i have a question about licensing. I am a MAAT (full member of the aat) and on their website it states that I must hold a valid licence if I am self employed or running a business, which I am not yet but would like to do. This is expensive and is a large application.
I have read online that you don't need a licence to provide bookkeeping services, that as long as you are MLR covered and have the correct insurance and experience then it is not illegal to work without a licence.
So my question is: is it illegal to provide bookkeeping services without a licence?
Or is it simply a requirement of AAT and being a member to hold one? And if so should I drop my membership in order to practice without this large expense and hassle? I am aware that AAT has its perks and lends some standing when advertising etc but it seems so official and daunting to go down the licence route if it's unnecessary.
If I keep my membership but practice without a licence what are this consequences of this?
I hope someone can shed some light on this! thanks
For now I will just tackle this aspect of your question.
The land is littered with the corpses of people who tried this on. Bringing the AAT into disrepute.
The charge of being a full member and not acting under their licence can see you reprimanded (works a bit like a VAT surcharge notice), fined (varies massively, latest one I saw £3k, have been larger), or expulsion or indeed a combination of such sanctions.
Given you have already paid for the full MAAT membership (I assume that is the case rather than you having just passed the exams) so are half way there on the fees, why not go the rest of the way? Especially when you state you have prior experience so getting sign off of your application will be a doddle plus a mere couple of hours of work to fill said application in.
Of course you could resign your membership and pay for MLR elsewhere, which will mean the cost is about the same or more anyway (unless you haven't paid for MAAT as yet.
__________________
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 can see you have been online, but not added any comments, but I wanted you to read that first message in isolation given it's importance for future decision making, however I will now get to the rest of your question.
You don't need to be 'licensed' to be a bookkeeper, but obviously then you do not have membership of, access to resources nor the protection of a governing body, but what you must have is MLR.
No MLR and practising = fines and possible prison time.
As I indicated above, by the time you have paid out for MLR this year via HMRC you might as well have finished the fee paying with the AAT. Next year, that route would be less costly by about £100. So consider what you are actually giving up for £100.
Other option, join another association, but for this year, again, that will cost you more than finishing off your app to get MLR with the AAT.
If you work outside of the AAT, but remain a member - punishable by fines/expulsion, I covered.
As soon as you drop your membership, you CANNOT refer to yourself as MATT or refer to the AAT in any way in marketing( no, not even to say you are qualified), on your website, any adverts, nor on businesscards. They obviously cannot take away the fact that you have passed the exams, but your cannot claim any affiliation with the association you are no longer part off. Very common, same with a lot of such governing bodies across Accounting, Banking, Law and many others.
__________________
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 suspected there would be very negative consequences to that but I am glad it's been verified, I hadn't planned to go down the route of setting up without a licence whilst MAAT but I didn't know much about it.
I have been MAAT for a few years and have actually just paid out for my yearly fees, however if I become licensed by them it will cost me an additional £186 per year (for an accountants licence as I want to do payroll too and the bookkeepers licence doesn't cover it) and then for MLR through the AAT is £80.
So for the year I'll have paid £266 plus my MAAT membership which is £143 (£409 in total)
Whereas if I cancel my AAT membership now, although I'll lose out on the £143 this year in all future years I would be looking at paying only the MLR (likely through HMRC) for £215 (£100 for the application and premises fee of £115) and my indemnity insurance.
So, overall I will save £194 ongoing per year if I opt out of my AAT membership.
I have taken into account all your warnings and won't be doing anything I shouldn't, you have been very helpful informing me of what I need to know - thank you!
I don't intend to start up until next year regardless as I am moving house in the next few months but I want to know as much as possible beforehand.
So, overall I will save £194 ongoing per year if I opt out of my AAT membership.
Hi Abby
It would actually be £294 ongoing because the HMRC is only £115 after the first year. What you need to do is weigh up the pro's of being MAAT. It boils down to an extra £5.65 a week, something I would definitely consider worth paying if it was me.
__________________
John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
