How much can I do

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT member discussion
Hello All,

Can anybody give me some help please, I'm about to do some self employed work but I'm not sure to what stage I'm allowed to do it for. I've been asked to do the books for a sole trader (Courier), and am meeting with the client this weekend to discuss what he wants done. Before I do I want to know how much of his accounts I can do and what he would need to get an accountant to do. I'm a MAAT but this is the first self employed job I will have done and would appreciate any help given.

Thanks

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:How much can I do

    Hi

    The only services regulated in the UK are statutory audit, finacial services and insolvency. So basicaly you can do anything ither than these services! When it comes to signing off accounts for the bank, inland revenue etc it may depend on the turnover of the client as to if the bank/revenue will alow you to sign them off.

    Neil
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:How much can I do

    Hi Neil
    "it may depend on the turnover of the client as to if the bank/revenue will ALLOW you to sign them off"
    I am of the opinion that your use of the word "allow" is not appropriate.
    It is not that they can "not allow", it is that they may not accept. Moreover, it is the clients who sign off their accounts, you're only preparing them from the information, explanations, records, made available to you by the client and your signature is to that effect only, as you are not signing a statutory report.
    As for the original question. Your AAT practice certificate tells you what you can do.

    Kind Regards
    Dil.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:How much can I do

    just on a side note, as im interested, presumably if he was to do any kind of taxwork including payroll im guessing he would need some type of insurance. Otherwise if it was ballsed up (of course im sure he would not being a fellow MAAT) he could get his ass personally sued off?
    Is that right? Do you need anything else to do tax returns/payroll etc for other people? Im getting more interested in this self employed lark.

    Also could I ask, when the sole trader says "he needs his books done" what exactly is he needing doing? Im mean wouldn't really need a P & L and balance sheet? He wouldnt need payroll? He wouldnt be registered for VAT?

    Ta

    PS Sorry to highjack your thread but I think youve had your question answered anyway.

    ALL REPLIES MUCH APPRECIATED, thanks.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:How much can I do

    Hi Lincs

    Yes you need Personal Indemnity Cover in case you make a balls up big style.

    A sole trader may want a P & L a/c and balance sheet. They want to know how good / bad their business is doing, if they are doing well it may be worth them going limited.
    They can also have a payroll, depends if they have any employees or not you don;t need to be a limited company to employ someone.
    They can also be vat registered, I "do the books" for a sole trader who is vat registered but doesn't want to go ltd sounds crazy I know but each to their own can't keep telling them. However there aren't many as most people tend to go limited as soon as they are able to as there are more benefits.
    Most sole traders if they are on their own just require tax returns, for which you still need to draw up some sort of account or schedules for so you can complete the return accurately.

    Hope this helps

    Regards
    Michelle
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:How much can I do

    To do any work for anyone for you need to be a member in practice which amongst other things requires you to have PI - if your self employed turnover is less than £5K per annum you can join their block policy. You also need to have professional cover in case you are ill, show a committment to CPD etc etc - look on the website here in the members section and it will give you all the ins and outs.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:How much can I do

    Hi thanks for your replies....but seeing as you are being so helpful!:

    Surely professional cover in case you are ill is voluntary?

    Commitment to CPD surely is voluntary to, assuming the clients you were dealing with werent interested in whether or not you had achieved a professional qualification? Perhaps you can give me an idea how important this is to clients of the smaller nature?

    Hypothetically speaking, if a person were to go self employed and were to obtain enough work for them to do around forty hours a week, what would you say the bulk of their work would entail and what type of clients on average would you expect to see? or is there no answer to that question?

    Finally does anyone have any links to a site(s) that discuss this sort of thing in detail....

    Many thanks again, all replies great or small appreciated lots.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:How much can I do

    Hi

    I have profesional cover and insurance, to be quite honest I have never used it and my situation would have to be very serious to use it.

    My clients tend to be sole traders and small limited companies, I am asked for and provide services such as monthly management accounts, year end accounts, VAT return completion, Tax return both compny and personal and payroll. Most of my clients have come through word of mouth from existing clients or have been friends of friends etc.
    I also sub contract, this allows me to experience more complex accounts for large companies and I also gain experience in dealing with things like HMRC inspections and tribunals. The experience I gain by doing this not only means I have more of a regular income when things are quite, but I gain wider experience which I can pass on to my own clients. Also I am abloe to ask the accountants I contract to questions when I am not sure about something and they gladly help for free which is bonus.

    Regarding CPD I am currenly studying for my ACCA hich counts towards this and the accountants I contract to have just said they will add me on to their cpd listings, they get a number of free courses a year covering a lot of the things I would like to have a more in depth knowledge of which is great.

    Regards
    Michelle
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:How much can I do

    .
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:How much can I do

    I love the "technical" element of your posts! They are ace! (Ballsed up!.... sue the arse off you!!!) :lol:
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:How much can I do

    Aye sorry I hope it dosent offend anyone, keeps blander subjects interesting though dosent it!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:How much can I do

    Don't worry about offending me mate - I think it's great we can all be so down to earth.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:How much can I do
    dildare wrote:
    I am of the opinion that your use of the word "allow" is not appropriate.
    It is not that they can "not allow", it is that they may not accept. Moreover, it is the clients who sign off their accounts, you're only preparing them from the information, explanations, records, made available to you by the client and your signature is to that effect only, as you are not signing a statutory report.

    "Tomaeto, tomatoe"
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:How much can I do

    Hi

    Going to the points about insurance and CPD, this are required for AAT MIPs and MIPs of other accountancy bodies. However, since anyone can practice general accountancy, some can avoid having to fulfill these requirements.

    Neil
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:How much can I do

    Hi Neil, sorry to do an xfspgr on you but theres no "E" in either pronunciation (had to look that one up myself!) of tomato.

    Pick me up my grammar, id rather you did.

    PS dont you hate people that say "nuf" for "enough" and "4" for "for" "cud" for "could" etc.?? The odd one I cope with but sentences and sentences of it is so annoying, it makes me feel like I have travel sickness.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:How much can I do

    hi lincs
    You raise some interesting points in your posts, and I have comments for most of them. I have been self employed as a bookkeeper for 3.5 years. I have been as busy as I want to be, but in my case this is not full time. My target is to invoice 24-28 hours per week, and I can spend anything from 1 to 10 hours a week on other things - my own books, CPD, visiting new clients, buying stationery etc, marketing, IT maintenance blah blah blah. Most bookkeepers I know are "busy", but accountants who only do final accounts and tax seem to struggle a bit more in the early days.
    I haven't checked this lately, but I believe its an AAT requirement to have professional cover who can take over if you cannot do the work yourself. You'd have to be incapacitated for quite a long time before you needed to use your cover to any great extent.
    Lots of very small businesses are VAT registered so they will need VAT returns. Also if you are updating their books regularly you can add to the quality of services by explaining the P&L figures, and keeping and eye on debtors and creditors.
    As for the type of work, I do a mixture of on-site bookkeepeing - 4-12 hours per week for various clients, plus a variety of off site clients for whom I do from 4 hours a quarter to 4 hours a week.
    Last bit - A forum - lets all use this one a bit more!
    Fot those who have made it this far - thanks for reading - and sorry for waffling on.
    regards,
    Sheelagh

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