PQ magazine, February 2025

IN THIS ISSUE

A note from the Editor

Time flies when you are having fun, and that is as true for accountants as it is for everyone else! So now is the time to put your nominations together for the PQ magazine awards. The deadline for those nominations is Friday 7 March – and the clock is ticking.

This issue of PQ is a little later than usual. ACCA pushed back the December results day by five days this time around, from the Monday to Friday. We never really got any explanation why this is the case, but they are include on page 5.

In the news we have the CIMA OT pass rates, and run the rule over the ACA Advanced Level exam results. The world’s oldest accountancy body in the world also celebrated its 170th birthday. Well done ICAS!

AAT students still have time to sign up to the student conference (see page 7 for all the details).

All the major accountancy body CEOs look at the year ahead for us, and we reveal the CV and cover letter AI ‘red flags’.

Finally, we have once more joined forces with Rogo for our latest roundtable. This time we are discussing those elusive ‘soft skills’. You can find out more and sign up to the roundtable on Eventbrite. Check it out at https://tinyurl.com/asyhcm9z

Happy reading.

Graham Hambly, Editor and Publisher, PQ magazine

8 ICAEW Advanced Level results

18 PQ Awards 2025

If you haven’t sent in your nominations, what have you been doing? Put that right –send in your entry today!

19 Award winner

Meet Tim Mickleburgh, the current PQ Accountancy Graduate of the Year

20 ACCA Strategic Professional

What to consider when choosing your Options in the Strategic Professional exams

22 AAT conference

AAT’s Annual Student Conference is your launchpad to success

23 CIMA spotlight

Nasheen Wuisman explains how you can bounce back from exam failure

24 CASSL spotlight

What are the challenges facing accountants in 2025?

25 ACCA SBL exam

4 Accountants suffering burn-out

Some 74% of accountants say they have experienced a form of burnout over the past 12 months

5 ACCA December results are in!

We run our rule over the latest set of ACCA pass rates - what was up and what was down?

6 Happy birthday ICAS! Scottish institute celebrates 170 years – making it the world’s oldest accountancy body

We’ve got all the pass rates and stats from the latest set of exams

9 PQ Awards 2025

It’s time you got your nominations in – so don’t delay, do it today!

10 ACCA exam tokens

T&Cs updated for ACCA remote, on-demand exams

12 Tech news

Government announces ambition to drive public policy through AI Features, etc

14 Have your say

It’s nice to see how ACCA pay stacks up against the rest; Cluedo tales; and where are the Scottish women? Plus our social media round-up

16 The year ahead

The CEOs of the UK’s leading accountancy bodies give their thoughts on what lies ahead in 2025

Chris Cain has some recommendations on how to tackle the SBL exam

26 ACCA SBR

Martin Jones highlights one of the ethical dimensions of the ACCA qualification

29 AAT Level 2

Is the supplier’s statement of account received correct, or does it contain errors?

30 AAT exams Nick Craggs explains the

Finance Act changes you need to know about

31 CIMA SCS

How to eliminate a basic error that’s made by numerous students in this exam

32 IFA spotlight

Establishing connections is the gateway to building your brand and getting noticed in your career

33 Your career

We highlight certain words you shouldn’t use in your CV if you are getting help from AI

35 Careers

Investors reject tradeoff between staff and AI; our careers Agony Aunt’s has advice on coping with meetings; and our Book Club review

36 Fun

The lighter side of life – and accountancy

The columnists

Lisa Nelson Why a consistent approach will bring you success 4

Robert Bruce In the US, it’s lawyers, not accountants, who rule the roost 6

Prem Sikka Private sector investment is upsetting the audit apple cart 8

Anna Kate Phelan Use all the tools at your disposal 10

Hannah MacDonald Our new columnist makes her debut 12

LISA NELSON

Why consistency equals success

The start of a new year often comes with resolutions – grand ambitions to transform overnight. Yet, how many of those resolutions last beyond January? Instead of resolutions, I advocate for setting clear, achievable goals and building consistent habits that carry you through the year.

In the last issue of PQ magazine (January ’25) I highlighted the value of reflective practice in your exam preparation. This approach– pausing to assess your strengths, the challenges ahead and the next steps for you to take – is equally valuable when setting and pursuing goals.

January is the perfect time to reflect on your journey so far. What did you achieve in the last year? What habits helped you succeed? Where can you improve?

I’ve personally benefited from breaking the year into shorter ‘sprints’, inspired by the book ‘The 12 Week Year’ by Brian P. Moran and Michael Lennington. For example, I set a goal to deadlift 100kg. This wasn’t achieved through a grand resolution but by building a sustainable routine and showing up consistently.

As part qualified accountants, think of your studies and career like training in the gym. Small, deliberate actions compound over time. In 2025, focus not on quick fixes but on habits that will help you stay steady, strong, and ready to achieve throughout 2025.

Lisa Nelson is Director of Learning at Kaplan

The right course for you

How do you find the right professional accountancy course for you? Well, you need to check out PQ magazine’s Course Finder page at: https://www. pqmagazine.com/course-finder/ Simply click on the AAT, ACCA or CIMA logos to discover our trusted providers.

We have nine trainers on the AAT list, including HTFT Partnership, Ideal Schools, e-Careers, Training Link and

Burnt-out accountants!

Almost three in four (74%) accountants said they have experienced a form of burnout (including exhaustion, detachment or decreased job performance) over the past 12 months, according to a recent poll from caba, the occupational charity for ICAEW members and students.

More than one in three (36%) of those surveyed said they have suffered from insomnia or disrupted sleep, and one in three (32%) has been diagnosed with or selfidentifies with depression. And you can add three in 10 (29%) experiencing regular panic attacks.

The report findings show the concerning prevalence of chronic stress and other burnout-related symptoms within the profession. Just over one in three (36%) respondents said that their burnout symptoms had caused them to feel lonely or isolated, while a similar percentage (32%) said that their symptoms had led them to experience financial difficulties.

Cristian Holmes, Chief Executive at caba, said: “Being a chartered accountant is a highly respected and rewarding career choice, and there are a great many people who are incredibly happy in their role.

However, for some, long working hours and tight deadlines can make for a high-pressure environment, which can sometimes lead to severe physical, emotional and behavioural symptoms we often associate with burnout.”

Disciplinary committee orders student’s removal

ACCA student Muhammad Kinzer

Rahman Mir has the dubious honour of being the last disciplinary case for 2024.

He was found guilty of not ensuring he was in a room on his own when taking his exam. He also failed to “adequately follow an instruction to keep his eyes on his computer screen”. His exam was terminated part-way through by the proctors because of his suspicious behaviour.

The committee looked at the

video footage and agreed with the ACCA report. Despite being asked for a camera pan the PQ continued

taking notes. The committee was able to hear whispered conversations between the accused and a third party, who was later seen on screen. The sound of a door opening and closing was also heard. And cameras picked up more than the permitted two sheets of scratch paper.

The committee decided that Mir be removed from the student register and be ordered to pay costs of £6,500. Its decision is now open to appeal.

A habit for winning!

Aspen Insurance Group recently won the Non-Life Insurance Investment Strategy of the Year category at the Insurance Investment European Awards. And centre stage, holding the bubbly, is the reigning PQ of the Year, Grazia Maria Pia Salcuni!

She studied at LSBF, who are sponsoring

our Distance Learning Student of the Year category at this year’s PQ awards. As

Premier Training. We know if you choose any one of these you will get a first-class service and be one step nearer your goal of becoming a qualified accountant.

Sanctions against Crowe UK LLP and Nigel Bostock

The FRC has imposed sanctions against Crowe UK LLP and Nigel Bostock over the audit of Akazoo Limited. Crowe received a financial sanction of £650,000, plus a severe reprimand. This

LSBF’s director of the Professional School, Paul Merison, said: “Great to see our friends at

was reduced to £455,000. The FRC said the audit declarations for FY16, FY17 and FY18, signed by Crowe, did not satisfy the relevant requirements.

The audit engagement partner in each of the three years, Nigel Bostock, was fined £75,000 and issued with a severe reprimand. This was reduced to £52,500. The respondents will also pay £500,000 towards the Executive Counsel’s costs of the investigation.

Read the full story at www.

Aspen Insurance Group bringing home the bling. Must be inspiration from the amazing classes we provide, although she might be PQ of the Year she is continuing her attempts to hoard every trophy on offer. LSBF is proud!”

Deadline for entries to the PQ awards is Friday 7 March. Download the application form at https://tinyurl. com/4bdxnzwz

pqmagazine.com (just scroll down the news bar to find it).

IIA and ACCA extend

MoU

The Institute of Internal Auditors (IIA) and ACCA have announced the extension of their existing memorandum of understanding (MoU). Under the terms of the new three-year agreement, the IIA and ACCA will focus on advancing their members’ careers, enhancing governance practices and serving the public interest.

Those December ACCA pass rates

PM and APM remain the hardest papers to pass, as both again had the lowest pass rates for the ACCA’s Applied and Strategic levels in December, at 41% and 38% respectively.

AA and AAA were not far behind, with pass rates this time around of 44% and 39%. And it would appear that 47% pass rate for AA for the September sitting was just a blip!

A slight worry might also be the slip in pass rates for both the Strategic Essential papers, especially after ACCA has pumped so much  time and resources into SBL and SBR.

Alan Hatfield, executive director – content, quality and innovation, said: “We’ve made a strong start to the new year with this robust set of results which reflects the dedication and hard work of

our students.

“ACCA is focused on supporting our students' career success and provides a wealth of excellent learning support for students and tutors. I’m delighted to see continued strong engagement with our key study resources, including My Exam Performance, our Practice Platform and the ACCA Study Hub, which has now been used by over 142,000 students. Using these resources has been shown to support improved exam performance, meaning faster progress to qualification, especially when studying with an Approved Learning Provider.”

A total of 113,910 students entered the December sitting, which saw 130,898 exams completed. Some 4,734 students at this sitting completed all

their exams and move on to affiliate status.

Anyone thinking of entering the March ACCA session now has until 27 January to do so. This is the standard exam entry deadline – there is no late entry deadline available for March.

ACCA DECEMBER PASS

RATES: BT 87%; FA 69%; MA 67%; LW 81%; TX 54%; FR 50%; PM 41%; FM 51%; AA 44%; SBL 51%; SBR 51%; AAA 39%; AFM 45%; APM 38%; ATX 47%.

Power up your employability skills

PQ magazine and Rogo have joined forces again for another live roundtable discussion.

This time we are looking at the importance of what are often called the ‘soft skills’ - which we know have become the ‘differentiators’ in the job market.

Come and join us on Tuesday 25 February 2025.

The live roundtable discussion will begin at 4pm (GMT) and run for about 45 minutes.

Just go to Eventbrite to register your interest: https://tinyurl.com/asyhcm9z

Our sponsors include Reed in Partnership, ICAEW and IFA.

This event is perfect for anyone looking to stay ahead in the ever-evolving world of accounting. Don't miss out on this opportunity to take your career to the next level!

Accountants…Time to power up your employability skills!

PQ magazine and Rogo have joined forces again to host an online roundtable on what skills accountants need to ensure a successful career in 2025!

We will gather together experts from the industry around the table to discuss the rise and rise of what were once called ‘soft skills’.

These skills have become the real ‘differentiators’ in the job market, and we can tell you exactly what employers are looking for…

It really is no longer enough just to be good at the numbers!

Join us on Tuesday 25 February 2025.

The live roundtable discussion will begin at 4pm (GMT) and run for about 45 minutes.

Places will be allocated on a first-come first serve basis.

To sign up, register your interest at https://tinyurl.com/asyhcm9z F E W S

ROBERT BRUCE

In the US, it’s the lawyers who rule the roost

Accountants are lucky for two things in the UK. In the US they have a lengthier, but not necessarily more rigorous, training regime. And they are not bossed by a US-style legal profession that sees itself in direct competition and as top dog in the business world.

