticeships, traineeships and qualifications. I understand the policy making and the political environment and managing these types of stakeholders, and I have a range of relationships across government, think tanks, and the skills policy community. If elected to AAT Council I would hope to support AAT’s public policy work, and also bring my understanding of the external environment we all operate in to the table in wider strategic discussions. AAT Council is (understandably!) very well served by accountants and financial professionals. I hope my different perspective can be a valuable addition to the team. Vote now Rebekah Glover FMAAT After leaving school, I started my journey to qualify as an accountant. I gained the AAT qualification in 2012 and qualified with ACCA in 2016. I have always been a supporter of the AAT qualification, and in 2019 I recruited an AAT apprentice. I have the experience of being both the AAT student and the AAT employer. I am currently Finance Director at VNC Automotive Ltd. I have worked in practice and industry, and in both listed business, and in SME start-ups. In addition, in 2019, I started my own business whilst working full time as a FD. I have a broad knowledge of all aspects of business, not just finance, and feel my experience would bring a vast amount of knowledge to the AAT Council. I have been featured in AT magazine, as well as sitting on the panel for the CPD course “Digital Decoded”. I have been nominated for “Rising Hero in Finance” at the Digital Finance Function Awards, and I will be speaking at the GenCFO summit. I would like to stand for election to bring my knowledge, skills and passion to the AAT Council and to ensure the AAT continues to be a forward-thinking professional body. Vote now Adrian Hart FMAAT Having been a Member of AAT for over 25 years and being a fellow member of AAT and CIMA I feel I can bring a wealth of experience to this role. Whilst the majority of my experience has been in the Public Sector, I am also a Member in Practice (Licenced under CIMA, Exempt from AAT) and can therefore also understand the needs of the private sector especially small businesses. My roles have included a strategic angle and whilst in the NHS I undertook a management leadership qualification. This has enabled me to understand the strategic direction of the business, enable action plans to achieve that direction and not lose sight of why the business is there, by understanding the needs of the different stakeholders. I also feel passionate about the term ‘Accountant’ being a protected term, not only to acknowledge the hard work & commitment of the accountancy profession but also to protect businesses. As a long-standing member of the AAT, I feel it is appropriate for me to contribute to the AAT to encourage students to follow a career in accountancy and become lifelong members of AAT. I would also encourage collaboration between CIMA and AAT. Vote now Eve Jones FMAAT Why I want to run for the council I have been AAT FMAAT since 1997 and worked as the Financial Controller in automotive manufacturing sector. In July 2021 I was elected the Chair of AAT Birmingham Branch and since then I have been running a successful team of 6, by organising very well attended events and webinars. What are my attributes? I am very passionate about AAT and I want it to reach to wider audience, hence I am targeting the education sector with past, present and future students. I want to bring to the table my knowledge, enthusiasm and energy in expanding to wider-spread audience. How I plan to do this? Engage with students at all levels at various colleges by using social media and visitsAs the Chair of AAT Birmingham Branch, bring in different speakers for different target audience, to entice attendees.Work hand in hand with Regional Manager to access other institutionsAs a lecturer, I have first-hand knowledge AA syllabus, delivery with excellent pass ratesCurrently, working on new 2022 qualification for September 2022 In return I will learn a lot by being a member of Council and working with the Executive Team. Vote now Jennifer Lashley MAAT In support of my application, I am bringing my varied work experience in finance – starting last century (!) – to the AAT council. This experience is in various sectors – PLCs, public bodies and charities, in finance teams and latterly as the sole finance worker. As well as permanent posts, I’ve undertaken temporary roles, often being parachuted in to troubleshoot problems, so I have a good idea on how isolating it is to work as ‘the finance person’ in a company. A full member of AAT for 5 years, I used my CIMA qualifications to join AAT, having found it a more welcoming environment than CIMA so far. I would like to use my experience to assist AAT students and members manage their workloads. I would like emphasis on IT being a major part of the accountant’s CPD, including regular audits of their IT knowledge. In previous volunteer roles, I’ve worked on the ‘coalface’ – this trustee role gives me the chance to look at another side of an organisation strategically and contribute to its further growth. Vote now Matthew Lewis MAAT Having started my career in finance in 2016, immediately after leaving Sixth Form, I have a very recent experience of obtaining MAAT through a private practice apprenticeship scheme and wish to represent recent and current students at the AAT Council level to ensure that decision making considers our student members. I made the transition to working in industry at my local NHS hospital 2 years ago and have seen the value that MAAT brings to a CV and the valuable technical knowledge it provides; having transitioned from practice to industry, I can bring the perspective of someone working in management accounts in the public sector, which sometimes seems secondary to financial accounting in the communications. A key component of my role as Finance Manager involves holding operational teams to account and ensure proper financial governance, especially as a steward for taxypayers’ money in the public sector. I can bring this scepticism and accountability to council decision-making, as well as the refusal to act as a ‘yes-man’. I am interested in learning more about the operational components of the Association, as well as engaging in decision- making that can improve the experiences of students and members of AAT. Vote now Salina Loum FMAAT I was born in the UK and I am of mixed parentage. After completing College in 1999, during a gap year, I secured an office junior position in an accountancy practice and within three months of joining, aged 19, I was offered an unprompted trainee accountancy position. I accepted. I married in 2003 and in 2004, pregnant, I left practice to work in house, to develop my skills further. In 2006, I started a bookkeeping business whilst still employed part time. I became AAT qualified in 2014. In 2015, my family and I moved to Wales