PQ magazine, January 2025 by PQ magazine

SALARIES ON THE UP AND UP

We will see anotherinflation busting 5.8% rise in salaries for PQs in 2024-25, according to the latest Hays UK Salary and Recruiting Trends guide.

Strong demand and a shortage of talent have combined again to push up salaries, following on from pay rises of 6.2% in 2023-24.

This boils down to a current salary for an ACCA finalist in London hitting £58,000. ACCA trainees just starting out in the capital can expect to earn around £32,000. CIMA finalists and trainees can expect a similar pay packet.

What is interesting is the widening gap between ACCA and CIMA finalists and those studying for the ACA qualification. While ACCA/CIMA PQs in London can expect a pay packet of £45,000 a year, that falls to £37,500 for the average ACA PQ/ semi senior.

And, while the salary for a CIPFA finalist is £44,000 in London, just below the £45,000 paid to an ACA finalist, CIPFA PQs are earning more than their ACA counterpart –£38,000 to £37,500 respectively.

And this pattern repeats itself across the UK, albeit the differences aren’t quite as big as the £13,000 pay differential seen in London.

The Hays trends guide also acknowledges the rise and rise of AI.

There is a problem here, however, as only 12% of PQs surveyed have received training or support from their employers to help them adopt AI tech.

Karen Young, a director at Hays, told PQ magazine that employers are missing a trick because the

survey shows eight in 10 PQs are ready and waiting to be upskilled in AI.

The study also found nearly half (47%) of finance employers admit they don’t have access to the right skills to make the best use of AI, compared with less than a quarter

(24%) who say they do currently have access to the right skills to take advantage of AI tools, leaving 29% who are unsure. Young said: “It’s worthwhile finding out which specific AI tools your employer recommends and asking if they can put any training in place; if not, you can find the relevant guidance and education externally to stand you in good stead to tap into AI’s full potential.”

And with the shortage of talent, Young felt it is crucial PQ take any opportunity to grow their professional skillset (often called the soft skills). She explained: “As our research shows, the top five soft skills that are most in-demand across the finance space today are communication (51%), an ability to adopt change (41%), an ability to learn and upskill (33%), flexibility and adaptability (31%) and being able to coordinate well with others (29%).

“Whether it’s through internal training programmes within your organisation or external learning opportunities such as online courses, webinars or industry events, engaging with these initiatives illustrates you’re keen to develop your skills and network, which are certainly green flags for employers today.”

• Check out our salary tables and more insight on pages 27 & 28

29–31 January 2025

Kickstart the year with AccelerAATe 2025

This free online three-day conference is the perfect way to start your new year.

The AccelerAATe conference brings students together as a community to learn, I’d 100% recommend attending! Grace, an AAT professional member since 2024

aat.org.uk/studentconference Book your free place at the biggest event in the AAT student calendar

IN THIS ISSUE

PQ magazine always likes to be early, so here’s your January issue all ready and waiting to be read!

We have another jammed-pack 40-pager for you, which includes a salary guide, an interview with ICAEW education chief Will Holt, and all the key facts and trends about the accountancy profession, courtesy of the FRC.

There is feedback from the ACCA December exam sitting, CASSL’s vice chair Oliver Sighe explains why exam failure is not the end, and award-winning AAT tutor Karen Groves talks you through net wage calculations. Karen is also providing two free webinar evenings for AAT students in January for those studying business documents and books of prime entry. Check out how to sign up on page 16

Then there’s our Annual Bumper Quiz (see pages 18 & 19) with some great prizes – we have three Lumie Bodyclock Lux 750DAB wake-up lights up for grabs. It is the season of goodwill and we have to thank AAT, ACCA, AICPA & CIMA, CIPFA and ICAEW for all coming together to sponsor!

Finally, don’t forget those entries for the PQ magazine awards. I recently received the Michael Kintore Award for Outstanding Contribution to the Profession at the 2024 ICB LUCA awards, which was a wonderful surprise. So I know first-hand how awards can really show that someone appreciates the work you are doing. Come on, it’s time to get nominating…

Graham Hambly, Editor and Publisher, PQ magazine

4 Key Facts and Trends report

How long does it take to get qualified? We’ve got the stats that matter

5 PQ Awards 2025

Get your entry in now – and you could be our guest at the best awards out there

6 ACCA exam feedback

So which paper was ‘awful’, ‘very tricky’ and horrible’?

And which was ‘brutal’? We’ve loads of great feedback from December’s sitting

8 Exam cheats warning ICAEW reports increase in students cheating in exams and assessments

9 University financial crisis

Higher education sector faces financial meltdown as income slumps

10 Happy birthday ACCA! Association celebrates 120 years – and it’s come a long way, baby…

12 Tech news

Government to trial chatbot for SMEs, offering help, advice and guidance Features, etc

14 Have your say CIMA not treating students fairly as IT issues continues; and ACCA tech issues add to exam stress. Plus our social media round-up

17 PQ Awards 2025

It’s time to get nominating if you want to be a part of the best accountancy awards out there

18 Annual Bumper Quiz

It’s that time of year folks! We’ve 50 fun questions to test you –and there’s great prizes up for grabs!

20 Next Generation ACA

We spoke to ICAEW education boss Will Holt about the syllabus changes being introduced next September

22 CIMA FLP

Why you should sign up to the CGMA Finance Leadership Programme

23 ACCA spotlight ACCA’s hit podcast is back with a second series to help you in your quest for that all-important pass

25 CASSL spotlight Exam failure is not the end –it’s just the start of the next challenge

26 Salary survey

We outline the key trends in the jobs market, and our salary checker shows you what you should be getting paid

28 Key facts and trends

The latest report from the FRC provides a ‘state of the profession’ update

30 A question for Tom Tom Clendon explains options

issued as part of business combination. So how well do you know IFRS 2 Share Based Payments?

31 AAT Business Tax exam

Nick Craggs explains a topic that features regularly on this level 4 paper

33 CIMA spotlight

Why you should use the upcoming holiday season as a chance to relax and re-focus

34 ACCA exam review

Paper-by-paper feedback the December exam sitting. So what did you like, and what did you hate?

35 Payroll

Karen Groves explains how to approach a payroll exam style question and tests your payroll knowledge

36 CIPFA spotlight

CIPFA and the Health Foundation have launched a prevention project with Merton council. So what does it hope to achieve?

38 Cyber security

How your organisation can safeguard financial data and prevent security breaches

39 Careers

Time is the enemy for the UK’s CFOs; our Agony Aunt’s advice on smartening up your CV; and our Book Club review

40 Fun

The lighter side of life – and accountancy

The columnists

Lisa Nelson How to harness the power of reflection 4

Robert Bruce Government accounts audit failure barely raises a moan 6

Prem Sikka Justice delayed really is justice denied 8

Anna Kate Phelan Familiarity with the tech breeds exam success 10

Eddie Herbert Climate forum will bring benefits for all 12

LISA NELSON

Harness the power of reflection

It takes time to get qualified!

Some 183,508 accountancy students are still trying to get qualified more than five years after they started their professional studies. That is 31.34% of all the PQs signed up with ACCA, CIMA, CIPFA, ICAEW, CAI, ICAS and AIA.

For PQ accountants, mastering exam content is crucial and you will regularly receive good advice that question practice is key – true! It certainly outperforms re-reading notes. But your secret weapon may lie not only in more and more question practice but also in the power of reflection. Dedicating 10-15 minutes at the end of each study session to reflect can significantly enhance your retention and performance.

Reflection is a structured process that involves considering what you’ve learned, identifying areas of strength and weakness and planning your next steps. Start by jotting down key concepts and any challenges you faced. Ask yourself: what did I understand well? Where do I need more clarity? How can I apply this knowledge in practical scenarios?

Accountancy apprentices will be familiar with the learning journal. This journal is an invaluable tool for reflection, not only helping you progress in your technical exams but also in the development of your workplace skills. Ultimately, reflective practice not only deepens understanding but also builds confidence. By regularly engaging in this process you transform passive learning into active engagement, ensuring that each study session contributes meaningfully to your exam preparation or career development journey. Embrace reflection as a key strategy for success.

AAT student conference

Have you signed up to accelerAATe Online – your very own AAT student conference? It runs from 29–31 January 2025, and is the perfect way to kick-start your new year.

AAT have lined up a great list of speakers to help motivate you in your studies. Among them are Training Link’s Will Boardman and Ideal Schools Ellis Harris-Boulter. You will also hear from AAT CEO Sarah Beale and Chesterfield College’s Paul Bramall.

The figures form part of the Financial Reporting Council’s annual Key Facts and Trends in the Accountancy Profession report. It shows that, as of the end of 2023, there were 585,441 students studying with the seven bodies, which are based in the UK and Republic of Ireland.

ACCA has the most students still studying and paying their subscription after half a decade, at 149,744 (or 33.89%), but this is not the biggest percentage. Some 55.56% of CIPFA students have still not qualified after five years of study. At CIMA, just over 24,000 are still studying after five years, that’s 29.5% of its total student population.

The percentages are very different for ICAEW, ICAS and CAI. Only 6.56%, 7.6% and 9% of their students respectively were still registered after five years of study.

• For more go to page 20

ICAEW student energy costs payments?

If any ICAEW PQ is struggling to pay for their energy costs such as heating, gas and air conditioning, then they shoudn’t forget caba can provide an energy support payment.

The means-tested payment is available for anyone on a low income who is in need of financial support. You don’t need to be receiving any meanstested benefits – you

may still be eligible. The application form takes income, expenditure, assets and debts into account, and if you are on a low income and

The Public Finance Awards 2024 took place recently in London. Among the winners was Future Leader of the Year Lin Liu, who is a management accountant at Children’s Services and Public Health, Bedford Borough Council. Awarding her the top prize the judges said: “The candidate serves as an inspiring and effective team leader, taking personal interest in her colleagues’ wellbeing and professional development as well as work for the profession through her work on CIPFA Student and other networks.”

And it all runs at lunchtime, early afternoon and early evening.

To find out more go to https:// tinyurl.com/2zszbhd3

Finding the right course

If you are looking to move quickly from PQ to NQ then you need to choose a top training provider. But which one?

Well, you need to check out our Course Finder page at https:// tinyurl.com/2ebtwxau. Select who you want to study with and you will

have capital of less than £16,000 you are likely to qualify. Over the past two years caba has awarded £113,850 in energy cost payments

worldwide to help chartered accountants and students cope with the increasing living costs.

As caba says:

“Becoming a chartered accountant can be stressful enough. If you’re low on income or worried about paying your bills you may qualify for caba’s energy payment of up to £500.” Check it out at https:// ow.ly/GL5C50U7Pef

see our trusted providers.

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

Two new Back to Basics videos

We have added two new videos to our Back to Basics series 2 this month. Three-time PQ magazine

award winner Tom Clendon’s latest eight-minute video looks at IAS 37 and provisions. IAS 37 explains when you can recognise a provision – do you know, for instance, the three conditions which have to be met? You will after watching Tom, at https://tinyurl.com/2xx5p4u4

In addition, we have Will Boardman looking at the VAT control account. With his help you will understand what goes on the credit side and what goes on the debit side. Check out his video at https://tinyurl.com/2y7empuz

Lisa Nelson is Director of Learning at Kaplan

Awards night beckons

The call has gone out for nominations for the PQ magazine awards 2025. This will be the magazine’s 22nd awards night, and we want you to be there

celebrating with us!

There are 20 ‘PQs’ up for grabs, not including the Editor’s special awards, so there is plenty of chances to win.

CIMA online glitches persist

CIMA’s online glitches don’t seem to have gone away. PQ magazine was recently contacted by a CIMA passed finalist who was having difficulty upgrading their membership to the CGMA designation (see letters, page 14). A CIMA spokesperson explained the system glitches

was being caused by coding issues, and this was indeed having an impact on some students’ ability to become members.

CIMA told us that it has “not met the expected service standards” and apologised for any frustration caused.

Last year ICB’s CEO, Ami Copeland, said: “I cried, danced and sang along with drag queens – not a normal Monday night!” Her favourite moment was meeting our Accountancy Graduate of the Year, Tim Mickleburgh, and his mum.

CASSL’s Aydin Bolton said: “Such a fun evening filled with lots of entertainment and smiling faces from all across the industry… a night to remember.” He had every right to smile as CASSL took home Student Body of the Year, for the second year in a row.

So if you want to be at what are being called ‘the biggest night in the accountancy education industry’ then you have got to enter!

Check out more on page 17

The CIMA annual report (which featured in our November issue, page 18) highlights the fact that from April 2023 the new digital platform for members and CGMA candidates was experiencing problems. This in turn led to resource constraints, capacity gaps and site issues, as well as the delayed launch for some core capabilities.

An outstanding contribution

PQ magazine editor Graham Hambly has been awarded the Michael Kintore Award for Outstanding Contribution to the Profession at the 2024 ICB LUCA Awards.

Other winners on the night were Training Link, who walked off with the Training Provider of the Year trophy. Emilia Goubert was Student of the Year, and Ideal Schools’ Caryl Gibson won Tutor of the Year.

