Financial Accountant May_June 2025

IFA Conference & awards 2025

26 JUNE 2025 | Royal College of Physicians, London

Join us to enhance your professional skills and celebrate the outstanding contributions of members, member firms, and the talent of the next generation of accounting and finance professionals at the awards and drinks reception.

•IPA Group update

Andrew Conway, CEO, Institute of Public Accountants

•Breaking the communication barrier: transforming accountantclient relationships

Shane Lukas, AVN Inspiring Accountants

•Quicker payments: thriving businesses

Liz Barclay, Office of the Small Business Commissioner

•Leading with impact: from business operator to strategic leader

Michelle Howard, Michelle Howard Consulting Ltd

•Making Tax Digital for Income Tax – getting ready!

Lenny Barry, HMRC

7.5 CPD HOURS

Bill

Alyce

Head Office: 502 Clerkenwell Workshops, 27-31 Clerkenwell Close, Farringdon, London EC1R 0AT +44 (0)20 3567 5999 mail@ifa.org.uk | ifa.org.uk | financialaccountant.co.uk

Chairman of Members Advisory Committee: Ian Hornsey

Executive Director — UK: Jonathan Barber

EA to the CEO (UK) & Risk Coordinator: Jolene van Wyk

+44 (0)20 3567 5832 | jolenevw@ifa.org.uk

Head of People and Operations: Jane Capaldi

+44 (0)20 3567 5830 | janec@ifa.org.uk

Director of Professional Standards: Tim Pinkney timp@ifa.org.uk

Disciplinary Case Manager: Lisa McNeela | lisam@ifa.org.uk

Regulatory Case Manager: Clara Robinson clarar@ifa.org.uk

AML Reviewer: David Erichsen | davee@ifa.org.uk

AML Reviewer: Mizanur Rahman mizanurr@ifa.org.uk

AML Reviewer: Sara Moras | saram@ifa.org.uk

Head of Compliance: Bill Bewes

+44 (0)20 3567 5841 | compliance@ifa.org.uk

Compliance Officer: Anthony Higgins

+44 (0)20 3567 5842 | anthonyh@ifa.org.uk

Compliance Officer: Erin Campbell +44 (0)20 3567 5834 | erinc@ifa.org.uk

Member Growth Executive: Paul Flowers

+44 (0)7946 528029 | paulf@ifa.org.uk

Member Growth Executive: Alan van Wyk

+44 (0)7387 845590 | alanvw@ifa.org.uk

Member Growth Executive: Gavin Westcarr +44 (0)7989 594 198 | gavinw@ifa.org.uk

Head of Communications and Marketing: Debbie Homersham +44 (0)20 3567 5833 | debbieh@ifa.org.uk

Digital Marketing Executive: Iesha Hinds +44 (0)20 3567 5829 | ieshah@ifa.org.uk

Events & Professional Development Executive: Hayley Blackman +44 (0)203567 5838 | hayleyb@ifa.org.uk

Education Manager: Susan Divall +44 (0)20 3567 5836 | susand@ifa.org.uk

Membership Manager: David Haste +44 (0)20 3567 5831 | membership@ifa.org.uk

Membership Support Executive: Alyce Tatchell +44 (0)20 3827 2950 | membership@ifa.org.uk

Membership and Professional Standards Administration Coordinator: Jessica Baker +44 (0)20 3827 5828 | jessb@ifa.org.uk

Finance Officer: Yasheema Hall +44 (0)20 3567 5839 | membership@ifa.org.uk

Professional Development and Advocacy Manager: Kyle Baker-Kemp +44 (0)7539 995290 | kylebk@ifa.org.uk

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Recycle

ANDREW CONWAY

The digital transformation of accounting

Technology is fundamentally reshaping the accounting landscape. Cloud-based platforms now deliver instant access to financial data, empowering businesses to make faster, more informed decisions. This newfound accessibility is not just about speed but strategic evolution. Further accelerating this shift is the Making Tax Digital initiative, which has established a new standard for efficiency through digital recordkeeping and submissions.

Building on this foundation of efficiency, artificial intelligence (AI) is playing an increasingly significant role. AI applications automate data entry, identify anomalies and provide predictive financial analysis. It frees accountants to focus on higher-level strategic work, including complex tasks such as risk assessment and strategic planning.

The rise of data analytics is complementary to AI and equally vital. By analysing large datasets, accountants can extract insights and provide data-driven recommendations. This ability to interpret complex

information is particularly crucial in navigating the uncertainties of the current economic climate.

However, integrating these powerful technologies is not without its challenges. Robust data security protocols, ethical considerations regarding AI implementation and the need for continuous professional development are paramount. The profession’s future hinges on its ability to address these concerns and effectively leverage these tools.

Ultimately, the evolution of accounting is inextricably linked to technological adoption. The modern accountant is evolving into a techsavvy strategist, capable of translating complex data into actionable business intelligence while maintaining strong interpersonal connections.

JONATHAN BARBER

Driving change and growth

The Spring Statement introduced two key consultations that build on the invaluable feedback the government has received as part of its efforts to reform and modernise the Tax Administration Framework. This is a continuation of HMRC’s commitment to improving tax administration in ways that matter most to its customers, agents and stakeholders.

Thank you to all our members who contributed to the consultation on Better Use of New and Improved ThirdParty Data. There is still time to provide feedback towards the consultation on the Reform of Behavioural Penalties, and I strongly encourage you to do so before the deadline on 4 June. Your insights are instrumental in shaping future policy.

As a direct result of your feedback, we hosted our first AI Conference online in March. The event underscored the crucial role accountants play in the responsible adoption and development of AI. Feedback from participants highlighted a strong appetite for knowledge and professional growth:

“It’s an important topic, and one I felt I needed to learn more about.”

“My key takeaway is to integrate AI regularly to enhance my performance.”

This conference confirmed that AI should not be seen as a threat, but as a tool to elevate our profession. Given its success, we are making this an annual

event and will be hosting the next conference in April 2026.

Another success I’m proud to share is the continued growth of our IFA Direct education programme.

Over the past four years, student numbers have increased by 36%, with projections indicating further growth to 54% by the end of June. This programme provides an accessible and affordable pathway for part-qualified professionals from AAT and ACCA, as well as a valuable tool for succession planning among members in practice.

If you’re looking to future-proof your practice or advance your qualifications, I encourage you to explore this opportunity. For more

details, contact Susan Divall, our education manager, at susand@ifa.org.uk

As always, thank you for your engagement and dedication to shaping the future of our profession. Your voice and participation drive meaningful change.

Jonathan Barber IFA Executive Director – UK

AI should not be seen as a threat, but as a tool to elevate our profession

Making Tax

IIt feels like a pretty hefty issue in terms of Making Tax Digital content… I’m going to add to it.

The news pages, which you’re tantalisingly close to, veer from ‘tax returns in space’ through to sentiment about what MTD all means.

On pages 22-24 we have a detailed runthrough of MTD beta testing and how you (and your clients) can get involved.

Then there’s Bill McGregor’s take on how you can use MTD to pivot your practice towards value-added services (page 28).

And then there’s this column. I confess that I am one of the many sole traders who will come under the remit of MTD from next April.

The years cultivating my Excel spreadsheet and Word invoices will be changing. Whether it’s all for the better (for me) is something of which I’m sceptical.

First-off I’ll need to take on some bookkeeping software, and probably open a separate bank account so that transactions can be captured in an orderly manner. For someone who sends out 60 invoices a year

and whose affairs are pretty straightforward, I can’t say that MTD fills me with much joy.

There may be some travel and subsistence expenses that I will capture rather than forget about. But, other than that, MTD will probably run at a net cost for me.

Perhaps my accountant will get better and easier-to-handle data from me… perhaps I’ll get paid quicker… perhaps I’ll capture more expenses. But I’m not convinced. Practitioners may not be sold on MTD’s benefits either – but that’s besides the point, because its introduction is now pretty much inevitable.

And so you will have to convince (and support) the likes of me through the next two years. Good luck.

The frequency of finance having to go a step beyond to provide insight into active leadership that impacts business performance is going to increase because of AI’s impact on decision support

IN NUMBERS

KEVIN REED

97%

Percentage of first-time housebuyers who failed to receive any education about mortgages while at school.

Source: Boon Brokers

43%

Percentage of UK sole traders who fail to understand what tax band their business is operating within.

Source: takepayments

£39M

Value of ‘exceptional bonus’ paid out to Grant Thornton UK staff after its PE sale to Cinven.

Source: FT

£464M

Lost parcel costs for UK and European businesses a year.

Source: Metapack

4.4%

UK unemployment rate in February.

Source: ONS

500

Number of officers HMRC plans to hire to crack down on tax evasion

Source: HM Treasury

3.7 MILLION

Salary growth for accountants in 2024 – the highest of any job group.

Source: Deel’s State of Global Hiring report

Valuation of accounting firm MHA on its AIM stock market IPO.

