How accountants need to respond to the crisis in Ukraine

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

Accountancy practices and finance teams must follow regulations relating to sanctions against   – or they could face legal penalties.

The effort required to comply with sanctions is worthwhile. Doing so will protect your businesses, brands, staff, clients and the profession from the risk of exposure to designated individuals and entities, their funds or investments. You will also be supporting the embattled people of Ukraine.

The UK’s sanctions

“The thrust of the UK sanctions regime is to prevent the making available of an economic resource to a designated person or entity,” says David Gomez, ICAEW’s senior lead, ethics.

The sanctions broadly target individuals and entities involved in destabilising Ukraine and, since February this year, those involved in obtaining a benefit from or supporting the Russian Government – such as Russian oligarchs.

The current sanction regime against Russia has been in place since 2019 and include the following prohibitions:

  • Asset freeze
  • Dealing with transferable securities and money market instruments
  • Loans and credit arrangements
  • Investments in relation to Crimea
  • Travel ban
  • Trade in military and dual-use items
  • Trade in energy-related goods and related services
  • Imports of any items originating in Crimea
  • Trade in infrastructure-related goods with Crimea
  • Infrastructure and tourism services to Crimea
  • Movement of cruise ships to Crimea

The regime has been amended eight times, six this year in response to Russia’s actions in Ukraine:

  1. 31/12/2021: Technical tweak
  2. 31/12/2021: Technical tweak
  3. 10/02/2022: Change to the designation criteria
  4. 01/03/2022: Financial sanctions
  5. 01/03/2022: Trade sanctions
  6. 01/03/2022: Transport sanctions in relation to vessels
  7. 01/03/2022: Financial prohibitions relating to the central bank
  8. 08/03/2022: Aviation and trade prohibitions

You can stay up to date with changes and amendments to the sanctions list by subscribing to the free Office of Financial Sanctions Implementation (OFSI) e-alert. Subscribe here.

Belarus sanctions

Sanctions against Belarus are conducted under the Russia sanctions regime and currently target the Belarusian chief of the general staff, three other deputy defence ministers and two military-affiliated enterprises.

US and EU sanctions

Businesses need to bear in mind that the US and EU are also imposing sanctions. Therefore, UK businesses with exposure to and dealings with US and EU entities will have an obligation to consider the prohibitions imposed by these jurisdictions. Also, be mindful of the extraterritoriality of the US dollar in relation to US sanctions.

First things first – ethics

The Consultative Committee of Accountancy Bodies (CCAB) published guidance on the Ukraine crisis on 2 March. First and foremost, it reminded accountancy professionals of their ethical obligations under the IESBA Code of Ethics and individual codes of the professional bodies:

  • Act in the public interest
  • Apply fundamental principles:
    • integrity
    • objectivity
    • Competence and due care
    • Professional behaviour, including complying with relevant laws and regulations, and avoiding conduct that would discredit the profession
  • Quickly respond to non-compliance with laws and regulations

Rule of thumb

Accountancy professionals, particularly leaders, should be fully aware of and keep up-to-date with sanctions, including their scope and potential impact, as they apply to their business, workforce and clients. This can be done by checking the relevant lists of sanctions and sanctioned individuals and entities published by authorities in their respective jurisdictions.

For the UK, these are the key sources of information:

Use existing compliance procedures

The recent sanctions announcements are an iteration of the existing regime. Similarly, the UK’s Anti-Money Laundering (AML) regime is unchanged. So firms should already have the compliance procedures they need.

“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,” said Gomez.

Firms should already review their client bases for politically exposed persons (PEPs), and now ought to be even more vigilant.

“In terms of internal processes, it’s important to ensure staff are trained and alert to the risks and that they know who to consult within the firm if they have concerns when on-boarding a new client or dealing with an existing one that might have overseas links. Firms need to ensure that any new risks are flagged quickly and action taken where appropriate,” says Gomez.

Practices: review client base

Firms should review their client base afresh in the light of world developments to comply with regulations and protect their reputation. The updated sanctions may cause clients to become newly classified as PEPs. It is the responsibility under the AML Regulations 2017 of practices to conduct risk assessments and perform Enhanced Due Diligence (EDD) checks.

If you have clients, potential or existing, identified as high risk, it’s critical that you fully understand their source of funds and wealth. As many people subject to sanctions may also be PEPs, it’s imperative your procedures are in place and up-to-date to identify whether a client, or the beneficial owner of a client, is a PEP or a family member or known close associate of a PEP.

You should assess the level of risk associated with high-risk clients and those identified as PEPs and tailor your EDD accordingly. You should also continue to apply EDD for at least 12 months after a client ceases to be a PEP – longer if necessary to address the risk of money laundering or terrorist financing.

Specialised software and tools are available with ranging costs, or you may seek to consult legal or expert advice, depending on the scope and size of the firm. It is for businesses to decide what is appropriate for their risk exposure and business model as to how much screening and due diligence they undertake.

Open source checks are encouraged on existing and prospective clients. This requires going deeper than simply ‘taking the client’s word for it’, verifying their identity or a quick Google search. Information that exists in the public domain can provide a more complete picture of an individual, helping you to make better decisions early on.

Here are a few tips from ICAEW on open source searches:

  • Undertake complex searches using strings of words, especially search terms that indicate relations to ‘Russia’ or ‘Russian companies’. Words that indicate undesirable relationships can also be used.
  • Newspapers, online news and subscription news services should also form part of due diligence. News aggregation services are also useful and reduce time spent scouring multiple outlets.
  • Review and document the information obtained and check for consistency with anything provided by the client while applying professional scepticism.
  • If alarm bells ring when you are conducting research, raise any concerns directly with the client. Information in the public domain can be discussed openly, and remember, the firm’s reputation could be at stake.

Finance teams: ownership, supply chains, trade, transport

Gomez’s topline guidance for CFOs and businesses is to obtain advice tailored to your specific circumstances. But as above for practices, much of the guidance revolves around knowing who you’re in business with.

It is vital to fully understand how an organisation is structured and where it is domiciled. “Who are the ultimate owners and beneficiaries? Difficulties might arise if the CEO is a sanctioned individual, or if subsidiaries are part-owned by sanctioned individuals or their associates,” said Gomez. OFSI has issued guidance on ownership and control, which should be consulted.

Consider too where payments come from and go to, or to whom? Are you exposed through your transactions to PEPs, or entities and individuals on the sanctions list? Companies with overseas subsidiaries or doing business in other jurisdictions will need to ensure that they comply with all relevant sanctions regimes (not just those imposed by the UK). Refer to section 3.6-3.8 of OFSI’s Monetary Penalty Guidance which relates to UK nexus: https://www.gov.uk/government/publications/financial-sanctions-faqs

As above, it’s critical to understand the owners of the entities and individuals that the business is dealing with. What is the source of the goods/materials being imported to UK, including where they originated or where they were consigned? What is the end use and destination of the goods being exported?

