PublicEye
Four ways AAT is influencing public debate
AAT continues to push for low-risk, efficient and functional AML supervision
AML supervision consultation response
AML supervision has been a major focus of AAT’s policy agenda as we believe several proposals come with major risks. We submitted a response to the Treasury’s consultation on Reforming anti-money laundering and counter-terrorism financing supervision. This builds on the progress made with MP meetings and press coverage. AAT also coordinated a joint letter to the Treasury minister, Baroness Penn, which was signed by all the major accountancy professional bodies to express concerns over the plans.
Response from minister to Accountable policy briefing
Victoria Atkins MP, the financial secretary to the Treasury, has responded to AAT’s latest ‘Make Tax Accountable’ policy briefing in a letter to Sarah Beale. The minister wrote that the government recognises “the role of the professional bodies in the tax system and the work you do to maintain the standards of your membership” and noted the briefing is informing HMRC’s options on raising standards in tax advice.
SME finance inquiry
AAT submitted evidence to the Treasury Committee’s inquiry on accessibility of finance and lending to SMEs. Our submission called for better access to alternative financing platforms with a focus on providing more flexibility and quicker release of funds. We also encouraged the committee to focus on the root causes of why SMEs need finance in the first place, especially in regard to ineffective tax incentives and late payments.
Sexism in the City inquiry
AAT also responded to another Treasury Committee inquiry on ‘Sexism in the City’ which is examining the barriers faced by women in financial services and the progress made on removing gender pay gaps. Our submission highlighted the progress AAT has made against the Women in Finance Charter objectives, including the latest gender pay gap among our workforce reaching -0.2%. We featured one of our council members, Rachel Harris (pictured), and her own experiences of sexism in financial services.
ANALYSIS
Time to get tough on late payment
With UK businesses still struggling against multiple headwinds, addressing late payment could help many survive, says Adam Harper
A recent survey conducted by YouGov on behalf of AAT and the ACCA showed that nearly two-thirds (65%) of MPs think the Prompt Payment Code (PPC) should be made compulsory for firms with over 250 employees.
And they think that with good reason. The Office of the Small Business Commissioner’s (OSBC) own figures underline the scale of the issue: a third of payments to small businesses are late, with the average value of each payment £6,142. It adds 20% of small businesses have run in to cash flow problems due to late payments.
In the UK, the PPC is the main tool for tackling late payment. It requires businesses that are signatories to it, to pay 95% of invoices from businesses with fewer than 50 employees within 30 days, among other measures. Currently the PPC is voluntary.
The code is overseen by the OSBC, which promotes best practice in payment to SMEs and lobbies.
The OSBC was designed as an advocate for the SME sector, but its statutory powers are limited.
Clearly, action is needed. Thankfully, the urgency has been recognised by MPs.
Another lever that MPs are considering is to hand more powers to the OSBC. The survey revealed that over half (54%) of MPs agreed that the OSBC should be able to impose financial penalties for persistent non-compliance with the PPC.
If so many legislators recognise the urgency of the issue, then surely giving more power to those helping SMEs must be part of the solution.
As accountants in business and in practice, we are at the sharp end of this. It’s vital that we speak with one voice.
We want to hear from you
If you would like to contribute your expertise to our policy work, please contact jack.withrington @aat.org.uk.