and I opened my own practice, becoming an AAT licensed member in practice. Over the last 20 years, I have gained accounting skills (financial and management reporting, taxes, payroll, auditing etc) and business development skills (marketing, computing, human resources etc). These skills have helped me to grow my business and to better support my clients in running their businesses. As a British woman of ethnic origin, I hope women from all backgrounds are inspired to qualify and / or take the leap to run their own business. I believe I can bring value and service as a member of the AAT Council. Vote now Vanessa Myatt FMAAT I have been involved with the AAT since I began my studies in 1990 and have been a student, a qualified member, an employer supporting other AAT learners, a teacher at a college and my current role includes a trainer/assessor in the private sector. I am also a practicing member and hold a full licence. My work includes working as an accounting technician in practice, industry, public sector and as a tutor in both public and private practice, supporting learners with the diploma and apprenticeships. I can offer the council my diverse experience and passion for the AAT, with a mixture of skills across all areas of accountancy as an employer, learner and practicing member. I am best placed to address and contribute to the Councils key responsibilities and am up to date with industry changes across all the accountancy and education industry. I am a fully qualified teacher and have been involved with developing the delivery of the Q2022 in my current role as well as developing resources. I would actively participate in meetings and be able to contribute great value to discussions and decision making, assisting the Council in fulfilling all its responsibilities. Vote now Daniel Perrin FMAAT I am a Fellow Member of the AAT and run my own accountancy practice in South Wales as well as teaching accountancy part time in my local college. Over the last ten years I have served on the South Wales Branch as Chairman and Treasurer. My passion and continued commitment for AAT is what has prompted me to run for Council, because I am confident that I can positively and proactively contribute to AAT’s strategy and core values. I have benefited tremendously from the AAT qualification and I believe in giving back and want to help ensure members and future members continue to be the most valued in the accountancy profession. I would also welcome the opportunity to contribute my knowledge and skills from across my accounting profession and work closely with the AAT and other committee members to uphold the high standards of AAT. Vote now Ajay Prabhakar FMAAT Thank you very much for giving me the opportunity in 2019 to represent all of you as your elected council member. In my two years’ term, I have represented the AAT audit board and have gained an in depth understanding of the functionality of AAT. AAT local branches are always first in my priorities and I am always looking forward to finding ways to support young and experienced AAT members. I have twenty years’ experience running my own practice. I started off as a committee member and over the years, with my thorough dedication to the AAT, I have become the chairman to our local Birmingham branch. Covid-19 has taught us to work differently in the profession and technology plays a very important role. My vision for the AAT is to make it a more agile and progressive organisation. I am a ‘people person’ and a firm believer in networking and engaging with other professionals. I am very grateful for your continued support and I believe that I have the moral strength and leadership skills to lead and carry the best interests of our fellow professional colleagues, locally and nationally. Vote now Fatimah Razak MAAT I am a member of AAT and a licenced member in practice. I have been part of the Derby AAT branch committee for nearly 4 years and taught AAT bookkeeping at a local adult education centre. I believe the AAT qualification is a life changing qualification and the opportunities it has opened to me such as setting up my own business from home and teaching AAT to students. I truly owe my professional achievements to AAT including having the opportunity to teach a qualification that changed my life. Seeing the growth, confidence, and ambition in my students’ eyes to change their lives by studying AAT was deeply rewarding. I believe the time is right for me now to give back to AAT and play my small part in making a valuable difference. I am enthusiastic, passionate and committed to helping AAT grow and reach far and wide. I would welcome an opportunity to join the AAT Council and be part of its amazing journey changing many lives. Vote now Edward Reilly FMAAT Until July 2021 I was the Town Clerk at three large Town Councils. The latest being St Neots Town Council, the biggest town in Cambridgeshire. I was responsible for providing advice and guidance to twenty-one Councillors, over thirty staff, and the wider community. I am a Fellow of the AAT as well as a Fellow of the Chartered Institute of Management. I have also completed DMS and an MBA. I played a major part in the establishment of a Business Improvement District in Sleaford and played a significant role in St Neots achieving a Neighbourhood Plan. I spent almost thirty years in the Royal Air Force completing tours of duty throughout Europe and the UK as an Accountant, Personnel Officer, and Facilities Manager. Upon leaving I became Bursar of a state secondary school, I was a member of the Senior Management Team and was responsible for all support services. I later worked as the Finance Manager for a division of BP before becoming the Group Accountant a company comprising caravan parks, log cabin manufacture and a transport company. I was the first Chairman of the Lincolnshire Branch of the Association having lobbied for its establishment. Vote now Jiteshchandra Shah FMAAT I’ve been a member for more than 40 years, and understand member needs. I’ve been Chairman, Treasurer and Publicity Officer of the Branch, and am experienced in advising businesses, charities and not for profit organisations. I have time, energy and experience to offer my services. I grew my business many fold and in diversity, due to my skills in advising and am a specialist in helping growing enterprises in accounts, financial advice and taxation, ranging from self-employed, entrepreneurs, limited companies, charities and not for profit organisations. Additionally, I am a Business Mentor to social enterprises. I am an energetic and practical person providing a hands-on approach of customised services for members. I would specialise in a “culturally-friendly service” targeting the needs of the entrepreneurs. I could contribute by: maintaining existing customer loyalty, ensuring that we offer a quality service;diversifying into different sectors;contributing to UK and