Hello All, last year I became semi-retired, having spent most of my life in systems development. Having said that for the last few years I have been looking after the sales ledger, purchase ledger and cash book for a small company. Not being quite ready for the vegetable patch just yet, I decided to study with the AAT and have successfully passed levels 2 & 3, with plans to start level 4 in the autumn. I feel confident that I can create the P&L and balance sheet for sole traders, but obviously before doing this I have to create my own business. I have looked on the HMRC website and previous posts on this forum to gain some idea of how to setup a business. Thanks for your patience now for the question;
Does anyone have a list of the steps that I must take?
1) Select a name - any do's or dont's
2) Inform HMRC
3) Take out professional indemnity. What is MLR?
4) Am I allowed to complete the P&L / BS for sole traders? Do I have to inform anyone?
5) I would also wnat to complete their tax returns and possibly their vat returns.
'MLR' stands for money laundering regulations. For the purposes of these regulations, you'll either be supervised by your professional body or you'll need to register with HM Revenue & Customs. HM Revenue & Customs has some guidance on the regulations on its website.
I'm not a member of the AAT (so I don't know anything about their rules for students) but it's not unusual for a professional body to restrict the services that people can offer before qualifying - this page suggests that you need to be a member in practice before offering services to the public.
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Pearce & Co - Chartered Accountant and Chartered Tax Adviser
Hi Mike / Gerry? (Why do you sign as a different person to your profile?)
The one from the above list that you must by law be compliant on is MLR. If you trade without cover either from your professional body (some bodies charge, others include the fee within the practice certificate fee) or from HMRC (£110).
If you are not covered for MLR you face possible imrisonment and / or unlimited fine.
You are AAT not yet MAAT so you would be able to make no mention of your affiliation to your professional body to potential clients and no mention of AAT in any marketing materials.
Thats a lot more lenient than some of the other bodies that would place far more restriction on the services that you are allowed to offer even without making mention of them. (see discussions on here about ACCA regulation 8).
I'm assuming that by tax returns you mean self assessment rather than CT600's.
VAT returns are pretty straight forwards.
The issue with completing and filing returns is what you do not know. You say that you have gone through AAT II and III which leaves me thinking are you perhaps trying to run before you can walk.
That said, if we wait until we know everything would any of us ever do anything!
Certainly I think that you need to at least get through AAT level IV before thinking about offering filing services and even then only for the smallest businesses.
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.
sorry, crossed in the post. (shows how long it takes me to write anything!)... On that student services line I think that student can offer services to the public provided that they make no mention at all of their affiliation.
Sure that we covered that on the site a month of so back. Hnaf on a sec....
Can't find it but found this one that would be useful in its entirety for the poster :
the key post though has this in it lifted from the AAT site :
While you are studying for your AAT qualification, you can set up in practice. However, certain restrictions apply until you become a full member:
you may not advertise in connection with AAT you must only undertake work within your competence and seek professional advice where necessary you must abide by the our Guidelines on Professional Ethics you are strongly advised to take out professional indemnity insurance.
The key in there is only undertake work within your competence.
Such could be from expereince and / or qualification which to me confirms that filing without relevant experience of filing at AAT level III would be frowned upon as the bulk of the financial treporting and taxation studies don't come into AAT until level IV.
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.
I'm good cheers matey, you've been missed on the site.
basically you were the one that I was talking about but I left it open in case there was another that I didn't know about.
Just read my last post... Hnaf in a sec!
What the frig is Hnaf... Its not even as though my chunky fingers just transposed the key by one.
I'm sure sometimes my spelling would end up better if I just beat my head against the keyboard! lol
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.
Sorry Shaun, it was meant to be a play on the word geriatric. Obviously not a very funny play! I would like to say that I do have quite a broad range of business experience and would not try to swallow more than I could chew. Having spent the last year sending out countless cvs, most of which do not even get a response, I thought it best to try and find some work for myself. I am aware that there is a lot that I don't know, so would take a very cautious approach to any work I was given. I am trying to make sure that I remain legal.
Regards,
Mike
Many thanks to all responders, this is a great forum.
I ve visited the HMRC Site. The MLR part. It says it takes up to 45 days to get the yes or no. More, there is one off fee of £ 50 then another fee of £ 110 for registering the place where you work. As I initially start working from home, my problem is that the contract with the landlord expires in two months and I am not sure if I will continue to live here so I do not feel like burning £ 110 for nothing.
I ve called AAT and they ve said that the MLR from AAT is only for the MAAT Guys.
What is the solution ?
Cheers,
Adrian
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This is just my personal opinion. Advice should be sought from a suitably qualified Accountant.
P.S. I only ride a motorbike because I want to dry my clothes faster
I appreciate that this all seems very exciting and it would be nice for everything to be sorted out yesterday but sometimes its good to apply the brakes and slow things down a little.
This seems one of those times.
There seems little point in obtaining MLR cover when you do not yet know the premises that the MLR needs to cover which means that you cannot start your business yet.
Have you thought of spending a few months temping in order to work on getting your MAAT status signed off whilst getting experience in different working environments.
Doesn't have to be in practice. Many roles in industry are complementary. Also if you have a good telephone manner good Credit Control roles are an excellent training ground. (and bad credit control roles are basically call centres and of no use at all).
Do you have other skills that would open doors to get the roles? Personally I've found that my advanced Excel skills have got me roles that would otherwise have been closed to me. Do you have anything similar that can be pushed with agents?
Even if the MAAT is not signed off, after a couple of months temping you will know your more permanent address in order to obtain more cost effective MLR so being able to set up then.
Note that although they may say 45 days in my case I had my certificate back inside 7 so unless there's a sudden rush on I would expect the certificate returned far more rapidly than they are suggesting.
So, in short. The solution is either gain MAAT status or wait until you have a more permanent address for your business (also check your agreement with the landlord in relation to running a business from the premises as you may find that the lease restricts such use).
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.
I have worked as an Accounts Assistant a couple of months. I`ve played all my positive energy, enthusiasm, work really hard and in exchange I`ve got boss who treats me with disrespect and kitchen porter salary, so I`ve resign. I know life is not fair but I am the only one who can change it. At the recruitment websites you see 100 + application for each job. Why apply again ? I have already done it and got the result listed above.
So I am building my own job.
I just need a mentor.
Many thanks,
Adrian
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This is just my personal opinion. Advice should be sought from a suitably qualified Accountant.
P.S. I only ride a motorbike because I want to dry my clothes faster
Hello Adrian, Good Luck. I sent my c.v to many companies even offering to work FOC for a couple of days per week but have not had much in the way of a positive response. Apparently there are many communiy banks throughout the country, I think often called Credit Union banks. They often require voluntary help so might be worth trying. I shall have a look in this area to see if anything positive comes of it.
