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2020-12-31-accounts

ASSOCIATION OF TAXATION TECHNICIANS ANNUAL REPORT AND FINANCIAL STATEMENTS 2020

Registered Charity Number: 803480

Company Number: 2418331

ANNUAL REPORT 2020 CONTENTS

Page
Our vision 2
President’s Statement 3
Annual Report of Council 7
Council and Advisers 12
Public Benefit 13
Lay Public Interest Observer 15
Enforcement of Standards 17
Branches Report 19
Steering Group and Committee Activities 21
Treasurer’s Report 35
Association Governance 38
Committees of Council 42
Statement of Directors’ Responsibilities 44
Independent Auditor’s Report 45
Financial Statements 49
Notes to Financial Statements 53
Biographies of Council Members 68
New Members admitted during 2020 72
Notice of Annual General Meeting 75

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ANNUAL REPORT 2020 OUR VISION

The vision of the Association of Taxation Technicians ("The Association" or "ATT") is to remain the leading educational body in the field of compliance tax law and practice.

The Association's objectives are:

The Coat of Arms

(a) to advance public education in and promote the study of the administration and practice of taxation and the principles of economic and political science in relation to taxation and public finance (b) (i) to prevent crime and

(ii) to promote the sound administration of the law for the public benefit

By promoting and enforcing standards of professional conduct amongst those engaged in the provision of advice and services in relation to taxation and monitoring and supervising their compliance with money laundering legislation.

To do this we:

The Arms granted to the Association in 1990 with Supporters granted in 1997.

The shield shows a gold cross, the Roman X, indicating the tithe or tenth paid in former times. The wheatsheaves represent produce or income and the sword of the Crown's officer is matched by the sword of the taxpayer's adviser. The chequered surround signifies the Court of the Exchequer which used counters on a chequered table-cloth to check calculations. Above the helm is a closed book representing abstruse written law, surmounted by an owl of wisdom. The Arms are supported by a pair of mute Swans, representing constancy, while the plant thrift grows from the banks on which they stand.

  1. Set and administer tax examinations to become a Taxation Technician.

  2. Liaise with and make submissions to the Revenue authorities and Government on the improvement and simplification of taxation compliance issues and relevant tax legislation.

  3. Protect the public by monitoring Taxation Technicians’ compliance with regulations.

  4. Provide grants to other bodies which have similar or parallel charitable objects.

  5. Run conferences and training courses for members, students and the public.

  6. Operate an anti-money laundering scheme under the Money Laundering Regulations 2017 for members in practice.

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ANNUAL REPORT 2020 PRESIDENT’S STATEMENT

Jeremy Coker reports

I was honoured and humbled to be asked to serve an additional year as President so this is an opportunity to reflect on 2020, a year like no other we have experienced, and my second year as President of the Association.

When I was appointed in July 2019, the major challenges and change we anticipated were Brexit and potential regulation of the tax profession – something that HMRC revisits at regular intervals. However, none of us could have been prepared for the unique challenges presented by COVID-19 and the impact it would have on global economies and our dayto-day life.

A former President described his term of office as rather like being at the helm of a ship and steering a safe passage through occasionally stormy waters. With the assistance of my fellow Officers, members of Council and the executive team at Head Office, we have this year had to try and steer the Association through what at times felt like hurricane-force winds.

Strategy

At our last Strategy Day, we made plans for the medium and long-term future of the Association. While Strategy Days continue to be of immense value, the onset of the COVID-19 pandemic meant that we had to implement a number of our plans more

quickly than we had originally envisaged.

One of our previous strategic decisions was to appoint a Chief Executive. We have benefited from Jane Ashton’s leadership and experience over the last four years; but this was really brought into sharp focus this year.

At the onset of the pandemic, Jane, together with Helen Whiteman, Chief Executive of the Chartered Institute of Taxation, showed insight, decisiveness and quick thinking in responding to the specific challenges that were posed. The immediate concern was for the safety of staff, and this meant that individuals were quickly set up for remote working and our Monck Street office was shut long before the government announced the lockdown. This has enabled us to continue to deliver as seamless a service as possible.

Another strategic decision was to explore the possibility of offering our examinations online. The announcement by the UK Government that all GCSE and A level examinations were cancelled for 2020 meant that we had no option but to cancel our May 2020 examinations. It however provided us with the opportunity to accelerate our plans for the delivery of online examinations.

In late June we were able to trial an online paper: Paper 4 – Corporate Tax – and approximately 200 candidates sat it. By November 2020 all six examination papers were online and 1,300 students sat 2,575 papers. This has revolutionised the way we now deliver our examinations.

I must thank our Director of Education, Roz Baxter, and her team, as well as the team of examiners (who cannot be mentioned for obvious reasons) for enabling the transition to online examinations to be as smooth a

journey as possible, given the short timescale in which they had to work.

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ANNUAL REPORT 2020 PRESIDENT’S STATEMENT

Equality, Diversity and Inclusion

In conjunction with the CIOT, we understand the importance of being part of a team where equality, diversity and inclusion are valued by all. We must promote an environment that welcomes and values diverse backgrounds, thinking, skills and experience; and which allows members and staff to thrive and fulfill their potential. In recognition of this we have formed a Joint Equality, Diversity and Inclusion Committee. This small step is an acknowledgment that we should always be conscious of providing equal opportunities to members, volunteers and staff, as well as do everything within our power to protect them from being discriminated against.

We understand that we need to try harder, to recognise, respect and value the differences in people, and increase consciousness among ourselves that this is not always immediately apparent. We want to continuously improve our policies so that members, volunteers and staff feel valued both within their workplaces and in the wider society at large.

Implementation, though, will come with challenges. We all need to educate ourselves to understand and appreciate intersectionality. We need to ensure that our inherent advantages do not keep us from seeing the disadvantages that others face. I am proud of the ATT. We have over the years had Presidents across a diverse spectrum: male, female, from the LGBTQ community etc. I am proud to be the first black President of the ATT. We are aware that we have a very diverse membership base. We want to encourage continued growth and strive to ensure that any real or perceived barriers are broken. This is so that we can embrace and benefit from the richness and diversity of

opinions, contributions and experiences that we anticipate will dominate our new global world. To recycle a Barack Obama quote I used when I was appointed, ‘Change will not come if we wait for some other person or some other time. We are the ones we’ve been waiting for. We are the change that we seek.’ History has its eyes on us.

Events

I was delighted to be able to visit the Merseyside and North East branches and must thank them for their hospitality. Having come up through the branch network, I am delighted that it continues to remain one of the most unique attributes of the Association.

It was my pleasure to attend the Branches Conference in Warwick where I got the chance to meet and share ideas with branch officers from all over the country. The sheer vibrancy of that event gives me the confidence that the Association is full of immensely talented and gifted people, with a wide range of hopes and ideas, and this can only be a good thing for the challenges ahead.

At the beginning of March, I was able to cohost, with Glyn Fullelove, then President of the Chartered Institute of Taxation, our Joint Presidents’ Luncheon. We returned to the magnificent surroundings of the Signet Library in Edinburgh for this event. Professor Graeme Roy, director of the Fraser of Allander Institute, the respected Scottish economic think-tank based within the University of Strathclyde, was guest speaker. This annual event has grown to be an important fixture in both the ATT and CIOT calendars and represents our growing reputation north of the border. Sadly, this was one of the very few face-to-face events we were able to hold during 2020.

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ANNUAL REPORT 2020 PRESIDENT’S STATEMENT

L to R: Jeremy Coker, Professor Graeme Roy, Glyn Fullelove

Glyn and I were also hosted by the Irish Tax Institute and it will be interesting to see how the pre-Brexit (and end of the transition period) views of Minister Paschal Donohoe TD pan out.

We continue to explore other ways to connect virtually with representatives from the tax, legal, academic, media and political professions throughout the UK and further while social distancing and other restrictions remain in place.

While I have unfortunately not had the pleasure of presenting these Certificates in person, I cannot over emphasise the contributions each of them has made and we are truly grateful.

The Tax Marketplace of the Future

Just as the pandemic broke, on 19 March 2020 HMRC published a consultation calling for evidence on Raising Standards in the Tax Advice Market. HMRC, in this document, proposed a number of options that seemed to indicate that regulation, of some sort, is no longer a matter of ‘if’ but ‘when’.

In June, Professor Stephen Mayson’s long awaited report into the Independent Review of Legal Services Regulation was published. If his recommendations are implemented, there is no doubt that they will impact upon the tax profession. Although he remains open-minded on the question of the timing of any reform, he is increasingly convinced that some change is needed and sooner, rather than later.

Certificates of Appreciation

Certificates of Appreciation are awarded to those who have made a direct contribution to the Association, whether they are members or non-members. For 2020 Council have awarded Certificates of appreciation to the following:

While HMRC’s focus is very much on avoidance schemes, and what would generally be regarded as unprofessional behaviour, the complex matter of agents that are not members of any professional body continues to raise its head. The Association responded to HMRC’s consultation in August and HMRC published a summary of the responses (from almost 50 organisations and over 30 individuals) in November. On the same day, a Treasury Written Statement indicated, as a first step towards raising standards, that the Government will consult on requiring tax advisers to hold professional indemnity insurance and how to define tax advice. This suggests that steps towards some form of regulation may not be rapid but that the issue will certainly remain one of importance for this Association, our members and, most importantly, the general public.

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ANNUAL REPORT 2020 PRESIDENT’S STATEMENT

New Member of Council

We welcomed Georgiana Head as a new member of Council in September 2020. Georgiana serves on both Business Development and Member Steering Groups and has been involved with Leeds Branch for many years. A tax adviser who comes from a recruitment background, she brings some new and essential skills to Council. I look forward to working with her.

Taxation, who have supported me throughout my presidency and provided a sounding board on matters that affect both organisations and the tax profession.

Finally, I want to say another thank you to all of you for granting me the honour and privilege of serving as your President for another year.

Thank you

It would be remiss of me not to mention the efforts of the teams at HMRC, and other related government bodies, that have worked so hard to deliver the various individual and business support schemes to assist in alleviating some of the hardship arising from the impact of the COVID-19 pandemic on the economy. They have shown how quickly they are able to respond to challenges and deserve every commendation.

I have to give my thanks to the Technical Team and our officers, Will Silsby, Helen Thornley and Emma Rawson who have been beacons of light and support with all the work they have done this year. Pages 31-33 of this report highlight just some of this.

These remain exciting times in tax. I am confident that with the help of my fellow Officers: Deputy President Richard Todd, Vice President, David Bradshaw, incoming Vice President, Simon Groom, past Presidents Tracy Easman and Graham Batty and members of Council, our Chief Executive Jane Ashton and the versatile members of staff at Head Office, we are well placed to face the challenges ahead.

Special thanks must also go to Glyn Fullelove, immediate past President, and Peter Rayney, current President of the Chartered Institute of

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ANNUAL REPORT 2020 REPORT OF COUNCIL

The Council members (Trustees of the Charity and Directors of the Company) present their annual report to the members on the affairs of the Association together with the audited financial statements for the year ended 31 December 2020.

Reference and Administrative Details

The Association of Taxation Technicians is a registered charity in England and Wales, number 803480, and a company limited by guarantee, number 2418331. Its registered office is 30 Monck Street, London SW1P 2AP.

The names of all the Trustees, Chief Executive and professional advisers are listed on page 12.

Structure, Governance and Management The Association's governing document is its Articles of Association.

A governance statement which includes details of compliance, organisation, Trustee elections and training, audit committee, internal controls and risk assessment is set out on pages 38-41.

Volunteers and Staff

It is the Association's policy to train, develop and motivate volunteers and staff, ensuring equal opportunities for all.

Members are encouraged to become involved in our activities and there are over 80 unpaid volunteers on Council, Steering Groups, Committees, Sub-Committees, Branch Committees and Working Parties. The Association is grateful not only for the generous input from all its volunteers at meetings and other activities but also to their firms who may ultimately bear the financial cost. It is not possible to quantify exactly how many volunteer hours were provided in meetings during the year, but it is in excess of 6,000. In addition, office space and utilities

have been donated for meetings. The value to be placed on these resources cannot reasonably be quantified in financial terms and is not therefore recognised in the Statement of Financial Activities.

Association staff are responsible for providing efficient and effective support to all Steering Groups and Committees. With the exception of the Chief Executive of the Chartered Institute of Taxation, all staff are jointly employed by the Association and the Institute and the average number of employees in the year was 81 (2019: 84).

The nature of the Association's activities means that employees and volunteers do not encounter many hazards in the work place. However, safety receives constant management attention and a general policy statement on health and safety at work is included in the staff handbook. Risks are regularly assessed and include independent checks on electrical and mechanical equipment and water quality.

Equality and Diversity

The Association is committed to providing equal opportunities to job applicants, staff, students and volunteers regardless of sex, sexual orientation, marital status, age, race, ethnic origin, religion or belief or disability. In 2020 54.4% of our staff were female and 37.5% from diverse backgrounds. 38.5% of staff worked part time and 39.8% work from home permanently. The Association seeks to conduct all its activities in compliance with this principle and in full adherence to all applicable laws prohibiting discrimination in employment or service provision and developing and maintaining a diverse workforce of staff and volunteers at all levels within the Association. On-line training on diversity is provided for all new staff.

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ANNUAL REPORT 2020 REPORT OF COUNCIL

Officers and Council Members

Under Regulation 37.1, made under the provision of Article 27(a), up to 24 members of Council shall be elected by the members.

In accordance with Article 27(b), the Chartered Institute of Taxation is entitled to nominate one member of Council.

During 2020 the following change took place: Georgiana Head ATT joined on 24 September.

The other members listed on page 12 served throughout the year.

The Officers appointed at the Council meeting held on 4 April 2019 to serve from 4 July 2019 to the Annual General Meeting to be held on 8 July 2021 were Jeremy Coker as President, Richard Todd as Deputy President and David Bradshaw as Vice President.

Objectives, Activities and Achievements The Association's objectives are: (a) to advance public education in and promote the study of the administration and practice of taxation and the principles of economic and political science in relation to taxation and public finance; (b) (i) to prevent crime and (ii) to promote the sound administration of the law for the public benefit by promoting and enforcing standards of professional conduct amongst those engaged in the provision of advice and services in relation to taxation and monitoring and supervising their compliance with money laundering legislation.

The Association had four key areas of interest for the year:

fully engaged with HMRC over possible regulation of the tax profession.

Our review of examination papers 3: Business Compliance and 6: VAT was completed during the year. The COVID-19 crisis meant that we

brought forward our plans to convert our written examination papers to purely online examinations. In June we offered candidates who had been due to sit Paper 4 an online remoteinvigilated examination. In November, all six written papers were offered as purely online papers. Examinations will continue to be offered online during 2021.

