NatureScot finds Modern Apprenticeships can change the landscape

Posted by & filed under Scottish Apprenticeships.

Apprenticeships are helping Scottish employer NatureScot to attract young people and create a blend of operational and technical skills.

NatureScot is Scotland’s nature agency with 30 years’ experience advising the Scottish Government. Formally Scottish Natural Heritage, the organisation rebranded to NatureScot in August 2020.

They are at the forefront of a new scheme to encourage the use of Modern Apprenticeships as a way of fulfilling the Scottish government’s target to have 5% of the workforce made up of young people.

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

It is also in response to the difficulties that young people experienced in trying to find jobs during the Covid-19 pandemic.

NatureScot has recruited a new Finance Apprentice as part of its drive to sign up 15 new apprentices across the whole of the organisation. So successful has the scheme been that additional apprenticeships may be planned for later this year.

Scotland’s natural custodians

The new apprentice started the programme in September last year and has joined an organisation that has nature at its very heart.

“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.

NatureScot is a public sector body and was formerly known as Scottish Natural Heritage (SNH). Its mission is to improve the natural environment in Scotland and inspire everyone to care more about it.

“We provide advice to MSPs, the public and local authorities. There are a lot of different skills needed in the organisation because we cover a variety of issues around policy, habitat, wildlife management and green initiatives, while also providing corporate services and finance.”

NatureScot covers the whole of Scotland but there are local activity teams that specialise in particular functions. Finance is one of them.

“We need people with operational and specialist skills and our Modern Apprenticeship scheme is designed to bring young people into NatureScot. It is part of our way to fulfil the objective for employers in Scotland to have 5% of their employees under 25,” she says.

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.

Win-win for apprentices and employers

The Apprenticeship scheme at NatureScot has been a runaway success, with the new recruits bringing drive and commitment to their roles.

“It’s a win-win situation,” says Katrina Marshall. “The young people 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.”

The young people we have recruited as part of our Modern Apprenticeship scheme bring in energy and a fresh, diverse perspective. Their enthusiasm and drive have really benefited the organisation

Katrina Marshall, People and Organisational Development Senior Adviser, NatureScot

While Covid-19 did present challenges with virtual recruitment and onboarding, the team managed to overcome these hurdles.

“As a result of Covid-19, young people find it difficult to get jobs and placements.  Accountancy is one of 15 planned Modern Apprenticeships in NatureScot.

“As an employer we benefit from the input of young people, and their place in the pipeline to fill new jobs. In return, they are able to put their learning into practice on the job.  It’s 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.

“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.”

The finance apprentice is working in the transactions team in the finance, planning and performance department based in Inverness. The apprentice will be supported by a line manager, mentor, colleagues and peer to peer support.

What are the benefits of apprenticeships?

Apprenticeships are easy to set up and for the young people on the scheme they can be 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.

Further information

Employing accounting apprentices in Scotland

The impact of fresh sanctions as Russia invades Ukraine

Posted by & filed under News.

The far-reaching sanctions against Russia are a reminder that sanctions compliance is a critical issue for accountants and others in the regulated sector. 

After its aggression against Ukraine, the US, UK and EU launched new rounds of economic sanctions against Russia. These sanctions add to the ones already in place, following the invasion of Crimea in 2014. New economic sanctions are likely to impact the work of accountants as well as many other regulated businesses.

In broad terms, UK persons – incorporated entities, nationals and those in the UK – are prohibited from making funds or economic resources available to Russian persons and entities located anywhere across the world. Nor can they accept such funds or resources from them. These prohibitions also extend to dealings with businesses, that are directly or indirectly owned or controlled by these persons.

UK prime minister Boris Johnson described the new sanctions as “the first tranche” and said that further sanctions could be deployed in due course.

Sanctions necessitate fresh due diligence and screening by accountants

In practical terms, members (if you have not already done so) should be immediately and thoroughly assessing any exposure they have to Russia or Russian persons and entities. Understanding potential exposure points will help members facilitate a rapid response to these new sanctions. Members must consider all partners or customers and their ownership structures, to identify any direct or indirect investment from Russian entities or individuals.

If such funds are held, members must freeze such funds or resources and any others that are owned or controlled by persons listed in the Financial Sanctions Notice and must refrain from dealing with these assets or making them available (directly or indirectly) to persons listed unless licensed by OFSI to do so.

The full list of those subject to financial sanctions by the UK can be found at:

Members are also encouraged to review the CCAB guidance, on Politically exposed persons, (PEP) Financial sanctions and other prohibited relationships.

Members must report any findings to OFSI and any information that would facilitate compliance with the sanctions and provide any information that OFSI may request. Failure to comply with the regulations or provisions is a potential criminal offence. 

Given this is an evolving and complex situation our members are strongly recommended to obtain expert legal advice if required.

5 ways to become more time efficient

Posted by & filed under Students.

As a student there are a lot of pressures on you to build your career and enhance your practical skills while studying for your qualifications.

To make the most of your training or apprenticeship, and to avoid burnout, it therefore pays to develop your time management skills and your personal and professional efficiency.

There are a number of ways to increase efficiency at work using time-management skills, charts and projections, and digital software. We look at five tips from experts on ways to become more efficient, the best way to employ these methods and how you can use them most effectively in your own study, career and business.

1.Get to grips with your diary

“It can help to start looking at time as currency. Every minute you can claw back has a value,” says productivity expert Barnaby Lashbrooke, CEO of virtual assistant company Time Etc and author of The Hard Work Myth.