The award for the bookkeepers’ friendliest software went to FreeAgent, and the bookkeeping software of the year was Xero.

Check out the full list of winners at https://tinyurl.com/mwb8a55f

ROBERT BRUCE WGA scandal: where’s the uproar?

If a public company fails to have its audit signed off it is a scandal. Headlines, excoriation of the auditors and, occasionally, company directors, would follow. It would be seen as dereliction of duty. Yet, recently, the Whole of Government Accounts (WGA), the government’s accounts for the most recent year, failed that test. The National Audit Office refused to sign them off. Why so? For a start, a mere 10% of local authorities submitted what could be seen as a reliable data.

As the NAO report says: “Of the near 90% of local authorities that failed to submit reliable data, 46% (196) submitted information that hasn’t been audited, and 44% (187) did not submit any data at all.”

This is bizarre. If a company admitted that 44% of the outfits that made up the company hadn’t bothered to put in any accounting data the sky would be full of explosions. But, somehow, because we are talking about taxpayers’ money no one bothers.

NAO boss Gareth Davies knows this. “It is clearly not acceptable that delays in audited accounts for English local authorities have made it impossible for me to provide assurance on the Whole of Government Accounts for 2022-23. It is essential that the steps being taken by Government to restore timely and robust local authority audited accounts are effective.”

Have you heard an uproar about this shambles? No, me neither.

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

PQ Bumper Quiz is here!

Do you want to wake up to a gradual sunrise that helps you feel naturally refreshed and awake? Then what you need is a Lumie Bodyclock Luxe 750DAB wake-up light with DAB radio, Bluetooth speakers and low-blue light for sleep!

They aren’t cheap, but we are giving away three Bodyclocks as prizes in our annual quiz. Readers who get all the answers right will go into the hat for the chance to

Your ACCA December feedback

ACCA sitters described the December SBL exam as ‘awful’, ‘very tricky’ and ‘horrible’!

And, according to the ACCA Open Tuition Instant Poll, it stood out as the hardest paper this time around, by a long way.

Another paper in the hard camp was ATX. Quite a few sitters said it was the hardest paper they had ever sat. Time management was a big problem, and many sitters admitted they struggled to answer the last question.

PM was also described as ‘brutal’ by some sitters. Other found it ‘hard but fair’.

In stark contrast SBR was the most ‘liked’ paper this time around. Some 65% of voters in the Open Tuition Instant Poll ticked the ‘OK’

box, and another 5% said it was ‘easy’.

Nigh on half (49%) of TX sitters thought the exam was ‘OK’, and for AAA sitters the exam was also deemed ‘OK’ by 43% of voters in the instant poll, which is pretty high for that paper, too.

Future-proofing the ACA

The Next Generation ACA looks to the future, but has not forgotten about the fundamentals, according to ICAEW Managing Director, Education & Training, Will Holt (pictured).

In an exclusive interview with PQ magazine, he said the updated syllabus recognises the significant changes happening in business, accountancy and finance. He explained: “We need

to adapt more quickly and futureproof the profession and the value our members bring to their organisations.”

Tax in creases… wins!

A crumpled white shirt covered in tacks has won the 2024 Turnip Prize. The annual spoof art competition was won by ‘Wonga Woman’ for her piece entitled ‘Tax In Creases’.

Organised by The New Inn in Wedmore, Somerset, for the past 26 years, this year’s winner said

win one.

Check out page 18 & 19 for the 50 questions that could get you that prize!

A big thanks go to AAT, ACCA, AICPA & CIMA, CIPFA and the ICAEW for coming together to sponsor the quiz.

PQ JOB OF THE MONTH: Client Accountant

Your chance to join a wellestablished property firm based in Birmingham City Centre. They

she was inspired while carrying out some domestic chores. She said: “It’s a great honour to receive the fantastic prize and I am fully aware that the trophy comes with a bill for VAT (Vegetable Added Tax).”

Organiser Trevor Prideaux was “delighted with the lack of effort taken to create this work.”

are offered hybrid working and the opportunity to develop within the company.

Application close on 2 January 2025. For more go to: https:// www.gaapweb.com/job/4262376/ client-accountant/

Free AAT revision evenings

PQ magazine has joined forces with e-Careers and award-winning tutor Karen Groves, to offer AAT studiers free online revision evenings.

Sitters will have to wait a little longer for results this time around – they will hit inboxes on Friday 17 January 2025.

Check out all the rest of the feedback on page 25

Holt has also used the changes to ensure better support for ICAEW students and a smoother, more integrated approach between levels. The bar is, rightly, still high, he stressed, but the journey to the final level will be “less steep”.

Three new case studies and a new skills development framework bring the workplace and future careers to the fore. For Holt these are critical developments to help ensure the ACA qualification remains the passport to careers across business. See page 20 for more.

Karen will be covering business documents and books of prime entry in not one, but two evenings on the Introduction to Bookkeeping assessment. She will run through invoicing, credit notes, and much more!

The live sessions start at 6.30pm and run over two consecutive Thursdays – 9 and 16 January. Check out page 16 for all the dates and details!

This is the first in what we hope will be a series of free revision sessions with e-Careers.

Photo credit:

The Turnip Prize

IMAGINE MORE WITH THE NEXT GENERATION ACA

Featuring a new comprehensive, dynamic syllabus, the Next Generation ACA develops critical thinkers, agile problem solvers and effective communicators ready for the modern workplace.

PREM SIKKA

Where’s the justice?

The rule of law is the foundation stone of democratic societies. It protects rights, provides stability, accountability, and enables people to flourish. When applied correctly it can limit the arbitrary powers of the state, corporations and wealthy elites.

What happens in practice in the UK? Legal aid has been severely reduced and millions can’t access the legal system. Some 370,700 cases for magistrates’ courts and 71,000 cases for Crown Courts are waiting to be heard. Even if people can get access to the courts, at best they will get an interpretation of law, not justice. The ‘rule of law’ and justice are not synonymous. Justice is concerned with fairness, equity, respect for others, freedom, equality, human rights, sanctity of life and more. Such concerns are increasingly missing from law-making.

Laws have been enacted to implement austerity, cuts in real wages, benefits and public services. The result is that over 16m Britons, including 5.2m children, live in poverty. Some 6.34 million people in England are waiting for 7.57m hospital appointments. Around 300,000 people a year die awaiting hospital appointments.

In the decade after 2011 more than one million people in England died prematurely due to poverty, austerity, and the impact of the Covid-19 pandemic. 111,000 Britons died last year in poverty. Hungry children and premature deaths are the product of the contemporary rule of law. The emphasis must shift to justice.

Prem Sikka is Emeritus Professor of Accounting at the University of Essex

Tax briefs

Rupert Grint to pay

£1.8m in taxes

Harry Potter star Rupert Grint (he played Ron Weasley) has been ordered to pay £1.8m in back taxes after he lost an appeal against HMRC.

In a 2019 case HMRC claimed Grint had received £4.5m from a company where he was the only shareholder. Although Grint paid capital gains tax at 10%, HMRC claimed he should have paid income tax and National Insurance at the top rate (52%).

Cheating on the rise

There is rising concern about student misconduct in exams and assessments, says the ICAEW.

The Institute said the number of students engaging in activities with the intention of giving themselves an unfair advantage in an assessment or exam is on the rise.

ICAEW’s senior manager in the conduct department, Laura Olsson, explained the cases range from cheating in exams and assessment, colluding with other candidates to gain advantage, and plagiarising the work of others.

She urged firms to be on the alert, and reminded them they are obliged to report any misconduct to the ICAEW.

Olsson revealed that the education and training team will contact her department if software

identifies plagiarism, including the use of artificial intelligence.

A growing problem is students cheating in assessments within their firm. There are also problems with Project Reports. The Project Report is part of the Level 7 apprenticeship and assesses evidence of a student’s competence. Olsson said some students don’t seem to understand there is a problem with sharing.

Both students and firms need to adhere to the Code of Ethics, where integrity and professional behaviour are key attributes. Breaking this code could potentially put your careers at risk, said the ICAEW.

Labour government needs accountants

The government needs to work closely with the accountancy sector if it is to make a success of its number-one mission – a growing economy, according to ACCA. It said accountancy is an undoubted success story for the UK. The sector contributed £98bn to the UK and Irish economies in

2022, exported £4bn of services in the same year and has a trade surplus of £4.9bn.

Responding to Invest 2035: the UK’s modern industrial strategy – the strategy Chancellor Rachel Reeves says is central to its growth mission – ACCA said that the work of the accountancy

profession underpins the success of all the eight growth-driven sectors identified by the new Labour administration.

Glenn Collins, Head of Policy, Technical and Strategic Engagement ACCA (pictured), said: “The UK government’s ambitious strategy for growth needs to be supported by detailed plans to ensure that the aspiration has a chance to be realised.”

IASB proposes provisions improvements

The International Accounting Standards Board (IASB) has said it wants to improve the requirements for recognising and measuring provisions on company balance sheets.

The IASB said investors are seeking transparent and comparable information about companies’ provisions for assessing future cash flows and financial positions.

The IASB’s targeted improvements would help companies apply the requirements more consistently and provide investors with more useful

Tribunal judge Harriet Morgan dismissed Grint’s appeal and ordered him to pay the outstanding monies.

This is not Grint’s first case against HMRC – he lost a separate case in 2019 over a £1m tax refund.

Misconduct in public office

A sacked HMRC compliance officer who abused her position to help her husband launder £3.3 million of criminal cash has been handed a

information. The amendments to IAS 37 Provisions, Contingent Liabilities and Contingent Assets would clarify how companies assess when to record provisions

14-month suspended prison sentence.

Kuldip Badesha, of Chatham, Kent, used HMRC systems to produce letters that included fake National Insurance numbers and signatures. The 46-year-old handed these details to her husband Ranbir Singh, who used them to open two of the 85 bank accounts, which he then used to launder money between 2015 and 2018.

Investigators discovered she was leading a lifestyle that was beyond her means, which included leasing

and how to measure them. They would require companies to provide more information about the measurement. The proposals would most likely be relevant for companies that have large, long-term asset decommissioning obligations or are subject to levies and similar government-imposed charges.

IASB’s chair, Andreas Barckow (pictured), said: “Our proposals clarify the accounting requirements for provisions, helping companies provide better information to investors.”

an expensive Bentley car and enjoying long-haul holidays.

How much to stay in Wales?

The Welsh government is looking to introduce a tourism tax from 2027. Those staying at hotels, B&Bs and self-catering accommodation would pay the visitor levy of £1.25 a night if councils decided to introduce it. A lower rate of 75p would be charged for those opting for hostels or campsites. The charge would be per person per night and include children.

University financial crisis ‘real’

The future is looking bleak for many UK universities, and by 2025-26 the sector faces a net income reduction of £3,445m, according to the Office for Students (OfS).

Without ‘significant mitigating actions’ the sector-level deficit could be minus £1,636m, with up to 72% of providers running a deficit and 40% having low liquidity, the OfS said.

Ultimately, the risks mean universities will need to start to look for merger partners or other structural changes to ensure their financial future.

The big decrease in overseas students is having an effect. There were 16% fewer applications for visas in 2024, compared with 2023.

Rosalind Gill, Head of Policy and Engagement at the National Centre for Universities and Business (pictured), said: “Universities are one of the UK’s greatest strengths and a key driver of innovation, skills and economic growth. The new report from the Office for Students hammers home the scale of the crisis faced by our nation’s world-leading institutions. Increasing employer National Insurance contributions has also made the situation more challenging, significantly raising staffing costs for universities, by £372 million a year.”

IFA partners with Croner-i and Clearview FX

The Institute of Financial Accountants (IFA) has unveiled a strategic partnership with Croner-i and Clearview FX to boost its offer for members.

The collaborations will also enable the IFA to better assist accountancy firms to support the needs of UK SMEs.

IFA members access includes free Croner-i Navigate-Tax

Lien, 20% discount on the full Croner-i Navigate Tax platform subscription, free additional content such as Q&As, quick facts and guidance, as well as selected free tax and finance webinars.

The partnership with Clearview FX means members will benefit from exclusive support in mitigating currency fluctuations and protecting business profits,

as well as access to bank-beating exchange rates.

IFA’s executive director – UK, Jonathan Barber, said: “We view these partnerships as essential in helping our members to keep pace with industry best practices, allowing them to apply global knowledge to support micro and small businesses across the UK.”

AAT’s annual report

AAT’s annual report is out, and it shows income for the year rose to £33.5m, up from £32.5m in 2023.

Costs were up too, by £3.2m, which meant there was a surplus of £0.6m from recurring income.

AAT now has 51,395 professional members and 67,416 students across 104 countries. Some 5,846 new professional members joined the fold during the year.

The good news is that completion rates for the accountancy qualifications were up 16.1% yearon-year, meaning AAT surpassed its target of 20,200 by 3,252.

Starts among those studying an accountancy apprenticeship with AAT also rose by 17%, and the number of businesses offering the AAT apprenticeship qualifications jumped by 24%.