Source: City AM

£271M

18%

Source: Iwoca

Number of people employed by medium-sized businesses in 2024, having expanded their headcount at double the rate of either small or large businesses in the last ten years.

46%

Percentage of UK office workers who have discussed sensitive corporate information with external industry professionals.

Source: The Global Payroll Association

Percentage of UK businesses that are short-staffed

Source: Indeed Flex

Percentage of UK businesses that are ‘confident’ about expanding internationally.

Source: Equals Money

73%

Accountants in high demand

ARE ACCOUNTANTS THE ‘NEW SOFTWARE ENGINEERS’? HR and tech payroll provider Deel certainly thinks so.

Its ‘State of Global Hiring’ report finds that salary growth was strongest in accountancy during the last year: at around 15%.

“While software engineers are still the most-hired occupation for Deel clients, accounting is becoming the new musthave skill for global organisations,” the report noted.

However, it also pointed to a “declining interest in the profession from early-career workers” as driving the existing accountancy workforce as a precious commodity.

“Whether this hiring spree will solve the accounting talent shortage will be a major story to watch in the years to come.”

The UK was the third-highest accountancy hirer, behind the US and Australia.

The report can be found here: tinyurl.com/IFA-22079.

ON YOUR BEHALF

IFA IN THE NEWS AND OUT

AND ABOUT

PUBLISHED COVERAGE

PQ Magazine

The key challenges and opportunities that lie ahead tinyurl.com/IFA-22075

Accountancy Daily

How will the sector shape up in 2025? tinyurl.com/IFA-22077

RECOGNITION

As part of an ongoing project, the following lenders have confirmed recognition of our member qualifications: Darlington Building Society, Teachers Building Society, Vida Home Loans and West Bromwich Building Society. Contact Kyle Baker-Kemp on kylebk@ifa.org.uk should you experience any issues with lender recognition.

IFA members with Associate Financial Accountant (AFA) and Fellow

Financial Accountant (FFA) grades are now eligible to obtain Saudi Organization for Chartered and Professional Accountants (SOCPA) membership.

REPRESENTATION

We were represented at the following during February and March:

• • Charter Stakeholder Group

• • HMRC Guidance Strategy Forum

• • Compliance Reform Group

• • HMRC Agent Support Group

• • Making Tax Digital Programme Progress Forum

•

• Quarterly Offshore Forum

• • HMRC Agent Support Group Meeting

•

• One to Many Compliance Advisory Board

• • Tax Administration

Framework Review: New ways to tackle noncompliance – consultation workshop

• • Anti Money Laundering Supervisors Forum (AMLSF)

• • Accountancy AML Supervisors Group (AASG)

• • Companies House Accountancy Stakeholders Forum

• • Information Sharing Expert Working Group (ISEWG)

Jonathan Barber was a panellist on the PQ Magazine and Rogo roundtable ‘Accountants... time to power up your employability skills’: getrogo.com/pqwebinars

LEARNING/UNIVERSITITES

We have mapped the University of the West of England, BA (Hons) Accounting and Finance degree programme as

meeting requirements for membership.

Susan Divall, education manager, was a panel member on Northeastern University London’s Apprenticeship week event – AI in accounting: unlocking potential while managing risk.

Jonathan Barber, executive director – UK, delivered a talk to a group of students at Birmingham City University.

We have endorsed the following programmes for a further three years:

• • Association of Certified Digital Accounting Professionals – Digital Bookkeeper and Payroll Administrator, Digital Assistant Accountant and Digital Accounting Professional.

AROUND

THE WORLD Online CPD webinars took place in the UAE and KSA.

NEWS IN BRIEF

A place of no (tax) return

An MTD-ready tax return has been filed from ‘space’. Tunbridge Wells-based Jennifer Maslin was supported by accountancy firm Maslins to send the digital tax update, which is in beta testing, via FreeAgent software – from a high-altitude balloon that carried a tablet computer 26,000 metres high. Aeronautics specialist Sent into Space sent the balloon up from a site in Sheffield.

Brits look at business abroad

Despite trade hurdles, some 73% of UK businesses are confident about expanding internationally. Europe remains the biggest target market, reports Equals Money. North America (38%) and East Asia (17%) are the next targets. “With two-thirds of businesses anticipating that rising protectionist tariffs could create favourable conditions for international growth, there’s cause for optimism”, said Thanim Islam, head of FX analysis at Equals Money.

Companies House collects £1,250 in fines

Despite new powers to cut down on being supplied with improper information, Companies House has only collected £1,250 in fines since October. Some 234 penalties have been issued in that timeframe, at a value of £58,500, but only a small proportion has been collected, reports The Guardian.

Interest rate cuts loom

Three more interest rate cuts in the UK are on the cards this year, states the International Monetary Fund. It predicts the Bank of England will make the cuts, despite inflation, due to economic and trade pressures.

High-octane jobs push CFOs to move on

A COMPLEX WORKING ENVIRONMENT, aligned with attractive career opportunities, are shortening the tenure of the most senior finance professionals, new research from Russell Reynolds shows.

Global CFO turnover among the 12 largest indices was 15.1% in 2024, with the S&P 500 and FTSE 250 noting peaks.

The average CFO tenure was 5.8 years, down from 6.2 years in 2023.

One reason for the turnover was a higher retirement rate, at 54% of outgoing CFOs retiring or going plural – up ten percentage points compared with 2024.

The average age of this transition is 56.6 years old –the lowest average in six years.

275

An environment of activist investor pressure, increasing regulation and economic headwinds are adding stress onto the CFO position. “Market pressure on the CFO is fierce, given some of the uncontrollables in the global context, such as regulation, tariffs and inflation,” said Russell Reynolds European CFO practice co-head Ben Jones.

CFOs appointed across the 12 major indices in 2024

Source: Russell Reynolds

Higher CFO turnover also aligns with CEO turnover – the latter reached a record high last year.

“Naturally, a new CEO will want to choose their own executive, perhaps because their strategy doesn’t align with the current CFO’s retirement horizon,” said Russell Reynolds’ global financial officers practice co-leader Jim Lawson.

However, the pressures of the role do build up experience that translates into career opportunities. The research found that, of the movers, 34% took on a president or CEO roles, 15% took on a divisional CEO position, 6% became a COO and 15% chose another C-suite job.

“There are more options post-CFO than there were in the past,” said Lawson. “We are seeing more CFOs going into general management roles. Likewise, the need for qualified financial experts on boards continues to be a trend. And private equity firms are tapping more CFOs to be operating partners.”

The research can be found here: tinyurl.com/IFA-22081.

REGULATION

Disciplinary outcomes

DISCIPLINARY COMMITTEE

HEARING 17 FEBRUARY 2025

Mr Lovemore Sisimayi FFA FIPA London, UK

Complaint

Allegations were that Mr Sisimayi was liable to disciplinary action in that he failed to keep his tax affairs up to date, substantially understated his income, failed to pay the determined liability or penalties and failed to bring these matters to the attention of the Institute.

Order

Removed from the register of members and ordered to pay costs of £4,750.

REGULATORY COMMITTEE

MEETING 17 MARCH 2025

Mr Mehmud Nathu AFA MIPA Rotherham, UK

GOVERNANCE

Complaint

That Mr Nathu breached IFA Continuing Professional Development Regulations 3.1 (a) and (c) in that he failed to keep under review his learning needs and undertake CPD in 2022 and 2023. He also failed to keep a record of his CPD in 2023 in breach of IFA CPD Regulation 5.1.

Consent order

Reprimand, fined £1,100, costs of £710.

Mr Robin Whelan FFA FTA Brightlingsea, UK

Complaint

That Mr Whelan breached IFA Continuing Professional Development Regulations 3.1(c) and 3.4 in that he failed to undertake a minimum of 40 hours of CPD in the calendar years of 2022 and 2023.

Consent order

Severe reprimand, fined £1,500 and costs of £710.

‘Tell-tales’ share sensitive work information with family

A QUARTER OF UK OFFICE WORKERS have admitted sharing sensitive workrelated information with people outside the workplace.

The Global Payroll Association’s survey of 1,300 UK office staff found that a significant proportion are ‘loose-tongued’. One in five (20%) have shared sensitive information to colleagues within their organisation, while 18% had spoken to people outside the business. One in ten said they’d been approached by a client or other professional entity to spill the beans.

“Attempts of corporate espionage may seem like an exciting prospect and whilst you should probably take some workplace stories with a pinch of salt, it could be more common than you might think,” said Melanie Pizzey, CEO and founder of the Global Payroll Association.

“The reality is that it’s simply not worth it, as not only could engaging in such activity see you blacklist as unemployable, there could be some very real repercussions depending on just what information you choose to share.”

