1. You say he is a consultant/freelancer chartered accountant. Why is he wanting you to do his accounts rather than do himself?
2. No list of what you can claim against corporation tax as far as i am aware. All comes down to statue and case law.
3. You say he can claim clothing allowance. If he is a chartered accountant would be interested to hear what clothing he can claim.
4. Same above for meal allowances
5. Yes, you can file his accounts, provided he isnt getting them audited. But again if he is a chartered accountant why is he getting you to file rather doing himself?
Hey mark ,
This is his first free lance role he has always worked in industry.
I think he just doesn't want to do it himself , il ask him the question though .
I was looking at allowable deductions last night and they where a few of the things that came up , this is why I wanted a list as I don't want to find any issues.
Was just going to tell him to keep all receipts for lunch , petrol , mobile phones etc
I know this will bring the vat bill down but is that Same as bringing down the corporate tax ?
Like i said first client ( I'm not charging him ) I'm literally doing this for experience for first 6 months
Any advice would be great fully received
Nicola
I assume that the petrol receipts are for the VAT and that the client will be claiming mileage?
Don't forget use of home.
Is the client caught under IR35 legislation? (you give the impression of them being a one person ltd)
Like Mark I don't understand why a chartered is going to a bookkeeper to do their accounts?
Is the client a personal freind helping you get started perhaps?
I've worked with a lot of accountants (generally ACCA and CIMA) in corporate and do understand that even though most can do their own books many prefer to have someone else to do their books for them as they just don't have the time themselves. Where I struggle with this scenario is that as a rule people in that situation are well paid and would as a rule go to a practice of their own body and up as they know that they will get the best advice, are better protected and their accounts carry more weight.
Thats nothing against you Nicola, it's your client that I have difficulty understanding.... Are you sure that they are really Chartered?... Actually, are they CIMA and trying to just give the impression that they are ACA? (ICAEW/ICAS/ICAI) Thats the only explanation that I can think of.
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.
Apologies
My fault im not explaining myself very well.
He is chartered CIMA, I am part qual cima.
He is probably doing it to help me out more than the other way around.
I want to set up alone, he just started freelancing so its a win win , that's if I can get him all the right answers
My boss is an ACCA, I plan on picking his brains too :)
Just wanted to make sure I have correct back ground and knowledge.
Im a management accountant in my full time employment.
Nic x
I think that both Mark and myself had the same confusion when you said Chartered in the first post. Sure that you appreciate how revered that word is.
Pretty sure that Mark's reply would have been diffferent had you said Management Accountant as the balls drop into place with that one.
Overall for a contract accountant working in corporate the rules are basically the same as with IT contractors so you should be able to learn a lot about the expenses available by reference to the PCG (Professional Contractor Group) website.
Hope that helps and good luck with the client,
kindest regards,
Shaun.
__________________
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.
Just a couple of questions as you say this is your first client. Do you have PI Insurance and have you registered for AML? You don't want to get into trouble before you have even started.
Personally I'd suggest Nicola at the level of experience you seem to have that you just do the bookkeeping. Getting company accounts submitted with the correct disclosure notes with iXBRL tagging and all that stuff, corporation tax with deferred tax computations is not to be taken lightly. Do a great job on the bookkeeping and he will get a great price for submitting accounts by someone with more experience.
Hi Zoe,
I am waiting for my MAAT /MIP status which will register me for MLR. And when I receive this I will then get PI Insurance etc.
To be fair, I have not taken him on as a client and wouldn't until I am fully set up. Ive just had a conversation with him regards this so thought id ask for a bit of advice.
and thanks Rob, you are right I don't think I have nearly enough experience to submit the accounts or know enough about corporation tax, ill do the ATT course to try to find out more about that.
As part of bookkeeping though , am I allowed to offer management accounts? as that is my speciality?
I think ATT is a great qualification (It's what I have!!). Yes management accounts is a good offering, if you could get clients to sign up to your 'Gold Service', you could offer monthly/quarterly meetings where you go through the management accounts. I'm not sure how many bookkeepers offer this so may be a good differentiator.
So you would recommend ATT for taxation ? I have purchased a tax course but have two exams next week for cima so not really had a chance to look at it yet
Once exams are over im going to contact Kaplan regarding ATT
Hopefully MAAT/MIP status will be confirmed soon
Nic x
