Morning,
I'm looking to expand my knowledge and given the recent promotional material from the ICAEW stating that we may now take on probate work (once we have completed their exam) I figured that seemed an attractive option.
Looking further into it I'm interested in a more in-depth and fully rounded knowledge than simply learning to test for ICAEW and so am looking at STEP.
The entry procedures have recently changed (per their website) and apologies but I don't know the previous requirements. Google tells me that the "average" pass rate is 60-70% which is encouraging.
To give some background I'm a small practitioner with a couple of members of staff; I like to offer a rounded service to Clients incl. Tax/Uni Credit and the regular compliance work an accountant may do. At the moment, estate planning is where we fall down.
However, I'm hoping a couple of members that have taken the "step" can tell me:
- Would you advise sitting all 4 papers at once?
- How does the technical requirement compare to CTA? (I did IND & OMB)
- Do you feel it was worthwhile?
- My understanding of trusts is limited; I know what they are and an ok understanding of how they are taxed. Would you suggest this is an area which I should not enter into?
Cheers!
Replies (14)
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Patience
I can see they're popular then. =(
Based on a 3 hour, 24 minute wait? You'd be a nightmare client!
Sounds like good idea to me, but got no experience of the subject or of STEP.
Trusts
My experience of trusts has been bad to the point that I refuse to have anything at all to do with them.
Generally works (or doesn't more accurately) as follows:-
1. Firm of expensive advisors, usually solicitors but often specialists sell the use of a trust to client on the basis of massive tax savings and other benefits.
2. Expensive advisors set up trusts and charge their hefty fees.
3. Expensive advisors have no interest in the piddling crap compliance work so no one files the required tax returns.
4. Client has no idea what is going on & what they should be doing therefore usually manages to create tax liabilities by drawing money out of the trust.
5. HMRC gets round to enquiring, then raises assessments for the tax liabilities, late filing & payment penalties etc.
6. Expensive advisors long since washed their hands of it so the whole lot gets dumped with you, the accountant who probably advised against doing this in the first place.
4 Papers?
Why do 4 papers, when you can do only 1? See http://www.cltint.com/stepdiplomaatp
TEP
The other option is to use the qualified practitioner route to STEP qualification: three thesis papers over four years on a mixture of topics (generally one tax technical, one regulatory, and one on international or legal aspects).
I have found this an invaluable qualification - but I do specialise in trust taxation and IHT, and I wouldn't necessarily recommend this unless you expect to be doing a lot of this type of work (including - in your case - probate). Membership fees are around £240 pa (currently), and the cost per paper was (from memory) about £200, but spread over the period you take them.
As for the 'don't touch trusts' comment above, yes: there are some cowboys out there (still are) who have been selling "remuneration trusts" and "creditor protection trusts" etc - the usual rule applies - if it looks too good to be true, then it usually is.
However, there are vast numbers of ordinary folks who have small (or even large!) family trusts which were set up to hold life policies, by grandparents for grandkids, for asset protection from divorce, vulnerable kids getting their hands on money too early, etc, etc, and there is a great deal of good paying work to be done in preparing accounts, tax compliance, and advisory work for such clients.
I'm definitely a 'yes' vote on STEP - excellent Institute, worthwhile content available, regular guidance notes on complex issues, and it is certainly a prestigious qualification. Hope that helps.
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I did STEP and I felt it was worthwhile. After I did CTA I felt that I was missing out on the world of trusts and whilst trusts can be an absolute nightmare if managed as Roland195 suggests (and I agree with him to an extent) I feel that a lot of the time you can not give full advice without at least considering the use of trusts as they can be invaluable in the right situation. I did one exam to dip my toe in the water and then did three at once. I was deemed a bit of a maverick because as far as I know nobody had done three at once before. Most folk do one or two at a time. It's not quite as difficult as CTA
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I could have went for the other route, but thought I would needed the knowledge that the four exams offered.