I have got my first client today!!! Haven't stopped grinning since I had the phone call!!!
I am starting with him at the beginning of November, so shall I make that the beginning of my financial year? And I need to actually register with HMRC as self employed - will my employer find out at all?! That will cause me a problem if they do as I am not ready to leave F/T work yet... I am registered with PI and AML so have that all sorted! Drafting up letter of engagement too. Anything else?
No, your employer won't find out officially. It's possible they could get wind of it indirectly from other sources (someone mentioning it in passing for example) but unless there is a clause in your work contract saying you can't work self employed then I don't see an issue with it anyway.
Have you registered as an agent yet? I would certainly recommend you do, as then you can add your clients to your online account and deal with HMRC on their behalf.
You can then either run your financial year up to 31st March or 5th April, to keep in line with the tax year, or a full year to 31st October. It's entirely your choice but if the latter I would learn about base periods, if you're not already aware of what they are.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Hi Caroline Im a bit confused as in an earlier post you mentioned having taken on a client already and having had advice from someone about whether or not sole trader status or limited was the better option. So has that same person not given you advice as to when to end your year, as that surely should have been part of the 'best option' conversation? Are they going to prepare your year end accounts, if so - worth talking to them and gauging any benefits to you personally of the timing of the year end eg earlier in year year end dates, losses. Certainly if you havent started trading yet/registered with HMRC as self employed, then 1st of November is a good start date, unless of course you have told your PII insurers you have already started in which case you need to use that date.
Might be easier to be honest with your employers and tel them its just to earn extra cash and expand your abilities! Be careful though if there is a 'non compete' within x miles clause in your contract, if you are working for an Accountancy firm, as that may come back to bite, although we dont know your current job position so cant say much more other than what John has added.
What services are you supplying to the client and what software? Set up reminders of some sort to process things at the right time,eg VAT, as they will now completely absolve themselves of the responsibility of remembering (or will try to!)
Little things like take a note or the owners credit/debit card numbers ( just the last four digits) - makes life a lot easier knowing what to do with those small receipts/faster processing when you often have to wait a while for Bank statements.
edited to add the correct capitalisation in John's name - sorry John for missing it out!
-- Edited by Cheshire on Saturday 22nd of October 2016 03:03:09 PM
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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
Hi Caroline Im a bit confused as in an earlier post you mentioned having taken on a client already and having had advice from someone about whether or not sole trader status or limited was the better option.
Ah cheers Joanne, I just took the post at face value, checked and I've even responded to the previous thread.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Thanks Guys. I try and pop onto here as often as I can, but seem to be so busy with work and training and marketing I dont always manage to be regular!
This is my first client that is not a friend, friend of a friend or referral. Hence my exuberance!!! (Pizza and fizz were lovely!). So now I need to step up a gear as this is 'real' as opposed to friends... does that make sense?
I am just waiting for my paperwork from IAB, posted about 10 days ago, which gives me PI and AML licensing. I have not yet contacted HMRC ref self employed but can do that this week.
My Accountant is not in my area (he is in the area I am moving to next year) so taking on board your comments to this and my other post I am going to see an Accountant by where I currently live to get some proper face to face advice. I think at this stage it will be the best option for me, rather than talking to my future accountant over the phone.
I am really excited and cant wait to make the jump and do bookkeeping full time!
I try and pop onto here as often as I can, but seem to be so busy with work and training and marketing I dont always manage to be regular!
I know the feeling. Always here looking after the place but not posting anywhere near as much as I was which unfortunately includes the important aspect of saying well done to people when things go right for our members.
So sod the work for two mins and a quickie to congratulations on bagging the client Caroline and I hope everything goes well for you.
My one bit of advice is that you work to the principle that after a period of two years, for your own financial protection no more than 15% of your business income should come from any single source. That both goes some way to protecting you financially and also drives you to find ever more clients in attempting to keep to that statistic.
Just make sure that the ML is in place and that you also perform the necessary MLR checks and keep them well documented in case of inspection.
Good luck,
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.
