As you know I am reluctant to have to sit more exams, so I wondered if you would be so kind as to answer this for me.
My son graduated from Uni this summer after a couple of months in the states he is now home and at present he has not got a job. I was thinking that if I brought him into the business and he passed all the relevant exams (he will possibly have an exemption from some of it but will look into that at the time) would I be able to then transfer my practise license to him but keeping the business name?
If he has to take all the exams and has not completed it before September will I be booted? I obviously do not want to leave the ICB come September.
Well firstly you may not need to sit any examinations. Someone did try to contact you as you seem to be very involved with workshops and HMRC etc which would count as CPD.
However, if your practice is a limited company you can transfer it over, just let the ICB know.
If it was your license as a sole trader then you could pass over the name and clients, but he would need his own license, it could be in the same name, but he would need his own license number and start date.
If you want give me a call I could talk through your options.
I spoke to someone at the ICB a few days ago because I'm taking on my first employee and I want to be sure I understand the 'rules' about who I can employ to maintain my practise license and MLR cover, but I'm not sure the person I spoke to grasped what I wanted to know. Do employees needs to be ICB members or not? I've not seen anything relating to any of this on the ICB website, or have I missed it?
If they are doing bookkeeping, payroll or self assessments (basically anything covered by the ICB) then they need to be in membership at a level that reflects their work.
So if they are just answering phones, making the tea etc, or if they are an accountant, then they do not need to be registered.
Otherwise, if they are inputting data, then they might need to be a Student or Affiliate depending on what they do. Sole traders would be Associate, or if they are going right to draft final accounts for limited companies then it would be full member.
The ICB just wants to make sure that any company using its crest meets the required standards. Otherwise a company could put one person through the ICB, get the crest, then pass all the work to unqualified/unexperienced bookkeepers. (that is not always a problem if you follow ICB guidelines).
If in doubt just call, I can go through it with you in more detail.
Is this just an ICB measure as surely chartered accountants do not have everyone in their business who prepares accounts as memebers or student memebers?
Off the top of my head, and depending on the body, chartered accountant firms have to have all their directors/managers registered with the body, and all staff below registered with someone (AAT or ICB etc).
Please check that, or maybe one of the accountants on here could clarify.
It is a difficult one, as hopefully no bookkeeper would pass work onto someone who they think will get it wrong, as it would damage the reputation they have spent years gaining.
However, it does happen.
If someone is a good bookkeeper or recently qualified, they should be able to join the ICB without any real trouble. That then gives piece of mind to the owner, and the client.
The person I have employed has ICB level 2, although I don't know if she is currently a member so I will check that. She is only going to be doing ledger work although she has experience of payroll so I might explore with her doing the payroll diploma so that she can do that for me, too.
For future employees I'm thinking of two different scenarios - the first being if someone is qualified through and registered with one of the other bodies and the second is if I want to take on someone as a trainee, and intend to supervise them working until they have got to the point of being experienced and qualified. How might that work?
Off the top of my head, and depending on the body, chartered accountant firms have to have all their directors/managers registered with the body, and all staff below registered with someone (AAT or ICB etc).
Please check that, or maybe one of the accountants on here could clarify.
It is a difficult one, as hopefully no bookkeeper would pass work onto someone who they think will get it wrong, as it would damage the reputation they have spent years gaining.
However, it does happen.
If someone is a good bookkeeper or recently qualified, they should be able to join the ICB without any real trouble. That then gives piece of mind to the owner, and the client.
Actually, in a Chartered or Certified practice the only person that needs to be qualified is the partner/ director as they hold the practising certificate. It is up to them to utilise appropriate staff with the right skill level for an assignment. i.e. Audit manager would likely be qualified; however, they don't necessarily have to be.
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Phil Hendy, The Accountancy Mentor
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