Accounting profession singles out Brexit as biggest headache
It's time for accountants to "step up to the plate" when it comes to Brexit, according to the ICAEW's head of tax.
Frank Haskew says: "Our profession is facing a generational, monumental change. This is massive for all of us."
He adds (perhaps with a hint of understatement) that clients across the country are "starting to get worried".
And he is urging the accountancy profession to work out ways of engaging meaningfully about what the future holds... especially for the 145,000 VAT-registered UK businesses that trade exclusively with Europe.
A lot of work to do
"There's a lot of work that we need to do," he told more than 100 delegates at the chartered accountant body's Deconstructing Tax conference in London last week.
"We do not know how to come into this [Brexit scenario] and engage."
But Haskew reckons that "we have to assume no deal" and that future trading conditions will be set through collaboration with the World Trade Organization.
Brexit headwinds
ICAEW member education will be at the heart of the profession's ability to negotiate the Brexit headwinds successfully.
Haskew's comments about monumental change refer also to HMRC and its prospects for coping with its own structural changes, making tax digital, plus the customs changes brought about by Brexit.
"HMRC are clearly struggling," he says. He points out that there has been an admission by HMRC chief Jon Thompson and Co that "we can't do all that they [the government] is asking".
Internal reorganisation
The HMRC could administer any one of MTD, Brexit or the internal reorganisation ... to do all three concurrently is impossible. Hence with Brexit, "everything else is put on hold".
Haskew says that the ICAEW tax faculty will be on hand to help accountants deal with the EU uncertainty, initially with the resources available on its website here.
The Deconstructing Tax conference proved to be an interesting and worthwhile day, with interesting sessions from the likes of Rebecca Benneyworth, John Cassidy, Peter Rayney, Lloyds Bank's Donna Dimmack and and SWAT's Sharon Cooke.
I'll be doing a short round-up of the conference on Friday.
Accounting firm offers a Brexit solution
As the debate over Brexit continues to rumble on, one of the south-west’s leading firms of accountants is helping businesses to continue trading with the EU regardless of whatever deal is struck.
Through its membership of an international accountancy network – MGI Worldwide – Milsted Langdon will be working with its colleagues in Dublin to help UK businesses set up Irish registered subsidiary companies that will allow them to continue enjoying the current trade arrangements with the EU.
A team of accountants from the firm, which has offices in Taunton, Yeovil, Bath, Bristol and London, recently met with their colleagues in Ireland to flesh out the arrangements ahead of the UK leaving the union in March 2019.
The Brexit effect
Simon Rowe, partner at Milsted Langdon, says: “Companies who trade with the EU are understandably worried about the effect that Brexit will have on their ability to trade.
“A simple solution for many could be to set up an entity within the EU through which they can continue to trade with their overseas customers in case no deal is achieved or the deal agreed restricts trade. This is why we have strengthened our bond with our fellow MGI members in Ireland to help businesses prepare.”
As part of the service Milsted Langdon will help to incorporate an Irish registered company with all the necessary tax registrations and banking arrangements.
Negligible cost
“If the UK does get a ‘good deal’ it is fairly straightforward for the company to be struck off at negligible cost,” adds Simon.
“However, if it is required then businesses will be ready to go and they won’t get caught in the inevitable delays which will occur as businesses who haven’t planned ahead rush to follow suit.”
Milsted Langdon believes a number of businesses could benefit from this service and hopes that those with a large customer base in the EU will consider utilising the firm’s expertise and connections through MGI Worldwide.
To find out more about Milsted Langdon’s Brexit services, please visit HERE
How accountants can develop a formula for success
Welcome to the second article from accountancy speaker and author Martin Bissett. Martin focuses on practice insights and giving advice on how accountants can improve their businesses ... today, 10 practice growth tips
- If Practice Growth marketing success was a formula, it would be (h+Da) x I
Where: h=hunger; Da=Developing ability I=implementation. - (DPC) = Direct Personal Connection, the core skill required to pro-actively win advisory work in the accounting profession.
- Practice growth is not a 'goal'. It's a set of behaviours and processes supported by proven marketing and business development activities.
- At the core of all great practice growth is a 'balanced scorecard' meaning that growth can't come at the expense of retention and vice versa.
- Strong fee growth is not just the success of client retention strategies, but also the triumph of powerful marketing communications.
- Many vendors look to make money out of the accounting profession by selling them stuff that they haven't got the behavioural set to use.
- The hope of the business owner reaching their goals, still lies in the hands of the most forward-thinking accounting firms.
- CRM use and adoption by partners and team alike mustn't be a choice but non-use and non-adoption must have a consequence.
- Need a marketing boost? Make a list of every outcome (cars/houses/education/holidays) you've created for your clients. Now leverage it.
- Here's a breakdown of accountants' conversion ratios of new clients by source of initial inquiry in the past 21 years:
- Telemarketing 25 per cent.
- Networking 5-10 per cent.
- Events 8 per cent.
- Referrals 90 per cent.
- Walk-ins 95 per cent.
Spend wisely in 2019! See you next time, Martin.
Join Martin's global community of accountants at HERE