“Keep it simple. You don’t need to invest in expensive software to increase efficiency, you just need to understand the psychology behind good time management.”

What’s needed, he explains, is a different perspective on the way you spend each moment. “Over the course of a year, those small time savings become days, not minutes,” he says. “If you view time like this, you start to have a greater respect for it.”

You can start by looking at your daily tasks more holistically and use simple calendar tools to manage your diary.

“One of the most effective productivity tools out there is free: it’s your computer’s calendar,” he says. “Instead of using it only to schedule meetings and appointments, take your to-do list and plot every item onto your calendar for the week ahead, allocating one task per time slot. You’ll quickly start to realise how little time you actually have, and you’ll be forced to limit which tasks make it.”

Another tip of his is to designate one block of time in your calendar for doing tasks that would otherwise distract you throughout the day. For example, you might ringfence one hour in the late afternoon for answering emails and returning important calls. 

“If you find there’s simply too much that needs to get done, prioritise the tasks that are most crucial to achieving your work goals.” You could also try, where possible, to automate low-value to free you up to focus on what’s really important.

2.Prioritise your goals

Carmel Moore, Director of One Moment Company, is a former EY Tax Partner, FTSE 100/Fortune 500 Tax Director, keynote speaker and Organisational Development Consultant. She coaches leaders in time management and hacks to increase efficiency at work.

Our calendar is the engine that drives us Monday to Friday, she explains in her blog, The Calendar Coach.

“We jam our calendar full of commitments and tend passively to accept what others shove in there,” she explains. “It is far too easy to default to busy; it takes courage to design your day to achieve your ambition.”

Too often, we fail to prioritise our long term goals and instead get caught up in daily low-value tasks.

“You may tell me that you would like a promotion or a career development opportunity,” she says. “The seeds of that need to be in your calendar today, not next week or next month.”

Take a good look at your calendar and ask yourself whether it is actually serving you effectively, or whether you need to change the way you schedule tasks in order to achieve your goals.

3.Break your objectives down in manageable steps

Michelle Don Durbin, SVP of Marketing at productivity and organisation app Evernote, says managing your time effectively can be a tricky balancing act. Instead, focus on what matters, plan with priorities in mind, don’t let small stuff sap your attention.

“In a busy work environment, it is common to have to juggle multiple projects at once,” she explains. “Throw in hybrid working where teams are often split between working at home and in the office and it can feel impossible to manage heavy workloads.”

One solution is to build a workflow chart to manage your projects by clearly outlining tasks, assigning jobs to people and making sure that things aren’t missed or delayed. A workflow is a visual tool that shows an illustrated series of steps that have to be completed in sequence in a diagram or checklist. This helps to break projects down into smaller, more manageable chunks of work.

4.Use smart digital tools

John Miller, chartered accountant and chief operating officer at Addition, a London-based financial services firm offering outsourced CFO services, has a novel way of scheduling meetings to avoid wasting time.

“I am portfolio CFO to 40 clients and there is a lot of pressure involved in the job. I have to be very disciplined with my time,” he says. “I use my diary to block out all of my professional and personal commitments, and that means going to the gym, seeing friends, time to work on long term projects, as well as client meetings. We work late evenings and weekends sometimes, and it would be easy to burn out.”

He uses Calendly.com, a free online scheduling tool that enables clients to book time with him when he is free without going to and fro trying to find a mutually agreeable meeting time. This saves lots of wasted emails, because it gives the person you are meeting access to your calendar so they can book in a slot with you when you are free.

“I ask clients to book in a 15-minute meeting to identity what they need help with, so that we can clarify the issue, rather than blocking out an hour’s meeting which might not be necessary,” he says.

5. Take time out to recharge

Nicholas Janni, a leadership consultant and author whose book, Leader as Healer, will be published next month, recommends taking time out to meditate as a way of improving your efficiency in the working day.

“Meditation increases your efficiency because it measurably changes your brainwave frequency from the beta wave range to the alpha wave range,” he says.

“Why do athletes do everything possible to ‘go into the zone’, the alpha wave range? Because they are able to perceive and act much more quickly and accurately. It’s the same with meditation. Someone who uses meditation and cultivates the benefits of it throughout the entire working day can be in a much higher performance state, able to use their time much more efficiently.”

From a so-called ‘normal’ point of view, this would not be effective time management. Indeed, he acknowledges that some would call it a waste of time.

“But by giving 20 minutes to meditate, I guarantee you can gain so much more time back through increased efficiency,” he says.

“One of my clients, a CEO of a major US biotech firm, was aghast when I suggested meditation as a way of getting far more things done. ‘I’m a CEO, I have a daughter, I’m busy – I don’t have time to meditate.’ All natural concerns. But after a certain time she did start meditating. And she told me: ‘You were right.’”

Further reading:

HMRC switches staff from phones to post

Posted by & filed under Members.

HMRC is reallocating staff who work on its VAT and Corporation Tax phone lines so they can focus on clearing a backlog of post.

The decision was revealed in a letter from HMRC chief executive Jim Harra to accountancy bodies and follows a successful pilot in December.

“Over the course of the pandemic, HMRC made choices about the work we prioritised… We prioritised the COVID support schemes, the UK’s smooth transition from the European Union and the essential services that keep the tax system running,’ said Harra.

During December, HMRC ran a ‘test and learn’ exercise on the Corporation Tax (CT) and VAT helplines (except bereavement) to assess the impact of telephony closure across three Fridays and used the time to focus on its post backlogs in these lines.  

HMRC was able to clear more than 4,000 additional pieces of post each day during the test and learn as staff were allowed to focus solely on postal queries.

