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

fedemenni
fedemenni Registered Posts: 93
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

Comments

  • Neillaw
    Neillaw Registered Posts: 307 Dedicated contributor 🦉
    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
    fedemenni Registered Posts: 93
    > @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
    Neillaw Registered Posts: 307 Dedicated contributor 🦉
    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
    fedemenni Registered Posts: 93
    Thank you ?? I’ll need to look into this and see if it’s feasible
  • Neillaw
    Neillaw Registered Posts: 307 Dedicated contributor 🦉
    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
    David Ballantyne Registered Posts: 105 New contributor 🐸
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