We brought together the brightest minds in the education sector for a jam-packed morning of updates, insights, and straight-talking advice. No jargon. No waffle. Just what you need to know to keep your trust compliant, confident, and ahead of the curve.
Hosted by CP’s Kevin Hodgetts, here’s the lowdown from the day.
Financial & Regulatory Update – Andy Jones
Andy wore a few hats, not literally sadly, to walk us through the latest from the 2024-25 Academies Accounts Direction (AAD). New DFE Good Practice Guides and guidance along with the new Charities Statement of Recommended Practice (SORP) as there are potential implications for academy trusts on the way.
What’s New?
- Leases: From September 2024, you can enter into certain finance leases. Think IT, gym kit, minibuses. Just make sure you’ve identified them and disclosed them properly.
- Sustainability Reporting: If you’re a big trust (500+ staff, £500m+ income), ESG reporting is now on your radar. Transparency is the name of the game.
- Internal Scrutiny: If you’re over £50m income, some internal audit requirements aren’t a “should” anymore. They’re a “must” from Sept 2025.
- Cyber Security: The DfE is turning up the heat. You need to be on top of their standard. And your auditors will be checking.
Trustees’ Reports: Ditch the Boilerplate
Make it real. Make it relevant. And please, no more tables for the sake of tables. Trustees need to know and understand their responsibilities and what they are signing.
Andy unpacked a wealth of detail from the regulations impacting academy trusts, drawing on his deep sector knowledge and years of hands-on experience. If you weren’t in the room, you missed out. But it’s not too late. Reach out to Andy to explore what these changes mean for your trust and how he and the team can help you stay compliant and confident.
Employment Tax Update – Sarah Pemberton
Sarah broke down the big shift in how benefits are taxed and what it means for your academy trust.
Say hello to payrolling of benefits
- Say Goodbye to P11Ds
- Real-Time Tax: Benefits now go through payroll. No more year-end surprises.
- NICs Paid Sooner: Good for HMRC’s cash flow. Less so for yours.
- PSAs & Compliance: Get your house in order. Know where your benefit data lives. And don’t over-report what you don’t need to.
IR35 and Off-Payroll Workers
- If you’re using contractors, especially PSCs, you need to assess their status.
- Review all off-payroll engagements, particularly high-risk leadership roles and ex-employees re-engaged as consultants.
- Use HMRC’s CEST tool. Keep records.
- Train your budget holders and hiring managers.
Salary Sacrifice Schemes
- Pensions: NIC savings for everyone if you have an eligible scheme. Win-win, so worth looking into if your pension scheme qualifies.
- Electric Vehicles: Still a tax-efficient perk for employees and employers, but benefit in kind rates are creeping up over the next five years. You now need approval from ESFA for new schemes or adding new employees to an existing scheme.
Sarah cut through the complexity of employment tax changes with clarity and practical insight. From payrolling benefits to off-payroll working and salary sacrifice schemes, she covered what matters. And what’s coming. If you’re unsure how these updates affect your trust, or want to make sure your processes are watertight, get in touch with Sarah to talk it through.
Year-End Themes & Lessons Learned – Glen Bott
Glen gave us the inside scoop on what the Education & Skills Funding Agency (ESFA) has been picking up. And where trusts are still tripping up.
Audit & Regularity Reports
- Qualified Opinions: Mostly down to Local Government Pension Scheme (LGPS) valuations. Not much you can do there.
- Modified Regularity Reports: This is where you can make a difference. Issues such as:
- No management accounts
- Poor internal controls
- Related party transactions not properly handled
Fixable Stuff
- Get your audit & risk committee doing more than ticking boxes.
- Make sure management accounts are complete, timely, and shared.
- Internal scrutiny isn’t optional. And it’s not just about finance. Non-financial risks matter too.
Panel Case Studies: Real Trusts. Real Challenges
We tackled some juicy real-world scenarios:
- A trust facing a Notice to Improve after governance issues.
- A severance package gone rogue. Approved by the CEO alone.
- A multi-academy trust under financial pressure, looking to streamline.
- A trust that thought it was doing management accounts right. But wasn’t.
- A due diligence fail that led to onboarding a school with hidden financial issues.
The takeaway? Governance, transparency, and due diligence aren’t just buzzwords. They’re your safety net.
Final Thoughts
The session wrapped with a lively Q&A chaired by Kevin. Attendees put the speakers on the spot with real-world challenges and hot-button issues. It was one of those “you had to be there” moments. Topical, practical, and packed with insight you won’t find in a slide deck.
The world of academy trusts is changing. Fast. But with the right insight, the right people, and a proactive mindset, you can stay ahead of the curve. And avoid the pitfalls.
We’re here to help you do just that. Get in touch if you fancy a chat over coffee. Or tea.