“We saw an increased productivity rate among colleagues, above our initial planning assumptions, who were able to focus on the task without stopping midway through to take a phone call,” said Harra.  

There were 2,500 extra calls over the following three Mondays, which Harra said allowed HMRC “to offer an acceptable level of service to these customers despite the additional demand.” 

HMRC has therefore decided to close the CT and VAT telephony lines on Fridays in February and March 2022: 

  • CT – 25 February to 25 March 2022 
  • VAT (excluding bereavement) – 25 February to 25 March 2022 (excluding 4 March) 

“We’ve selected these dates to avoid key events on these lines, including the VAT peak. This will allow us to maintain our customer service levels throughout the rest of the week,” said Harra.

How to prepare for hybrid working

Posted by & filed under Hybrid work.

About to enter the workplace for the first time? Whether you’re an apprentice or junior colleague starting at a new firm, here’s what you can expect if your company has gone “hybrid”.

Being the office newbie has never been easy. From the second you 
step gingerly through the door and pick up your lanyard from reception, the first few weeks of any job are a combination of feeling both nervous and ineffectual – all those boring hours waiting for IT to give you a password, or wondering if you’re even in the right meeting room. 

Adjusting to hybrid working

But what must this feel like if you’re starting this new job with a computer set up in your front room with the only office banter coming from your dog? 

Or entering the office for the first time, having to befriend colleagues you’ve only seen in pixelated form before? With hybrid workplaces – where employees split their time between home and the office – becoming standard for many businesses, how do you experience the buzz of working on exciting projects, bond with bosses, immerse yourself in company “culture” or simply engage in inane chitchat, when the workplace is mostly empty? 

It’s a predicament facing thousands of AAT students who have been hired remotely during the pandemic, as well as many of us returning to offices that look radically different to the ones we left in March 2020. 

Mentoring is still key

Starting their career in a hybrid set-up is clearly something that worries younger workers. A recent report by communications firm Poly found that over half (52%) of the 16- to 24-year-old employees surveyed were concerned that remote working would negatively impact upon their development and career progression, with a similar number (53%) fearing it has made them less confident in their communication skills (if you feel like you’ve forgotten how to speak to people, turn to page 13 for some expert tips). 

The early stages of a career are often defined by on-the-job training, face-to-face mentoring and peer-to-peer networking. Hybrid working makes this more difficult, says Toby Stanbrook, chief operating officer at accountancy firm Mazars, which has recently taken on a cohort of 400 new hires. 

Prior to the pandemic, most training at Big Four giant PwC was conducted in a classroom-style environment. The remote learning of hybrid working now means that students record training sessions, re-listening and revisiting them as they would a podcast, says Vicki Broadhurst, PwC’s head of organisational effectiveness (the City firm is giving its 22,000 UK staff the opportunity to spend 40-60% of their week at home). 

Remote learning has also spawned other tech benefits. At PwC, meetings and training can be delivered using virtual reality headsets, which sees staff transported to meetings held in penthouse apartments or ski chalets. Meanwhile, PwC’s Virtual Park sees trainees create their own avatar and walk around virtual events without leaving their home.  

Scheduling work around you

No amount of flashy tech can compensate for the value that comes from learning alongside your fellow peers in the office. If a young staffer has a query about capital gains tax, they could usually shoot this question to their desk mates, who’d quickly shout out the answer. With remote working, this may involve firing off an email or jotting it down in Slack or Google Chat, before waiting a long time for somebody to respond. 

“Sometimes, you need to sit next to people to learn,” Toby says. “You might have a silly but useful question that a person sitting next to you can quickly provide an answer to.” 

Some young employees have developed inventive solutions to these problems. At Worcestershire County Council’s finance department, apprentices have worked individually from home, but with their webcams switched on, enabling them to natter away to each other as if they were sharing the same desk. 

Giving staff the freedom to work asynchronous hours is another staple of hybrid working. At many firms, staff can schedule their work time to whenever they want – allowing parents to do the school run or early-risers the chance to do tax returns at 5am because that’s when they’re most productive. 

Vicki says that PwC is “not a nine-to-five organisation any more”, with the company now offering an “Empowered Day”, which “allows people to decide the most effective working pattern for them”. Similar policies are in place at Deloitte (staff have the right to decide “when, where and how they work”) and KPMG where workers enjoy “four-day fortnights”. 

Professionalism is expected

It begs the question: if you’re an 18-year-old school-leaver who’s never worked in an office before, how can you learn about the importance of punctuality, when working asynchronously gives you carte blanche to sleep in, play some Red Dead Redemption 2 on the PlayStation and then log on at 4pm? There’s also been a rise in staff moonlighting for other firms while WFH (as the subreddit forum r/overemployed shows, it isn’t just MPs that have second jobs – some accountants employed by big firms do too). 

“We still expect people to be professional,” says Vicki, who says new recruits at PwC get to “attend engagements soon after joining, so they can learn how to work alongside more senior staff to get the professional etiquette they need”. 

The argument for new accountants being primarily office-based isn’t just about the merits of face-to-face learning. Spending less time in the workplace means they’re less visible to the senior managers who might promote them one day (various studies have shown the impact of “proximity bias”, i.e. those bosses who favour workers they see every day). 

Also, many young people live at home with their parents or share a house with friends, which could see them working from a laptop in their teenage bedroom (complete with cringe-worthy posters) or elbowing flatmates for space on the kitchen table. Obviously, when both the office and the bedroom are the same place, it’s not brilliant for mental health. 