overseas markets;working in partnership with other organisations to develop AAT; andattracting new members to generate new income for the Association. I have a wealth of experience and would really like to share my varied skills by being involved with the Council. Vote now Danny Thompson FMAAT I am a long term AAT qualified and fellow member of the AAT. I have worked in the Property Accounting industry for c16 years and can offer a wealth of knowledge and experience from the skills I have gained. I am currently working for Leaf Living Limited which is a Blackstone owned platform (largest private equity company globally). I have previously been an AAT marker which was a great experience for me to develop another skillset. I started the AAT straight out of school, at the time my opportunities were limited (due to circumstances I didn’t do GCSE’s) and the AAT gave me a real opportunity to give me an industry recognised qualification and develop a career. I am passionate about the AAT (I am always selling the AAT to everyone who will listen!) and in particular how I can help other people especially from disadvantaged backgrounds. Vote now Francesca Tricarico MAAT I have had my AAT qualification since 2014. I went back to studying in 2011 after having 2 children. Just before I qualified, I got my dream role (after 2 attempts) in a local accountancy firm that I felt was the best in the area. In the time I was there, I fell in love with cloud accounting. 2016, I set up my own social event (networking) this was a quarterly event I ran to encourage an informal way to meet business contacts and encourage confidence. Whilst “networking” I met my now business partner in 2018 and in 2019 we set up our own accounting firm. I applied for my AAT license and within months we gained lots of new clients and we hired our first couple of employees. We now have a team of 9 with an apprentice starting with us in September ready to study her AAT! We built our business on social media only (mainly LinkedIn) with no paid marketing. I can bring a fresh approach to the council. I loved studying my AAT and I love encouraging other people to achieve more! The industry is changing, I want to help encourage that change!! Vote now David Walker FMAAT This year I celebrate 30 years as an AAT member and having had the honour of serving on council previously I am seeking election to Council again following a break of three years. During my previous time on Council I served on the Member Services, Resources, Investment and Audit Boards; and I was Chairperson of the Investment and Audit Boards. My career has seen me in roles in both practice and industry, having been a Finance Director for ten years and I am currently lead Partner in the York office for a firm of Chartered Accountants. My voluntary career has not only seen me give time to our Association, but I have also been Treasurer for the Charity Abbeyfield York Society for over 20 years. The experience above has not only allowed me to help train and mentor AAT students but also see them go on to further studies and blossom in their own careers. It is this passion for assisting our students and members attain their potential that brings me back to stand for election to Council. We need to ensure the sustainability of the AAT for future generations. Vote now Libby Walklett FMAAT The AAT restored my ‘mojo’. Following a career gap, incorporating maternity leave, and caring for my father, my confidence took a beating. Studying this professional qualification made me accept I was more knowledgeable than I thought. Through naturally assisting other students in my class and being encouraged by my own tutor to apply for a teaching position myself, I regained my confidence. With no prior experience, I taught AAT, gaining above average retention and results in the process; I marked AAT Sage exams and, more recently, was approached to be an apprenticeship coach. I was nominated in 2017 for 3 AAT awards, winning the CPD Champion 2017. What an honour! I regularly promote the AAT, whether face to face or online, telling others what a great qualification it is. I’m now a proud FMAAT, working as the Financial Controller of a charity and have my own micro-practice. I’ve signed up for my local committee and recently took part in AAT marketing activities. Given all that I’ve gained, it’s time to give back; with support, enthusiasm, and energy – encouraging the AAT to positively impact staff, students, members in industry, public sector, charity, and practice, leading the industry by example. Vote now
Refresher quiz No 3 – moving between the FRS102 and FRS105 frameworks Posted 08/16/2022 by David Nunn & filed under CPD refresher quiz, Members. In this quiz we pose a new challenge – do you know how to move between the FRS102 and FRS105 reporting frameworks? Taken from the Knowledge Hub article Get it right: Moving between reporting frameworks.
How to deal with sanctioned clients Posted 08/16/2022 by AAT Comment & filed under Ethics, Members. In this second part of our series, we look at how to tackle clients who are sanctioned. You’ve established that your client is sanctioned and, if there’s been a breach, you’ve made your suspicious activity report (SAR) to OSFI. As sanctions lists are in the public domain, there are no confidentiality or tipping-off issues about raising it with the sanctioned client. Still, considerable care must be taken when communicating with clients about these matters and it’s vital to check your legal position before taking any action, as it can depend on the nature of the sanctions in place against the client in question. Should you sever ties? It may also be time to consider whether the suspicion raised by sanctioned clients, or potentially sanctioned clients, is such that, for professional or commercial reasons, you and your firm no longer wish to act for them. “Disengaging is one option, but not necessarily the only one depending on the nature of the sanctions versus the services being provided. However, it would mean a higher risk client with the additional due diligence required,” explains Adam Williamson, AAT head of responsible business and policy. “An application can be made to OFSI for an exemption licence if appropriate. If there is evidence that a breach of the sanctions has already occurred it may then require a report to OFSI and/or the National Crime Agency.” Much of what happens at this point depends on how thorough your due diligence work was initially, Christina Philippou says. “Internally, you would definitely look at extricating yourself from the client relationship, but again this comes down to the due diligence work undertaken when onboarding. It’s rare that someone is put on a sanctions list and there weren’t red flags.” Proactivity pays dividends The advice from Jackson Quaker, professional standards policy development manager at AAT, is simple: to avoid problems, go through your client list, make