Student and affiliate fees broke the £9m barrier in 2024, and assessment brought in another £13.3m.

Finally, for the curious, CEO Sarah Beale’s salary and total benefits were £225,000.

ANNA KATE PHELAN

More haste, less speed

Happy birthday ACCA!

The ACCA marked a significant occasion recently as it celebrated 120 years since its creation.

As an accounting student I’m sure exam prep can feel daunting. With the right approach, online learning and e-assessment platforms can become valuable tools to reinforce your understanding and prepare you for success. Here are a few simple tips to help you do your best on your next online test.

Before exam day, take some time to explore the e-assessment platform and familiarise yourself. Practise using features like the timer, navigation buttons and flagging tools for trickier questions. Being comfortable with the interface will reduce anxiety and save precious minutes during the test.

Prioritising time management is key. Exams often have strict time limits. Start by tackling questions you’re confident about to secure those marks first. Then move on to more challenging question sets. Keep an eye on the clock but avoid rushing – you’ll perform best when calm and focused. If you are eligible for reasonable adjustments ensure you obtain these well ahead of time. Accountancy exams often include complex wording or multiple steps. Slow down and ensure you take the time to understand what the question is asking before diving into calculations.

If you have the time, doublecheck your answers. Look for any simple mistakes, like misplaced decimal points or skipped steps in calculations. A quick review can make a big difference in your score. The above strategies should help you ace your exams. Best of luck!

Founded in London by a group of eight accountants on 30 November 1904, it has since grown to a global network of 252,500 members and 526,000 PQs across 180 countries.

ACCA’s newly elected president, Ayla Majid (pictured), said: “By staying true to our founding value of inclusion, ACCA has become a truly global organisation, working for the public good. When ACCA was founded in 1904, nobody

could have predicted how much we’d achieve. Our story has been one of innovation and growth.

FRC approves CIPFA’s Diploma in Local Audit

The Financial Reporting Council (FRC) has preapproved CIPFA’s Diploma in Local Audit for local audit specialist training.

Improving the capacity and capability of the local audit system is now a priority for the FRC, as

it wants to ensure the long-term sustainability of local authority financial reporting and audit.

The FRC has already revised guidance allowing for Responsible Individuals with significant statutory audit experience to apply for Key Audit

Blame negative stereotypes

The accountancy sector’s talent shortage can be laid at the feet of outdated stereotypes that have contributed to a declining interest in the profession, says a study from FreeAgent.

The survey of accountants and bookkeepers found that 57% of respondents identified negative stereotypes as a key deterrent for individuals considering the profession as a career choice. Other

Disability inclusion at work

Four in 10 people with disabilities, chronic health conditions or who are neurodivergent have experienced micro-aggressions, harassment or bullying at work in the past 12 months in the UK, according to Deloitte’s first Disability Inclusion at Work report. Nearly a quarter (23%) of respondents stated that people had made negative assumptions about their competence in the past year (compared with 30% globally), and nearly a quarter (24%) reported that they were passed over for a promotion (25% globally). However, despite a majority (66% in the UK, 52% globally) of micro-aggressions, harassment or

challenges include the high cost of education (cited by 47%) and the lengthy qualification process (42%).

Roan Lavery, CEO (pictured) and co-founder of FreeAgent, said: “It’s vital that the next generation of accountancy professionals are properly supported in their career development and have the opportunity to learn important new skills. Without this, many small businesses that rely on skilled

bullying at work incidents being formally reported, the survey suggested a significant number of such occurrences may still be going unreported.

Benefits of Copilot

A new EY study has highlighted the significant benefits of Microsoft 365 Copilot for employees with a disability and/or neurodivergence. Microsoft 365 Copilot is a secure artificial intelligence (AI) assistant integrated across Microsoft 365 apps, documents and conversations. It leverages advanced AI and machine learning (ML) technologies to assist users with tasks, enhance productivity and provide intelligent insights. This includes help with writing emails, documents and

But, above all, it’s a story of more people’s careers launched, lives transformed, and many dreams come true.”

The election of Majid to the office of president, along with Melanie Proffitt as deputy president and Datuk Zaiton Mohd Hassan as vice president, makes this the first time in ACCA’s history that women have held all three officer posts at the same time. It’s another milestone for the professional accountancy body, which was the first to admit women to membership in 1909.

Partner status, so long as they have undertaken pre-approved local audit specialist training.

CIPFA’s Diploma in Local Audit is the first qualification to receive the FRC stamp of approval, and any auditors who have successfully completed the course and met the criteria to apply for Key Audit Partner status will be able to apply retrospectively.

The FRC also wants to encourage other recognised qualifying bodies, training providers and audit firms who have developed training to apply for assessment for approved local audit specialist training.

financial professionals for guidance on compliance, planning, and growth will find it difficult to thrive in the years ahead.”

presentations, analysing data and automating repetitive tasks.

Green jobs surge

The latest PwC Green Jobs Barometer reveals a surge in green job adverts across the UK, reflecting a growing demand for green skills despite a 22.5% contraction in the overall job market. Now in its fourth year, the Barometer tracks the movement in green jobs creation, job losses, carbon intensity of employment, and worker sentiment across regions and sectors. It found that the share of green job adverts as a proportion of total job adverts increased to 3.3% in 2024 – up from 2.3% in 2023 – adding nearly 23,000 new green job adverts. That is a 9.2% national rise in the number of green job adverts.

Anna Kate Phelan is Head of Product at Eintech

EDDIE HERBERT Climate forum will bring benefits for all

In response to the growing urgency of climate action, Net Zero Now has launched the Accountancy Climate Forum, bringing together sustainability champions from accounting firms nationwide. This forum creates a vital platform for sharing expertise, developing best practice and accelerating sustainable transformation within the accountancy sector.

Our inaugural session united representatives from leading accounting firms of various sizes, demonstrating the sector-wide commitment to environmental responsibility. Participants shared insights into their sustainability journeys and discussed practical approaches to data collection, stakeholder engagement and supply chain management.

A critical theme emerged: the dual mandate for accountancy professionals. Beyond managing their firms’ environmental footprints, they must guide clients through complex sustainability transitions. Forum members emphasized that building internal expertise is now essential to meeting growing demands for sophisticated sustainability services.

The Accountancy Climate Forum represents an opportunity for forwardthinking professionals to drive meaningful change. By sharing knowledge, developing strategies, and supporting one another, we can transform the accountancy sector's approach to sustainability.

Looking ahead, the Accountancy Climate Forum will help play a key role in advancing sustainability leadership within the sector. Through regular virtual and in-person meetings, participating in the forum will ensure members stay informed about the latest climate policies, and guidelines impacting the accountancy sector, creating a space for peers to engage with each other.

Edward Herbert, Sales & Business

Government to trial chatbot for SMEs

Thousands of small businesses across the UK will be able to get help and advice through a new government AI chatbot trial.

Up to 15,000 people will be able to ask the tool for advice on business rules and support, with the chatbot linked to 30 of government’s online business pages, such as “set up a business” and “search for a trade mark”.

People with access to the trial can ask questions about tax and the support available to them.

A team of in-house data

scientists, developers and designers are building the experimental tool using OpenAI’s GPT-4o technology, which aims to

help people more quickly navigate complex advice to understand what matters to them. In response, they will receive straightforward, personalised answers that collate information that may otherwise be spread across dozens of web pages.

Science Secretary Peter Kyle (pictured) said: “Outdated and bulky government processes waste people’s time too often, with the average adult in the UK spending the equivalent of a working weekand-a-half dealing with public sector bureaucracy every year.”

Sage operating profits up 43%

Sage has posted its financial results for the year ended 30 September 2024, and total revenue increased by 7% to £2.332m. Operating profit was up 43% year-on-year, from £315m for FY23 to £452m for FY24.

The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) grew by 16% to £622m.

Sage also separately announced

IRIS buys Dext

a share buyback programme of up to £400m, reflecting its strong cash generation, robust financial

businesses.

position and what the board said was its confidence in Sage’s future prospects.

Sage CEO Steve Hare said: “Sage has delivered another successful year, achieving strong, broadbased revenue growth together with significantly higher profits and cash flows. Building on our progress to date, we look forward to delivering further sustainable growth in the year ahead.”

Development Manager,

Net Zero Now

Google

must sell Chrome

The US Department of Justice (DOJ) and some US states have said Google must sell its Chrome browser. In a court filing, the DOJ has put forward a series of measures it believes are necessary to end Google’s monopoly of online searches.

The DOJ has told the judge, Amit Mehta, that he must stop exclusive contracts being signed with the likes of Apple and Samsung, which make Chrome the default on their

IRIS Software Group has announced a definitive agreement to acquire Dext Software. The acquisition will unite two sectorleading cloud-based platforms – Dext’s Bookkeeping Automation Platform and IRIS Elements – to deliver a complementary and fully integrated end-to-end solution for accountants, bookkeepers and

smartphones and browsers. It has also been suggested that Google should not be able to re-enter the browser market for five years. Currently, Google’s search engine accounts for 90% of all online searches globally.

Intuit and Adyen to ‘collaborate’ Intuit and fintech company Adyen have announced a new collaboration to help SMEs get paid faster. The two companies will initially integrate Ayden’s

On one side of the accounting value chain, IRIS Elements supports accountants and businesses with practice management and compliance functionality, such as accounts production and tax returns. On the other, Dext simplifies bookkeeping and improves productivity by automating routine tasks with AI.

Commenting on the agreement,

embedded payments services into Intuit’s business platform through QuickBooks Online.

Nick Williams, Product Director at Intuit QuickBooks, said: “We are thrilled to team up with Adyen so businesses can benefit from end-to-end financial management on our platform. Adyen’s payment platform is designed to provide a seamless payments experience for merchants and their customers, and we are pleased to bring this capability to our users,

Elona MortimerZhika, CEO of IRIS Software Group (pictured) said: “We are doubling down on our promise to build and offer the most compliant cloud solutions that deliver our customers the highest levels of productivity and engagement, giving them back the critical time they need to advise their clients, grow their businesses and do what they love.”

improving the convenience of money movement on QuickBooks Online. We conducted a rigorous selection process and chose Adyen due to their fast settlement times, comprehensive risk tools and market leading position.”

Sage Copilot update

Sage has said that Sage Copilot is now available to early adopters in the UK and US on Sage Intacct. The move comes as part of a raft of new enhancements and updates for Sage Intacct.

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Computer says no!

I am an avid reader of PQ magazine and wondered if you’d be interested in featuring an article about CIMA’s incompetence that prevents deserving students from upgrading their membership to CGMA designation?

I thought I’d give you first opportunity to feature this story. I’m even hoping you might have some sway in contacting someone in authority at CIMA to ask why the perpetual IT issue cannot be rectified, instead of denying its students the recognition they deserve to advance in their accountancy careers.

I look forward to hearing from you.

Name and email address supplied

The Editor says: We contacted CIMA, and they explained: “We have experienced a system glitch, which impacted some candidates that were in the process of becoming CIMA members. We have identified the problem to be the result

of a coding issue and are now deploying the fix. We know that we have not met the expected service standards on this occasion and apologise for any frustrations this may have caused our candidates.

“This week our customer service team has been contacting those affected, and we aim to complete this process in the next few days. In the meantime, should anyone else be experiencing a problem, please give us a call on +44 (0)20 8849 2251.

“Becoming a Chartered Global Management Accountant should be a celebratory moment. We wish everyone the very best for their future careers.”

We hope that is job done, and glad to be of help!

Our star letter writer wins a fantastic ‘I love PQ’ mug!

Tech issues for AFM sitters in December

I just wanted to know if you had heard about the problems with the ACCA AFM exams? Quite a few of my ‘fellow suffers’ experienced the same ‘technical issues’ issues as me, and we are all having to resit the exam next week. It does make me think that if I do have to resit, and there is always a strong possibility that will be the case, then maybe it’s time to head back to the exam centre. But it’s not something I want to do. Sitting my ACCA exams at home has been great and almost stress-free (up until this time!). Travelling to the exam centre just adds a layer of stress I could do without.

Name and email address supplied

That shocking question

Has PQ magazine pursued the ICAEW over that shocking Corporate Reporting exam question, which featured an October music festival and band called ‘Nova’.

The Nova Music Festival in Israel was, as you said, a major target for Hamas in its 7 October 2023 attacks.

I would love to know how many students asked for special dispensation following the exam.

I am also hearing some strange rumours that the ICAEW used AI to write its exam questions, hence the mistake, but surely it was all down to human error.

I am sure there has been an internal investigation. It would be

interesting to know if the ICAEW has sacked anyone over this.

Come on PQ – do your stuff.

Name and address supplied

The Editor says: I think we can definitely say ICAEW don’t use AI to write exam questions. Everyone at the institute is genuinely upset about what happened, and they are working hard to ensure it never happens again.

Someone asked a great question on one of our favourite Facebook groups – UK (Only) ACCA Distance Learning Students (independent study group). They wanted to know whether you spend the last day before an exam cramming like mad or relaxing and letting your mind rest, or a mixture of the two?

