We would like to congratulate each and every one of you for working very hard this year. The standard of bookkeeping work you are producing is getting higher.We are very proud of our continuous high pass rates, which proves that hard work and motivation together with good quality bookkeeping training works.

This year our records show we have received a high number of requests from business owners and accountants who are looking for bookkeepers. Accountants have told us they are keen to work with self-employed bookkeepers. They prefer to build up a long-term working relationship, referring client workload, rather than employing bookkeepers on a full time basis. This makes perfect sense all round.

Despite all the doom and gloom reported in the media, it’s good news for all you hard working bookkeepers, there is bookkeeping work out there. We have secured work for many of you this year. Some of you were very pleased to take on a new client, whilst others happily announced ‘sorry fully booked’. If you are struggling to find new clients don’t give up!  As part of our continued service we are happy to help you grow your business.

Remember past and present students, if you have a bookkeeping website, we will list you on our find a bookkeeper web page - free of charge. Simply contact your personal tutor who will happily arrange this for you.

Bookkeepers prepare for the VAT increase

The end of 2010 is rapidly approaching and from Tuesday 4th January 2011 VAT will increase from 17.5% to 20%. At the end of last year VAT was 15% and some of you will remember in order to boost end of year sales, many retailers made additional offers by paying the VAT difference before it increased back to 17.5%. No doubt we will see similar offers again, encouraging us to part with our hard earned money. Although you may think the increase is not significant, if you are thinking about making a major purchase the savings can be worthwhile. For example, a UK holiday booked and paid for before the VAT deadline will be invoiced at the current VAT rate of 17.5%. So make sure you get organised and prepare yourself in plenty of time before the January 2011 deadline!

How much will the savings make?

Be aware that any goods you order will need to have a VAT receipt raised before 4th January 2010 to benefit from the old rate. This means you could pay a small deposit now and the balance in 2011. Any catches? Experienced bookkeepers know VAT transactions are not always straightforward and can sometimes become quite complex. HMRC have set out detailed rules relating to the forthcoming VAT increase. Some of these rules relate to goods or services supplied before the deadline, but invoiced or paid for afterwards. Of course, there are conditions in place to avoid ‘artificial’ deals between suppliers and customers. It is worth taking a look at the guidelines. You can find full details on HMRC’s website. HMRC Web page PDF format

Most of you are aware by now of the Money Laundering Regulations (MLRs), which came into effect on the 15th December 2007.

As a reminder, if you provide bookkeeping services at any level and charge for these services, then you are now in a regulated profession. Just like accountants, auditors, and tax advisors, you are also an ASP (Accountancy Service Provider). Which means you must be registered with HMRC or a HMRC appointed supervisory body. You will also have to undertake the responsibility of checking and assessing your clients in compliance with the MLR regulations.

If you not registered with a supervisory body required by the Money Laundering Regulations (MLRs) then you are committing an offence!

It is worth visiting the HMRC website, there is a comprehensive guide also the MLR9, can be downloaded [PDF] format.

http://www.hmrc.gov.uk/mlr/index.htm

What is money laundering?

Money Laundering covers all kinds of methods used to change the identity of illegally obtained money, which gives the appearance to have originated from a legitimate source.

HMRC Money Laundering Regulations news and updates…

On the 6th October 2010, HMRC announced a reduction in MLR annual fees.
A summary report of the review of the fees HM Revenue & Customs (HMRC) charges under the Money Laundering Regulations (MLR) has now been published. It concluded that the fee structure would not change for the foreseeable future. 
In addition, HMRC has reviewed the annual fee, which is charged to meet running costs and supervisory visits. They have announced they will reduce the current fee from £120 to £110 with effect from 1 December 2010.

You can view the MLR8 and download all the MLR Registration forms including guidance on how to complete the forms on the HMRC web site at http://www.hmrc.gov.uk/mlr/index.htm
You can also request a free copy of the MLR DVD from the National Advice Service on 0845 010 9000

This issue was highlighted in late May when Susan Marks from the Citizens Advice Bureau expressed her concerns over the increase in the number of complaints they have received (6% over the past 12 months) regarding the lack of customer support and continuity within private training companies.

Susan is calling for a regulatory framework to be put in place for the distance learning industry and at Clever Cloggs Training we would certainly support this move. Any poor providers that are operating out there give our industry a tarnished image and we would be delighted for any regulation which could clean up the industry as a whole.
In the mean time, we are often asked for advice on how students entering any distance learning field can be confident that they are choosing the right provider. Here are some of the important questions which we think you should ask.

• How long do you anticipate it will take me to complete my training course?
• What is the average length of time it takes your students to complete their course?
• How much personal support will I receive during my training?
• How long will the support you provide continue?
• What is the average pass rate for your company?
• After I have completed my training with you do you provide any ongoing support?

By asking these direct questions you should be able to make a powerful comparison between providers – and be immediately on your guard if anyone does not wish to provide the answers.

Finally I would recommend that if at all possible you speak to other students so that you can understand what training with a particular provider is really like, this way you can begin to work out if a particular company’s approach to training will suit your personal style of learning.

Good luck – there are plenty of good direct learning companies out there. We are delighted that Clever Cloggs receives an endless supply of positive praise and thanks from our students and much of it is displayed on our website to help customers make a sound and well reasoned decision.

Thanks to all our students who have been asking for this blog - we really hope that you will log on regularly to use it now and will add comments and make it your blog.

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