The derogatory term ‘beancounters’ was a US invention and it stuck (journalists have always loved it). It expresses an image of plodding accountants nerdishly sifting through a pile of invoices. The great crime writer Raymond Chandler only once gave an accountant a walkon part in one of his plots. And he portrayed him as a man with a row of different-coloured audit pens in his jacket pocket.

No wonder the lawyers gained the upper hand all those years ago and stuck with it. It is their fault that accounting has such a reputation. The lawyers were able to create the massive shelves of rule-books that govern corporate life in the US. As a UK regulator once put it, American accountants have to deal with libraries of rules. In the UK principles still rule as final arbiters even though the regulations still multiply. And there is a third thing. The US profession is in decline. People don’t want to endure a lengthy training period simply to have someone call them a bean counter at the end. Sadly, the US action is among lawyers, not accountants.

Robert Bruce is an award-winning writer on accountancy for The Times

PQ JOB OF THE MONTH: Management

Accountant, Burnley

A highly successful logistics company, based in Burnley, is looking for a Management Accountant to join their team. You should be a part qualified ACCA/ CIMA or have your AAT qualification, as a minimum.

On offer is a competitive salary of up to £38,000, dependent on experience. You will work in a fulltime, permanent position, 37 hours Monday to Friday. The business

World’s oldest accountancy body is 170 years young!

The start of 2025 saw the Institute of Chartered Accountants of Scotland (ICAS) proudly celebrated its 170th birthday, making it the world’s oldest professional body of chartered accountants.

It was founded by Royal Charter in 1854, and in 1855 introduced the designatory letters ‘CA’.

Last year saw ICAS introduce ‘CA24’ – a new syllabus and way of learning for accountants. It is being hailed as one of the biggest shake-ups in the institute’s history.

Bruce Cartwright, CEO at

ICAS, said: “While technological advancements, sustainability reporting developments, governance reforms and regulation continue to reshape the profession, our legacy serves as a reminder of the need for resilience and capacity for

CIMA OT pass rates are in

It has been a year since CIMA last posted its OT pass rates, and the big stand-out stat is the rise in all the final pillar paper pass rates this time. The P3 pass rate jumped by 4 percentage points to 63% year-on-year; F3 is also up by 2 percentage points to 58%; and the E3 pass rate has risen to 76%.

The worry will be the P2 success rate seems stuck at just 44%, and

F2 has slipped from 51% a year ago to 47% for this year.

The pass rates for the first OT exams – P1 and E1 – also slipped by 1 percentage point. However, for F2 the pass rate fell by 2 percentage points to 78%.

CIMA OT PASS RATES: E1 83%; E2 81%; E3

adaptability.”

To mark its anniversary and inspire the next generation of accountancy professionals, ICAS launched a nationwide competition asking schoolchildren to design the front cover of CA magazine – the monthly digital publication for accountancy and business professionals.

Hundreds of pupils nationwide created artwork reflecting ICAS’ legacy and highlighting themes that are important for creating a better world to grow up in, with the winning entry featured in the magazine’s December issue

These latest set of OT pass rates cover 1 November 2023 to 30 November 2024.

Level 4 gets funding boost

The UK government’s announcements on the future of post-16 qualifications includes a commitment to increase funding for the Level 4 Professional Accounting Technician qualification to £12,000, up from £8,000.

AAT said the enhancement will support

the pipeline of accounting talent and provide skills, including creating

offers the opportunity for you to finish at 2.30pm on Fridays, enjoy regular social events throughout the year, celebrate birthdays and has excellent in-office amenities.

The closing date for applications is 2 February. For more go to https://tinyurl.com/ypwpjcw3

New student newsletter

ICAEW has launched a new LinkedIn newsletter for its PQs. With Student Insights you can stay up-to-date with all ICAEW’s latest

financial reports and identifying risks, that are critical to business.

interviews, guides and features. The aim is to provide fresh insights, innovative ideas and an inside look at the lives and careers of ICAEW students and members. First up is a look at the 10 common exam mistakes, and how to avoid them.

Ashwini Poopalasingham also takes a look back at her ACA journey. Check ICAEW Students (5,009 followers) on LinkedIn.

What does 2025 hold for PQs?

PQ magazine is unique in that it

Sarah Beale, AAT’s CEO (pictured), said: “The boost to Level 4 funding shows a clear investment in the future of accounting talent and will strengthen qualifications delivery. This increase also recognises the important role that practical and technical accounting skills play in supporting employers and growth for the UK economy as a whole.”

brings the whole accountancy family together. We asked the six CEOs of the top accountancy bodies to tell us what lies ahead in 2025, and you can find out what they predict on page 16

AAT’s Sarah Beale believes accountancy is set for another year marked by big changes, big challenges and huge opportunities.

CIMA’s Andrew Harding says it is vital you continually enhance your skill sets, and Helen Brand at the ACCA feels 2025 will bring even greater focus on sustainability.

CIMA HQ

PREM SIKKA

Private equity upsetting the audit apple cart

The march of private equity has left the auditing industry in something of a quandary. Some audit partners would like to sell their firms and head-off to sunny beaches. Some would welcome additional capital from private equity to enable them to compete with the Big 4.

Some resent intrusion from the new upstarts, citing legislation requiring that entities undertaking statutory audits work must be controlled by qualified professionals. In the world of business, this is an oddity. Airlines don’t have to be owned by pilots; pharmaceuticals don’t have been to be owned by pharmacists. What matters is the quality of product, service and regulation. That is the kind of reasoning for business investment and has been for decades.

But auditors don’t want the same to apply to their own business and claim that private equity intrusion would somehow compromise auditor independence. Actually, auditor independence has been compromised for years through longevity of appointment, sale of non-audit services, fee dependency, and secrecy about the conduct of audits.

That said, the expansion of private equity should ring alarm bells. Its basic business model is profiteering, cuts to staffing and wages, under investment, asset-stripping and tax dodges. It is attracted to auditing because the market is guaranteed by the state and there are possibilities of earning monopoly rents. It rarely has long-term interest in businesses and has left a trail of destruction behind it.

Prem

Sikka is

Emeritus Professor of Accounting at the University of Essex

Tax briefs

Public trust in tax

Taxpayers support the idea of a fiscal contract – citizens agreeing to pay tax in exchange for services –but a global poll by ACCA found only a third see the deal working in practice.

The survey found that 52% of respondents agree that taxes are a contribution to the community rather than a cost (25% disagree, the rest were neutral), but only 33% agree that tax revenues in their country are spent for the public good (46% disagreeing, rest neutral).

ICAEW Advanced Level exam results

The results are in for the ICAEW Advanced Level November sitting. In all, just over 6,000 students sat 10,213 papers at the winter diet, and the overall pass rates were:

• Case Study (ALCS) 81.8%.

• Corporate Reporting (ALCR) 78.9%.

• Strategic Business

Management (ALSM) 83.6%.

Some 1,614 trainees sat only the ALCS paper at this sitting, and the pass rate for them was 86.9%. However, for those who just sat just ALSM the pass rate was 55.5%, and for ALCR onepaper sitters the pass rate was 51.5%.

In total, 667 PQs sat all three papers, and of these 69.4% passed all three, with another 20% passing two out of three.

ICAEW also released the European and Rest of the World pass rates separately, although the small number of students sitting the exams outside Europe

ICAEW NOVEMBER 2024 PASS RATES

AIA scholarships up for grabs

AIA is offering up to five scholarships to UK students who are committed to a career in accountancy and finance.

These scholarships are a lifechanging opportunity to study for the AIA professional qualification with full funding towards tuition and exam fees.

Commonwealth Scholarships are also available (up to five) to help fund Commonwealth citizens to study the AIA professional

qualification.

To be eligible you will need to complete the application form and submit and essay of no more than

Free AAT student conference

It really is time to register for AAT’s free AccelerAAte Annual Student Conference, and kickstart your 2025.

The student conference runs over three days, from 29 to the 31 January, but to get involved you must register.

Recruitment consultants Reed

ACCA CEO Helen Brand said:

“Trust in tax systems is crucial for sustainable development and prosperity, and the findings of this survey highlight the challenges that many governments across the world face in building it.”

Tax taken to hearth

Did you know that there was once a tax on fireplaces in the UK?

The hearth tax was a 17th century tax, and the University of Roehampton, in the form of Dr Andrew Wareham, are digitising

will be on hand to show you how to use social media to land your dream job, and award-winning Will Boardman of Training Links will provide his assessment tips and tricks!

There’s lots more, too. You really do need to check out that first lunch-time session

records of the tax from every county in England.

What is interesting about the tax (to us anyway) was the fact that it was neighbours who monitored each other and did the tax collecting as a sort of part-time job. The tax ran from 1662 to 1689 and was collected twice a year. It was also levied in Scotland in 1691, until 1695.

Time

to address unfair tax rules

The Chartered Institute of Taxation (CIOT) is calling on the government

make direct comparisons problematic (see below).

Winner of the annual order of merit was Faye Bottomley, who works for KPMG in London.

800 words on what the scholarship would mean to you or why a career in accountancy is important to you. Applicants will also need to meet AIA’s entry requirements.

Some of the scholarships will be allocated to those from a lower social-economic backgrounds, to support the AIA’s commitment to Access Accountancy.

Deadline for applications is 28 February 2025.

To apply and see all the T&C’s go to https://www.aiaworldwide.com/ study/scholarships/

on 29 January, where Bola Lawal from JP Morgan and Natalie O’Donnell from Barclaycard will be joined by AAT CEO Sarah Beale and AAT’s Neil Maguire. You will really get a sense of where the AAT qualification can get you.

You can sign up at aat.org.uk/ accelerate2025. Seeº for more.

to address unfair tax rules as interest rates on late payments rise.

The interest rate on late payment of tax is due to increase by a further 1.5% in April, with no equivalent increase in interest on overpaid tax.

The CIOT wants the government to reintroduce rules to enable HMRC to waive interest on underpaid VAT when no actual tax loss to the Exchequer occurs.

This power was omitted from the new VAT interest regime, which came into effect for VAT return periods starting on or after 1 January 2023.

Get nominating for the PQ awards!

We need your nominations for PQ magazine awards 2025. There are lots of shiny PQ trophies up for grabs, and one could have your name on it!

Winning can really help change how people look at you and how you think about yourself. Our reigning Graduate of the Year, Tim Mickleburgh (pictured), who is now studying with CIMA, said:

“I will treasure my shiny PQ trophy forever, and whenever I look at it I am reminded of how much of a life-changing experience university was for me. I hope that my success inspires other young people from disadvantaged backgrounds and shows that you can achieve anything you want if

Back to Basics – series two

Following the success of series one, we now have four YouTube videos in our second Back to Basics series. The new videos cover tax points, VAT control account, impairment, and provisions.

The simple aim of the series is to get the best tutors around to explain concepts students struggle with in under 10 minutes.

We also have videos on

double-entry bookkeeping, assets, and the trial balance in series one.

Here are links to some of the

you have a passion for what you do and you work really hard at it.” For more on Tim’s story see page 19

But you need to be in it to win it, and this is not the time to go all shy on us! Download the application form from the website at https://tinyurl.com/4bdxnzwz and get nominating. The deadline for entries is Friday 7 March.

All those shortlisted will be invited (free of charge) to what is called ‘the biggest night in accountancy education’.

• See more on page 18

top-viewed videos in the Back to Basic series:

• Double entry bookkeeping with Tom Clendon: https://tinyurl.com/2zk3z5v5

• VAT control account with Will Boardman:

https://tinyurl.com/5csxm2u3

• Cost behaviours with Jo Tuffill: https://tinyurl.com/44rfdjch

• Trial balance with Michele Baker:

https://tinyurl.com/39un45a3

Check out the full playlist (series one and two) at https://tinyurl.com/2an6ptj6

AAT Careers Hub launched

AAT has unveiled its new careers hub, saying the aim of the new service is “to connect employers with top accounting talent at every stage of their career”.

