I am new to this forum. I apologies in advance if my questions looks stupid or annoying. kindly help me the best you can.
I have done Bachelor of Commerce and completed AAT level 3. I am currently working in an accountancy firm, I have got over four years experience working on Payroll, bookkeeping,vat's, limited companies accounts and currently pensions. I am planing to starts my own accountancy business.
I have asked this question from many but didn't get satisfactory reply. Some saying, I definitely require a practicing licence, while other says, if I know what I am doing based on my experience, I am fine without a licence.
Is it a legal requirement to have a licence from a body to starts own accountancy business or some one with an experience can starts without licence? I am aware, that I would require Professional indemnity insurance, if I have my own firm.
if a licence is must, Is there any rewarding body, who can issue me practicing licence based on the bases of my education or experience?
Many thanks in advance.
Kindest regards,
edited by moderator to remove innocently inserted inadvertant link (use of .com inserted an unintentional hyperlink)
-- Edited by Shamus on Sunday 6th of November 2016 12:20:15 PM
Your professional body will need you to have a practicing certificate through them if you continue to be a member of them. With AAT you can continue as a student offering limited services provided that you make no mention of them. To start even the smallest practice you really need to have completed level IV taking in both of the tax modules.
Once you have completed level IV then because you already have the experience moving up to being an MAAT MIP is pretty much a formality.
If you do not become a MIP then really your option is to stand down from your professional body and work as an unqualified accountant. Is that really worth the risk that regulation will not change to protect the word accountant in statute? Also you would be losing a networking opportunity amongst other AAT members.
No matter what you do you MUST have MLR cover either through HMRC (if you do not have a practice certificate) or through your professional body who you have a practice certificate with. If you don't have that you face an unlimited fine and possible imprisonment.
There are always bodies out there who will be willing to take qualified accountants under their wing to allow you to practice under their banner such as IFA or AIA but the key there is qualified accountants. They are looking for fully qualified ACCA, CIMA or AAT who are finding difficulty gaining practicing certificates under their original body. You are at the minute only PQ (level III) AAT which is not going to get you a practice certificate.
You could try the bookkeeping bodies IAB or ICB as they allow their members to go beyond trial balance into accounting territory and have lower entry requirements than the accounting bodies. However, if you are looking at that route then consider it from the networking side, not the practice certificate as you could just as easily set up with no practice certificate and MLR direct from HMRC.
So, in answer to your direct question. No, you do not legally need a practice certificate but to not have one from an accounting body (if you are starting an accountancy practice) may come and bite you on the bum later.
My advice is go slower, get your level IV and move up to MAAT MIP before starting your practice.
kindest 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.
In addition to what Shaun said - with your existing quals you could look at being a bookkeeper with the AATs new AATQB qual, but the services you can then perform are pretty restricted - check out their website. But - is it not at least worth finishing their level 4 so you can then go for MAAP MIP - should be an easy finish given the job you are doing. Your experience of working within an Accounts environment should get you the sign off at MIP stage. Then I would say - also look at the ATT quals.
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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