We are keeping our investment and reserves policy under constant review to ensure we can weather the economic downturn caused by the COVID-19 crisis.

Our website was updated at the start of the Coronavirus pandemic with a dedicated COVID-19 section carrying information about the various government initiatives and other support available. Sections were updated on an almost daily basis to ensure that our members and the public had access to the latest information and guidance in relation to this. In addition we offered free webinars, open to members and the public, on the various government initiatives and support.

We responded to HMRC’s call for evidence on Raising the Standards in the Tax Profession and continue to be

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ANNUAL REPORT 2020 REPORT OF COUNCIL

Details of the Association's achievements and performance against objectives are given in the following reports:

President's Statement Page 3 Steering Group and Committee Activities Page 21 Public Benefit Page 13 Treasurer's Report Page 35

Financial Review

The net income before revaluations of investments for the year ended 31 December 2020 of £281,000 is shown in the Statement of Financial Activities on page 49. The loss on the revaluations of investment assets amounted to £8,000. A review of the Association's financial position is given on pages 49-67.

During 2020 the portfolio delivered a total return of 0.8% for the year. The Association has not placed any social, environmental or ethical restrictions on its investment advisers.

Donations, Legacies and other Incoming

Resources

The Association is solely supported by subscriptions and fees from members and students.

Grant-making Policy

The Association does not make donations to funds of political parties. Grants can be made only to organisations with common, parallel or related charitable objectives and activities. During the year grants totaling £20,000 were paid to TaxAid and Tax Volunteers. Interested parties are referred to the Association's website.

Reserves Policy

The Council has assessed the risks involved in the activities of the Association and has agreed the following reserves policy:

and the means for the development of the Association's principal activity. The sum required is equivalent to nine months of budgeted costs, which has been achieved;

o Disciplinary Processes In view of the nature of professional advice given by members, we are aware that if, for whatever reason, action is brought against members, then the costs of dealing with such action can be considerable. Although we have no indication of any significant pending actions, we maintain reserves to cover such eventualities.

o Information technology The IT infrastructure and software constantly need to be kept up to date to meet members’ and students’ requirements and expectations.

o Property

We used some of our property reserve on our move to Monck Street and are building up a property fund for use on the expiry of the current lease.

We made a surplus in 2020, despite our income falling. This was due to the extensive cost cutting measures that were taken by the Association as a result of the COVID-19 pandemic. The cost cutting measures included closing our offices, converting all our events on line, a ban on all travel, no pay rises for any staff and a recruitment freeze. This surplus will contribute to our level of reserves and will ensure that the Association can continue over the next few years when there is expected to be a reduction in students and

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ANNUAL REPORT 2020 REPORT OF COUNCIL

subsequent income due to the decline in recruitment by employers of Tax Professionals.

Advice market, including responding to consultations and attending roundtables, formal and informal meetings.

Investment Policy

The Association's powers of investment are set out in the Articles of Association which states that monies of the Association not immediately required for any of its objects may be invested. The Council has assessed the risks involved in the activities of the Association and agreed the following:

The Council were satisfied with the performance of the investments in 2020.

Payment of Suppliers

The Association is committed to paying suppliers promptly and aims to pay within 30 days of receiving a valid invoice, unless other specific arrangements apply.

• Examinations

A review of examination paper 4 (Corporate Taxation) will be undertaken with any changes being implemented from the 2022 examinations. In addition we will be reviewing and further developing our online examinations.

• Increase offering to and promotion of ATT Fellows

We will review our offering for Fellows and will for the first time be holding two events for Fellows only. This will give them the opportunity to network as well as gain addition CPD hours. In addition we will be promoting new Fellows in Tax Adviser and will be ‘Featuring a Fellow’ in selected editions.

• Tax Education

We will be producing a gift aid guide to help charities claim back gift relief. We will be attending online careers fairs to promote tax as a career.

Pay Policy of Key Management Personnel The pay of key management personnel is reviewed annually and normally increased in accordance with average earnings. However in 2020 no pay rises were given due to the uncertainty arising from COVID-19.

Strategy: Plans for 2021

In keeping with the Council's strategic plan, the main objectives for 2021 include:

To continue our engagement with HMRC on raising standards in the Tax

Public Benefit

The charity has referred to the recommendations contained in the Charity Commission's general guidance on public benefit when reviewing its aims and objectives and in planning future activities. In particular the Trustees consider how planned activities

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ANNUAL REPORT 2020 REPORT OF COUNCIL

will contribute to the aims and objectives they have set. How the Association achieved its public benefit objectives can be found on page 13.

Money Laundering Regulations 2017

The Money Laundering Regulations 2017 list the Association as a supervisory authority for its members in practice. The Scheme was introduced in December 2007 and practicing members have been registering since that date. During 2020 the Association continued to ensure that members in practice were fulfilling their obligations under the Regulations, which included visiting members and checking their anti-money laundering policies and procedures.

Statement as to Disclosure of Information to the Auditor

The trustees who were in office on the date of approval of the financial statements have confirmed, as far as they are aware, that there is no relevant audit information of which the auditor is unaware. Each of the trustees has confirmed that they have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that it has been communicated to the auditor.

Annual General Meeting

A separate notice on page 75 of this report explains the business to be considered at the Annual General Meeting on 8 July 2021.

This report was approved by the Council on 30 April 2021.

By order of the Council

Jane E C Ashton

Chief Executive

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ANNUAL REPORT 2020 COUNCIL AND ADVISERS

President

Jeremy Coker BSc (Hons) ATT (Fellow) CTA FCCA ACA (2008) (E)

Deputy President

Richard Todd ATT (Fellow) CTA (2013) (E)

Vice President and Honorary Treasurer

David Bradshaw BSc ATT (Fellow) CTA FCA (2015) (E)

Council

Graham Batty BSc (Hons) ATT (Fellow) CTA ACA (2012) (E) David Bird BSc (Hons) ATT CTA TEP Solicitor (2016) (E) Nancy Cruickshanks BCom ATT (Fellow) CTA ACMA (2017) (E) Tracy Easman ATT (Fellow) CTA (Fellow) (2011) (E) Richard Freeman LLB (Hons) ATT CTA Solicitor (2015) (E) Simon Groom BSc ATT CTA FCA (2018) (E) Jacqueline Hall BA (Hons) ATT CTA FCA (2016) (E) Georgiana Head BA (Hons) ATT (Fellow) (2020) (E) Katharine Lindley BEng (Hons) MPhil ATT (Fellow) CTA CFPCM APFS (2012) (E) Julian Millinchamp BA (Hons) ATT CTA ACA (2014) (E) Kay Mind ATT (Fellow) (2015) (E) Hayley Perkin BSc (Hons) ATT (Fellow) (2014) (E) Senga Prior ATT (Fellow) (2017) (E) *Michael Steed MA (Cantab) ATT (Fellow) CTA (Fellow) MAAT (2009) (E) Jonathan Stride ATT (Fellow) MAAT CAT (2016) (E) Tanya Wadeson ATT (Fellow) MAAT TEP (2009) (E)

(E) - Elected Member

The year of appointment to Council is shown in brackets

Chief Executive

Jane Ashton ATT (Fellow) MAPM AMBCS

Registered Office

30 Monck Street, London SW1P 2AP Tel: 020 7340 0551

Connected Charity

Chartered Institute of Taxation 30 Monck Street, London SW1P 2AP

Bankers

HSBC plc The Peak, 333 Vauxhall Bridge Road, London SW1V 1EJ

Registered Auditor

Buzzacott LLP 130 Wood Street, London EC2V 6DL

Investment Advisers

Investec Wealth & Investment Ltd 30 Gresham Street, London EC2V 7QN

Solicitors

Wilsons Solicitors LLP

St John’s Street, Salisbury SP1 2SB

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ANNUAL REPORT 2020 PUBLIC BENEFIT

As a registered charity, we have an obligation to operate for the public benefit. Our charitable aims are education in the study of the administration and practice of taxation, preventing crime and promoting the sound administration of the law by promoting and enforcing standards of professional conduct amongst those engaged in the provision of advice and services in relation to taxation.

Our Technical Steering Group (TSG) continues to work towards developing a simple and accessible tax system for all taxpayers, whether represented or not.

A particular area of focus for TSG in 2020 was the tax implications arising from various measures introduced as a result of COVID-19. Alongside engagement with HMRC, a dedicated COVID-19 hub was established on the ATT website containing a series of regularly updated technical articles and guidance, and recordings of four free webinars. Two of these articles were the most viewed pages on the ATT website in the year, with over 335,000 views in total. The webinars, which were held in conjunction with CIOT have been viewed over 3,800 times, and were made available to all members of the public when they were presented live and are available as recordings.

During the year the group submitted eleven responses to public consultations on matters ranging from the HMRC Charter to improving standards in the tax advice market and tax relief for research and development costs. Written evidence was submitted to two Treasury Committee inquiries, and verbal evidence to the House of Lords Economic Affairs Committee’s Finance Bill SubCommittee. The group also contributed to the Office of Tax Simplification (OTS) review of capital gains tax. The technical section of our website carries copies of all submissions.

TSG continued to be involved in a variety of HMRC-led groups relating to the full range of UK taxes as well as meeting on an ad hoc basis with HMRC to discuss specific issues such as Making Tax Digital (MTD).

The group produced 29 press releases during the year. These were reported extensively in tax, accountancy and in-house publications, with some also being picked up by the mainstream media. Technical Officers have also contributed tax technical articles to various publications, and made radio appearances. Many of these activities were intended to highlight the implications for taxpayers of impending changes or proposals that were under consideration. Such press releases can help taxpayers understand their compliance obligations and avoid errors.

TSG continues to promote education in tax, with members and Technical Officers presenting webinars on a variety of subjects for ATT/CIOT branches, as well as contributing to the ATT annual conferences and joint events with other bodies.

In our Employer Focus publication, we highlight matters which are of particular significance for employers and employees. This publication is normally issued monthly, however, as a result of the pandemic, frequency was increased during spring and summer to increase engagement with employers. During the year topics covered included the implications of Brexit for employers, the tax treatment of online Christmas parties, the Coronavirus Job Retention Scheme and home working. Non-tax topics included first aid for employers, national minimum wage issues and apprenticeship funding.

Our open access policy means that all of those who wish to register as students may do so, regardless of their previous academic record.

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ANNUAL REPORT 2020 PUBLIC BENEFIT

We offer three routes into full ATT membership: the ‘traditional’ route, the Tax Pathway and the Level 4 Professional Tax Technician Apprenticeship. In addition, for those requiring a tax qualification at the lower level, we offer Foundation Level qualifications in Personal Tax, Business Tax, Value Added Tax and Transfer Pricing.

speakers and members of our Technical and Professional Standards Teams.

Our CPD events are open to all and details of forthcoming events can be found on our website.

To help students prepare for the examinations, we ran Exam Focus and Skills Days prior to both the June and November examination sittings. These webinars are designed to help students with their revision. They cover both core and more challenging areas of the syllabus for each of the papers. Tutors guide students through past examination papers, assisting with identification of issues and scenarios to produce an examination standard answer. Students who are unable to attend the live events can purchase recordings of the webinars to view at their own convenience.

We help our members meet their Continuing Professional Development (CPD) requirements in a number of ways:

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ANNUAL REPORT 2020 LAY PUBLIC INTEREST COUNCIL OBSERVER

Diane Burleigh OBE reports

This has been such a different year for how the ATT has been conducting its business as the pandemic closed the ATT offices, and staff and Council Members and all those involved in ATT business conducted their work from home.

My role is to report on Council’s conduct of business in relation to safeguarding the public interest, particularly as a charity, and commenting on Council’s adherence to the Association’s Articles and statutory obligations and functions.

My first observation is how well the ATT as a whole has managed its business since life changed in the middle of March. Chief Executive Jane Ashton, working with the CIOT CEO Helen Whiteman, remarkably quickly moved all staff to homeworking, and it was difficult to notice the transition or final change. I do not underestimate the work that all the staff put in to making this happen; from establishing new routines; working around the family I’ve no doubt during lockdown periods; to coping with technology from home. The Steering Groups and Committees and Council continued to be well supported with information and advice to make the necessary decisions to keep the ATT functioning well. This was clear from the minutes I receive from all meetings, as well as the reports and minutes of Council meetings.

Before the March lockdown I observed meetings of both the Finance Steering Group and the Leadership Team. My thanks to all participants for welcoming me. Although it is not strictly part of my duties to observe any of these meetings, I wanted to do so partly out of simple interest and also to see if the dynamics of smaller meetings in any way affects the rigour I have seen at Council meetings in adhering to the ATT’s charitable responsibilities and the public interest.

There is a danger, with smaller meetings, that the members can get to know one another well, which can allow objectivity to slip and too much reliance be placed on one or two individual’s opinions. I can say that I did not observe this. Committee members and the Leadership Team clearly respect and value each other’s opinions, and the advice and expertise of the staff, without allowing that to suppress the need for appropriate questioning, the putting forward of views or the sharing of information.

Council meetings were all held virtually. They were well conducted by the President with support from Jane Ashton, and the patience and good humour of Council members and staff. It was noticeable that during the first virtual meeting, a small number of Council members clearly found it difficult to make a contribution to debate, in spite of the President working hard to get a full round up of input. As we all became more used to this format of meeting across many areas of our lives, the usual breadth and depth of contribution was re-established.

The three issues of the year were clearly: whether to, and how to run examinations; the financial consequences for the ATT of the pandemic on examination and membership numbers; and the move to Ofqual as the regulator of apprenticeships. I see from my notes of September’s meeting that I

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ANNUAL REPORT 2020 LAY PUBLIC INTEREST COUNCIL OBSERVER

considered the engagement with these issues of examinations, finance and membership to be exemplary and well supported by detailed papers from the staff with good, realistic advice. The detail of the decisions reached is covered elsewhere. My role is to note how hard the Council focused on their charitable responsibilities as an aid to decision making.

Continuity of leadership has been well provided during this difficult period by the President and Office Holders, along with Jane Ashton. The Chairs of Steering Groups and Committees too, have had a more challenging year. They continued to be well informed and thoughtful about the issues under their charge. The Council as a whole continued to work well together, with dedication and with good humour.

2021 will continue to bring challenges to the ATT and its leadership. I believe they are well placed to meet those challenges.

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ANNUAL REPORT 2020 ENFORCEMENT OF STANDARDS

Susan Humble reports

The Taxation Disciplinary Board (TDB) is an independent body which handles complaints about alleged breaches of professional rules and conduct by members and students of the ATT and CIOT.