Flexible working still preferred

At the same time, employers are redesigning offices for hybrid workforces that have a greater focus on wellbeing – with collaboration-friendly meeting rooms, greenery and Zoom pods replacing the grey, toilet-sized cubicles of yesteryear. PwC – which already has a medical facility at its London office, with on-site GP and dentist – recently refitted its Belfast office with a “wellbeing zone” offering meditation pods and exercise classes. Meanwhile, Mazars is developing more quiet study areas where students can knuckle down in peace, alongside café-style zones for teamwork. 

Even though their home working conditions are often cramped, it seems younger generations are still not 100% keen on spending five days a week in the office. One Bloomberg study found that nearly half (49%) of millennials and Gen Z surveyed would quit their jobs if flexible working wasn’t offered. 

When Mazars piloted hybrid working during 2021, it surveyed its staff on its progress. “We really thought we’d get a stronger message from younger groups saying: ‘We want to be in the office all the time’,” Toby says. “But we didn’t. Many of them didn’t want a five-day-a-week model for reasons such as the commute and mental health, but also the sustainability aspect of not driving or getting the train every day.” 

New working patterns emerging

Since hybrid has been offered, new working patterns have emerged. Working a 3:2 diet (three days in the office) is emerging as the norm with most employees opting to come in from Tuesday-Thursday (it appears nobody wants to trudge into the office on Mondays). Vicki notes that because staff visit the workplace less frequently, the office has taken on a “special” status. “Now, when people come into the office, there’s a real buzz – they’re meeting for coffee or going for lunch together more than they did before.” 

Hybrid working is still in its experimental phase, with companies figuring out what works and what doesn’t. There could be a financial stipend offered to younger employees who wish to escape cramped conditions and work full-time from the office. Because they’re on lower salaries, they’ll be spending more money on commuting (the average cost of a commute in London is £5,114, which is 18% of the average salary in the capital), work-wear and expensive Pret lunches. Companies may wish to follow the lead of PwC, which recently offered its UK workforce an extra £1,000 to spend on anything they wanted, such as commuting costs or setting up a home office. 

Key point

For any new joiners who want to spend part of the week working at home, but don’t want their career to stall, Toby’s advice is simple. 

“Get involved with things, say yes to any opportunities that arise, take advantage of social interactions and be part of your team,” he says. “That doesn’t mean being in the office five days a week, but finding a balance that works best for you in terms of work and your wellbeing.”   

Further reading:

Are you ready for the Plastic Packaging Tax?

Posted by & filed under Members, Tax.

The Plastics Packaging Tax is set to come into force from 1 April 2022. It applies to manufacturers and importers of plastic packaging, but could also affect retailers, freight transport providers and fresh food producers.

Under the new legislation, plastic packaging which contains less than 30% recyclable material will be subject to taxation of £200 per tonne. 

All businesses that have manufactured or imported more than ten tonnes of plastic packaging over the last twelve months will be required to register for the Plastic Packaging Tax.

HMRC will apply fixed or daily penalties for failure to comply with the new legislation. Guidance published in February included registration advice and tests to carry out to determine when and how to register for the plastic packaging tax.

Under the guidance:

  • Businesses are required to register for the tax and pay it, within 30 days of becoming liable.
  • The two tests businesses should carry out to determine tax liability include:
    • Look back over the previous twelve months to ascertain if the ten-tonne threshold has been reached.
    • Look forward to the next thirty days to ascertain the likelihood of manufacturing or importing more than ten tons of plastic packaging within that timeframe.

Plastic packaging that comes into direct contact with medicines (such as blister packs for tablets) or containers designed to be used with the goods throughout their lifetime (such as power tool boxes), are exempt from the tax.

This legislation is likely to create added administrative and cost burden on affected businesses. We spoke to accountants to find out what businesses need to know about the plastic packaging tax and how they should best prepare for it.

Identify PPT liability and create tax-compliant systems and processes

Grace King, indirect tax manager, RSM UK

In terms of the effectiveness of the new legislation in the short term, it’s possible that switching to plastic packaging with a higher recycled content may be more expensive than sticking with virgin plastics and paying PPT.

However, as HMRC begins to tighten the net on PPT in the future, more businesses are likely to fall into the scope of PPT, and the financial cost is likely to be higher, which may encourage a gradual move towards high recycled content in plastic packaging.

To prepare, businesses should take the following action.

  • Carry out an assessment of whether and to what extent they will be liable for PPT.
  • Review supply chains to consider whether efficiencies can be achieved.
  • Create systems to ensure compliance with the new record-keeping requirements.
  • Decide who will be responsible for PPT compliance.
  • Prepare staff training in relation to the new rules.

Next steps: Affected businesses will need a process to prepare the PPT returns. Those who purchase plastic packaging should add a PPT section to their supplier/customer on-boarding process to determine the due diligence needed on current suppliers around PPT legislation.

Verdict: Carry out assessments around PPT liability and put systems and processes in place to remain compliant. 

Businesses should conduct an audit of their imported or manufactured products to determine PPT liability

Gerry Myton, partner, HW Fisher

PPT is in effect, an environmental tax that aims to change behaviour and increase recycling.

PPT is payable on the date that the packaging is finished or imported. Once registered for PPT, a business must submit returns for calendar quarters and any tax must be paid within 30 days of the quarter end.

Businesses need to consider their packaging strategy as soon as possible. They will need to undertake a review of supply chains to assess business impact and review products manufactured or imported to determine PPT liability.