“If prohibited goods or services are being used somewhere in the business’s operation – or end up being used in a prohibited sector in Russia – this might be a potential breach of sanctions and deemed to be making available economic resources to prohibited persons,” said Gomez. The DIT recently issued a notice to importers and exporters.

There are specific exemptions and general licences that businesses may be able to use. Refer to the Export Control Joint Unit for guidance.

“Further down the line, Companies may wish to ensure that they have in place procedures to ensure that they and their suppliers can spot exploitation of Ukrainian refugees arriving in the UK,” said Gomez.

Lastly, how are your company’s goods being transported? Under what flag/registration? Where are the vehicles of the company (and any subsidiaries) located? Which ports have bans in place?

Effectively, the Department for Transport’s advice echoes that mentioned above – ensure you understand your operation (including ownership and control, supply chain and end user issues). Get to grips with the sanctions regime. Ensure you understand your legal and professional obligations.

Who to report to

You are legally obliged to report to OFSI if you know or suspect that a breach of financial sanctions has occurred, that a person is a designated person, or you hold frozen assets and that knowledge or suspicion came to you while conducting your business. Contact OFSI at the earliest opportunity using the reporting form on gov.uk.

If you suspect a client of money laundering or suspicious activity, you’re legally required to report them with a suspicious activity report to the National Crime Agency (NCA).

More to consider

OFSI licences

It is possible to apply for licenses through OFSI to work with designated individuals or entities. A licence from OFSI is written permission to carry out an act that would otherwise be in breach of financial sanctions prohibitions. Find an introduction to OFSI licensing here.

Asset offload

Adam Williamson, AAT’s Head of Responsible Business and Policy, says beware of those who have been sanctioned seeking to offload assets. “Vulnerabilities may occur for people who are less experienced and not used to dealing with such practices. They could be viewed as likely candidates for exploitation. So if you’re suddenly getting approaches from people outside of your normal client base or it’s unclear how they found out about you, be wary.”

Economic Crime Act

On 14 March 2022, the Economic Crime (Transparency and Enforcement) Act 2022 became law, following substantial amendments made by the House of Lords. While the transition period for the law is six months, it is important to understand the elements that relate to the Ukraine crisis:

  • An expansion of the Sanctions and Anti-Money Laundering Act 2018 to allow prohibitions against a wider range of persons.
  • Urgent procedures for the designation of individuals
  • New strict liability test and name and shame provisions
  • Register of overseas entities
  • Changes to Unexplained Wealth Orders regime

See the Government’s announcement here and appraisals by AAT and ICAEW (here and here).

Cyber security

The crisis has elevated the risk to cybersecurity, with experts warning of the potential for attacks large and small aimed at causing as much disruption to as many organisations as possible. Therefore, organisational resilience is crucial, particularly if your business has links to Russia. Even if not, it’s important that from the bottom up you know the risks and have taken actions to protect your business. ICAEW published an article called The Cyber threat from Russia is real.

Crypto

The Financial Conduct Authority highlighted in a recent statement that financial sanctions regulations do not differentiate between cryptoassets and other forms of assets. “The use of cryptoassets to circumvent economic sanctions is a criminal offence under the Money Laundering Regulations 2017 and regulations made under the Sanctions and Anti-Money Laundering Act 2018.”

Glossary

Designated entity –  is an individual, entity or body, listed under UK legislation as being subject to sanctions. 

Economic Crime (Transparency and Enforcement) Act 2022 – creates a new register of overseas property owners and revises Unexplained Wealth Order provisions.

The OFSI is the Office of Financial Sanctions Implementation.

PEP – a politically exposed person is an individual who is or has been entrusted with a prominent function. Many PEPs hold positions that can be abused for the purpose of laundering illicit funds or other predicate offences such as corruption or bribery.

Unexplained Wealth Orders (UWOs) give law enforcement an opportunity to confiscate criminal assets without ever having to prove that the property was obtained from criminal activity.

What accountants should know about the new Economic Crime Act

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

The new Economic Crime (Transparency and Enforcement) Act creates a new property register to tackle illicit wealth.

What changes does the legislation bring about?

The new Act should mean the UK can move more quickly to impose sanctions against oligarchs already designated by our allies. It includes reforms to Unexplained Wealth Orders (UWOs), but the key aspect of the new legislation is the introduction of a new Register of Overseas Entities, requiring those behind foreign companies which own UK property to reveal their identities.

This legislation had been promised by Government for several years, “when Parliamentary time allows” but the Ukrainian conflict concentrated the Government’s mind. It was passed within an extraordinarily short period of time. Instead of months for initiation, debate and scrutiny, all three Parliamentary readings were squeezed into a single day.

What does the Register of Overseas Entities mean?

Entities who refuse to reveal their ‘beneficial owner’ will face restrictions on selling the property and anyone caught breaking the rules can be fined up to £2,500 per day or face up to 5 years in prison.

Companies House have already started work to implement the register as quickly as possible, working closely with the UK’s 3 land registries. It’s important to note that any foreign company selling properties between 28 February 2022 and the full implementation of the register will also be required to submit their details at the point of sale.

Last week Treasury Minister John Glen MP wrote to all accountancy professional bodies urging them to ensure its regulated members are aware of the risk of criminals seeking to evade the requirements of the new Register and we urge accountants to ensure they take note and report any suspicious activity.

Will the Register of Overseas Entities be effective?

AAT believes that the legislation is a step in the right direction and will improve the situation. However, loopholes mean it is not nearly as effective as it could have been.

Whilst the legislation was implemented rapidly, it’s an issue that has been discussed in great detail in recent years so could hardly be considered new or territory that Government was not well versed in tackling. As such, this new Act represents a missed opportunity to take more meaningful action.

For example, instead of requiring the disclosure of the ultimate beneficial owner of the property it simply requires the disclosure of the beneficial owner of the overseas entity that, in turn, owns the property. This will not always be the same and therefore creates an opportunity for some individuals to escape registration. So, the much highlighted problem of multi-layered and opaque corporate structures will largely continue and further legislation is going to be essential to combat this.

There are other areas where changes do not appear to have gone far enough. For instance, the deadline for overseas companies holding UK property has been reduced from 18 months to 6 months. 18 months was clearly too long but is 6 months really necessary? A 30 day requirement, or 60 at most, would appear perfectly reasonable for legitimate organisations whilst acting as a stronger deterrent for those seeking to hide their wealth.

Wider issues

The legislation also does nothing to stop oligarchs or other criminals from hiding wealth in any of the UK’s overseas territories. Whilst the tax havens of Jersey, Guernsey and the Isle of Man have finally agreed to set up a public register of company owners, this will not take effect until the end 2023 at the earliest, providing a further 18 months for those hiding wealth to squirrel their wealth away to other havens.

The Government has said the Economic Crime Act is just one part of a wider package of legislative proposals to tackle illicit finance which will be introduced in Parliament in the coming months, including reforming Companies House and introducing new powers to seize crypto assets more easily. Let’s hope that this renewed focus on tackling illicit finance will also see the Economic Crime Bill revisited and strengthened.