NEWS IN BRIEF

Employees bemoan stress management at work

More than a quarter (28%) of workers say their employer is ineffective at managing workplace stress, according to a survey by Acas. “Stress can affect anyone, and the impacts can be severe. It is hugely important for employers to be able to spot the signs of stress and provide support to staff,” said Acas interim chief executive Dan Ellis.

Creative industries tax claim changes

An additional form must now be completed by companies claiming creative industries tax reliefs. The form will need to be submitted on the same day, or prior, to submitting their CT600 tax return. More information can be found here: tinyurl.com/IFA-22071.

FRC updates reporting threshold guidance

With UK government reporting thresholds being raised, the Financial Reporting Council (FRC) has updated its own documentation. This includes a summary outlining the new thresholds, and what this may mean for reporting and audit requirements, which can be found here: tinyurl.com/IFA-22073

FCA pushes finance providers on bereavement support

Financial services organisations are being pushed by the Financial Conduct Authority (FCA) to provide more support in helping people register a power of attorney or those dealing with bereavement. FCA director of retail banking Emad Aladhal said: ‘If you need to notify your banking provider about a bereavement or a power of attorney, speak to them about how they can support you and meet your needs.’

‘Tinyurls’ explained

The ‘tinyurl’ web address at the end of each news item, and elsewhere in the magazine, are short aliases for longer addresses. Simply type the tinyurl address into your browser and press return to be taken to the relevant website for more information.

Mixed views on MTD’s next phase

‘TREPIDATION’ IS THE BYWORD as far as Making Tax Digital (MTD) for income tax self-assessment is concerned. In a series of surveys, conducted either by or for FreeAgent, found mixed views on the impact of MTD upon micro-businesses, as well as the amount of publicity about its introduction.

FreeAgent’s own research found that one in ten small business owners hadn’t heard of MTD, with 21% stating they don’t fully understand the incoming stage (from next April). A third (31%) said they feared MTD would create more pressure in managing their tax affairs.

Roan Lavery, CEO, FreeAgent, said: “MTD is the biggest change for UK tax in more than a generation, but we know that many small businesses are still apprehensive about the legislation and how it will impact them.”

In separate research by Censuswide, 53% said MTD would be beneficial to small businesses in the long term, while 52% said the government had failed to provide enough information on what the legislation will mean for them.

Penalties and compliance investment to drive HMRC’s efforts

HUNDREDS OF NEW HMRC STAFF are to be recruited in an effort to replenish the Treasury’s coffers.

Some 500 compliance officers are to be recruited at the cost of £100m to raise £241m of unpaid tax over the next five years, while 600 staff will be recruited into HMRC’s debt management team; the latter looking to recover £13 of debt for £1 cost.

Late payment penalties are also being upped across VAT and MTD for income tax self-assessment.

“With taxpayers facing hours

on hold to HMRC in recent years, or even being chucked off a waiting call, it’s fair to assume that the push to digital and increased fines with tighter timescales will be met with a degree of cynicism,” said AJ Bell senior pensions and savings expert Charlene Young.

“Closing the tax gap should be a priority for HMRC, but the changes come against a backdrop of poor service levels and at a time when small business are gearing up for soaring tax and wage bills from April.”

FINANCE TEAM 2035

model that is defined by AI (see box, right).

The last

issue

focused on the role of the finance leader in 2035 – now Richard Crump looks at the potential structure of the finance function.

The finance function is evolving from being a transaction and compliance machine to one focused on strategy, data analytics and interpretation, as the monumental shift towards generative AI and automation accelerates over the next decade.

Business partnering is going to be a key part of how the overall function will evolve, with a greater focus on where finance can act as a catalyst for change and, crucially, value creation.

A 2025 survey of finance executives by consulting firm The Hackett Group found that two-thirds described their organisation’s role in the enterprise as a “valued business partner,” but with a small leading group going further as a “catalyst for change”.

“The frequency of finance having to go a step beyond providing insight into active leadership that impacts business performance is going to increase because of AI’s impact on decision support,”

Matthew Cartwright at The Hackett Group explained in the report.

This will require finance staff to exhibit more advanced collaboration, analysis and problem-solving skills for finance to “retain its value proposition to the business above and beyond the insights people get straight from AI,” Cartwright added.

Blurred lines

The size of finance teams is likely to shrink, although not dramatically, as processes that are predictable and repeatable – such as payroll, invoicing and transaction recording – are automated and outsourced.

This will see a shift to smaller and more specialised teams, with a mix of core finance experience and new skills centred on technology, data analysis and business strategy as part of a new operating

Alysha Randall, a fractional CFO and founder of Fast Growth Consulting, says that even in a startup you will find “hybrid roles” working across, and being embedded within, multiple functions such as HR and as business partners.

“You may have somebody that is very much embedded between finance and tech, or finance and business intelligence, rather than just sitting in the finance function,” Randall, who previously worked as director of finance at LoveFilm, says.

The integration of finance staff into the business, and a blurring of the lines between the two, provides an opportunity for finance to shape business direction, not just respond to it.

“The red lines around the finance function are different than they were ten years ago. What constitutes the finance function is becoming a bit more blurred,” says Simon Davidson, a partner in Grant Thornton’s business consulting practice.

Winning friends

David Bailey, client partner at executive search firm Pedersen & Partners, says the shift towards more collaboration with other departments means that communication skills and a broader knowledge of how to leverage new technology will be at a premium.

To be able to articulate and communicate a clear mandate for change, finance needs “good communicators and leaders who can win friends and influence people,” as a change to an organisation’s operating model will be backed by the office of the CFO.

“You can buy the best tech built, the best people, the best analysts, but if you can’t talk, if you can’t communicate and influence, it’s not going to work,” Bailey says. “You’re not going to get the value out of it or leverage that opportunity.”

It would also be wrong to categorise the idea of more technology meaning more technology skills. Instead, it will be another factor pushing communication and collaboration up the agenda, according to Cartwright.

“More technology will reduce in many ways the importance of technology and data skills, because data will be served up very easily,” Cartwright says.

“The skillset then becomes: what are the questions to ask of the data, what we are going to do with it, and how do we influence human behaviours to make change happen within the business through the value lens of a finance professional?” he adds.

THE NEW OPERATING MODEL

Technology and digitalisation are at the centre of the future finance strategy, but transformation is not just about becoming more digital. According to research by The Hackett Group, top-performing finance functions are transforming their operating model.

Traditionally, finance resources have been aligned to, or owned by, the function. In a new operating model, there is a more even distribution of resources between the roles owned by the function, roles managed by the function and shared roles managed by the overall enterprise.

“Core functions like tax and treasury will still exist,” says Matthew Cartwright, “but the layers of delivering order-to-cash, procure-to-pay and the quarterly reporting processes will be more embedded into global business centre structures.”

financial aspects of the organisation is not going to disappear.

James Hunter, CFO at AccountsIQ, says there will still be a requirement for everybody in the finance team to understand the basics, or to know the real complexity, in accounting.

But to be successful, Hunter says, finance staff will “need to understand what all the connectors are from where the data originates, where it ends up in your finance system and where it gets reported”.

Finance will nevertheless need accountants with different skills.

“It’s not going to be a revolution, but we are going to see the infiltration of data scientists, business analysts and IT experts,” says David Bailey.

There has already been a steady increase in the demand for financial planning and analysis experts and data analytics skills, with financial planning and analysis (FP&A) departments becoming central and embedded within the business.

“It doesn’t mean that everyone has to be a data scientist or be brilliant with data, but I would want to make sure that in my team I have got the blend right between that and technical accounting skills,” says Simon Davidson.

The right blend

The future finance team still needs accountants. The duty of keeping the business safe and being a custodian of fiduciary responsibility for the

Source: The Hackett Group Finance

The FP&A side of the business is where you see “that blend more” between transactional and tech driven skills because of the larger data sets they will increasingly be dealing with, says Phil Boden at Robert Half.

“As data integrates more and more and more,” he says, “the finance function has to adapt in order to have that as part of its structural layout.”

Richard Crump is an accounting and legal journalist

Can accountants steer their business towards lucrative public sector contracts? Stephen Lynch looks at new rules that could pave the way.

PARADE ON

Some £400bn is spent every year on public procurement. This accounts for a third of all public expenditure in the UK. Procurement includes spend on goods such as office equipment or hospital beds, works such as maintaining roads and major infrastructure projects, and services such as adult social care and waste management.

The last government sought to speed up and simplify procurement processes and create greater opportunities for small businesses and social enterprises to access these contracts and innovate the delivery of public services.

In 2024, 5.5 million UK SMEs represented more than 99% of the business population, 60% of employment and 48% of business turnover.

The Procurement Act 2023 took effect in February this year, bringing together existing regulations.

The current government will also consult stakeholders on further reforms to procurement in pursuit of economic growth and to continue to level the playing field for SMEs, which have been disadvantaged by previous processes favouring larger companies.

