Salary Survey
Riding the wave
The 2023 Salary Survey reveals a buoyant and exciting picture for AAT members, reports Christian Doherty
AT has just conducted its latest Salary Survey, and the results make for encouraging reading, as salary levels have shown an increase across the board from 2021 levels, growth in the incidence (and value) of bonuses, and job satisfaction levels holding steady. After a difficult period post-pandemic, AAT members are beginning to see improvement in a variety of aspects of their working lives. Salaries, bonuses and licensed members’ fee incomes have all seen healthy boosts.
Members’ salaries rise with inflation
The average salary for AAT members rose 14% to £36,000
Progression to FMAAT means a 26% increase in pay – on average £44,000
This year’s survey revealed a broad upswing in salary levels for both qualified members and students, with an increase in both categories of 14% for the two-year period since 2021. This compares to lower increases over the pandemic of 10% and 9% respectively for the two-year period from 2019 and 2021.
Overall, more than three-quarters (77%) of non-licensed members received a pay rise in the last year, with average median salaries now standing at £36,000 for members and £25,000 a year for students.
There is more good news for long-serving members, as FMAATs now receive £44,000 on average — a 26% jump on the average MAAT salary.
These increases are in-keeping with salaries across the wider accounting profession, with the Office for National Statistics’s Annual Survey of Hours and Earnings showing an earnings increase of 14.7% among full-time employees in the UK in accounting, bookkeeping, tax and audit professionals.
A greater proportion of members received a bonus in the last year (36%) compared to the percentage actually on a bonus scheme currently (25%), indicating that employers will often give discretionary bonuses as incentives and to help them retain talent.
The static bonus landscape in 2021 appears to be a thing of the past, with 2023’s survey showing very significant increases by comparison: bonuses have increased 50% for full and fellow members and 60% for students over the last two years. The proportion who have received a bonus is also up, this year to 36% (+4%).
Interestingly, bonuses have gone up to a greater extent than salaries. In 2023, the average bonus represented 1% more of the total remuneration package than in 2021. That means the average bonus represented 4% for professional members and 3% of students’ packages.
CRAIG WIGGINS – SENIOR CONSULTANT AT STAFFING BUSINESS WALTERS PEOPLE
“AAT members strike perfect balance”
“Salaries have increased across the board for accounting professionals but that in part is down to an acute candidate shortage in this area. The biggest increases are for those professionals who have gone on to continue with further qualifications.
“Qualifications and experience will continue to be the most attractive traits a candidate can have. Specialist sector experience is an added bonus – for example if you have stayed within the fields of retail, hospitality, e-commerce – as there is a degree of industry know-how that comes along with that. While there is indeed a candidate shortage, firms are continuing to be picky. From an employer’s perspective, having a USP in your brand is crucial now more than ever – being a company that employees are proud to work for adds value to your package. Offering to support and pay for further studies and qualifications will continue to be a draw for AAT members.
“Overall, what the increases in salary indicates is the value the market places on vocational and technical qualifications – where experience is of more value than a qualification alone, which is where AAT members are able to strike that perfect balance. It is not typical for a company to offer £35,000 or more for a solely-qualified MAAT professional – this would normally be coupled with candidates progressing onto ACCA or CIMA, or they have more than a decade of relevant industry experience.”
Licensed Accountants’ income is 43% higher
Average fees received by Licensed Accountants
Satisfaction rating among Licensed Accountants in 2023
Income rise for Licensed Accountants to £74,000
AAT’s Licensed Accountants are enjoying 2023. Having experienced a drop in average fee income in 2021, this year shows average fee incomes for those who are purely self-employed to be 43% higher than in 2021 and 38% higher than in 2019. This figure grows to 59% for those who are purely self-employed.
Similarly, over half of Licensed Accountants have more clients than 12 months ago, but only 42% say the spend per client has increased. The greatest increases over the last two years can be seen for those with 50 or more clients, although businesses at all levels have seen an increase.
A larger percentage of female Licensed Accountants have seen an increase in their fee income in the last year: 62% of those working full-time compared to 55% of men.
Of those working full-time, 51% of male Licensed Accountants have seen an increase in spend per client compared to 41% of females.
Meanwhile, the proportion of Licensed Accountants who are juggling part-time work and running their own practice remains similar to 2021 with just under a third of Licensed Accountants in this category.
However, one in three now spend more than half their time on their practice work compared to other jobs, up from one in four in 2021 and 2019.
Further highlights
• Level 3 qualification holders who become AATQBs earn 11% more than those who don’t enter membership – an average of 27,800. Three-quarters of AATQBs say that their basic salary has increased over the last year – in line with the 77% of non-licensed members that report the same.
• Once again, the 2023 survey revealed the gender pay gap has risen 1% since 2021. The biggest disparity among non-licensed members shows men working full-time at the professional level earning an average 9% more than women at the same level.
• The proportion of both Licensed and non-Licensed Accountants reporting high levels of stress and anxiety stayed largely steady compared to 2021.
EMILY PALLAGI, MD OF RIPON RECRUITERER
“It’s a seller’s market”
“When I am hiring for a local business, they generally perceive that they’re going to pay more than what an accountancy practice will want to pay. I recently recruited for a finance position in a local business and they were offered £32,000 and if there was such a similar level role at accountancy practice they want to pay around the £24,000- £25,000 level.
“My experience is that employers aren’t so keen offering to support candidates in training. They tend to recruit somebody that can come in and hit the ground running. Therefore they haven’t really got that time to take somebody on to nurture.
“It’s a seller’s market if you’re experienced and qualified. From my viewpoint, it’s a tough job not just to find the right candidate, but for them to accept the job offer. I spoke to an accountant recently who said he would only employ someone who’d completed Level 3 at a minimum. There is definitely a sense that AAT levels are being used to help understand which candidates to progress with and those not worth pursuing. “