One PQ said that in an ideal world they would cram through the day and relax in the evening: “If I don’t know it by the evening, I’m not going to learn it and it’s important to get a good night’s sleep.” But they admitted in reality they panic all day and all night, and regret booking two exams on consecutive days, and were wishing it was Friday already!

Another December sitter said it was the afternoon and “I’ve done nothing except sit and stare at the wall dreading what tomorrow might bring”.

Yet another studier revealed they go for a fourth option “which is panic and give myself a migraine”.

One interesting approach was the PQ who walked around with condensed notes and did things like cleaning the house while testing themselves.

Ultimately, it appears #teamcram wins the day – just in case that last-minute revision comes up as a perfect question the next day.

In another post on the site, Leeds Centre exam sitters were warned about the limited parking at the centre. With so few spaces afternoon sitters would have no chance of finding a place. The other problem is that the Leeds City Centre exam hall is, well, nowhere near Leeds city centre! And public transport to the venue is extremely poor. The advice is get there early if you are driving.

Business documents & books of prime entry Free AAT online revision evenings

PQ magazine has partnered with e-Careers' multi-award-winning Tutor, Karen Groves, to offer you two free ‘live’ evening sessions, running through the ‘Introduction to Bookkeeping’ assessment. Karen’s workshop will explore invoices, credit notes, how to account for transactions, purchase orders, calculating VAT, coding, discounts, and much more!

When you sign up, you will have access to two online sessions: one on Thursday, 9 January 2025, and another the following week on Thursday, 16 January.

These live sessions will begin at 18:30 and run for around an hour each.

To sign up, register your interest via ask@e-careers.com

Places are limited and will be allocated on a first-come first served basis.

Karen Groves Faculty Director of Accounting

GET NOMINATING!

We need your entries to the PQ magazine awards 2025, so get your nominations to us asap

The window is now open for your PQ magazine award nominations – you have until the deadline Friday 7 March 2025 to get them to us.

There are lots of categories where you or your nominee can win a much-coveted PQ magazine trophy.

There are both individual awards, such as PQ of the Year and Tutor of the Year, and team awards, including Accountancy Team of the Year and College of the Year.

Don’t forget our Podcast of the Year award, which we added recently, or our Graduate/ Apprentice Programme of the Year.

Our advice is always to spread the love.

To start all you need to do is download the application form from the website – go to https://tinyurl.

com/4bdxnzwz

We then need a maximum of 500 words on why you/your nominee(s) should win – it is that simple!

Once you have everything together send your entry to awards@pqmagazine.com and we will make sure the judges see every entry before shortlisting.

And remember, if you get on one of the shortlists you could be going to the coolest accountancy awards around. Last year they were staged at Lio London, just off Leicester Square.

The deadline is Friday 7 March 2025. So now is the time to get nominating.

TOPGRADUATES

Our reigning Accountancy Graduate of the Year is Tim Mickleburgh from the University of Manchester (far right). Our 2023 graduate winner was Xhulja Duka (pictured with ICAEW’s Shaun Robinson, right), and in 2022 it was Sara Radi (pictured with friends, below)

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

PQ’s Bumper Quiz

Back again to haunt you – it’s the PQ magazine annual Bumper Quiz! Thanks to our sponsors this year – AAT, ACCA, AICPA & CIMA, CIPFA and ICAEW – we are giving away (again) three fantastic Lumie Bodyclock Lux 750DAB wake-up lights, as they proved such a hit last year

Nigel Farage became a Member of Parliament for the first time after seven times of trying at UK elections. Which constituency did he win?

Kemi Badenoch recently became the leader of the UK Conservative Party, but who is her shadow chancellor?

Jeremy Clarkson owns a farm, which he renamed. What did he call it?

Which was the first bank to remove the cap on bankers’ bonuses following the 2023 change in UK law regarding bonuses?

In May, the tallest and fastest rollercoaster in the UK was opened at Thorpe Park. What is it called?

Who won this year’s Booker Prize? 7

Which UK city will become the City of Culture in 2025?

In which country was Elon Musk born?

Which medication is fattening the Danish economy?

Come January 2025 the US will have a new Vice President. Can you name him?

Simon Cowell was recently quoted as saying: “If you don’t want that, be an accountant! You can’t have it both ways!” Name the BBC three-part documentary the quote comes from?

In EastEnders Cindy Beale was signed up to an AAT bookkeeping course this year, but what was the name of the fictitious college she signed up with? Hint: we covered it in PQ magazine.

. Oasis announced a reunion tour in August. but in which year did the brothers last play together?

The Day of the Jackal starring Eddie Redmayne has been a big TV hit this year. Who starred as the Jackal in the 1973 film?

Nicola Coughlan featured in Derry Girls, and has gone on to play the youngest daughter of a nouveau-riche family in Regency era London. What is the name of her character in this successful TV drama?

Who won this year’s Mercury Prize for Album of the Year?

Which film won Best Picture at the 2024 Oscars?

At the beginning of 2024, an ITV drama was credited for igniting public interest, leading to a 1.2m petition calling on a former CEO to have her CBE withdrawn. Name the show?

What is the top grossing film of 2024 (as at 1 December)?

Cowboy Carter stormed the country music charts this year. Who was the artist?

21Spain’s Carlos Alcaraz won the men’s singles at Wimbledon for the second year in a row. But who won the women’s singles title this year?

22England made it to another UEFA European Championship final, only to lose to Spain. Who scored England’s only goal in the final?

Team GB won 14 golds at the Paris Olympics. Who won gold in the women’s 800m?

India won the final of the ICC Men’s T20 World Cup cricket tournament in 2024, but who did they beat in the final by seven runs?

25Golf’s Solheim Cup took place in September. Who won?

Owner J.P. McManus won the Grand National horserace in 2024. What was the name of his horse?

27Who is darts’ teenage sensation, who has won over £1m this year?

28Max Verstappen has won the F1 world title again. How many times has he been champion?

Rodri won this year’s Ballon d’Or, but one team decided not to turn up to the ceremony because their player did not win (although they won team of the year). Which team was it?

Ineos Britannia lost to a team from New Zealand in the Amercia’s Cup. Who captained the GB team?

HISTORY

US President Herbert Hoover described it as “a great social and economic experiment”. What was established across the US in January 1920 and remained in force for 13 years?

How many wives of Henry VIII were called Catherine?

Roman emperor Titus succeed Vespasian upon his death. How was this a ‘first’ when it came to Roman Emperors?

34Who is the Greek goddess of wisdom?

Lover of Julius Caesar and Mark Anthony, she was the most famous Cleopatra – but she wasn’t the first. What number was she?

36King Harold II beat the King of Norway at the Battle of Stamford Bridge in 1066. Who was the famous king, who’s death is often considered the end of the Viking Age?

37What county (not country) has the dubious distinction of hosting the largest and bloodiest battle on English soil, and name the battle?

38Recent research by the University of Leicester suggested which animal passed leprosy on to mediaeval humans in the UK?

39The Minoan civilization was centred on which Mediterranean island?

40What is the name of the ancient Egyptian sun god?

GENERAL KNOWLEDGE

41Not counting any continent, which is the world’s largest island?

42What country has the most lakes?

43Wich confectionary company celebrated the 200th birthday of its founding in March 2024?

44What is the name of the first computer programme virus, which was created in 1971 as a security test?

45What is a group of crows called?

46Who was the first Disney princess?

47In Harry Potter who is the eldest –Harry, Ron or Hermione?

48What is the difference between a brandy and cognac?

49Who was the first women to win the Nobel Prize?

50In which part of the body will you find the strongest human muscle?

To be in with a chance of winning send your entries to graham@pqmagazine headed 'Bumper Quiz' by Thursday 16 January 2025.

Thanks to our sponsors

Next Generation ACA

A refreshed, future-fit ICAEW syllabus is being launched in September 2025. We went along to ask one of the key architects of the Next Generation ACA, ICAEW Managing Director, Education & Training, Will Holt (pictured), who talked us through the redefined qualification

Q: How has the launch of Next Generation ACA gone?

A: The Next Generation ACA has probably been the worst kept secret out there! Basically, we talked to so many people to ensure we got it right. The launch was some six weeks ago now and the positive reactions shows we are moving in the right direction. What triggered us to look at the qualification was the fact that so much is going on, and so much is going to happen during the working lives of our ACA students. So, we listened to all our stakeholders to ensure we made the right changes to future-proof the qualification. The ACA qualification is a passport to a wide-range of careers and we need to protect that strength and relevance. The Next Generation ACA will ensure our newly qualified members continue to add value to all the organisations they work for.

Q: Are there some key themes in the changes?

A: We need to ensure the trusted role of the ACA is maintained, that’s really important to us. So, we asked the question – what skills and knowledge will be needed for the future? In turn we need to ensure ICAEW members and future members are ready and can thrive in the job market of today and the future. It will be no surprise to hear the three key themes that came out are technology, ethics, and sustainability. There are brand-new core modules covering each of these, and we have gone further by embedding these competencies at each level of the syllabus and across the qualification.

Q: What about the fundamentals of accountancy?

A: It is important to say that the key pillars will remain. We heard clearly, that keeping a focus on the fundamentals is the key to the future. It comes back to the ‘trust’ element. The Sustainability and Ethics module at the beginning of the qualification will delve into the fundamental principles of these topics, and the Accounting Fundamentals module reinforces the ‘basics of accounting’. Being able to understand and use double-entry is still really important, for example. A key role of a chartered accountant is still to show that the information being produced is ‘real and reflective of reality’. I honestly believe that AI will be used to

augment the role of chartered accountants rather than replace them.

Q: Qualification progression is important, how have you helped the process here?

A: The top – Advanced Level now has two case studies, and our aim is to make the journey to this final level a smoother gradient. The syllabus has been redesigned to enable a smooth, supportive, and attainable progression from Certificate to Advanced levels, providing more of a step-bystep journey. The Professional Level case study will help too, as a bridge to the next level. I am also passionate about the workplace and want our qualification to be more reflective of the real world. These three new case studies help to do just that.

Q: How are you supporting students moving forward?

A: The changes mean we are dropping from 15 to 14 exams. While the progression in levels are still there, we have made modules more integrated. The support we provide is also key. Question practice is the single most important thing students can do to increase their chances of passing professional exams. There is a longerterm project underway now to provide our students with more targeted question practice that focuses on the syllabus and core elements. I believe the updated syllabus will have a big

impact on professional skills, such as developing critical thinking and helping to create the skill sets ICAEW Chartered Accountants will need to bring to organisations alongside technology.

Q: Work experience is still important, isn’t it?

A: Yes, it is one of the key components of the ACA qualification. Students will still need a minimum of 450 days professional work experience. In truth, students learn just as much from their workplace experience as they do through exams, and this element remains as important as ever. It is vital students are in the right training environment that helps makes this learning happen, and we work closely with our authorised training employers to provide the right conditions for workplace learning for all our students.

Q: Can you tell us a bit more about the specialised learning development element?

A: We understand that no two people are the same, and there will be a myriad of areas they will need to develop. We all have different aspirations, and while some might want to become a partner or CFO, others will want to become experts in their chosen field. The new skills development framework, which is available from September 2025, will create a suite of resources to enable early career specialisation. These resources will be sector specific, allow technical upskills, provide professional skills, and look at emerging topics. Students will need to complete a minimum of 30 units of specialised learning from the platform and these will not be assessed - we are definitely not creating 30 additional exams! It is like pre-CPD, giving students learning for the direction they want their careers to travel in. We will be providing digital badging too.

Q: Any final thoughts?

A: The changes you see in Next Generation ACA have been bubbling away for a long time, and show we have listened to the market and made the right changes. We understand that so much is going on, and so much is going to happen during the working lives of our ACA students. We need our future members to be ready for the change and embrace it, and Next Generation ACA will help them do that.

Fast-tracking your career

John Bennett discusses the advantages of signing up to CIMA’s CGMA Finance Leadership Programme (FLP) to enhance your accountancy career

Historically, CIMA exams were rigid, requiring candidates to pass all their exams in just one sitting with a sixmonth wait to retake any failed ones.

In 2015, CIMA introduced more flexible, on-demand objective test exams and aimed at speeding up the qualification process. While this worked for some, others found the lack of fixed deadlines challenging and found it easy to defer.

For those who struggle with exams, CIMA’S CGMA FLP offers an alternative approach. Rather than sitting numerous objective tests, learners build their knowledge through continuous assessment, with just three case study exams, one at the end of each level. This eliminates the need to sit up to 12 exams, providing a more streamlined route to the CGMA qualification. The programme operates on a subscription model, granting access to all qualification levels and allowing learners to progress at their own pace.

While the programme offers greater flexibility it demands discipline. Without regular exam deadlines there is a risk of letting studies

slip – so commitment is essential. To support learners, the FLP Skills Premium programme offers live online tutorials led by experienced CIMA tutors. These sessions focus on linking technical content to case study scenarios, helping learners develop the practical skills

needed in real-world situations.