sure it’s up to date and that you have all the relevant information; and look at clients that, although not Russian-owned, might have controlling interests from Russian individuals. Geographical hotspots are also worth watching: “We’re seeing a lot of movements of money from Russia to the UAE,” says Quaker. “If you’re dealing with someone in the UAE, check if they’ve got links to Russia. Trends like that show that you need to be holistic in your approach.” While the threat of punishment will increase pressure on accountants to comply, the issue of reputation is just as pressing. “Sanctions are put in place to change behaviour, so if you were to perform services for a sanctioned individual, it would be seriously damaging to your reputation,” says former forensic accountant Christina Philippou, who believes the current global opinion towards events in Ukraine goes way beyond accountants and affects all business. “The rise of social media means that you are seeing reputational damage become more important.” While there is significant overlap with existing AML regulations, Quaker is quick to point out that sanctions are not limited to high value transactions in certain locations, advising members to “think again” about their preconceptions. “We’re seeing a lot of movements of money from Russia to the UAE…” Where is the best information? Caution is required in dealing with persons and businesses that may have links to Russia, and with jurisdictions known to have a significant presence of Russian business or which are on the Financial Action Task Force’s black or grey lists: Financial Actions Task Force These sources contain detailed information about the implementation of sanctions: Russia Sanctions GuidanceFinancial sanctions – RussiaRepublic of Belarus sanctions guidanceThe CCAB Guidance
Politicians back AAT calls for tax advisers and accountants to be qualified Posted 08/16/2022 by Phil Hall & filed under Accountable, Members, Policy. According to HMRC, a third of high street accountants and tax advisers are unregulated – as AAT’s Accountable campaign has shown, this is a big problem. Phil Hall, AAT Head of Public Affairs & Public Policy, explains why. A third of the accountancy and tax advice sector is unregulated – which means it is not required to be properly qualified or even to undertake any continuing professional development (CPD). Neither are unregulated accountants required to hold insurance, be subject to monitoring and review, or even have a complaints process. This represents a host of serious problems, the biggest being the threat to consumers. Qualified It is worth delving a little deeper into the specifics around one aspect of this problem and how it can impact consumers – the complete lack of suitable qualifications. HMRC research published last year revealed that a staggering 82% of unregulated agents are also unqualified. Some may question whether this matters but consider this, would you let an unqualified doctor operate on you, an unqualified builder build your house or an unqualified solicitor deal with your legal issues? Of course not, so why should it be any different to accountants and tax advisers? This regulatory failing is especially stark when you consider the enormous sums of money that can often be at stake when dealing with tax issues. It is not just the level of money involved it’s also the complexity. Those with no qualifications can provide accountancy and tax services to individuals and businesses on issues ranging from budgeting, tax returns and payroll to forensic and management accounting. These are rarely simple and straightforward matters. Costs Consumers are far more likely to receive poor, misleading or inaccurate advice from an unqualified and unregulated agent. This can obviously be extremely costly for individuals and businesses alike. Indeed, AAT members have provided countless examples of the problems that unregulated accountants create as it’s our members, and those of other professional bodies, who are often left to pick up the pieces. There is a cost to HMRC too. Two-thirds of agent-related complaints to HMRC are about the one-third of agents who are unregulated. This has considerable resourcing implications for the nation’s already stretched tax collector. Likewise, there is also a cost to the taxpayer, not just because of poor advice that could result in missing out on exemptions or reliefs, paying too much or too little tax and suffering the consequences that follow, but because of purposeful tax evasion, egregious avoidance and money laundering activities. To compound the problem, most people are completely unaware that there is no legal requirement for tax advisers or accountants to be qualified, as our survey last year highlighted – around 60% of the public have no idea that accountants and tax advisers are not obliged to be qualified. AAT campaigns for change As regular readers of AAT Comment will know, AAT’s Accountable campaign has long called on Government to hold unregulated responsible for their service. It has long been our position that it should be compulsory for anyone offering paid-for tax and accountancy services to be a member of a professional body, as happens with over 200 other professions in the UK from dentists and doctors to architects and solicitors. Given AAT and all the other tax and accountancy professional bodies require their members to be appropriately qualified, compulsory membership would mean that all accountants and tax advisers would be fully qualified in the future. Political support Last month, AAT commissioned YouGov to undertake independent research into the views of Members of Parliament on the subject. The findings of this research demonstrated overwhelming support for anyone providing accountancy and tax services to be appropriately qualified, with 82% of MPs stating this should be the case. It is worth noting that support was equally high among both Conservative and Labour MPs (81% each) which is something Rishi Sunak, Liz Truss and Kier Starmer should take note of! Furthermore, there was virtually no opposition to the idea, with just 2% of MPs disagreeing. How AAT members and students can help Although it’s great that 8 out of 10 MPs agree with AAT that anyone offering paid-for tax and accountancy services should be appropriately qualified, we now need this agreement to translate into action. If Government is genuinely concerned about consumer protection, saving the taxpayer money and raising standards in the tax advice market, then it needs to compel accountants and tax advisers to join one of the many relevant accountancy or tax professional bodies in the same way that membership is required in over 200 other professions in the UK. If you agree, why not write to your MP and let them know? If you don’t know who your MP is, you can find out by entering your postcode on the Parliament web site Further information about AAT’s Accountable Campaign.