Procurement Act

The act’s objectives include delivering value for money, maximising public

benefit, sharing information and acting – and being seen to act – with integrity. It seeks to encourage contracting authorities to give SMEs and voluntary community and social enterprises (VCSEs) “a fair chance at public contracts,” with the aim of maximising procurement spend with these groups. To support SMEs specifically, there is a duty for contracting authorities to have regard to reducing and removing barriers to small business participation in procurement. Unnecessary obstacles in the conditions of participation have also been removed. Firstly, contracting authorities are now mandated to consider means other than audited

accounts when assessing financial capacity. Secondly, SMEs are allowed to show proof of required insurance only upon contract award, rather than during bidding, sparing them from carrying unnecessary costs pre-award when outcomes are uncertain.

There are also mandated 30day supplier payment terms for all contracts, to help improve cashflow for SMEs, with six-monthly compliance checks.

Other obligations and principles include:

•

• Introducing a new central digital platform, and early market engagement, allowing businesses to register their details and access all bidding opportunities in one place – ensuring greater transparency, more equitable access, and scrutiny of published notices throughout the commercial lifecycle.

• • Evaluation of tenders to be based on broader criteria identifying the “most advantageous tender” –requiring contracting authorities to consider value for money and maximised public benefit from awarded contracts.

•

• New powers to investigate and take action against poorly performing suppliers or those that pose security risks to supply chains.

• • New procedures for awarding public contracts that allow for more negotiation with suppliers to deliver innovative solutions in partnership with the public sector.

Taking the opportunity

Although these reforms are intended to simplify procurement, business data/insights firm Dun & Bradstreet states it’s still the case that SMEs “often lack the resources and expertise required to navigate the public sector’s procurement processes, which can be

highly complex and time consuming”.

The government has provided official e-learning modules to help finance and procurement leaders to implement the new regime. Specific sections of official guidance ‘knowledge drops’ also explain how the changes may benefit SMEs and VCSEs when doing business with the public, utilities or defence sectors, or health and social care.

The new regime will also demand significantly more coordination between finance and procurement teams within businesses. Procurement leads should be given a voice at the top table and “brought into the fold with finance as a combined function,” recommends Mark Reddy

AN ACCOUNTANT’S VIEW

Deepak Shukla, CEO of Pearl Lemon Accountants, says:

from business software company OneAdvanced.

SMEs can also make themselves stronger, more desirable bid candidates by understanding how they are perceived by public sector buyers by collecting and examining data on their financial credit information for example.

“More openness and simplified tender processes make it easier for SMEs to compete for government contracts with large companies. The act encourages more equal competition by reducing red-tape hurdles so SMEs can present their worth and capability more conveniently.

“Alongside this, emphasising innovation and social value in procurement specifications allows SMEs to stand out based on their responsiveness and contributions to the community.

Now that government contracts will become more accessible under this regime, for Kieran Burge, director of DS Burge & Co: “SME accountants need to shift from reporting to enabling. That means assessing whether pricing is competitive, whether the business can deliver on terms, and how it will affect cashflow.”

Finally, because the act also mandates smaller, more tailored contract lots, this enables direct price negotiations between procurers and suppliers. According to procurement analysts the Spend Network, “in principle, this flexibility caters better to SME capabilities versus rigid tendering processes”.

“Accountants in business play an important role in guiding SMEs to align their financial strategies with new procurement compliance demands, ensuring they bid competitively without compromising margins.

“The act’s transparency clauses also allow SMEs to pre-emptively tailor their proposals to project specifics – but this requires meticulous financial planning to avoid overextension.”

The new requirements of the Procurement Act present an opportunity for potential SME suppliers. The government has also signalled it’s willing to go further in this area. One area to flag in any public consultation is the time and resource cost of jumping through the hoops presented by Crown Commercial Frameworks, including attaining necessary accreditations.

Accountants can teach and lead their colleagues to access public sector work through good recordkeeping, becoming familiar with the new regime and being coordinated internally and prepared for negotiations externally.

Stephen Lynch is a freelance journalist

VERIFICATION NATION

Accountancy firms are now obliged to register as ACSPs to verify their clients’ identities. Nick Levine finds out what that means for you.

It will soon be a requirement for accounting firms to register as an authorised corporate service provider (ACSP) to verify the identity of their clients and, separately, if they are acting as their agents, make filings on their behalf at Companies House.

The ACSP regime is part of governmentmandated legislation, the Economic Crime and Corporate Transparency Act 2023, seeking to combat the accuracy and reliability of the information held at Companies House.

As per the original timetable, it was planned that firms could register via the government’s One Login platform from 25 February. However, just one day prior, this was postponed because of last-minute teething issues. The platform finally went live on 18 March.

Firms should familiarise themselves with the incoming requirements so they can be prepared to change their processes when necessary. Verifications will become mandatory in the autumn, and Companies House estimates that 50,000 businesses could apply to register as ASCPs within 12 months of the launch.

ACSP requirements

Verification of clients

Initially, only accounting firms that verify the identity of clients will need to register with the new system.

Agents will need to be registered with at least one anti-money laundering (AML) supervisory body. The IFA, alongside the other main accounting bodies, are included in the approved list.

Accounting firms must identitycheck their clients by confirming cryptographic features in documents such as biometric passports. Firms that cannot check documents cryptographically will need to do so manually with two pieces of information. Anyone manually checking documents will need to undergo training.

Individuals registering their firm as an ACSP must have a senior role within it. For example, registrants must be directors if their practice is a limited company. Sole traders can register themselves.

Any changes to information about the agent, such as a new address, must be updated within 14 days. Records of identity checks made on behalf of clients must be retained for seven years.

Making it harder for agents to make filings on behalf of third parties will definitely be an improvement

Client filings

From spring 2026, agents registered as ASCPs can make Companies House filings on behalf of their clients through the new system.

This will cover company registrations, confirmation statements, annual accounts, and notification of changes to companies (i.e. new registered office addresses and adding and removing directors).

Steps to register

1

The first step to registering as an ACSP is to check whether you can apply as an individual based on your level of seniority in your firm. Sole trader accountants can register themselves.

2 Verify your firm’s identity with Companies House.

3 Supply details of your practice, including company number, company authentication code (for limited companies and LLPs) and your name, date of birth, nationality (for sole traders) and email and correspondence addresses.

4 Provide the name of your supervisory body and your AML membership number or ID.

5 Confirm your legal responsibilities. This includes an ongoing relationship with a recognised UK AML supervisory body, changes to your practice’s details, maintaining records and providing further information on filings with Companies House if requested. Registration costs £55.

Once your registration is accepted, your firm’s authorised agent account will be created, with the ability to add other users. These additional users will not have to have their identities verified.

DELLA HUDSON, MINERVA ACCOUNTANTS

A win for regulated accountants

Della Hudson, founder of Minerva Accountants, thinks that the strict recognition of approved AML supervisory bodies for ACSPs will raise standards and enable accountants who are members of these bodies to stand out.

“As members of professional bodies, we already have our AML processes in place, and it’s good that the government recognises the value of that supervision. It often feels like unregulated accountants have an easier life, but this time, they will have more hoops to jump through to register and maintain everything.”

Hudson isn’t too worried about the new requirements, because her firm is already fulfilling most of the required processes.

“There will be little change for us. We’re already doing most of this as part of our AML checks, and we’ve been spending time on the bigger distraction of Making Tax Digital.”

Light-touch registration

Hudson voluntarily registered once the portal opened. She found the process relatively simple and fast.

“The process took less than ten minutes [and was helped along] as I knew where my passport was and [the] only required addresses were for the last three months. This was very convenient as I moved house in November.”

IZZI ROSENBERG, PROSPERFI

A more balanced approach is needed

Izzi Rosenberg, founder of ProsperFi, thinks ASCP changes will give practitioners more work without solving the underlying fraud issue.

“Most SME accountants aren’t dealing with highprofile criminals. While there is a risk of criminals taking advantage of smaller accountants to make something look legitimate unknowingly, these new changes will make it harder for small businesses to collaborate with their accountants by making it more time-consuming and more costly.”

Confirmation of ID won’t stop criminals

Rosenberg also stresses new confirmation processes won’t stop determined criminals.

“Criminals have passports too and often a proof of address. AML forgets this and thinks that you aren’t a criminal if you have a passport. While ASCP changes may make tracking criminals easier, it won’t stop them from getting involved in criminal activities.”

TASNIM MUSTAFA, BARNES & SCOTT

A step in the right direction

Tasnim Mustafa, director at Barnes & Scott, broadly welcomes the new verification checks.

“I have always been quite surprised at how easy it is to make changes at Companies House. I’m surprised there isn’t more fraud and that our clients haven’t seen spurious documents filed on their behalf that would be extremely difficult to remove. Tightening up ID verification and making it harder for agents to make filings on behalf

of third parties will definitely be an improvement.”

Government-supported training for manual ID checks are key Mustafa isn’t too worried about the potential requirement to train staff in verifying manual IDs.