HMRC update – Ukraine aid and Self Assessment payment plans

Posted by & filed under HMRC updates, Members.

Moving humanitarian aid to Ukraine will now be easier, thanks to new steps announced by the UK Government.  

Help for organisations sending humanitarian aid to Ukraine

The Government strongly recommends organisations and people, who would like to help, donate cash through the Disasters and Emergencies Committee (DEC) campaign or other trusted charities, rather than donating goods. Cash can be transferred quickly to affected areas, and individuals and aid organisations can use it to buy what’s most needed. The Government has offered to match-fund donations to the DEC campaign up to £25m. 

The UK has already committed £220 million of humanitarian assistance, which will be used to save lives, and protect vulnerable people in Ukraine and neighbouring countries. This support is in addition to a £174 million economic package for Ukraine, taking the UK’s overall support for Ukraine during the current crisis to almost £400 million.  

The Government recognises many individuals and organisations have already worked hard within their communities to collect aid and wish to see those donations reach those in need as quickly as possible. In order to ensure organisations can send humanitarian aid more easily, we have removed the requirement to complete customs paperwork.   

Regulations laid before the House of Commons yesterday mean organisations moving goods designated as humanitarian aid from the UK to support those affected by the humanitarian crisis in Ukraine no longer need to complete electronic customs declarations. Instead, they will only be required to make an oral or by conduct declaration and will not be required to supply any customs documentation. Some larger vehicles (such as HGVs and those over 3.5 tonnes) will still be required to use the Goods Vehicle Movement Service to move humanitarian aid between Great Britain and the EU to support those affected by events in Ukraine.  

Guidance on goods that are eligible for this new, simplified process is now available. Some goods are excluded from this easement. For example medicines are not included to ensure they are obtained from the UK licenced supply chain for patient safety reasons. Food, however, is eligible for the easement. 

Organisations are welcome to contact the Export Support Service (ESS) on 0300 303 8955 with questions relating to the situation in Ukraine and Russia. The helpline is available every day from 8am to 10pm. They can also contact our online support team. 

HMRC’s Customs & International Trade Helpline advisers are also available Monday to Friday 8am to 10pm, and 8am to 4pm at weekends, to help with questions about exporting, importing and the Goods Vehicle Movement Service. You can contact them on 0300 322 9434. 

Set up Self Assessment payment plans by 1 April

More than one million customers took advantage of the extra time to complete their Self Assessment. HMRC has given customers until 1 April to pay their outstanding tax bill or set up a Time to Pay arrangement to avoid receiving a late payment penalty.

Time to Pay allows those who need it the option to spread their tax payments over time. Self Assessment taxpayers with up to £30,000 of tax debt can do this online once they have filed their return.

If customers owe more than £30,000 or need longer to pay, they should call the Self Assessment Payment Helpline on 0300 200 3822.

A full list of the payment methods customers can use to pay their Self Assessment tax bill is available on GOV.UK.

Electronic sales suspension 

HMRC’s new powers and penalties to tackle the form of tax evasion known as electronic sales suppression (ESS) have come into effect.

ESS is where a business manipulates electronic sales records to hide or reduce the value of individual transactions. This reduces the recorded turnover of the business and its tax liabilities, while providing an apparently credible and compliant audit trail.

The new powers aim to ensure people pay the right amount of tax and level the playing field for compliant businesses by tackling the possession, making, supply and promotion of ESS tools (ESS software and hardware). The penalty is a fine of up to £50,000. There are also new ESS-specific information powers. These powers allow HMRC to obtain details of those involved in the supply chain of ESS tools and to understand more about the tools.

Safeguards for taxpayers include giving businesses a 30-day grace period to remove the software to avoid a penalty and the right to appeal against any penalties.

Time for change: AAT’s initiative for a fairer, better tax system

Posted by & filed under Members, News, Tax reform, Time for change.

In the aftermath of the Spring Statement, AAT is calling for a national debate to create a better tax system.

The Spring Statement has created many reactions. Some will applaud Rishi Sunak for springing a few surprises with very little for manoeuvre.

But others feel they have watched a conjuring trick showing headline tax cuts against the reality that seven out of eight will pay more tax by the end of this Parliament.

Others are ruing the missed opportunity to introduce a windfall tax on oil and gas companies, or are realising that the eye-catching five pence off fuel duty will benefit the top 20% of households and reduce the incentive to buy electric vehicles.

There was also the hopeful announcement of a Tax Plan for the life of this Parliament, which turned out to be mostly a repackaging of the Chancellor’s statement.

Time for change

Against this backdrop, AAT is calling for a national debate to make the tax system fairer and more efficient. We have published a new report: Time for change: towards a fairer more efficient tax system.

The report brings together an array of experts spanning the political and social spectrum. Together they propose an array of ideas ranging from overhauling corporation and inheritance taxes to scrapping council tax and taxing carbon and meat consumption.

  • A windfall tax
  • Simplifying taxes
  • A carbon wealth tax/green taxes
  • Social offsetting
  • A strategic approach
  • Inheritance tax
  • Corporation and income tax
  • Environment
  • Property tax reforms

It’s a broad range of concepts, but they share one thing in common: they are offered as ideas to make the tax system more effective and more equitable. With public finances stretched as tight as piano strings by the pandemic, and the cost of living now spiralling due to the energy crisis and the war in Ukraine, it’s never been more critical to achieve both goals.  

Through Time for change AAT wants to begin a national dialogue on the best way forward. But it also has a message of its own – a fairer and better system will only be fully achieved by taking a long-term approach to taxation.

In the spirit of debate, we want to know what others think, so we invite our members to tell us through our online survey.

Whad do you think about taxes?

AAT wants to know what members think about the ideas in its report: Time for change, towards a fairer, more efficient tax system. Click the link to join the debate.

Give feedback

A windfall tax

Could taxing oil and gas companies help with the energy crisis?

The UK is facing its worst energy crisis – and biggest drop in living standards – in decades. A spike in gas prices has resulted in a rise in energy bills for households, but also record profits for North Sea oil and gas giants. Shell’s annual profit quadrupled to $20bn in the last year, while BP’s chief executive described the market as a “cash machine”.

Earlier this year Labour proposed a windfall tax on additional profits made by oil and gas companies, with the revenues helping reduce energy bills for low-income consumers. In Time for change Pat McFadden MP, Labour’s shadow chief secretary to the Treasury, argues such a windfall tax would “prove a vital lifejacket for millions of hardworking families who are struggling to pay their bills.”

Simplifying taxes

How to make the byzantine world of UK tax easier to understand

The UK tax code is a notoriously abstruse beast. Twelve times longer than the King James Bible, it’s 50 times the size of Hong Kong’s tax code and has trebled in length in the last 25 years.

These facts are provided in Time for change by Mark Littlewood, director-general at the Institute of Economic Affairs thinktank, as part of his overall argument that the “bloated and unfair” UK tax system results in loopholes that encourage “people and businesses to avoid paying their ‘fair share’.”

