Accounts Code from 30 September 2020

A revised accounts code will be coming into effect 30 September 2020

The new code will contain simpler, more targeted requirements to make the code easier to understand, improving compliance and consumer protection.

The main changes are in relation to how to deal with aged balances up to £50 and to allow the use of third-party managed accounts (TPMAs).

CLC practices will no longer need the CLC’s authorisation to pay aged balances under £50 out of the client account.

CLC firms will only be able to use TPMAs regulated by the Financial Conduct Authority, and firms must also be authorised by the CLC to enter arrangements with a client to use a TPMA.

The changes will also see the introduction of a simplified Accountants Report.

You can see the revised code here

See the forthcoming aged balance guidance here. Minor amendments have been made to this guidance since it was first uploaded. To see what has changed please click here

The Aged Balances self-certification form and the reporting form are now available. If the balance is not exceeding £50 (ie £50 or less) then the self-reporting form is to be used.  If the balance exceeds £50, the reporting form is to be used to seek authorisation. These forms should be used for all aged balances from 30 September 2020, regardless of when they were accrued.

View the TPMA guidance here

And look at the Accountants Report and Guidance here. Do remember to make sure the new report is made available to your practice’s accountants.

We recently hosted a webinar to explore the changes. If you missed it or want to see it again you can watch a recording via this link (registration required).

As further support is produced it will be published on this page.

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