The TDB is responsible for administering the Taxation Disciplinary Scheme (TDS), which sets out the principles and powers that underlie the participant bodies’ complaints and disciplinary procedures. These procedures exist to protect the public but by maintaining and enhancing professional standards they also enhance the standing and reputation of the tax profession and so are beneficial to all members. The TDB aims to ensure it is at the forefront of best regulatory practice and is committed to an open and effective system of complaints handling and disciplinary tribunals.

Governance of the TDB

Overall responsibility for the administration of the TDS rests with the Directors of the Board of the TDB. The Chair of the Board is Susan Humble, who took on the role in February 2020. The Board has four other directors: two are appointed by the participating bodies (Brian Palmer by ATT and John Whiting by CIOT) and two are independent (Colin Wilby and Elizabeth Fullerton-Rome), ensuring a majority of independent directors on the Board.

The Committees and Tribunals appointed by the Board are drawn from a panel including lawyers, lay persons and tax professionals (who have no current involvement with the standards setting of the two participant bodies). The Board employs a part time Executive Director, Peter Douglas, who has day to day responsibility for the processing of complaints and the smooth running of the Board; Nigel Bremner is the Clerk to the Disciplinary Tribunal, responsible for the organising and conduct of the disciplinary hearings.

Developments in 2020

In common with every organisation, the TDB has had to adapt to remote working. This has included setting up arrangements for virtual Tribunal hearings. We have been very careful to ensure that these online hearings are fair to all concerned and have been pleased at the positive responses we have received from participants in the hearings we have run to date.

The TDB has been carrying out a major review of its Indicative Sanctions Guidance during 2020. This document sets out the various sanctions available under the TDS and discusses how they might be applied to the various types of offences the Tribunals encounter. It is important to appreciate that the document is guidance rather than a rule book: it is intended to help Tribunals but also be a reference for members who may wish to understand how the Tribunal will approach situations.

The review commenced with a short general public consultation document in January which attracted a good number of responses; a second round of full consultation took place in the summer and following consideration at our annual training day for Panel members, the document was finalised and issued in

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ANNUAL REPORT 2020 ENFORCEMENT OF STANDARDS

December. It now incorporates a wide range of material, including guidance on costs awards and can be found on the TDB website.

The TDB has taken a close interest in the HMRC consultations on ‘Raising Standards in the Tax Advice Market’ and made a significant submission to HMRC in response; we have been involved in the continuing discussions on the subject. This is an area the TDB anticipates continuing to participate in during 2021.

Complaint cases dealt with in 2020

Almost all cases that the TDB handles will involve alleged breaches of the Professional Rules and Practice Guidelines published by the ATT and CIOT and/or Professional Conduct in Relation to Taxation (PCRT), published by the seven main tax professional bodies (including ATT and CIOT).

During 2020 the TDB received 44 new complaints (2019: 37), 22 involving ATT and joint ATT/CIOT members and students. The Investigation Committee considered eight complaints, three involving ATT and joint ATT/CIOT members. All the complaints were referred to the Disciplinary Tribunal. The Disciplinary Tribunal heard eight cases during the year; findings resulted in 3 exclusions, 3 censures, 1 warning and 1 suspension for 12 months. Costs were awarded to the TDB in respect of all Disciplinary Tribunal cases. There was one appeal (relating to a CIOT member) against a decision of the Disciplinary Tribunal; the appeal was not upheld by the Disciplinary Assessor appointed under TDS regulation 21.6.

In addition, four (2019:160) cases arose from the failure of members to submit the required Anti-Money Laundering (AML) returns. One of these related to an ATT member.

Susan Humble Chair

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ANNUAL REPORT 2020 BRANCHES REPORT

Zoe Roberts and Jo Routier report

Engagement

Our plans for Regional Branch Network events were disrupted along with the rest of the UK at the end of March when we went in to the first lockdown. Following a call to action from Head Office, our Branch Network Committees contacted their scheduled speakers and the combined efforts of staff, volunteers and speakers and an enthusiastic response from members and students meant we were able to move to an online National Programme of Technical Continuing Professional Development from 24 March 2020.

Prior to the lock down we had held 55 face-toface events. By the end of 2020 in addition to these we had held over 100 events online and reached over 20,000 members, students and members of the public.

Our webinars were watched by 1,300 members of the public – a wonderful way to achieve our charitable purpose whilst face-toface events were not possible. Nearly 30% of our online output has been free to view.

We are delighted with the increase in engagement that online events have fostered with 88% of our members and students responding to our survey indicating that they have attended a branch event.

The Joint Branches Sub-Committee and Technical Teams supported the online initiative and we would like to thank the ATT Technical Officers; Emma Rawson, Helen Thornley and Will Silsby for their support.

Support

Branch Network volunteers came together three times over the course of the year to hear important updates from the Technical and Head Office Teams and to meet with our President, Jeremy Coker and Chief Executive, Jane Ashton. The events were held in March (face-to-face) and online in May and November with record attendances from volunteers.

Branches Conference: March 2020

We launched supplementary Branches Guidance for Volunteers in March to ensure rules, procedures and practical documentation was in place to support the regionally dispersed committees.

Growth

During the year we have welcomed 10 new volunteers to the branch network from ATT.

We were very pleased with the interest provoked by our ‘Are you thinking of

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ANNUAL REPORT 2020 BRANCHES REPORT

becoming a speaker?’ initiative. Five members and students came forward to join the ranks of our illustrious speaker network. We are working with them on their first online event as part of our Regional Discussion Programme for 2021.

We are always keen to hear from members and students who have an interest in volunteering for their local Branch Committee. If you are interested in this, please contact the Branch Network Team.

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ANNUAL REPORT 2020 STEERING GROUP REPORTS

Business Development Steering Group

Kay Mind reports

Despite the coronavirus pandemic leading to the curtailment of most of the planned faceto-face marketing activities, our Steering Group continues to be busy.

Our employer engagement programme continues apace. During 2020 members of our marketing and education teams have met with more than 50 employers, some of whom currently put their staff through our examinations and some who do not. As always, during these meetings we update employers on the latest developments in our education offering and address any questions raised. It is also an opportunity to gauge interest in any potential new areas we may be considering. Many employers have shared their recruitment plans with us - in these uncertain times it is enormously helpful to have some idea of the numbers of potential student registrations in the short and medium term.

In conjunction with the Education Team, we continued to hold student induction sessions, albeit that these were virtual. In September we delivered induction sessions to the new tax trainee intake of eight of the top 20 accountancy firms and feedback from both the firms and students was very positive. These sessions enable students to ask

questions about our qualifications and understand more about the high professional standards we expect our students to comply with.

We were able to exhibit at ‘What Career Live’, held at the National Exhibition Centre, Birmingham, at the end of February 2020. We gave a presentation on ‘Careers in Tax’ and showcased our qualifications to careers advisers, parents, and prospective students. Members in our Branches have also been presenting virtually to students in universities to inform them about careers in tax and what tax pays for.

We continue to review our communications strategy to ensure that our communications remain relevant. Following the closure of our offices in March 2020, we worked to develop a COVID-19 communications strategy. This involved producing a dedicated section on our website carrying information aimed at members, students and members of the public. Our pages dedicated to the Coronavirus Job Retention Scheme (CJRS) and the Self-Employed Income Support Scheme (SEISS) have at times been updated almost daily. We must specifically thank our Technical Team of Emma Rawson, Will Silsby and Helen Thornley for the detailed guidance they have produced and Sue Fraser, our website administrator, for updating our website. We have seen an increase of over 250% in website visitors and our CJRS page alone has had more than 25,000 views.

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ANNUAL REPORT 2020 STEERING GROUP REPORTS

Our social media presence continues to increase. We now have nearly 4,000 followers on Twitter – an increase of 15% on 2019 and over 7,400 followers on LinkedIn – a huge increase of 77% on 2019. For Facebook we now have over 2,000 followers, representing an increase of 22% on 2019. In November 2020 we set up a LinkedIn group for ATT Fellows and look forward to seeing membership of this group grow in the next year.

I would like to thank the members of Business Development Steering Group for their contributions to our lively discussions during the year as well as the team at Head Office for their support.

We continue to issue Employer Focus monthly. This web-based publication is sent to any employer who registers to receive it and contains thought-leading articles designed to give employers an insight into a range of tax issues affecting them. As well as numerous articles relating to the pandemic, other topics have included employment status, grants to support businesses in dealing with Customs declarations post-Brexit and Making Tax Digital. Employer Focus is available to view on our website.

In conjunction with Member Steering Group, we have been looking at ways to promote our ATT Fellows. Plans include a regular listing of new Fellows admitted and a ‘Feature a Fellow’ article in Tax Adviser. You can read more about other initiatives we are working on for Fellows in our Member Steering Group report on page 26.

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ANNUAL REPORT 2020 STEERING GROUP REPORTS

Examination Steering Group

Graham Batty reports

To say the least, 2020 has been an unusual and challenging year.

We have all had to get used to the ‘new normal’ of social distancing, closed offices, furlough, lockdowns and remote working. It quickly became apparent that the COVID-19 pandemic meant that we were not going to be able to hold the usual examination sessions and we took the unprecedented decision to cancel the May 2020 exam session. However, following a heroic effort by the Education Team, we were able to advance and work up ideas to introduce online examinations and, as a trial, run ATT Paper 4: Corporate Taxation through remote proctoring (invigilation) in June/July 2020 using ProProctor. Given that our plans for online examinations were only at the stage of discussing initial concepts, I really cannot praise the Education Team enough for their work from zero to a trial in a matter of weeks rather that the three or four years that had been originally envisaged.

As part of the trial run students who were unsuccessful in the June/July 2020 session were given a free exam entry to the November session. The student registration and exam pass validity for all students were also extended for six months.

As with any new system the trial run was not without issues and in light of these a decision was made to use Exam4 for the November 2020 exams. Exam4 is currently used for the CIOT’s ADIT examinations and is widely used in the United States for bar exams and by leading universities such as Harvard. The software is capable of handling high volumes of students. Students can download the version they will use a month before the exams, enabling them to practice with an Exam4 demo, and mock exams, which they were unable to do with ProProctor. In addition they do not need the internet during their exams only needing to upload their completed paper at the end.

Because Exam4 does not currently have an invigilation facility, for the first time the November 2020 exams were uninvigilated and sat using the open book method. We have invested in anti-plagiarism software which allows us to detect cases of collaboration between students during the exams, which is clearly not allowed, and distinguishes these cases from those that use the legislation and study materials, which is allowed. Sadly we did detect a few cases of collaboration and these students have been referred to our Taxation Disciplinary Board.

Congratulations to all of you who passed your examinations during 2020 whether by sitting Paper 4 at the trial summer session or in November using Exam4.

The May 2021 exams will also be taken using Exam4 and will again be uninvigilated and open book. By deciding this now, students and the Tutorial Bodies will have certainty about how they will need to work. It will also allow the Education Team and the Steering Group time to carefully consider what the future of online exams will look like.

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ANNUAL REPORT 2020 STEERING GROUP REPORTS

Turning to apprenticeships, we currently have 386 Level 4 registered apprentices. During 2020 we held two apprenticeship examination sessions in March and December. In March 36 apprentices sat their End Point Assessments and in December 56 sat their End Point Assessments. We also held an additional session in July which enabled 12 apprentices who had failed their Portfolios in March 2020 to resubmit.

We have a total of 504 VAT Compliance Diploma (VCD) students with 217 VCD certificates being awarded this year. We also have a total of 277 Foundation Level and Diploma students, with a total of 91 certificates being awarded.

As always, thank you to our Chief Examiner, Helen Stainton, and her team of examiners. They have worked with meticulous detail in preparing, marking and reviewing the examination papers throughout the examination sessions.

Finally, I should like to express my enormous thanks to the Education Team who have managed to put together the online examinations system in record time and administer the ATT examinations.

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ANNUAL REPORT 2020 EXAMINATION RESULTS

2020 Examinations – May (sat in June 2020)
No. of candidates No.passing Pass rate
Corporate Taxation 184
150
82%
May 2020prizes and medals were awarded as follows:
Stary Medal(Corporate Taxationpaper) David John Hunt
2020 Examinations – November
No. of candidates No.passing Pass rate
Personal Taxation 1,005
794
79%
Business Taxation 777
597
77%
Business Compliance 218
198
91%
Corporate Taxation 138
95
69%
Inheritance Tax,Trusts & Estates 109
99
91%
VAT 107
77
72%
Computer Based Examination: Professional 508
434
85%
Responsibilities & Ethics
1 January– 31 December 2020
Computer Based Examination: Law 496
347
69%
1 January– 31 December 2020
Computer Based Examination: Principles of 481
300
62%
Accounting
1 January– 31 December 2020
November 2020prizes and medals were awarded as follows:
Association Medal(best overallperformance) Sheena Patel
Tolley Prize(highest total mark when taking all three
papers at one sitting) Thomas Kenzo Prior
President’s Medal(at the discretion of the President) Jessica Ka-Wing Lam
Jamie Symms
Ivison Medal(Personal Taxationpaper) Meaghan LilyKing
Jennings Medal(Business Taxationpaper) Anrika Thinju
Collingwood Medal(Business Compliancepaper) Thomas Kenzo Prior
Stary Medal(Corporate Taxationpaper) Vikki-Louise Emery
Kimmer Medal(IHT, Trusts & Estatespaper) Natalie Williamson
Gravestock Medal(VATpaper) Harris Bone
Johnson Medal(Computer Based Examinations in
Professional Responsibilities & Ethics, Law and Principles
of Accounting) GunayAhmadli
Jean Jesty Prize(awarded by the Worshipful Company of
Tax Advisers for the best performance by a Tax
Apprentice in a calendar year, having completed all the
examination requirements for ATT membership and
having completed the End-Point Assessment) Isabel Hampson

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ANNUAL REPORT 2020 STEERING GROUP REPORTS

Member Steering Group

Katharine Lindley reports

In spite of the COVID-19 pandemic and the majority of the Steering Group members working from home for over half the year, we were able to meet three times during 2020 even though two of those meetings were virtual and came with the all-too-familiar cries of ‘You’re on mute!’, ‘We can hear you but can’t see you!’. We discussed a wide range of topics including the website, member benefits, what additional support we could provide for members during the pandemic and encouraging eligible members to apply for Fellowship.

Our Events Team quickly moved to convert our 2020 Annual Tax Conference season originally planned as our usual face-to-face events, into four online virtual conferences. These took place on four dates and comprised a two-hour live-streamed, interactive session which included an update on the budget and COVID-19 issues, and four hours of prerecorded material, covering topics such as property tax, capital tax and VAT updates. Over 350 delegates attended, and feedback was very positive. We plan to hold online virtual conferences in 2021 so that they remain accessible to all, especially if we still have restrictions in place.