To simplify things, Littlewood suggests many things, including:

  • Pooling taxes together, such as air passenger duty, the aggregates levy and renewables obligations into either an improved emissions trading scheme or a carbon tax.
  • The eradication of business rates, council tax, the community infrastructure levy and other property taxes. Instead, there could be a single tax on land value.

A lack of tax literacy from the UK public doesn’t help matters. As Littlewood puts it, “For many Britons,

paying tax is something that happens without requiring any real engagement from them. When they receive a payslip at the end of the month they see the amount they have paid to HMRC, but they never really ‘own’ that money. It never enters their bank account.”

To remedy this, he suggests ditching PAYE altogether, with all Britons paying their taxes directly to HMRC. Controversially, this would mean everyone would complete a simple annual tax return.But it would be a price worth paying. Littlewood believes these measures “would force people to actually see the money going out of their account at the end of the tax year,” and would boost accountability.

Spring Statement webinar

Join this webinar, sponsored by Quickbooks, to get an update on the national insurance and dividend tax changes, VAT and issues affecting businesses and companies.

Register

Environment

Could carbon and food taxes turn us from meat?

The idea of a food levy, particularly a sugar tax to improve eating habits, has been proposed by successive governments since David Cameron. But it hasn’t progressed any further, mainly because it “hits those on lower incomes but may do nothing to alter the conduct of the well-off”, as Conservative MP Sir John Redwood points out in Time for change.

Meanwhile, a much-mooted ‘meat tax’ which could tackle the environmental impact of meat production (animal agriculture creates nearly 15% of global greenhouse gas emissions) has been dismissed by experts due to its unpopularity with the public, job losses and the risk of black market meat.

Perhaps a more effective tax solution is the one outlined by Richard McIlwain, chief executive of the Vegetarian Society in Time for change. He suggests a two-pronged approach: a) a consumer-focused carbon tax (which could be priced to reduce consumption of meat and other high-carbon products) and b) a food tax targeted at the public’s poor diets and consumption of unhealthy foods.

Corporation and income tax

Corporation tax should go down to 15% while income tax should be abolished for half of households

Last year’s historic OECD tax deal saw a minimum corporate tax rate of 15% adopted by nearly 140 countries across the world, which it’s hoped would force multinationals to pay a fairer share of tax. In Time for change, Sir John Redwood proposes the UK also drops its corporate tax rate to 15%, down from its current level of 19%.

Time for change also includes some significant proposals for income tax. Stephen Herring, member of the Taxpayers’ Alliance and AAT’s Tax Panel suggests introducing a fixed-rate income tax of 20% for any earnings made from private pensions, removing the £50,000 higher income tax charge (which he argues creates an “unnecessary income tax cliff edge”) and freezing the £150,000 threshold for the 45% income tax rate.

Meanwhile, Tom Burgess, Director at Taxpayers Against Poverty suggests that income tax should be abolished for half of households replaced by a tax on the assets on the wealthiest 1% of the population which, he says, “would make no difference to their lifestyle.”

Inheritance tax

 Is it time for the unpopular tax to finally be retired? 

Inheritance tax is the UK’s most hated tax, according to a study by Hargreaves Lansdown last year. Despite only 4% of the population’s estates paying the death levy, the tax is reviled because it’s believed rich families avoid paying it by exploiting loopholes and giving assets away.

In recent years, AAT has suggested making the tax more relatable to the public by halving the current headline rate from 40% to 20%,

Tax expert Stephen Herring goes one step further. In Time for change, he suggests scrapping inheritance tax altogether, which could be financed “by removing the Capital Gains Tax free uplift to probate value for beneficiaries.”

The idea would face strong resistance from the government: inheritance tax currently lines Treasury coffers to the tune of £5.2bn a year.

Property tax reforms

Proportional property tax and commercial landowner levy tax

Council tax has long been a bête noire for tax experts: its disparities are laid bare by the fact the owner of a £15m Westminster mansion (residents only pay 0.06% council tax as proportion of property value) could pay less than a pensioner in a Hartlepool bungalow (where it’s 1.13%).

It’s time for the Government to scrap council tax altogether (along with stamp duty) argues Andrew Dixon, founder/chairman of the Fairer Share campaign.

Instead, people should pay an annual tax proportionate to the value of their property, charged at 0.48%. This ‘proportional property tax’ could result in an average saving of £435 a year, with 19m households better off. Dixon also proposes that owners of second, foreign-owned and empty homes should pay an additional surcharge, which could raise £4.5bn.

Elsewhere in Time for change, Sarah Olney MP, the Liberal Democrat spokesperson for business, energy & industrial strategy (BEIS) advocates abolishing business rates, replacing them with a ‘commercial landowner levy’. This tax would be paid by landlords and be calculated by the land value of commercial sites, which could help revive the high street and town centres.

A strategic approach

AAT calls for long-term stability

All good accountants realise the importance of keeping abreast of the latest tax legislation. But even the most on-the-ball financial adviser would have trouble deciphering the avalanche of changes to the tax system in recent years: whether it’s the raft of new taxes (Apprenticeship Levy, Soft Drinks Levy etc), planned changes to national insurance and corporation tax, plus (of course) Making Tax Digital.

It’s causing much confusion in the accounting industry, says AAT CEO Sarah Beale in Time for change.

She references AAT’s ongoing recommendation that the Government should publish a robust tax strategy; something Scotland has already done with its Framework for Tax, which Kate Forbes MSP also discusses, Scotland’s cabinet secretary for finance and economy, in Time for change.

Introducing changes in a strategic way over a longer period would allow Government to consult stakeholders and run pilot schemes.

AAT also argues for a period of three-five years of no tax changes, a hiatus Beale believes “would benefit businesses large and small as well as their accountants, and it would also greatly benefit an increasingly stretched HMRC.”

Social offsetting

Rewarding socially responsible companies with tax breaks

Social offsetting is an incentivising model which rewards tax breaks to businesses who behave responsibly, such as paying a real living wage to employees, offering flexible hours, making pledges to help tackle the climate crisis, and not engaging in tax avoidance by shifting profits overseas.

Tom Burgess, Director of Taxpayers Against Poverty sketches how social offsetting could work in Time for change, envisioning that “we could see more companies making a positive contribution to all of society, not just for the privileged few.”

A carbon wealth tax/green taxes

The fight against climate breakdown might not be won until we start taxing the super-rich

There’s an inextricable link between wealth and polluting behaviour: the richest 1% of the world’s population produce around 17% of global greenhouse gas emissions.

The super-rich should pay to fix the climate crisis through a carbon wealth tax, argues Tom Peters in Time for change, head of advocacy at the Tax Justice UK campaign group. Many of these billionaires have accumulated their fortunes through carbon-intensive means and spend it on carbon-intensive consumption, such as private jets.