That means if you are looking for entry-level roles or senior positions, AAT Careers Hub promises to have it covered. It also wants to be your one-stop-shop for finding employers that are actively seeking people with AAT qualifications.

When we took a look at the hub there were roles for KPMG tax apprentices in Reading, Bristol, Leeds and Manchester. KPMG also had audit apprentices roles on offer all around the UK. There were also 18 jobs in the accounting practice area with Armstrong Watson and Buzzacott.

A standard job listing will cost employers £350.

For more go to https://youra.at/ K5KvP9

ANNA KATE PHELAN

Use all the tools at your disposal

Preparing for high-stakes accountancy exams is no small feat, as you’re all too aware. However, with the right tools and strategies, success is within reach.

One of the most effective ways to prepare is by combining practice tests with guided learning on e-assessment platforms. Practice exams that simulate the pressure and structure of your final test are crucial. They help you familiarize yourself with the format and timing, while also reducing anxiety and boosting your confidence in test conditions. But these exams are most effective when integrated with e-assessment platforms that support targeted learning. These platforms enable you to identify and focus on the areas where improvement is most needed, making your preparation smarter and more efficient.

E-assessment tools provide detailed feedback and analytics, highlighting both your strengths and weaknesses. With this insight, you can craft a focused study plan and progress through guided lessons and realistic practice tests, building the skills and knowledge you need—not just for practice, but for the real exam.

To delve deeper into these strategies, AAT and Eintech are hosting an engaging webinar for Training Providers on Friday 24 January, at 12.30pm. Join Eintech CEO James Carter as he demonstrates how e-assessment platforms like Rogo can elevate exam preparation. Register at https://tinyurl.com/bdfkw5k3

Anna Kate Phelan is Head of Product at

ACCA remote on-demand exams – T&Cs update

ACCA’S partner, the British Council, has made some updates to the terms and conditions for remote, on-demand exams. These include remote exam token expiry dates and a new ‘no-show’ policy.

A 90-day expiry period now applies to remote, on-demand exam tokens. This means that a student is required to schedule their exam within 90 days of purchasing their token. To avoid the risk of exam tokens expiring, ACCA are encouraging students to only purchase their exam token when

they feel ready to schedule and sit their exam.

Students will still have the flexibility to cancel or reschedule their exam up to 24 hours before their exam at no cost. However, if a student attempts to cancel or reschedule their exam with less than 24 hours’ notice or does not appear for their exam on their scheduled date and time they will now forfeit their token. This means they will be required to pay in full for another token if they wish to take their exam.

Cinven’s ‘significant investment’ in Grant Thornton UK

International private equity firm Cinven has announced it has reached an agreement to make a majority investment in Grant Thornton UK.

Cinven confirmed that Grant Thornton’s current UK partner base will remain invested in the business, as a significant shareholder alongside the Cinven funds.

Samy Jazaerli, Principal in Cinven’s Financial Services Sector

team, said: “Accounting Services has been a priority sector for Cinven’s Financial Services team, and Grant Thornton’s strong

Students who purchased unused exam tokens prior to 1 November last year should have been contacted by the British Council regarding the specific updated terms and conditions for their exam token(s).

brand, broad product offering, blue-chip customer base and successful track record set it apart in the UK market. Drawing on our significant experience of partnering with management teams to accelerate the growth of high-quality companies, and our strong presence in the UK and internationally, Cinven is well placed to support the acceleration of the company’s strategy and maintain its growth momentum.”

The transaction is subject to Partner ratification, regulatory approvals and customary closing conditions.

What happened to our moral compass?

Just over a quarter of UK adults (that’s 14 million people) commit at least one economic crime a year, according to a study from the University of Portsmouth

100 years and counting

The number of US firms who have had the same auditor for more than 100 years has doubled compared with what it was eight years ago, according to recent analysis from Ideagen.

Household names such as Coca-Cola (103 years), Proctor & Gamble (134 years), Goodyear Tyres (126 years) and Goldman Sachs Group (102 years) are some of the 24 public companies listed in the IS who have kept the same auditors for more than a century.

PwC, Deloitte and EY are the auditors of choice for this exclusive centenarian club with eight, six and 10 long-term clients respectively.

The study revealed 17% of respondents commit more than one type of economic crime every year – the average was four crimes per offender. This implies UK adults annually engage in at least 57 million economic crime acts!

Worryingly, compared with 2011, more people now view buying stolen property, bribery and welfare benefit fraud as ‘justifiable’. Researchers also calculated

Some firms, however, have recently broken their century-long ties, due to new auditing regulations in the EU, including energy giant BP and British finance company Lloyds Banking Group – which retained its previous auditor, PwC, for 153 years before being forced to rotate.

The switch is a result of new EU rules, brought in in 2016, requiring companies to change auditor every 10-24 years and conduct an audit tender process every 10 years. The thinking being that mandatory audit rotations would increase competition among auditors, providing a benefit to companies and improved audit quality.

Comparatively, the US has shied away from similar regulations. After considering the matter in 2014, Congress passed a law preventing the Public Company Accounting Oversight Board

‘Integrity Scores’ for participants based on their responses. Those with the most dishonest disposition are five times more likely to offend than those with the most honest disposition.

And the study found younger people were more dishonest than older people. The offender rate in the 2023 sample starts at 45% of the 18-25 year group and falls to 7% if the 66-year-plus group.

(PCAOB) from implementing mandatory auditor rotations.

Young Brits will miss high street bank the most

Some 73% of 18-24 year olds would miss their high street bank branch if it closed, the highest proportion of any age group, according to new research from KPMG UK. Overall, more than twothirds of UK adults said they would miss having a local bank branch.

Depositing cash (40%) was the top reason why 18-24 year olds last visited a bank branch. This was followed by 24% using the branch to discuss personal finances with a bank manager – the highest of any age group. Almost a quarter (23%) last visited the branch to withdraw cash.

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HANNAH MACDONALD

Early careers support is vital

When editor Graham Hambly kindly offered me a column in PQ, to say I was elated was an understatement. My parents are journalists and I think they finally understand something I’m doing in my career. Accountancy isn’t something that is particularly on their radar, although my mum set up her own company so she knows her taxes better than I do.

I’m Hannah, the founder of Accountancy Hub, a support service and platform for accountancy and professional services trainees. Our mission is to create a more inclusive industry by supporting those in their early careers to thrive. We’ve been going for one year, and we are supporting accountancy firms to increase retention, exam success and wellbeing at the trainee level. Why did I launch Accountancy Hub? Well, I became ACA qualified at a top professional services firm, and I found it a struggle. I soon realised other people were struggling too, even the ones who were flying through their exams. I informally mentored those coming up behind me who were finding the exams challenging, and nearly all of them left the industry. I realised they were brilliant at their jobs and that we needed these people to get through those first few years.

In the coming months I’ll be talking about early careers, workplace culture, ethics and inclusivity in accounting. See you there!

Hannah Macdonald is the founder of Accountancy Hub

Turbocharging AI

The UK government has unveiled its much-anticipated blueprint to turbocharge artificial intelligence, which it hopes will deliver a decade of national renewal.

Prime Minister Sir Keir Starmer (pictured) has agreed to adopting all 50 recommendations from Matt Clifford’s game-changing AI Opportunities Action Plan.

The plan includes the establishment of AI Growth Zones to speed up infrastructure development, with the aim of boosting productivity by up to 1.5 percentage points a year. If fully realised these gains could be worth

up to an average £47 billion to the UK economy each year over the next 10 years.

The news comes as three major tech companies – Vantage Data Services, Nscale and Kyndryl –

have committed to a £14 billion investment in the UK to build AI infrastructure and deliver 13,250 jobs.

Starmer said: “Artificial intelligence will drive incredible change in our country. From teachers personalising lessons, to supporting small businesses with their record-keeping, to speeding up planning applications, it has the potential to transform the lives of working people.

“But the AI industry needs a government that is on their side, one that won’t sit back and let opportunities slip through its fingers. And in a world of fierce competition, we cannot stand by. We must move fast and take action to win the global race.”

Bench Accounting Software closes ‘abruptly’

In a move that has shocked the industry, even this side of the Atlantic, automated bookkeeping and tax reporting start-up Bench abruptly shut down its services, just two days after Christmas Day.

In an email to customers the Vancouver-based company said: “We understand this news may come as a surprise and are committed to

helping you navigate this transition in the days to come. For now,

Appy Days

HMRC says that 2024 was the most successful year for the HMRC app to date, with two

Amazon vs Starlink

Amazon moved a step closer to entering the UK broadband market, which will intensify its rivalry with Elon Musk’s Starlink.

Through its Project Kuiper initiative, the tech giant said it wants to provide high-speed internet services to all UK homes, businesses and even the government. Amazon has filed its intentions with Ofcom.

To make this all happen Project Kuiper now needs to launch more than 3,000 low-earth orbit satellites. A big plus is their promise to get

to those hard-to-service remote areas that currently don’t have good coverage.

AccountsIQ acquires ExpenseIn

AccountsIQ has announced its acquisition of Expenseln, the expense management software provider. Founded in 2015, the company processes over a million expenses claims each month and has a customer base that spans over 40 countries.

AccountsIQ said the acquisition

please note that your Bench records will be made available for your

million more people now able to check their tax codes, view annual tax summaries and make or receive secure payments – all with just a few taps.

Since its launch in December 2017, more than seven million people have downloaded the app, and successfully logged in to access their tax information.

Many people are choosing the HMRC app to ‘get on it’ with their money and tax as they start

reflects the company’s vision to expand beyond finance teams into the broader business user function.

And by integrating ExpenseIn’s advanced capabilities, the group now supports a combined user base of over 350,000 users.

Darren Cran, CEO of AccountsIQ, said: “This acquisition bolsters our position as a leading finance management solution for ambitious finance teams in the mid-market, with our combined knowledge and experience allowing us to really understand what our customers need

business use in the future.”

Users, and there are estimated to be around 35,000, were told to transition to accounting software company Kick.

Then on 30 December 2024 some good news, when Employer. com announced it has acquired Bench Accounting and was working diligently behind the scenes to ensure a seamless transition.

their day, with 9am to 9.59am the most popular time for logins. Over the past 12 months, the increased use of the HMRC app has resulted in:

• More than 100 million app sessions.

• More than two million new users this year.

• £652 million received in Self Assessment payments.

• 77% increase in app downloads in 16-25 age group.

and deliver the technology.”

Cost of ‘doing it all’

New research from Xero, the global small business platform, has found leaders of the UK’s smallest businesses (one to nine employees) and sole traders spend less than half (46%) of the working week on their core jobs.

These businesses effectively aren’t starting work on primary responsibilities until 2.36pm on Wednesday because they’re juggling non-core roles .

ACCA all the way

Thanks for sending me PQ magazine each month, you never fail to surprise me with how much is going on in our industry. I loved last month’s issue, especially as there was lots in it about salaries. Don’t worry, I am not one of those accountants obsessed about money, but I do like to know what I am worth!

As an ACCA PQ I was happy to read the gap between us and those studying the ACA qualification is widening. Who would have thought little-old ACCA trainees are now worth more in the market than ICAEW ones?

I was always told I had made the wrong decision not to go into

Cluedo suggestions

I really enjoy PQ in spite of being Q or FQ (?) for 15 years now. Always a good read. I also actively recommend you to all my accountancy students at the Open University.