“I think the government is going to have to provide cost-effective and efficient training courses. We will be happy to have a member of our team trained, provided the cost is not prohibitive. In the long run, there will need to be a solution that is less burdensome and manual.”

YOGESH PATEL, TELIC

Slick biometric ID technology

Yogesh Patel, director at Telic, registered his firm as an ASCP shortly after the portal opened and was impressed with Companies House’s biometric capabilities.

“The identity verification uses biometric data from your passport. While there are quite a few steps to click through, the process is fairly slick. I liked how they display a QR code on-screen, which you then scan with your phone to complete the biometric check (e.g. scanning your passport and face). This method seems to be increasingly coming across government platforms.”

His application was approved within 48 hours of registering.

Accountants may need to recover increased costs

Similarly to Izzi Rosenberg, Patel believes ASCP processes will lead to increased costs.

“This feels like another example of the government leaning on accountants to act as gatekeepers – using us to do more verifying and validating company data. It increases our responsibility and risk, so we’ll need to consider how to price this work to ensure it’s commercially viable.”

Welcome to new members & new fellows

We welcome new IFA members who joined in March/April and congratulate our new fellows

● Mr Jahanzaib Sattar Rajper Abdul Satter Rajper AFA MIPA

● Mr Adewale Adegoke AFA MIPA

● Mr Daasebre Kofi Adu-Boahen AFA MIPA

● Mr Muhammad Ahmad AFA MIPA

● Mr Javed Akram IFA AIPA

● Mr Rana Rizwan Ali AFA MIPA

● Ms Sila Arslan IFA AIPA

● Mr Balamurugan Arunachalam IFA AIPA

● Mr Saad Abid Awan AFA MIPA

● Mr Atif Bashir IFA AIPA

● Mr Muhammad Bilal AFA MIPA

● Ms Cheryl Boyles AFA MIPA

● Mr Wajih Burney AFA MIPA

● Mr Muhammad Noman Butt IFA AIPA

● Ms Emma Dark AFA MIPA

● Mr Dawid Dudzinski AFA MIPA

● Mr Richmond Eduku IFA AIPA

● Mr Ahmad Hassan Choudhry Fayyaz Hussain IFA AIPA

● Mr Murat Gabin AFA MIPA

● Mr Muhammad Zahid Amin Ghulam Qadir Khan IFA AIPA

● Mr Adel Hassan AFA MIPA

● Miss Marie Hay AFA ATA

● Mr Mudassir Iqbal AFA MIPA

● Dr Udeme Jonah AFA MIPA

● Mr Muhammad Khan AFA ATA

● Ms Sijal Kokab AFA MIPA

● Mr Kumaraswamy Kotte AFA MIPA

● Mr Noman Manzoor AFA MIPA

● Mr Faizur Mohammed Farook AFA MIPA

● Mr Muhammad Naseem AFA MIPA

● Miss Shaima Naseena AFA MIPA

● Mr Munthasir Ahamed Nilabdeen IFA AIPA

● Mr Jamil Nizam AFA MIPA

● Mr Paul Nyogesa IFA AIPA

● Miss Sandra Ohene AFA MIPA

● Mr Dennis Owusu Dankwah AFA MIPA

● Mr Daniel Oziegbe AFA ATA

● Mr Shameer Parambil AFA MIPA

● Ms Analissa Prado IFA AIPA

● Mr Fatjon Pula AFA MIPA

● Mr Safiullah Qadeer AFA MIPA

● Mr Muhammad Qasim IFA AIPA

● Mr Arnold Quagraine AFA MIPA

● Mr Ishaq Rahiman IFA AIPA

● Mr Wasim Raja AFA MIPA

● Mr Rathnayake Mudiyanselage Chandana Rathnayake AFA MIPA

● Mr Syed Rizvi IFA AIPA

● Mr Jaleel Saeed Jasam IFA AIPA

● Ms Aleksandra Sereda IFA AIPA

● Mr Raja Shabbir IFA AIPA

● Mrs Ripal Ronit Shah AFA MIPA

● Mr Bhavik Shah AFA MIPA

● Mr Salman Shaukat Shaukal Ullah IFA AIPA

● Mr Robin Thomas AFA MIPA

● Ms Flanitta Wellington IFA AIPA

● Mr Muhammad Yasir IFA AIPA

● Mr Mohamed Yousef Ibrahim IFA AIPA

● Mr Jason Zeeman IFA AIPA

New fellows

● Mr Ganiyu Adams FFA FIPA

● Mr Rana Ali FFA FIPA

● Mr Muhammad Anas FFA FIPA

● Mr David Harrison FFA FIPA

● Mr Koffi Koudakpo FFA FIPA

● Mr Hitesh Modha FFA FIPA

● Miss Elizabeth Needham FFA FTA

● Mr Stewart Newberry FFA FTA

● Miss Francisca Owusu FFA FIPA

● Mr Robert Rennie FFA FTA

SPRING

IN THE STEP

The chancellor kept key tax changes light, but is the top takeaway a heavier hand on the supporters of tax avoidance and fraud? asks Stephen Lynch.

Tax advisers and scheme promoters face a crackdown as the government looks to target those pushing tax avoidance.

Delivering the Spring Statement, chancellor of the exchequer

Rachel Reeves cut public spending, boosted capital expenditure, and pledged to close the tax gap – but acknowledged the Office for Budget Responsibility (OBR) halving its 2025 growth projections to just 1%.

Closing the tax gap

The chancellor promised to support HMRC to crack down on tax avoidance and charge 20% more tax fraudsters every year.

To that end, HMRC published four consultations focused on closing the tax gap.

One of these invites comments on enhancing HMRC’s powers to act against professional tax advisers who facilitate non-compliance in their client’s tax affairs. It seeks early responses as it considers policy on potential measures like stronger

penalties and information powers against advisers, and publishing details of advisers subject to HMRC sanctions. HMRC is also consulting on new measures to tackle promoters of tax avoidance. The proposals include exploring options for tackling legal professionals who design or contribute to the promotion of avoidance schemes, expanding the Disclosure of Tax Avoidance Schemes regime, and introducing a Universal Stop Notice and Promoter Action Notice. The government also confirmed that HMRC will require a new tranche of taxpayers to complete their self-assessment returns using third party Making Tax Digital (MTD) software – not through HMRC’s online filing service. Those joining MTD

from next month will be subject to increased late payment penalties for VAT (from April 2025) and income tax self-assessment (from April 2026). MTD income tax self-assessment for sole traders and landlords with incomes over £20,000 will also be rolled out from April 2028.

Other statement measures aimed at ensuring that owed taxes are paid include recommencing ‘direct recovery’ of tax debts owed by individuals and companies choosing not to pay, and exploring options for automating collection of lower value tax debts. There is also more money for recruiting more HMRC debt management and compliance staff, and for HMRC partnerships with private debt collectors to recoup more unpaid tax debts.

Unlocking growth

more governm capi in infrastructu in Reeves said the procurement be streamli

The government will spend £13bn more on capital investment, including in infrastructure, housebuilding and particularly in defence.

Reeves said in her speech the country’s “broken” defence procurement system would be streamlined to give small businesses “better access to Ministry of Defence contracts”. The government will publish an interim report this summer on its proposed reforms to business rates, ahead of further policy detail in the Autumn Budget.

Ministry o

Stephen Lynch is a freelance journalist

The gov an interim its propose rates, ahea detail in th Ly jo

The IFA tax number w the indus can be f tinyur

The IFA tax series focuses on a number of tax topics and features speakers who are experts within the industry. More information can be found at:

tinyurl.com/IFA-22069

With beta-testing launched as far as MTD is concerned, what lessons have been learned by those who have ventured forth? And should you and your clients sign up? Richard Sergeant asks.

he history of Making Tax Digital for income tax self-assessment (MTD ITSA) has felt like a long one, and that’s even before mandation starts in April 2026.

A journey which, on the whole, has been stretched by HMRC delaying the start twice, and with various tweaks and changes around who would be included and when.

It’s no wonder that there has been a degree of scepticism around whether it will start as planned next year (although the consensus is generally that it will), and if both HMRC and firms will be ready.

History shows us that firms will be ready. Acting to comply, and to help clients comply with regulatory change, is at the heart of what accountants do and, although there are bumps in the road, the profession has a proud record of getting to where it needs to be on time.

Whether or not HMRC will be ready is obviously outside anyone else’s control but the signs look positive. Not least because the next round of testing, called the Public Beta, opened in April 2025.

From a poor pilot to mass participation

Previous testing phases for MTD have seen poor participation rates, with only nine individuals participating in 2022 in what was known then as ‘the pilot’.

This was mainly due to the very limited scope of who could join: effectively the very smallest and least complex clients, which didn’t inspire the confidence of many firms to join in.

This time around, the definition of who can enter the beta is much broader, although there are still hard constraints that will rule some out. HMRC provides a summary of this on their website: tinyurl.com/IFA-22067.