Next steps: Business may want to consider these questions:

  • Do your contracts allow for the cost to be passed on and how does the tax impact on margins?
  • Do you have the correct systems in place to capture the information to comply fully as of 1 April 2022?
  • In your business, which team will have responsibility for compliance?
  • What due diligence processes will be put in place to ensure that you avoid becoming jointly and severally liable for the non-compliance of others?

Verdict: Businesses must undertake a review of manufactured or imported plastic packaging to determine PPT liability.


Every affected business needs to maintain accurate records – even if they’re below PPT threshold

Andrew England, tax partner, Menzies LLP

PPT will lead to an increased administrative burden, particularly for food manufacturers. Those that consume over 10 tonnes of plastic per year will need to register for the tax even if they are not eventually liable to pay it. This includes importers of packaging that already contains goods, for example, plastic drinks bottles. Companies will also be required to provide declarations within customer invoices, confirming that the new tax has been paid.

Manufacturers that are close to HMRC’s threshold should consider potential changes they can make to the packaging they manufacture or import. Close collaboration with suppliers can provide organisations with a better chance of reducing their plastic usage. Finding innovative solutions for increasing the volume of recycled plastics used could also make businesses eligible to claim valuable R&D tax incentives.

Next steps: All food manufacturing businesses should keep accurate records of the packaging they manufacture or import, even if it contains more than 30 per cent recycled plastic. Businesses manufacturing or importing less than 10 tonnes of plastic packaging a year will still need to maintain records, showing that they are below the threshold, in case of future HMRC investigations.  

Verdict: Every impacted business needs to maintain accurate records even if they’re below PPT threshold.

Businesses must assess supply chains to determine which are likely to be affected – and make changes accordingly

John Carter, senior tax manager, Prime Accountants Group

PPT will affect the majority of companies in sectors such as consumer goods, online retail, pharmaceutical and cosmetics to name just a few. There are exemptions however, including transport packaging used on imported goods, or packaging used in aircraft, ship and rail stores for example.

Next steps: Businesses need to assess the impact of PPT on their business by assessing supply chains to determine which are affected. They also need to implement systems and assign roles and responsibilities, at the same time introduce the required changes to systems to enable the necessary data collection and reporting requirements to be met.

Verdict: Businesses must assess supply chains to determine which are likely to be affected and to make changes accordingly.

You knew it was coming… Will you be ready for your synoptic exam?

Posted by & filed under Synoptics.

Here, Angela Renshaw, accountancy programme manager at The Apprentice Academy, provides advice and top tips for tackling synoptic exams.

I won’t pretend the exam is a walk in the park – far from it. However, if you reflect on the journey that brought you to this point and how far you have travelled in your studies, you will realise that you have the willpower and existing knowledge to push you through that last mile to success and past that finish line, because you learned it all along the way. 

The secret is to remember the journey and critically analyse each step you took. Ask yourself: are there areas that I found particularly challenging? Which areas am I most confident in? What can I do to strengthen my weaknesses? What resources are at my disposal? 

Remember, the synoptic exam is about the knowledge and skills that you have acquired throughout the core modules of the accountancy qualification. You are expected to demonstrate the ability to apply them effectively within the context of a workplace scenario. 

The importance of revision 

I cannot emphasise enough the importance of revision – set yourself some objectives, focus on your weaknesses, and conversely, do not neglect your strengths as they too still need practice. 

Look at all the resources available to you from your training provider or the AAT Lifelong Learning Portal and utilise them! The latter has some valuable tools to aid success – particularly beneficial are the e-learning modules, key calculations, and green light tests available. 

Subjectively, the examiner’s report is a must-read. Scrutiny of this and paying attention to the feedback within will give you greater knowledge of what the examiner is looking for. Make notes from the feedback and look at areas where the examiner was particularly critical so that you can avoid the same pitfalls. 

Practice assessments (available in the AAT Lifelong Learning portal) are a great way of familiarising yourself with the assessment software. You can use these to get used to navigating your way through the different screens, the set-up of the questions within the software, and the different ways in which questions may be asked.

Creating a revision plan

Planning your revision is key to success. Create a timetable incorporating all the topics that could be tested – this will allow you to focus on bite-sized chunks of information consistently, as opposed to simply completing mock assessments and trying to cover everything at once. Pace yourself when revising and allow yourself breaks to prevent information overload, as this can be just as ineffective towards your progress as not revising at all would be. 

Allocate sessions, for example 30 minutes of study then a 10-minute break. You will retain information more effectively this way. 

Ensure you have your own space to study in, where it is quiet and free from distractions. We all subconsciously develop our own way of recalling information, the problem is it is just that – subconscious, so we don’t really know why we remembered something, it was just there. However, we can develop ways to consciously remember information, you just need to identify what method works for you. 

Practice what you’ve learnt

Revision and practice – the two go hand-in-hand. If you have identified an area of weakness, revisit it. Look at your resources and try writing helpful strategies down, then write them down again and again, does this help? Or can you develop acrostics to aid information recall? For example, if someone were to ask you what types of costing there are, think of the word SPAM and recall the information by utilising each letter: 

  • Standard costing 
  • Process costing 
  • Activity-based costing 
  • Marginal-based costing 

Is there a family member or friend who is willing to listen to you reading the question and your answer to them? They may not understand what you are talking about, but you can be their tutor and briefly explain your answer to them along the way. You may discover flaws in your answer where you can say: “Actually that does not sound quite right, I need to alter that because…” Equally, you may be confident that you have effectively covered the question posed. Either way, you should continue to practice. 