Now, turning to your idea of an accountant’s version of Cluedo (PQ fun page, January ’25), the accounts offices I’ve worked in have been heavy on cutting remarks and sly betrayal rather than obvious weaponry. We used to throw £10 bags of pennies to each other in the safe rooms in my Midland Bank days in the 1980s. The black eye was worth it for the story.

Take care, keep up the good work and thank you for keeping the profession entertaining.

David Titterington, by email

Keeping warm

I was shocked to read that the ICAEW charity caba is offering students help with their energy costs (PQ, January ’25). Perhaps there are more accountants being paid below the minimum wage than I thought. People always assume all accountants are well paid and this is proof that this is not always the case. Maybe the ICAEW needs to ensure all its firms are paying a living wage. Name and email address supplied

practice and studying for the chartered qualification. What people failed to understand is that ACCA is also chartered, and by working in industry I now have

three years head start on any ACA making the switch.

It is also amazing to see someone not even ACCA qualified can be earning nearly £60,000 in London. The ACA salary at the same level is £45,000. That is a massive difference.

It may account for the reason the profession is struggling to attract the next generation of auditors. OK, the senior partners are earning a bundle, but they don’t seem to want to spread that wealth lower down!

I am so glad I chose the ACCA route and would encourage anyone thinking of studying accountancy to ‘get certified’.

Name an email address supplied

Women must count

The Scottish profession still has a lot to do to attract women into accountancy. Your Accountancy by Numbers feature (PQ, January ’25) shows Scottish institute ICAS is struggling to attract women to sign up to training contracts. Of the total student intake, just 37% were women in 2023, and simply put this is just not good enough. However, I don’t blame the

Robert Bruce, Prem

you have any problems

ICAEW has now published its list of the top X influencers in the accountancy world for 2024. #ICAEWROAR celebrates UK-based individuals, who cover accountancy-related topics, and represent a tone of voice reflecting ICAEW’s values.

Top of the list this year is ‘tax realist’ Dan Neidle (@danneidle), who is followed in second-place by ‘economic justice campaigner’ Richard Murphy (@RichardJMurphy).

In third place comes tax barrister Keith M Gordon (@keithmgordon); next comes chartered accountant Rebecca Benneyworth (@rebeccabeneworth). All really are worth following.

Neidle has some 168,300 followers on X. When we looked his latest post highlighted a new report by Tax Policy Associates that reveals 40% of all HMRC late filing penalties are charged to people who don’t earn enough to pay tax. Some 420,000 penalties have been charged to people on low incomes over the past four years.

Here at PQ Towers we are a little unsettled by the antics of Elon Musk, the owner of X, so we have now joined Bluesky, and you can find us @pqmagazine. bsky.social. As a text-based social media site Bluesky offers an almost identical experience to Twitter. It now has 26 million-plus users.

institute, who have been working hard on diversity. It is those traditional Scottish firms holding on to their old ways that is putting women off. If change isn’t made soon then it is going to be decades before ICAS matches ACCA’s membership figures –they have achieved almost parity between men and women at 51%/49%.

Name and email address supplied

Interestingly, Murphy, who has a mere 237,200 followers on X, has decided to no longer post to his X account, and you can also find him on Bluesky. He has 32K followers already. Neidle is also on Bluesky and has 52,200 followers.

It all means the ICAEW (who are on Bluesky) may have to change its judging criteria next year. It would interesting to find out if it believes the owner of X represents the tone of voice that reflects ICAEW’s values!

What lies ahead in 2025?

We asked the accountancy bodies CEOs for their thoughts on what will happen over the next 12 months. Here’s what they told us…

Looking to the next generation

This coming April will mark my first anniversary as Chief Executive of ICAEW, a year in which I’ve been privileged to meet chartered accountants around the world and learn about their varied roles.

This year is an exciting time to be at ICAEW, with the first students starting our next generation ACA qualification when it rolls out in September.

The ACA has launched global careers in business, finance and accountancy for almost 150 years, and our exciting changes will ensure that the qualification remains ‘best in class’ for the next generation.

The updated ACA represents the biggest change to the qualification in 30 years, and will provide the next generation of students with the skills in ethics, technology, data analytics and sustainability to adapt to and lead the profession, workplace and world of the future. It’s our intention to also offer this new content to members as free CPD, while our existing students will be able to choose whether to complete the ACA through

either the current or existing route.

We’re also hopeful that 2025 will bring further progress on audit and corporate governance reform, a key part of which will be the creation of the new regulator, the Audit, Reporting and Governance Authority. It’s seven years this month since the collapse of Carillion, and we are working with the government to make this significant legislation a success.

We’ll continue our close working with CIPFA, which gives those eligible the opportunity to became a dual member of both institutes. Like some of my colleagues I’m proud to have become a CIPFA member and we’ll continue to develop our partnership.

It’s already shaping up to be a busy year and I’m looking forward to meeting more ICAEW students and members. It’s always great to hear how their training has benefitted them and the next generation ACA will continue to prepare members for successful careers in practice and business right around the world.

I wish all students the very best of luck with their studies.

• Alan Vallance, ICAEW Chief Executive

Shaping the profession for a new future

The pace of change over the next five years is expected to be faster than at any time in the last 100 years, leading many to question what the future might look like for the accountancy and finance industry.

Adaptability will be a central theme for 2025. The profession must remain agile if we are to continue delivering value and ethical leadership as change in economic, political and societal landscapes intensifies. We must also make sure we respond to society’s evolving needs and expectations, which is where ICAS’ new programme of activity, ‘Shaping the Profession’, comes to the fore. Throughout 2025 we’ll examine, consider and map out a bright future for accountancy as part of this work.

We expect the UK’s draft Audit and Corporate Governance Reform Bill to be published this year, charting the Government’s direction for years to come. The Bill

Shifting political sands add to public sector pressures

What will 2025 bring for public financial management professionals? The major political shifts of 2024 have led to significant policy developments around governance and local accountability, resource allocation and public service delivery. Public finance practitioners must respond positively as business partners showing leadership and innovation.

The pressures on public services remain critical. Healthcare, social care and education systems continue to face unsustainable increases in demand, with associated costs far outpacing available funding. No government can or should spend its way out of this

should lead to an enhanced and more transparent reporting ecosystem, as it aims to hold board directors accountable for their responsibilities. It will also set plans in motion for a new, long-anticipated regulator.

Sustainability reporting and assurance will remain another key focus, with clarity on UK reporting standards expected in the first half of 2025. The profession’s role in balancing growth with sustainability will be critical, as businesses navigate their transition journeys. Sustainability, along with ethics and technology, will be the prominent themes for the next generation of chartered accountants. With that in mind, all three topics have been embedded in each level of the new ICAS syllabus and learning model, launched in March 2024, as well as featuring in our ‘Shaping the Profession’ activity.

From the ongoing evolution of AI tools to potential breakthroughs in quantum computing, technological advancements will continue to reshape our approach to work. As with all of the challenges and opportunities that will define 2025, the profession’s DNA – rooted in trust and ethical integrity – must continue to guide us all.

• Bruce Cartwright CA, CEO, ICAS

situation, so against this backdrop the need for bold, systemic reforms is clearer than ever. Policymakers must move beyond stopgap measures and embrace transformative strategies that deliver sustainable outcomes for communities.

Devolution is a key element of this approach. Empowering local leaders with the flexibility and resources to make decisions tailored to their areas is essential, but it must be paired with robust frameworks for accountability and sustainability. As CIPFA has highlighted, successful devolution requires transparent funding models, effective local audit systems and simplified structures that reduce systemic inefficiencies while improving responsiveness to local needs.

For finance professionals, 2025 is a year to step up as leaders of change. Balancing immediate fiscal responsibilities with the imperative to drive long-term innovation requires both resilience and adaptability. It means embracing new technologies and leveraging data to deliver better outcomes for communities.

At CIPFA we remain committed to supporting public finance professionals through these transitions. Our 2025 strategic vision focuses on relevance and impact, strengthening partnerships, empowering our community, and driving innovation.

This year also marks CIPFA’s 140th anniversary — a moment to celebrate our legacy while laying the foundations for sustainable growth, especially through our strategic partnership with the ICAEW. Together, we can turn 2025 into a milestone year for progress, collaboration and impactful change in public finance.

• Owen Mapley,

CEO, CIPFA

Onwards and upwards in 2025

I know that you continue to work incredibly hard on attaining your qualification, and on achieving your dreams of a fantastic professional career. We know that it’s a tough journey, but please always remember that the hard work is worthwhile, and accountancy is a brilliant choice for a stimulating, flexible, purposeful and rewarding future.

Last year was a good one for ACCA members and future members. We reached the milestone of a quarter of a million members worldwide across 180 countries. We also celebrated our 120th anniversary.

And there is plenty more to come in 2025 as we continue to support PQ accountants with all the resources, advice and support you need to be successful in our exams and careers. These include our industry-leading Study Hub, our Practice Platform, our bite-size explainer videos, our YouTube channel, improved Student Accountant app, and our ACCA

Navigating the challenges ahead

As we enter 2025, it feels like the world is once again standing at a crossroads, grappling with a mix of challenges and opportunities that will define the global landscape for the next 12 months.

In the world of accounting and finance there are three key trends set to shape the profession in 2025:

• Artificial intelligence (AI): AI continues to revolutionise the accounting and finance profession. From automating routine tasks to providing realtime insights into company performance, AI’s potential for accounting and finance is immense. Accounting and finance professionals who embrace AI and develop their skills will be better equipped to succeed in a digital-led business world and enhance their role as trusted business advisers.

• Value creation: With AI and technology accelerating change, the value delivered to businesses through the finance team via core management accounting competencies will become even more critical. Accounting and finance professionals will be expected to leverage their expertise to optimise resource allocation, manage costs, drive efficiency, deliver transformation and support strategic decision-making in what is likely to be a tough economic environment.

• Sustainability: While sentiment around the world towards ESG is mixed, few argue against creating and delivering value through sustainable business models. For accounting and finance professionals, the pressure remains on how to further integrate non-financial and financial information to support strategic decision-making, drive performance and deliver organisational resilience.

As we enter 2025, our profession once again stands at the forefront of change – from technology to sustainability, continuously enhancing our skill sets will be crucial. By doing so, we not only ensure our continued relevance as management accountants but also position ourselves as key drivers of growth and innovation within our organisations.

Let’s embrace this journey with an open mind, ready to accelerate, lead and inspire.

• Andrew Harding is Chief Executive – Management Accounting at AICPA & CIMA

Careers job site. Our major goal is to ensure that ACCA members and future members are super-employable.

That’s why one of our key aims is to look at how your world is changing. 2025 will bring an even greater focus on sustainability as businesses respond to greater demands from regulators, governments, investors, customers and their own staff. Accountants across the world are already starting to embrace sustainability as a key part of their work, and this will increase further over 2025.

Artificial intelligence will also play a stronger role. The profession has always harnessed technology and new generations of accountants will continue that strength as it looks to use digital technology for maximum benefit, but at the same time manage the ethical risks that arise.

All of this is shaking up the work of accountants, making your work broader, wider and even more important. This will bring you greater choice and opportunities in your future careers, greater purpose in your work, and enable you to play your part in creating a better world.

I’m sure you’ll be reading a lot more about these exciting developments in forthcoming editions of PQ Magazine.

• Helen Brand is Chief Executive of ACCA

What 2025 holds for our changing industry

Accountancy is set for another year marked by big changes, big challenges and, as ever, huge opportunity.

Last year saw a change of government, bringing major policy shifts. Time will tell whether Rachel Reeves’ set of tax changes, netting £36.2bn a year in additional revenue, was worth the pain that’s being felt by small businesses – many struggling to make the numbers add up.

2025 will see accountants, including AAT members, in greater demand. They will be needed to apply their technical expertise, adaptability and communication skills to help businesses grapple with a variety of changes, from technology through to regulatory changes such as those in the Budget.

