Hi, I have been a bookkeeper for 17 plus years but have never done any formal qualifications. I have worked both in practice and in industry, I have experience across the board including payroll and CIS (mostly Sage but I can bookkeep on excel too), just never bit the bullet and did the training. All my training was on the job.
I'm currently employed as an office/accounts manager for an estate agents.
My problem is one of the directors has asked me to book keep another small business he has and I need to find out the best way I can go about the MLR (read the cheapest as I'm on a low income!). The way I understand it is there is an initial cost, a cost per premises and the fit and proper test cost which is an awful lot to fork out just for a tiny amount of self employed income. I don't think he would pay it for me.
I have accountants that will give me a reference if I was to apply to ICB for exemption through experience or I could do AAT if I could get some kind of funding (would I be covered by AAT if I only did level 2 though?), would either of these be an option to bring the cost down.
I'm quite happy being employed, I'm not looking to start up my own bookkeeping business but it would be nice to have the option to do some freelance work to boost my income.
Hi, I have been a bookkeeper for 17 plus years but have never done any formal qualifications. I have worked both in practice and in industry, I have experience across the board including payroll and CIS (mostly Sage but I can bookkeep on excel too), just never bit the bullet and did the training. All my training was on the job.
I'm currently employed as an office/accounts manager for an estate agents.
My problem is one of the directors has asked me to book keep another small business he has and I need to find out the best way I can go about the MLR (read the cheapest as I'm on a low income!). The way I understand it is there is an initial cost, a cost per premises and the fit and proper test cost which is an awful lot to fork out just for a tiny amount of self employed income. I don't think he would pay it for me.
The total cost for MLR will be £210 this year, £115 yearly thereon (subject to increases at the whim of HMRC) Download form from MLR from HMRC and tick the box that says you're an accountancy provider. The fit and proper test doesn't apply to accountancy providers so it will skip that bit when you're filling it in.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
I agree with John - no need for fit and proper test. The first year fees have just gone up via HMRC. How would this compare to membership costs? My understanding is - if you go to do AAT at level 2 you would just be a student member, which doesnt cover you.
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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 would need to complete level 4, gain MAAT status and then gain MIP status (Member in Practice) to be covered by the AAT. I've also had to pay out for MLR cover by HMRC as I've only just finished level 3 AAT and have yet to complete level 4. It's a pain as I'm only doing a little bit of bookkeeping along side the full time job but it may build up in future. You should also get PII cover and may need to register with the ICO for Data Protection. There is a good section on here for setting up in business.
Alys
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Alys
Alys Stuart, Stuart Nicholls Accountancy Services, Preston, Lancashire.
If a 'client' is contributing to an MLR fee - wouldnt this potentially cause a conflict of interest, particularly if there are any issues, or negate it?
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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
would cause issue with sections 120 (objectivity) and 220 (Conflicts of Interest) of the IFAC code of ethics.
The situation would be judged similar to accepting engagements on a contingent fee basis (no saving no payment).
The specific threats to objectivity are Familiarity and Self Interest.
all the best,
Shaun.
p.s. for you Jo.
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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.
Its a tax deductible expense and even before the tax benefit it equates to just over £4 per week for the first year and then about £2.21 per week going forwards.
Would you not make a lot more then £4 per week extra by taking on the second business?
Also you should not look at this as a one off but rather the first and having MLR cover puts you in a position to legally take on others.
You have to appreciate that running a business there will be costs.
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.
Lol Shaun, I've just scratched a similar reply because I think Michelle is only looking for a bit of extra pin money and doesn't really want to set up as a bookkeeper, so our replies would have been the same.
Alternatively Michelle, he could just pay you to do it as an employee, obviously at basic rate tax.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
I agree with the Shaun's comments..... It might be a good way of earning a bit of extra money. Or as this guy obviously rates you enough to ask you to do some additional work for him, reckon you should go for a pay rise, if nothing else.
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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
I definitely don't want to set up on my own, it's literally only an analysed cash book the accountants want, it's just the initial outlay when things are tight already (I have a daughter just off to uni so trying to conserve money for when my tax credits go).
I'm working on a payrise already lol, that would solve all my problems! (it's not this boss that is responsible for that though unfortunately - if I told you what I earn for what I do, you'd cringe... but I love my job!)
Thanks for all the replies, you've all been really helpful :)
