I am need of some guidance. I have over 12 years of accountancy/bookkeeping experience in an employed nature. I am currently on maternity leave and my boss has just informed me that he is retiring. My employment is being transfered to another accountancy so I don't lose my statutory rights, but I know nothing about this new firm.
A couple of years ago I thought about trying to run a self employed bookkeeping service alongside my job, but with falling pregnant nothing came of it.
I am now considering doing it again, the retirement has sparked it off, because I am thinking I could contact all the customers that I have done some work for in employment. I am seeing it as an opportunity that shouldn't be missed. However, the hitch is that the business is being sold to the company that my employment has been transferred to. So there is a conflict of interest. Obviously clients can choose who their accountant can be, but then them staying with my new employer is paying my wage (although I will only be part time)
Basically, do I send a letter out saying that if things don't work out with the accountants they can contact me for bookkeeping advise. Or should I just try and find my own customers via advertising, website etc.
I've got pregnancy brain and i'm in a muddle. Can anyone tell me what they think is best to do.
Secondly, I think that you should start from scratch and hope that ex clients find you without you approaching them.
poaching clients may open you up to legal action.
Whilst unless your contract of employment contains specific clauses it is unlikely you can be sued for actually stealing clients (all's fair in love and war and all that). You can be sued for stealing the information that allows you access to the clients details. (I doubt if you would have known these clients had it not been through your employment so your employer has a strong case).
this type of legal action can be expensive so your employers may only go as far as sending you threatening letters. However, they're also going to be looking at this from the angle if they can't afford to sue you then it's unlikely that you'll be able to afford to defend yourself.
This sort of case will seldom if ever award costs so no matter who wins, if it gets to court you're both going to be substantial losers.
Sorry to be negative but I wouldn't approach your employers clients directly.
Good luck anyway,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
I agree wholeheartedly with Shaun. The practice has not just been transferred but your previous boss has sold it. Now I am not saying you owe your previous employer any particular loyalty but he will lose out on the business he built if clients leave and what's more either the new or old employer will soon know who has the clients, for a start you will need to write to the current employer for handover information and for confirmation that they have no reasons why you should not act for the client and also for all those who you approach but do not take you up will probably mention it in passing. Be very careful. If you do go the self employed route and clients you previously did work for approached you directly then that would be perfectly ok. Your conundrum is how do you let them know that you are working self employed.
You need to also reflect on the fact that currently you are getting maternity leave/pay, holiday pay, sick pay etc. Is the timing right to go self employed? Do you want the extra stress of building a business with a baby to look after? Perhaps you could start to build a small portfolio of clients while you are still employed, however this may contravene some clauses in your contract of employment and also it would probably mean you shouldn't be on SMP if you are working (though I do not know for sure without checking).
I think there are quite a few things to think about on this one.
Yes it's the legal issue that I was concerned about. If I was to approach them, I would clearly state that I couldn't do their books if they stayed with my new employer, but obviously its their work that will pay my salary, so its a conflict.
It wouldn't affect my old employer who sold the business, as he didn't sell on a commision basis. He'll get the agreed some no matter how many clients move to the new accountants. (I'm on good terms with my old employer, so I know of his situation)
I don't intend to finalise year end accounts, just wanted to do the record keeping / accounts preparation and payroll. They would still need to appoint an accountant to do tax return and final accounts.
I do see where both of you are coming from, its whats been stressing me out, but its nice to be told straight.
I wouldn't be starting up, if at all, until after August when I plan to finish maternity leave, as it would invalidate my SMP. Just in planning stages. I wanted to run it alongside my employment, just to generate interest and put the feelers out. But then I think there's quite a bit of outlay involved for MLR, PII etc which keeps knocking me back to square one. One day I want to do it, just don't know when the right time is. Just thought this would be great opportunity as some clients I know well.
Well if you do not want to do year end, would it be possible to say to your new employer that it may benefit him if you went self employed, that way you could still do the work but potentialy ona better hourly rate. You might be surprised, he may jump at the offer, no need to pay holiday, ers nic, the extra bank holiday for celebrating our monarchs reign, the compulsory pension contributions that will come into force soon. All that probably costs him over 20% on top of your hourly rate. However if he has staff at the practice he may be happy to just let you go. Decisions decisions, but perhaps your old boss can give you some inside knowledge, he may say that the guy is thinking of making redundancies so it would be worth hanging on. I know a few local accountants here where they have shed staff or put them on shorter hours.