Accountants need to be able to do more than add up the figures; they need to understand commercial opportunity, interpret data, communicate complex financial concepts and advise on responsible business practices. That’s why ‘power skills’ are central to AAT qualifications –ensuring you’re best prepared to make a difference in the real world.

All of the above will, in the immediate term, exacerbate the pressing challenge that is accountancy’s talent shortage.

Recent Skills England data shows that of all industries, finance and insurance had the highest proportion of jobs (69.4%) that they have analysed as being in serious demand. That’s 944,000 roles. And then there are 41,000 accounting technician positions across the whole economy in critical demand. This means employers can’t find the qualified staff they need, while current accountants have ever-rising workloads.

But help is on its way! To assist the industry in tackling the skills gap, next month we’re launching AAT Careers Hub – a new platform connecting our 118,000-strong member and student community with employers who know that ‘AAT’ means quality.

AAT Careers Hub is the UK’s first accountancy job site that offers a dedicated board for apprenticeship opportunities, creating a superhighway for employers and talent to connect with one another at all stages of your career.

I strongly encourage you to make use of this new service. You can register with AAT Careers Hub at www.jobs.aat.org.uk.

While evolving technology and client needs continue to reshape our industry, AAT remains committed to supporting your journey. Through AAT Careers Hub and our broader charitable initiatives, we’re here to help you seize every opportunity ahead.

• Sarah Beale, AAT CEO

BE COUNTED

It really is time to get those nominations for the PQ awards 2025 sorted!

We need your nominations for the PQ magazine awards 2025, so don’t delay – get the form filled out and whizz it over to us asap.

There will be 20 coveted shiny PQ trophies up for grabs at our 22nd awards night. Remember, our awards could be all about you (yes, you can nominate yourself), or it could be your chance to nominate someone who never gets the plaudits they deserve.

Maybe you know a NQ who really helped you when you got stressed about the exams, or you have a top tutor who picked you up when you

were down. Well, the awards will help to shine a light on them all.

Don’t forget that we are also looking for Accountancy Team of the Year and Training Manager/Mentor

of the Year.

You can download the application form from our website at https:// tinyurl.com/4bdxnzwz. You then have 500 words to make your case.

Once you have got everything together send your entry to awards@pqmagazine.com. The independent judges see all entries before deciding on the shortlist for each category. And if you make the shortlist you will be invited (free) to our fantastic awards night in London.

The deadline for entries is Friday 7 March 2025. So please get nominating!

TOPLEARNERS

AAT student Katie Robinson is the reigning 2024 Distance Learning Student of the Year. Our 2023 winner was Lillian Okolie, who was studying for her ICB exams. Former firefighter Hanni Owens picked up the prize in 2022.

THE 2025 AWARD CATEGORIES

 PQ OF THE YEAR

NQ OF THE YEAR

DISTANCE LEARNING STUDENT OF THE YEAR

ACCOUNTANCY GRADUATE OF THE YEAR

ACCOUNTANCY APPRENTICE OF THE YEAR

STUDENT BODY OF THE YEAR

ACCOUNTANCY BODY OF THE YEAR

ACCOUNTANCY COLLEGE OF THE YEAR – PUBLIC SECTOR

ACCOUNTANCY COLLEGE OF THE YEAR – PRIVATE SECTOR

ONLINE COLLEGE OF THE YEAR

LECTURER OF THE YEAR –PUBLIC SECTOR

LECTURER OF THE YEAR –PRIVATE SECTOR

STUDY RESOURCE OF THE YEAR

ACCOUNTANCY PODCAST OF THE YEAR

INNOVATION IN ACCOUNTANCY

BEST USE OF SOCIAL MEDIA

TRAINING MANAGER/ MENTOR OF THE YEAR

GRADUATE/ APPRENTICESHIP TRAINING PROGRAMME OF THE YEAR

ACCOUNTANCY TEAM OF THE YEAR

ACCOUNTANCY PERSONALITY OF THE YEAR

Katie Robinson

Hanni Owens

Lilian Okolie

Dreams can come true

Meet Tim Mickleburgh, the current PQ Accountancy Graduate of the Year, who made the most of the opportunities university offered him

It was a dream come true when I was accepted onto the BSc Accounting programme at the University of Manchester. I never thought that someone from my background would be able to go to university, let alone to one of the highest ranked universities in the country.

I grew up as a young carer – from the age of six – and came from a family where no one had been to university before. I doubted whether someone like me could succeed in higher education and feared that I wouldn’t be as good as my peers.

I was so grateful to be at such a prestigious university and sought to make the most of the opportunities that came with this. Little did I know that my three years at university would end up being such a life changing experience. I worked really hard with my accounting studies and I was so proud when I graduated with a first-class degree. I loved every second of my time at university and found myself falling in love with academia, so much so that I dream of becoming a university lecturer in the future.

Last year I was one of three students around

the country to be shortlisted by PQ magazine for the Accountancy Graduate of the Year award. It was a huge surprise when I heard my name get announced as the winner at the ceremony.

At the awards, PQ magazine editor Graham Hambly said: “Our judges loved Tim’s motivation and the simple fact that he loves learning, too. I wouldn’t be surprised if one day he’s back on the shortlist for Lecturer of the Year.”

Jennifer Rose, Senior Lecturer at the University of Manchester, added: “Tim is an awesome example of the difference university can make. He made the most of every opportunity that came along and the way he developed as an undergraduate was remarkable. He was transformed from a shy teenager to a highly competent professional upon graduation and continues to inspire accounting undergraduates, enabling them to also flourish.”

And Reimala Sivalingam, Senior Lecturer at the University of Manchester, said: “Tim has supported many students by sharing his knowledge and experience to help them succeed academically and boost their career prospects. His enthusiasm as an undergraduate of the University of Manchester and continued support as an alumnus has truly made a difference in enhancing other students’ lives at university and beyond.”

Since becoming PQ’s Accountancy Graduate of the Year I’ve been gaining professional experience and advancing my accounting studies to become a CIMA management accountant. I will treasure my shiny PQ trophy forever, and whenever I look at it I am reminded of how much of a life-changing experience university was for me.

I hope that my success inspires other young people from disadvantaged backgrounds and shows that you can achieve anything you want if you have a passion for what you do and you work really hard at it.

Options exams: decisions, decisions…

At Strategic Professional, PQs get to decide what areas they’d like to specialise in. Lisa Gilmore offers guidance on what to consider when choosing the two Options exams to take

According to a recent Harvard Business Review, an average adult makes around 35,000 decisions a day. Thankfully, we spare our brain a constant workout by making the vast bulk of these decisions intuitively. However, for more complex decisions with longer and more impactful consequences we need to take a more considered approach. Like when it comes to selecting your Options exams.

Your future career

The Options exams give you the opportunity to advance your knowledge and skills in areas of greatest relevance to your desired career path. Your future career plans should therefore be part of your decision-making. To help, let’s look at the exams and some of the career paths these are linked to: Advanced Financial Management (AFM): In AFM you will learn the strategic and financial management skills that are highly valued by employers, particularly those specialising in corporate finance including, for example, investment banks, private equity firms and corporate finance advisories.

AFM provides the basis for a career in corporate finance or treasury, whether it involves financial modelling based on advanced valuation techniques, preparing for and/or advising on a merger or acquisition, or developing the advanced risk management strategies that can empower companies in an increasingly complex business environment.

Advanced Performance Management (APM): APM focuses on performance management and decision-making within organisations and would suit those who are considering a career where they want to play a central role in the decisionmaking and future direction of an organisation.

Whether profit-seeking, or not-for-profit, all organisations need to measure and manage their performance to ensure that they are working towards achieving their strategic objectives. APM covers how organisations set, monitor and report on performance targets to drive performance and influence behaviour. It also focuses on how organisations use technology and leverage data driven insights.

This exam gives you a real understanding of how management accountants play a leading role in creating and sustaining value for organisations.

Advanced Taxation (ATX-UK): Studying ATX-UK will provide an excellent foundation for those wishing to embark on a varied and rewarding career in tax.

Skilled tax professionals are in high demand because of the complexity of tax rules and legislation, both nationally and internationally. Building on your technical capabilities in respect of the major UK taxes, studying ATX-UK will develop your professional skills to provide trusted advice to companies and individuals on the impact of tax on their financial decisions.

ATX-UK is also a great option even if you

do not see yourself working in a tax specific role, providing you with the ability to speak knowledgeably to clients and colleagues around the tax costs of business decisions. This knowledge can also be invaluable to help you understand your own tax position and how tax can impact your future plans – whether continuing in accounting, branching out into finance or even setting up your own business. Advanced Audit and Assurance (AAA): AAA is essential for those who work, or who plan to work, in audit and practice. You will develop the skills to ‘stand back and see the bigger picture’, by analysing the information and applying your knowledge of audit and financial reporting to form practical conclusions. AAA is a narrative based exam, allowing you to display communication skills by planning and writing professional responses to issues.

Key to the exam is the demonstration of professional scepticism and judgement, which is necessary for accountants in both practice and industry.

Existing knowledge and expertise

However, there’s more to consider than just your future career plans. If there is a subject you find particularly hard you may be wiser to choose a different Options exam subject that better suits your ability. Our research has found that you have a better chance of success in the Options exams if you have really got to grips with the fundamental concepts covered in the underpinning Applied Skills exam. Meanwhile, you may perform better if you have gained work experience relevant to the Options exams you are taking.

And finally…

If you’re struggling to decide, or change career plans in future, you can always take additional Options exams after you have qualified as part of your continuing professional development.

• Lisa Gilmore, Head of ACCA Qualification (Content and Development)

AccelerAATe: Why AAT’s Annual Student Conference is your launchpad to success

When: 29-31 January 2025

Where: Online

Price: Free to AAT students (but you need to register)

Attention all AAT students and aspiring accounting professionals! As you delve deeper into your studies, the horizon is filled with both exhilarating possibilities and daunting challenges.

But here's the good news: help is on the way! Register now for AccelerAATe – AAT’s Annual Student Conference – taking place from 29-31 January 2025. Best of all? It’s absolutely free for AAT students – but you need to register to secure your place.

This award-winning virtual event will empower you with the tools and insights needed for navigating your academic and career journey. If you're still on the fence, here are five compelling reasons why you can’t afford to miss this opportunity:

1Get prepared: The conference features dedicated exam preparation sessions by learning experts. You’ll gain invaluable insights into exam techniques and learn about stress management strategies, ensuring you feel fully equipped to tackle any assessment format,

whether physical or remotely invigilated.

2

Get support: A solid study plan is key to success and at AccelerAATe we’ll show you how to leverage AAT’s vast resources. From practice assessments to tailored e-learning opportunities, our sessions will give you effective strategies to maximise your study potential and stay on track.

3

Get paid: Elevate your employability with insights into the recruitment landscape of accounting. Learn how to craft a compelling CV, master critical interview techniques, and identify the essential skills that employers are

looking for. This knowledge is vital for standing out in a competitive job market and securing that dream role.

4

Get connected: Networking is crucial for career growth. Attending AccelerAATe will connect you with fellow students and industry professionals, creating relationships that can open doors in your career.

5

Get inspired: What can you achieve with your AAT qualification? Engage with past AAT students who have excelled in their careers and are eager to share their experiences. Their journeys will inspire you and help you envision the possibilities in your career path.

The bottom line (yes, we do accountancy puns here):

• Save the date: Gear up for an impactful experience, January 29-31 2025 – your accounting career deserves it!

• Connect and grow: Engage with others and enhance your skills – don’t miss the biggest event in the AAT student calendar all from the comfort of your home.

• Take action now: Register today at aat.org.uk/ accelerate2025 and take the first step towards a brighter future in accounting.