In addition, the programme includes a Case Study Review Course (CSRC), just before your case study sitting, that revisits key topics and applies them to the pre-seen CIMA exam material. Learners also benefit from three mock exams, designed to replicate actual exam conditions. These are marked and returned with feedback, offering invaluable preparation and insight into areas needing improvement.

For further assistance, learners can access the Academic Support team which are available outside of regular hours to answer technical queries. The CGMA FLP has produced excellent results and is a faster, fully supported pathway to achieving CIMA’S CGMA qualification.

For those ready to advance their career, or employers seeking to upskill their teams, CIMA’s CGMA professional qualification, via the FLP or traditional routes, offers an excellent opportunity.

For more information contact Kaplan’s Student Services team at student.services@ kaplan.co.uk

• John Bennett is a tutor at Kaplan

On your marks…

ACCA’s hit podcast is back with a second series to help you in your ACCA journey. Podcast host and Education Delivery Lead at ACCA, Krutika Adatia (pictured), tells us more

The exams are over for another session, so why not take a bit of time for yourself to reflect on your progress and refresh your goals? ACCA’s podcast series ‘On Your Marks’ is designed to help you wherever you are in your ACCA journey to explore techniques and tackle the process head on.

Series one has had over 79,000 downloads, with comments from listeners including “this is extremely insightful” and “bring more podcasts”, so we’ve listened and are bringing you series two.

In this series, Krutika sits down with experts ranging from leading academics to ACCA’s own chief executive, Helen Brand OBE, to delve into a range of topics beyond studying that could influence your success and inspire your journey after qualification. These include unpacking anxiety, the impact of sleep and nutrition on learning and cognition, balancing books and babies, uncovering your career values, to embracing leadership.

Here’s a quick guide to each episode: Episode one – Unpacking anxiety: Whether it’s last-minute jitters before an exam or a sense of panic when thinking about revision, we all know what it’s like to feel anxious. We talk to therapist

as Anxiety Josh. We dig into what’s happening in the brain when we’re feeling worried, and strategies we can all use to help us feel more grounded when it’s all getting too much.

Episode two – Brain-nurturing nutrition: Whether it’s feeling sluggish after a heavy meal or dealing with a sudden dip in energy during a busy workday, food really can influence how we

feel. But it turns out that what we eat can have a significant impact on our mental wellbeing, and the latest research shows that our gut has an important role to play. Nutritionist Dr Emily Prpa joins us to explore the science of the gutbrain axis and the microbiome and discuss strategies for adding gut-friendly ingredients to our meals to support our mental and physical wellbeing.

Episode three – Solving sleep: Struggling with sleep when preparing for a big challenge is common experience and so in this episode, we sit down with Professor Russell Foster from the University of Oxford. He’s been studying sleep for decades, and together we look into what’s happening in our brains when we sleep, why it’s so important for our health and wellbeing, and how we can prioritise our sleep to help us cope with stress.

Episode four – Parenthood: We know that studying for ACCA exams can feel overwhelming, but when you add care-giving responsibilities like parenting into the mix it can feel like a never-ending juggling act. Finance business manager Debbie Oluyemi has first-hand experience of studying for her ACCA qualification and becoming a new parent for the first time. We explore some of the key challenges she dealt with and what strategies helped her along the way.

Episode five – Careers: Choosing your career path can feel like a huge decision, there can be so many choices and expectations that it can be easy to feel pressured. Career coach Helen Tupper is the author of ‘Squiggly Careers’ and founder and CEO of Amazing If, an organisation that helps everyone feel more satisfied with their working lives. In this episode we find out how to build a career journey that’s right for you.

Episode six – Leaning into leadership: What does it truly mean to be a good leader? Maybe you’re actively seeking leadership roles, or perhaps it’s something you’ve never considered before. Leadership, after all, isn’t just about holding a title – it’s about how we influence and inspire others in our day-today actions. In this episode we sit down with ACCA Chief Executive Helen Brand. We dig into her career journey, the benefits of finding a good mentor, and how we can all look for opportunities to lead in our working lives.

View now or listen through wherever you get your podcasts

Hit ‘follow’ now so you never miss an episode, and why not let us know what you think by leaving a comment/rating or review? For more information about ACCA exams, you can go to www. accaglobal.com/exams

and author Joshua Fletcher, also known online

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How to learn from failure

CASSL Vice Chair Oliver Sighe explains

why exam failure is not the end, it’s the start of the next challenge

As someone who has been doing accountancy exams for a number of years, through AAT and now through ACA, they don’t always go to plan. Stepping back to understand that this is okay is vital and taking the time to reflect and to come back even stronger.

Accountancy exams can be rigorous, comprising intricate financial, auditing and managerial accounting content, testing not only knowledge but also perseverance. While success stories abound, failure is not something to shy away from talking about, as this is part of the journey. Understanding and learning from failure in exams is important and can assist with developing resilience.

I moved to London from Bristol in 2023. Because of health issues, the move, and three professional level ACA exams happening at the same time in the space of a month, the exams didn’t go to plan. They weren’t bad enough to become a risk to my job, but it did cause an incredible amount of stress and turbulence in my life.

It took several months for this to settle and for me to find the will power to attempt the exams again. The main things I learned during this time were:

• Reflect on why you failed the exam and the possible reasons that contributed to this. Hold yourself accountable to even the smallest points, as these can be built upon for future exams.

• All time is useful, so make plans to study before work or at other times. Attempt small questions or topics when you have a spare 30 minutes, saving the larger topics/ questions for when you have longer.

• Your routine, friends, hobbies and more don’t have to stop to allow for exams. These are vital for your health and well-being.

• Exam technique is critical to passing. Often questions require a proforma, and learning this can make answering the question much easier. It can even prompt you in the exam.

• Use what you are given. If the exam allows for open book or includes something such as Hardman’s Tax, you do not need to spend time learning certain things. Use this in your practice questions to focus on what you need to know, and how you can use given materials to help.

The reality of failure

Failing an exam, particularly in a field as prestigious and competitive as chartered accountancy, can feel devastating. For many, it strikes at the core of self-worth and your ambition. This is compounded by the high stakes involved – whether financial investments in courses and materials, time sacrifices or the emotional toll of repeated late-night studying. Statistically, pass rates for exams, such as the ACCA or ICAEW, are often below 50% for certain papers. This reflects the exams’ rigor and the emphasis on not just learning but practical application.

Firm exam polices

be seen as encouragement, it doesn’t consider that other things in life can impact an exam. If you do find yourself in this situation, it isn’t the end of the world. As Vice-Chair of CASSL I’ve spoken to countless people who have found themselves being asked to leave their firm due to failing an exam. Nearly all of these are now working at a different firm, feeling more valued and enjoying their work more. Admitting the failure and being honest in their interviews allowed them to enter their new firm honestly and with the support they needed.

The emotional and psychological impact

Failing a CA exam is not just an academic setback – it often triggers significant emotional distress. Feelings of embarrassment, self-doubt and frustration are common. A failure may also provoke a fear of judgment from peers and mentors, exacerbating the isolation many candidates already experience.

Overcoming the fear of failure

Addressing psychological hurdles is as important as revisiting the technical aspects. Recognizing that failure is part of growth is essential. Many successful accountants admit to failing at least one paper during their qualification process. This shared experience can be empowering.

Mindfulness, stress management and realistic goal setting can also play a role in maintaining mental health. Techniques such as meditation, physical activity and scheduling breaks into study plans can prevent burnout and promote a healthier, more sustainable approach to exam preparation.

Turning setbacks into success

The path to becoming a chartered accountant is paved with challenges that test both intellect and character. Embracing failure as part of this process rather than as an anomaly can shift the mindset from self-blame to self-improvement. Each failed attempt provides a blueprint for what not to do next time, carving the path to eventual success.

To conclude, failing a CA exam is not an endpoint but a powerful learning opportunity. The resilience built through facing setbacks is what ultimately shapes competent, wellrounded professionals capable of navigating the complexities of the finance world. By understanding, accepting and growing from these experiences, aspiring CAs can turn their temporary defeats into lasting triumphs.

Many firms put failure consequences in place to scare/motivate students to do well and apply themselves to their exams. While this should

• Oliver Sighe is Vice Chair of The Chartered Accountant Student Society of London (CASSL)

The top trends for 2025

Karen Young, a director at Hays specialising in accountancy and finance, delves into the latest salary survey

Navigating the world of work over the past 12 months has been a rollercoaster ride, with many twists and turns including economic uncertainty, government changes, ongoing cost-ofliving worries, widespread skills shortages, rapid AI advancements, flexible working tensions – and more!

Thanks to our latest research, known as the 2025 UK Salary and Recruiting Trends guide, we can look back at how these factors have impacted PQs throughout 2024 and the ways in which they are predicted to shape the finance landscape in the year ahead.

A time for nurturing talent

According to our research, almost all (92%) accountancy and finance employers experienced skills shortages in the last year, an increase compared with the year before (88%). The skills gap has reportedly had a negative impact on productivity (50%), employee morale (42%) and their ability to deliver projects (36%).

Over the past year, salaries across accountancy and finance increased by an average of 3.6% and part qualified accountants have seen larger increases (5.8%) due to strong demand but a shortage of talent. With more than three quarters (77%) of employers across the sector expecting to encounter a shortage of suitable applicants in the year ahead, it’s no wonder organisations have had to rethink their hiring strategies.

Although qualifications, experience and an existing skillset are of course valuable, it’s clear that employers are becoming more open minded about nurturing, and not just consuming, talent. While 53% of employers say it is very or quite important that an applicant has a degree, just under half (47%) say an applicant’s academic achievements are not the be-all and endall to them. Significantly, a large majority of finance employers say someone’s willingness to learn is more important than their existing skills (75%) and that they are likely to hire a professional who does not possess all the required skills, with the intention of upskilling them (77%).

AI training not yet up to scratch

Despite the widespread rise of AI, just two in 10 (20%) PQs are currently using AI tools as part of their role, and only 12% have received training or support from their employer to adopt AI technologies. Employers are evidently missing a trick though, as more than eight in 10 (84%) PQs would be willing to take part in upskilling or reskilling programmes to adopt AI in the workplace.

In today’s ever-evolving digital age, it’s crucial to seek out training opportunities, in order to be able to utilise AI tools to enhance your everyday role. Adjusting to new technologies takes trial, error and patience, but is essential for keeping up with the pace of change and ensuring you have the skills necessary to futureproof your career.

Flexible working continues into 2025

As it stands, seven in 10 (70%) finance employers offer their staff the opportunity to work in a hybrid way and close to half (48%) say this has increased talent retention across their organisation. Looking to the year ahead, eight in 10 (80%) employers say their hybrid offering will stay the same, versus 17% who anticipate their staff will be required to come into the workplace more often.

Most PQs (56%) are currently working under a hybrid model, with close to a third (29%) based fully in the workplace and just 15% working entirely remotely. As our research shows, hybrid working is on the rise, as just under half (48%) of PQs were working in a hybrid way in the year before last, compared with over a third (37%) who were based in the office and only 15% who worked fully remotely.

After delving into our exclusive research findings, PQs will hopefully feel empowered to continue their career journey in 2025 equipped with the relevant knowledge, insights and confidence to both embrace the opportunities and overcome the challenges that await.

To see the salary guide in full go to: https://www.hays.co.uk/salary-guide

North West

West Midlands

South West

North East

Wales

Yorkshire & the Humber

East Midlands

East of England

London

South East

Accountancy by numbers

The latest report from the FRC provides a ‘state of the profession’ update

Membership of the accountancy bodies based in the UK and Republic of Ireland (ROI) continues to grow, and now stands at over one million worldwide, according to the FRC’s Key Facts and Trends report.

The seven bodies in the report have over 405,000 members in the UK and ROI, and more than 616,000 additional members worldwide. The growth in membership between 2022 and 2023 was 1.9% in the UK and ROI, and 1.7% worldwide.

However, the decline in student numbers that we saw in 2022 in the UK and ROI has continued for 2023. Between 2022 and 2023 student numbers in the UK and ROI fell by 0.2%, but increased by 0.1% worldwide. This compares with falls of 3.5% and 2% respectively for 2022. In number terms that means there are 155,000 students studying accountancy in the UK and ROI, and over 580,000 worldwide.

In total, 97% of AIA and 84% of ACCA students were based outside the UK and ROI. In contrast, ICAS and CAI had less than 1% of their students based outside the UK and ROI. In total, 27% of students from the accountancy bodies were studying in the UK and ROI.

ICAEW, CAI and ICAS had more than 85% of their students complete their training in four years or less. Only 12%, 15% and 15% of their students were registered for more than four years as at 31 December 2023.

Where you are working

The industry and commerce sector employs the highest average percentage of members (54%) and employs the highest average percentage of students (35%) across the

accountancy bodies. AIA and CIMA members in the industry and commerce sector make up 87% and 71% of their respective total membership.

Some 86%, 79% and 75% of ICAS, CAI and ICAEW students respectively are working in practice. This is in contrast to the other bodies, where only 3% or less of their students are working in practice.