The profits could be ploughed into the national transition to a green economy which Peters predicts “generating a virtuous circle of productive green investment.”

Tell us what you think

The Spring Statement is not the final word on tax this year. The Autumn Budget is another opportunity. AAT wants to hear what members think of the ideas advanced in Time for change, including our own call for a strategic approach. Please contribute to the debate now by completing our online questionnaire about the proposals.

Whad do you think about taxes?

AAT wants to know what members think about the ideas in its report: Time for change, towards a fairer, more efficient tax system. Click the link to join the debate.

Give feedback

AAT recommends webinar on UK sanctions related to Russia

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

AAT advises members to watch a new Government briefing on sanctions relating to Russia.

The webinar covers the following topics: 

  • sanctions legislation overview
  • new sanctions measures: financial, trade and transport
  • individual and entity designations
  • humanitarian issues

Speakers include representatives from the Foreign, Commonwealth and Development Office (FCDO), HM Treasury (HMT), Department for International Trade (DIT), Department for Transport (DfT), Business Enterprise Industry and Skills (BEIS) and other government departments. 

Briefing – UK sanctions in relation to Russia webinar

AAT encourages licensed members to watch this briefing. It will help provide an update for your firm and help you understand how to comply with recent changes.

How being awarded the AAT Bursary is helping me to follow my dreams

Posted by & filed under Bursary scheme.

When AAT Level 3 student Hayley Dunn became pregnant at the age of 18, she was unable to continue with the bookkeeping studies she had started after leaving school.

“I first started studying with AAT when I was 17, but after having my first child I became a stay-at-home mum for a long time,” said Dunn, who lives in Stoke Gifford near Bristol and is now a single mum to her four children, Lucas, 12, Ashton, 10, Lexie, 8, and Phoenix, 2.

“I did a bit of cleaning and catering work, and was also a nail technician for a while, but I always dreamed of getting back into accountancy, which was what I wanted to do from the age of 16.”

Starting out with AAT

Dunn started studying again with AAT in 2020 and applied for the AAT Bursary in early 2021 on the recommendation of her Level 2 tutor at South Gloucestershire and Stroud College, who thought she would be a good candidate for funding of this kind.

To Dunn’s amazement, her application was successful, which gave her the financial freedom to move straight on to the Level 3 course. “I explained my situation in my application, but I never thought I’d get the Bursary,” said Dunn, 31. “I just thought everyone would be applying for it. But it has been a great help as it covered all my Level 3 course fees, as well as a year’s AAT membership.

“If I’d not received the Bursary, I would really have struggled to cover those costs myself and would definitely have had to take out a loan to continue my studies.”

Plans to start a business

Dunn’s plan now is to go on to study Level 4, while also setting up her own bookkeeping business. “I have found it impossible to find a job that works around school holidays,” she said. “As my older children both have autism, I also have to be available to pick them up from school if necessary, so I really need the flexibility of working for myself.

“My long-term goal is to move into a management accounting role and move up the ladder that way, but for now becoming a self-employed bookkeeper is the best way to use my skills while continuing to be there for my children.”

She is very grateful to AAT for choosing her as one of its 2021 AAT Bursary recipients and would advise anyone facing financial difficulties to apply through the scheme.

“It’s definitely worth doing, so I would encourage anyone who is in a similar situation to apply,” Dunn added. “In fact, I’ve advised a friend on my course at college to apply for the Bursary this year.”

About the AAT Bursary scheme

Launched in 2020, the AAT Bursary scheme supports financially disadvantaged students who are keen to study for an AAT qualification – helping to ensure that dedicated individuals can succeed in the sector regardless of their personal circumstances.

The scheme is open to UK residents aged 16 or over, and includes the entire range of AAT qualifications for the entry level Access qualification all the way to the highest AAT qualification, the Professional Diploma in Accounting at level 4.

a range of AAT accounting, bookkeeping, and business qualifications – from the Access Award in Bookkeeping (Level 1) and the Foundation Diploma in Accounting and Business (Level 2) for 16 to 19-year-olds to the Professional Diploma in Accounting (Level 4).

For successful applicants, it covers all the costs involved in taking the relevant qualification, thereby offering a potentially life-changing chance for people who would otherwise struggle to pay these costs.

Adam Williamson, Head of Professional Standards at AAT, said: “The AAT Bursary provides a fantastic opportunity to change the lives of individuals who need financial support.

“AAT qualifications are globally recognised and give thousands of people the chance to start an exciting career in finance. We believe this scheme will add to our success stories.”

AAT Bursary scheme

You can read more about apply for the AAT Bursary and the eligibility requirements via the AAT website.

Further reading

Why an era of uncertainties could be prime time for AAT members

Posted by & filed under AAT news, Members.

AAT’s new CEO, Sarah Beale, sets out her agenda and her expectations for AAT and its members.

The last two years have been the worst of times, but they have also been the best of times to shine a light on what AAT – and its members – stand for.

Businesses have been shunted into a brave new online world and forced to learn how to pivot on a sixpence. Employers – and even the government – have come to realise that qualifications and skills are a winning combination they need. Even students have been hungry for change, as they seek out ways to start professional careers without going to university. 

All of this amounts to an opportunity – an invitation. And Sarah Beale, the energetic Cumbrian who is now chief executive of AAT, is determined to seize it. 

“There couldn’t be a better time to be an AAT-qualified accountant, or to be working toward that,” she says. The world now requires more innovative and flexible accountancy skills than ever before. AAT members are in the best possible place to make a difference.  

“Employers are seeing far more value in someone who can be practical and productive as well as demonstrate academic ability. The skills we have are practical and have very real, positive impact to today’s challenges – that’s incredibly exciting.” 

AAT has been shortlisted for the Tolley’s Taxation Awards 2022

AAT has been shortlisted for its “Accountable” campaign to raise standards across the accountancy profession by dealing with the problem of unregulated accountants and tax advisers.

Vote here

AAT-qualified CEO 

She says “we” purposely because Sarah Beale studied AAT and has had a similar journey to many in its membership. 

She chose to be an AAT trainee over going to university and regards it as the foundation of everything she’s achieved since. Just like many members, she has side-stepped to different departments in organisations, and even into different sectors, to broaden her experience, ultimately securing the role of chief executive of the Construction Industry Training Board. 

Her journey has given her “the kind of passion that comes from genuinely believing in something”. It’s also given her an unshakeable belief in the combination of skills and knowledge that AAT is centred around. 

“I’ve worked in practice, charity, third sector environments and highly commercial environments. The skills our members bring to each of those types of business are highly sought after. I know – because I’ve been a boss searching for skilled people that can add value.” 

There are several ways in which Beale wants AAT to become more significant to members, from building industry-leading CPD, that ensures members stay at the top of their game, to successfully lobbying for recognition of their skills and contribution.  

She explains: “We’re acutely aware that we want to add value to the membership proposition. Part of that process will involve being open to new ideas and having a more active dialogue with members, because they are the best people to tell us what will make a difference to them.” 

