IABUPDATEJuly 2011

I n t roduction from your Chief Executive

In this edition we cover severalitems of news, including theAnnual General Meeting held lastmonth and the IAB President’sSponsored Bike Ride. We alsohave included another health andsafety related article and are mostgrateful to ChipFast again forproviding it.

If appropriate for you and yourbusiness, I would part i c u l a r l yencourage you to consider taking

on a Bookkeeping or PayrollApprentice. We have includedseveral items related to thissubject that we hope will bei n f o rmative and enable you totake this forward should youwish to do so. We arepassionate about the needs ofbusinesses for qualifiedbookkeepers and payrollprofessionals and by workingtogether (IAB, Colleges/training

providers and employers), we now have ano p p o rtunity like never before to greatly increase thenumbers and quality of those fulfilling these roles orproviding these services to businesses.

You will have seen in the recent e-newsletter newsof new member benefits; in the next edition we shallc a r ry an article summarising the even broader rangeof benefits now available to both IAB and IAAPmembers.

With all good wishes,Malcolm Tro t t e r

IAB Chief Executive

IAB CONTACT DETA I L SSuite 30, 40 Churchill Square, Kings Hill, West Malling, Kent ME19 4YU,United Kingdom

U K : Telephone: 0844 330 3527 Fax 0844 330 3514I n t e rn a t i o n a l : Telephone +44 1732 897750 Fax +44 1732 897751Email: mail@iab.org.uk Website: www. i a b . o r g . u k

Key staff at IAB Head Office:Compliance and MembershipCompliance Manager: Kelly Lant 01732 897759k e l l y l @ i a b . o r g . u kFinance & Membership Administrator: Louise Scott 01732 897755l o u i s e s @ i a b . o r g . u k

Education & Member Serv i c e sCoordinator: Chris Wo o s t e r 01732 897753 c h r i s w @ i a b . o r g . u kEducation Administrator: Thomas Bird 01732 897752 t h o m a s b @ i a b . o r g . u kCentre Support Off i c e r : Ray Wilkinson 01732 897754 rayw@iab.org.uk

The IAB AGM, which took place on Thursday 2nd June,was well attended and we are delighted to announcethat Lyn Eames, Penny Randall and Yvonne Strawbridgewere re-elected to the IAB Council. We also welcomedthree new members to the Council: Sue Renaut, JaneTurley and Jila White.

Michael O’Brien, a Vice-President and form e rC h a i rman of the IAB Council, stood down from Council,due to the fact that he had served the maximum termallowed in accordance with the Articles and Bye-Laws.After the business of the AGM was concluded, Michaelwas presented with an engraved plaque by FabianHamilton MP to commemorate his dedicated service tothe IAB (see photograph). Michael and his wife Linda were then taken to lunch atThe Ivy restaurant as a further gesture of thanks. A second presentation was also

made to Viv Burrows, to acknowledge her service to theIAB and its members, and all wished her a long andhappy retirement. Viv will continue to provide support tothe IAB on an occasional basis and we are grateful forher continued involvement. Kelly Lant has beenappointed and will take on responsibility for Complianceand Member Support, with Mary-Anne Cook nowaddressing the on-going task of extending memberb e n e f i t s .

At the subsequent meeting of Council, Clive Johnsonstood down as Chairman. He offered his best wishes fora successful term of office to Janet Jack, who takes on therole with immediate effect, to be supported by Penny

Randall in the role of Vi c e - C h a i r. Chris Morris did not stand for re-election as Vi c e -C h a i rman due to other commitments and his recent election as a local councillor.