We continue to work with other professional bodies on joint ventures and 2020 again saw us running a half day webinar with the Chartered Institute of Payroll Professionals and our ever-popular ‘Sharpen your Tax Skills’ event with the Association of Accounting Technicians which this year was held on three dates as an online virtual event. A total of 120 ATT delegates attended these joint events.

Our thanks must go to Michael Steed and our Technical and Professional Standards Teams for the hard work they put in to planning the content for these, and of course our Head Office Events Team, ably headed by Lisa Drakley, for the delivery of these sessions.

These events, along with the Branch Network, help to deliver cost effective training to enable our members to meet their Continuing Professional Development (CPD) requirements.

We keep our member benefits under review to ensure that the publications and other services we provide continue to meet the needs of our members as Taxation Technicians. During 2020 members received a mouse mat and tax tables, as well as hard and soft copies of the Annotated Finance Act, Tolley’s Tax Guide, Whillans’ Tax Tables and Tax Adviser. We have made the decision to continue to provide these in hard copy for 2021 although we are looking at the future of Tax Adviser and the current weekly Tax News email. We hope you completed the online survey sent to you all in November 2020 to let us have your views. We are taking these into account as we look at what may replace these going forward.

We were delighted to negotiate a discount for members to subscribe to AMLCC, an online anti-money laundering support package for tax advisers, accountants, and bookkeepers. Further details of this and all our other

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ANNUAL REPORT 2020 STEERING GROUP REPORTS

benefits for members can be found on our website.

During the year 405 new members joined the Association and 372 were admitted as Fellows. Sadly due to the pandemic we were unable to hold our usual biannual admission ceremony at the House of Lords but in December we held a virtual admission ceremony for the new members who were due to attend the May 2020 event. Jeremy Coker and Lord McKenzie of Luton recorded speeches which were broadcast, along with photographs and names of the new members. 36 new members registered to attend the event and there have been 89 playbacks of the recording.

With our ever-increasing number of Fellows, the Steering Group had a lively debate at its October meeting on whether we could provide any additional benefits for our Fellows. We have set up a LinkedIn group for our Fellows to enable them to network with each other. If you are a recent Fellow, you will also have seen your name published in Tax Adviser. We are also hoping to have a ‘Feature a Fellow’ regular column in Tax Adviser going forward. Please get in touch if you would like to contribute to this column. Our Technical and Events Teams are also planning a roundtable/discussion event specifically for Fellows – we will publicise details of this in early 2021.

During the year we welcomed Rana Zubair to the Steering Group. Andrew McKenzie Smart stepped down after seven years of service to the Steering Group. My thanks to him for his contributions over the years. Thanks are also due to the other volunteers on Member Steering Group, Sue Fraser the secretary to the group and the Member Services Team at Head Office for all their support during the year.

New member Vaigunthavasan Gowrithasan with his electronic membership certificate

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ANNUAL REPORT 2020 STEERING GROUP REPORTS

Professional Standards Committee

Richard Todd reports

In what has been a very unusual year the joint Professional Standards Committee was very mindful of the need to ‘keep the show on the road’ and to help the ATT to meet its charitable objects which include:

Our quarterly meetings continued as before, albeit virtually and the Professional Standards team continued to work remotely.

New rules

Each year the Professional Standards Team attend the Taxation Disciplinary Board’s training day to give an update on any changes or developments in ATT’s regulations and also to benefit from the training which is led by a lawyer who specialises in professional body regulatory matters. This brought to light the fact that while cautions can be given for relatively minor offences they can also be

given for much more serious offences. Similarly, summary only motoring offences include serious offences. At the time neither category of offence was reportable to the ATT. Following legal advice and a recommendation by the Committee, the ATT decided that any such offences committed on or after 1 January 2021 must be reported by members and students.

New guidance

As a result of an ATT/CIOT initiative (prompted by members), topical guidance covering the application of professional standards to the provision of research and development tax credit services was introduced alongside the Professional Conduct in Relation to Taxation rules and helpsheets. The working party supported this with some additional guidance on ‘Choosing a Specialist Research and Development (R&D) Tax Adviser: Tips on how to choose the right specialist for your business’.

Hardy perennials

Engagement letters are kept under regular review and were updated this year with minor changes in a number of areas including MTD for VAT, VAT MOSS, off-payroll working and in-year capital gains. A new schedule for use by members acting as a subcontractor to another firm of tax advisers or accountants was added to the engagement letter guidance.

Professional Indemnity Insurance (PII) has been more challenging this year with fewer insurers in the market, rising premiums and insurers being more selective about whom and what they will insure. We maintain regular contact with brokers to keep up to date with developments.

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ANNUAL REPORT 2020 STEERING GROUP REPORTS

Annual Return

The completion and submission of the Annual Return is a key membership obligation. It not only helps the ATT to keep its records up to date but also enables members to confirm their compliance with the Professional Rules and Practice Guidelines and Professional Conduct in Relation to Taxation. This latter point is very important at a time when the government is looking at raising the standards in the tax advice market. Not only must the ATT enforce but it must be seen to enforce its professional standards. 2020 saw a determined effort to raise awareness of the significance of the Annual Return and this will continue into 2021 and beyond.

Call for evidence: Raising standards in the tax advice market

HMRC issued a call for evidence with a view to raising standards in the tax advice market to which we responded. From a selection of options put forward by HMRC the ATT favoured the approach whereby the profession worked gradually towards a position where all tax advisers had to be members of a professional body, observing that body’s professional standards, holding PII and carrying out Continuing Professional Development.

Anti-Money Laundering (AML)

Supervision and inspection visits

As always, AML has occupied a substantial amount of time and resource. Even before COVID-19 we were expanding the number of inspection visits which could be done virtually to make best use of the resources available. Under COVID-19 all visits have had to be conducted remotely with staff and members becoming adept at using Zoom, Webex, Teams etc. This has worked remarkably well and has

enabled us to comply with the Office for Professional Body AML Supervision (OPBAS)’s expectation that AML supervision should continue as normal.

ATT takes compliance with AML obligations extremely seriously and firms which fail to comply (for example, not submitted/late submission of AML registration form) are referred to the TDB. It was very encouraging to note that despite COVID-19 in 2020 only one ATT member was referred to the TDB for this.

Communication

We have kept our AML supervised members abreast of AML developments with regular Newsletters, articles in Tax Adviser and notes in the Friday Weekly News. One of the few positives about COVID-19 has been the opportunity to connect with many more members through webinars and we have produced two: one was a general update on AML and the other was on risks and red flags tax advisers come across in their day to day work and practical ways to manage and mitigate those risks.

Whistleblowing

As part of the drive to combat money laundering OPBAS has asked the professional body supervisors to encourage their members to report to their professional body instances where they become aware of other advisers who are not adhering to the Money Laundering Regulations, for example by not being supervised or not applying customer due diligence.

Economic Crime Levy

HM Treasury issued a consultation ‘Economic Crime Levy: Funding new government action to tackle money laundering’. The levy would be charged to those businesses operating in the AML regulated sector and “form one part of the sustainable resourcing model to tackle

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ANNUAL REPORT 2020 STEERING GROUP REPORTS

economic crime”. The ATT put forward the view that the small business threshold of turnover of £10.2m or less, should be used as the bar below which supervised firms would not have to contribute to the levy. This is on the basis that, in our view, the burden of AML compliance already falls disproportionately on smaller businesses which are required to meet the same requirements as much larger entities. We were also in favour of HMRC acting as the collection agent as opposed to the professional body supervisors as it already has the infrastructure in place to carry out this function. Further details are expected in early 2021.

Welcome and farewell

We welcomed Kay Mind, Juan Carlos Venegas and Jonathan Riley to the Committee. We were sad to say farewell to Nancy Cruickshanks, Peter Davis, Ian Hayes, Lisa Macpherson, Mary Monfries and Rosalind Upton. We thank them for their contributions and wish them well.

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ANNUAL REPORT 2020 STEERING GROUP REPORTS

Technical Steering Group

Michael Steed and Jon Stride report

The arrival of the pandemic required Technical Steering Group (TSG) to respond and adapt to new ways of working and a constantly evolving tax landscape.

TSG continues to meet four times a year to discuss topical issues and oversee the work of the ATT towards ensuring that the tax system works for all. All meetings this year have taken place virtually, with members adapting well to this change. Delyth Barnett and Lisa Lane joined as new members of TSG. Michael Steed and Jon Stride remain as co-Chairs.

The discussions at TSG meetings feed into the drafting of responses to consultations and draft legislation and identify issues to be raised with HMRC or which require further

consideration. In addition to the regular events, a group of members met with the Office of Tax Simplification (OTS) to discuss their wide-ranging review of capital gains tax.

The tax changes and implications arising from COVID-19, including the various Government support packages for individuals and businesses affected by the pandemic, have dominated the work of TSG in the year. A dedicated COVID-19 hub has been established on the ATT website which contains a series of regularly updated technical articles and updates. This has proved very popular, with articles on the Coronavirus Job Retention Scheme (CJRS) and Self-employment Income Support Scheme (SEISS) being the most viewed pages on the ATT website in the year, with over 335,000 views in total. Technical Officers have also been involved in confidential discussions with HMRC on COVID19 related matters, in particular around the SEISS and the 31 January self-assessment filing deadline, as well as working with HMRC to get answers on areas of uncertainty.

The COVID-19 dedicated section of our website

Other areas of focus in 2020 included the planned rollout of Making Tax Digital (MTD) for Income Tax Self-Assessment, the new HMRC Charter, issues around raising standards in the tax advice market and involvement in an HMRC led review of powers and safeguards. Work in these areas has included formal consultations, as well as working group meetings and ad hoc discussions with HMRC.

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ANNUAL REPORT 2020 STEERING GROUP REPORTS

TSG’s VAT Sub-Group has continued to provide an excellent forum for the identification of VAT-related issues. The group draws strongly on the wide practical experience of its members. Areas of focus in 2020 included Brexit and COVID-19 relief measures. In particular, the group had extensive engagement with HMRC around the scope and practical operation of the temporary VAT reduction for hospitality, holiday accommodation and attractions, enabling the ATT to provide additional guidance on this measure.

The technical team continues to engage with the wider ATT membership on technical issues. Over 35 members act as contributors, providing vital views on consultations, draft legislation and tax administration. The technical team also continues to receive a significant, and growing, volume of technical queries from members. 136 queries were received to the technical inbox in the year, more than three times the number received in 2019. The team also worked with HMRC to produce detailed user guides on the Trust Registration Service and UK Property Reporting Service which were shared with members, the public and other professional bodies.

Promoting education in tax remains a key focus. Members of the technical team contributed to the Association’s Annual Tax Conferences, which were taken fully online for the first time ever. These events, which combine pre-recorded and live interactive sessions, were attended by over 360 delegates and received very positive feedback. The successful conversion from physical meetings would have been impossible without the much appreciated support of the Membership and Events teams. Members of TSG and the technical team also presented in three live

events as part of the AAT-ATT Sharpen Your Tax Skills series.

In 2020 the Technical Officers presented a number of online talks and webinars. These included technical updates for the ATT/CIOT branch network, contributions to events hosted by AccountingWEB and a joint online employment taxes seminar with the Chartered Institute of Payroll Professionals (CIPP). A series of four joint ATT/CIOT free webinars on the SEISS proved to be very popular with both members and non-members and received over 3,800 viewings.

In addition to their regular items in Tax Adviser , the technical team continues to contribute regularly to Accountancy Age and AccountingWEB . Articles by technical officers have also featured in Taxation and Technical Officer Helen Thornley appeared on TaxTV .

During 2020, TSG responded to eleven formal consultations and engaged with HMRC both in standing group meetings and informally on a number of issues. (The ATT is represented on over 30 different groups.) Written evidence was submitted to the Treasury Committee on the Spring Budget and Tax after Coronavirus inquiry, and Budget representations made regarding MTD, off-payroll working and private residence relief. Technical officer Will Silsby gave evidence to the House of Lords Economic Affairs Committee’s Finance Bill Sub-Committee as part of their enquiry into measures in Draft Finance Bill 2020-21 related to HMRC powers. These submissions and engagement are a key part of the ATT’s work towards developing a simple and accessible tax system for all taxpayers, whether represented or not.

The team produced 29 press releases on technical topics during 2020, many of which were relevant to the wider public as well as tax professionals. These were reported

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ANNUAL REPORT 2020 STEERING GROUP REPORTS

extensively in tax, accountancy and in-house publications. Through both press releases and direct engagement with journalists, the ATT was quoted many times in mainstream media, including the Financial Times and Daily Telegraph . Technical Officers Emma Rawson and Helen Thornley also appeared on national and local radio during 2020 to discuss issues as diverse as COVID-19 support, the tax rules relating to Christmas parties, the Budget and off-payroll working.

and detail on the intended introduction of MTD for Income Tax Self-Assessment from April 2023. There may also be early indications of emerging thinking on the post-COVID tax landscape.

Media and professional press mentions included The Daily Telegraph, Financial Times, BBC Radio 5 Live and AccountancyAge

The technical team issues a monthly ATT Technical Round-up email to ATT Council members, TSG members and contributors. The aim of these monthly emails is to provide a short insight into the work of TSG and the technical team in the past month and highlight any areas where additional input would be particularly welcome.

The rapidly changing events of 2020 required new ways of working, revised priorities and agility. These enabled TSG to have a productive and successful year. In 2021, the group’s focus is expected to include new announcements and consultations arising from the Budget (scheduled for 3 March 2021)

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The ATT in 2020

9,242 7,151 195 members students committee volunteers

70 technical articles

Over 100 webinars

1.8 million website page views

----- Start of picture text -----
17 4 575 2,535
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submissions to Annual Tax online exams firms supervised HMRC and other Conferences for anti-money policy-makers laundering

ANNUAL REPORT 2020 TREASURER’S REPORT

David Bradshaw reports

Overview

I am pleased to present my annual report as the Association’s Honorary Treasurer and Chair of the Finance Steering Group. Throughout this difficult year we have continued to focus on delivering our core activities of advancing public education in and promoting the study of the administration and practice of taxation and providing support to our members. This has meant moving many of our activities online but our prudent approach to your Association’s finances and providing good value for money remains central to our financial strategy.

Results for the Year

The Operating Surplus for the year before investment valuation movements was £281,000 (2019: deficit of £134,000). The funds of the charity at the end of 2020 amounted to £2,732,000 (2019: £2,459,000).

drop in examination fees. Membership subscriptions grew slightly in 2020.

