Sarah

I am thinking of becoming a freelance bookkeeper (not in practice), to work at customers' premises. I was wondering if it is necessary to take out Professional Indemnity Insurance? I understand this would be necessary as a Member in Practice, which I am not, but is it still required if you set up as a freelance bookkeeper? Thanks.

Answers

  • MarieNoelle
    MarieNoelle Trusted Regular Hampshire/Surrey borderModerator, MAAT, AAT Licensed Accountant Posts: 1,433
    edited March 2016
    If you are a freelance bookkeeper I think you would fall under the AAT MIP scheme.
    Maybe you could give us a bit more info on the set up, i.e. will you be working for another accountant as a subcontractor or directly with clients?
  • phoenixd
    phoenixd LondonRegistered Posts: 55
    edited March 2016
    Hi Sarah, this is a grey area though AAT can argue that a freelance bookkeeper is effectively 'in practice' even if only offering bookkeeping services. Thinking about it, I'm guessing you will need a regulator/supervisory body for money laundering purposes and AAT won't do it without indemnity insurance, so in a way, that answers the original question. I stand corrected.
  • scjones
    scjones Registered Posts: 2
    Thank you very much for your comments. Much appreciated. As advised, I have just spoken with the AAT, and they confirm that, although it is just bookkeeping services (with no advice given) I intend to provide, I would have to register as a MIP and take out Professional Indemnity Insurance. Thank you to mrme89 in saying that PII is vital when being self-employed, even if I weren't a member of the AAT.
    Thank you for all your feedback.
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