The IAB 2011 AGM and June Council Meeting

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We are delighted to announce that we have negotiated a brand new feeprotection arrangement with Abbey Tax Protection, the market leader in theprovision of fee protection insurance. Our members can now benefit from a cost-e ffective scheme that enables you to offer your clients the opportunity to join as e rvice that provides expert representation from an Abbey Tax Consultant in theevent HMRC inquires into their tax affairs. We’ve negotiated very competitivepremiums on behalf of IAB members for extensive cover, so you’ll benefit from

outstanding fee protection. Put simply, if you only have one client who wishes tosubscribe to the service then you only have to pay to protect that one client. It is,h o w e v e r, a requirement that all your clients are offered the opportunity ofsubscribing. Abbey Tax Investigations Team members are all ex-Revenue Tax andVAT Inspectors and have experience of thousands of investigations, so your clientwill get a thorough and professional defence. Who better to defend your client?

Tax & VAT HelplineIn addition, we’ve also negotiated a big discount for IAB members who would liketo subscribe to the expert Tax & VAT Helpline provided by Abbey Tax. Abbey’sadvice line handle over 30,000 calls every year on a range of Tax & VAT issuesand IAB members can subscribe at reduced rates to this expert serv i c e .

To find out more or to apply for either of these services please call Abbey Tax on0870 166 6270 or email marketing@abbeytax.co.uk to speak to an expertconsultant.

New fee protection schemelaunched for IAB members

F a b i a npushes thep e d d l e sfor charityOnce again our President, FabianHamilton MP, is taking to the saddle toraise money for charity, cycling toAmsterdam to raise money for StG e m m a ’s Hospice in Leeds. He willbe leaving London on July 14th andwill arrive in Amsterdam four daysl a t e r. You can help him to help StG e m m a ’s by donating generouslyonline at www. j u s t g i v i n g . c o m / F a b i a n -H a m i l t o n M P, or send a cheque to:Fabian Hamilton MP, St Gemma’sBike Ride, 335 Roundhay Road,Leeds LS8 4HT.

Meet Janet Jack, new IAB chairJanet Jack FIAB has been a Member of theIAB since 2003, upgrading to Fellowearlier this year. Here she tells members alittle bit about herself

I first started bookkeeping for my own businesses. After I soldthem I took a few months off. One day I saw an advert for abookkeeper to work one day a week and it all went fromthere. I ended up being a self-employed bookkeeper for thecompany and within months I had about 12 clients, keepingme busy full time.

In 2000 I moved to Essex, bringing three of my existingclients with me (I still do their accounts to this day). To getmore clients I put an advert in the local post office and wasinundated with new clients; after a couple of years I decidedto take on an employee and get some offices, and from there

it went from strength to strength. The workforce grew and oneof my employees, Jane Tu r l e y, is now my business part n e r,and has been for the past four years.

We now employee two bookkeepers and we have twohighly qualified accountants who freelance for us, but committo us two days a week each and, of course, Jane and I workfull time. Our client base has now risen to in excess of 150clients. During this time I have also carried on studying andgaining more qualifications. Our practice has just gonelimited and is growing each year.

In 2009, I became a member of IAB council and havebeen involved in a number of working groups and subcommittees. I am really pleased to take on the role ofChairperson and look forward to working with the IAB teamover the coming months to ensure the future of the IAB as oneof the leading professional bodies in the UK.

accountingcpd.net is about to launch a major new seriesof courses based on IFA C ’s widely praised Guide toPractice Management for Small and Medium SizedPractices. The first two courses, Planning for your Firm andPractice Models and Networks, will be available thismonth and a further two courses will be released in theAutumn. More will follow next year. Each course providesfour hours of CPD.

“The courses provide structured help for people to digestthe ideas in the Guide and put them into practice,” saidAlan Nelson, Nelson Croom Founder and ManagingD i r e c t o r. “The provision of high-quality professionaldevelopment material on practice management topics canmake a real difference to the development of theprofession around the world.”

The courses follow accountingcpd.net publisher NelsonC r o o m ’s ground-breaking approach to professionaldevelopment, engaging users by encouraging them toshare their ideas with each other and to develop a planspecific to their practice. Users gain an in-depthunderstanding of the models and concepts as well as adetailed implementation plan. Currently Elearn i n gDevelopment Company of the Ye a r, Nelson Croom citesits focus on creating personalized learning resources as thereason for its success.

