Small private clients

Small private clients

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I am a CIMA qualified accountant and have worked in industry for 30 years with only 1 year in practice when I was 19.  I want to semi-retire in a year or so and want to take on some small clients to supplement my income. I was thinking some bookkeeping services, self assessment and sub contractor returns.  I understand also, that although I can't audit, I can examine account of companies that qualify eg turnover <£5.6m and sign them off.  I have a couple of questions about all of this;

  1. Would I need a practising licence from CIMA?
  2. Would I need professional indemnity insurance? And could I get that if I didn't have a licence?
  3. Do I need to register as an agent with HMRC to submit tax returns, SAs etc on behalf of my clients?
  4. What else do I need to do (other than advertise/market my services)?

Replies (16)

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By qhas
05th Feb 2015 20:07

CIMA
Practising certificate NO
PI YES it would be useful and NO you do not need a practising certificate to get PI. Yes you need to register with HMRC. You need do nothing else . Shoot on it.

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By qhas
05th Feb 2015 20:08

CIMA
Practising certificate NO
PI YES it would be useful and NO you do not need a practising certificate to get PI. Yes you need to register with HMRC. You need do nothing else . Shoot on it.

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By Gary Hornby
05th Feb 2015 21:29

Answers

1. Most definitely YES (unless you resign your membership)

2. Yes, Yes

3. Yes, you need agent status to deal with HMRC on behalf of your clients

4. Purchase and study (at a minimum) the current ATT manuals. Might take a year or so of concentrated effort.  Then decide how you will maintain and expand your knowledge before you let yourself loose on the paying public.

 

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By cparker87
05th Feb 2015 22:38

ML
Ou'll also need to comply with money laundering regs.

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By FAY7H
06th Feb 2015 00:51

I am also CIMA but practice under the AAT and after checking with CIMA I didn't need a practicing license under them, just the AAT. I recommend you get PI to protect yourself, and yes you will need to register as an agent to be able to make the necessary submissions.

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Replying to susanreed:
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By elovett
06th Feb 2015 14:13

Thanks FAY7H, but did CIMA say you didn't need one because you were going to get one under AAT?  I'm not AAT, so wouldn't have a choice.

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Replying to carnmores:
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By FAY7H
07th Feb 2015 15:54

As I was AAT they insist that if you practice you must have their practising license. I checked if the same applied with CIMA and they said not.

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Replying to carnmores:
David Winch
By David Winch
07th Feb 2015 16:20

Practicing certificate

elovett wrote:

Thanks FAY7H, but did CIMA say you didn't need one because you were going to get one under AAT?  I'm not AAT, so wouldn't have a choice.

Further information about CIMA practicing certificate obligations is HERE.

David

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By Stuart.thomson
07th Feb 2015 15:45

Examine accounts
What do you mean by "examine"?

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Replying to spilly:
Stepurhan
By stepurhan
06th Feb 2015 09:00

When is an audit not an audit?

Stuart.thomson wrote:
What do you mean by this. Stat accounts which are not subject to audit but have an accountants report or similar are signed off by someone with an audit license. I do not think can do this. You can of course examine the accounts advise, etc but sign off is only for auditors (even when it is not an audit).
Exactly what do you think "signing off" a set of unaudited accounts involves that would require an audit license? Accountant's reports are called that because they are signed by accountants, not auditors.
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Replying to spilly:
paddle steamer
By DJKL
06th Feb 2015 09:48

Well, that is my practice ruined

Stuart.thomson wrote:
What do you mean by this. Stat accounts which are not subject to audit but have an accountants report or similar are signed off by someone with an audit license. I do not think can do this. You can of course examine the accounts advise, etc but sign off is only for auditors (even when it is not an audit).

Of my god, you mean having the following is wrong!!!!!

 

XXXXXXX Limited

 

Report of the Accountants to the Director of

XXXXXXXXX Limited

 

 

As described on the balance sheet you are responsible for the preparation of the financial statements for the year ended 31 March 2014 set out on pages three to seven and you consider that the company is exempt from an audit.

 

In accordance with your instructions, we have compiled these unaudited financial statements in order to assist you to fulfil your statutory responsibilities, from the accounting records and information and explanations supplied to us.

 

 

 

ABC Bodgers Limited

Accountants

XXXXXXX

Edinburgh

Midlothian

EHx xxx

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By MissAccounting
06th Feb 2015 14:21

Without wanting to sound too rude but what makes you think you are in a position to offer accountancy and taxation services to small private clients?

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By Hknightas
06th Feb 2015 14:23

ICO

Don't forget to register with ICO

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By accountsdragon
06th Feb 2015 14:26

Clients couldn't care less

I'm a CIMA MIP.  As mentioned earlier, CIMA expect you to register and make dire threats if you practice without a certificate.  However, I know of CIMA people who aren't registered.  It costs an additional £118pa for your registration, and you have to complete this annually. 

The one big advantage of registering is that our AML is done through CIMA.

CIMA, like the other bodies, expect you to find a 'continuity partner' in case you fall under the proverbial bus.

Having said all that, there's no real need to bother.  CIMA are not that interested in us, and don't provide very much information.  There is a very good LinkedIn group, but that is not run by CIMA.  Clients rarely ask if you are qualified, and don't care what your qualification is. 

Dare I say, get your PII and look at AML on HMRC web site, the see what happens with finding the clients you want.  Then, if you are happy with the way it is going, complete your registration.

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By Stuart.thomson
07th Feb 2015 15:44

Correction
I have corrected my post. It's was a fall back from a colleague a few years ago probably in hindsight I think trying to grab (successfully) the fee income. However i cannot find any legislation to support my prior statement so assume I was misinformed. The above explanation does make complete sense too.

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David Winch
By David Winch
07th Feb 2015 16:16

As others have said you absolutely MUST be registered with a body which supervises your compliance with the Money Laundering Regulations 2007.  That body will be either a professional body of which you are a member (in your case CIMA, via a practicing certificate) or HMRC.

Failure to register with a supervisory body is a criminal offence for which the maximum punishment is 2 years' imprisonment.

Note that anti-money laundering registration with HMRC is a quite separate matter from registering as a tax agent with HMRC.  See THIS.

David

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