It depends how the chambers structure the pupillage, some are set up so the pupils start to invoice their own work in the 2nd six months, with the pupillage being an advance against these fees, which may take many months (or years) to be paid.
In which case the pupillage is a loan, not income, and not subject to VAT.
Others have a system where the pupil does not invoice for work during the entire 12 months, in which case the pupilage for the 2nd six months is self employed income and under normal supply rules will be VATable if the individual is VAT registered.
In practice they rarely register for VAT until they start invoicing clients.
Another vote for VT and taxfiler, as well as being cheap VT is very quick to set up new clients and edit accounts, something that can use up hours with other packages.
Practice experience isn't essential, but will be required if you want to keep your qualifications.
The 2 main areas that industry training does not normally prepare you for are taxation and dealing with clients.
It does not matter how much tax you covered in exams, this is no replacement for the practical experience of trying to implement this in practice dealing with HMRC and clients.
To run a successful practice you also need to have the skills to deal with clients, something that comes from years of experience of learning from the mistakes of others.
Think there are better things to spend your time and money on. Most of these will just go to the accountants office, and straight in the bin. If they do need an accountant after forming the company then that means they have not taken any advice prior to incorporation, from experience clients falling into that category do not want to pay to advice, so only suitable if you have a low cost/minimal service business model.
Yes have dealt with this in the past, it is a personal contract between the individual and the sponsoring company. The company pays a fee (monthly or annually) in exchange for the pro agreeing to attend a certain number of company events and refunding them a %age of their tour earnings. Just need to be certain that the contract accurately defines what earnings are, eg before or after costs (travel, caddy, management, entry fee, local taxes, etc).
Rather than downgrading the package, isn't it easier to just stop using Xero for these clients? Must be quicker to just download the bank transactions as csv file and prepare accounts from that data in excel?
I guess you actually have 3 client, Owner A, Owner B and Ltd company. You have been asked by A to value his shareholding, do not see any problem in doing this and B is already getting independent advice, so there is no conflict on the transaction between A & B as you are not advising B.
What seems optimistic is thinking that you will continue to act for all parties after the sale, there is no reason why you cannot do this but B seems to have already sort independent advice rather than just coming to a mutual agreement with his business partner.
In these circumstances I would ask for a payment on account before starting work, and could not imagine one ever being as low as £500 for what may be a one off instruction.
My answers
I use PTP, have done for years .... which is about £200pa
It depends how the chambers structure the pupillage, some are set up so the pupils start to invoice their own work in the 2nd six months, with the pupillage being an advance against these fees, which may take many months (or years) to be paid.
In which case the pupillage is a loan, not income, and not subject to VAT.
Others have a system where the pupil does not invoice for work during the entire 12 months, in which case the pupilage for the 2nd six months is self employed income and under normal supply rules will be VATable if the individual is VAT registered.
In practice they rarely register for VAT until they start invoicing clients.
Another vote for VT and taxfiler, as well as being cheap VT is very quick to set up new clients and edit accounts, something that can use up hours with other packages.
Practice experience isn't essential, but will be required if you want to keep your qualifications.
The 2 main areas that industry training does not normally prepare you for are taxation and dealing with clients.
It does not matter how much tax you covered in exams, this is no replacement for the practical experience of trying to implement this in practice dealing with HMRC and clients.
To run a successful practice you also need to have the skills to deal with clients, something that comes from years of experience of learning from the mistakes of others.
Think there are better things to spend your time and money on. Most of these will just go to the accountants office, and straight in the bin. If they do need an accountant after forming the company then that means they have not taken any advice prior to incorporation, from experience clients falling into that category do not want to pay to advice, so only suitable if you have a low cost/minimal service business model.
Yes have dealt with this in the past, it is a personal contract between the individual and the sponsoring company. The company pays a fee (monthly or annually) in exchange for the pro agreeing to attend a certain number of company events and refunding them a %age of their tour earnings. Just need to be certain that the contract accurately defines what earnings are, eg before or after costs (travel, caddy, management, entry fee, local taxes, etc).
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Rather than downgrading the package, isn't it easier to just stop using Xero for these clients? Must be quicker to just download the bank transactions as csv file and prepare accounts from that data in excel?
I guess you actually have 3 client, Owner A, Owner B and Ltd company. You have been asked by A to value his shareholding, do not see any problem in doing this and B is already getting independent advice, so there is no conflict on the transaction between A & B as you are not advising B.
What seems optimistic is thinking that you will continue to act for all parties after the sale, there is no reason why you cannot do this but B seems to have already sort independent advice rather than just coming to a mutual agreement with his business partner.
In these circumstances I would ask for a payment on account before starting work, and could not imagine one ever being as low as £500 for what may be a one off instruction.