With regard to membership subscriptions and fees, it remains our policy to keep any increases to the minimum necessary to achieve the Association’s budgetary objectives.

Expenditure

Expenditure for the year amounted to £2,665,000 (2019: £3,203,000).

Due to the uncertainty caused by COVID-19 we took measures to cut costs at an early stage, this included moving all events and examinations online, a ban on all travel and freezing staff pay.

The Association shares staff and other administrative services with the CIOT which enables both organisations to benefit from economies of scale and efficiencies.

The expenditure of the Association is in furtherance of its charitable objectives and in addition to delivering examination and Continuing Professional Development (CPD) programmes, grants of £20,000 (2019: £14,000) were made in the year to charities that are aligned to our objectives.

We continue to provide our members with supportive educational resources including Tolley’s Tax Guide, Whillans’s Tax Tables, mouse mats, Tax Adviser and an Annotated Copy of the Finance Act.

Income

Taxation Disciplinary Board

The income for the year was £2,946,000 (2019: £3,069,000).

We experienced a drop in income largely due to COVID-19 and having to cancel an examination session which resulted in a large

The professional delivery of taxation-related services requires an effective and independent disciplinary scheme to maintain the confidence of HM Government, HMRC, the business sector and the public, in our

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ANNUAL REPORT 2020 TREASURER’S REPORT

Association. The Taxation Disciplinary Board (TDB) administers the Taxation Disciplinary Scheme for both the ATT and the CIOT. Expenditure of £69,000 was incurred in 2020. (2019: £46,000) as the Association’s contribution to the TDB’s costs, and comprise part of Member Services’ expenditure in the financial statements.

The Association maintains a designated reserve to be called upon should the TDB be facing unusually complex and costly cases.

Reserves

Free reserves are held to provide the Association with the financial security to meet its obligations and liabilities, but also to enable investment in new initiatives in the furtherance of its charitable objectives. The Reserves Policy set by Council requires the level of general reserves to be equivalent to nine months’ budgeted costs. Free reserves at the end of 2020 amounted to £2,327,000 (2019: £2,053,000) which was equivalent to 10.8 months’ targeted running costs. Total Unrestricted Reserves at the end of 2020 were £2,732,000 (2019: £2,459,000). The surplus in actual reserves compared to the targeted level is £373,000 and is partly due to the operating surplus reported for the year. The Association keeps its activities and expenditure under regular review, and any necessary action will be taken to ensure operational efficiency and value for money. The Trustees are confident that this approach will provide sustainable finances in support of its charitable aims over the medium to long term.

COVID-19 Update

The onset of the pandemic and the resulting emerging impact on the economy has brought a great deal of uncertainty. The ATT took action by cancelling all face-to-face meetings, events and physical examination sittings for

the remainder of 2020 and this situation continues into 2021.

We have replaced the face-to-face meetings and events with a programme of online meetings and webinars. We have accelerated the delivery of our online examination programme and all our examinations are now held remotely.

The ongoing effect of the pandemic on our membership numbers remains uncertain, but the long-term nature of membership provides some reassurance. The Association has also brought in other cost saving measures. So whilst income streams have and will be affected, they are mitigated by cost savings. In 2020, total expenditure was reduced by £538,000 (16.8%) compared to 2019. The Association will continue the reforecasting exercises that were carried out during 2020 into 2021.

The ATT has substantial reserves, standing at £2,732,000 at 31 December 2020. These reserves have built up over the years to provide financial stability for the Association to continue its charitable purposes in just such circumstances as this pandemic, and the financial assets held by ATT can be readily converted into cash.

Going concern

The financial statements are prepared on a going concern basis as the Trustees are satisfied there is reasonable expectation that there are adequate resources to continue in operational existence for the foreseeable future.

Details of the Association’s reserves are shown in Note 1 Accounting Policies in the Financial Statements.

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ANNUAL REPORT 2020 TREASURER’S REPORT

Investments

The Association’s investment portfolio was valued at £1,421,000 as at 31 December 2020 (2019: £1,417,000), an increase of £4,000. We also receive income from the portfolio which remains satisfactory. The Finance Steering Group meets regularly with our investment managers, Investec, and we keep our investment strategy under review annually.

One consequence of the pandemic has been that world stock markets have experienced significant volatility. It is estimated that the market value of investments has increased by £7,000 (or 0.5%) at the date of approving these accounts.

No withdrawals or additions to investments have been made since the balance sheet date.

Thank you

I would like to record my thanks to the members of the Finance Steering Group who served during the year as well as our Finance Team at Head Office for all their support.

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ANNUAL REPORT 2020 ASSOCIATION GOVERNANCE

Jane Ashton reports

Compliance statement

The Association operates within the terms of its Articles of Association and its management is under the control of the Council of the Association. The Association is committed to business integrity and high ethical values in all its activities and the Council has overall responsibility for the Association’s internal controls. The Council has considered the guidance published by the Charity Commission and concluded that the Charity’s core activity satisfactorily addresses the principles of identifiable public benefit and demonstrates that the charity has fulfilled the public benefit requirement under Section 17 of the Charities Act 2011.

Council

As at 31 December 2020 the Council comprised 19 Trustees. They provide a wide range of skills and experience. The majority are tax practitioners working in the accountancy and legal professions. They fulfil both executive and non-executive roles such that no individual or small group of individuals can dominate Council decisions. The roles of the President, Deputy President and Vice President are separate and clearly defined. The Council considers that its non-Council committee members are independent.

The Council met four times during the year to deal with Trustee business, review financial performance, strategy and risk at which there were formal agendas of matters specifically reserved to it for decision. Council papers, including an agenda, Council and committee minutes and briefing papers, are sent to Council members in advance of each meeting. Council members achieved an overall attendance rate of 93% (2019: 89%) at Council meetings. Council and committee members are required to make declarations of interest in any matter arising at meetings whenever appropriate. A Register of Council and Committee Members’ Interests is kept. Members of Council have access to the advice and services of Association staff and may take independent professional advice at the expense of the Association. There are a number of standing committees of Council to which implementation of the Association’s strategy has been delegated. Standing committees adopt the same approach to the preparation and distribution of papers for meetings. Membership of the committees as of 31 December 2020 is set out on pages 4243.

Election to Council

Election of up to 24 members of Council is by the Members of the Association at the Annual General Meeting. The Chartered Institute of Taxation is entitled to nominate one member of Council. Council is responsible for processing nominations for election to Council and for the election of the Honorary Officers.

New Council members, who must also be Members of the Association, are selected for what they can contribute to the Association and they must sign a declaration that they are not disqualified from acting as a Trustee as detailed in Section 178 of the Charities Act 2011. They are also required to confirm that

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ANNUAL REPORT 2020 ASSOCIATION GOVERNANCE

there is no matter which they should bring to the attention of the Association which might bring the Association into disrepute. In addition, a background check is conducted by an independent company. There is a Trustee (Council member) Code of Conduct which they agree to adhere to. Trustee training is provided each year for new and existing Trustees and a Trustees’ Handbook has been issued to all Trustees.

Leadership Team

In addition to the usual 6 meetings per year Leadership Team met every two weeks from April 2020 to consider budgets and the effects of COVID-19 on the Association.

Audit & Risk Committee

The Audit & Risk Committee, a joint Committee of the Association and the Chartered Institute of Taxation, has a formal constitution and a separate budget. Its members are appointed by the Councils of the Association and the Institute and comprise a serving member of each Council, a nominee from each of the Association and the Institute and two other independent members. The Chief Executive attends all meetings. Members of the Committee receive no remuneration for their services although travel expenses are reimbursed, operate independently from the Council, have both accountancy and taxation qualifications and recent and relevant experience. The Committee acts as a catalyst in relation to matters that affect the Association’s financial controls, reporting requirements and risk management and is authorised to seek any information it requires from members of the Council, the external auditor and the staff. In this role it reviews:

It has a specific responsibility for making a recommendation to Council on the appointment and removal of the external auditor. It met five times during the year and requests and receives reports from management and from the external auditor on the audit. It considers annually a wide range of audit-related subjects and reports directly to the Council and comments on perceived weaknesses. No major weaknesses in internal control systems have been identified.

Council member remuneration

Council members receive no remuneration for their services as Trustees although their expenses incurred on Association business are reimbursed. There is provision in Article 6 of the Articles of Association for up to six members of the Council or former members who have served on Council in the last three years to receive remuneration for their services as a lecturer or examiner. During 2020 one member of Council was paid for their services as a lecturer at the annual tax conferences and the joint conferences with the Association of Accounting Technicians (2019: one).

Internal controls

The respective responsibilities of the Council and auditor in connection with the financial statements are explained on pages 46-47. The Council’s statement on going concern is set out below. There were no non-audit services provided by the auditor during the year.

The Council is responsible for the Association’s system of internal control and for taking such

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ANNUAL REPORT 2020 ASSOCIATION GOVERNANCE

steps as are reasonably open to it to safeguard the assets of the Association and to prevent and detect fraud and other irregularities. The guidance refers to internal controls in the widest sense, including financial, operational and compliance controls and risk management.

Responsibility for managing the business of the Association rests, ultimately, with Council. However, management of the day-to-day activity is delegated to the Chief Executive and the Officers. Certain powers of the Council are delegated to committees and to the Chief Executive who are also entrusted with carrying out appropriate aspects of the Association’s strategy. An annual letter of assurance is signed by Association Executives with responsibility for the preparation of financial statements and the adequacy of internal financial compliance and non-financial controls.

Key financial and operational measures are reported on a quarterly basis and are measured against both budget and interim forecasts that have been approved and reviewed by the Council. The Council has established a clear organisational structure with defined authority levels.

The Council acknowledges that it is responsible for the Association’s system of internal control and for reviewing its effectiveness. As with all such systems, internal control is designed to manage, rather than eliminate the risk of failure to achieve strategic objectives and can only provide reasonable and not absolute assurance against material misstatement or loss.

The Council reviews the effectiveness of the Association’s system of internal controls on a regular basis by monitoring the reports from the Audit & Risk Committee and other committees.

The Council keeps under review the need for an internal audit function at the Association. The Council’s current view, supported by the Audit & Risk Committee, is that a separate function is not required, given the size and nature of the Association, the close management supervision exercised, and the attention paid to the adequacy of financial and operational controls.

Fundraising

The Association does not raise funds for itself through asking for public donations in any form.

Risk management

Council has delegated responsibility for the maintenance of the Association’s Risk Register to the Leadership Team. The Register has the objective of increasing stakeholders’ confidence in the integrity of the Association, strengthening the ongoing process of risk assessment of uncertainty throughout the Association, and providing a valuable management tool or framework for mitigating risks which might otherwise prevent the Association from achieving its charitable objectives.

We have identified the following as our principal risks:

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ANNUAL REPORT 2020 ASSOCIATION GOVERNANCE

development of the UK tax system to ensure that, for the general public, it is workable and as fair as possible.

The development and maintenance of the Association’s Risk Register is a continuing process of refinement and integration into the management process.

Going concern

The Council has reviewed the Association’s budget for 2021 and beyond and the timing of expenditure relating to its strategy and is satisfied that it is appropriate to prepare the financial statements on the going concern basis.

Jane Ashton

Chief Executive

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ANNUAL REPORT 2020 COMMITTEES OF COUNCIL

Leadership Team
Jeremy Coker (Chair) David Bradshaw Simon Groom
Graham Batty Tracy Easman Richard Todd
Business Development Steering Group
Kay Mind (Chair) Hilary Hart* Samantha Perkin*
Nic Byrne* Georgiana Head Seb Purbrick*
Richard Freeman Hayley Perkin
Examination Steering Group
Graham Batty (Chair) Jackie Hall Natalie Miller*
Angela Cairns* Vicky Hulse* Angela Petty*
Tracy Easman
Finance Steering Group
David Bradshaw (Chair) Simon Groom Julian Millinchamp
Jeremy Coker Katharine Lindley Chris Pimblott*
Member Steering Group
Katharine Lindley (Chair) Sarah Hewson* Amanpret Purewall*
Charlotte Chapman* Banin Oozeerally* Tanya Wadeson
Richard Freeman Samantha Perkin* Abbie West-Kelsey*
Georgiana Head Seb Purbrick* Rana Zubair*
Technical Steering Group
Michael Steed
Jon Stride (Co-Chairs) Matthew Herring* Hayley Perkin
Delyth Barnett* Abigail Holland* Senga Prior
Trevor Blackmur* Arnold Homer* Stephen Taylor*
Adela Cebotari* Lisa Lane* Sofia Thomas*
Ann Elmer* Yvette Nunn*
VAT Sub-Group
Stephen Taylor* (Chair) Jamie Jarrett* Hugh Mitchell*
Nancy Cruickshanks Christopher Lewis* Arif Punjani*
Glyn Edwards* Julian Millinchamp Michael Steed
Becky Hayes*

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ANNUAL REPORT 2020 COMMITTEES OF COUNCIL

Audit Committee (joint with the Institute) Laura Kaye Tomlinson ( Chair ) Graham Batty Peter Newsam Equality, Diversity and Inclusion Committee (joint with the Institute) Tina Riches ( Chair ) Jeremy Coker Reshma Johar Joint Digitalisation and Agent Services Committee (joint with the Institute) Tina Riches ( Chair ) Tracy Easman Yvette Nunn Trevor Blackmur Sarah Ferries James Tweedy Andrew Cornett Joint Officers and Senior Staff Forum (joint with the Institute) Chair alternates between Presidents Graham Batty Jeremy Coker Simon Groom David Bradshaw Tracy Easman Richard Todd

Performance & Remuneration Committee (joint with the Institute) Vincent Oratore ( Chair ) Ralph Pettengell

Professional Standards Committee (joint with the Institute) Richard Todd ( Chair ) Tracy Easman Anthony Thomas David Bird Lisa Macpherson Juan Carlos Venegas Kay Mind David Stedman

Tax Adviser Sub-Committee (joint with the Institute) Yvette Nunn*

Representation on committees of the Institute

Officers’ Group Examination Committee Technical Policy and Oversight Committee Jeremy Coker Graham Batty Michael Steed Jon Stride Education Committee Finance & Operations Committee Graham Batty David Bradshaw

*indicates co-opted member

For all Joint Committees, only ATT members are listed

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ANNUAL REPORT 2020 STATEMENT OF DIRECTORS’ RESPONSIBILITIES

The Directors are responsible for preparing the Annual Report and the Financial Statements in accordance with applicable law and regulations.

Company law requires the Directors to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of the income and expenditure of the charity for that period.