These courses will be available directly througha c c o u n t i n g c p d . n e t .

Nelson Croom has obtained permission from IFAC foruse of the Practice Management Guide for the purposes ofdeveloping these courses.

New courses launched

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IABUPDATE

In September 2010, the IAB successfully launched its new range of QCFqualifications and had its first standard sitting for all level 1 and 2 examinations inBookkeeping, Computerised Bookkeeping and Payroll in January 2011.

We are frequently asked why we have changed to this new system ofqualifications, as most people were perfectly content with the previous versions ofthe IAB qualifications. The answer is that the new Framework is a govern m e n t - l e dinitiative, across all occupational sectors, and should generally simplify the waythat the qualification system works in England, Wales and Nort h e rn Ireland. Thisshould be achieved through:• ensuring a wider range of achievements can be recognised within a moreinclusive qualifications framework – once a unit is completed it does not have to berepeated if it exists within another QCF qualification at the same level.

• establishing a qualifications system that is more responsive to individual andemployer needs – all IAB QCF qualifications are based on the NationalOccupational Standards in accountancy and payroll, produced in 2010. • establishing a simpler qualifications framework that is easier for all users tounderstand – the qualifications are based on credit values with three possible titles:awards (1 to 12 credits), certificates (13 to 36 credits) and diplomas (37 creditsor more). • reducing the burden of bureaucracy in the accreditation and assessment ofq u a l i f i c a t i o n s .

For more information on the individual IAB QCF qualifications go to the IABwebsite www.iab.org.uk and search for QCF Qualification Specifications withinthe section on Qualifications and Examinations.

The new Qualification and Credit Framework(QCF) range of IAB qualifications

For the first time, from May 2011 Apprenticeships in Bookkeeping will go live. Inaddition, a revised Payroll Apprenticeship will be implemented on the same dayand the Skills Funding Agency has confirmed funding to start on that date.

The Bookkeeping Apprenticeships have been devised in response to anevident need for these skills in smaller and micro businesses. Malcolm Tr o t t e r, IABChief Executive, commented: “Based on feedback from employers and businessowners, we have long maintained that there is a real need to train morebookkeepers, and the new apprenticeships are an excellent development to helpaddress this.”

Working with the Financial Skills Partnership (the Sector Skills Council) andother awarding bodies, the IAB has played a leading role in the creation of theseapprenticeships and has component qualifications immediately available asf o l l o w s :A p p r e n t i c e s h i p IAB Qualification includedLevel 2 Apprenticeship in Bookkeeping Level 2 Certificate in BookkeepingLevel 3 Apprenticeship in Bookkeeping Level 3 Certificate in BookkeepingLevel 2 Apprenticeship in Payroll Level 2 Certificate in PayrollLevel 3 Apprenticeship in Payroll Level 3 Certificate in Payroll

Additional Apprenticeship requirements include:• Completion of Functional Skills or Key Skills.• P LTS – covered within the core qualification.• Completion of the Apprentice Work Book.

The Apprenticeship Frameworks for Payroll and Bookkeeping and therespective Work Books can be found by accessing the Apprenticeship section ofthe Financial Services Partnership (formerly Financial Services Skills Council)w e b s i t e .

New apprenticeships in bookkeeping and payro l l

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Registering for retired statusIf you have retired from the profession since you last renewed your IAB membershipthen you will need to notify the Association if you want to pay the appropriatereduced subscription.

To qualify for retired status you must be in receipt of either a state or privatepension and be working no more than two-and-a-half days a week

Although subscription renewal forms are not due out for a number of months, it isa good idea to notify us of your change of status in advance. Retired membersneed to write to us by the end of September, as this way we can make sure thatthat the correct subscription notices are sent out.

