I have been getting a few enquiries from businesses for bookkeeping work. I need to know what I am actually allowed to do for them. I am a member of the ICB and have the self-assessment diploma so I offer a tax return service for sole traders and am comfortable doing that. What I want to know is can I file the accounts for a company? or is it only an accountant who can do this? does it also depend on whether they are a limited company or not?
Before doing anything like this for a company I will need to read up on how to do it. Can anyone give me an idea of what is involved after the bookkeeping has been done.
Will depend on any restrictions being member of ICB places on you but anyone can file a set of accounts at Companies House for a limited company provided doesnt require an audit.
If the business is a sole trader or partnership then any accounts dont need to be filed anywhere, just the personal/partnership tax return needs filed with HMRC. This contracts with a limited company which must file accounts each year at companies house.
Generally people just file an abbreviated set of accounts at companies house rather than the full stat accounts.
The company also has to prepare full statutory accounts and these must be filed with the company tax return with HMRC each year. The accounts must be in IXBRL format (particular layout that is computer readable) and generally you need to buy software to do this. The company tax return can be filed on HMRC website if simple but easier to file if you have particular software.
Most small practices use VT to do the accounts and either BTC or Taxcalc to do the tax return. I use VT and Taxcalc at the moment but I am moving from VT to taxcalc for accounts production shortly so have a fully integrate package. You can also use VT for bookkeeping as well as doing year end accounts. VT costs about £180 per year and taxcalc costs about £480 for the unlimited tax module. Taxcalc accounts production costs £600 per year so bit more expensive than VT but given I have over 70 sets of accounts to prepare the additional cost per set of accounts of about £6 isnt too onerous.
I am not sure about the ICB, but I am a member of the AAT, and I couldn't get involved in any activities unless I got my practice licence, and I had to prove my competence in each field that I wanted to offer - and if I want to offer further services - I cant, until I pass their criteria on those services.
If I hadn't been a member, I could have filed accounts with Companies House/HMRC, as there is no qualification needed. But my membership to AAT comes with the condition that I cant do anything without my certificate.
Hi I am in the same situation icb with sa dip. As fr as my understanding goes you are not allowed under level 3 to do corp tax. However they have introduced level 4 qualification, which would allow you to. I have been considering this myself, but I think I've decided to go down the IFA route for this as I can sell myself as accountant.
Sorry if this doesn't read well, I'm on my phone!
You wont be allowed under your practice licence, to do company acocunts untill you have completed level 4. Although i am not sure if they have completely released all of the units. You can only get mocks for the accounts and managment accounts units, none of the tax units.
Nick
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Nick
Nick Craggs FMAAT ACA AAT Distance Learning Manager
Is it just me or does this feel to others as though people are taking first aid courses and being approved to work as brain surgeons!
How would anyone gain on the back of an ICB qualification (even at level IV) sufficient knowledge to be able to prepare limited company final accounts and CT600s with complete conviction that all advice that should have been given to the client in relation to their accounts and tax situation has been.
Thats accountants territory.
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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.
Is it just me or does this feel to others as though people are taking first aid courses and being approved to work as brain surgeons!
How would anyone gain on the back of an ICB qualification (even at level IV) sufficient knowledge to be able to prepare limited company final accounts and CT600s with complete conviction that all advice that should have been given to the client in relation to their accounts and tax situation has been.
Thats accountants territory.
Hi Shaun,
I agree, this is so far removed from a bookkeeping qualification. To be honest i can think of a great deal that isnt even covered by the AAT that you should know before attempting Ltd company accounts, e.g. S419 tax.
Whilst you cant expect qualifications to cover every eventuallity and disclosure, there should be certain things that are covered, which not all qualifications do.
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Nick
Nick Craggs FMAAT ACA AAT Distance Learning Manager
Would'nt you also need to prove some experience to the ICB, in order to be allowed to do the work? Surely its not just "pass an exam and you can offer the service"? I know of long time accountants using the ICB because they worked within practice, and didnt keep up the membership to ICAEW etc, but I always thought that their experience was added to the passing of the exam??
I had to prove 5 years experience with AAT, to go with my qualification.
I think to be able to complete CT you need to be a Fellow of ICB, which requires all the exams, 2 years ICB membership & 5 years industry experience plus interview, so not just as easy as passing an exam.
I did look into it previously & decided against it as I wasn't sure whether it would be recognised by clients/industry.