As the agenda is transformed into a plan, she will want the organisation to go out to achieve its ambitions with fresh energy and vigour: “We will work faster, bigger and bolder,” she promises. 

Listening hard 

Beale is under no illusions that listening to members will be crucial to success.  

“We need to be open to new ideas and speaking with members as much as possible, because they are the best people to tell us what will make a difference to them,” she explains. 

“The more we can gauge from them, the better,” she adds.  

“We want to work together to understand what kind of themes they want our support on; what areas they would like us to develop for them?” 

“As we build that picture, we can give members and students access to the things that will really give them the edge, as and when they need it – whether that’s through portals of information, help desks, alerts to emerging trends and topics, and support for digital skills.” 

More influence 

In addition to equipping members and students with everything they need to drive their careers, Beale is keen to strengthen the influence AAT has in the wider world – whether that is through “people’s lives, the accountancy profession or the economy as a whole”. 

“What I find really attractive about AAT is that all the parts are already there,” she enthuses. “It’s practical. It’s something you can apply in the real world, and use to add value – at multiple levels. AAT delivers products and services that can have an impact on an individual, their employer, the accountancy space and the economy at large, because we are such a significant player in a significant sector.” 

“There are many ways we can help the profession generally,” she adds. “That might be by creating a really good pipeline of talent – attracting younger people and career changers into our sector and making sure they know the career opportunities that are going to be available to them, how they seize those opportunities, and the doors that could be open to them.” 

The bigger picture 

Beale also has ambitions for AAT to have a louder voice on government issues – becoming a major player in shaping government policy around accountancy, tax, further education and other areas of interest to members. 

She points to AAT’s recent Accountable campaign, which compellingly made the case that unregulated accountants (which account for a third of the sector) should be members of professional bodies, as an example of the role AAT can play. 

The campaign – supported through contributions from members via AT magazine – helped convince the government not to impose compulsory Professional Indemnity Insurance on unregulated advisers, a move that would likely have pushed up premiums for everyone, without raising standards.  

“We wanted to make a distinction between people who are unqualified, uninsured, not undertaking CPD and not offering the professional service our members do,” says Beale. “We needed to make sure that message was loud and proud.” 

“That’s how we can be a partner and exert influence on government, making sure the educational policy, professional policy, and funding align to what our profession needs.” 

AAT has been shortlisted for the Tolley’s Taxation Awards 2022

AAT has been shortlisted for its “Accountable” campaign to raise standards across the accountancy profession by dealing with the problem of unregulated accountants and tax advisers.

Vote here

AAT in demand 

In an increasingly borderless and globalised world, Beale believes this evolution of AAT will also put it in good stead to enhance its appeal internationally – becoming a more prominent entry point to the accountancy profession outside of the UK as well as here. 

For now, however, her focus is on prioritising existing members. 

“We have to have a look at our international offer, for sure, but for now, it is absolutely about a return to our potential and existing members, influencing government, and trying to create that diverse talent pipeline that we need. 

“It feels like the government is recognising what we offer: the level and the quality. It feels like businesses now need what we offer more than ever. And it feels like people want the quality service and the market that our regulation provides.” 

“I can see opportunities. It looks like the stars are aligning for both AAT and members.” 

Accounting Technicians’ Strong identity 

AAT-qualified herself, Sarah Beale is clear that AAT-qualified professionals benefit from a “stronger, more defined identity”. 

“It is a really credible membership to hold,” she says. “AAT members have a set of truly transferable skills and they are skills that don’t date. That stands members in great stead with organisations throughout the economy.” 

That’s something she very much wants to amplify during her tenure as AAT’s chief executive. 

“We’ve got a role as a membership body of letting society know the difference our members make,” she says, adding that greater recognition of the AAT identity will lead to “a bigger portion of the pie” in terms of focus, funding, and coverage. 

In her own words: Sarah Beale 

“I am a really hard worker and when I decide to do something, I give it 100%. To be at my best, I have to believe in what I’m doing. [My role] must have a purpose and it has to mirror my own values so my effort feels effortless and what I’m doing feels worthwhile. 

“What I’m good at is creating a vision, taking people with me on that journey and creating a plan to get there.  

“I also want to let people contribute their skillset to that, to make it really work and achieve true inclusivity. 

“AAT is a business with a purpose, and not just for profit. That’s what drives me. AAT lives by what it says, and it values its people and its members. That’s really evident, even from the outside.” 

HMRC performance shows need for overhaul

Posted by & filed under Members.

Accountants say HMRC’s problems run deeper than devising a plan to clear the backlog of post from the pandemic.

HMRC Corporation Tax and VAT helplines will be closed every Friday for a month until 25 March in order to help staff deal with a work backlog. In a statement, HMRC said their test pilot in December where they closed these telephone lines across three Fridays enabled staff to clear more than 4,000 additional pieces of work and saw increased productivity. Stakeholders, they said, were ‘broadly supportive’ of the approach.

HMRC says the March closures will still allow them to maintain customer service levels throughout the rest of the week and expect to see ‘significant improvements’ in service levels.

A February update by the department revealed there had been ‘solid progress’ during the previous year in which HMRC had prioritised ‘essential services’, Covid-19 support schemes and the UK’s transition from the EU.

According to the update:

  • HMRC stabilised its phone service, tax credits and Child Benefits services.
  • Maintained customs services ‘well within’ targets.
  • Supported running of Covid-19 support schemes.
  • Re-allocate resources back into core tax activities following winding down of Covid-19 schemes.

But what do accountants think about HMRC performance? We spoke to a cross-section to find out. 

HMRC need to review and update their systems and increase headcount to meet demand

Penny Lowe, MAAT, founder and Director, Wellington Consulting

I was not aware of the Friday helpline closures until getting through to the HMRC agent phoneline for another issue last week and I was told the helpline would be closed for the next few Fridays, so I found out by accident.

 
Although most of the staff I speak to on the agent’s line are very good, helpful and cheerful, HMRC response times are atrocious. I recently received a letter dated 21 February apologising for the delay to a letter sent in April last year.

I’ve been informed by staff on the phonelines that while some issues used to take four days to resolve, it’s now a 9-10 month turnaround. So closing helplines for one day a week may might be one way of dealing with backlogs, but the problem is a lot bigger, especially if they’re working on a 10 month delay.


Staff themselves have done a sterling job during the pandemic in very difficult circumstances, but it’s the HMRC systems which need to change. There needs to be a system review and there need to be enough staff in order to provide the service they’re expected to provide.

Verdict: HMRC need to urgently review and update systems and increase headcount to meet demand.

HMRC needs to recognise that recovery is not a one-size-fits-all approach

Andrew Parkes, national technical director, Andersen

When it comes to public services, the UK Government has a habit of promising champagne, but will only pay for someone’s homebrew. This is shown in the service HMRC is able to give the general public. If you are a large business, you get champagne, but if you are Joe Public, then you are left with a cheap wine hangover.

