This is my 1st post to this site, although I have dipped in and out to read posts in the past.
I am hoping that someone can give me some advice please.
I have decided to take the plunge and set myself up as a self employed book keeper. I am a qualified accountant and have a lot of corporate tax experience so am comfortable with what I am doing but am a little out of date on the technical side of things. I need advise on a couple of fronts please, setting up and new client.
Re setting up, I think I need to do the following:
Get a signed 64-8
Get a signed engagement letter of sorts - can anyone recommend a good place to get a draft format one that can be added to etc?
Liability insurance - what sort of level do you think I should take out and does anyone have any recommendations of a good company to use please?
Register myself with the IR
RE new client
I have been approached by some one and have been asked to undertake some work for them. I am a little unsure as amongst the work they would like me to do is Payroll. There are only 2 employees so my costs to do that would be low and I would need some sort of software so that I could submit electronically. Has anyone used the free software from the Revenue for payroll and is it any good? Also I do recall someone saying that payroll is becoming more hassle than its worth now - why is this?
They would also like me to prepare the self assessment. I have only completed my self assessment and apart from my studies have little experience of personal tax and I really do think that a little knowledge can be a dangerous thing. Are there any books that anyone can recommend that summarise personal tax well ? - I expect it would need to be updated annually so would be an ongoing expense. Or are there some great websites that I could look at.
I have received an email from this client suggesting what they would like me to do and the time that they think it should take me. I feel uncomfortable with the time they are suggesting as I am a great believer of checking the figures back to source and hence that would be more time consuming. But I figure if I am preparing work for them I need to feel comfortable with what is being submitted. Is this something that could be dealt with in an engagement letter - ie figures provided for the VAT returns will be provided by the client and will not be checked back to the source documents by the book keeper etc"
No allowance has been made for setting him up as a new client on software - turnover is low £120k so I thought I could just set up excel spreadsheets. What do other people do, do you buy your own sage software? I ahve heard that can be very expensive if you want to use it for multiple businesses.
I will also need to get the information from the prior accountants - does any one know where I can get or have a copy of a standard letter that can be sent to the old accountants asking for information?
Sorry for the long post but I appreciate your thoughts.
This is my 1st post to this site, although I have dipped in and out to read posts in the past.
I am hoping that someone can give me some advice please.
I have decided to take the plunge and set myself up as a self employed book keeper. I am a qualified accountant and have a lot of corporate tax experience so am comfortable with what I am doing but am a little out of date on the technical side of things. I need advise on a couple of fronts please, setting up and new client.
Re setting up, I think I need to do the following:
Get a signed 64-8
Get a signed engagement letter of sorts - can anyone recommend a good place to get a draft format one that can be added to etc? Speak to your professional body
Liability insurance - what sort of level do you think I should take out and does anyone have any recommendations of a good company to use please? Speak to your professional body
Register myself with the IR Get agent account set up
RE new client
I have been approached by some one and have been asked to undertake some work for them. I am a little unsure as amongst the work they would like me to do is Payroll. There are only 2 employees so my costs to do that would be low and I would need some sort of software so that I could submit electronically. Has anyone used the free software from the Revenue for payroll and is it any good? Also I do recall someone saying that payroll is becoming more hassle than its worth now - why is this? Not a hassle at moment but will be when auto enrolment comes in i would guess
They would also like me to prepare the self assessment. I have only completed my self assessment and apart from my studies have little experience of personal tax and I really do think that a little knowledge can be a dangerous thing. Are there any books that anyone can recommend that summarise personal tax well ? - I expect it would need to be updated annually so would be an ongoing expense. Or are there some great websites that I could look at. Tolleys always a good starting point. I have their online library.
I have received an email from this client suggesting what they would like me to do and the time that they think it should take me. I feel uncomfortable with the time they are suggesting as I am a great believer of checking the figures back to source and hence that would be more time consuming. But I figure if I am preparing work for them I need to feel comfortable with what is being submitted. Is this something that could be dealt with in an engagement letter - ie figures provided for the VAT returns will be provided by the client and will not be checked back to the source documents by the book keeper etc" Just put disclaimer in the accounts "prepared based on info supplied by client and not audited" or something along those lines. Cant remember what my software says.
No allowance has been made for setting him up as a new client on software - turnover is low £120k so I thought I could just set up excel spreadsheets. What do other people do, do you buy your own sage software? I ahve heard that can be very expensive if you want to use it for multiple businesses. I use taxcalc, Fully integrated accounts and tax package but I have about 180 clients.
I will also need to get the information from the prior accountants - does any one know where I can get or have a copy of a standard letter that can be sent to the old accountants asking for information? Your professional body should have a template
Sorry for the long post but I appreciate your thoughts.
Cost is one issue plus some really good payroll software providers are not wanting to provide a full service, which may mean if you have CIS you may need two payroll software products.
One Payroll company states - it is important to understand that our software has not been designed to be a fully comprehensive Auto Enrolment solution. There are numerous duties an employer needs to perform to ensure compliance with the new legislation, many of which are well beyond the scope of our payroll software.
I for one am thinking of ditching my payroll offering!
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
You will also need to be registered with HMRC Money Laundering Regulations (MLR) The cost is £110 per year.
PI Insurance can be found at the bottom of this website from £78
An engagement letter is available if you become a full member of this site.
I would personally recommend Moneysoft to do your payroll (You can't print payslips from the HMRC one apparently) Its about £140 but charging £10 a month to your potential client will virtually recover the cost.
PS Note to Shaun - I can't remember what email address I used when becoming a full member last year. I've tried the ones it might be but its saying not recognised, can you help?
