July 2024
The IFA’s Jonathan Barber (pictured) underlines the importance of CPD in helping you keep up-to-date with regulatory changes.
In the constantly changing landscape of accounting it’s crucial to stay abreast of the latest financial regulations to remain relevant.
This serves as a reminder of the critical importance of CPD for both individual growth and the industry as a whole.
Once qualified, CPD helps accountants stay up-to-date with the latest changes, allowing them to maintain proficiency in the role and develop the skills needed to carry out their responsibilities to stay on the right side of the law. It’s also essential in order to maintain the validity and currency of their qualifications. It’s about reducing risk as much as enhancing trust and promoting competency.
Some of the biggest regulatory changes to come into effect are now happening, with more being implemented over the coming years.
HMRC has rolled out year-long private Beta testing of its MTD for ITSA pilot, which started on 22 April 2024, involving firms with self- employed clients or landlords earning an annual income of over £50,000. From April 2026, they will be legally required to maintain digital records and provide quarterly updates of their income and expenses to HMRC. From April 2027, this will include individuals earning over £30,000 a year.
The MTD for CT pilot scheme is also now under way (as of 1 April), marking the beginning of mandatory participation from April 2026.
Introduced on the same date, the new R&D regime changes for accounting periods combines the previous RDEC and SME R&D relief schemes. Expected to greatly impact how businesses, especially SMEs, utilise R&D tax credits, HMRC will take action against fraudulent R&D claims, and some businesses may be required to repay previously claimed funds.
The Economic Crime and Corporate
Transparency Act is set to bring about several changes in UK company law in the coming years, as it focuses on improving the accuracy and quality of the data on its registers, to help tackle economic crime and drive confidence in the UK economy. Since 4 March, Companies House has increased authority to investigate information, adopted stricter measures for company names, updated regulations for registered office addresses, and new lawful purpose declarations.
This momentum shows the crucial need for accountants to increase diligence where possible, while emphasising the key role CPD plays.
IFA Direct’s Online Education Programme
More and more, CPD is being viewed as the upside to ongoing and increasingly complex regulation. As an internationally recognised professional accountancy membership body providing dedicated support to SMEs and SMPs, the IFA offers a huge opportunity for members to further their development and skills through IFA Direct, with multiple benefits for themselves, firms, the industry and clients. Ultimately, it builds trust, and surely there is no better outcome than that.
- Jonathan Barber is Executive Director – UK of the Institute of Financial Accountants