Proven to boost your exam results

Study Hub is proving to be a great success for ACCA students, increasing exam results by as much as 18%*. With online access to study chapters, practice questions, flashcards and short quizzes, it streamlines revision and enhances your understanding.

Use Study Hub as an essential part of your exam prep and boost your chances of success.

*Based on pass rates of Study Hub users vs. non-users for the September 2023 session-based exams.

I get knocked down, but I get up again…

Nasheen Wuisman explains how you can bounce back from exam failure

Do you remember learning to ride a bicycle? I bet you fell off! Once? Twice? More? Personally, it took me ages to learn. More than the experience itself, I remember the emotions. I remember feeling frustrated and defeated, angry and fearful. I felt like I was getting somewhere, but then there were barriers that I couldn’t seem to get past while all my friends were shooting past me. It was hard work, so emotional, but I carried on. We have all been there, almost ready to give up. Yet we insisted on putting ourselves through the experience, and carried on… but why? We did it because it mattered, because of what was at stake. We did it to feel the freedom and show ourselves and our loved ones we could do it. As we get older the emotions get deeper, the fear grows, there is more at stake, life is really hard work.

You have been working so hard in your CGMA journey. The efforts you put into your last exam over the past few months may not have paid off. And now you find yourself feeling like a failure, and like you’ve let down the people who care.

Failure or learning experience?

Studying hard for an exam and then being

unsuccessful leads to the same emotions we felt when learning to pedal and balance all at the same time.

You do need to go through the emotions that follow; it’s important to allow yourself to grieve, because you’ve worked so hard. But after that it’s crucial to see past the defeat and realise that you haven’t failed at anything – you’ve learned.

The emotions and obstacles are part of the journey – no two journeys are the same. Failing an exam is part of your learning journey; success will be yours, just not yet.

What have you learned? For starters, you’ve learned not to take anything for granted. You’ll have learned to be more resilient and how to be better prepared to face future challenges in your life. You’ll also learn something about yourself as a person, and what you choose to do next makes all the difference.

Reflect and learn

After an unsuccessful exam attempt it’s important to understand where things went wrong. Being honest with yourself is vital. Could it have been due to a lack of preparation, misunderstanding the questions or perhaps exam-day pressure? Work on identifying the

possible cause so that you can effectively address it and help you succeed on your next attempt. What worked well for you in the exam? What would you do differently next time?

For Objective Tests, your performance in each content area and whether you received a grade of either ‘proficient’ or ‘not proficient’ will give you an indication of the areas you need to improve on and what you performed well in.

For Case Study exams, review feedback received for the performance descriptors for each core activity as outlined in the exam blueprints. This will help highlight areas that you need to study or practice further, plus those skills you can capitalise on. Don’t just focus on the areas that you didn’t do well in, appreciate your efforts in the areas you did well in, too.

Schedule your exam

It may seem counterintuitive, but scheduling your next exam is an excellent strategy to help you come up with a new plan of action. Having an end date in mind while you revise and keeping a positive mindset can improve your focus and ability to retain information. Take time to carefully assess how many weeks you will need to prepare to re-sit your exam, then book it two to three weeks beyond that.

Be fair about how much time you can dedicate to studying, and block out consistent, focused study time each day, even if that time is brief. Creating a plan with a realistic timeframe will prevent you from feeling overwhelmed and maintain a healthy balance. Remember, the quality of study is often more important than quantity.

Practice makes perfect

Practice is the best way of ensuring that you’re well prepared for, and know what to expect, when you sit your CGMA exams.

You know what your learning outcomes are from the Case Study blueprint, this is what is expected of you. Now it’s time to sit mock exams so you can truly apply your skills, both old and revised, and become further aware as to what needs to be improved or learned before the big day. This will also help refine your exam technique and time management skills.

Get ready for exam day

Exam day will be here before you know it. Whether you’re taking your exam online or at a test centre, make sure that you know what the procedure is.

Some candidates think that sacrificing sleep for study time is a must the night before their exam. Yet studies show that getting enough sleep allows you to better consolidate and retain information, decreasing the risk of a mental block on the day. In the days leading up to the exam, focus on nutrition and hydration to keep your energy levels up, too.

Remember, failing an exam is nothing more than a sign that your journey isn’t yet complete. Your success isn’t ready for you yet and with the right approach and mindset you’ll more than deserve it when you get it!

• Nasheen Wuisman, Senior Manager – Global Academic Progression at AICPA & CIMA, together as the Association of International Certified Professional Accountants

How will the world change for accountants?

Sunny Yang looks to the future and outlines the challenges that face accountants, including artificial intelligence

As the sun rises on a fresh calendar year, the accounting world stands poised at the threshold of transformation. With technological advancements accelerating, regulations evolving and global markets reshaping traditional practices, the profession faces both unprecedented challenges and remarkable opportunities.

Two years ago, I had the privilege of writing an article for The Accountant magazine titled ‘How accountants can change the world’. Fast forward to the post-apocalyptic, post-Covid and post work-from-home era of 2025, the question has flipped. ‘How will the world change for accountants?’ is the new question in everyone’s mind as the rise of artificial intelligence (AI) looms large over the profession, raising concerns about whether accountants might be replaced in the near future.

In a recent interview hosted by The Chartered Accountant Student Society of London (CASSL), Malcolm Bacchus, President of the ICAEW, addressed these concerns head-on. He recalled that there have been similar recurring fears in the past – from the advent of the internet to the widespread adoption of Excel and blockchain – which also led to predictions of oblivion for

the accountancy profession. Yet, he pointed out, history has shown that such tools have consistently been integrated into the profession, ultimately making it more efficient and resilient. Bacchus believes AI will follow this pattern, streamlining administrative tasks and empowering accountants to focus on highervalue responsibilities such as stewardship, ethics, sustainability and governance. As he aptly put it: “There are so many things to account for on top of just money.”

For me, the integration of AI into accounting is best captured by an analogy from Douglas Adams’ ‘The Hitchhiker's Guide to the Galaxy’. In the story, scientists asked a supercomputer

YOUR WELLBEING HUB

to calculate the Ultimate Question of Life, the Universe and Everything. After 7.5 million years, the computer delivers its answer: ‘42’. This naturally disappoints the scientists, as they find the answer unhelpful.

The allegory behind the answer of 42 is widely debated amongst sci-fi fans but my take is that even with the most advanced technology, success lies in asking the right questions or understanding the background and complexity behind the questions that we ask. Likewise, whilst the AI of today may seem to have all the answers it will be up to accountants, consultants and advisors to determine the ‘right’ answers. After all, accounting is both an art and a science. While AI might revolutionise the mechanics of our work, it cannot replicate the judgment, ethics and strategic insight that define the profession.

• Sunny Yang, Ex-CASSL chair, ISC & ASDAC director

CASSL’s upcoming events

Mid-Winter Social at The Banker – 24 January 2025 (open to all)

CASSL Ball – 1 March 2025 (open to all) More ticket details on social media: Instagram: cassl_icaew; LinkedIn: The Chartered Accountant Student Society of London (CASSL)

How to pass SBL part 7

Chris Cain has some recommendations on how to tackle a section of this exam that regularly trips up sitters

Some candidates had major problems with one of the tasks in the SBL December 2024 examination because they did not understand the wording of the Task.

These problems might be overcome by implementing the following recommendations.

Firstly, know the ACCA Syllabus and Study Guide.

The following is taken from the SBL, Syllabus and Study Guide, September 2024 to June 2025, page 11:

D Risk

1. Identification, assessment and measurement of risk

a) Discuss the relationship between organisational strategy and risk management strategy.

b) Apply the enterprise risk management (ERM) approach to risk management and for establishing risk management systems.

The reason for reading the study guide is to identify the way in which Tasks are likely to be worded or could be worded.

In relation to D1b) above, the COSO framework, as an example of an ERM is not mentioned or listed. This means that the COSO framework may not be mentioned in the Task in the exam.

Secondly, you must read the SBL Technical Articles on the ACCA website. In our illustration, the relevant article to read is called ‘COSO’s enterprise risk management framework’.

This SBL technical article explains in depth, the COSO framework as an example of an ERM.

to be useful as it continues to provide a framework for improving risk management and internal control”.

This tells us that the examiners also see the COSO framework (ERM) as an internal control management system.

You must, therefore, be prepared for a Task that does not name the COSO framework and/or the words ‘enterprise risk management’.

This is because the wording of the study guide allows the examiners to ask candidates to analyse the elements of an internal management control system.

Thirdly, note any changes to the Study Guide from each September (in SBL).

It is imperative that candidates are also aware of any changes to the syllabus and study guide because the materials being used to learn, including videos, may either be out of date and/or may not cover newly introduced elements.

For example, the following is from the SBL Syllabus and Study Guide, September 2023 to June 2024 (page 22) and represent changes from the September 2022 to June 2023 Syllabus and Study Guide (note that more changes are on page 22 in the original document than listed below).

Any candidates failing an SBL June exam, and intending to re-sit within the next four diets, should note that there may be some changes to the syllabus and study guide. They must, therefore, study the new syllabus elements.

The SBL syllabus has not, however, changes since June 2023.

In summary:

1. understand the wording of the syllabus and study guide’ 2. read the technical articles; and 3. ensure that you will not be negatively impacted by any syllabus changes.

• Chris Cain is an approved trainer with PwC Academy

‘You scumbag! You maggot!’

Martin Jones highlights the ethical dimension of the ACCA qualification by focusing on the Strategic Business Reporting exam

I’m quite sure that you were glad to hear the last of the Christmas tunes as you pulled down your decorations after new year. But be honest, there is one Christmas cracker that you miss. The Fairytale of New York has become a Christmas standard and everybody loves to shout “You scumbag! You maggot!” at the top of their voices when those immortal lines of Sean McGowen come dancing across the airwaves. “But what, pray, does this have to do with ACCA SBR?” I hear you ask.

There are five ethical principles that guide behaviour and guide the examining team when assessing the ethics of question 2 in the SBR exam. They can be listed with the mnemonic PICCO as follows:

Professionalism: the avoidance of disrepute

Integrity: honesty

Competence: knowledge

Confidentiality: keeping secrets

Objectivity: independence

Undoubtedly the place to start any ethical analysis is with the pairing of integrity and competence. The question 2 set up is essentially always the same. The boss has drafted financial statements with a bunch of cock ups; ‘errors’, as the phrase goes. In the first part of your answer you identify those errors and explain how to correct those errors. But in the second part of your answer you then go on to analyse why those errors occurred. It is this second part of the answer that makes question 2 different from the other three questions. It is this second part that makes the ethics question ethical.

And there are only two possibilities. Either the errors were deliberate or they were accidental. Either the boss made the errors because he is an idiot and does not know financial reporting. Or the boss is a scumbag and cleverly manipulated the rules to present the picture he wants to paint. And, of course, you have guessed from the title above that

the boss is almost always a scumbag who has played with the standards to paint his picture in the manipulated financial statements. And you are going to call him a scumbag – by using the phrase: “The boss has questionable integrity.” This phrase rings loud and clear that you know the guy is a scumbag, but the phrase is wrapped up in the packaging of professionalism.

Frequently, the boss is primarily a scumbag but also has elements of idiocy, and you are going to call him and idiot. But, again, you are going to wrap up the words in professionalism and accuse the boss of ‘questionable competence’.

Here is an example from the magnificent ‘Fiskerton’ question in SBR Practice Exam 2. I show the relevant extracts from the exhibits and then a possible answer.

Extract

“The managing director has argued that fair values should be referenced to an active market and is refusing to adjust the financial statements, even though he knows it is contrary to international accounting standards.”

Requirement

(c) Explain any ethical issues which may arise for the managing director and the accountant from each of the scenarios.

Answer

Integrity: The scenario tells us that he has used fair values that he knows are ‘contrary to international accounting standards’. Therefore the director appears to have questionable integrity.

