I am currently studying with ICB, I have passed Level 1 and Computerised Level 2. I was in the middle of Manual Level 2 when I was pregnant and towards the end of my pregnancy I just felt too ill and tired to give it my full attention. Since then I've not had chance to pick up studying again due to childcare but I'll be continuing again once my youngest starts nursery in April next year.
Previous to starting my studies, I have been doing all the admin and books for my husband who is a self employed painter and decorator for around 7 years. I basically just input all his payments and receipts into an xcel spreadsheet and everything then goes off to the accountants at the end of the year and they do all the balances and tax returns etc. I am employed by my husbands company as an office administrator.
A friend has recently asked me if I will go into her business for 6 hours a month and input her payments and receipts into Sage for her and also do a bit of payroll work too. This again would all be signed off by the accountants and checked by them. She is wanting me to do this self employed though rather than as an employee of her company so I am just wondering if I am allowed to do this without a practice licence?
you don't need a practice licence to do your husbands books as such is the equivalent of doing your own books, but to offer the service to others you need to have MLR cover either through a practice licence or direct fom HMRC.
Check the latest ICB guidance but I think that you will find that you are only allowed to gain a licence to practice through them once you have attained AICB status. (in certain circumstances there is another sort of licence that they will issue in exceptional circumstances at their discretion to student members but you really need to talk to the ICB about whether they would contemplate an emergency supervision licence in your situation).
Offering bookkeeping services even not under your ICB banner is not permitted if you are a student member of the ICB until you have attained AICB status and purchased a practice certificate & PII insurance.
Unless you can be granted a supervision licence then gaining AICB status is probably the least painful route as the other option would be giving up your ICB student membership and going to HMRC for MLR cover.
HTH,
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.
Thanks for replying. I've just checked my membership card and I am ACIB (comp) so I'll give the ICB a ring tomorrow and see what they say but I have a feeling that I had to pass the Manual level 2 exam by Sept last year.
Out of interest, how much is PII insurance likely to be? She is only going to be paying me £60 a month so just want to weigh up if it would be worthwhile as I'm not in a position to take on any other business yet as I have no childcare, I would have been able to work one Sat a month for my friend. I know the experience would be good for me though.
for members of this site the PII from Arlington is £78.
PII, a practice licence, ICB membership and software licences is really going to eat into the £720 and you could really do with at least one more client with a similar level in income to just make it just pay for itself whilst yu gain the experience.
Worst case scenario you are going to be working just for the experience gained and not really taking anything away from the business.
It has to be said that sometimes its worth it as experience opens doors.
kind 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.
The PII is not as bad as I feared then, was presuming it would be a few hundred pounds. My friend already has the software in her office, she did have someone doing her books but they've now left, I've also paid up my membership for this year and would have continued with it anyway so its not sounding as costly as I first thought.
Will ring ICB tomorrow and see if they can grant me a supervision licence then until I can get the manual exam passed, am hoping because I was on mat leave for a year they may take that into account!
Just thought I'd let you know what the ICB said. As I'd paid up my membership until the end of 2012 and was AICB (comp) and have been off on mat leave, they said I can still keep my AICB status and apply for a practice licence. I would need to make sure I pass the Level 2 Manual exam before the end of the year.
I asked if I worked for my friend on an employed basis if I still needed a practice licence and she said no. My friend is a mortgage and investments adviser so has MLR cover for the business so I would just need to check that I would be covered under that.