If you do not want to read to another person, try recording yourself either on your mobile phone or a dictaphone if you have one available. When you play your answers to each scenario/question back, have your written answer in front of you. This way you can pause the recording whenever you like and make notes of anything that you are unhappy with, or where you feel you need to expand your answer. When you are confident with any alterations/corrections you have made, re-record and listen again. 

Motivation, perseverance and positivity 

Focus and retain a positive attitude – you can and you will pass this synoptic exam with flying colours. 

If you are struggling with any of the core modules when you revisit them, do not give up. Negativity is not an option – remember, you have already learned this. Ask yourself what you did when you were studying that module, what tactics got you through it? Just because you found it hard and are doubting your ability in an area of a module does not mean that you cannot do it, or you will fail should it come up in the exam. 

Motivation, perseverance and positivity is the key to overcoming adversity. Prioritise any areas of weakness. I know this is a recurring theme, but practice, revise, practice and knock that “T” off can’t. 

Taking the exam

If you are studying for the Professional Diploma synoptic exam, printing a copy of the pre-release material and working through it is quite a useful tool. Analysis of the given scenario will help you to familiarise yourself with the status of the company – evaluating any potential inefficiencies within their systems and processes may put you at an advantage in the live assessment.

While you cannot take this into the exam, it will afford you prior knowledge of the company on which you will be examined. Your prior knowledge of the company gained from the pre-release material should stand you in good stead when it comes to deciphering the question posed. You may have already spotted some potential problems within the organisation. 

Practice, more practice and revision of the skills that I have learned. 

Affords me the ability to demonstrate and apply my knowledge. 

Successfully gain the qualified status I have been striving for. 

Stand tall and proud.  It was hard work but so worthwhile – I did it. 

Top tips for synoptic success  

Look at the practice scenarios – identify a question that covers your weakness, answer the question, then analyse your answer. When performing calculations, cross cast your figures where possible to ensure they are accurate. Double check your answers before moving onto the next task.

Make sure you read the question carefully to determine the format of the required answer. For example, do they want this to two decimal places? Writing about your calculations also helps prepare you for those written questions. Ask yourself, do I fully understand what these figures are telling me? 

Look at the examiner’s report and feedback – would they have been impressed with your answer? Did you answer the question? In written responses, do not waffle, read the question twice and understand what is being asked. State facts that apply to the question – what are the key words? Focus on them and construct your answer appropriately.

Plan your time

You do not have to complete the tasks in order – if you look at the exam paper and find that, for example, question three is one of your strongest areas and you want to answer that first, you can. This will help to boost your confidence in the early stages of the assessment. It may also leave you extra time for the weaker areas of your knowledge. If you have completed the practice assessments, you may already have formulated a plan of action and know the best way for you to tackle the order of questions.

The most important thing is planning your assessment time – allocate a time limit on each task and if you don’t quite finish something, come back to it if you have time later. Use the flag tool within the software to remind you before submitting your assessment. It is much better to gain the majority of marks across all tasks than to run out of time and not attempt some of the later tasks because you never got to them. 

On the day of the exam, pace yourself. You know where your strengths and weaknesses are. You have put a lot of hard work into your revision, now it is time to show off what you know. No one is expecting you to get 100%, if there is something you do not know, move on and come back to it. So long as you remain calm and confident, you will make yourself proud. 

Further reading:

How to future-proof your accountancy business

Posted by & filed under Digital skills.

Technology is fast changing the world, and technology itself is changing fast. Accountants not on board with the latest technology will find themselves unable to keep up with the marketplace – client expectations, competitors’ pace, and the latest legislation.

Not only must accountants adopt digital tools, but they must also adopt an overall understanding of the digital landscape, a mindset of adaptability, an eagerness to learn and a willingness to be flexible.

Change is the only constant

We know the next thing will come along, but that can’t stop us from taking the next step now. The pace of change can feel overwhelming sometimes, but that is why it’s so important that we dedicate time and resources to it.

We can be grateful to have access to tools that enable us to market ourselves easily, make processes more efficient and automate tasks to let us focus on higher-level work. With a bit of time, these tools are also easy to learn how to use. Make a small time investment upfront to save lots later down the line and improve your business in the longer term.

Digital Decoded: 24 February – 31 March 2022

Join us for this six-part webinar series to get the practical understanding you need right now to start capitalising on the digital revolution in your day to day work – whether you’re working in a finance team or running your own business.

Register Now

7 ways to future-proof a business

1. Utilise the data you have available to its maximum potential

Avoid the guesswork and use all the data you have to make positive, proactive decisions for your business and keep your team, clients, and other stakeholders better informed.

2. Stay ahead in your sector

Keep a close eye on your competitors and what they’re up to. Attend lots of events and training to make sure you’re bang up to date and constantly generating new ideas. Also, look at different sectors to see if you can learn from them and apply techniques that others in your industry might not even be considering.

3. Have a niche

It’s impossible to be everything to everybody and do it well. Choose a niche for your business and own it.

4. Always be marketing

Have short, medium and long-term strategies to reach prospects, including newsletters, social media, content marketing, website optimisation, and paid ads. Even when you’re busy, you should proactively put yourself out there. You never know when things could change and what other opportunities it might bring.

5. Have a clear business model

Know what your business model is and communicate it. Make sure it includes how you create customer value, a pricing proposition, profit formula, key resources and processes. 

6. Have contingency plans

Plan for the worst, hope for the best. Have a plan and savings to create a buffer and back-up if the unexpected happens.

7. Prioritise people

Even with all the technology in the world, people are still your most vital asset and how you treat them speaks volumes about your business. Create a strong culture, be open-minded and encourage collaboration. Have great processes in place for client relationships, recruitment and retention.