In general terms though, if you have fairly straightforward clients with selfemployed and property income, they can choose to join MTD early. Given the initial threshold for mandation in 2026 is for clients with combined income of more than £50,000, it would make sense that these would be some of the best candidates to go with.

By joining the beta they will need to start keeping digital records using compatible software and file updates to HMRC quarterly. These aren’t tax returns, but cumulative trial balance data, meaning that any missed invoices or bills can be added after an update has been submitted and be picked up in the next update.

Beta’s advantages

Quite simply, the main advantages of joining and getting clients into the beta is to see how things will work. There is nothing like having real

experience of a new system to ensure that both you and your clients know what to expect, and that any issues can be ironed out in plenty of time.

Lee Coombes, director of Lee Coombes Accountancy Digital, is ahead of the curve when it comes to preparing both his firm and clients for the latest round of MTD: “We’re effectively pretty much ready to go as all of our clients are digital, one way or the other. We’ll be adding clients to the beta to make sure that we understand how it works, and make sure we’re on top of any issues as they arise.”

The kinds of issues to be found out along the way are likely to be operational as much as they are technological. For example, if you think your clients will need regular help and support in getting their digital records in good order, what will that mean in terms of how you will run and look after their bookkeeping?

You’re going to learn a lot more from being on the inside rather than the outside

Penny Allard, director of Wild Bookkeeping, has been constructing her services to fit around the broad range of self-employed clients.

“For those that need our full bookkeeping services it’s been very straightforward as we’ll continue to do now what we’ve always done for them, but some of the smaller clients don’t need daily or even weekly bookkeeping. For them we’ll be looking at a quarterly review service. How this works for us, and how we then have to work with our clients, is something we are working out as we prepare.”

While Lee Coombes is sure that automation will mean “we are pretty much able to scale to take on new clients without creating a situation where we have big quarterly peaks,”

Penny Allard is less sure: “We’re going to have these quarterly pinch points where everything’s got to be done in a month. So, it’s possible that we will have two quiet months and a busy month.”

The point of the testing is that these hypotheses can be played out and optimised well in advance of having to load all their clients on in March 2026.

Building client confidence

There’s no doubt that there will be a good number of clients to whom the MTD agenda will be a tough sell, and will probably see it as both an unwanted expense and a waste of time. Having ‘no choice’ though, is as good a reason as any of us will be able to give. But there could be benefits for clients.

“In the longer term they can have better sight of their figures and their tax position, which is useful, and should help speed up the end of year process – giving them more notice of what they will need to pay,” as Lee Coombes points out, and adding that their service will reflect this. “We will be providing them with a report that includes a tax estimate,

• • Talk to your clients and gain their permission

• • Ensure they are authorised in your new Agent Services Account

• • Make sure you will be using compatible software

• • Sign up them up online. Full details can be found here: tinyurl.com/IFA-22067

as we submit quarterly updates.”

In the short term, Penny Allard explains that “although we’ll be doing the majority of the work, actually there will be a need for clients to get used to software and the habit of doing things more regularly”.

“I want to make sure that they’ve had plenty of time to get used to it, and that they are confident.”

Much to gain, little to lose

Whether or not you feel comfortable with the idea of putting clients onto the Public Beta, the general view is that there is much to gain and not a lot to lose. Along with making best use of the time available to get clients ready, Lee Coombes takes a pragmatic view of why it’s good to be on board.

“I don’t see why every accountant and bookkeeper wouldn’t be trying to get at least some clients on the trial, just so that there are no surprises later down the line.

“You’re going to learn a lot more from being on the inside rather than outside getting information second hand. It will also help you see what can be automated and make sure it’s up and running way before time.”

Richard Sergeant is a freelance journalist

It’s become more vital than ever for accountants in industry and practice to safeguard their devices and data.

Cyber criminals are using increasingly sophisticated techniques to access business data, including deepfakes, advanced phishing techniques and account takeover fraud.

The Cyber Security Breaches Survey 2023 reveals that over one in five

businesses (22%) were victims of cyber fraud during the year.

To mitigate the risk of misappropriated cash, data and potential fines, accountants should familiarise themselves with technology and policies to protect their data and devices and devise a strategy for rolling this out across their firm or business.

Strong password policies

Start with the fundamentals by creating a policy requiring all employees to set strong passwords:

UNDER

• • Length – aim for a minimum of 12 characters.

•

• Complexity – passwords should use a mix of uppercase and lowercase letters, special characters, letters and numbers.

•

• Uniqueness – employees should use unique passwords for each separate account they interact with and be restricted from reuse across different systems.

Simple practices and policies can protect your devices and data, writes Nick Levine.

LOCK KEY

• • Updates where necessary –Until recently, a common approach has been to update passwords periodically, every 30 to 90 days. However, we’re seeing a move away from this trend because it often leads to users creating weaker passwords. Instead, only force updates strictly where necessary, such as in the case of suspected data branches.

Multi-factor authentication (MFA)

MFA is a security method requiring users to use two or more types of identification to access accounts and data.

It adds an extra layer of security by requiring an additional time-sensitive one-time-use password, passcode or biometric identification to be entered alongside standard passwords.

This extra barrier means misappropriated passwords can’t be used in isolation to access data.

Accountants may already be aware of this method due to HMRC actively encouraging users to opt in to use MFA.

Passwords and codes are often sent to a device other than the one users try to log in with. These are sent to mobile phones and tablets as text or by scanning a QR code from authenticator apps.

Widely used authenticator apps include Google Authenticator, Microsoft Authenticator and Authy. Software vendors relying on MFA authenticator apps will point users to specific ones.

Enforce encryption across all devices

It’s more common than ever for employees to work remotely via mobile phones, tablets and laptops.

An on-the-go, work-from-anywhere workforce increases the likelihood

of devices being lost or stolen. While it can be costly for businesses to replace devices, unauthorised data access presents a greater risk because of reputational damage and financial loss.

Issuing a company-wide policy of enforcing full-device encryption to protect data is therefore imperative. PC users should enable BitLocker on laptops and tablets, and Mac users should turn on FileVault.

When encrypting mobile devices for the first time, ensure data is backed up before starting the process, and make sure devices are fully charged or plugged into a power source. iPhone users encrypt their data automatically once passcodes are set on their devices. Android users can encrypt their devices by following the settings prompts.

When setting up encryption, pick secure passwords and keys, write them down and store them safely. To further bolster encryption efforts, use apps with encryption features and encrypted storage devices when backing up data.

Access control

documents, and the ability to post and approve journals and payments.

Most software vendors and banks used by accountants in industry and practice should allow users to set up profiles of employees with different access privileges, segmenting certain tasks so they require at least two individuals to post and approve entries.

It’s good practice to regularly audit who has access and privileges and make changes where necessary.

Virtual private networks (VPNs)

When setting up encryption, pick secure passwords and keys, write them down and store them safely

Working remotely also creates additional risk due to employees using their devices to access data on public wi-fi networks that are often unencrypted and vulnerable to attacks from hackers. Additionally, there is the risk of employees connecting to fake wi-fi networks set up by criminals that appear legitimate but are set up to steal user data.

Access control is a component of data security that allows organisations to access and/or edit information and resources based on the roles and responsibilities of individuals. For example, some types of data are more sensitive than others because of their confidential nature or the risk of incorrect or fraudulent activity. This covers the likes of payroll, HR

To combat this, practitioners and employees should only connect to public wi-fi networks using VPNs. VPNs provide encrypted connections where data can be sent and received securely. There are many VPNs on the market, including NordVPN and Hotspot Shield. When selecting which provider to use, consider speed and comparability with devices. Setup and installation are relatively quick and easy.

Nick

Levine is a freelance journalist

For decades, accountants have been seen as numbercrunchers, responsible for bookkeeping, tax filings and financial reporting. However, regulatory changes and technological advancements are transforming the profession. The shift from paper-based tax returns to digital platforms, particularly through Making Tax Digital (MTD), has significantly changed accountants’ roles. This transition requires accountants to become strategic business advisers, not just compliance specialists. Though MTD represents a major hurdle, overcoming it could unlock your advisory potential.

The compliance hurdle MTD is one of the UK’s biggest regulatory changes, requiring businesses to maintain digital records and submit real-time tax data using HMRC-compatible software. MTD for VAT is already in effect, and MTD for income tax self-assessment (MTD ITSA) will follow in 2026. Although MTD aims to improve efficiency and accuracy, it presents challenges. Accountants must adapt their systems and educate clients.

For firms relying on compliance work, this shift feels daunting, but those who integrate MTD successfully will position themselves to offer highvalue advisory services.

Making the transition

With smooth digital processes between accountants, clients, and HMRC, real-time financial data becomes accessible. This allows accountants to provide a range of advisory services previously difficult to scale. Key areas where MTD aids the transition include:

Making Tax Digital and the leap to business advisory

Being ‘MTD ready’ is more than just a compliance burden. There are rewards to be won too, says Bill McGregor.