HMRC delivered much needed help to many businesses as quickly as it could, and this must be celebrated. They have shown remarkable common sense when Covid-19 caused business interruptions and provided support payments to businesses much faster then expected. However, the speed did result in some people falling through cracks and the help they received could have been better.

Many good businesses have failed and some people have lost everything, whilst others are teetering on the edge. Businesses need understanding from HMRC that the recovery from Covid is not one size fits all and some good viable businesses are still really suffering, even if others have gone from strength to strength.

Verdict: HMRC needs to acknowledge that recovery is not a one-size-fits-all approach.

Having a dedicated HMRC minister would help drive change

Tom Walker, Partner at Wellers

HMRC’s service is unreliable. I’ve experienced HMRC taking four weeks to process certain claims but then also seen first-hand delays of four months. It’s been inconsistent at best and terrible at worst. 

Yet HMRC inspectors working on enquiries with us have been pragmatic and understanding of the disruption caused by Covid. However, attempting to call is very frustrating with significant delays in getting through to HMRC helplines and sometimes not being able to get through at all.

Currently, an important service – online ERS notifications – appears to be down (as confirmed over the phone with HMRC) and there has been little-to-no advice on this from HMRC to agents. This is terribly frustrating for us and for clients.

Unfortunately, HMRC isn’t accountable to anyone specific in Parliament. The department is looped into the Treasury, which is already a huge structure. We have a Secretary of State for technology, for culture, and for transport to name a few, but we don’t have one for HMRC. It is not the Chancellor because the Treasury is effectively a different department.

Verdict: Having a dedicated Minister would help drive change, deliver a better service, and generally make the department more efficient.

My Modern Apprenticeship with NatureScot has taken my career to a new level

Posted by & filed under Scottish Apprenticeships.

Modern Apprenticeships are providing a fantastic opportunity for Scottish career changers and new entrants to the workplace.

One beneficiary of the Modern Apprenticeship scheme at NatureScot is Liz Colmer. Liz is working towards her AAT Foundation Diploma (Level 5 Modern Apprenticeship) having switched to the Finance, Planning and Performance division from another department. Previously she worked in administrative roles within NatureScot.

“I would absolutely recommend the Modern Apprenticeship scheme,” she says. “It’s great to have this opportunity to develop my skills and I’ve enjoyed the theoretical learning and its practical application on the job. In addition, I’m working towards a respected professional qualification.”

NatureScot is Scotland’s nature agency with 30 years’ experience advising the Scottish Government. Formally Scottish Natural Heritage, the organisation rebranded in August 2020, with a mission to improve the natural environment in Scotland and inspire everyone to care more about it.

Become a Modern Apprentice

Modern Apprenticeships in Scotland are for school leavers, career-changers and upskillers, alike. How could they help you?

Finance Apprenticeships

Liz is one of 15 new apprenticeships across the whole of the organisation. So successful has the scheme been, that additional apprenticeships may be planned for later this year.

Growing and learning new skills on the job

Liz had been with NatureScot since 2000 and had worked in a variety of roles. In 2018 she went part-time and completed an HNC in Business in her local college.

“I’m 42 and it had been a long time since I was last learning,” she says. “It was scary but satisfying, and I enjoyed it a lot. Once I had finished my business course, I wanted to go back to full-time work. The Modern Apprenticeship role appeal to me because it involves learning new skills as well as consolidating my previous experience at NatureScot.”

Her new role is in the finance team and she has spent time shadowing the Planning and performance team, the Budgets team and is now working with the Transaction team getting hands-on experience in sales invoicing and processes.

“We’re very busy at the moment because it’s year-end,” she explains. “The most interesting part of the job is seeing the process from the other side. Previously I was a customer to the finance department, raising POs and dealing with invoices. It’s really interesting to see how it works from the finance side.”

Liz started the programme in September last year is studying for her AAT Foundation Diploma. Afterwards, she intends to continue to the AAT Advanced diploma (Modern Apprenticeship level 6).

“It is useful to have the AAT learning and the practical application of skills running side by side,” she says. “I get weekly support from my coach and it is a very supportive place to be.”

Scotland’s natural custodians

NatureScot is working towards Scotland’s ‘green recovery’ from Covid-19, and aims to be recognised as a world leader in looking after and enhancing nature by 2030.

“We work to enhance our natural environment and inspire the people of Scotland to care more about it,” says Katrina Marshall, People and Organisational Development Senior Adviser, NatureScot.

She says the apprenticeship scheme at NatureScot has been successful, with the new recruits bringing drive and commitment to their roles.

“It’s a win-win situation. Our apprentices come to work with great enthusiasm, they work hard and bring in fresh ideas. In return, they learn on the job and get coaching and mentoring as part of a specially-designed learning structure. It’s gone so well that we are looking to recruit more apprentices in the future.”

“As an employer, we benefit from fresh input. For the apprentices, it is a great way to build up skills and is an attractive alternative to going to university or taking time out to go to college, especially for career changers,” she says.

“Our apprentices acquire professional skills that they can use for the rest of their lives. In return, we get young people with different ideas and experience and huge career potential. The apprenticeship placement is for two years, and we anticipate that they will be qualified after 18 months so that also benefits us as an employer.”

While Modern Apprenticeships are spoken of as a way to support youth employment in Scotland following the pandemic, Liz Colmer says they are opening new horizons to people who want to change careers.

“I would absolutely recommend the Modern Apprenticeship. It’s great to have this opportunity at my age although it’s billed as a youth employment programme. It does also give a great opportunity for people like me, who want to expand and develop and move their career in a new direction. It opens up a variety of new roles for me and I can bring experience from my previous projects.”

What are the benefits of apprenticeships?

Apprenticeships in Scotland

Whether you’re hiring someone new or upskilling an existing employee, Modern Apprenticeships could be great for your business. Learn more.

Find out more

  • Apprenticeships are easy to set up and for the participants are as good – or better – than a degree. They provide practical learning without the cost of university fees or debt.
  • For the apprentice, the placement can lead not only to a full-time job, but great long-term prospects. It can be great for career changers and a way of nurturing and developing talent for the future.
  • For the employer, apprenticeships can help solve skills shortages and create a talent pipeline. They are affordable, easy to run and not time-consuming. They are great for upskilling existing employees and are a key tool for creating diversity and fresh talent without an organisation.

What is remote invigilation really like?

Posted by & filed under Students.

Remote invigilation (RI) enables students to sit their assessments from home. As it’s quite a new thing for students and training providers, some people are understandably a bit nervous about the new process.

We spoke to a few people who have experienced remote invigilation who explained why there’s no need to be worried and how it can be an easier and more convenient option for many. 

Emma McArthur – training provider at McArthur Online

What made you offer remote invigilation assessments? 

Many students wanted them due to Covid or because they lived 20+ miles away from an assessment centre.

How did you find the RI assessment process? 

It is very easy to book students on, so much so that I don’t add an admin fee. 

What advice would you give to someone considering RI? 