And here is the rest of my answer to question Fiskerton. You will need to navigate to the ACCA SBR webpages to access the question in the practice exam.

Competence: The MD is an MD and not an FD and so may not be qualified. So it is possible that the MD lacks competence in financial reporting.

Objectivity: The MD appears to have manipulated the FS to keep on the right side of the loan covenant. The loan covenant appears to have undermined the MD objectivity.

Professionalism: The scenario also tells us that the MD “has persuaded the accountant to include the deposit and a percentage of the remaining balance of construction work in revenue to date”. This is evidence of workplace bullying and shows a lack of professionalism.

Action 1 – MD: First, the accountant should try to persuade the MD to change the FS to fit with IFRS. Perhaps the MD simply does not understand IFRS.

Action 2 – ACCA: The accountant might consider getting advice from the ACCA. This is a difficult scenario and the ACCA might be able to advise upon a course of action.

Action 3 – leave: This appears to be a toxic environment. The accountant should consider looking for a new job.

• Martin Jones is a lecturer at the London School of Business & Finance

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Eliminate those errors

Karen Groves asks: is the supplier’s statement of account received correct, or does it contain errors?

During your studies for AAT Level 2, you might be asked to check a supplier statement of account received to their payable’s ledger account for accuracy. This can sometimes cause confusion as students do not know how to approach this task.

Why do we need to do this?

It is important to ensure there are no errors, and that we are only paying the correct amounts to suppliers. For example, if the supplier has duplicated an invoice in their system we will end up overpaying, unless we check the statement of account received by the supplier. We will now look at an example:

Example

We have received the following statement from Lucky’s Pet Food Supplies, which now needs to be checked to the payable’s ledger account for accuracy, prior to making payment:

STATEMENT OF ACCOUNT

To: Callie’s Pet Centre

Our terms are 30 days net, however if payment is made within 14 days, a prompt payment discount of 5% can be taken.

We will now work through step by step matching the items to check for accuracy:

1. Invoice 2546 for £384.60 matches in both

2. Invoice number 2551 is showing on the statement of account as £384.52, whereas in the payables ledger the amount is £344.52

3. Invoice 2562 for £260.00 matches in both

4. Credit Note CN 121 matches in both

5. Payment for £314.87 matches in both

6. Discount for £19.23 matches in both

7. Invoice number 2605 is showing on the statement of account as £320.00, whereas in the payables ledger the amount is £230.00

What to do next?

The purchase invoice 2551 should be located to check if the amount should be £384.52 or £344.52.

The purchase invoice 2605 should also be located to check if the amount should be £320.00 or £230.00.

If the supplier’s statement of account is incorrect, then you will need to call them to politely explain the discrepancy and request they update their records.

If the error is in our payable’s ledger, then we need to update our records to ensure they are correct.

• Karen Groves is an AAT tutor and AAT Faculty Director at e-Careers

FA24: change is afoot…

Nick Craggs explains the Finance Act changes you need to know about – because you’ll be examined on them

Students studying AAT level 3 and most students studying AAT level 4 should be aware that the Finance Act assessed by the AAT changes on Monday 27 January. Until that date it will be the FA23 Finance Act; after that it will be the FA24 Finance Act.

There are currently practice assessments on the AAT learning portal for both Finance Acts, so be careful you are using the right one for the assessment you are sitting!

Every year there are students who have studied one Finance Act, but for a variety of reasons they need to sit their exam on the new Finance Act. This can be because life got in the way, or they need a resit, but the one question that always crops up is “do I need a new book?” Being a farmer’s son from Yorkshire makes me about as tight as can be when it comes to money, but sometimes I do think that trying to attempt a tax exam with an out-of-date tax book is a false economy. I will leave the decision up to you, but I do think that to help you make the decision it might be useful to explain what has changed in each of the three tax units.

Starting at level 3, we have the Tax Processes For Businesses unit. This is the tax unit where the least has changed. The VAT turnover threshold for both registration and deregistration have increased. However, both

these figures are in the reference material anyway, so I tell students to not learn these and just look them up. Similarly, the fuel scale charges have changed as well. However, I would be impressed if a student could memorise all of these. Again, you just need to know how they work and look them up in the reference material. Other than a few changes in the wording of the reference material for clarity, the deadlines for PAYE settlement agreement and PAYE and Class 1b have been removed.

Personal Tax at level 4 is another one where very little has changed. No new concepts have been introduced and, again, any assessable changes are included in the reference materials. However, the changes that have been introduced are things that students do tend to remember, so you need to be conscious of these. The dividend allowance has now halved to £500 and the Class 1 Primary NI rate between £12,570 and £50,270 has fallen from 12% to 8%. Finally, the annual exempt amount for capital gains has also halved to £3,000.

Business Tax is the unit where there have been the most changes this year. New content has been added as well as changes to various rates. Students now need to know that the cash basis is the default basis for adjusting profit and losses for tax purposes. They need to know

you can elect to use the accruals basis and the difference between that and the cash basis.

In another addition, students need to be aware that the examiner now prefers students to claim the maximum AIA before they start to use full expensing in relation to capital allowances.

Then there are the expected rate changes; the Class 1 Primary NI change mentioned above is also in Personal Tax. The corresponding Class 4 NI rate has fallen from 9% to 6%, and Class 2 NI is no longer assessable.

Then there is also the same reduction in the capital gains annual exemption reduction to £3,000 that is also in Personal Tax.

The biggest change is the change to basis periods. I used to LOVE basis periods (I was very much in the minority here). However, the rules have changed drastically. Now taxpayers are assessed on the profit they make in the tax year, no matter what accounting period it relates to. This is quite a complicated subject to explain here, I just want to make you aware of it. You can, however, find a more detailed explanation of this at https://tinyurl.com/5yd3usd8

Remember, FA23 is examinable until 27 January and then from that date ALL tax exams will be based on FA24. There is no crossover. The format and the length of the exams haven’t changed, just some of the content. It is up to you if you feel you want to purchase up-to-date material, but a new tax book is always going to be cheaper than even a single resit.

• Nick Craggs, AAT distance learning director, First Intuition

Avoid this common SCS mistake

Eliminating a (fairly) basic error that’s sadly made by numerous students will help you on the road to a pass, says Hugh Martin

One of the most common errors that students can make in the Strategic Case Study (SCS) is so costly that it can lead to a fail result, even if you are well prepared, have extensive technical knowledge and watched or attended countless hours of lessons.

What is this mistake, you may ask?

Well, it is simply not answering the question that has been asked, easily the most common error made in the SCS exam. I’ve marked countless mock papers where high-performing students have answered a question completely different from the one being asked, thus making it nearly impossible to allocate significant marks to them, despite the answer being well written.

You don’t need to take my word for it. In the May 24-August 2024 examiner’s report, it is noted that “the key to achieving a passing mark or better is to answer the question as set… failure to do so is one of the main reasons candidates fail the case study”.

This mistake likely arises for two reasons. The first comes from the fact that the exam scenario and question are on one page, and the answer box is on another. Students often tell me that they forget the question as they start writing,

and so their answer gradually drifts away from the question being asked.

The second comes from the fact that students sometimes prefer to write about what they know rather than what has been asked. For example, sometimes you will see models being applied by students that are totally irrelevant to

the scenario and question, simply because the student has pre-learned these.

I have three practical solutions to this issue that my students use to improve their scores.

The first involves creating an answer plan when attempting each subtask. Answer planning involves placing a heading at the top of the answer box and a series of keywords underneath, each representing a paragraph you will be writing in your answer. This approach helps to prevent duplication and acts as a prompt to write relevant material.

The next solution involves practising questions extensively before you sit for the real exam. If you are exposed to a large number of questions and answers you’ll be better equipped to understand the type of answer you should be giving if something similar comes up in the real exam.

My final one is to read over each subtask several times and really ensure you understand it before writing your answer plan. This sounds obvious, but under exam pressure we can sometimes forget to carry out simple actions that will increase the quality of our answers.

Hopefully, you will find these solutions helpful for the upcoming February exam.

• Hugh Martin is the founder of Procountancy and is an experienced CIMA Case Study tutor. He is a former CIMA prize-winner

How to master the art of networking

Establishing connections is the gateway to building your brand and getting noticed in your career

Networking plays a significant role in career progression. From engaging with professional bodies and attending industry events to creating a social media presence, effective networking is crucial in opening the door to opportunity for PQ accountants.

Networking plays a crucial part of the job search process – but also goes well beyond just landing a job. It plays an important role for accounting professionals at every level, in staying updated on evolving standards and industry trends.

As the number of skilled accounting professionals increases, having the right qualifications and technical abilities may not be enough to secure your ideal job. Building a career often hinges on your connections. To expand your network you should engage with influential figures in your field who can bring you closer to that dream firm or desired client.

In addition, today’s business leaders seek more than just financial expertise from their accounting professionals. They aim to bring on board specialists who exhibit strong communication abilities, keen intuition and a dedication to ongoing learning and development.

While a great deal of networking and

communication is done online and via email, many leading finance professionals and recruitment specialists unanimously believe that being skilled at face-to-face networking is crucial for reaping the greatest rewards in your career.

Attending events solo can be a bit intimidating, but it’s about embracing discomfort and stepping outside your ‘safe’ zone. Starting conversations about your skills with interested individuals or industry leaders can create new opportunities – it’s a case of much to gain and little to lose. Pushing yourself beyond familiar boundaries also promotes personal growth, in the same way that expressing opinions nurtures confidence.

It’s always best to view networking as an

ongoing process of building relationships rather than something to do only when necessary, so start by building relationships and establishing your network as early as possible.

Remember, too, that when it comes to networking it’s more about quality rather than quantity. While it might be appealing for those who are more outgoing to engage with as many people as they can, it’s far more beneficial to concentrate on just two or three individuals. Building a strong connection with them can leave a lasting impact and potentially advance your career significantly.

Tips to network effectively

• Read accounting publications.

• Follow thought leaders on social media.

• Join online forums and discussions.

• Attend specific conferences and meet-ups related to your audience’s needs.

• Follow up after events.

• Leverage LinkedIn to connect with influencers who interact with your audience.

Interested in growing your network? The IFA’s 2025 UK Regional Networking Meetings are free to attend and count towards CPD. Dates and locations are available here

• Thanks to the IFA for this article

CV and cover letter AI red flags

Nicoli Westwood says there are certain words you shouldn’t use in your CV if you are getting help from AI

Many job seekers are turning to AI to help them tailor their CVs and cover letters. However, linguistic expert Nicoli Westwood from WordDB says you should ‘beware’ the tell-tail signs of AI-generated text.

Westwood explained: “While AI platforms like ChatGPT and Microsoft’s Copilot might seem great at generating human-like text, they tend to overuse certain words and phrases.

“If you're not familiar with AI-generated text these words might look normal, but they can be a dead giveaway for those who know what to look for. Recruiters can spot these words a mile away and may immediately reject your application if they suspect AI usage.”

Here are the words she says you need to avoid:

• Delve: This word is used by AI tools to mean ‘to explore’ or ‘to investigate’. Its overuse by Large Language Models (LLMs) like ChatGPT makes it a red flag for AI-generated content. For example: “I delved into the client’s

needs for this project and developed a comprehensive solution.”

• Foster: Similar to delve, AI platforms frequently use this word to mean ‘to encourage’ or ‘to promote’. Some examples might include phrases like ‘fostering innovation’ or ‘fostering collaboration’. Human writers use this word sparingly, so its appearance in your CV can be a sign of AI-generated content.

• Streamline: This is another popular choice for AI tools. It’s typically used in more formal content to describe processes that have been optimised for efficiency. AI loves to overuse this word and it can include it in a way that sounds robotic and out of context – which makes sense if the text is written by a robot.

