Share this content
11

Prof Indemnity Insurance for Man Accountant?

Any advice relating to setting up a new company? Any recommendations for an insurance company?

Didn't find your answer?

I am ACCA qualified (many years), and have recently set up a Limited compnay through which i intend to provide Management Accounting and other business services (e.g. Business analysis, Project Management, Efficiency/quality improvements, costing work etc), none of what i intend to do will include significant elements of Tax or anything requiring a practicing certificate.  Will also be in line with IR35 obv

 Just wondering what experiences any of you have of doing this? happy to share their story, was it successful? tips? also, looking for PI insurance and recomendations on what company to go with?

Replies (11)

Please login or register to join the discussion.

By johngroganjga
11th Oct 2019 15:51

How is it that you do not need a practising certificate to hold yourself out in they way you explain?

Thanks (0)
Replying to johngroganjga:
avatar
By Accountant A
11th Oct 2019 16:01

johngroganjga wrote:

How is it that you do not need a practising certificate to hold yourself out in they way you explain?

Possibly not, apparently:

https://www.accaglobal.com/content/dam/ACCA_Global/Members/Doc/Am_I_in_P...

Thanks (0)
Replying to Accountant A:
avatar
By Ali Edmunds
11th Oct 2019 16:25

Not unless I was intending to provide tax planning advice, be expected to liaise with HMRC and/or Companies house on behalf of a client.

Thanks (0)
Replying to Ali Edmunds:
avatar
By JoF
12th Oct 2019 11:45

How does that work with the ACCA's comment re
''preparing a report or certificate concerning a person's
financial affairs that will be seen by a third party
(including, for example, confirmation to a potential lender)'' ?

(management accounts for the size of companies you will be aiming for will be/could be required by their bankers)

Plus is your business name ''Complete Accounting and Business Services Ltd'' not a bit misleading as to the services you will be providing?

Thanks (2)
avatar
By Accountant A
11th Oct 2019 15:56

Did you do any market research on this? I just wonder what demand there is for the services that you describe. Small businesses probably don't know what they might need and possibly wouldn't be willing to pay. Larger businesses may either have the expertise in-house or use their accountants, who will already know something about the business.

I don't know what your financial circumstances and other income are but might you not be better off acting as a sole trader until you are certain the business is viable?

Thanks (0)
Replying to Accountant A:
avatar
By Ali Edmunds
11th Oct 2019 16:22

Bit of a long winded back story...I was diagnosed with a life limiting illness a few years ago and was advised to retire on ill health (age 46) life expectancy was 1-2 years. I'm now 49 and my condition is stable and doctors are saying another 5-10 years. Long story short I'm bored and really miss what I was good at, but my pension restrictions are such that I am unable to earn in excess of of the LEL £6k approx. So the only way I can work is via a Limited company where my husband as company director received the majority of dividends. Financially I don't have to work, but I want to. There are contracts available via recruitment agencies that are 'outside IR35' restrictions so I'm content in knowing that I will have Ltd co. work. I just wondered whether others had experience of setting up similar businesses that grow.

Thanks (0)
avatar
By Richard Grant
11th Oct 2019 15:59

My only thoughts would be to consider the size of the companies you intend to work with and how will you get yourself in? Quite a bit of what you propose will be offered by practices that are already servicing them, (not as good as a 100% management accountant but they will have a go).
So my recommendation would be to try to team up with a mid size practice as a consultant. If you can sell it to the practice then they will happily sell you as an add on service (for a cut of the fees).

Thanks (1)
avatar
By paul.benny
11th Oct 2019 16:37

A few pointers from personal experience
- If you need to do payroll for yourself, HMRC basic payroll tools does the job adequately and it's free
- as a microcompany, you can do your own statutory accounts and fax filing using Companies House tools. Again, free
- there is a lot of good information readily available on gov.uk

For PII, you only find whether they're good if you have a (potential) claim. I'm with AXA and you can get a decent cashback on your premium if you buy via Topcashback.

Thanks (1)
Replying to paul.benny:
avatar
By Ali Edmunds
11th Oct 2019 17:09

Excellent advice, thanks. I've just had a quote from AXA and its reasonable too in comparison to others I've looked at today. Plus..topcashback! never heard of it before but so glad I know about it now. Thanks Paul!

Thanks (0)
Replying to Ali Edmunds:
avatar
By Accountant A
11th Oct 2019 17:15

Ali Edmunds wrote:

Excellent advice, thanks. I've just had a quote from AXA and its reasonable too in comparison to others I've looked at today. Plus..topcashback! never heard of it before but so glad I know about it now. Thanks Paul!

If you have been on the AXA site you need to delete the cookies on your computer before going back to the site via TCB to complete the purchase - or the cash back (which isn't guaranteed, remember, though) won't be 'tracked'.

Thanks (0)
avatar
By nutwood
11th Oct 2019 18:58

My wife has done IT contracting though a psc for the last 20+ years and has always used a broker - Caunce O'Hara in Manchester for PI, employer's liability and public liability. All done on line but with very helpful staff on the phone if needed.

Thanks (2)
Share this content