How to supercharge your CV Posted 08/16/2022 by Iwona Tokc-Wilde & filed under CV tips. Want to land that job interview? Make sure your CV is high-impact rather than ‘just fine’. Recruiters and hiring managers go through hundreds of predictable CVs from candidates with similar experience and competencies, each of them claiming to be perfect for the job. Many of these CVs hit all the right points and seem ‘just fine’, yet they get no response. Why? Because ‘just fine’ is simply not enough. Greg Thorpe, managing director of finance and accountancy recruitment agency Howett Thorpe, admits: “It’s a difficult balance for accountants to make their CVs stand out but still reflect the professional standards expected from their profession.” Obviously, you want to stay clear of gimmicks and anything else that makes you stand out in a wacky sort of way. But even though the CV of a finance professional is supposed to be traditional in its content and format, you can still kick it up a notch or two to make it memorable and increase your chances of getting selected for an interview. Colour me beautiful? Creative professionals often use colour and graphics to show off their skills. But surely this is a no-no for an accountant’s CV? Not necessarily, says Thorpe: “Headings in colour or areas of achievement highlighted in a coloured column can make key elements of the CV jump off the page and draw the recruiter’s eye to the candidate’s best-selling points. This kind of flair will certainly get your CV some air time.” Collette Huckle, regional director at REED Accountancy, agrees the use of colour is acceptable. However, she adds: “Avoid using anything bright and bold and be mindful of how colour would appear if printed in black and white.” Don’t be tempted to further personalise your CV with a fancy font, though. Recruiters are said to take six seconds to decide whether or not to bin your resume, so avoid fonts that are irritating to the eye. “Use a standard font like Arial or Calibri,” says Huckle. Substance over form Jack Cole is director at financial recruiters Forbes Hunt. He says: “It’s hard to think differently when it comes to your CV, so try and leave your mark by presenting it in an easily readable manner. It should be easy to follow, concise and to the point, but detailed enough for the reader to get a good picture of your abilities.” Think along the same lines as when writing a PowerPoint presentation. “Too much detail and people will stop reading. It should be an overview which can be further explored at interview, but with enough detail to entice the reader,” says Cole. What’s most important, however, is the quality of the content. Thorpe suggests that you kickstart your CV with a personal statement. “It should confidently tell the recruiter what you can do for them and what abilities you have to make this happen. This is also where you can make your personality shine through.” Thereafter, you must outline the key areas for each position you have held: industry experience, tenure, level of responsibility, key achievements and systems used. Recruiters are said to take six seconds to decide whether or not to bin your resume Key achievements The ‘key achievements’ sections is where you can really supercharge your CV. Cole says: “Focus on things you did that could set you apart from the next candidate: cutting costs, improving systems or processes, and anything else that added value. Employers will always go for someone who can improve their business and save them money, rather than someone who simply does their job well.” Make sure you use plenty of verbs that describe the actions you took to add value, for example: improved, increased, reduced, developed, negotiated and resolved. “These ‘doing’ words show you are an active, determined employee – a dream for recruiters,” says Thorpe. Technology is a hot topic for accountants, so specify your levels of proficiency when it comes to systems used. “And if you can show how you’ve enhanced systems, this will really strengthen your CV and highlight your value to potential employers,” says Huckle. AAT has recently partnered with Filtered, who provide excel training for members and students. If you’re looking to improve your excel skills, from power functions to power pivots find out more here (login required). This excel training also counts towards your CPD. Your soft skills are now perhaps more important than ever. Lorraine Twist, director at Michael Page, says: “Accountants are increasingly being placed in in roles where partnering with internal stakeholders is a key part of their job. So highlight your soft skills as much as you would showcase your technical abilities.” Stand out with keywords Employers choose candidates with analytical, commercial and communication skills, which are necessary for effective business partnering. Your relevant soft skills as well as “business partnering” are therefore among the keywords you should aim to include on your CV, says Twist. These keywords will also ensure that your CV passes through the initial Applicant Tracking System scan, the technology that is being increasingly used by recruiters to find candidates who match their search criteria. Huckle says: “Just make sure that the keywords you use (be it ‘payroll’, ‘credit control’ or ‘reconciliation’) are relevant to the job you are applying for and that the spelling is correct.” Recruiters will also look for relevant keywords in terms of candidates’ qualifications and experience. Here, honesty is a must. HireRight provide background screening checks for candidates in the financial services sector. Their EMEA managing director Steve Girdler says: “Background screening verifies your education and professional background, and your work history. Employers want to know that you have the skills and experience that you claim you have.” Worryingly, HireRight’s research shows that 73% of companies who use background screening find that candidates exaggerate their CVs or even misrepresent the experience and qualifications that they have. Add a personal touch Finally, your interests or hobbies can be just the thing to give your CV a boost, provided they are relevant in the context of the job you are applying for. Thorpe says: “Some hobbies reflect well on you if they show you work well in a team, have leadership skills or a great eye for detail.”
Clients, sanctions and the new ban on accountancy services to Russia Posted 08/09/2022 by AAT Comment & filed under Ethics, Members. In the first of a two-part series, we look at the latest regulatory changes in light of the Ukraine crisis Russia’s invasion of Ukraine prompted a wave of new sanctions against Russian individuals and Russian-controlled organisations and assets. This has been the global backlash against what was generally accepted as an unforgivable act. Western governments have scrambled to beef up existing regimes and introduce new measures to choke off the flow of capital into Russian hands. But this is not the end of reprisals. In a recent and major escalation, Foreign Secretary Liz Truss decided the UK will prohibit the provision of accountancy services to Russia. The change is being made under the banner of Russia Cut Off, and is intended to deny the aggressor state any access to accountancy, consultancy and PR services. The ban on accountancy services The ban came into effect at midnight on 21 July 2022. It is further evidence of the seriousness of the Ukraine crisis and the unprecedented level of scrutiny on UK businesses and their dealings with clients in Russia and beyond. “This is a broader prohibition than the current restrictions on dealing with persons who are ‘designated persons’ and