The total number of students who became members worldwide fell by 5.9% in 2023, compared to a fall of 0.8% in 2022 and an increase of 4.5% in 2021.

Matter of degree

You really don’t need a degree to study for a professional accountancy qualification, as the stats show. While 91% of ICAS and CAI PQs have a degree, in stark contrast just 23% of ACCA and 35% of CIPFA trainees start their accountancy studies with one.

Women in accountancy

Since 2019 all the accountancy bodies (except CIMA, which remains at a constant 36%) have increased their percentage of female members worldwide. AIA experienced the largest increase of two percentage points in this period, mainly down to a 5.4% increase this past year. At 49%, ACCA now has the highest percentage of female members of all the accountancy bodies by some way. ICAEW has the lowest percentage at 32%. For 2023, the overall percentage of female members worldwide was 40%.

Meanwhile, the overall percentage of female students is 56%, helped by ACCA with 59% of its students being female (the highest). ICAS has the distinction of having the lowest percentage of female students. The worry will

be the big fall year-on-year from 43% to 37%.

Matter of age

There were significant differences in the age profiles of the worldwide members of the seven accountancy bodies in 2023. CAI, ACCA and ICAS had relatively high proportions of members under the age of 35 at 26%, 23% and 23% respectively, while CIPFA had the largest percentage of members aged 45 and over at 75%, followed by CIMA, ICAEW and AIA at 62%, 59% and 59% respectively.

The largest proportion of worldwide members were aged between 35 and 44 in 2023, accounting for 28% of the total populations, followed by members aged 45 to 54, making up 24% of the total population.

In 2023, 76% of all students from the seven accountancy bodies were aged 34 or under, compared with 78% in 2019.

ICAEW, ICAS and CAI had the highest percentage of students aged 34 or under, at 97%, 97%, and 89% respectively. In comparison for CIPFA, of those declaring their age (33% didn’t), the largest proportion of students were aged 35 (over 49%).

Show us the money

Annual income generated from all members and students remains relatively stable for all the bodies. ACCA continues to have the highest income generated out of the seven bodies at £246m in 2023, the largest increase among the seven (at 11.8% for 2023). However, it is ICAS that earns the highest average income per member and student population, at £707.

• Check out the FRC’s Key Facts and Trends in the Accountancy Profession at https:// tinyurl.com/44rxdutw

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A question for Tom

Tom Clendon (pictured) explains options issued as part of business combination

The question

What’s the accounting for options issued in a business combination by the parent to the staff of the subsidiary as replacement awards to an existing scheme?

Tom’s answer

Gosh, that’s a big technical question! My answer assumes that you are basically familiar with IFRS 2 Share Based Payments. Let me explain and also illustrate how this works.

Setting the scene

In a business combination the consideration paid by the acquiror for the controlling interest in the subsidiary must be recorded at the fair value of the consideration given.

However, where the subsidiary has previously issued share options (equity settled sharebased payments) to its staff and by the acquisition date these have not vested, then the parent will have to buy out this equity interest as part of its purchase consideration. This can be done by the parent issuing new replacement options.

The accounting challenge will then be to analyse the value of these new replacement options and split them between compensation for the pre combination interest and any post combination incentives.

Splitting the value between pre and post

The amount of the new replacement options that represent pre combination services are capitalised as part of the cost of the investment as they relate to a payment for an equity interest in the subsidiary.

The amount of the replacement options that is pre-acquisition will be the proportion of the value of the original options that has been completed.

Whilst the amount attributable to post combination services will be spread through the profit and loss as an expense over the vesting period because that will relate to future employee service.

But this is all best further explained and understood in a worked example.

Practice question: Wang and Hiren

Wang has just acquired all the equity shares in issue of Hiren for $100 million paid in cash. As 100% of the shares were acquired there will be no non-controlling interest.

Three years ago, Hiren had granted equity settled share payment awards to its staff. These were due to vest after five years – i.e. in two years’ time. Accordingly, in addition to paying $100 million cash for the shares, Wang issued replacement equity awards to the employees of Hiren with a fair value of $51 million and that will vest in two years after the date of the acquisition.

At the date of the acquisition the fair value of the original share award issued by Hiren was $25 million.

The fair value of the net assets of Hiren at the date of acquisition was $70 million.

Required: Explain how Wang will account for the issue of the replacement share based payment awards. Calculate goodwill arising on the acquisition of Hiren.

Answer – Wang and Hiren

When Wang issues those replacement equity awards with a fair value of $51 million to the employees of Hiren, in substance, it is partly buying out the employees’ equity interest in Hiren (the pre-acquisition element) and partly providing the employees’ with options in Wang –as a future reward in their capacity as employees of the Wang group (the post-acquisition element).

The element of the replacement equity award of $51 million that is pre-acquisition will be based on the value of the original options by the ratio that has been completed. $25 million x 3/5 = $15 million. This will be accounted for as part of the parent’s investment in the subsidiary. Dr Investment in Hiren $15 million Cr Other Components of Equity $15 million. As a result, goodwill will increase.

The post-acquisition element is therefore the balance. $51 million less $15 million = $36 million. This will then be spread through the profit and loss account of Wang over the twoyear vesting period. In the first two years after the acquisition the annual entry is Dr PL $18 million and Cr Other Components of Equity.

Goodwill calculation

The goodwill that arises on the acquisition of Hiren will be the difference between the fair value of the consideration that Wang has paid for the controlling interest and the fair value of the net assets of Hiren acquired. In addition to the cash paid of $100 million for the shares, $15 million of the replacement awards also related to the purchase of an equity interest.

Payment on account explained

Nick Craggs explains a topic that features regularly on the the level 4 Business Tax exam

As someone who has been recording our materials for the AAT FA24 tax courses that the Chancellor has just made out of date, I thought this month I would choose a subject in tax that never changes. So I am going to talk about the payment on account system that comes up in the level 4 Business Tax exam. If you are employed your employer takes your tax and National Insurance (NI) off you every time they pay you, so you don’t have to worry about paying it, and also HMRC don’t have to worry about you not paying them.

However, if you are self-employed HMRC can’t take their tax from when you get paid, as what customers pay you isn’t your taxable profit for the year. HMRC are reliant on you (or your accountant) telling them how much profit you have made through your self-assessment form, and only at that point will HMRC know how much tax you need to pay. HMRC use the payment on account system to help you pay your tax so you don’t have to pay it all in one go. It also increases the likelihood of HMRC getting paid as well.

There are two key dates: 31st January and 31st July. The January one is the deadline for submission of the previous tax year’s tax return. Anyone working on their tax return at the moment will be working on the 2023/24 tax return, which runs from 6th April 2023 to 5th April 2024. This must be submitted to HMRC by 31st January 2025 at the latest. This is also the latest date that you will calculate how much tax you have to pay, and pay the tax owing.

Take an example of someone who started their own business on 6th April 2023 and prepares their accounts to 5th April 2024. They then submit their tax return on 31st January 2025. At this point they calculate the amount of tax and NI they owe at £3,000. They will need to pay their tax for the 2023/24 tax year, but they will also need to pay their first payment on account for the 2024/25 tax year. That’s right, they are making their first payment of tax for the 2024/25 tax year in the actual tax year. You won’t know how much profit you will have made at that point, but you will be expected to make an estimated payment towards it. The estimate is based on half of your tax bill from the previous year. Taking our example where someone owes £3,000 for their 2023/24 tax year, they will also have to make their payment on account of £1,500 for the 2024/2025 tax year. The payment on account of £1,500, and the tax they owe for

2023/24 of £3,000 will make a total payment of £4,500.

The taxpayer then makes their second payment on account on 31st July following the end of the tax year. In our scenario our taxpayer would pay a second payment on account on 31st July 2025 of £1,500. Even at this point in time they might not know what their actual tax liability might be. They might not know what their tax bill is until 31st January 2026, which is the deadline to submit their tax return. At this point they know what they owe HMRC; however, due to the fact they have made some payments on account they won’t have to pay it all, or maybe even get a refund.

If we return to our scenario, and the taxpayer has now calculated their tax liability to be £4,000, they can deduct the two payments of £1,500 so they only owe £1,000 for the 2024/25 tax return. That, unfortunately, isn’t all they will have to pay. They have paid the balance on their 2024/25 tax year, but they will also need to pay their first payment on account for the 2025/26 tax year. Again, this will be based on half of the

previous tax year’s liability, which will be half of the £4,000, making a payment £2,000 for the payment on account and £1,000 for the balancing payment for the following year.

Conversely, if the tax liability for 2024/25 was only £2,500, and they had paid two payments of £1,500 each, they would have paid too much. This would result in a tax refund of £500. However, they wouldn’t get this back, as they will need to make their first payment on account for the following year, but this time it will be half of the £2,500. The refund of £500 will offset the payment of £1,250 leaving an amount payable of £750.

If you assume the taxpayer always does their tax return at the last possible moment, the 31st January after the end of the tax year, they can only know their tax bill at that point in time. It is then that they will have to make the balancing adjustment between what they owe, and what they have paid with the two payments on account.

• Nick Craggs, AAT distance learning director, First Intuition

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The rest is still unwritten

You should use the upcoming holiday season as a chance to relax, re-set and re-focus. You’ll really feel the benefits, says Nasheen Wuisman

Ilove this time of year… the weather starts to change, there’s a lovely cold, fresh feel in the air, or it’s pouring with rain. Either way, it’s a sign the end of the year is fast approaching.

I start to think about the year that is coming to a close. I like to think about what I’ve achieved, what I’ve learnt and how I’ve grown. I reflect on what I’ve found out about myself and others around me. Think of the people I’ve met and the people I’ve lost contact with.

And then I like to think about how all these things are going to impact me in the new year, and the years to follow. I also take some time to think about the things that brought me disappointment and sadness, things I feel could and might have gone differently, and the lessons I need to learn to be a stronger version of myself.

Taking a pause as the holidays approach allows you to untangle and interpret all the decisions that you’ve made this year and consider the decisions you hope to make in new year.

Dedication and resilience

When you first embarked on your journey to earn the CGMA qualification you knew it was a significant commitment that requires dedication and resilience. And I am sure that, at times, it may have felt like you were not progressing fast enough.

Maybe you thought you would have worked through the levels faster, or maybe should have passed more exams by now. Could you have? Realistically and fairly, could you have? Think about challenges you might have faced at work, at home, with relationships, or maybe even regulating your emotions when life becomes overwhelming.

Reflecting on your CGMA journey

I want you to join me and to take some time to reflect on your journey over the past 12 months. I want you to celebrate how far you have come. Which subjects did you excel in or enjoy even? Which exams were you successful in? Write everything down, do your own performance evaluation. You will find you have achieved far more than you thought, and this can be incredibly motivating, especially if the year has left you feeling worn or deflated.

The next step is to identify what you have struggled with. Ask yourself: were there any subjects or competencies that you found particularly challenging? Do you understand why you found them difficult? And if you are still struggling with it, is there someone that you can ask for help?

Once you have completed your selfevaluation, I want you to set yourself some realistic goals for 2025. For example, is there a particular CGMA exam or exams you want to pass in 2025? Breaking down your goals into

manageable tasks can make them more real and therefore more achievable.

Embrace the process

To succeed in any learning journey you need to learn to enjoy the process – I hear you laugh, but it’s true! A cram, pass and move on approach won’t work for your professional exams. You may have been lucky in the past as it might have worked for you in certain subjects; this doesn’t, however, mean you have acquired the skills, competencies, behaviours needed to succeed in the workplace. Spacing your study out over a period of time allows for a deeper understanding and more solid embedded learning, the kind that allows you to be a successful qualified professional.

Nothing is more effective than practice at helping you learn. As you enter the new year, never underestimate the value of making time for question practice and mock exams when you plan for an exam.

If you don’t practise, then you don’t know whether you have the necessary skills to be successful in the exam. How do you know your ability to recall technical knowledge, or to manage your time? How do you know how you fair under pressure for this particular exam, being tested on these specific topics or at this level? If you’re anything like me, there were subjects that I understood and therefore, dare I say, liked, but then there were others that looked like they were derived from an unknown ancient language, which took a lot longer to

decipher!

Practice allows you to make mistakes – but mistakes are golden, they’ll show you how not to approach a question, a task, an exam. They’ll highlight any weak areas, and in turn they’ll help you develop a healthy behaviour towards your study, your learning and planning your success in the year ahead.

Life beyond the qualification

Your mental and physical health are extremely important to support your CGMA journey. Ensure you’re getting enough sleep, eating well and exercising regularly. I know this gets trickier at the end of the year, as the nights draw in and it’s cold outside, and when you’re trying to juggle multiple personal and professional responsibilities in a very short time.

The festive season is, however, the perfect time to unwind and recharge, even if it’s in small bursts. Make sure to spend quality time with your family and friends, absorb the joy and celebrations around, do activities you love, and allow yourself to disconnect and (if the little people in your home allow you to) maybe even relax. While it’s important to stay on top of your studies, it’s equally important to take breaks and enjoy life. Taking a few days off will not derail your success, it’ll only enhance it.

