I have been approached by someone who wants me to provide a draft P&L and a covering letter which they can show to the Home office.
Basically, the person is registered as self employed and has been working as a contractor for the last 10 months. As this hasn't been a complete year, they want me to show their income for the 10 months.
Therefore my question is:
- Is this a simple P&L showing the 10 month actual income?
- How do i verify the 'income' from contracting is correct? Would I contact the company being invoiced to confirm?
Do they invoice the company they are contracting for? If so seeing the invoices will be sufficient proof backed up by payments into your clients bank account.
Any expenditure should be backed up by receipts.
I can't see it taking more than a couple of hours (remember though you'll need to do the MLR checks first) so maybe 3 hours charge?
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Hi this isn't to question the OP, just one in general - I thought to do this, and for it to be acceptable, verification was needed from an AAT MIP or above, is this still the case? Thanks
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Johnny - Owner of an overly-active keyboard.
A man who can read, yet doesn't, is in no way wiser than a man who can't.
Found it -
(ii) If the earnings were for work done while the applicant was in the UK, such evidence must come from an accountant or accountancy firm in the UK who is a member of one of the following recognised supervisory bodies:(1) The Institute of Chartered Accountants in England and Wales (ICAEW),(2) The Institute of Chartered Accountants in Scotland (ICAS),(3) The Institute of Chartered Accountants in Ireland (ICAI),(4) The Association of Chartered Certified Accountants (ACCA),(5) The Chartered Institute of Public Finance and Accountancy (CIPFA),(6) The Institute of Financial Accountants (IFA),(7) The Chartered Institute of Management Accountants (CIMA),(8)The Association of International Accountants (AIA), or(9) The Association of Accounting Technicians (AAT).
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Johnny - Owner of an overly-active keyboard.
A man who can read, yet doesn't, is in no way wiser than a man who can't.
Hi.
Sorry, I can't see your name as I'm using my phone atm. What I ment was, by my post, is that according to what I pasted, unless you are a member of any of the bodies on the list, you / we / us, are unable to sign any form of confirmation. In fairness you could well be ACCA for all I know. I was just putting it there for reference. The reason for such is incase it happens to slow down the process between your guy and the home office.
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Johnny - Owner of an overly-active keyboard.
A man who can read, yet doesn't, is in no way wiser than a man who can't.
P&l should be fine for this. I guess no need for a bs?
Im in the camp of - if you produce a self assessment for a sole trader then you also provide P&L and balance sheet, so I would suggest that a balance sheet would be appropriate here.
Just a slight note of caution based on one scenario we had on here fairly recently. Is this a rush job? Just want to make sure that you do your usual client checks/MLR etc as John suggests before responding to such a request, and not be pressured into providing something on a rapid turnaround without doing all your due diligence type bits first. You mention this person is not a UK national but do they have a right to work in the UK?
If you are in any way uncomfortable with it - decline to do it gracefully (and perhaps suggest a bigger firm?)
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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