placed on a sanctions list,” explains David Gomez of the Consultative Committee of Accountancy Bodies (CCAB). “The profession will need to exercise caution in dealing with persons and businesses that may potentially have links to Russia and dealing with jurisdictions that are known to have a significant presence of Russian business or which have been placed on the black or grey lists by the Financial Action Task Force.” Same game, higher stakes… However, the current crisis shouldn’t be seen as a complete game-changer. The new sanctions are an iteration of the existing UK Sanctions Regime and the UK’s AML Regime. The starting position is that the new sanctions imposed on Russia and Belarus should not require a major transformation of the procedures that firms are required to already have in place by the Money Laundering Regulations 2017 and the Anti-Money Laundering Guidance issued by the CCAB. In other words, firms should already have in place these procedures to ensure they are operating on the right side of the law. … but with onerous new twists However, there are new aspects to the regime that accountants should be aware of. The Government’s recent introduction of strict liability for breach of sanctions by the Economic Crime (Transparency and Enforcement) Act 2022 is a particularly important new factor to consider. “The Office for Financial Sanctions Implementation [OFSI] no longer has to prove knowledge or suspicion,” says Gomez. “They simply have to prove that on the balance of probabilities, a breach of sanctions occurred. The act also extends the powers of OFSI to issue a public report about breaches (even when no fine is imposed). Careful client vetting is crucial “That means you’ve got to be on top of your client list and make sure everything’s up to date,” says Jackson Quaker, professional standards policy development manager at AAT. Most of these checks should have been done when on-boarding new clients anyway, he notes. “That means, if you’re up to speed, it should be fairly seamless – and this shouldn’t be the start of the process – it should have started when you on-boarded them.” This is serious: beyond AML and politically exposed persons (PEPs), breaching a sanction is a criminal offence that could lead to a custodial sentence and/or monetary penalties, says Gomez. “It is imperative for firms to be tracking their client base against any sanctioned individuals or entities,” he says. “Bear in mind the dual reporting obligations – the requirement to make any suspicious activity reports to the NCA and the requirement to notify OFSI of any breaches in relation to sanctions.” Ignorance is no defence for a breach As with any breach of compliance, ignorance is no defence. “We need to be aware of our responsibilities and as accountants, we have to be sure that the money’s going to the right places,” says Christina Philippou, Director of Postgraduate Courses in Accounting and Financial Management and a former forensic accountant. So whether that means staying in touch with the legal department or to external legal advisers, “accountants must be ready to seek the right advice as and when necessary,” she explains. In practice, Philippou advises to keep an eye out for practical signs: “Changes of ownership are always something to look out for, along with changes in where the money is going, and any new payment structures that might come in – generally any changes to the working relationship should raise a query. In the vast majority of cases there’s nothing in it, but it’s always worth looking at.” This may entail making careful checks of shell companies and the ultimate beneficial owner (UBO). “That’s not always easy to do,” she says. “We’re increasingly seeing things rooted across the world and then it becomes harder.” So the best advice is to be alert, aware of the changing landscape and prepared to go that bit further with due diligence. Next time: we look at how to approach conversations with sanctioned clients. Words: Christian Doherty Photo: Richard Gleed
Why pay your AAT membership fee? Posted 08/09/2022 by Sarah Beale & filed under AAT news, Members. AAT CEO Sarah Beale MAAT explains why AAT membership is worth the fee – and how it will soon develop further. Recently, I asked a training provider why they chose to provide the AAT qualification and promoted it above other options. Their answer made me very proud. They told me: “I came into the training profession to help people gain genuine skills that would give them the greatest opportunity to have successful, rewarding careers; that make them valuable as individuals so employers, in turn, would value them and their credentials. In my opinion, AAT is the embodiment of that.” After seven months in the job, I believe more strongly than ever in what AAT stands for. The longer I am in the business, the more evidence I see of a desire to further raise the standard of what we are doing. And we are working hard on a strategic plan that builds on our inclusive foundations and raises the bar again. The best route, not easiest Those of us who have taken the AAT qualification know we didn’t choose the easy route into the profession. But we did choose the best route. That is why there is such camaraderie within the AAT family – an authentic sense of achievement and respect. While attaining this level of technical excellence makes us rightly proud, it is not a one-off event. Knowledge is like fitness – it has to be maintained or it will decline. AAT membership ensures that competence does not diminish. As a MAAT or FMAAT, you have access to up-to-date information, resources, a wide community, and our local branches’ support network. Some 80% of our members believe AAT has helped them improve their earning potential, and we can state that members on average earn £5,500 more than non-members. Our members enjoy access to 600 pieces of CPD content and nearly 18,000 have engaged in our CPD programme this year – which is why our retention rate of 92% is one of the highest in the profession. These are all quantifiable benefits for individual members, but employers gain in tangible ways, too. When they hire someone with AAT credentials, they know they are getting someone who add value. Looking to the future, we want to develop our membership categories to encourage progression and ensure our members attain real credibility at different stages of their career. We’ll also increase recognition for those who continue to build their skills. Members give back One of my learning points during my first year as CEO is that it’s not all about what individual members receive. Many of you also want a chance to give back. The power of that is much greater than I had first realised. What we can do as an AAT community is exciting. We stand for providing access to long-lasting careers in finance – as well as providing skills that can underpin many other careers. We want a stronger voice Our size and credibility give us the ability to speak out – and be heard – in public affairs. We already influence fiscal and education policy, and make sure the public is aware of the benefits of using regulated accountants. Our sights are set on doing more in the future. As a charity, we want our services to benefit those under-represented in our profession and who need support to get started. We want to engage with all potential entrants, from career changers to those in schools, to make it attractive and as easy to access as possible. The AAT family can make these things happen, benefitting individual careers,our profession and society. That’s the ambition of the strategic plan we are all working on within AAT, and that I look forward to revealing by early 2023.