All training providers should offer it – there’s no reason not to. I email students the AAT user guide and link to the PSI software to ensure their computer is compatible. Students will also need to have a strong WIFI connection. 

What is the best thing about offering RI? 

It’s great to see students complete their course exams so quickly, not having to wait for availability at an exam venue. They love being able to book the exam so close to sitting it (two days before), so once they know they are ready, they can go for it. Students say it’s a lot less stressful sitting the exam at their home or workplace. 

Has the option of RI helped your students to progress? 

100%! 85% of students have chosen to sit another exam with RI. 

For those students who are worried about sitting their first remote invigilated exam, what advice or guidance do you have to ease their worries? 

If there are any IT problems (which is very unlikely), your exam will be voided, and the AAT will credit the fee to your training provider. You can set it at the weekends and start the exam anytime on the date it is booked for. 

Karen Feltham – student 

What appealed to you about sitting an RI assessment?

Mainly, it was the convenience of sitting an assessment from home at a time to suit me. I live pretty far from the assessment centre and have to use public transport to get there, so there is always the worry of getting to the centre on time. I also arrive super early just to make sure I’m not late, so I then need to find somewhere to go before going into the assessment centre. Exam nerves can get the better of me, so this long wait can exacerbate the anxiety. For me, sitting an RI assessment means that I can be comfortable in my own home, I have no worries about travel or finding somewhere to wait, and I don’t need to take the day off work. Also, taking an assessment in a centre can be quite busy and distracting, with people frantically typing and getting up to leave once they finish their exam. 

How did you find the RI assessment process?

Admittedly, I did think that the process would be really complicated, but actually, it’s very easy. Once you have downloaded the PSI browser and the Surpass Viewer, it’s really simple, and you have step by step instructions taking you through the security pages and onto the assessment. If I can do it, anyone can! 

What advice would you give to someone considering RI?

I would say give it a go! You don’t need any fancy kit, and most of us already have webcams due to the pandemic and the rapid increase in working from home. It’s no different to sitting the practice assessments in terms of the set up and layout. You don’t need to clear out rooms in your home or office; you just need to make sure all your books and study notes are not accessible. Don’t be put off by the lack of scrap paper and physical calculator as these are all still available just on the screen – it’s just like writing an email! And, of course, these notes are not considered part of your answers.

Would you take another exam by RI?

Absolutely! It’s honestly so easy to do (well, not the actual assessment, of course!). It’s amazing that there are three levels of AAT available on RI. I would take all my exams on RI if possible. 

What is the best thing about taking an assessment via RI?

There are so many things that I love about RI assessments it’s hard to pick the best thing, but if I had to choose one, it would be the convenience of the whole process. It’s so much nicer to sit an assessment at a time to suit me within a 24-hour time frame. There’s no need for me to take time off work, organise childcare or worry about travelling to get there and back.  

Do you feel RI has helped you progress in your studies?

Yes, if it hadn’t been for RI, I would have been very far behind with my studies, especially with the reduced availability of assessments and spaces in the centres, the lockdowns, the reduced services on public transport. I would have felt way off schedule. 

For those students who are worried about sitting their first remote invigilated exam, what advice or guidance do you have to ease their worries?

My advice would be to download the instructions and practice with the PSI viewer and a practice assessment – these are all available on the learning portal. Also, find the time during the day that you work best. Everyone works better at different times, so it’s a great idea to find out what time of day works for you.

Lisa Buonocore – training provider at First Intuition 

What made you offer RI assessments?

As a training provider, we want to help students in any way, so we felt that this was a great opportunity. We offer RI to our students and external students. We understand that there can be anxieties with going into a centre and think this is a fantastic idea for the students.

How did you find the RI assessment process?

My team responsible for setting up the exams had never done it before and were not overwhelmed with what was involved. It’s simple to do with just a few clicks of a button.

What advice would you give to someone considering RI?

My advice to other training providers would be – just try it. It honestly isn’t difficult once you have your process in place, which we did in a very short time. Once you have that part set up, it’s a very slick process that ultimately helps your students. To all the students who haven’t sat an RI exam, I would also say – just try it. We have had many students who were very apprehensive at first, then have gone on to sit many other RI exams with ease. The feedback we get is positive. There are so many advantages, from not travelling to reducing exam nerves by being in a familiar environment and many more.

What is the best thing about offering RI?

It’s about letting the students have the opportunity to sit an exam anywhere they like. My department is the Distance Learning team, where all of our courses are virtual/online, so it just makes sense to be able to offer RI to our students too.

How has the option of RI helped your students to progress?

It has a significant impact on progress as our RI students don’t have to wait until their nearest exam centre has an exam running or wait for a space. They can sit any day, any time. So, in theory, they are sitting exams a lot quicker than usual, them moving onto the next unit.

For those students who are worried about sitting their first remote invigilated exam, what advice or guidance do you have to ease their worries?

I would say, don’t worry. As long as you read the AAT’s manual thoroughly on what is needed (we send it out with any enquiry to the student), then you will be absolutely fine. We have had many students sit exams this way, and once you’ve done it the first time, your nerves will ease.

Lee Jones – training provider at Premier Training 

What made you offer RI assessments?

We’ve always focused on providing flexibility across our range of distance learning courses, allowing students to study from home when it suits them. As a result, we were delighted to be part of the AAT’s RI assessment process from the first pilot of the Level 1 Access to Bookkeeping course. 

How did you find the RI assessment process?

As a training provider, we’ve found the process simple and easy to manage from the outset. This has been so beneficial in allowing us to communicate the options to AAT students and helping to ensure that they can book remote assessments at the ideal time for them. Our students – and students from other training providers – have appreciated that clarity and the ability to book their subsequent assessments in a matter of minutes using our online booking facility.

What advice would you give to someone considering RI? 

 We’d advise students to look at the guidance around RI assessments on the Premier Training and AAT websites – those are great starting points. All the information on which assessments are available and the costs are on our Premier Training platform, with a link to the AAT’s RI user guide, which outlines the technical specifications required. If students have further questions, they can contact Premier Training or the AAT. We can book and schedule RI assessments for all AAT students, regardless of their training provider.

What is the best thing about offering RI?

It’s the flexibility. Students can sit assessments at the perfect time of day for them – including at weekends or in the evening – and can save time and money by not travelling to an AAT Assessment Centre. Our student feedback tells us that they often don’t need to take time off work or reschedule childcare, which are huge benefits for many distance learners.

How has the option of RI helped your students to progress?

We have seen a large number of students complete their accounting and bookkeeping courses rapidly thanks, in part, to the introduction of RI assessments. They are no longer restricted by the availability of assessment slots at their local Assessment Centre.

For those students who are worried about sitting their first remote invigilated exam, what advice or guidance do you have to ease their worries?

Don’t worry! The AAT RI assessments have been created specifically for students to ensure they have the option of sitting their exams from the comfort of their own homes. We will be happy to answer any questions you may have and help decide if RI assessments are the right option for you.

Further reading and watching