Become self-employed (on the side of a full time job)

fedemenni

Hello all,

I have just finalised my AAT Professional level and I have couple of friends that would me to become their bookkeeper for their ltd companies and also submit their annual accounts/VAT returns.

I should be able to provide those services because professional level and level 3 teach how to prepare the accounts for ltd companies and sole traders/partnership and also how to prepare VAT returns.

Before I can provide those services I know that I need to become licensed so I would like to know if someone could help me with the following queries:

- Which steps shall I follow in order to start providing professional services (like registering with HMRC, insurance etc or even shall I set up a ltd company or stay as sole trader?)
- Where can I find a list of accounting softwares which will allow me to have multiple companies within it?
- What kind of fees shall I charge?
- Very important where can I find templates for contracts to have signed between me and possible clients?

Many thanks in advance

Neillaw

You will first need to become licensed before taking on any paid work.
A lot of the information your looking for is within the AAT website, AAT have a hook up for insurance with Trafalgar ins, all templates are on the website.
Software depends on your preference, I've gone with Xero as I have a mentor who connected to Sage so both are covered but this is dependant on the company requirement and budget.
How much should I charge (that old chestnut!)
It may be worth looking back through the threads to find a copy of Burg's analysis of what people charge as different rates charged on different jobs.
ie. Book-keeping £25.00 per hour
Accounts preparation £50.00 per hour
This is totally up to you.

fedemenni

> @Neillaw said:
> You will first need to become licensed before taking on any paid work.
> A lot of the information your looking for is within the AAT website, AAT have a hook up for insurance with Trafalgar ins, all templates are on the website.
> Software depends on your preference, I've gone with Xero as I have a mentor who connected to Sage so both are covered but this is dependant on the company requirement and budget.
> How much should I charge (that old chestnut!)
> It may be worth looking back through the threads to find a copy of Burg's analysis of what people charge as different rates charged on different jobs.
> ie. Book-keeping £25.00 per hour
> Accounts preparation £50.00 per hour
> This is totally up to you.


Thank you, did you chose to stay as freelance or opened a ltd company? Is there anything to do in order to register with HMRC as intermediary to submit your clients accounts?

Neillaw

I've been a sole trader as it suits me better. I do contract assignments during the year which means pays towards my tax bill and is usually cost accounting related.
For me it depends on net profit as to whether I convert to Ltd company.
You will need to register with HMRC to become an agent, you will also need to look into vat software for smaller vat work.

fedemenni

Thank you ?? I’ll need to look into this and see if it’s feasible

Neillaw

Not too sure where you are regarding studies and cost accounting.
I would however start by looking at your capacity, work out how much of your time is going to be covered by the three contracts.
Then I would take a look at the salary I would require and add these to the overheads to give me a total business cost. Then you can work out how much you want to charge.

David Ballantyne

This thread might be useful.

https://forums.aat.org.uk/Forum/discussion/449397/staring-my-own-business#latest