The rise of the product specialists and what it could mean for CPD Posted 08/05/2022 by Neil Johnson & filed under CPD, Members, Run your business. There’s a growing trend for accountants to set themselves up as specialists – and not just in the traditional area of tax. Once upon a time, if an accounting firm sought to branch out and add a new service, it would usually find a way to specialise in tax, whether by hiring, acquiring, or partnering. As firm’s strive to become one-stop shops for their clients, we’re seeing greater diversification in the services and specialisms on offer. The most obvious is business advisory, whereby accountants advise clients on growth strategy, digitalisation, restructuring, or whatever’s asked for. But we’re increasingly seeing more specialist fields, such as wealth management or estate planning, in the service lists of small to medium size practices. This has implications not just for businesses but for individual accountants’ CPD and career choices. Why specialise? There are many reasons why a firm might consider adding services and specialisms — new business, strengthening client relationships, preservation, sink or swim. Perhaps the most clear cut is that it often makes business sense. Accountants are trusted advisers, often with years of experience and a deep knowledge of a client’s business, so who better to advise them? “Some clients think the world of their accountants. If I say jump and explain why, they’ll certainly consider jumping. Most accountants offer advice because it’s in the client’s best interest,” says Gordon Gilchrist, a consultant at 2020 Innovation. For AAT council member David Frederick (pictured), Managing Partner at Marcus Bishop Associates, the decision to specialise in estate planning was to strengthen client relationships, but it also turned into a new business driver. “Amid the process of digitising all our historical data, I noticed that many of our clients were ageing. So I figured we needed to offer them additional services.” Frederick’s decision has paid dividends, with estate planning going from strength to strength. “We now provide other accounting firms and some law firms with our probate, wills and Lasting Powers of Attorney (LPA) services. Many accountants don’t provide such services. They’ll say it’s not what they trained for, which is probably true, our training is very technical, very narrow. But to service the clients of tomorrow and today, you need to think beyond yesterday’s learning.” Norman Younger of Maximiti is clear on why a practice might look to specialise, especially if it requires undertaking new qualifications — to attract new business. As someone who did a course to add dispute mediation to his repertoire, he understands the motivations, as well as the effort required and opportunities. “The bottom line for a practitioner to consider going on a course is ‘will it cut the mustard and attract new clients,” he says. “And would you be confident shouting about it in the golf club?” Younger also notes a defensive element. “There is definitely the perception that practices need to specialise as there are no barriers to entry to offering routine accountancy work. ‘Accountant’ isn’t term protected like, for example, solicitor.” How to do it — individuals Looking at it first from an individual perspective, Mark Perrin, a Partner specialising in strategic business advisory at Menzies, was an AAT prize winner back in the 80s. AAT gave him a good start from where he went on to become a chartered accountant, along the way gaining experience in accounts, audit and tax, and building a good range of knowledge and experience in various sectors and businesses. But it was working for and with entrepreneurs that grew his desire to get into advisory. “Interacting with entrepreneurs, asking them questions, getting them to think differently, seeing that you’re making a difference to their business, you notice a real spark in energy, and it really gave me the appetite to want to work in advisory.” Perrin developed his mindset and skillset, something which evolved over time. And while he went on courses internally and externally, it was predominantly his interactions with businesses that provided his learning, as well as his track record. “I started interacting with businesses in a different way, challenging them about the future, and I evolved skills in this way. I’ve been working like this for a long time now. I’ve come from a traditional accounting background and gained a lot of experience working with businesses in an advisory mindset.” How to do it — firms How a firm goes about specialising really depends on size, resources and the target specialism. For small firms a partnership with a local specialist is well proven. “A sole practitioner can’t afford to simply go off and buy an expert, not least because they don’t have enough clients yet. To make it worth anybody’s while, you have to have enough critical mass to need a VAT consultant, or a corporate finance consultant, or an insolvency practitioner. These are areas where smaller firms hook up with a local firm, preferably another accountant, because they hold their knife and fork the same way, they understand that if I give you one of my clients who wants to sell out and you are a corporate finance expert, you’ll take care of my client without asking for the accounts and the tax return, although you could, you probably wouldn’t,” says Gilchrist. For Gilchrist, there’s a specialism sweet spot from where firms can really begin to branch out into additional services: combining good use of cloud accounting software to not only do compliance work, but also to support business advisory to a client base in a specific sector. “Let’s say for example you specialise in dentists. You help them make more money; when they make more money, you help them save more tax; then you help them with their wealth management and longer-term financial independence, and so on,” he says. This is where hiring, partnering with or acquiring a local specialist comes into play. Especially for a specialism like wealth management, which is regulated, you need financial planners. For accountants to be able to perform a wealth management role, it would be a career change not a new skill. Developing in-house is doable, but it can be very resource demanding — money and time — which few practice owners, especially smaller or newer ones, can afford. So the partnering route is likely the most quickly achievable, it shares risk and is proven to work. “Small firms have to build it up slowly. If you’re a big firm of a million pound turnover and hundreds of large clients who need a certain service, you take £50,000, hire someone and you’ll get it back. But not when you’re doing £150,000 a year in fees, with only one or two clients who might benefit from the new service. It’s hard. It needs investment,” says Younger. Proving you’re bonafide Accountants are unlikely to be able to learn new skills in a hurry, continues Younger. “I’m trained as a mediator. I went on an intense and expensive course, so it is feasible, but getting business off it is much harder. At the time of the course, I had 15 years experience dealing with situations, but I didn’t have a qualification to put in front of my name. So for me it’s a combination of experience and the qualification. I’ve seen an uptake because of the qualification, the letters after my name make a difference. But experience is the one key barrier. You can’t buy experience or do a course in it.” Frederick also notes another barrier being recognition, with the public, businesses and some institutions not recognising that accountants perform certain specialisms, in his case probate. “Clients never concern themselves with letters after the name, which is a problem that leads to a whole can of worms, hence AAT’s Accountable campaign to safeguard the term accountant and the work that we do. So I think we need to be able to signify that we have a strength, or a specialism. For example, there are even some in the finance industry that don’t understand that accountants do probate. And some clients don’t understand, because historically probate has been provided by lawyers. “It’ll take time before the word spreads through the marketplace, so having things like digital badges and recognition for CPD would be a good start. It’ll help members to market themselves in social media and on their websites. Anything that helps raise their profile in the competitive noise can only be a good thing. I think it would be a great thing for AAT too because it would raise our brand and our profile.”
