Hi I have just passed my ICB level1 and going by my grades I seem to fully understanding what has been covered. But my feelings on this are that the main subjects covered in ICB1 were practical (ie the how too's of the actual figure work). I am trying to find out what anyone else thinks of ICB2 and does this cover things like how much expenses can be claimed etc and are book-keepers expected to advise on this sort of thing or should it be left to the accountants. If bookkeepers are expected to advise on this sort of thing is there anywhere you can get more information part from the very vague information that is posted via HMRC.
Any direction or advice will be greatly received. Thanks
Unfortunately I can't help on the ICB side... but on the advising - I don't think bookkeepers are generally expected to advise on these things, and it is usually the accountant dealing with the year end that will make adjustments for tax. A bookkeeper is probably expected to have a basic knowledge of these things but some areas can be quite in depth.
One thing to keep in mind, bookkeeping shouldn't be done just to meet statutory requirements, but to also assist with reporting for business management - so all transactions related to the business, claimable or not, should be included.
Take a look at the ICB website - Syllabus for Level II both Manual and Computerised, their descriptions will hopefully answer your question on what is covered.
In regards to advising on expenses etc., I have very basic knowledge of this and for the time being, like to just keep a clients books in order and leave the more technical stuff to those who know more.
Am I right in assuming that you will be setting up as a bookkeeper ? If so, all I could advise for now is that as long as you are knowledgeable and confident in the basics, and can provide accurate reporting of accounts, you will be providing your clients with a good service.
If you take a look at the ICB website, check out the Level III Diploma in Self Assessment Tax Returns, this could be a useful addition to what you could offer clients. Its something I am thinking about at the moment and if anyone out there has completed this, I would be interested in knowing if this would be a good addition to bookkeeping.
Thanks for the advice - it all helps with the confidence thing.
So if I can just confirm you are saying that a book keepers responsability is to keep the books as the business owner requests (from the information received) and to explain to them that my knowledge is limited due to being a book-keeper rather than an accountant and if they should need more in-depth advice they should talk to a qualified accountant.
Once I have qualified I will be starting with sole traders & smaller companies and I understand that some of these types of people submit there own tax returns and do not use acountants. But I imagine it would be safe for me to recomend to them that they speak to an accountant should they be in any doubt as to what they can & cannot claim.
