Ltd Co Accounts

EdziaEdzia Just JoinedPosts: 2Registered
I have recently been asked to do small Ltd co accounts (sales circa 2m, 6 employees). I have a full time job as an accountant and have never worked as self employed before. This would be my only client. I have a few questions regarding best way of doing it. I understand that I don't have to be registered as MIP if I have only one client. What would be the benefits of registering though? Could I still do the year end stats, if I'm not MIP?
I am also aware that their current accountants do their yearly audit and corp tax. I'm not quite sure why they need to be audited, being a small company, but I know I cannot do the audit. What about corporation tax? Would it have to be done by someone else who is specilizing in tax, or could I do it myself. I would greatly appreciate comments from members who deal with Ltd companies, as I'm a bit cofused, and don't know what to do. On one hand I'm really keen to take on this client, but on the other hand I'm a bit worried I won't be able to provide services their current accountants do. Please help. What would you do?

Comments

  • burgburg Experienced Mentor GloucesterPosts: 1,440Moderator, FMAAT, AAT Licensed Accountant
    Firstly from the information given it does not seem that they require an audit but may decide to have one. Does the client just call it an audit when really it is the year end accounts?

    The rules on being an MIP can be found here http://www.aat.org.uk/content/item1769/

    Basically your total fees would need to be less than £1000 to be exempt.

    As for the Corporation Tax Computation. Have you done these before? Are you confident in your ability to perform them?

    Nobody can really decide if you are capable of taking on the work only you yourself. If you have the knowledge, experience and confidence to deal with the arising matters then it may be the option for you.

    I think the main thing is do you think the client would be happy with the service you could provide. If you are working beyond your scope then it is certainly not a good idea to take it on.

    Best of luck
    Regards,

    Burg
  • BloaterBloater Settling In Nicely Posts: 19Registered
    Accounts and CT

    You can do self employed type work if your fee income is below a certain threshold (£1000 last time I looked) otherwise you must be registered as an MIP. However, you should still have PII in place

    Many ltd co clients think that their accounts are audited annually when they just go to the accountants for processing of the actual accounts. As you said, there is no need for an audit given the turnover and number of employees stated. Might be worth probing a bit further with the potential clients and inspecting the accounts to see if they contain an audit report.

    As with everything that could fall under an MIP's remit, you could process the corporation tax yourself, but only if you are suitably experienced and competent. Otherwise, you could contact a local MIP who could check over your figures, though they would probably expect something in return.

    Cheers
  • NeilHNeilH Trusted Regular Posts: 547Registered
    Hi

    Final/statutor accounts and Corp Tax can be done by anyone, regardless of their qualification - even if they dont have one! However, to more or less rpeat what others have said, it is really down to your personal ability.

    Neil
  • EdziaEdzia Just Joined Posts: 2Registered
    Thank you for your replies. I've had a look at the accounts, and they are audited indeed (audit and accountants being the same company). I'm wondering, maybe because this company is a subsidary of a PLC co in another European country.
  • burgburg Experienced Mentor GloucesterPosts: 1,440Moderator, FMAAT, AAT Licensed Accountant
    If that case then you can only do the accounts you cannot do the audit. You will need to express this to them as it may effect their decision.
    Regards,

    Burg
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