HMRC Customs Declaration Service: how to transition from CHIEF Posted 08/05/2022 by Annie Makoff & filed under Brexit, Members. UK businesses involved in the import or export of goods will soon need to transition to HMRC’s customs IT platform, Customs Declaration Service (CDS) which replaces Customs Handling of Import and Export Freight (CHIEF). Closure of the CHIEF system will be done in two stages: Import declarations will close from 30 September 2022Export declarations will close from 31 March 2023. CHIEF stopped accepting registrations for new importers in July. HMRC wrote to businesses at the end of May to inform them of the changes and what they’d need to do to transition successfully. One of the main differences between the two systems is around efficiency: CHIEF uses paper-based rules and Community Customs Codes whereas CDS uses Union Customs Codes through data processing functionality. Custom codes used within CHIEF are generated for each goods item whereas CDS uses codes that are more generalised and are dependent on circumstances. CDS may be more flexible but it’s also more complex. CHIEF is based around paper forms in terms of design, so many boxes accept free text. CDS however relies predominantly on codes. It includes more data elements than the previous system to allow for varying circumstances. It’s important that accountants and the businesses they support who will be affected by these changes become familiar with CDS. We spoke to several accountants to ask their views and advice on transitioning to the new system. A comprehensive and compact update on Financial Reporting Presented by Steve Collings, this one-day mastercourse will give you the tools to tackle your reporting challenges, prepare you for the compliance period and help you to confidently advise your clients. Book your place now to capitalise on the new developments, be future-ready in this highly informative online course. Book now Ensure appointed customs agencies are CDS-compliant and make use of HMRC’s ‘Trader Dress Rehearsal’ software Christine Newitt, VAT spokesperson, Kreston Global and VAT Director, Duncan & Toplis CHIEF has been running for almost 30 years, starting at a time when hand-completed paper forms were the norm and there were fewer imports and exports. HMRC recognised the need to move onto a modular, flexible, data-driven system several years ago, so the phased move should mean that this final switch over phase is not the first time businesses have heard of CDS. However, HMRC’s regular CDS updates have been broadly ignored. The latest round of communication has sparked concern and queries by businesses of all sizes, given how soon CHIEF is to be closed. Next steps: Businesses who appoint a customs agent, freight forwarder or fast parcel operator should ensure their customs service is CDS-compliant.Businesses that submit their own declarations or intend to in the future should investigate potential CDS-compliant declaration software. HMRC has collated a list of known providers here: https://www.gov.uk/guidance/list-of-software-developers-providing-customs-declaration-support. HMRC has also provided a ‘Trader Dress Rehearsal’ service for businesses to familiarise themselves with CDS declarations using live or demo data without financial payments or licenses or quotas being affected. Verdict: Ensure the appointed agency or company is CDS-compliant and make use of HMRC Trader Dress Rehearsal software to familiarise yourself with CDS before CHIEF closes. Complete necessary admin tasks to ensure a successful transition James Lindley, Partner, Castell Wealth Management HMRC is presenting CDS as a time-saving platform allowing businesses to submit customs documents digitally and safely using the Secure File Upload service. CDS provides: Access to financial information in a single financial dashboard (view account statements, make payments and control standing authority).Real-time notifications on customs declarations and movementsAccess to a duty deferment account. Next steps: Businesses need an Economic Operator Registration and Identification Number for CDS as well as a Government Gateway User ID & Password. Businesses can then ask an intermediary or authorised software provider to complete the declaration. Verdict: CDS is data-driven and future-fit but admin tasks must be completed for a successful transition. Be prepared for potential administration issues Shaun Hall, Customs Partner and Gareth Bevan, VAT Partner, RBC Customs CHIEF is based on the Community Customs Code (CCC) and Single Administrative Document (SAD) Harmonisation rules (boxes) whereas CDS is based on the Union Customs Code (UCC) and Data Integration and Harmonisation rules. It’s a flexible modular platform that is built to scale with the growth of international trade. There is a greater emphasis on digitisation compared to CHIEF. This has interactions with other aspects of VAT and customs compliance. Some of our clients have already experienced problems due to having multiple, unlinked Government Gateway accounts and had difficulties with the sign-up process. We recommend beginning the transition process as soon as possible to allow for potential issues. Next steps: Undertake the actions listed in HMRC’s guidance (see Trader Checklist). Verdict: Clients have already experienced administration issues when registering with CDS, so be prepared to contact the HMRC helpdesk if there are issues. CDS is more detailed than its predecessor, so early planning is key Ian Worth, director, VAT and customs duty services, Crowe CDS requires greater accuracy of details including buyer and seller details and valuation methods and clarity around how goods are to be valued for import Businesses’ customs agents should be liaising with their software provider now to manage the migration from CHIEF to CDS. As CDS is more comprehensive in its data coverage, businesses need to provide clear instructions to customs agents to avoid delays or administrative headaches. Responsibility for the declaration of complete and accurate information rests with the importer, not with their customs clearance agent, so early planning and open dialogue is key. Verdict: CDS is more detailed than its predecessor so early planning prior to transition is key. A comprehensive and compact update on Financial Reporting Presented by Steve Collings, this one-day mastercourse will give you the tools to tackle your reporting challenges, prepare you for the compliance period and help you to confidently advise your clients. Book your place now to capitalise on the new developments, be future-ready in this highly informative online course. Book now Transition to CDS now to avoid unnecessary import delays later Ben Knock, MD, VAT Compliance, Consulting and Reclaim, Ryan HMRC has contacted all UK VAT-registered businesses who have imported or exported goods to advise them about the switchover to CDS and provided checklists and guidance. However, there is a difference between HMRC advising on an imminent change and a business taking action. With barely two months to go until the imports deadline, I’m not convinced that every affected business has addressed what’s needed, especially non-established businesses where written correspondence often takes several months to actually reach them. Some traders are even delaying being CDS-ready as they have invested in other activities that have previously been postponed or delayed by HMRC. Delaying transition could cause businesses significant delays to importing goods. Next steps: UK VAT-registered businesses that import and export goods need to transition now to avoid delays. Verdict: Take action now to avoid unnecessary import delays later.