Forum

• # 72275
• Thu 16 Jun 2011 06:21 PM

Hi all,

Did anyone with the level an associate member have small companie clients? if we look at the link below it will tell us that the regulation is relaxed for small business as long as the submission is in the correct format and signed by the company director.

Accounting and audit exemptions for small companies - Business Link
http://www.businesslink.gov.uk/bdotg/action/layer?topicId=1073979850
Guidelines for SMEs and Limited Liability Partnerships on filing abbreviated accounts

Company Accounts to Companies House - A Guide to Preparing and Submitting
http://eastmidsbusinesslink.cobwebinfo.com/readfile.php?id=4574-9845-4105-4481-02
Business Information Factsheet - BIF069

Could anyone clarify with this information.
Thanks in advance.
Indah

• Best Regards, Indah.
  
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• # 72291
• Fri 17 Jun 2011 09:06 AM

Hi Indah

You need to be aware of the ICB rules rather than companies house / HMRC regs.

As an Associate you can only go as far a Trial Balance when working for limited companies and partnerships. Level III may produce Draft accounts and Level IV will be able to get directors to sign and file them.

I hope this clarifies.

Kind regards
Stuart

• Forum Moderator, South East & Greater London Regional Chairman
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• # 72470
• Thu 23 Jun 2011 01:53 PM

Hi Stuart

I am seeking clarification as to what services a Level IV bookkeeper can carry out currently and when the proposed new legislation is enacted in 2012. I understand that the ICB has introduced Level IV in anticipation of this new legislation in 2012.

I understand the current situation is:
A MICB.Dip with PL can produce draft final accounts for an accountant to audit for small Ltd companies and partnerships. However, where an audit exemption has been formally agreed by the Directors/Partners a MICB.Dip with PL can produce final accounts, gain Directors sign off and file with Companies House. That is without Level IV.

The situation in 2012 would be:
A Level IV with PL will be able to produce final accounts as small Ltd companies will be exempt from audit(unless they want one) and also produce and file Corporation Tax Returns.

Is my understanding correct? As I wish to discuss this with prospective clients and be in a position to say a Level IV can provide a full range of services(Bookkeeping,VAT,Management Accounts,Final Annual Accounts, Corporation Tax).

Regards

Mark 

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• # 72472
• Thu 23 Jun 2011 02:19 PM

Hi Mark

In anticipation of Stewarts's reply I think you misinterpreted the current situation - take a look at http://www.bookkeepers.org.uk/Examinations/Membership%20by%20Examination

A member with CB.dip can produce draft accounts only - they must be passed to a qualified accountant to produce unaudited accounts for submission to the board of directors.

As I understand it this will change with the introduction of Level IV - you will be able to produce final accounts which include corporation tax return. They still need to be passed to the directors to be signed who can then give you the authority to file them with CH on their behalf

Whilst I intend to take the Level IV qualification, I must say I would be uncomfortable doing this and would much prefer passing accounts on to an accountant - it's always good to have another pair of eyes checking. But I guess that is something everyone needs to judge for themselves based on their experience and competency.

Mike

Edited at 23 Jun 2011 02:28 PM GMT

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• # 74328
• Tue 13 Sep 2011 01:24 PM

Mikeeesaid:

A member with CB.dip can produce draft accounts only - they must be passed to a qualified accountant to produce unaudited accounts for submission to the board of directors.

As I understand it this will change with the introduction of Level IV - you will be able to produce final accounts which include corporation tax return. They still need to be passed to the directors to be signed who can then give you the authority to file them with CH on their behalf

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• # 74356
• Wed 14 Sep 2011 06:38 PM

Hi, can I ask what the 2012 legislation mentioned  below is about? 

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• # 74366
• Wed 14 Sep 2011 09:46 PM

Hi Jude

The link on the first post was about legislation before 2008 which allowed small companies to file abreviated accounts. I think the proposed legislation simplifies the process even further for micro-companies with a turnover of < 450K

There is a discussion about it here
http://www.bis.gov.uk/assets/biscore/business-law/docs/s/11-1100-simpler-reporting-for-smallest-businesses-discussion-paper

It's not certain if it will happen yet. But my guess is that Sage and QuickBooks will build in modules to file these simplified returns in a similar way you can file a VAT return from within Sage or QuickBooks.

Mike

Edited at 14 Sep 2011 10:00 PM GMT

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• # 74408
• Fri 16 Sep 2011 03:14 PM

Hi Jude / Mike

If you google FRSME or is it FRSSME one or tuther.

These are the new regs that are coming in to goven Micro business' in order to lift the administration burden from them.

As always bear in mind you have to contend with the ICB rules as well as UK Law.

Kind regards
Stuart

• Forum Moderator, South East & Greater London Regional Chairman
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• # 74471
• Mon 19 Sep 2011 03:21 PM

Stuart Wildmansaid:

If you google FRSME or is it FRSSME one or tuther.

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• # 74493
• Tue 20 Sep 2011 10:02 AM

Hi Tony

We Live and learn.

You are correct FRSSE is the standards for Smaller Entities this is probably the one that will see all the changes re reporting standards and this should encapsulate the Micro business'

There is still a lot of debate surrounding the reporting of Micro business' as simply doinf away with the balance sheet will not allow poeple to discover of they are trading insolvently or not which in turns poses a significant credit risk.

Kind regards
Stuart

• Forum Moderator, South East & Greater London Regional Chairman
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