I work full-time as an Assistant Accountant but also do the books for my partners business. Then I was approached by my brother-in-law to help him with his books, then my sister for the books with her B&B and now I've been approached by someone else with their new business. At the moment I'm working evenings and weekends and am struggling to cope with the workload! I've decided to quit my full-time job and go self-employed as a book-keeper as I prefer book-keeping to management accounts. I have passed the AAT foundation and intermediate level. I was supposed to be taking my technician level but I can't find the time! I would like to forget that and become a member of the ICB, but I can't consider that until I have more time.
So, what do I need to do!? I'm not sure what I have to do as far as Money Laundering Regulations. Do I need PI Insurance and Public Liability Insurance or just PII. I can't have my home address as my business address because my house is rented and the tenancy doesn't allow a busines to be run from there.
What else do I have to consider?
Lastly, and most importantly: am I completely mad to be considering giving up a stable regular job to go self-employed.
Hey Debz, you are completely normal to consider it :) You just need to be very determined and on no account give up. I have got many articles on my site (link below) that will really help you (including Money Laundering). Start with Home Bookkeeping Part 1 (on the right hand side of the main page).
Regarding your business premises. Think of it more in terms of you doing private work from your flat, rather than a point of sale. You don't need permission to do work at home. Just about anyone on the planet who works employed or employer will do work at home at some point. Whatever you do, do not invite any clients to your flat, that would break your agreement immediately.
Of course, I haven't read your tenancy agreement, but I doubt very much it will state that you cannot bring work home. Your office can therefore be 'virtual'. You will also find in many cases your clients will require you to work at their premises (because you will have access to all the paperwork).
With regards to MLR, as you are already doing bookkeeping you need to register immediately with HMRC, for both money laundering legislation (it's a legal requirement) and to inform them that you are also self employed, (even if you stay at you job and continue with the clients on a part time basis).
It is not compulsary to have PII but very adviseable. You probably wont need PLI, unless you have premises or employees (may be later, if all goes well)
An alternative (and cheaper) option to registering with HMRC for MLR supervision, is to see if you can get membership exemptions from either the ICB or IAB and become a member in practice, as you are then supervised by theses bodies and it is cheaper.
Hopefully this blog will help you to think about what you need to do when setting up. Taking the jump from employment to becoming self employed can be scary but the freedom it gives you is worth it!
If you start your own business doing Book-keeping with clients then you will need to be regulated by an institute like ICB which they would then issue you a Practice certificate, then you would need imdemnity insurance to which they will guide you with. But! you would probably need to do a course with ICB - speak to them. Money laundering Regulations came in December 2007 this is a legal requirement for all accountancy service providers.
Also have a chat with HMRC and ICB about your rented address, I'm sure they would help as I don't think you are the only one who's in the boat.
sorry it's a few days late, but I hope this helps.
Further to Luther Parker's post you dont have to be regulated by an institute like the ICB you just need to be registered under the money laundering regulations, which you can get from HMRC.
You are right, but if you read Debzinket forum, she states that 'I would like to forget that and become a member of ICB, anyone who wishes to become a member of ICB should be regulated by the institute, yes you probably could go with HMRC but then whats the point being an ICB member plus you pay alot more money and you don't have any help, you can't use there crest and look professional, they have a website were you can find out about clients looking for book-keepers and so on!
Its up to Debz, but you can not get better than ICB if you want to become a professional Book-keeper.
luther parker wrote:Its up to Debz, but you can not get better than ICB if you want to become a professional Book-keeper.
Luther ICB Member.
Thanks Luther!
A lot of members use virtual offices because of their rented address, or, if you work with one, you can someitmes ask your local accountant to be a mail address.
HMRC seems like a good idea at first, cheap, no requirements, however, once you have added the extra fees you need to pay to get the MLR manual, forms, checklists etc it works out as more expensive than a professional body. Also professional bodies get you discounts on insurance to save you further money.
Professional bodies come with many benefits, one is cost saving, the others are the support, use of crest, client referals etc..
The views expressed in this post are my own personal (HRA protected) views, and are not representative of any organisation I have any involvement with.
