Hi, I'm new to this site, and would like to get advice as I have been reading lots of threds but have got more and more confused. I would like to start a bookkeeping business from home. I have 12 years experience in an accounts office (ie sales/purchase ledger bank recs/petty cash). These are my qualifications OCR Level 2 Certificate in Accounting OCR Level 2 Certificate in Accounting (Computerised) IAB Level 3 in Computerised Payroll Do I need to get anymore qualifications? Do I need to register for MLR and or a Certificate of Compliance or Practising Certificate? Are these tests as I'm unsure? If someone could answer, I would be grateful. Thankyou Jaybee
You would not need a practice licence, unless you are an active member of one of the supervisory bodies.
You will need to be registered for MLR before you start trading as a self employed bookkeeper. This can be done directly with HMRC at £120 per year. You will also need to carry out various compliance tasks for each client you take on.
It would depend on how old your qualifications were but with your quals and experience, you may be able to gain membership to either ICB or IAB, by exemption. You would however then need to obtain a practice licence from that organisation but you would normally be supervised for MLR by them. You would also need professional indemnity insurance, which is not mandatory if you "go it alone" (but highly advisable)
If you did to become a member of IAB or ICB, with you current qualifications, it will restrict you on what you can do. I would guess that if you could get membership by exemption, it would be to level two status, which limits you.
Hope that helps a bit
Edit: MLR and practice licences are not tests. MLR is a case of being supervised. Practice licence is issued by a governing body to show competence (among other things)
Bill
-- Edited by Wella on Thursday 10th of March 2011 03:46:53 PM
With your 12 years experience your L3 Payroll with IAB I am sure you would be able to join IAB at Membership level. You would need two referees for this (people who can confirm your experience in book-keeping). When you become a member of IAB you can sign up for a practice licence which would cover you for MLR. This route would be cheaper than paying HMRC to supervise you for MLR which is currently £120. You must be supevised under MLR if you are self employed.
Almost forgot, IAB recognise OCR qualifications.
HTH
-- Edited by semsley on Thursday 10th of March 2011 08:11:01 PM
I never knew that IAB recognise OCR, I did my OCR Level 1 & 2 Manual and Level 1 & 2 comp about 7 years ago and I have AAT Imtermediate (would be level 3 now), would I get exemptions and be able to join at Membership level?
Yes you would. Take a look at the website it's not easy to find but on there is a table of equivalent qualifications and APL route to membership. I joined at member level with a 1964 GCE O level in principles of accounts and even older RSA and Pitman bookkeeping quals plus references from 2 clients confirming my competence. Gosh it's hard typing this on a phone!!!!
Thanks for the reply, when you mean 2 references from 2 clients confirming your competance, do you mean 2 clients or would it have to be 2 accountants??
I could definately get 2 clients and most probably get 2 accountants if need be, the clients would be easier though as who knows the accountants might charge me for a letter!
