AAT + ACCA

Adam144

Hello everyone

If I am AAT qualified and just starting ACCA, can I apply for the AAT licence and trade as self-employed? Or is it then restricted because I've chosen to continue on studying ACCA? I have got 4 years relevant experience in practice, so I am not sure if you can trade under AAT licence, while studying ACCA? Does anybody know?

BAccounting

Hi Adam144,

ACCA do not like their students offering accountancy and bookkeeping services. The information is in the ACCA handbook but briefly they will allow you to do basic bookkeeping jobs for your clients providing you are not making management decisions. VAT returns can be prepared but this has to be as a result of doing the basic bookkeeping and must be generated from the accounting package. This would exclude you from doing the more complicated VAT schemes such as Partial Exemption, Marginal VAT etc.

After qualifying with ACCA, you will need to apply for an ACCA practice certificate. This would involve post qualification experience and more forms to complete. My understanding of this process is quite difficult and they don't make the process easy for the applicants.

If you are serious about starting up a practice you will need to make the decision as to whether you put it on hold and go the ACCA route of do not apply for ACCA and become an AAT licenced member. The only real difference would be that as an AAT member you can't offer auditing services.

Hope that helps.

reader

BAccounting said:

Hi Adam144,

The only real difference would be that as an AAT member you can't offer auditing services.

Hope that helps.

I would slightly disagree with this statement.

This is because many ACCA practising certificate holders cannot do audit as they do not have an audit practising certificate (they only have one for accounts and tax).

Consequently I would say the only major difference would be that with AAT potentially some of your clients may get the loan/mortgage application rejected if the lender does not accept an AAT member as a qualified accountant. Also, some clients are adamant that they only want an ACCA chartered member preparing their accounts and tax returns.

Adam144

I was wondering about doing just simple self-assessment tax returns for small clients. I am also employed within Accountancy practice, and was thinking of continuing the studies with ACCA, but this seems a bit ridiculous that I can't even do tax returns even though AAT allows me to do it.

BAccounting

Adam144 said:

seems a bit ridiculous that I can't even do tax returns even though AAT allows me to do it.

That's ACCA for you.

You might also need to check your employment contract that you're not breaching any anti competition clauses.

reader

Adam144 said:

I was wondering about doing just simple self-assessment tax returns for small clients. I am also employed within Accountancy practice, and was thinking of continuing the studies with ACCA, but this seems a bit ridiculous that I can't even do tax returns even though AAT allows me to do it.

For me anyway, it makes sense, i.e. the ACCA doesn't want to let its students loose on the public.

I believe the ACCA recently fined someone around £25k for various reasons (including not having an ACCA practising certificate):
http://www.accaglobal.com/content/dam/ACCA_Global/Members/news/2018/January/Post News Release - Martin.pdf

Adam144

reader said:

Adam144 said:

I was wondering about doing just simple self-assessment tax returns for small clients. I am also employed within Accountancy practice, and was thinking of continuing the studies with ACCA, but this seems a bit ridiculous that I can't even do tax returns even though AAT allows me to do it.

For me anyway, it makes sense, i.e. the ACCA doesn't want to let its students loose on the public.

I believe the ACCA recently fined someone around £25k for various reasons (including not having an ACCA practising certificate):
http://www.accaglobal.com/content/dam/ACCA_Global/Members/news/2018/January/Post News Release - Martin.pdf

Maybe it does, maybe it doesnt, for me it doesnt that AAT allows you to do basics, whereas ACCA doesnt. Especially when you can prove that you have got the relevant experience before you start working as self-employed. Well, I now need to think whether to stop at AAT, apply for licence and do extra work as self-employed, or continue with ACCA without having my own practice in the meantime.