Do many Bookkeepers offer Tax returns (simple ones). - The Book-keepers Forum (UK)

Amanda · Expert

Do many Bookkeepers offer Tax returns (simple ones).

RobH · Expert

I think quite a lot of bookkeepers would offer this service Amanda and from your own recent experience it is something that brings extra work in. Of course there are different levels of expertise needed but I would think a competent bookkeeper who has a reasonable grasp of tax would be able to complete a tax return that had self employed pages (Need to be able to do the relevant add backs to the P&L and then any deductions for Capital Allowances), employed pages, property pages, pensions, JSA, interest and dividends. This would cover the majority of tax returns. I think you just have to be confident that you are doing it right, might be worth sourcing a decent and cheap piece of software to assist.

Rob

RossDunn · Veteran Member

I am currently using TaxCalc following a recommedation from a local accountant and it is easy to use, cost effective and efficient Tax Return software. What software does everybody else use.

Ross

RobH · Expert

I'm an Iris user but it is hellishly expensive!

Amanda · Expert

Hi Rob,

Thanks for the reply, I think the problem is I don't know enough about tax really to do anyone elses tax return, mine is very simple so thats why I do it.
Thats why I am seriously considering biting the bullet and doing my Level 4 (was technicians level) as I believe it will put me in good stead to tax returns later.

Thanks,

RobH · Expert

In the meantime Amanda, maybe you shouldn't lose these clients. If you took the client on and did the bookkeeping side of things and wanted to email me details, I could finalise the tax return and email it to you. We could work out a split of the fee and you continue with your client once you are more confident. I do this for a number of bookkeepers already. Anyway just a thought!

Rob

Amanda · Expert

Thanks Rob, I shall bear that in mind, the 2 that I lost they already had their bookkeeping done, so that bit I couldn't pick up which was a shame. Infact one of them the other day his accountant's wife is really ill and the guy was just panicking abit thinking that his accountant may not do his tax return in time, but I'm sure that would not be the case and I'm sure his accountant will do it. I think its the time of year when people just panick!

Many thanks

ICBUK · Guru

Hello,

Approx 13% of ICB practising members offer SAs (this is a rough figure based on how many are qualified to offer them).

This number is growing though as the ICB has a SA qualification and text book.

Thought that might be a interesting figure.

Amanda · Expert

Hi Rob,

Seeing a new client end of next wk, and hes just starting out, and by the sounds of things will need some help in going in the right direction regarding paperwork etc. He thought a bookkeeper and accountant were the same thing!!!

Anyway he was also taking to me about the Self Assessment, which won't be due for a long time as hes only just started, but he would like me to do it or sub it out if its not something I can do, so before I am going to meet him I was wondering if I could give you a call and pick your brains and find out a cost for the final bit?

Many thanks

gbm · Guru

Hi Amanda,

Sorry I'm late to this one, I just thought I'd make a comment or two!

I suppose it all comes down to confidence and competance. What can start out as a simple return can change. A client has a business, all well and good - but say he bought a van, and his taxable profit turned into a loss, which can be carried back against previous profits. He then mentions that he's got a buy to let which also has losses as he had to do it up. Very soon, a simple return can turn complicated.

It's also the reason why I don't touch Trusts or overseas clients - I know a little bit about them, but not enough to feel confident.

Then there's the planning aspect. I have a client who used to trade as a sole trader and used someone to do his tax return in a private capacity. He was a HR taxpayer! After he moved to us, we incorporated his business and he's saving over £10k in tax each year! His additional cost of using us instead of the previous person is about £400 - not a bad investment.

I'm not trying to discourage you, just wanted to mention a couple of things to consider.

HTH
Nick

HendyPhilhendy · Guru

Amanda wrote:

Hi Rob,

Seeing a new client end of next wk, and hes just starting out, and by the sounds of things will need some help in going in the right direction regarding paperwork etc. He thought a bookkeeper and accountant were the same thing!!!

Anyway he was also taking to me about the Self Assessment, which won't be due for a long time as hes only just started, but he would like me to do it or sub it out if its not something I can do, so before I am going to meet him I was wondering if I could give you a call and pick your brains and find out a cost for the final bit?

Many thanks

This is to be a subject of one of my future blogs - it is amazing how many business owners don't understand the difference!

Cory2289 · Newbie

Dear Amanda,

Sorry, i know this is quite an old thread now. I was just curious to find out whether you train for your aat 4 while self employed. I was recently turned down from the aat4 as i had lost my job and was told the work placement was a fundamental aspect of the training and therefore without this the qualification was not completable. Are you able to replace the need for a work placement with self employed work?

Secondly, do you know if you need certain qualifications, insurances or memberships to offer completion of a Self Assessment tax return to clients? I read in some places that you can and in others that you cannot - so confused!

Many thanks

Cory

Shamus · Forum Moderator & Expert

Hi Cory,

whilst having work is a requirement of getting your membership there is nothing to stop you taking the AAT exams without being employed.

The advice that you got from the training provider is incorrect and if they are not willing to take you on then try distance learning via Premier training.

The only time that you need certain qualifications to offer self assessment returns is if your supervisory body is the ICB.

For all other supervisory bodies you will need the relevant membership level, insurance, practice certificate (MLR is generally by membership).

If you do not have a supervisory body then you must be registered with HMRC for Money Laundering (if not there are severe penalties including possible jail time) and insurance is extremely advisable but not legally essential.

Hope that helps,

kind regards,

Shaun.

ICBUK · Guru

Hello all,

Just a little clarification Shaun, the ICB does not require the qualification as such, just the knowledge (or proof of). It just so happens the quickest way to prove knowledge is via the ICB examination.

AAT or other relevant qualifications on self assessment will be accepted.

EDIT: if the other qualifications are taken within 2 years

-- Edited by ICBUK on Tuesday 6th of September 2011 05:48:19 PM

KEELY · Veteran Member

i have the same problem of clients thinking a bookkeeper is the same as a client, i always have clients asking me very complex questions which they should be referring to their accountant but i think many business owners are intimidated by their accountants and feel more at ease speaking to their bookkeeper than their accountant.

Peasie · Expert

They probably think that advice from an accountant will be added on to their bill but think they can get the advice informally for free from a bookkeeper.

gbm · Guru

Peasie wrote:
They probably think that advice from an accountant will be added on to their bill but think they can get the advice informally for free from a bookkeeper.

That's probably right, but it's not how many accountants now work, ourselves included. We never want to be in a position where a client won't ring up for a chat because they were going to get billed for it.

YLB-HO · Guru

For anyone who has already seen my post about it previously - the IAB offer a L4 Diploma in Personal & Business Tax, which includes Self Assessment for Individuals as well as Corporation tax etc. Its a bit more indepth that just being able to fill in the forms!

Susie Sue · Senior Member

I am very interested in this, Frauke. Hopefully will be in touch very soon (when I've saved up a bit!)