For further information, or to inform us of your wish to be considered as retired,please email louises@iab.org.uk or telephone 01732 897750.

With the creation of Bookkeeping Apprenticeships (in addition to PayrollApprenticeships), there is now the opportunity for you to take on someone to workwith you – and this need not be a prohibitive cost. The current minimum wage,specifically applicable to Apprentices, is £2.50 an hour. Apprentices need not befull-time, and could be employed for as little as £40 per week where employed forjust the minimum 16 hours per week. Training costs are funded by government soshould not be seen as a barrier.

If you or your business is interested in recruiting an apprentice this can beachieved in several ways. You may simply recruit an eligible employee through ausual recruitment method. The government has committed a significant budget tofunding apprenticeships, particularly for those aged 16-18 but also ‘adult’

apprentices, so age need not make someone automatically ineligible. There areseveral agencies that may also be able to assist as follows:• The National Apprenticeship Service (NAS) – www.apprenticeships.org.uk. TheNAS provides lots of information and a type of ‘matching service’ of employerswith potential apprentices via its website.• The Connexions Direct Service – tel: 080800 13219 or w w w.connextions-direct.com. Connexions provides careers and employmentadvices and assists young people to find apprenticeships.• Next Step – tel 0800 100900 or www. n e x t s t e p . d i r e c t . g o v.uk. Next Step is as e rvice assisting those 19 or over to find employment, including apprenticeships.See the story below to see how the IAB can help you find an apprentice

Should your business be takingon a Bookkeeping Apprentice?

Use the assistance of the IABThe IAB can connect businesses with those Accredited Centres in theirareas/regions that are either already offering or could offer Apprenticeshiptraining for any eligible employees, or indeed supply a potential apprenticerecruit for you. Colleges and other apprenticeship providers often face thechallenging task of finding employers to take on those seeking to become

apprentices, so are likely to welcome any enquiries from you. For example,Ay l e s b u ry College in Buckinghamshire has indicated that it is keen to off e rBookkeeping Apprenticeship training and would welcome enquiries from IABmembers in its region looking for apprentices. Please contact either RayWilkinson or Mary-Anne Cook in the IAB office; they can advise you of the IABcentres in your area/region.

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It is more than 40 years since the first regulations were enacted relating to theamount of space required in offices. The regulations in the Offices Shops andRailway Premises Act have been modified by more recent legislation (TheWorkplace Heath and Safety Regulations), but the fundamental points remain.Each employee requires a certain minimum space and, in calculating that space,there are two main points to take into account:1 ) Space is calculated on a cubic capacity, but you can only count height up to4.2 metres. Also, if you have any permanent furniture occupying floor space thenthat must be subtracted from the base area. So if, for example, you had arectangular office with measurements of 5m x 4m this would give you floor areaof 20 square metres. However, if you had a built in cupboard measuring 1.6m x 0.5 metres you would need to deduct 0.8 square metres from your floorarea. The problem arises in defining ‘permanent’ furniture. It would appear thatchairs are not permanent, while built-in cupboards definitely are. But it is not clearwhether filing cabinets, desks and free standing cupboards are included or not.Most inspectors take the line that if these are kept in the same place throughoutthe year they classify as ‘permanent’, and this can radically alter the amount offloor space.2 ) Casual workers as employees. Where you have an office, for example, in acollege and as a general rule half the staff using the office will be in a classroom,then you will need less space. The problem arises when there are administrationweeks and all staff members wants to use the office, as this may mean you areovercrowded. The legislation requires a minimum of 11 cubic metres for eachemployee. So if you have a ceiling height of 4.2 metres (14ft) you would need2.62 square metres per person. However, if the ceiling was only 8ft (as in mostm o d e rn offices) then you would need 4.5 square metres.

