I have just this minute registered on this site, at last I have found somewhere to get some answers.
I have been a book-keeper for 15 years and am AAT qualified and about 12 months ago I decided to go self-employed. My employer at the time was happy for me to do that and invoice him on a weekly basis. I then put a few adverts in and got a new client. My mind then started wondering what about insurances etc and had heard vaguely about MLR. So i spent many happy hours surfing the net to find out what legally is needed as a self-employed book-keeper. I drew a blank and so carried on as before.
In the last few months I have gained another client as a sole trader doing VAT quarterly and yearly accounts and self assesment.
Today I have another client, and yes you've guessed it my mind started wondering again. I am worrying about not being legal etc.
So while researching costs of Sage software I discovered this forum horray.
Upon looking at this site now I am really worried, I definately need MLR and want to do this asap. please can you answer my questions abput this.
1. I am a AAT qualified but am a lapsed member and don't pay any yearly fee's. would it be better to become a member of AAT again and then would I be covered for MLR for free or do I need to pay hmrc the £120?
2. PI ? is this personal insurance for if you get sued by a client. Can I get this through AAT and at what cost? what are my other options? Am I right in thinking I do not legally need this?
3. Public Liability? I work from home and at clients premises do I need this cover as well?
Please, please help me to get my business on the right side of the law now I am growing.
You are right that you have to be registered for MLR. I would think the best way to go would be to become a registered AAT member again but I'm not sure if that's just a matter of paying your annual subscriptions. It will help enormously being able to tell new clients that you are aat and you can then print the designatory letters on your business stationery and cards etc. I would think however that you will need to pay AAT a further annual fee for mlr.
Professional Indemnity is not a legal requirement but I think it would be crazy not to have it. I'm with Hiscox but because of the turnover I have it is quite expensive, not sure what they charge for a lower turnover. Others on the forum have mentioned Trafalgar as being good value.
With regards to public liability, it may well be worth talking to your house insurance people and letting them know that you are doing some work from home and ask if they can add something to the policy, I would imagine it would be a negligible amount, but I work from other premises so I do not know for certain.
might be a problem with the AAT route to MLR as I think that you are only covered automatically by them if you hold a practicing certificate and MAAT MIP status.
From the sound of your experience you may already be in a position to go straight to that but it's something to be aware of.
Another option that you may consider is using your AAT status to get membership of the IAB which would cover you for MLR. The people at the IAB are very friendly and professional so give them a call tomorrow to discuss.
For PII insurance whilst Trafalgar is cheap I don't know what they would be like to claim against your policy. They have special arrangements with the AAT / ICB and IAB and as Rob states they are quite reasonable rates.
Also check out MORETHAN as you have more than two years experience so insurance will be available through them as well.
Direct line is is very reasonable for Public liability insurance. I think that mine costs me about £40 a year so it's one of the more insignificant costs.
I was always under the impression that Public Liability insurance was mandatory but was seldom claimed against where Professional Indemnity Insurance was optional but was more likely to be needed.
I could be wrong on that last point.
For information (the frightners bit, sorry) if you provide bookkeeping or accountancy services without MLR cover you face a prison sentence of up to two years and an unlimited fine... It would be a good idea to sort that one out pronto!!!
Sorry about that last paragraph but just wanted to emphasise how important it is that you get the MLR sorted now.
Welcome to the forum and I look forward to having a few debates with you.
Talk soon,
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.
Hi, just to give you an idea, my PII is with Bluefin Insurance and I have it for the low income scheme. It costs me £138. I looked at others but they did not comply enough with the ICAEW rules!
