I'll get straight to the point, Do I need a practice Licence with the likes of IAB, ICB etc to practice as a Book Keeper and Tax Agent for Self Assessment?
I've recently passed all Manual and Computerised exams along with Payroll, Self Assessment and Small Business Finance (Diplomas awarded)and am now contemplating self employment, I've been reading through the HMRC website (for several days now) and from what I can gather I can register direct with HMRC as an Agent and also with them for MLR.
I'd really appreciate all help on this topic as the more I read there seems to be a fair bit of conflict on which route to take!
No you do not need a licence with a professional body if you are registering for AMLR with the HMRC.
However, you cannot register with HMRC for AMLR if you are a member with a professional body who is a supervisory body, you must register with the professional body, or resign your membership.
Who did you qualify with? You will probably get a better deal if you register with a professional body as you would get the support/forms/seminars etc + other benefits of membership.
Thanks for that James, it's a real minefield at this stage!
I've been reading through many posts on the forums trying to weigh up the best route to take and started to think do I actually need to stay with one of the institutes. I have read both positive and negative posts, at this moment I am swayed toward remaining neutral and going direct with the HMRC.
It is a bit of a mindfield, which is why joining a professional body helps :)
Probably the main (possibly only) benefit of Registering with HMRC is it's cheaper (£120 compared to ICB fees starting at £141). However, you would most likely want insurance, and the ICB can save you more than £21 per year on insurance alone.
Plus you get the forms for AMLR for free (cheapest equivelent is around £100) and the support to fill them in.
ICB are also launching their Members Directory which you would get free listing in (free advertising).
I have posted a loose Pro/Con list on professional bodies before, I have copied it in below.
Hope it helps
ICBUK wrote:
Hi Julie, welcome to the forum
I would say join a professional body (but then I am bias ) You could probably get exemptions from ICB exams with the OU Certificate.
Maybe some pros and cons?
Cons:
Can't offer services you are not qualified for (personally I don't see this as a con as I have seen too many horror stories of people offering services before they have finished the course and making costly mistakes)
Membership fees (again these aren't that bad, if you are self employed you must have a license and from the HMRC this costs £120pa, ICB starts at £141pa so an extra £21 but you can save that on insurance and support alone)
Pros:
Support (unlimited telephone or email from the ICB within your membership, Mon-Fri 9-5)
Help with setting up your business, finding clients, advertising (ICB)
Networking (meet other bookkeepers in your area (ICB and AAT unsure of IAB)
Proffessional Recognision (not every business will know the bodies, but I would be supprised if accountants or banks didn't, and having letters after your name and a crest on your business card won't hurt)
Client referals (from ICB unsure of the others)
Listing in Members Directory (ICB coming soon, AAT and IAB already have one)
Discounted Insurance
Anti Money Launding Supervision (free from ICB with a Practice License)
Free MLR support line, manuals, forms etc (ICB)
Free legal advice for you and your clients (ICB)
Can use the logo or crest on your stationery or adverts
CPD
Newsletters
OK take the above with a pinch of salt but you get the idea.
Although these forums do provide a very good service, sometimes it is nice to be able to call someone and talk through your first client.
The fees can be saved quite easily, I know ICB and AAT offer discounted insurance and 3rd party discounts (I have saved £82 on my holiday from travel insurance and car hire).
Welcome to the forum. I think you passed all possible exams so might as well go for practice licence. I think the only negative about it if you haven't got the relevant exams you can't offer certain services (like payroll or SA returns) but you got those so why not? As James said you will save on insurance only more than what you pay. Well, if you want one.
Don't make the saving on insurance your only main point, as in fact you can get it a lot cheaper elsewhere. I have never got my insurance through ICB as it is over double what I pay.
I pay less than £50 a year through ICB - that is for PII only and couldn't get it cheaper anywhere else. I guess it depends on what sort of cover are you looking for, if you need liability insurance or not and the practice you have...
I was researching PII the other day and while there are cheaper options I was spooked by one of the companies I spoke to, they didn't seem to know what services a bookkeeper could offer and they seemed to think all we do it post purchase / sales invoices.
Probably worrying over nothing but it was enough of a reason to use Trafalgar, the logic being if it's ICB recommended I should be covered.
__________________
Tony
Responses are intended as outline only. Formal advice should be sort from your Institutes Technical Department or a suitably qualified Accountant.
ADAS wrote:....enough of a reason to use Trafalgar, the logic being if it's ICB recommended I should be covered.
Hi Tony
Trafalga, actually ask if you intend to do other work, outside your qualification level with the ICB. So they are definately aware of what the individual bookkeeper may be doing.
Julies bookkeeping wrote:Don't make the saving on insurance your only main point, as in fact you can get it a lot cheaper elsewhere. I have never got my insurance through ICB as it is over double what I pay.
The ICB has never found cheaper premiums for the same cover. At least once a month someone will say "hey ICB your PII is £47 but I can get PII for £32", when it turns out its £32 per month, the £47 is an annual fee
I say same cover because quite often companies (especially banks) will give you what seems like PII but doesn't cover you for what you need. For example commonly its just Public Liability, or it doesn't cover you for Taxation - by which they include VAT returns.
) You could probably get exemptions from ICB exams with the OU Certificate.
but you get the idea. 
