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• # 78031
• Thu 05 Jan 2012 01:56 PM

I am receiving conflicting advise and am really confused. I have had my own business now for about 6 months and have 2 clients. Can anyone tell me what I am allowed to do for my clients and not allowed to do. I have been doing Vat Returns (she submits them herself to HMRC) and year end books ready for accountant! Am I not allowed to do this??? Dont want to make mistakes and do things and not allowed. I dont do anything to do with Tax as I know that is an accountants job. The other client is not VAT registered so I only keep her books up to date and do P&L Account And Balance Sheet for her.  Please advise, Thanks in advance

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• # 78033
• Thu 05 Jan 2012 02:09 PM

Hi Lynne,

Considering the VAT is part of level 2 syllabus, one (being me) would 'assume' you are allowed to do this.

If that is incorrect then I am almost certain somebody will advise otherwise :)


(1) Accounting for VAT

Understand the process of accounting for VAT and completing a VAT Return.  Be able to:• Explain the need for a business to register for VAT

• Identify the form and content of a VAT invoice
• Define the terms

- Input tax
- Output tax
- Standard rate
- Zero Rate
- Exempt Supplies
- Tax Point

• Account for VAT using a VAT control account
• Explain the process of bad debt relief
• Prepare a VAT Return

• www.berrybookkeeping.co.uk
  
  My responses are based on my opinions, not necessarily facts.
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• # 78039
• Thu 05 Jan 2012 03:28 PM

Hi Lynne,

I can confirm, just as Kerry B, you are allowed to process a VAT return for both sole trader and Limited company.

Preparing year end  ( I meant up to trial balance for limited company) accounts for submission to an accountant is also allowed. You can try to communicate with your client's accountant and eventually gain a productive  relationship with him.This will help you in keeping accurate record. The accountant would not mind answering your questions. Most of accountants do not want to get involved in bookkeeping. They know if they make the bookeeping process easy, less work they are going to have at year end!

Should you have any question, post it in the forum.

Kind Regards,

Nathaliexxx

Edited at 06 Jan 2012 01:36 PM GMT

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• # 78065
• Fri 06 Jan 2012 01:30 AM

Hi Lynne


I understand fully about conflicting advice and am about to do the same here in opposition to the advice given by one of the other posters - both are spot on about VAT - VAT return prep for any type of business is part of our remit, we can also submit on the clients behalf.  


You can also do full accounts for Sole Traders (and accountants dont need to get involved at all) and if you go for the Self Assessment Exams you can do their Tax Returns as well (although you can't give tax advice - so some you are better to pass to Accountants).


With Ltd etc it's different.  We can only prepare to Trial Balance for the Accountants, not 'prepare year end accounts for submission'

Partnerships are something I personally loath and couldn't really tell you much about what we are and arent allowed to do though......  


Here is the ICB guidance          http://www.bookkeepers.org.uk/Membership/Joining%20by%20Examination

(in case that doesnt link properly go to Membership on left of home page and click on joining by examination   - then hover over the different grades of membership)


hopefully this clears it up for you - but best bit of advice I personally can give is call the ICB (I do all the time)   



   

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• # 78224
• Wed 11 Jan 2012 05:16 PM

On a slightly different angle - I've been approached to audit a charity's accounts? Does anyone know what would be involved (I've already got MLR info)

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