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Hi Reader,

In general I accept your views. My only counter argument is that I bet the vast majority of sole trader, partnership and small limited company accounts and tax returns are relatively routine and straightforward. Otherwise why would so many accountancy firms pay AAT part and fully qualified staff to do this kind of work for less than £25k per year? SJD Accountancy springs to mind.

Considering that the vast majority of this work is probably straightforward, further detailed study and examination in the practical procedures necessary to do the work, if effectively implemented, would, I'm sure, make up for a lack of experience. Bearing in mind that most people starting a small practice will start gradually with one or two clients, will take it slowly and therefore gradually develop their experience client by client. Tuition and examination in practice management and detailed operation manuals would further mitigate risk arising from lack of experience.

The fact that none of the professional accountancy bodies offer this kind of training does not mean that it is not a good idea, not possible and not effective.

Hi David,

I believe you are mistaken. The work that SJD does is actually very complex. They have to determine/assess risk with regards to whether or not the client is inside or outside the IR35/intermediary legislation by referring to the client's contract and working practice, let the clients know the extent of the tax that they may or may not be underpaying by, discuss the use of a non-working spouse for shareholding purposes, discuss the use of additional directors for salary purposes, calculate use of home as office rental charges and create non-exclusive rental agreements, deal with enquiries from HMRC into VAT or personal tax returns, make suspicious activity reports (SAR's) where appropriate, dealing with clients who have clients who are overseas and the associated VAT implications, dealing with clients who are non resident/non-domicile, writing references to Home Office, UKBA, mortgage lenders, dealing with liquidators (MVL and CVL where tax cannot be paid), advising of the use of umbrella companies and avoidance of contractor loan schemes, advising on strike offs versus liquidations and any associated last minute planning to avoid costly liquidations, advising on tax changes such as flat rate scheme or off payroll rules or TAAR changes re: entrepreneur's relief, advising on FRS102 vs FRS105, auto-enrolment, use of B shares and amended articles of association, updating clients with regards to recent tax tribunal cases, director's loan account and P11D/accounting implications, use of subcontractors and additional onshore reporting, advising on penalties and penalty appeals, etc. The work SJD does is far from straightforward and in fact this work is very easy to mess up and result in very costly tax issues, especially as their clients generally earn around £150k/year.

If SJD are using MAAT's to do all of the above then the MAAT should be able to pick up a practising certificate from the AAT very easily as they would clearly be very competent, and have all the practice experience.

I guess the big worry for AAT is for non-practising MAAT's not being aware of all of the above as they don't work in practice and not knowing what they don't know and therefore thinking that their work is simple and routine when really it isn't. When an AAT member gets a practising certificate they become the principal/senior partner of their own firm, and there isn't anyone to go to. Especially because the AAT is getting rid of many of the Croner resources.

The fact that none of the accountancy bodies offer the type of training and exams that you mention suggest that it is not an effective idea for training accountants in all of the above that I have mentioned, and that it is highly unlikely to ever come to fruition.