7 ways that technology helps to future-proof a business

  1. It creates speed and efficiency by automating tasks and standardising operating procedures.
  2. It will help identify cost savings, additional revenue streams, and ways to boost productivity and profit.
  3. You can drive more sales leads.
  4. It shows industry leadership and professionalism.
  5. You will understand the business more by having better visibility of data, business performance and the ability to compare.
  6. It will give increased confidence and the ability to make better-informed decisions.
  7. It can help to minimise risk and offer increased security.

What is a digital transformation plan?

A digital transformation plan is a long-term, strategic plan to use digital technologies to update or create new processes for the business.

What are the five main areas of digital transformation?

  • Managing data
  • Operational processes
  • External marketing
  • Customer relationships and experience
  • Internal organisational change
  • Communication and collaboration become easier.

Creating a digital transformation plan

Creating a digital transformation plan for your organisation will:

  • Help develop an overall business strategy to compete more effectively.
  • Demonstrate that a forward-thinking mindset, future-proofing and adaptability are priorities.
  • Ensure that you prioritise adopting appropriate new technologies and training.
  • Help attract clients and the best talent looking for a progressive organisation to work with.
  • Encourage internal ambassadors and develop business culture.

Digital Decoded: 24 February – 31 March 2022

Join us for this six-part webinar series to get the practical understanding you need right now to start capitalising on the digital revolution in your day to day work – whether you’re working in a finance team or running your own business.

Register Now

Further reading

Transition to Making Tax Digital is proceeding smoothly – so far

Posted by & filed under Making Tax Digital, Members.

With HMRC taking a constructive approach to enforcement the outlook is positive.

All VAT-registered small businesses with a taxable turnover of up to £85,000 will have to comply with the latest MTD legislation from April 2022. HMRC has urged these businesses to sign up for MTD for VAT before it becomes mandatory.

HMRC has also announced significant changes to the system for late VAT payments, which were initially due to come into force from April of this year. The new points-based system for late payments was intended to be tougher on repeat offenders but fairer on those who occasionally missed deadlines. This new system has now been delayed until January 2023.

It remains important for this last round of eligible VAT-registered businesses to prepare for MTD legislation and ensure the right processes and protocols are in place.

Some businesses are taking a forward-thinking approach and using the Government’s digitisation drive as an opportunity for further investment in cloud-based technology. However, there are concerns that smaller businesses may struggle to see the initial benefits, at least in the short term.

Key dates

  • April 1 2022: MTD for all VAT-registered businesses becomes mandatory.
  • January 2023: new implementation date for new points-based late VAT payment penalty system.
  • April 2024: introduction of second stage of MTD for Income Tax Self-Assessment (ITSA).

We spoke to several accountants across the UK to find out what impact MTD for VAT compliance is having and likely to have on their clients and their businesses.

Use MTD as an opportunity to invest in cloud-based software

Jeremy Kitson, Director, Prime Accountants Group

Any SMEs not already using MTD-compliant software need a plan in place to transition their records to an MTD-ready solution in advance of its introduction.

MTD is a further compliance burden to SMEs and they will incur additional costs. However, this should also be seen as an opportunity for those that have not already moved onto MTD-compliant software. There are cloud-based bookkeeping packages that can be used to improve the efficiency and accuracy of bookkeeping and to provide up-to-date management information on which to make informed business decisions. There are still a lot of businesses out there that do not have up-to-date management information available.

Next steps: Many businesses rely on their accountants and professional advisors for up-to-date guidance and advice as to the latest requirements. It is up to us as accountants to advise them and ensure they have a plan in place. Without this, a lot of clients will not even be aware of the implications of MTD.

Verdict: Use MTD as an opportunity to invest in cloud-based software.

MTD will improve efficiencies but benefits won’t be immediately clear due to cost burden

Andrew Norman, VAT Director and Simon Armstrong, senior manager, Menzies LLP

As the digitisation of tax has been on the horizon for a while, MDT compliance seems to have slipped down the agenda and there is a risk of some businesses burying their heads in the sand.

The implementation of MTD marks the first step towards a closer disclosure of information between businesses and tax authorities, following in the footsteps of other global tax jurisdictions. In the long term, this should make the whole procedure more efficient for everyone, however, the benefits are not always immediately clear to businesses.

For larger companies, in particular, the switch to MTD has the potential to reduce their administrative burden, enabling them to focus on the strategic running of the business, while minimising the risk of errors and associated HMRC penalties.

On the other hand, smaller businesses that are submitting very few transactions may struggle to see past the initial costs and challenges of compliance to the long-term business benefits.

Next steps: Ensure VAT records are MTD compliant with accurate information and file VAT returns using HMRC-compatible software.

Verdict: MTD will improve efficiencies but benefits won’t be immediately clear due to the initial cost burden. 

Software must improve finance processes

Martin Brown, founder and MD, My Management Accountant

Software needs to be capable of much more than ‘just’ delivering MTD compliance.

On a grander scale, use the move to MTD compliance as an opportunity to review the finance processes, including reviewing how business is supported – if at all – by its existing accountants. Simply meeting quarterly deadlines to file MTD reports will make the scheme an added burden, when it fact, it can be so much more.

Next steps: Consider investing in software that does more than just meet compliance requirements.

Verdict: Software should be more than just MTD-compliant.

Many busineses feel that MTD should have been introduced a long time ago

Clare Bowen, Director, MHA Monahans
VAT registered SMEs who are not currently filing their returns via the Making Tax Digital online system will need to act quickly. By the 1st April 2022, they must be compliant with the new rules. Businesses who fall into the scheme and don’t currently keep digital records will need to find an MTD compatible system that allows them to record their daily transactions, prepare and submit their VAT returns.

