Self Employment @ Level 3

LauraAtkinson

Hi,

I have completed my Level 2 & 3 AAT, and have started my Certificate Level CIMA instead of doing my Level 4

I am currently employed Full Time in a Semi Senior Accounts role and have 7 years experience in working in accounts.

I am looking to leave the drag of the Corporate Office and start my own business working from a Home Office doing accounts and bookkeeping (and continue my study's in CIMA, so that I can work more with companies that are growing and need Management Accounting).

My question is really, what service would my AAT membership cover me for? IE: Will I only be covered for Bookeeping Services having only qualified up to Level 3.

I also have nearly completed my application for Full Membership due to experience (I think?)

I would love advice

Thanks in advance!

Laura X

burg

In respect of AAT I believe the rules are as follows. If you are a full member you must apply for member in practice status. If not then you can undertake work for which you deem yourself capable of undertaking. However, you must not mention the AAT in any form. It may also be more difficult to obtain professional indemnity insurance.

In my experience of running my own practice (part-time since 2005 and full time since 2009) there is a limited market for management accounts work. Ok we don't advertise for such work but the reason being you are usually expected onsite and the client usually wants you and therefore employing staff to provide support is more difficult. The demand for year end accounts/tax work is far more and we have new enquiries all the time.

In respect of this and if my understanding of your question is correct in that you need to complete the final year of AAT then this would be my advice. I completed AAT and went on to study ACCA. I completed the majority of this (had around 12-18 months left) before I decided to leave employment. I resigned from ACCA and just used my AAT qualification. This, along with practical experience of working in a practice for some years was plenty to be able to deal with the majority of small businesses and their accountancy and taxation needs.

If you feel your tax knowledge needs some improvement then look at doing ATT which will help you and your clients far more.

Best of luck.

NeilH

Hi

One other thing to be aware of is money laundering regulations (MLR). You'll need to be registered with a supervisory body, AAT is such a body but supervision only applies to full members. Therefore you would need to register with HMRC.

If you have only completed level 3 so far, you could consider one of the book-keeping bodies - ICB or IAB. You may be able to gain exemption from some of their levels and gain full membership and take advantage of their member in practice scheme (which might include MLR supervision)

Neil