In preparing these Financial Statements, the Directors are required to:

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ANNUAL REPORT 2020 INDEPENDENT AUDITOR’S REPORT

Opinion

We have audited the financial statements of The Association of Taxation Technicians (the ‘charitable company’) for the year ended 31 December 2020 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s

Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or

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ANNUAL REPORT 2020 INDEPENDENT AUDITOR’S REPORT

otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the directors’ responsibilities statement in the directors’ annual report, the trustees (who are also the directors for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

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ANNUAL REPORT 2020 INDEPENDENT AUDITOR’S REPORT

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities including fraud, is detailed below.

How the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, was as follows:

have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006;

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

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ANNUAL REPORT 2020 INDEPENDENT AUDITOR’S REPORT

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify noncompliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.

Catherine Biscoe (Senior Statutory Auditor) For and on behalf of Buzzacott LLP, Statutory Auditor 130 Wood Street London EC2V 6DL

6 May 2021

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities . This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purposes. To

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ANNUAL REPORT 2020 FINANCIAL STATEMENTS

Statement of Financial Activities (including income and expenditure account) for year ended 31 December 2020

December 2020
Note Unrestricted
Funds 2020
£’000
Unrestricted
Funds 2019
£’000
Income:
Charitable activities
2a		 2,896
3,005
Income from other tradingactivities
2b		 15
3
Investment income
2c		 35
61
Total income 2,946
3,069
Expenditure:
Cost of raisingfunds
2d		 8
9
Expenditure on charitable activities
2d		 2,657
3,194
Total expenditure 2,665
3,203
Operating gain/(loss) 281
(134)
Net(losses)/gains on investments
5		 (8)
114
Net income/(expenditure)
3		 273
(20)
Net movement in funds 273
(20)
Reconciliation of funds:
Total funds brought forward at 1 January
12		 2,459
2,479
Total funds carried forward at 31 December
12		 2,732
2,459

The above results are derived from continuing activities and all gains and losses recognised in the year are included above. The notes on pages 53 to 67 form part of these financial statements.

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ANNUAL REPORT 2020 FINANCIAL STATEMENTS

Registered Company Number 02418331

Balance Sheet as at 31 December 2020

Balance Sheet as at 31 December 2020
Note 2020
£’000
2019
£’000
Fixed Assets:
Tangible Fixed Assets
4		 0
0
Intangible Fixed Assets
4		 4
5
Investments
5		 1,421
1,417
Total Fixed Assets 1,425
1,422
Current Assets:
Debtors
6		 101
238
Cash at bank and in hand
7		 2,828
2,058
Total Current Assets 2,929
2,296
Liabilities:
Creditors fallingdue within oneyear
8		 (1,396)
(1,078)
Net Current Assets/(Liabilities) 1,533
1,218
Total assets less current liabilities 2,958
2,640
Creditors fallingdue after more than oneyear
9		 (226)
(181)
Net Assets 2,732
2,459
**Funds of the charity: **
Restricted 0
0
Unrestricted
11		 2,732
2,459
Total funds 2,732
2,459

Approved and authorised for issue by the Council on 30 April 2021 and signed on its behalf by:

J Coker, President

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ANNUAL REPORT 2020 FINANCIAL STATEMENTS

Cash flow statement for the year ended 31 December 2020

Cash flow statement for the year ended 31 December 2020
Note 2020
£’000
2019
£’000
Net cashprovided by/(used in) operating activities
Table A		 747
(31)
Cash flows from investingactivities
Dividends and interest from investments 35
61
Purchase of fixed assets 0
0
Purchase of investments (307)
(333)
Proceeds from sale of investments 295
218
Net cashprovided byinvestment activities 23
(54)
Increase/(decrease)in cash and cash equivalents inyear 770
(85)
Cash and cash equivalents at 1 January 2,058
2,143
Cash and cash equivalents at 31 December
Table B		 2,828
2,058

Table A

Table A
2020
£’000		 2019
£’000
Reconciliation of net income/expenditure to cash flow
from operating activities
Net income/(expenditure)asper the SOFA
273		 (20)
Adjustments for:
Depreciation and amortisation
1		 2
Dividend interest and investment
(35)		 (61)
Loss/(Gains)on investments
8		 (114)
Decrease in stock
0		 0
Decrease in debtors
137		 22
Increase in creditors
363		 140
Net cashprovided by/(used in) operating activities
747		 (31)

Table B

Table B
2020
£’000		 2019
£’000
Analysis of cash and cash equivalents:
Cash in hand
5		 18
Notice deposits(less than 3 months)
2,823		 2,040
Total cash and cash equivalents
2,828		 2,058

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ANNUAL REPORT 2020 FINANCIAL STATEMENTS

Table C

Analysis of changes in net debt

Analysis of changes in net debt
At 1 January
2020
£’000		 Cash flows
£’000
At 31
December
2020
£’000
Cash
2,058		 770
2,828
Total
2,058		 770
2,828

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ANNUAL REPORT 2020 NOTES TO FINANCIAL STATEMENTS

1. Accounting Policies

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

Basis of preparation of accounts

The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 and the Charities Act 2011 and UK Generally Accepted Accounting Practice as it applies from 1 January 2015.

The financial statements for the year to 31 December 2020 are presented in Sterling and rounded to the nearest thousand pounds. Assets and liabilities are initially recognised at historic cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

The Association of Taxation Technicians is a company limited by guarantee and registered as a charity with the Charity Commission. The Association of Taxation Technicians meets the definition of a public benefit entity under FRS102.

The Chartered Institute of Taxation (registered charity number: 1037771) of 30 Monck Street, London SW1P 2AP is a connected charity but it is not subordinate to the Association and therefore consolidated financial statements have not been prepared. Further information on the relationship can be found in note 16.

Official accounting estimates and judgements

Preparation of the financial statements requires the trustees and management to make significant judgements and estimates. The items in the financial statements where these judgements and estimates have been made include:

In addition to the above, the full impact of the emergence of the global COVID-19 pandemic is still unknown. It is therefore not currently possible to evaluate all the potential implications for the charity’s activities, beneficiaries, members, suppliers and the wider economy. Estimates used in the accounts are therefore subject to a greater degree of uncertainty and volatility.

As set out in these accounting policies under ‘Going Concern’, the Trustees are required to prepare the accounts on a going concern basis unless it is inappropriate to presume that the charity will continue in business. In making this assessment, the Trustees have considered the potential impact and uncertainty

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ANNUAL REPORT 2020 NOTES TO FINANCIAL STATEMENTS

of the COVID-19 pandemic on the operations of the charity and prepared financial forecasts to March 2022.

Going concern

The coronavirus pandemic has impacted the Association’s finances for 2020 and beyond that into 2021. It has been felt in the following areas:

Income: Examinations are being delivered online, but numbers sitting are likely to be reduced. Membership renewals are likely to be lower.

Expenditure: There were cost savings as a result of cancelling all travel, face-to-face events, physical examination sittings and meetings. All discretionary expenditure has ceased. Other cost saving measures have been implemented.

Cash flow: As a result, net cash inflows increased in 2020, but may reduce in 2021. However, liquid reserves are sufficient to cover the reduction.

The Trustees conclude that the Association has sufficient reserves to continue in operational existence for a period of at least 12 months from the date of approval of these accounts, and accordingly continue to prepare the accounts on a going concern basis.

Income recognition

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met and it is probable that the income will be received and the income can be reliably measured.

Student registration fees are not refundable and are credited to income over the period of registration with 40% recognised in the first year and 15% each subsequent year. For Tax Pathway students, the registration fees are credited to income over the period of registration with 50% recognised in the first year and 12.5% in each subsequent year.

Subscriptions, sponsorship, examination fees and registration income are credited to income over the period to which they relate with that portion relating to subsequent years included in creditors. The date to which examination fees relate is deemed to be the date of the examination. Investment income from the Association’s portfolio of investments is credited on an earnings basis each year.

Expenditure recognition

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party. It is probable that the settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Expenditure on raising funds comprise the costs of commercial trading including investment management costs.

Expenditure on charitable activities includes, but is not limited to, the cost of member services, student services, education, governance and grants.

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ANNUAL REPORT 2020 NOTES TO FINANCIAL STATEMENTS

Other expenditure represents those items not falling into any other heading.

Irrecoverable VAT is charged at a cost against the activity for which the expenditure was incurred.

Donated services and facilities

In accordance with Charities SORP (FRS102) the contribution of unpaid volunteers is not recognised as income in the financial statements given the absence of a reliable measurement basis.

Donated services are recognised on receipt or supply on the basis of the value or donation or contribution which is the amount that the Association would be willing to pay or charge to obtain or supply facilities and services on the open market. Corresponding amounts are recognised as income and expenditure in the period.

Allocation of support costs

Support costs are central administration costs that assist the work of the charity but are not directly allocated to charitable activities. These costs are allocated across the categories of charitable expenditure and governance costs.

The basis of allocation is given in note 2d to the financial statements. Governance costs, now included as a part of support costs rather than as a separate category, include those incurred in the governance of the charity and are primarily associated with organizational administration, and constitutional and statutory requirements.

Reserves

In 2020 the target for reserves was composed as follows:

In 2020 the target for reserves was composed as follows:
2020
£’000
9 month’s budgeted costs to provide financial stability and enable the Association 1,958
to meet its commitments for a reasonable period in the event of adverse operating
conditions
To cover (i) the unpredictable future costs of investigations and disciplinary 401
hearings by the Taxation Disciplinary Board; (ii) the cost of improvements to our IT
systems and website;and(iii)thepropertycosts
2,359
Actual reserves at 31 December 2020(includingdesignated funds) 2,732
Surplus in target level of reserves 373

Fixed asset investments

Investments have been valued at fair value at 31 December 2020. The fair value of investments quoted on a recognised stock exchange is the quoted bid price. Account is therefore taken of both realised and unrealised gains in the Statement of Financial Activities.

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ANNUAL REPORT 2020 NOTES TO FINANCIAL STATEMENTS

Intangible and tangible fixed assets and depreciation and amortisation

All single purchases of less than £1,000 (inc VAT) are written off in full to the Statement of Financial Activities in the year of purchase unless forming part of a bulk purchase where the total is £1,000 (inc VAT) or more, which is capitalized.

Depreciation and amortisation are calculated to write off the cost of fixed assets over their estimated useful lives on a straight line basis as follows:

Office equipment 25%

Intangible assets relating to digitalisation of the ATT coat of arms 20%

Debtors

Trade and other debtors are recognised at the settlement amount due after any discount offered. Prepayments are valued at the amount prepaid net of any discounts due.

Cash at bank and in hand

Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any discounts due.

Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments and are not considered to be of a financing nature. Such financial instruments, except for investments classified at fair value through profit or loss, are initially recognised at the transaction value and subsequently measured at their settlement value.

Pension costs

Members of staff are eligible to join the Association’s defined contribution retirement benefits scheme. The scheme provides individual pension plans which are managed by independent pension providers. The amounts charged to the statement of financial activities in respect of pension costs is the actual contribution payable in the year as part of the shared cost agreement.

Foreign currencies

Monetary assets and liabilities in foreign currencies are translated into Sterling at the rates ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate set at the date of the transaction. All differences are taken to the Statement of Financial Activities.

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ANNUAL REPORT 2020

NOTES TO FINANCIAL STATEMENTS

Taxation

The Association meets the definition of a charity in Schedule 6 Finance Act 2010 and accordingly is entitled to exemptions set out in Part 11 Corporation Tax Act 2010 and section 256 Taxation of Chargeable Gains Act 1992 to the extent that its income and gains are applied for charitable purposes.

Fund accounting

Unrestricted funds are available to spend on activities that further any of the purposes of the charity. Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes.

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ANNUAL REPORT 2020 NOTES TO FINANCIAL STATEMENTS

2. Analysis of income and expenditure

2a. Income from charitable activities

2a. Income from charitable activities
Restated
2020 2019
£’000 £’000
Membershipsubscriptions 1,487 1,435
Entrance fees 41 56
Student registrations 323 220
Examination fees 666 937
Conference and event fees 82 128
Anti-MoneyLaunderingfees 169 94
Sale of books andjournal 97 109
Grant income 19 0
Other income 12 26
2,896 3,005

The income from charitable activities was £2,896k (2019: £3,005k) all of which was unrestricted (2019: all).

2b. Income from other trading activities

2b. Income from other trading activities
2020 2019
£’000 £’000
Sponsorship 15 3
2c. Income from investments
2020 2019
£’000 £’000
Dividend income 30 42
Deposit account interest 5 19
35 61

2d. Breakdown of expenditure

2d. Breakdown of expenditure
Activities
undertaken
directly
£’000
Support
Costs
£’000		 Grant
Funding of
activities
£’000
Total
2020
£’000
Charitable activities
Member Services
551
656		 20
1,227
Student Services
625
744		 0
1,369
Promotion
28
33		 0
61
1,204
1,433		 20
2,657
Raising funds
Investment management costs
8
0		 0
8
2020
1,212
1,433		 20
2,665

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ANNUAL REPORT 2020 NOTES TO FINANCIAL STATEMENTS

ANNUAL REPORT 2020
NOTES TO FINANCIAL STATEMENTS
Activities
undertaken
directly
£’000
Support
Costs
£’000		 Grant
Funding of
activities
£’000
Restated
Total
2019
£’000
Charitable activities
Member Services
696
767		 14
1,477
Student Services
765
825		 0
1,590
Promotion
60
67		 0
127
1,521
1,659		 14
3,194
Raising funds
Investment management costs
9
0		 0
9
2019
1,530
1,659		 14
3,203

Support costs (including governance costs) are central administration costs allocated to each activity on the same proportional basis as expenditure incurred directly and are analysed as follows:

Restated Restated
2020 2019
£’000 £’000
Support costs comprising:
Staff costs 744 807
Operatingcosts 206 268
Property 331 416
Governance costs comprising:
Audit fee 15 13
Legal andprofessional fees 1 8
Council meetings (inc. Council members’ 9 36
expenses)
Property 29 35
Staff costs 98 76
1,433 1,659

Grants payable in respect of charitable activities

2020
£’000		 2019
£’000
Grants payable to tax and other charities to help meet the
core operating cost of providing free tax advice to persons
who cannot afford to pay for professional help or training
and topromotepublic understandingof tax matters
Tax Advisers Benevolent Fund (registered Charity no:
1049658)
0
2
Tax Aid(registered Charityno: 10622852)
10
6
Tax Volunteers(registered Charityno: 1102276)
10
6
20
14

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ANNUAL REPORT 2020 NOTES TO FINANCIAL STATEMENTS

3. Net income/(expenditure) for the year

3. Net income/(expenditure) for the year
2020
£’000
2019

£’000
This is stated after charging:
Fair value losses/(gains)on investments
8
(114)
Auditor’s Remuneration
15
13
Amortisation and depreciation
1
2

4. Fixed assets

Office
Equipment
Total Tangible
Fixed Assets
£’000		 Intangible
Fixed Assets
£’000
Total
Fixed Assets
£’000
Cost at 1 January2020
1
1		 7
8
Additions/(Disposals)
0
0		 0
0
Cost at 31 December 2020
1
1		 7
8
Depreciation at 1 January2020
1
1		 2
3
Charges for theyear
0
0		 1
1
Disposals
0
0		 0
0
Depreciation at 31 December 2020
1
1		 3
4
Net book value at 31 December 2020
0
0		 4
4
Net book value at 31 December 2019
0
0		 5
5

All tangible fixed assets are held for charitable purposes.