Happy holidays!

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

smaller,

December exam feedback

The December exams are over, but how much of a disaster where they for sitters? Find out here…

“Section A was something else,” according to one AA sitter. Another PQ said it was “a complete disaster with hardly any straightforward questions”. It was the most bizarre set of MTQs some had ever seen!

To counter this, section B was described as “not bad” and “a typical paper”.

In the Open Tuition Instant Poll, 10% of sitters said they had a ‘disaster’, another 23% found the paper ‘hard’ and 57% felt it was ‘OK’. That left 10% feeling the exam was ‘easy’.

AAA

What was generally agreed upon was the fact that the pre-seen was not really needed. The exhibits were also deemed unnecessarily long.

The Open Tuition Instant Poll was pretty evenly split between ‘disaster’ (33%), ‘hard’ (36%) and ‘OK’ (29%).

PM

This paper was described as both ‘brutal’ and ‘hard but fair’!

It seems sections A & C were fine for most, but many found section B too long and ‘tough’.

In the Open Tuition Instant Poll, 43% of sitters said the exam was ‘hard’, and another 20% felt they had had a ‘disaster’. Just 34% felt the exam was ‘OK’.

FR

The exam was ‘actually OK’, with section C the easiest for some. Section A threw a few people, but most hope they did enough in sections B and C to pass.

The heavy amount of calculations in Section A did mean, however, that some sitters ran out of time.

In the Open Tuition Instant Poll, 49% of voters ticked the ‘OK’ box, and another 5% thought the exam was ‘easy’. That left 36% saying it was ‘hard’ and another 9% had a ‘disaster’.

SBR

Many agreed the question on ROMM was “very difficult” this sitting. Some found the paper very time pressured, and others found it a pain to hunt for the risks in Q1.

Some 16% of those voting in the Open Tuition Instant Poll said they had a ‘disaster’ of an exam. Another 41% found the paper ‘hard’.

TX

Sections A and B got the thumbs-up from sitters, but section C was a bit trickier. But generally not a lot of love or hate around.

Voting in the Open Tuition Instant Poll saw 19% pressing the ‘disaster’ button and 28% opting for ‘hard’. For the rest it was either ‘OK’ or ’easy’.

SBL

The SBL December exam was described as ‘awful’ and ‘very tricky’, ‘horrible’ even.

Those who got the joint venture question did not enjoy it. One PQ felt the exam, like the joint venture question, was all a bit generic.

Many struggled for time too, and struggled to find enough answers for the mark allocation. As one sitter said; “Seemed very woolly compared to practice questions.”

Some also felt the questions were abstract and were unsure of which model to use.

Some sitters thought their section C budget control question was much harder than the relevant costing and the build block one others got! Not sure how they know, but one sitter felt it “hardly seems fair”.

According to the Open Tuition Instant Poll, one in five sitters (20%) had a ‘disaster’. Another 36% found the December exam ‘hard’.

APM

Sitters didn’t find this exam easy. A third-time sitter felt very dejected after the exam. They had worked very hard, done all the specimen papers, read all the technical articles, but the exam resembled nothing they had seen before.

Some 16% of sitters voted the exam a ‘disaster’ in the Open Tuition Instant Poll. Another third (35%) found the exam ‘hard’. That left 45% thinking it was ‘OK’.

ATX

Quite a few sitters felt this the hardest ACCA exam they had ever sat. Many sitters admitted they struggled to answer the last question properly. Time management came into play big time, and students struggled to concentrate as the clock ticked away.

Section B was a disaster for some, with many calling it ‘hard’ and ‘not nice’.

One of the most ‘liked’ papers this time around. Some 65% of voters in the Open Tuition Instant Poll ticked the ‘OK’ box, and another 5% felt it was ‘easy’.

One sitter even suggested it was easier than the BPP exam practice questions.

FM

A ‘mixed exam’, with an OK section C, is how one sitter described FM this time around. Sections A and B were deemed difficult with some tricky questions.

In the Open Tuition Instant Poll, 16% voted the exam a ‘disaster’ and another 36% felt the exam was ‘hard’. What is interesting is 13% said the exam was ‘easy’ – easy rarely gets such a high vote.

AFM

This exam was a ‘disaster’ for 19% of sitters, according to the Open Tuition Instant Poll. Another 41% said the exam was ‘hard’.

One student said the exam for them was an ‘unmitigated disaster’, and was expecting single digit/low double-digit marks come January.

Many were not ready for the swaps question. As one sitter said: “Currency swaps are rarely tested… yeah OK, only in June 2024 exam and this one!”

• The December results will be issued on Friday 17 January 2025.

How are net wages calculated?

Karen Groves explains how to approach a payroll exam style question and tests your knowledge on the subject

The payroll department staff are responsible for correctly calculating the amount of pay to each employee and ensuring the employees are paid on time. After all, as employees, we want to be paid on time and receive the correct amount!

The gross pay is the total amount earned by the employee and can comprise of basic pay plus other elements such as:

• Overtime pay

• Bonuses

• Commission

• Holiday or sick pay

Employees rarely take home their gross pay as the government requires the employer to make certain deductions from gross pay before it is given to the employee. Income tax and national insurance contributions are the main statutory (compulsory) deductions and any student loan repayments.

The net pay (take home pay for the employee) will include:

Gross Wages X

PAYE (Income Tax)(X)

Employee’s NI (X)

Employee’s Pension(X)

Other deductions(X) X

Income tax is a tax on an individual’s income, and the rate depends on the amount of their income. All employees are entitled to some tax-free income, which is known as the personal allowance. This is the amount that an employee can earn before paying tax.

National insurance is a scheme which pays towards benefits including jobseeker’s allowance, retirement pensions and maternity allowance. Most employees who earn above a certain level must pay national insurance contributions.

In addition to income tax and national insurance contributions, the employee can ask the company to make deductions from gross pay, for example for a pension scheme, to contribute to charity (payroll giving) or union subscriptions.

The statutory and voluntary deductions reduce the take-home pay of the employee. The deductions are withheld by the employer and forwarded to the appropriate external agency when due. For example, income tax and national insurance contributions are forwarded to HM Revenue & Customs. Until the deductions are sent, they are liabilities that reflect what the business owes.

Employers are also required to pay employer’s national insurance contributions and often contribute towards the employee’s pension.

The total cost (expense) to the employer of employing a member of staff includes the gross pay plus the employer’s contributions.

The payroll staff will enter the payroll costs into the bookkeeping system. A Wages Control Account will be used which is a double entry account. The cash book will be used to show the net payment of wages; however, the entries are first listed in the journal. The Wages Control Account is a control account through which all the postings relating to wages are made. Once all the amounts have been posted, the balance on this account will be zero.

Below is a summary of the totals of the wages book for the month of May 2024.

to the employees includes:

The journal entries needed in the general ledger are as follows: Wages

include:

Question

This is a summary of EC Ltd’s payroll for May 2024:

What is the total wages expense for the month?

Answer = £168,750 + £19,500 = £188,250

What is the amount owing to HM Revenue & Customs for the month of May?

Answer = £37,020 + £19,500 + £16,594 = £73,114

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

Prevention is better than cure

CIPFA and the Health Foundation’s have launched a new prevention project with London Borough of Merton Council. So what does it hope to achieve?

Aproject to better understand local authority spending on mental health prevention has been launched by CIPFA, supported by the Health Foundation.

At a time when public services are under immense strain, the project seeks to help policymakers build stronger cases for prioritising long-term preventative strategies – an approach that could be game-changing for both community wellbeing and financial resilience. Central to this effort, the project aims to refine a methodology for quantifying local authorities’ preventative spending.

But what exactly does prevention mean, and why is it so vital? Prevention extends beyond traditional health and social care, encompassing the conditions that enable communities to thrive – such as housing, access to education and skills training, good quality jobs, reliable transportation, clean air, safe environments and strong social connections with family, friends and the community.

CIPFA’s project is working to change that by supporting a twin-track approach, calling for simultaneous investment in both acute services and long-term prevention strategies. The ultimate vision? Healthier, more resilient communities, and a more sustainable public sector capable of delivering better outcomes for all.

London Borough of Merton is the first council to join this innovative project. We spoke with Anthony Hopkins, Director of Culture, Libraries and Sport at Merton to discuss what motivated the council to join the project, how prevention fits into their broader strategy, and the importance of collaboration in driving these efforts forward.

1. Could you share what drew you to CIPFA and the Health Foundation’s Exploring Preventative Investment in Local Government in England project ?

There are a few factors that drew us to this project and, in many ways, it’s been a case of the stars aligning both nationally and locally.

We’re just over a year into our efforts to make Merton London’s first-ever Borough of Sport, a council priority that truly has prevention at its heart. It’s been a useful prism through which to examine and in some cases expand our prevention work. It will also provide a real focus point for this partnership. The fact that our Borough of Sport efforts are truly cross-council – with departments as wide ranging as social care, community safety, regeneration and leisure involved – means we have an opportunity to develop a real picture of organisational spend. The new government’s focus on prevention is, of course, welcome and will hopefully bring more focus to the work that we and all local authorities are doing on key strategies like our Health and Wellbeing Strategy and our Local Health and Care Plan. But this type of research work isn’t something that Merton, or any local authority,

could easily undertake alone, so we were excited to join the partnership and shape the national picture of prevention spending. We recognise the expertise and perspective that CIPFA and the Health Foundation both bring to the project, and we’re thrilled to work with them to look at our efforts in such detail. The findings from this project will also help the council better articulate and measure the impact of the ground-breaking suite of projects it is implementing for the Borough of Sport.

2. Merton aims to become London’s first-ever ‘Borough of Sport’. How does prevention factor into this vision, and how do you see it contributing to better health outcomes for residents?

Prevention is a key driver of Merton’s mission to become London’s Borough of Sport, enabling residents to lead healthier and more vibrant lives for longer. We interpret sport in the broadest possible sense – supporting people to move more in ways that work best for them. We have designed our efforts through an equity lens, ensuring that everyone has access to these benefits. This means introducing initiatives spanning all four stages of prevention, from universal to highly targeted programmes.

Our approach starts with primordial prevention, establishing foundations for healthier lives by making movement accessible and enjoyable for all. Universal programmes like our online activity finder and free swimming options aim to build healthy, active habits.

At the other end of the spectrum, tertiary prevention programmes provide specialised support to those already managing chronic health conditions, ensuring they, too, can benefit from regular physical activity. For example, our partnership with Alzheimer’s Society has led to dementia-friendly swimming sessions and ‘Feel Good Folders,’ innovative resources that enable residents with dementia to stay active.

This project will help us not only map the departments and services involved in delivering this priority but also quantify the council’s financial inputs thus far. We hope that this information will guide decision-making, ensuring we effectively allocate resources and maximise the benefits for all residents.

3. What role do you think collaboration with other councils and organisations, like the Health Foundation and CIPFA, plays in advancing prevention-focused initiatives?

Joined-up collaborative work with respected organisations such as the Health Foundation and CIPFA is always welcome. It helps advance our shared thinking and draw in expert support and guidance. The focus around this project will also enable us to develop more sophisticated evidence-based approaches to evaluating our Borough of Sport projects and further develop cross-council department collaboration.

Becoming a borough of sport is, in the first instance, a Merton specific initiative. That said, we also really want to share what we’ve learned from this work with other councils and organisations. Our hope is that this work becomes a blueprint and that we see more people follow our lead to better understand their current levels of preventative spend, or even to create boroughs, and indeed cities, of sport in their areas, too.

4. How important is it for central government to support local authorities in their efforts to focus more on prevention?

This is critical, and it needs to be more than simply the development of case studies and examples of good practice. The dialogue also needs to be two-way. Local authorities are on the ground and know the places and people they serve inside and out.

While increased funding will always be desirable – whether that’s through ring-fenced public health settlements or otherwise – we also need to see prevention woven through policy across all departments. Of course, this will become easier for government to do meaningfully when we have a stronger business case for investing in prevention that projects like this are helping to create.

5. Finally, what advice would you give to other councils considering joining CIPFA’s project or rethinking their approach to preventative spending?

We would encourage other councils to get involved. We have been very impressed with the initial communication and planning we have had with CIPFA and feel that the work we are developing will lead to meaningful results in terms of quantifying preventative spend and later evaluating the impact of our Borough of Sport initiatives.

We hope the framework that we develop will be another tool that councils can use to make the case for investing in prevention.

• CIPFA and the Health Foundation’s project remains open to additional councils interested in exploring their levels of preventative investment. To participate or learn more, contact Zachary Scott, CIPFA Policy Researcher on Prevention – email zachary. scott@cipfa.org

Staying safe

Rachel Spence explains how you can safeguard financial data and prevent security breaches

Cyber technology has almost become a part of us, it is integrated into our daily lives, it is entwined within our routines.

Just like many, I couldn’t imagine a world without technology – I have grown up with it, I have seen it advance mostly for the better, making our lives easier, all information is stored in one place.

