For Irish trainee accountants, it's all about location

Q&A: I am a trainee chartered accountant based in the Republic working my way through qualification at my own cost. I recently received notification from Chartered Accounts Ireland that student fees are to rise 4 per cent for the coming year. That is bad enough but, because I live in the Republic, my fees are automatically levied in euro.

According to the fees schedule, were I to live in Northern Ireland – and pay in sterling – I would save a significant amount of money.

When retailers north of the Border charged Irish customers way more than the exchange rate, there was an outcry. Here, we have an Irish professional body charging a premium to its students south of the Border and, as we need to pass our exams, we dare not complain openly. How fair is that?

Mr AN, email

I’ve no doubt Chartered Accountants Ireland would be horrified at the thought they would mark students up or down based on a dispute or otherwise between them.

I can see why you might be disgruntled. The fee for Chartered Accountancy Proficiency Level 1 is €2,100 or £1,450. As you point out, at an exchange rate of about 80 cent to the pound, you would expect the course in the Republic to be priced at just over €1,800, which means you are paying a “premium” of 13 per cent for the privilege of pursuing your course in the Republic.

For their part, Chartered Accountants Ireland makes several points. First, they have not raised fees in three years. They point to Central Statistics Office data showing a 9.4 per cent rise in education costs in the year to February last.

It’s true costs may be rising now, but they surely fell at some point in recent years, and yet fees did not come down. The fact the majority of students are sponsored through their training by accountancy firms may have some part to play in the recent decision.

Second, Chartered Accountants Ireland points to currency fluctuations. This is true, of course. However, to justify the difference between the rates, you would be looking at an exchange rate closer to 69 cent in the pound, which seems more than a little far fetched.

Finally, CAI notes the costs involved in running courses in the Republic is higher than in the North. I haven’t got any figures to hand but I am sure this is the case. Ultimately, however, it is not a matter of Northern students being given a dig out to study alongside their southern counterparts. Which fee one pays is determined by the location of the practice sponsoring you or, in the case of privately funded students, where they intend to practice.

With differences between accountancy rules and practice here and in the UK, the CAI says, the location of the tutelage determines the fee. Thus, if you were looking to practice in the UK – and were therefore studying up North, you could avail of the lower fee. Any Northern students sitting alongside you in the Republic will be paying the higher fee, it appears.

Arrears for five years of unclaimed pension payments

At age 71, I discovered I was entitled to an old-age pension. I applied, and the pension was granted. However, I was refused the arrears that had accumulated. I receive 18 months in settlement out of the five-plus years due. Is this correct? If not, how do I appeal?

Mr T McC, email

You don’t state whether you are in receipt of a contributory or noncontributory State pension, but it appears to me that you did quite well.

The Department of Social Protection states very clearly on all its documentation and websites about its pension provision that you should apply about three months ahead of the date you are likely to be eligible. They also warn expressly that you can lose money with late applications, especially those applying more than six months after the due date.

The department says it “may” backdate pensions for six months if you have a ”valid” reason for the delay. Beyond that, you are relying on an appeal on the basis of “exceptional circumstances”. These are listed on its website and include failure to apply because:

you were given incorrect information by a staff member of the department;

you were so incapacitated that you were unable to make a claim, or get someone to do it for you;

you were subject to “force majeure” – ie extreme events or actions;

or you are experiencing financial problems.

As financial problems are fairly endemic at the moment, I think you can take it that these would need to be pretty acute to qualify under the last category.

On the basis of the very limited detail you have supplied me in your letter, I do not see where you will have grounds for such an appeal. It appears you simply did not realise you were entitled to a pension for some years after retirement. In any case, in backdating 18 months, the Department has already gone well beyond the standard backdating limit. If you feel you are entitled to further backdating, you need to apply to Social Welfare Services, Department of Social Protection, College Road, Sligo. It should be addressed either to the State Pension (Contributory) Section or the State Pension (Non-Contributory) Section, depending on which is relevant.

Any application will have to outline the details of your circumstances for the appeal and any supporting documentation.

This column is a reader service and is not intended to replace professional advice. Please send your questions to QA, c/o Dominic Coyle, The Irish Times, 24-28 Tara Street, Dublin 2, or to dcoyle@irishtimes.com. No personal correspondence will be entered into.