The depreciation charge for office equipment for 2020 is £534 (2019: £641).

5. Fixed asset investments

5. Fixed asset investments
2020 2019
£’000 £’000
Fair value at 1 January2020 1,417 1,188
Disposal Proceeds (295) (218)
Acquisitions 307
333
Unrealisedgain on investment assets 99
114
Realised(loss)/gain on sale of investments (107) 0
Fair Value at 31 December 2020 1,421
1,417
Historical cost 1,121
1,156
Listed Investments held at 31 December comprised the
following:
Fixed interest 120
113
Listed UK equities 570
668
Listed International equities 528
455
Other Assets 203
181
1,421
1,417

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ANNUAL REPORT 2020 NOTES TO FINANCIAL STATEMENTS

Holdings representing more than 5% of the investment portfolio valuation at 31 December 2020 were:

2020
£		 2019
£
Brown AdvisoryFds US Sustainable Gth Si GBP
72,337
0
650 FindlayPark Fds American USD Dis
75,034
0
350 Ssga Spdr E I Spdr S&P 500 Etf Nav
95,529
85,503

6. Debtors

6. Debtors

2020
£’000		 Restated
2019
£’000
Trade debtors
13		 40
Other debtors
5		 23
Prepayments
18		 29
Accrued income
65		 146
101 238

7. Analysis of changes in cash and short-term deposits

7. Analysis of changes in cash and short-term deposits

2020
£’000		 2019
£’000
Cash at bank
5		 18
Cash on short term deposit
2,823		 2,040
2,828 2,058

8a. Creditors: amounts falling due within one year

8a. Creditors: amounts falling due within one year

2020
£’000		 2019
£’000
Trade creditors
354		 22
Accruals
83		 52
The Chartered Institute of Taxation
290		 371
Other Taxes
0		 44
Deferred Income (fees and subscriptions received in
advance)
669		 589
1,396 1,078

Deferred income includes subscriptions, examination fees and conference fees paid in 2020 but relating to future events.

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ANNUAL REPORT 2020

NOTES TO FINANCIAL STATEMENTS

8b. Deferred income

8b. Deferred income

2020
£’000		 2019
£’000
Student Registration Fees
Amount brought forward
313		 342
Fees received inyear
195		 191
Fees released to income inyear
(141)		 (220)
Amount carried forward
367		 313
Subscription and other fees
526		 457
Total Deferred Income
893		 770
Representing:
Within oneyear
669		 589
After oneyear
224		 181
893 770
9. Creditors: amounts falling due after one year

2020
£’000		 2019
£’000
Student Registration Fees
224		 181
Taxation DisciplinaryBoard
2		 0
Total
226		 181

10. Financial instruments

10. Financial instruments

2020
£’000		 Restated
2019
£’000
Financial Assets
Debt Instruments measured at amortised cost
18		 63
Instruments measured at fair value throughprofit and loss
1,421		 1,417
Amount carried forward
1,439		 1,480
Financial Liabilities
Measured at amortised cost
644		 393
Amount carried forward
644		 393

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ANNUAL REPORT 2020 NOTES TO FINANCIAL STATEMENTS

11. Income funds: unrestricted

11. Income funds: unrestricted
At 01.01.20
£’000		 Income
£’000
Expenditure
and losses
£’000		 Transfer
£’000
At 31.12.20
£’000
Unrestricted
General
2,058		 2,946
(2,673)		 0
2,331
Designated
Property
176		 0
0		 0
176
Disciplinary procedures
150		 0
0		 0
150
Technology
75		 0
0		 0
75
2,459 2,946
(2,673)		 0
2,732
At 01.01.19
£’000		 Income
as restated
£’000
Expenditure
as restated
£’000		 Transfer
£’000
At 31.12.19
as restated
£’000
Unrestricted
General
2,065		 3,183
(3,203)		 13
2,058
Designated
Property
189		 0
0		 (13)
176
Disciplinary procedures
150		 0
0		 0
150
Technology
75		 0
0		 0
75
2,479 3,183
(3,203)		 0
2,459

Unrestricted funds are available to spend on activities that further any of the purposes of the charity. Designated funds comprise funds that have been set aside by the trustees for a particular purpose. The property fund will be held until December 2028, the end of the lease on the Monck Street premises. The disciplinary fund will be used and added to over time for the purpose of the Taxation Disciplinary Board. The technology fund will be used for significant investment in technology as determined by the trustees.

12. Analysis of net assets between funds

12. Analysis of net assets between funds
2020
Unrestricted
Fund
£’000		 2020
Designated
Fund
£’000
2020
Total
£’000
Tangible Fixed Assets
0		 0
0
Intangible Fixed Assets
4		 0
4
Investments
1,421		 0
1,421
Cash on short-term deposit and at bank
2,427		 401
2,828
Other net current(liabilities)
(1,295)		 0
(1,295)
Creditors fallingdue after more than oneyear
(226)		 0
(226)
2,331 401
2,732

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ANNUAL REPORT 2020 NOTES TO FINANCIAL STATEMENTS


2019
Unrestricted
Fund
£’000		 2019
Designated
Fund
£’000
2019
Total
£’000
Tangible Fixed Assets
0		 0
0
Intangible Fixed Assets
5		 0
5
Investments
1,417		 0
1,417
Cash on short-term deposit and at bank
1,657		 401
2,058
Other net current(liabilities)
(840)		 0
(840)
Creditors fallingdue after more than oneyear
(181)		 0
(181)
2,058 401
2,459

The total unrealised gains at 31 December 2020 constitute movements on revaluation and are as follows:


2020
£’000		 2019
£’000
Unrealisedgains included above:
On investments
300		 261
Total unrealisedgains at 31 December
300		 261
Financial Liabilities
Reconciliation of movements in unrealisedgains:
Unrealisedgains at 1 January
261		 63
(Less)/add in respect to disposals inyear
(60)		 84
201 147
Addgains arisingon revaluations inyear
99		 114
Total unrealisedgains at 31 December
300		 261

13. Capital commitments

At 31 December 2020 there were no capital commitments contracted or authorised but not contracted (2019: none).

14. Financial commitments

Financial commitments authorised but not contracted for at 31 December 2020 £nil (2019: £nil).

15. Personnel

All members of staff, with the exception of the Chief Executive of the Chartered Institute of Taxation, who is employed by the Institute, are jointly employed by the Chartered Institute of Taxation and the Association of Taxation Technicians. All costs are initially disbursed by the Institute and an agreed proportion is attributed to the Association.

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ANNUAL REPORT 2020 NOTES TO FINANCIAL STATEMENTS

The Association has maintained liability insurance throughout the year to pay on behalf of the Association or its Council, committee members and staff, any claims for wrongful acts arising out of the conduct of the Association’s business, or committed in their capacity as officers. The insurance premium paid by the Association covering both claims against the Association and the Trustees personally amounts to £13,451 (2019: £13,811).

There was an outstanding pension contribution at the year-end of £45,248 (2019: £nil).

The average number of employees is 81 (2019: 84) and the number whose salary and benefits in kind, including termination payments, fell within the following scales as follows:


2020		 2019
£60,001-£70,000
8		 6
£70,001-£80,000
4		 4
£80,001-£90,000
3		 4
£90,001-£100,000
0		 0
£100,001-£110,000
1		 1
£110,001-£120,000
1		 1

Total staff costs:

Total staff costs:

2020
£’000		 2019
£’000
Salaries
3,624		 3,633
National Insurance
348		 370
Pension costs
353		 317
4,325 4,320

Key management personnel is defined as those persons having authority and responsibility for planning, directing and controlling the activities of the entity directly or indirectly. The key management personnel of the Association of Taxation Technicians comprised Chief Executive, Director of Education and Chief Finance Officer. The total employee benefits and remuneration (including pension contributions) of the key management personnel during the year was £359,957 (2019: £402,929).

16. Related party transactions

Council members receive no remuneration for their services as trustees. The Articles of the Association state that reasonable and proper remuneration can be made to any member or former member in his capacity as an examiner or lecturer, providing no more than six persons, being members of the Council or former members who served in the Council in the previous three years, shall benefit from this provision in any calendar year. Council members’ remuneration for the year was £1,883 (2019: £3,850). Details of the individual Council members’ remuneration can be obtained on written request to the registered office on page 12. Council members’ travelling expenses are reimbursed in respect of expenses incurred on Association business.

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ANNUAL REPORT 2020 NOTES TO FINANCIAL STATEMENTS

In the year ended 31 December 2020, 7 Council members claimed reimbursement of expenses of £2,561 (2019: 15 claimed a total of £15,267). In addition, £2,043 (2019: £12,296) was paid directly to third parties in relation to trustee accommodation and subsistence. Expenses waived by trustees in 2020 were immaterial (2019: immaterial).

Council members pay subscriptions on the same basis as other members.

The Chartered Institute of Taxation

The Institute is a connected charity in that it has common, parallel or related objects and activities and unity of administration with the Association. All employees, with the exception of the Chief Executive of the Chartered Institute of Taxation, who is employed by the Institute, are jointly employed by the Institute and the Association. Labour, operating and overhead costs borne by the Institute on behalf of the Association are charged to the Association on a quarterly basis using a simple and equitable formula agreed by both parties.

At a meeting of the Officers of both parties it was agreed that the current formula would continue with a review annually. The total allocation for the year is £1,537,495 (2019: £1,677,141) and the balance outstanding due to the Institute at the balance sheet date was £289,552 (2019: £371,364).

The Taxation Disciplinary Board

The Association and the Institute have an agreement with the Taxation Disciplinary Board, a company limited by guarantee managed an independent board of directors. Neither the Association nor the Institute exercise any significant influence over the operating and financial policy of the Board whose object is to administer the Taxation Disciplinary Scheme. The Association’s contribution to costs in the year was £69,065 (2019: £45,781). The amount due to the Taxation Disciplinary Board from the Association of Taxation Technicians at the balance sheet date was £1,933 (2019: £nil).

17. Prior period restatements

The financial statements have been restated as a result of an adjustment to examination and student registration income. In 2020 the charity invoiced examination and student registration income of £48,425 relating to 2019. This income has now been accrued at 31 December 2019. A provision for bad debt of £9,200 has also been raised at 31 December 2019.

These restatements have had the following impact on the net movement in funds for 2019:

Total funds as restated
2019
£’000
Total funds aspreviouslystated 2,420
Add: examination and registration income 48
Less:provision for bad debt (9)
Total funds as restated 2,459

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ANNUAL REPORT 2020 NOTES TO FINANCIAL STATEMENTS

The adjustments shown above had the following impact on the net expenditure for the year ended 31 December 2019:

December 2019:
Net expenditure as restated
2019
£’000
Total expenditure aspreviouslystated (173)
Add: examination and registration income 48
Less:provision for bad debt (9)
Net expenditure as restated (134)

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ANNUAL REPORT 2020 BIOGRAPHIES OF COUNCIL MEMBERS

Graham Batty

Age 64. Graham joined Council in 2012 and is a past President of the Association. He chairs Examination Steering Group and serves on Audit Committee. He is a former Chair of both the Leeds and Birmingham and West Midlands Branches. He became a member of the Association in 2005 and was appointed a Fellow in 2015. Graham qualified as a Chartered Accountant in 1983 and became a member of the Chartered Institute of Taxation in 1986. He is an Associate Director at RSM, specialising in the taxation of charities and other not for profit bodies.

David Bird

Age 55. David joined Council in 2016. He serves on Professional Standards Committee and is a former Chair of the Hampshire Branch. He became a member of the Association in 2016. David qualified as a solicitor and became a member of the Chartered Institute of Taxation in 1994. David specialises in tax law, trusts and succession law and practice.

David Bradshaw

Age 65. David joined Council in 2015. He is the Association’s Vice President and Honorary Treasurer. He chairs Finance Steering Group and serves on the Joint Branches SubCommittee. At various intervals over the past 10 years David has been Chair, Treasurer and Secretary of the North East England Branch. He became a member of the Association in 2015 and qualified as a Chartered Tax Adviser in 1984. He has spent time with all four of the world's largest accountancy practices and has specialised in taxation in both the SME marketplace and large corporate tax departments. He now provides corporation tax administration services for a number of North East businesses.

Jeremy Coker

Age 57. Jeremy joined Council in 2008 and is the Association’s President. He serves on Finance Steering Group and the Equality, Diversity and Inclusion Committee. Jeremy is a former Chair of the London Branch. He became a member of the Association in 2008 and was appointed a Fellow in 2017. A Chartered Accountant and Chartered Certified Accountant, he qualified as a Chartered Tax Adviser in 2000. Jeremy is a Partner with Oury Clark, a multi-discipline practice consisting of an accountancy practice and law firm which specialises in inward investment, assisting overseas companies set up and do business in the UK. Jeremy deals with all aspects of tax relating to private clients, high net worth individuals, owner managed businesses and small and medium sized enterprises.

Nancy Cruickshanks

Age 61. Nancy joined Council in 2017. She serves on the VAT Sub-Group where she represents ATT on HMRC's Joint VAT Consultative Committee. She became a member of the Association in 1993 and was appointed a Fellow in 2011. She qualified as a Chartered Tax Adviser in 1995. She is VAT Partner at Shipleys.

Tracy Easman

Age 55. Tracy joined Council in 2011 and is the Association's immediate past President. She also serves on CIOT Council. She is a former Chair of the Joint Professional Standards Committee and still serves on this committee as well as the Examination Steering Group. Tracy is a former Secretary and Chair of Sussex Branch. She became a member of the Association in 1993 and was appointed a Fellow in 2012. She qualified as a Chartered Tax Adviser in 2000. Tracy started her career with the Inland Revenue and has worked for two tax consultancy firms. She now runs her own practice in West Sussex.