• • Technology and digital transformation – Advising on MTDcompatible software and digital bookkeeping systems

• • Financial strategy and growth planning – Offering cashflow forecasting and business growth strategies

• • Tax efficiency and business structuring – Helping manage tax obligations and reduce liabilities

• • Risk management and forecasting

– Identifying financial trends and risks before they become issues

• • Funding and investment advice

– Assisting with securing funding through up-to-date financial reporting

• • Regulatory guidance – Ensuring clients stay compliant while leveraging digital tax reporting

Collaboration and soft skills

Navigating MTD requires more than technical knowledge. Accountants must act as educators and communicators, guiding clients through the transition. This involves:

•

• building strong client relationships;

• • proactively addressing challenges and providing tailored solutions;

• • simplifying tax processes; and

• • adapting to ongoing regulatory changes and evolving technologies.

Firms that master MTD will be positioned to offer long-term business planning and value-driven insights, making them indispensable advisers. This is a defining moment for accounting. Those who successfully navigate MTD will find it not just a hurdle, but a gateway to greater value and a future-proof practice.

Bill McGregor is the IFA’s Northern Ireland regional ambassador and owner of BMG Accountants

Describe yourself to us...

I’m from east London, near Essex, and I volunteer with Girlguiding as a guide leader in training. Before I started working, I studied at London South Bank University and gained a BA in Business Management, which is when I first heard about the IFA.

What is your role at the IFA?

I’m part of the membership team. My role now focuses on assessing the new membership applications we receive and getting them ready to be signed off. I also support processing applications from members for practising certificates and AML supervision and getting them ready for approval.

What is the most interesting part of your job?

The most interesting part of my job is the variety. I get to do a lot of different things – from supporting members over the phone to helping organise some of our renewal communications.

Most embarrassing/funny moment in your career?

One of my most fun moments was as a volunteer mentor at a secondary school. We got into teams and competed for points to win prizes. We were competitive, and my favourite competition was solving riddles. We only lost that one by a few points!

OUR STORY

From hot cheese and potato pie to the Cold War – IFA membership and growth executive Alyce Tatchell enjoys variety in her work and life.

What is the most memorable/ rewarding moment in your career?

thing I remember learning how to cook: cheese and potato pie. It’s exactly what it sounds like, baked mashed potato and cheese. It’s my family’s tradition to have it at celebrations and events.

My most memorable moment was when I had to help with teaching a couple of classes during Covid. I walked in to support a few students and ended up teaching the whole GCSE class about the Cold War, since the teacher couldn’t be there.

What is your favourite food?

My favourite food is the first

How do you spend time away from your role? At the moment I’m completing my leadership training for Girlguiding, and I help run sessions for a Guide and Ranger unit once a week. Outside of that, I like to read and explore London.

Why is the future bright with the IFA?

The IFA is growing and so is the diversity and size of our membership. We’ve still kept the personal touch that members say they like so much.

ALYCE TATCHELL

WEBINARS

MEET AND

Regional networking meetings

Eastern England

16 June | 6pm – 8pm

29 September | 6pm – 8pm

24 November | 6pm – 8pm

Anglia Ruskin University

Bishop Hall Lane

Chelmsford CM1 1SQ

CPD hours: 2

Price: Free

Regional ambassador: Ian Hornsey

London

11 June | 5.30pm – 8pm

10 September | 5.30pm – 8pm

12 November | 5.30pm – 8pm

Northeastern University

London – Room 121/123

Devon House

58 St Katharine’s Way

London E1W 1LP

CPD hours: 2.5

Price: Free

Regional ambassador: Ermal Krutani

Midlands

19 June | 6pm – 8pm

11 September | 6pm – 8pm

13 November | 6pm – 8pm

Venue: check website for details

CPD hours: 2

Price: free

Regional ambassador: Mujibur Rahman

Northern England

22 September | 6pm – 8pm

19 November | 6pm – 8pm

Venue: check website for details

18 June | 6pm – 8pm

8 October | 6pm – 8pm

Venue: check website for details

CPD hours: 2

Price: Free

Regional ambassador: Robin Murray

Northern Ireland

19 June | 2pm – 5pm

18 September | 2pm – 5pm

20 November | 2pm – 5pm

Dunsilly Hotel

20 Dunsilly Road

Ballymena

Northern Ireland BT42 2JH

CPD hours: 3

Price: Free

Regional ambassador: Bill McGregor

Scotland

Edinburgh

24 June | 5.30pm – 7.30pm

25 September | 5.30pm – 7.30pm

FRP Advisory Offices, Apex 3

95 Haymarket Terrace

Edinburgh EH12 5HD

Glasgow

16 October | 5.30pm – 7.30pm

FRP Advisory Offices, Level 2

The Beacon

176 St Vincent Street

Glasgow G2 5SG

CPD hours: 2

Price: Free

Regional ambassador: Duncan Walker

Southwest of England & Wales

3 July | 5.30pm – 7.30pm

25 September | 5.30pm – 7.30pm

20 November | 5.30pm – 7.30pm

The Bristol Golf Club

St Swithins Park

Blackhorse Hill

Almondsbury

Gloucestershire BS10 7TP

CPD hours: 2

Price: Free

Regional ambassador: Available

IFA Tax series

Focusing on tax topics relevant to small business, our quarterly series features speakers who are experts within the industry. The webinars run across three weeks and last two hours each. Quarter 2 5, 12, 19 June

Quarter 3

11, 18, 25 September

Quarter 4

13, 20, 27 November

CPD hours:

Per quarterly series: 6

Bundle: 24

Price per quarter:

IFA members & affiliates –£109

Non-members – £130

Price per bundle (12 webinars): IFA members & affiliates –£390

Non-members – £468

Maintaining your continuing professional development couldn’t be easier, wherever you are.

INGS

IFA conferences

IFA Conference and awards

26 June 2025

Royal College of Physicians

11 St Andrews Place

Regents Park London NW1 4LE

Price:

IFA members & affiliates:  £165

Non-members: £190

IFA Direct & university-embedded students : £87.50

IFA international conference online

Financial Reporting series

Preparing financial statements and annual statutory accounts is a constant part of an accountant’s role — especially for those working for a small business or advising them. Matthew Shaw provides updates in financial reporting requirements plus any small changes in the accounting treatment of different areas.

Quarter 2

4 June | 10am – 12pm  Quarter 3

17 September | 10am – 12pm  Quarter 4

3 December | 10am – 12pm

CPD hours:

Per quarter: 2

Bundle: 8

Price per quarter:

IFA members & affiliates – £59

Non-members – £83

Bundle price (4 webinars)

IFA members – £209

Non-members – £294

Visit ifa.org.uk/cpd for more information about events and to register.

6 November 2025

CPD hours: 7

Price:

IFA members & affiliates – £75

Non-members – £95

IFA Direct & university-embedded students – £35

Learning

CPD essentials bundle

This comprehensive package offers 40 CPD hours through a combination of live webinars, the IFA AML Conference Online, and on-demand sessions.

What’s included:

• IFA Tax Series 2025

• IFA Financial Reporting series 2025

• IFA AML Conference Online 2025

• Introduction to Sustainability

Reporting on-demand webinar

If you can’t join live all sessions are recorded and sent to you so you can watch them at your convenience. Various dates (see specific event web page)

CPD hours: 40

Price:

IFA members & affiliates – £599 Non-members – £799

Future-proof your practice

How to attract more advisory clients in low effort, low to no cost ways.

22 May | 12pm – 1pm

Price:

Members & affiliates: Free

Non-members: £40 per webinar

CPD hours: 1

Payroll

webinar

Hosted by the IFA with guest speaker Alison Cook, our payroll webinars are intended for members and nonmembers who wish to build a better understanding of payroll matters.

27 May | 9:30am – 11am

Price:

IFA members & affiliates – £55

Non-members – £70

CPD hours: 1.5

AML matters: How to conduct a risk assessment for your firm and your clients

Our programme of practically focused webinars support and help build understanding of anti-money laundering requirements for members and accounting professionals.

28 May | 9.30am – 12pm

18 June | 9.30am – 12pm

24 June | 9.30am – 12pm

Price:

IFA members & affiliates – £70

Non-members – £90

CPD hours: 2.5

IFA UK MAC town hall webinar

Led by our dedicated regional ambassadors, the town hall provides a platform for members to connect, share insights and discuss key industry developments.

10 June, 16 September, 2 December | 12pm – 1pm

Price: Free

CPD hours: 1

MIDLANDS

An investment in time

Midlands regional ambassador Mujibur Rahman highlights supporting the development of local infrastructure –and the financial decision that students make on their future.

Tell us about your roles and responsibilities –has anything changed since we spoke last year?

As a finance professional, and in my role as a regional ambassador with the IFA, I am often asked to get involved in business and community groups. Over the last year, I have taken a voluntary role as chair of the Business Forum for Worcestershire Cultural Compact, and more recently, I have joined the board of governors at Heart of Worcestershire College.