I look around and all I see are mobile phones, laptops, tablets and computers; information is easily accessible wherever we are in the world. However, in some cases for the worse, it has become so much harder to switch off and get that much-needed rest. And it makes it so much easier for hackers and fraudsters to obtain sensitive data.

Accountants, in particular, are prime targets for cyberattacks. Attackers know that accountants handle highly valuable information, including personal client details and corporate financial data. As technology continues to advance, so does the frequency and sophistication of cyberattacks. Therefore it is vital to prevent data breaches to avoid financial losses and protect both your reputation and client trust. To help mitigate these risks, here are five practical tips for safeguarding your data and making you less susceptible to cyberattacks.

Strong password policies

This one seems obvious, but it still surprises me how many professionals use common passwords or those that are easy to guess, such as their date of birth or their favourite sports team.

Instead, use passwords that aren’t going to be easy for anyone to crack, make them unique by including a mixture of upper and lowercase letters as well as numbers and symbols. If available, I would encourage the use of multifactor authentication (MFA) technology to add an additional level of security when accessing sensitive data.

Encrypt financial data

By encrypting sensitive data, unauthorised users will not be able to access documents even if the data has been intercepted. This is one of the most critical defences in cybersecurity as it is transforming sensitive information into an indecipherable format – only authorised people with the correct decryption key will have access. It offers an additional protection layer for both individuals and organisations.

Update software and systems

Outdated software is a common vulnerability that cybercriminals exploit. Ensuring that all software and systems are regularly updated helps protect against emerging threats. Antivirus software and firewalls are vital tools in preventing data breaches, but they are only effective if they are up-to-date. Scheduled updates fix bugs and may also include checks for malware, further enhancing security.

Monitor for suspicious activity

Software is available that provides real-time monitoring and alerts for any unusual activity,

such as unauthorised activity login attempts or large transfers of data. For example, by completing a regular audit access log of financial transactions it can help to identify any potential breaches or unauthorised activity which can then be further investigated.

Secure storage and backups

As cloud-based software becomes more prevalent in accounting it’s essential to ensure that cloud providers implement robust security measures, including data encryption and secure authentication processes. Regular automatic backups to a secure offsite location are crucial to reducing the risk of data loss in the event of a breach or system failure. Backup solutions ensure that even if primary data is compromised you can quickly recover and restore operations without significant disruption.

Conclusion

In today’s interconnected world, cybersecurity is a constant concern, especially in the accounting profession. While implementing strong security measures reduces your vulnerability to attacks it’s also essential to prepare for the worst. Having an incident response plan in place is a critical part of your defence strategy. This plan should outline the steps to take if you experience a breach, including how to notify affected clients, secure your systems and restore normal operations.

Even though the goal is to avoid ever needing to use this plan, having one ensures you and your team can act decisively in a stressful situation. Regular simulations of the incident response plan can help you and your employees stay prepared, ensuring a quick and effective response in the event of a real attack.

By taking proactive steps to secure sensitive data and planning for potential breaches you protect not only your firm’s reputation but also your clients’ trust.

• Rachel Spence, MAAT

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 not hearing back from roles that I’m applying for – could my CV be letting me down?

KAREN’S RESPONSE

While it could be down to external factors, such as market conditions, your CV is a good place to start when reflecting on why your job search has not yet been successful. So here are some factors to consider to ensure you don’t fall at the first hurdle.

Firstly, a generic personal statement suggests you are submitting the same CV for every job you’re applying for, which might deter hiring managers from progressing your application. It’s important to immediately spell out why you’re interested in the specific role and why you’d be a great fit.

Secondly, any errors on your CV, whether that’s timeframes that don’t line up or spelling and grammatical mistakes, create the impression that you lack attention to detail. Proofread your CV and ask someone else to scan over it to check all the information is factually correct, organised and reads well. This is also a good opportunity to ask: is my CV tailored to the particular position I’m applying for?

Thirdly, CV clichés with no context fail to depict your abilities as an individual. Anyone can use phrases with generic language like ‘a great team player’ and ‘a fast learner’. Instead, detail specific instances to demonstrate your core skills in action and how they will support you in the role.

Finally, don’t give up – regularly update your CV, be persistent and the right opportunity will come about.

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

Six-day working week for CFOs

Just one day of rest for CFOs as time is the real enemy of getting the job done

The vast majority (85%) of CFOs and finance leaders need a six-day working week to complete their tasks, causing stress and a general feeling of loss of control.

That’s according to a survey by AccountsIQ, which surveyed CFOs and finance leaders across the UK and Ireland.

The study found that one in four (25%) are overwhelmed multiple times per week, with 63% experiencing this multiple times per month.

On average, CFOs and finance leaders need an additional 1.5 days per week to complete their work. This conflicts with the

Kick-starting student careers

The universities of Birmingham and Glasgow have joined forces to help their international students kick-start careers when returning to their home countries after graduation, as well as in the UK.

Careers experts at both universities have come together to pool knowledge, resources and networks to develop in-country support for returning graduates, starting with India and China.

The new scheme also plans to enhance career provision in the UK for international students, alongside advice and support for UK students.

The programme will be available to students joining both universities from September 2025.

Professor Adam Tickell, ViceChancellor and Principal of the University of Birmingham, said: “International students occupy a

heightened calls from government and businesses for a four-day working week with more flexible working.

When asked what keeps them up at night, the top answers were

prominent place in our student community, and we are committed to helping them make the most of graduate opportunities – whether in their home countries or the UK.”

Female executive numbers fall

The number of women holding executive directorships on FTSE 250 boards has fallen 11% in the past two years, from 47 in 2022 to 42 in 2024, according to Cranfield University’s latest Female FTSE Board Report, supported by EY.

Of the 793 women holding directorships on FTSE 250 boards in 2024, just 10 are Chief Executive Officers (a 17% decline from 2022), 23 are Chief Financial Officers (a 12% decline from 2022), 35 are Chairs (unchanged from 2022), and 125 are Senior Independent Directors (a 50% increase from 2022). This means the increase in female

inflation and rising costs impacting profitability (40%), cash flow/ credit control (40%), revenue and profit targets (40%), cybersecurity threats (36%) and accuracy of reporting (29%).

CFOs are also feeling out of control, with 76% of respondents not feeling completely in control of their company’s financial health.

Darren Cran (pictured), CEO at AccountsIQ, said: “Our investigation has shown that CFOs and finance leaders feel stressed, overworked and out of control, but it doesn’t have to be this way. Many of these issues are a result of these professionals lacking time. If they regain that precious time, then they can find ways to focus on strategy, reporting and innovation, and regain that much-needed control.”

representation in directorships on FTSE 250 boards was solely driven by women in NED roles.

Need paid climate leave?

The Spanish government has said workers will be allowed up to four days for ‘paid climate leave’ to allow them to avoid travelling during future weather emergencies.

The move comes just weeks after over 220 people lost their lives in recent floods in the Valencia region.

Spain’s Labour minister, Yolanda Diaz, told broadcaster RTVE that the new measures will mean firms cannot order employees to keep working if there are red weather alerts.

It’s been suggested that Canada was the inspiration for the new measures, as it already has similar laws in place.

The PQ Book Club: books you should read

How to Become an Accountant by Nick Asset (Troubador Publishing, £11.99)

First off, we just want to say that we aren’t 100% sure if Nick’s surname really is Asset, but we will let that one go for now!

What we have here is a sweet little book about being an accountant. At 144 pages it was no chore to read, and in fact we have to admit we really enjoyed ourselves!

Our author left home at a very young age, and found his life partner early, too. Despite

that he took his parents’ suggestion of becoming an accountant to heart. This then is a very personal story, but one really worth reading.

I haven’t read a better book that explains what accountants actually do – good and bad. He also succinctly takes the reader through debits and credits, double entry and bank reconciliations – and does that really well.

In truth I might have left out the fact that I skived off work for my 21st birthday, but Nick

plays a very straight bat and we get his life, warts and all.

I know Nick’s aim is to shake off the tag of ‘boring accountant’, and he says despite the realities he feels if you want to become an accountant you must “go for it”.

PQ rating 4/5: We will happily read How to Become an Accountant – The Aftermath, too!

In brief

Dan Neidle does the maths…again!

Tax guru Dan Neidle recently appeared on @therestismoney to talk farmers, IHT and APR. He repeated his claim that he a little bit suspicious about the fuss being generated, as in his view it is out of proportion to the issues.

His argument (you can check out last month’s PQ magazine for more on this) is that if you have two people with £500,000 worth of assets they should be taxed the same. If you don’t do that, and create an unlimited exemption for particular types of assets, like farms, what will happen is enormously wealthy people looking to avoid tax will sink their assets into farms.

He pointed out that only half of farms are run by the people that own them –the rest are tenanted. And, he asks, how do you tell the difference between real farmers and those using farm assets to avoid tax? He concludes that the government must create a tax regime that has more equal tax treatment of different types of assets.

When it comes to the number of farms affected by all this (said to be 70,000), Neidle says we don’t need to guess – we just look at the actual stats from the latest year available (2021/22). With all the exemptions available to a married farming couple (up to £2.5m) the number affected was 117 farms.

However, by giving property to their children ahead of time farmers should escape IHT entirely (the seven-year rule). But, as Neidle said: “Inheritance tax for the wealthy has always been a tax on people who don’t trust their children.”

Got brain rot?

Following a public vote in which more than 37,000 people had their say, Oxford University Press have announced that its Word of the Year for 2024 is ‘brain rot’.

The first recorded use of ‘brain rot’ was found in 1854 in Henry David Thoreau’s book Walden, in which he writes about his experiences of living a simple life in the natural world. Thoreau criticised society’s tendency to devalue complex ideas in favour of simple ones, and saw this as indicative of a general decline in mental and intellectual effort: “While England endeavours to cure the potato rot, will not any endeavour be made to cure the brain-rot – which prevails so much more widely and fatally?”

The term has taken a new significance in the digital age, and refers to the impact of overconsuming online content. It is often used in a humorous or selfdeprecating manner by online communities.

Last year’s Word of the Year was ‘rizz’.

Boybands or accountants forever?

Do you want girls screaming at you wherever you go?

Or have a svengali running your life? Well, as Simon Cowell (pictured) says in the BBC’s Boybands Forever three-part TV series: “If you don’t want that, be an accountant! You can’t have it both ways!” He is talking about the wannabes who signed up to become the phenomenon of the 1990s – the boy band!

Copying the all-singing, all-dancing American acts like New Kids on the Block, in the UK we got East 17 and Take That. As the documentary progresses, we find that having an accountant (who didn’t want the screaming) may have saved many bands some real financial heartbreak.

Looking for a new roll?

Employers are always looking at innovative way to recruit staff. So hats off to Essity, who decided to highlight its graduate training programme by printing its vacancies on loo rolls and putting them in student toilets.

The hygiene and health company was after the University of Nottingham’s engineering graduates, but accountancy firms take note – it might be a great way to improve your bottom line, too!

Remote workers sleep longer!

If you are struggling to sleep it might mean you aren’t working from home enough! New research from the Office of National Statistics (ONS) has found people who WFH sleep more, but wait for it…. work less, than those who go into the office.

The ONS found remote workers got an extra 24 minutes sleep and 15 minutes more exercise each day, but worked 10 minutes less on average than those who travelled into the office.

Research also found bosses are far more likely to WFH than their staff. Some 45% of senior occupations are using the hybrid model of working, compared with 27% of all workers.

He’s a doner!

A tax fugitive who was on the run for nearly three years was finally caught when he ordered a kebab to his hideout. HMRC officers arrested Robert Kemp at a bedsit in Wales after the hungry VAT fraudster stumped up £18 for a doner kebab.

Intelligence developed from the kebab order led officers to the 56 year old, who was staying less than half-a-mile from the takeaway in the seaside town of Rhyl.

Kemp had been on the run since June 2021 after he admitted VAT fraud, but failed to attend further court hearings. A bench warrant was issued for his arrest.

Kemp, along with his son Marcus, acted as a director of a firm that claimed to supply windows for new build homes. They submitted a string of false invoices and fraudulently reclaimed £251,499 between May and November 2015. His son was jailed for two years and two months in September 2021.

Robert Kemp was jailed for two years and two months for VAT fraud at Swindon Crown Court recently. He was also handed a two-month sentence for going on the run, and a 12-month sentence for an unrelated offence of affray.

The new Cluedo

The ICB LUCA awards night is always a fantastic evening. And some people are lucky enough to take home a trophy, like PQ editor Graham Hambly this year!

The Luca statues themselves are pretty heavy things, depicting the famous Italian mathematician Luca Pacioli.

PQ magazine got chatting to ICB’s Student of the Year 2023, Denise Gibson (pictured). She felt the statue would make a great Cluedo piece – “death in the Library with a Luca is a real possibility”, she suggested. We then began to discuss what other murder weapons an accountant’s version of the game might be possible. Can an abacus kill you, we wondered? A very heavy ledger might! Another guest chipped in: “What about an accountant’s personality in the bedroom – that would certainly kill you!”

Any suggests welcome. Send them to graham@ pqmagazine.com