However, our hope is that HMRC will be as flexible and understanding through the second round of MTD for VAT as they were through the first and are lenient with the existing penalty regime to ensure that businesses who are trying to get things right aren’t penalised.

Next steps: MTD compliance is a great opportunity for business owners to really understand their cash flow. We are helping our clients move to online digital systems to prepare for MTD and their reaction, in the main, is that it should have been introduced a long time ago. Clients are finding themselves freed up from the paperwork clutter and the time-consuming task of preparing boxes of records for us to prepare their returns each quarter.

Verdict: Clients believe MTD compliance should have been introduced a long time ago.

MTD will encourage new level of scrutiny and utilisation of raw accounting data

Ian Haynes, Tax Director, Haines Watts Scotland

SMEs need to be aware that changes are coming to the way in which they may have to record and report information.  This process will be one of education both for advisors and clients, working together to ensure systems are in place that will allow compliance with MTD while creating as little disruption as possible. 

The announcement to delay the MTD for the VAT penalty regime until next year is another signal that every effort is being made to bring MTD in at all levels with the minimum of difficulty or hindrance.  While the requirements of MTD may seem daunting, the use of new software or tech to harness and scrutinise the raw accounting data will prove beneficial, encouraging access to vital management information. 

Next steps: Clients are understandably uncertain about the unknown, but as more details emerge on the mechanics of MTD, we can hopefully alleviate any of their concerns.

Verdict: MTD will encourage new levels of scrutiny and utilisation of raw accounting data.

Automation of data collection and reporting will allow for value-add services

Nick Levine, chartered accountant and consultant, Armalytix


The opportunity around MTD is clear for accounting firms. The automation of data collection and reporting will allow the value-add services to be better provided to their clients: accountants will not have to spend time maintaining physical copies of invoices and receipts. Day-to-day administration will be far more efficient. Businesses, meanwhile, will be able to access data in close to real-time, giving them the opportunity to plan forecasts more accurately and invest in advisory services such as access to finance and scenario planning.

Next steps: There are two options for SMEs to ensure MTD compliance: implementing MTD compliant software that connects and sends digital records directly to the HMRC, or using bridging tools to connect spreadsheets or legacy software.

Verdict: Automation of data collection and reporting will allow for value-add services.

The accelerAATe Student conference 2022 is now available on-demand for AAT students. All you have to do is register to view the sessions.

Posted by & filed under Students.

Earlier this year we launched the first-ever online AAT Student Conference exclusively for AAT students. The content is now available on-demand for AAT students.

Once registered here you have the option to watch on-demand at a time that suits you.

  • accelerAATe sessions
  • Panel discussion: The importance of your AAT Qualification
  • AAT Qualifications – what are your options?
  • Study support tips – making the most of your MyAAT account
  • Top tips to be assessment ready
  • Panel discussion: How to stand out in the job market
  • The skills you need to build and maintain a successful career

Panel discussion: The importance of your AAT Qualification

Kicking off the conference, join Sarah Beale and discover how she went from studying AAT to Chief Executive of AAT. Sarah will discuss how completing her AAT qualification helped her to progress in her career and that by putting in the hard work, anything is possible. 

Key learnings include:

  • find out where your AAT qualification can take you
  • our AAT qualified panel answer your questions
  • hear how Sarah Beale’s qualification shaped her career
  • hear from a varied range of people who have become AAT qualified
Register

AAT Qualifications – what are your options?

We know that a change in qualification versions can leave students feeling confused as to their options and next steps.

This session will highlight how Q2022 may affect you and will cover:
•    AQ2016 vs Q2022 – what are the differences?
•    qualification structures
•    transitional arrangements – how to plan your best route when moving from AQ2016 to Qualifications 22
•    what do your next steps look like?
•    key timelines.

Register

Study support tips – making the most of your MyAAT account

When it comes to studying, we know that students learn in different ways – from video content to e-learning, we have hundreds of different resources available via your MyAAT account.

Are you making the most of the support resources available to you?

During this session we’ll cover:

•    resources available in the Learning Portal 
•    different learning methods
•    planning your study time effectively
•    study planning top tips 
•    getting to know your MyAAT Account.

Register

Top tips to be assessment ready

With so many resources available – what should you be looking at in those final days leading up to your assessment?

In this action-packed session, we’ll cover: 

•    sample assessments and marking schemes
•    the importance of Examiner reports
•    physical assessments vs remotely invigilated assessments 
•    exam technique and what not to do in an assessment
•    coping with stress and anxiety.

Register

Panel discussion: How to stand out in the job market

This session is your chance to get ahead of the pack as our industry expert will provide you with an in-depth look at what the recruitment process looks like and also highlights the diverse accountancy careers that may be of interest to you. 

During this session you’ll learn:

•    the types of accountancy roles at different levels 
•    CV writing skills and interview techniques
•    what skills employers are looking for
•    when and where employers recruit
•    how to get a job with no work experience.

Register

The skills you need to build and maintain a successful career

Studying for qualifications are a great way to keep your skills up to date – but what other skills do you need to build and maintain a successful career? 

We’ll be covering the following areas in this action-packed webinar:

•    Excel skills 
•    communication skills 
•    report writing
•    the importance of networking.

Register

Whether you’re looking for study tips, need advice from past AAT students or are preparing for your future career, there are plenty of sessions to help you strengthen your skills and boost your knowledge.