• Beacon: If your CV or cover letter includes phrases like ‘beacon of creativity’ or ‘beacon of knowledge’ then recruiters are likely to run a mile. This word is a favourite of AI

platforms, but it’s not something people use that frequently in conversation or writing.

• Testament: AI tools tend to use overly grandiose language, which is why words like ‘testament’ are frequently seen. For example: “This was a testament to my dedication and hard work.” While there’s nothing wrong with this word, its frequency in AI-generated content makes it a red flag for authenticity.

• Underscore: Underscore is another AI favourite. For example: “My experience in customer service underscores my ability to manage client relationships effectively.” It’s usually used to emphasise a point or idea, but it’s slightly grandiose for everyday writing— something AI doesn't understand yet.

• Facilitate: Similar to ‘streamline’, this is another popular word used by AI when it wants to say ‘to make easier’ or ‘to assist’. It’s not an uncommon word, so it doesn’t necessarily mean it’s written by AI, but it can be a red flag for recruiters.

As Westwood says, these words aren’t inherently bad, but they can signal AI involvement to recruiters who know these tools. You need to review your CV and cover letter carefully to make sure the language feels natural and appropriate for the job you are applying for.

Beyond word choice, Westwood notes other signs of AI-generated text that job seekers should be aware of. She said: “AI often relies on formulaic structures, such as ‘by doing X, I achieved Y’, or phrases that end with a moral reminder, like ‘it’s important to remember that…’. These can make your application immediately jump out as AI.”

Another key giveaway is spelling. “AI tools often default to American spelling, which can be a clear indicator on a British CV. Make sure to double-check that your application uses British spelling conventions to avoid this mistake,” Westwood advises.

So why does AI tend to overuse certain words and phrases? She said: “AI models are trained on massive datasets, which include a wide range of texts from books, articles and websites. These models learn to predict which words are most likely to follow one another based on the patterns found in this data.

“This often means that AI will use predictable words and phrases because they are simply ‘predicting’ the most likely word to follow. This can make AI-generated content quite recognisable for anyone who has worked with these tools.”

• Nicoli Westwood works for WordDB. To find out more go to http://worddb.com

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Dear Karen

Ask PQ’s very own agony aunt Karen Young when you need advice from a real expert. Email your dilemma to graham@ pqmagazine.com, and he will pass on the best ones to Karen

THE DILEMMA

I’m starting my first role and am nervous about taking part in meetings. What meeting do’s and don’ts should I be aware of?

KAREN’S RESPONSE

Meeting anxiety is common, but the more meetings you have as you settle into the role the more confident you will become.

To minimise stress always try to be on time. Being punctual not only shows a level of respect, but also means you can enter the meeting composed and ensures you don’t miss any key points made at the start.

Not all meetings require formal preparation work beforehand but make sure you’re organised and well equipped for those that do. Take notes to digest what is being said so you can properly reflect on the key takeaways afterwards. Most importantly, take note of the key action points, particularly if your name is against them!

When joining a meeting online have your camera on to show you’re engaged in the conversation. It demonstrates respect for the host and creates a more personable and interactive environment. Avoid distractions like your phone or multi-tasking that take your attention away. If you’re trying to focus on too many things at once you’re less likely to benefit from the meeting itself.

Actively listen and ask questions. Speaking during meetings might seem daunting at first, but the more you do it the more natural it will become, and your self-belief will grow. Consider your body language, as this is an important non-nerval way of communicating your interest and professionalism.

• Karen Young is a director at Hays. She is passionate about helping people to find the right job and companies the right person

Investors reject trade-off between staff and AI

2025 is the year that GenAI delivers productivity, revenue and profitability gains

The pressure is on for companies to turn AI investment into impact this year, according to PwC’s 2024 Global Investor Survey

Some 73% of investors say companies should deploy AI solutions at scale, as overwhelmingly 66% expect the companies they invest in to deliver productivity increases from AI over the next 12 months. And, with this deployment, companies are also expecting revenue increases of 63%, and similar increases in profitability (62%).

The survey found that investors see technology as the most

In brief

Where are the sustainability targets?

Fewer than half (43%) of UK midsized businesses have sustainability targets in place, according to data from the Grant Thornton International Business Report.

However, while many of the UK businesses surveyed have still not implemented core steps on their sustainability journey, they are outperforming the global average in several areas including:

• 60% have implemented a sustainability strategy (51% globally).

• 46% have implemented sustainability reporting (40% globally).

• 28% have implemented a sustainability policy (25% globally).

significant driver of change for the businesses they invest in (71%), ahead of government regulation (64%), changes in customer preference (61%) and supply chain instability (60%).

Interestingly, investors are also not seeing a trade-off between AI and workers – with 74% of respondents urging the

Three-quarters of the businesses surveyed, both in the UK and globally, agreed that the need to navigate and understand the sustainability requirements of different jurisdictions is a barrier to international business expansion.

Help is at hand

CIMA’s mentoring programme is now open worldwide to both CIMA members and CGMA candidates (exams completed). The next intake to the programme is happening as we write, but there is still time to sign up.

As CIMA says this is a real chance to cultivate a collaborative relationship, providing a platform for continuous learning and growth with fellow members.

Find out more at https://tinyurl.com/44kdj65r

businesses they invest in or cover to invest in upskilling their workforce. Some 32% expect AI to lead to headcount increases of 5% or more – on par with the proportion who expect little to no change in headcount (31%).

Wes Bricker, Global Assurance Leader, PwC US, said: “Investors expect to see real outcomes from GenAI over the next year and recognise that achieving this will take investment in people and upskilling, as well as technology. Management can expect scrutiny on how they deliver AI productivity gains and support for an approach that extends beyond the tech itself to reinvent the way businesses operate.”

Watch out for Hansel!

Hansel, a new start-up, is offering a unique candidate-centric focused approach to accountancy career planning. This free service promises to put you in charge of your career, making sure each job move aligns with your goals, values and needs.

By mapping out the career journeys of thousands of people, Hansel uses data to help determine the specific moves you need to make in order to become a CFO. Ultimately, it will also offer personalised career planning. It is also promising to have the only jobs board that has every London accountancy vacancy on it.

Check out more at: https://www.hansel.group

The PQ Book Club: books you should read

Caitlin Krause (Wiley, £24)

The author starts her book by asking a simple question: “What’s digital wellbeing, truly?” She explains that digital is not going away, and we just can’t escape it. Consequently, she feels we must rise to a different plane, a new way of being, thinking and exchanging with others.

She wants you to think mindset before skillset, and her aim is to give you ideas about how to stay well in this new age.

But before all that she provides an understanding of what wellbeing really means, so you can apply it in the context

of your life.

Krause makes the valid point that creating connections and belonging online has to be better than loneliness; after all, we are social animals.

I’m more worried about AI replacing real human contact than her, it seems – my concern is that people will retreat into a fantasy AI world and never come out! She does try to address our current 3D world too, when we are all together. Even after a day on our work computers we then spend time scrolling on our smartphones!

Like Sherry Turkle in her TEDx Talk, I think we can be connected but still be alone.

For Krause, technology is not to blame, but she admits humans do need to pay more attention to each other. Surely that means the technology sometimes must be turned off.

PQ rating: 4/5 You have to praise Krause’s call for empowering connection with wonder and imagination, but I worry that in reality we are becoming more disconnected and lonelier.

• Reviewer: Graham Hambly

Digital Wellbeing by

Checkmate for tax agent

A fugitive fraudster who stole more than £750,000 in a tax and mortgage fraud faces an extra five years in prison for not paying back the money. Crooked tax agent Robin Moss will also have his prized possessions, including thousands of pounds of collectible Moorcroft pottery, gold coins and jewellery, auctioned off to recover some of the stolen cash.

Moss, who is an internationally ranked chess player, lied about his income, made bogus claims in the names of unsuspecting clients, and provided false documents that were used in fraudulent mortgage applications.

The 59-year-old was sentenced in his absence to 10 years in prison for tax fraud, money laundering, mortgage fraud and theft. He was convicted in October 2023, after a joint investigation between HMRC and police officers from the East Midlands Special Operations Unit.

Moss has now been handed an extra five-year sentence at Nottingham Crown Court for failing to repay a £970,101 confiscation order.

He faces a total of 15 years in prison and will still owe the money, plus interest, that continues to accrue, even after he has served his extended sentence.

From PQ to darting hero!

PQ magazine was recently at the PDC World Darts Championship supporting former trainee accountant Nathan ‘the Aspe’ Aspinall. He lost that night to a certain Luke ‘the Nuke’ Littler in one of the best games of the tournament. Although ranked 11th in the world, his performance means he has made it on to the Premiership League line-up. ‘The Aspe’ is clearly a talented sportsman. He played as a semi-professional football goalkeeper in his youth, and was scouted by Manchester United. He was even offered a deal at Rangers.

Unsure about a future in football, Aspinall worked as a trainee accountant, before quitting to becoming a professional darts player. The rest, as they say, is history.

Time for a rebrand

Forget haysmacintre – say hello to HaysMac! After 20 years haysmacintyre is saying goodbye to purple, and hello to a new(ish) name and refreshed brand identity. This includes a nice little star after HaysMac. The firm explained: “While our name may sound a little different, and we have a new wardrobe to dress from, our commitment to our clients remains as strong as ever, and we will continue to deliver ‘For Business. For People. For Good’. These three pillars have shaped and continue to drive our focus, reaffirming that your success, the empowerment of people, and long-term positive impact are at the heart of what we do.”

It all comes with a new website, too. Check it out at https://haysmac.com/

Countdown to a female champion

Scottish forensic accountant Fiona Wood has broken the 26-year male domination of TV’s Countdown series! Wood recently became the first woman to pick up the title in the 21st century. There have been five other female champions, but they all won in the previous century.

In a nail-biting final, Wood won it by identifying the final conundrum as ‘lassitude’, which means a state of physical or mental weariness.

On winning the numbers and words game Wood said: “I decided to apply after Colin appealed for older contestants, with Susie adding that they wanted more women. I have absolutely no regrets about applying and would encourage other women to give it a go.”

It’s a wrap for self assessment

What did you get up to on Christmas Day? Some 4,409 people deemed it the ideal time to complete their tax return!

In all 40,072 tax payers submitted their returns over the Christmas break, ahead of the January deadline. HMRC’s festive filing stats show 15:00 to 15:59 was the most popular time to file on 25 December – with 368 returns received.

On Christmas Eve a whopping 23,731 filed, thus avoiding any last-minute shopping and present wrapping.

W E V E G O T T H E L O T

Win a copy of Nick Asset’s book

We loved How to Become an Accountant by Nick Asset, and made it our PQ Book Club review last month. It is a fantastic insight into the real-life of accountants. Nick blows away the mystery to explain what life really is like for thoseworking in the profession. We have got together with publisher Troubador so that three lucky readers have the chance to receive the book in this month’s giveaways. For the chance to win one of these books just send an email headed ‘How to Become an Accountant’ to giveaways@pqmagazine.com along with your name and address.

PQ giveaways winners

Who doesn’t love a giveaway? Well, here’s a list of the lucky PQ magazine readers who were sent their prizes recently.

December cover dated issue: Suki Rai, Manchester; Roberto Martin, Chichester; Veronica Ellis, Exeter; Paula Rutter, Attleborough; Becky Thompson, Shropshire; and Clare Hancock, Truro.

November cover dated issue: Karen Chard, Somerset; Adele Brealey, Manchester; Izabela Szymanowicz, Barry; Yvette Jordan, Chesterfield; Hanni Owens, Undy; and Laura Bradshaw, Bracknell.

Terms and conditions: One entry per giveaway please. You must send your name and address to be entered for the draw. All giveaway entries must be received by Friday 14 February 2025. The main draw will take place on Monday 17 February 2025.