As I am writing this post, I feel really depressed as the future looks very bleak... especially after reading the article in the news today about unemployment figures increasing month after month.
I have been made redundant 4 months ago, and after trying every day since, have been unsuccessful in finding a job - nobody seems to want to employ anyone anymore.
Therefore due to this, I have decided to try and do some book-keeping work in the mean time as I have experience in this from the past. However, the problem is that those who want the book-keeping services also want to be provided with payroll services at the same time. I have not had much experience with payroll recently and it's been a while since I have done this, and because of this I keep on losing the very few clients I seem to get
I was wondering whether somebody is able to help me by showing me where I can read up the full payroll submission requirements to HMRC (e.g. what needs to be submitted monthly or annually)and anything else that you may think could be helpful.
it sounds as though you are offering your services on a self employed basis so don't forget that it is a legal requirement to obtain MLR cover either from HMRC directly or via membership of one of the supervisory bodies. If you don't have it it carries potential for jail time and unlimited fine.
For payroll you may find the best approach is to go to the new employers section of the HMRC website and combine that with developing knowledge of some Payroll software.
Both Moneysoft Payroll and 12pay offer one month free trials to get you started.
Payroll courses can be particularly expensive which has never really made sense to me as it's not a particularly complicated area but it can be time consuming and there are invariably complications related to things like sickpay, maternity, pension contributions, holiday entitlements etc. that you need to be wary of.
Make a mistake in the books and you'll have the office manager shouting at you, make one in Payroll and you'll have an impromptu mob of torch and pitchfork wielding workers hunting you down!
You state that you have bookkeeping experience. Is it recent and was the bookkeeping training formal (with or without a training provider).
I ask because your going into competition with an awful lot of unemployed bookkeepers with the qualifications and also qualified accountants working in bookkeeping. I say this not to put you off but to give you a warning before you invest a lot of money in software, insurances and licences (such as MLR).
Believe it or not the market is a lot better out there than it was before the current administration took over. However that should not be construed as easy as you will be going up against a lot of competition from people in a similar predicament and also established practices trying to expand their customer base.
Good luck with finding a suitable role. Don't give up just because recruitment agencies don't write back. Follow it up with direct calling. Contemplate temping in credit control which will use your bookkeeping skills and you don't have to go anywhere near payroll.
Hope that nothing that I've said above comes across the wrong way as discouraging you is not my intent but I feel that telling you only what you want to hear would serve nobody well.
Good to have you as a member of the forum and look forwards to chatting soon,
kindest regards,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Amy, in fact the free trial of 12Pay is unlimited for calculation and filing purposes, and 6 payroll processing periods (ie 6 months in a monthly payroll) for payslip production purposes. Tens of Thousands of employers manage payroll on their own using packages like 12Pay and Moneysoft so it can't be that hard. Stuff like SSP/SMP is usually just a case of recording the absence, and the software will do the rest, though it is a good idea to have at least a vague acquaintance with the regulations as a sanity check for the answers produced by the software.
If you have any general payroll queries our helpline is always glad to help you out once you've bought one of our paid-for licences, which are inexpensive compared with the income that you can get by acting as an agent/bureau.
I can totally sympathise. My husband is an architect and following redundancy he has been searching for work since May, without any success at all. Thankfully my business is doing well so that takes the pressure off him but with a baby arriving in February he is panicking more and more about finding a job, which seems to make it even harder.
I can echo what has been said above, that you must be registered with HMRC for MLR but it sounds as though you already are. When you say you've registered with them for SA - do you mean Self Assessment and if so, that on it's own is not enough for you to be MLR registered. Have a read here http://www.hmrc.gov.uk/MLR/getstarted/register/index.htm just to make sure you're correctly registered. There is a cost for this.
In terms of payroll, I have just submitted my Payroll exam to the ICB so haven't actually offered it as a service but I have used 12Pay for my own business and rate it very highly, especially as the cost is reasonable. DOwnload Basic PAYE tools from the HMRC website and use all of the learning modules within it to get you started. There is a wealth of information on the HMRC website but start here http://www.hmrc.gov.uk/paye/index.htm and read through each section.
Good luck and don't get demoralised or depressed - remember there is always someone out there worse off than you are
As Clare suggests being merely registered for Self Assessment yourself or being registered as a tax agent isnt enough for MLR. You need to complete a form and pay a fee to HMRC. Though as you are a member of AAT you may be able to get covered from them. Best to check first before paying out to HMRC.
You would also need to get PII cover to cover you in case anything goes wrong what you do.
Have you considered outsourcing the payroll function. My experience is in accounts and tax (worked in practice for 15 years) but i have no experience of payroll other than a very basic understanding of payroll reports. I have outsourced my payroll function to someone who i used to work beside who has set up as a sole trader as a payroll provider.
I second what MarkS says. It shouldn't be something that causes you pain and it can be fairly cheap to outsource this.
Just find a decent payroll bureau/accountants near you and find out about their pricing.....you might even be able to wangle a discount if you put business their way!
This way, you won't have to knock back work and can confidently offer this service from your preferred specialists...you may be able to factor this into your charges and be billed by the bureau??
I have registered with HMRC as SA therefore sm covered for MLR.
Hello,
Just come across this post so sorry for late reply.
You must have a MLR Supervision Licence from HMRC, registering as SA (I assume you mean self assessment tax agent, or self employed) does not cover you.
If you are a member of the AAT call them and get MLR from them, but you must do this now as if you are trading without MLR supervision you are breaking the law.
In terms of your original post, the recession seems to be a scary thing but does seem to be a positive impact on bookkeeping.
Feedback to the ICB suggests that recession helps the self employed bookkeeper in 3 ways:
Banks are being more demanding of books being done by a professional before they approve loans/mortgages etc
Clients are moving from accountants to bookkeepers to save money, accountants themselves are noticing this one which explains why there is an influx of accountant firms partnering up with members and advertising bookkeeping services as well
Some clients themselves are deciding they need better control or keep a better eye on their day to day cash flow and bookkeeping
There are other reasons as well but they seem to be the main ones the ICB gets when it asks.
So basically don't loose faith, ask AAT for help in setting up in business, don't forget to ask family and friends as many of them will know potential clients to help get you started.
With regards to payrol there are quite a few courses out there, it might be a good idea to get qualified, or at least trained, before you started charging for the service.
