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My wife is setting up a new practice, can I help?

Wife is setting up new practice, can I help?

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Hi guys,

My wife is planning to set up her own practice at home, she is unqualified and she is not a member/student of any supervisory bodies.
She will be sole director and sole shareholder.

She is not expecting this to be a big business,  at the moment, she is only expecting 3-5 clients through referral from friends.

im an ACCA member with a few years working in a practice. But I intend to stay in my current job and only help her out in weekends. Got a few questions here, 

1. Can I help her with some of the work eg bookkeeping, VAT return, payroll, year end accounts (she will be the one signing off the accounts). 

2. I might need to talk to her clients as I have more experience to discuss about bookkeeping, accounts etc. Does it cause any issue provided that I do not tell her clients that I'm an ACCA? 

3. if she goes ahead with this plan, I understand that she will need to register with HMRC for MLA, get PI insurance, what else does she need to do in terms of legal side of things? 

thanks

Replies (16)

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By Matrix
29th Dec 2021 01:44

Notwithstanding lying to your employer, professional body, HMRC, insurer, clients and maybe your wife, I doubt running a practice for 3-5 clients at weekends is viable.

Thanks (2)
Replying to Matrix:
Slim
By Slim
29th Dec 2021 15:47

I very much doubt it unless they are paying 5 figure fees. It really isn't worth the ba.llache

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By Wanderer
29th Dec 2021 01:45

Jstax wrote:

Wife is setting up new practice

Does she know?
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By Calculatorboy
29th Dec 2021 06:19

Sounds like you are trying to do a bit of accountacy work on the side.... mr shadow director

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By paulhammett
29th Dec 2021 08:20

So what Accounting experience does your wife actually have?

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By SXGuy
29th Dec 2021 08:22

3. ICO fee

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Replying to SXGuy:
the sea otter
By memyself-eye
29th Dec 2021 16:00

4. GDPR

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By paul.benny
29th Dec 2021 08:37

I suggest checking with your professional body. This is very easily be construed as fronting especially given your point 2.

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By lesley.barnes
29th Dec 2021 10:08

I think you might need to have a re-think - it doesn't sound like your wife has any accountancy experience given the basic work you are going to do. Point 2 is the give away she is offering accountancy services but you might be talking to clients as you have more experience but she is signing off the accounts? How can she take responsibilty and sign off the accounts if she is doesn't have enough experience to discuss them with the clients?
If you are only thinking about 3-5 clients is it worth the stress of ACCA finding out and investigating, your employer finding out plus insurance, MLA costs? (I'm assuming that there is a reason why your wife is fronting this rather than you and your wife being your employee?)

Thanks (4)
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By kaff
29th Dec 2021 10:46

What's your wife's thinking behind setting up as a limited company for such a small venture?

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By David Ex
29th Dec 2021 11:36

Assuming you are asking in good faith, the obvious solution is to speak to your professional body and ask them.

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By Hugo Fair
29th Dec 2021 11:38

"unqualified and she is not a member/student of any supervisory bodies" but "she will be .. signing off the accounts"

To answer a question with a question ... How do you see your wife's proposed business managing to work if you are not involved in ANY capacity?

Thanks (4)
the sea otter
By memyself-eye
29th Dec 2021 16:05

Take her into a dark, dank room and shout loudly "Don't do it".
The days of micro accountancy one man (or woman) band businesses are over. These days the cost of MTD. GDPR, MLR, PI, and BLM cover are onerous.

BLM? - Buy Lunch on Monday - I made that one up BUT NOT THE OTHERS!

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By Jstax
29th Dec 2021 20:58

Thanks for all the responses. Looks like this doesn’t sound like a good plan at all. I’ll wait until I get my PC then

Thanks (5)
Replying to Jstax:
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By paulhammett
29th Dec 2021 23:43

A sound decision.

Thanks (1)
Replying to Jstax:
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By paul.benny
30th Dec 2021 11:35

Credit to the OP for taking on board the advice. Too many arguments or tantrums from people who don't like what they hear.

Thanks (4)
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