What is the current economic and business climate in the Midlands?

The bigger cities in the Midlands, including Birmingham, are doing far better than the surrounding towns and villages, where the cost-of-living impact seems more apparent. I have recently lost some clients based in smaller towns but

gained new business from the city. The biggest problem is the ongoing (as Financial Accountant goes to press) bin strike in Birmingham, which is causing major issues for businesses and the community. Although a domestic issue, businesses suffer as commercial bins are being filled by the public, which isn’t good.

How does the IFA work with business, members and the local community?

We moved our regional faceto-face meetings from Solihull to Birmingham City University. This has driven numbers up greatly – we’re getting more than 30 registrations.

The move has encouraged students to join us too.

The future is about promoting the institute to the next generation. The networking opportunity allows our members to connect with potential partners and students for job opportunities.

REGION IN FOCUS: THE MIDLANDS

It’s full steam ahead for construction of HS2 in the West Midlands. A key section near Water Orton in Warwickshire has been completed – the first of 13 viaducts, reports the BBC.

All 13 will be required to take trains from London to Birmingham and then on to Staffordhsire. Client director Matt Young said that works were “at peak construction”. Some 10,000 people are working on the project in the West Midlands out of 30,000 in total.

The Telegraph reported in March that part of the scrapped HS2 leg heading north might be revived with a privately funded line between the West Midlands and Greater Manchester.

• • Several Midlands entities of Haines Watts have been acquired by TC Group. However Shazin Tayub, of Haines Watts Leicester Ltd, said the firm was committed to the Haines Watts brand, East Midlands Business Link reports.

• • A solar farm is to be constructed next to Donington Park Services, creating enough energy to power 42 electric vehicle charging bays, reports East Midlands Business Link.

• • Leicestershire-based SMB College Group has celebrated the start of development for an £18m campus at Brooksby. The facility is a “state-ofthe-art agri-tech centre,” reports East Midlands Business Link.

• • Solihull-based Jaguar Land Rover has wiped out its £5bn debt pile. The announcement was made by its CEO Adrian Mardell during a visit by prime minister Sir Keir Starmer. Mardell said the government had to support the car industry following the imposition of US tariffs.

Image: Alamy

We spoke over a year ago –what’s happened in your life and career?

I am working to expand my BIMT Campus in other cities of Sri Lanka, focusing on management and technology education.

What has happened in your work with the IFA?

I have been IFA regional director for Sri Lanka over the past eight years.

What has happened in Sri Lanka?

In 2024, the economy grew by 5%, reversing the contractions of the previous two years. Agriculture, industry and services expanded by 1.2%, 11%, and 2.4%, respectively. However, challenges persist. The US has imposed a 44% tariff on $3bn (£2.3bn) worth of Sri Lankan exports, primarily affecting the apparel sector. Although the tariff has been suspended, most goods still face a 10% duty, posing risks to the nation’s economic recovery.

Has doing business in Sri Lanka changed since we last spoke? If so, how?

The government has enhanced support for entrepreneurs and foreign

STATS

US$84.3bn

GDP (2023)

SRI LANKA

YOUR WORLD

Farshath Abdul Jamaldeen points to Sri Lanka’s ongoing improvements in its economy and the strong influence of the IFA.

investors, especially in business process outsourcing (BPO), offering tax incentives and infrastructure upgrades. The enactment of the Economic Transformation Act No. 45 of 2024 created investment zones and agencies such as the Economic Commission to further streamline foreign investment.

What events have been run in the last year on behalf of the IFA?

One of our key initiatives has been a monthly workshop series, where we invite CEOs and CFOs from leading companies across various sectors to share their insights and experiences. IFA members and students can learn directly from top-level executives, gain industry perspectives and build professional networks.

What is the future for the IFA in Sri Lanka, and why?

Our regular local meetings and workshops ensure members’ technical skills remain sharp and aligned with both business and practice demands.

The IFA plans to host even more impactful events this year, including exclusive networking opportunities, high-profile guest speakers and specialised training sessions.

US$6bn Trade deficit (2024) 5.6%

Sri Lanka is in talks with the International Monetary Fund (IMF) over its fourth review, after a multi-billiondollar bailout.

The IMF recently produced details of its

22 million Population (2023)

Estimated GDP growth (2024) -4% Inflation (January 2025)

third review of the current situation in Sri Lanka, having initially provided a $2.9bn funding package in 2023. This review outlined details of Sri Lanka’s political transition, having

undergone elections in late 2024. It has been noted that the country’s economy has rebounded in the past three years.

However, the fourth review takes place under

44%

Suspended US tariff on Sri Lankan imports

the backdrop of stiff import tariffs put in place by US president Donald Trump. This tariff is suspended but the baseline 10% tariff still applies (as Financial Accountant went to press).

All breaches of the IFA’s Bye-laws and Regulations are taken seriously. However, with growing member numbers and to achieve a more streamlined disciplinary process, the IFA has implemented a new approach for dealing with cases that would ordinarily go to a Conduct Committee. We have introduced a new fixed penalty process, effective from 1 January 2025.

A fixed penalty is a financial fine imposed on a member, member firm or contracted firm by a case manager without undergoing a Conduct Committee process.

Disciplinary Regulation 5 defines the types of breach covered, which include: CPD failures; failure to submit an annual return; failure to appoint an alternate; and failure to have adequate professional indemnity insurance.

Complaints can be received from external sources and can be generated internally. Complaints expected to fall within this process will often be IFA-generated. This is likely to be because of discreet enquiries or compliance work, or projects within the IFA. Following an initial assessment, if the case manager finds the complaint is established by the facts and information obtained, then a fixed penalty may be proposed.

What happens next?

Once the case manager decides that the fixed penalty process will address the complaint, and the fine is proportionate, they will consider sending a notice to the member, usually by email.

The fixed penalty notice will:

• • specify the breach and quote the relevant Bye-law, Regulation or Code of Ethics subsection triggered;

What is the IFA’s new fixed penalty process?

•

• the amount of the fixed penalty and costs; and

• • a summary of the proposed publicity that will appear on the IFA website and in Financial Accountant magazine.

The member will have 15 working days to accept the proposal. If the member does not accept the proposed fixed penalty, the case will progress to the relevant Conduct Committee.

Two fixed penalties

It is important to note that if this is a second fixed penalty, the fine and costs will be doubled.

Where the member has already received two fixed penalties in a five-year period, the matter will

be referred to the director of professional standards. Following a discussion, which will take into account the fixed penalty policy and the sanctions guidance, the matter may then proceed to the relevant Conduct Committee.

Any matters referred to a Conduct Committee could include much higher sanctions; at the disciplinary committee level it could mean removal from the register of members.

The new procedure is not an alternative to compliance. Its intention is the swift and professional resolution of breaches identified and to bring errant members into alignment with the rest of their professional colleagues who responsibly comply with their professional obligations.

In summary, if members complete their annual returns promptly, ensure they comply with CPD obligations, and ensure that all aspects of their reporting requirements to the IFA are honest, accurate and timely, the fixed penalty process will not be invoked.

Read the new fixed penalty policy and updated sanctions guidance at ifa.org.uk/about-us/publicinterest/ memberregulations

Lisa McNeela is the IFA’s disciplinary case manager

BUSINESS DIRECTORY

Tax Fee Protection Insurance

Vantage Fee Protect

Tax Fee Protection Insurance protects against accountancy fees incurred dealing with an HM Revenue & Customs Enquiry or Compliance Check.

Vantage is staffed by Tax Fee Protection Insurance experts who have years of experience working either for Vantage or across the industry. With over 1800 accountancy clients ranging

from sole practitioners through to top 100 accountancy firms, Vantage are able to provide a tailored solution to each practising accountants needs.

Vantage have 225 combined years of fee protection experience, a 95 retention rate and 99% of claims are accepted.

Please mention that you are an IFA member when contacting Vantage Fee Protect.

Simplifying Income Tax Self-Assessment

APARI Pro

APARI Pro is a unique platform offering specialist tax services to accountants and their clients. It uses automated data capture and extrapolation to deliver significant efficiencies along with added-value services to accountancy clients.

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Self-invested personal pensions

Mattioli Woods

With offices across the UK, we provide trusted advice, high service standards and personalised delivery to over 16,000 clients with assets under management, administration and advice of over £16 billion. As one of the UK’s leading providers of wealth management, including self-invested personal pensions (SIPP) and small self-administered schemes (SSAS), our arrangements are often central to our clients’ pension strategy.

FEE PROTECT 01162749123 info@vantagefeeprotect. com vantagefeeprotect.com

APARI PRO 01788 422175 accountants @apari-digital.com apari.pro

WOODS 07792 775174/0116 2408700

kieran.mehngar@ mattioliwoods.com mattioliwoods.com