L e t ’s use an example: you have an office which measures 8m x 5m. Theceiling height is 2.75 metres and the permanent furniture occupies four squaremetres – this would be sufficient for nine people. However, if the Inspector

decides that the desks were permanent and each desk occupied 1 square metre,then you would reduce the number of workers to seven, as each has a desk. Inthe average small office for those working from home the room used is normally asmall bedroom with a height of 2.4 metres and an area of 4m x 3m. You have acubic capacity if the room is empty of 28.8 cubic metres, or only enough spacefor two people.

The next point is that everyone working in the office must have access to theexit so that they can evacuate the building, In general, it is felt that all passagesshould be a minimum width of 0.6 metres unobstructed by either furniture orb o x e s .

Another point is that there must be adequate ventilation, which if you are in ano ffice with no windows then the ventilation must provide a through flow of fresha i r.

F i n a l l y, the light must be adequate for the work done, and in particular wheredisplay screens are in use there must be no reflected glare of the screens.3 ) Working at height does not normally apply to an office situation but may arisewhen light bulbs need changing – particularly if it is an older office with highceilings. Too often people climb on desks or, worse, climb on chairs balanced ondesks to reach and change a light bulb. This type of reaching for height doesbreach the regulations. While it is not expected that scaffold towers will be used,a step ladder should be used and someone should steady it while another personclimbs to change the bulb. It is also essential that the light is switched off beforedoing this to minimise the risk of shock.

Other articles on Health and Safety matters will appear in later issues of IABUpdate. If there is any topics you would like covered please let the IAB know.

Details of a number of related issues can be found at www.chip-fast as freed o w n l o a d s .• The IAB wishes to thank Chip-Fast Ltd for providing this article and for itscollaborative support of the IAB

IABUPDATE

Working space andworking at height: be safe

STUDY TEXT BOOKSIAB study text books are available, covering the QCF bookkeeping range of qualifications as well as the 2008-2010 accredited

qualifications. Written by IAB examiners, especially for learners working towards IAB qualifications, they cover the entire syllabus andfeature worked examples, sample questions and answers. They are an invaluable part of the study process.The costs of these study texts have been kept to a minimum, and prices shown are for a UK delivery address

and include post and packing.If you don’t want to miss out, complete the order form below and return it to the IAB by post, fax or email louises@iab.org.uk

I would like to pay by: ■ Debit/Credit Card ■ Cheque (made payable to IAB)

Please charge : £. . . . . . . . . . . . . . . ■ Vi s a ■ M a s t e r C a r d ■ M a e s t r o / S o l o / E l e c t r o n

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E x p i ry Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . S t a rt Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(if applicable)

3 Digit Security No . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Issue No . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(if applicable)

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P o s t c o d e : . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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I t e m Q u a n t i t y P r i c e To t a lN E WIAB Level 1 Award in Bookkeeping QCF £ 2 5 . 0 0N E WIAB Level 1 Award in Manual Bookkeeping QCF £ 2 5 . 0 0

NEW IAB Level 2 Certificate in Bookkeeping QCF £ 3 0 . 0 0

N E WIAB Level 2 Award in Manual Bookkeeping QCF £ 3 0 . 0 0N E WI A B Level 3 Certificate in Bookkeeping QCF £ 3 0 . 0 0N E WIAB Level 3 Certificate in Manual Bookkeeping QCFIAB level 4 Diploma in Accounting to International Standards* £ 2 5 . 0 0

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Upgrade to Special Delivery per book (this only guarantees delivery, not faster despatch) £ 4 . 0 0

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*Original 2008-2010 Accredited Qualification Book

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upgrade does not guarantee next day delivery, only the guaranteed delivery or replacement as outlined above.

IAB Qualifications for Business is a trading name of the International Association of Book-keepersCompany registration no: 1119378 (England) Limited (by guarantee)

Suite 30, 40 Churchill Square, Kings Hill, West Malling, Kent ME19 4YUTe l e p h o n e 0844 330 3527 F a x 0844 330 3514 E m a i l louises@iab.org.uk We b s i t e w w w. i a b . o r g . u k