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ANNUAL REPORT 2020 BIOGRAPHIES OF COUNCIL MEMBERS

Richard Freeman

Age 45. Richard joined Council in 2015. He serves on Business Development and Member Steering Groups. Richard currently chairs the HMRC Branch and is a former Chair of Birmingham and West Midlands Branch. He became a member of the Association in 2015. Richard qualified as a solicitor in 2000, and as a Chartered Tax Adviser in 2003. Richard has worked in leading legal and accounting firms and now works for HMRC, where he is a senior tax professional providing technical support to operational teams across the whole range of employment duties and share schemes.

Georgiana Head

Age 47. Georgiana joined Council in 2020. She serves on Business Development and Member Steering Groups. Georgiana qualified as an ATT member in 1997 and trained with Price Waterhouse before moving into tax recruitment. In 2007 she set up Georgiana Head Recruitment Ltd. Georgiana specialises in recruiting tax professionals across the North of England. She is a committee member of ‘Women in Tax’ for Leeds and Manchester Branches and runs two networking and technical support groups for In-house Tax Network and Private Client Ladies. She is also a frequent contributor to the tax press.

Simon Groom

Age 57. Simon joined Council in 2018 and is the Association’s Vice President elect. He serves on Finance Steering Group and is a former member of Business Development and Member Steering Groups and Audit Committee. He became a member of the Association in 2003. Simon qualified as a Chartered Accountant in 1987 and as a Chartered Tax Adviser in 1991. He has spent many years training students for the ATT and CTA examinations and is Director of Tolley Learning at LexisNexis.

Katharine Lindley

Age 47. Katharine joined Council in 2012. She chairs Member Steering Group and serves on Finance Steering Group. She became a member of the Association in 1999 and was appointed a Fellow in 2012. Katharine is a Chartered Tax Adviser, a Chartered Financial Planner and Certified Financial Planner. She specialises in the provision of strategic financial advice to high net worth clients and has worked in the financial planning teams of PwC, Towers Watson and Tilney Bestinvest. She is now Client Director at EQ Investors.

Jacqueline Hall

Age 59. Jacqueline joined Council in 2016. She serves on Examination Steering Group and is a former Chair of Hull Branch and still serves on the Branch Committee. She became a member of the Association in 2016 and is a Chartered Tax Adviser and Chartered Accountant. Jacqueline is a Partner with RSM, providing business and tax advisory and compliance services to owner managed businesses, large employers and individuals.

Julian Millinchamp

Age 64. Julian joined Council in 2014. He serves on Finance Steering Group and VAT Sub-Group. Julian is a former Chair of Severn Valley Branch. He became a member of the Association in 2014 and qualified as a Chartered Tax Adviser in 2000. Julian started his career with Spicer and Pegler in Birmingham and has spent some time as a lecturer. He is currently VAT Director with Hazlewoods in Cheltenham.

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ANNUAL REPORT 2020 BIOGRAPHIES OF COUNCIL MEMBERS

Kay Mind

Age 54. Kay joined Council in 2015 and chairs the Business Development Steering Group. Kay became a member of the Association in 1990 and was appointed a Fellow in 2011. She started her career with the Inland Revenue and has worked in the Private Client Groups at Saffery Champness and BDO. She currently works for Haysmcintyre.

Hayley Perkin

Age 35. Hayley joined Council in 2014. She serves on Business Development Steering Group and Technical Steering Group. She also represents ATT on HMRC's Employment and Payroll Group. Hayley became a member of the Association in 2009 and a Fellow in 2020. She works in practice as a senior tax manager, specialising in employment taxes.

Senga Prior

Age 56. Senga joined Council in 2017 and is ATT’s spokesperson for Scottish taxes. She serves on Technical Steering Group and represents ATT at the Scottish Devolved Taxes Collaborative and attends quarterly meetings between ATT, CIOT, ICAS and the Scottish Government. Senga became a member of the Association in 2002 and a Fellow in 2017. She works in practice as a senior tax manager for Johnston Carmichael specialising in personal tax. She has a particular interest in technology and accounting software.

Michael Steed

Age 67. Michael joined Council in 2009. He is a past President of the Association and coChairs Technical Steering Group. Michael became a member of the Association in 2009 and was appointed a Fellow in 2013. He qualified as a Chartered Tax Adviser in 1995. He has practised in all areas of taxation and specialises in SMEs and indirect taxation. He is Head of Tax for BPP Professional Development and a partner in an OMB practice in Kent.

Jonathan Stride

Age 59. Jonathan joined Council in 2016. He co-Chairs Technical Steering Group and is the ATT representative on the Issues Overview Group. He is a member of the Somerset and Dorset Branch Committee. Jonathan became a member of the Association in 2005 and was appointed a Fellow in 2016. He also holds the AAT and ACCA CAT qualifications. He is a Tax Senior with a firm in Dorset.

Richard Todd

Age 54. Richard joined Council in 2013. He is the Association's Deputy President. He chairs the Joint Professional Standards Committee and is a former Chair of the Northern Ireland Branch. Richard became a member of the Association in 1996 and qualified as a Chartered Tax Adviser in 1998. He began his tax career with the Inland Revenue in London and Central Scotland before returning to Northern Ireland in 1998. He currently works in practice in Belfast.

Tanya Wadeson

Age 44. Tanya joined Council in 2009. She serves on Member Steering Group and is a former Secretary of Sussex Branch. She became a member of the Association in 2003 and was appointed a Fellow is 2020. She specialises in Trust Tax at a firm of solicitors on the South Coast.

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ANNUAL REPORT 2020 BIOGRAPHIES OF COUNCIL MEMBERS

Chief Executive: Jane Ashton

Age 53. Jane became a member of the Association in 1993 and was appointed a Fellow in 2011. She is a member of the Association of Project Managers, an Associate member of the Institute of IT and she is a former member of the Association's Council. Jane was previously with HMRC where over a 30-year period she held various posts gaining considerable experience in tax, tax technical and soft skills training, internal audit, communications and marketing, online services, tax policy, business architecture and project management.

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ANNUAL REPORT 2020 NEW MEMBERS ADMITTED DURING 2020

Abery Meg Ackerley Benjamin Addison Lewis Adesina Esther Ahmad Danyal Ahmed Taslima Akbar Ali Akhtar Waqaas Akhter Anam Al Shariji Ghalia Aldridge Nicholas Alexander Jennifer Ali Amar Al-Samarraie Zyad Amareh Sammy Andrew Carolyn Armstrong Connor Asamoah-Twum Nana Aviles Lopez Ulises Badat Amaira Bagworth Alexandra Bairstow Grace Baker Sophie Baldwin Molly Baleswaran Darshika Balogun Yewande Bancroft Sophie Barclay Holly Barry James Barton Andrew Beadnall Jenny Beale Natasha Beckinsale Timothy Belozorcika Larisa Bentley Emma Blades Abigail Bllaca Medina Blunt Rachel Bone Marcelle Borowy Alenka Bothe Joshua Bowen Thomas Bowker Kelly Brack Darren Braybrooke Elena Brennan Nathan

Brindley David Brooke Joe Brown Eloise Brown Gemma Brown Lara Broxup Jessica Bukalak Aleksandra Burnside Megan Buss Sophie Carrington Karen Carter Lucy Cestari Giulia Chaudhry Zubair Chew Calvin Chohan Dilan Ciurea Lavinia Clark Benjamin Clark Hannah Clark Jordan Cochrane Valerie Cocker Phoebe Coleman Elizabeth Coleman Samantha Conlon Ryan Connolly Sara Cook James Cousin Kirsty Coxhead Meg Craven John Creighton Josephine Cummins Callum D R Sunil D’agostino Marcus Dally John Davis Kaye Davison Harry Do Linh Dong Chengyang Dowling Niamh Downs Briony Driscoll Chloe Duff Gavin Durbin Jonathon Durham Andrew Eastham Amelia Easton Allan

Edwards Nieve Ellis Sarah Emerson Harry Evans Jared Evans Jordan Eveleigh James Eyles Rosalind Fairweather Stuart Falk Isaac Farrant Matthew Faux Victoria Fearon Dylan Fellows Hannah Fennell Cassandra Fenwick Alastair Ferguson Jennifer Figurska Dagmara Fletcher James Flynn Alex France Kelsey Franklyn Nicole Froggett David Fryer Emma Fryers Josie Garden Frederick Gill Aranpreet Ginnelly Joseph Glover Philip Glowacka Marta Gottschalk Sean Graham Matthew Grant Richard Grant Thomas Green Karen Greenwood William Gryniewicz Konrad Gupta Shivali Habbijam Luke Hadfield Myles Halstead Daniel Hampson Isabel Harris Jodie Harrison Charlie Harrison Lucy Harvey Adrian Haseldine Dale

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ANNUAL REPORT 2020 NEW MEMBERS ADMITTED DURING 2020

Haworth Stephanie Hayes Kimberley Hill Samantha Hillard Alexander Hiltunen Lauri Hirons George Hoang Mai Holland Sam Howie Claire Hu Suman Huggin Nina Hughes Shelby Hull Joe Hutton Mark Ilchenko Valerii Ilderton Beth Inglis Euan Inniss-Grant Daniella Iqbal Mehran Ismailova Saltanat Iveson Edward Izumi Ayaka Jamadar Salimmalik James Chelsea Jan Sabrina Jasat Esmail Jeffers Lauren Johnson Benjamin Johnston Adam Jones Dafydd Jones Joshua Jones Samuel Jones Stuart K S Deep Kadiravel Dhishanthini Kamran Haaris Kandasamy Sriram Kaseke Dyllon Keane Andrew Kearsley Joanna Kedizor Daniel Keel Charlotte Keles Hakan Kelly Niamh Kemp Gregory Khalid Mohammed

Khandokar Monwar Khanom Khadija Khanum Jahanara Kilhams Alexander Kisel Aleksandra Ku Tsz Laker Andrew Lancett Alex Law Gareth Lawson Ollie Lear Thomas Lippert Stacy Lloyd Victoria Locke Sonny Lodge Leyla Lone Sobia Longney Danielle Lubbock Alex MacDonald Joshua MacDonald Kate Madlani Bejal Mahate Shirin Mahmood Naghmana Malik Furum Malik Umber Mallon Niall Marriott Dean Mason Bethany Masood Aadil Massingham Richard Mayer Patrick Maynard Guy McAlister Antonia McCabe Daniel McCarthy Alexander McClellan Emma McConville Carmel McCready Andrew McDonald Harry McGovern Roseann McKee Peter Mckirdy Bethany McMurran Chloe McNulty Damien Menzies Rebecca Middleton Joshua

Miron Alina

Montgomery Lauren Moore Sam Morgan Elinor Morgan Rosanna Morrow-McDaid Rowan Mosiewicz Paulina Moss Alexandra Moss-Robins Ashby Moyle Lewis Mulligan Sinead Mulure Linsey Murphy James N Subhashini Napier Alan Narvekar Nikhil Nash Jessica Naylor Ruth Neal Jo Neild Amy Netherway Zoe Newman Robert Nicholson-Wood Shannan Nighate Rajshree Nixon-Jacob Anasta Nufrio Harry Olak Kuranvir Ononeze Ibezim Orban Stefan Orchard Stacey O’Reilly Thomas Owen Katie Page Leah Page Rebecca Palha Joana Parker Alexander Parkyn Samantha Parmenter Rhys Patel Pritesh Patel Tapan Pattani Chandni Patterson Amy Perkins Graham Perry Alice Phillips Ashleigh Pickstock Alana

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ANNUAL REPORT 2020 NEW MEMBERS ADMITTED DURING 2020

Platt Gary Skinner Rebecca Pointer Bethany Slinn Daniel Polson-Owusu Dionne Smith Callum Postlethwaite-Hall Robert Smith Leanne Purkis Jack Smith Matthew Quigley Luke Smith Phil Raghuvanshi Bhavna Smith Thomas Rahman Sahidur Smith Thomas Raju Sowmya Sokhal Robbie Ranow Balraj Solomons Hannah-Rose Ray Phillipa Solovyeva Olga Razey James Speir Tanis Read Heather Spence Claire Reddish Sophie Spencer Susan Reid Nicholas Sritharan Seinthuran Rengger Amy Starkey Christian Rhoden Tyrone Stasiw Andrei Ridley Ellen Steel Charles Ringland Kirsty Steele Hayley Robinson Emma Stones Christopher Robinson Laura Stott Ella Robinson Mark Strivens Katie Rodgers Sam Sweeney Oxana Rodwell Taylor Swords Alan Romanelli Luisa Symonds Terri Ross Aidan Taylor-Caldwell Jamie Rydzewski Puregrace Tennant Joshua Salih Tahir Thampan Sachin Samad Zahra Thind Jasvinder Santos Mejia Patricia Thomas Vincent Sappal Gursharan Thompson Rachel Saxon Joshua Thuposy Smita Scott Bethany Tidy Jessica Scott Harriet Tigg Jordan Seddon Antony Tollafield Ben Selby James Topping Linda Selleck-Emery Alan Trask Lauren Senejko Judyta Trimble Ciara Sharkey Debra Turner Jacob Sheldon Hannah Turner Tom Shen Xuechun Twentyman Oliver Sheppard George Ubbey Gurpreet Sherzad Mohammad Uddin Ayesha Shukry Fathima Usher Kendra Sinfield Aaron Varley Nicola Singh Jungi Dilip Walker Benjamin

Walmsley Alex Walters Joseph Walton Emma Wang Lijuan Ward Bailey Ward Lydia Warren Helen Watt Carmen Watts Emily Waude Jade Weedon Georgina Welsh Paul Whitby Rachel Whyatt Justine Wilkinson Lucie Willett James Williams Hannah Williams Ryan Wojnowski Dawid Wong James Wong Yiu Tsan Wright Matthew Yagor Inna Yusuf Mohammad Zahid Aisha Zaman Amar Zhang Huiming Zharova Yulia Zirne Laima

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ANNUAL REPORT 2020 NOTICE OF ANNUAL GENERAL MEETING

Notice is hereby given that the thirty first Annual General Meeting of the Association of Taxation Technicians will be held on Thursday 8 July 2021 at 1400.

To register for this virtual meeting, please visit: www.att.org.uk/agm2021

Ordinary Business

  1. To receive and adopt the Report for Council for 2020.

  2. To receive and adopt the audited Financial Statements of the Association for the year ended 31 December 2020.

  3. To re-elect as Members of Council: Jacqueline Hall, Katharine Lindley and Jonathan Stride, who retire under Regulation 43.

  4. To re-elect as a Member of Council Georgiana Head, who retires under Regulation 38.

  5. To appoint Buzzacott LLP as the auditor of the Association.

By order of the Council

Jane E C Ashton

Chief Executive 30 Monck Street London SW1P 2AP

30 April 2021

Notes:

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