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Original poster

Are there any accountants here?

33 replies

HelpNeeded2021 · 03/02/2021 16:22

I'd be really grateful for any advice.

My son has married a woman from Central America. He's been there since October and they are applying for a visa so that she can live and work here.

They are now completing the visa application form - he will be her sponsor. He has to prove he can support her financially. As you can imagine, this form is a nightmare as it includes things that are not on the govt website and which he wasn't told about in phone calls to the home office beforehand.

He is self-employed. He does his own tax return and has evidence of that and also his bank statements.

However, they ask for this: "...unaudited accounts for the last financial year and an accountant's certificate of confirmation, from an accountant who is a member of a UK Recognised Supervisory Body or a member of the Institute of Financial Accountants"

The problem is that he doesn't use an accountant when he files his tax return. Now it seems he has to get an accountant in the UK to do this.

If you are an accountant, what would you expect him to produce? It would be good for him to get it together before approaching an accountant. Would they expect all receipts and proof of income? He only has his laptop there (he can work from anywhere.)

Any help would be greatly appreciated.

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TravellingTilbury · 03/02/2021 16:30

Although your son is self-employed and filing his own tax returns, he will still be needing to a) keep certain business records per HMRC guidance and b) keep the extra proof (eg receipts etc). See: www.gov.uk/self-employed-records/what-records-to-keep

I recommend that he goes through that and then approaches a chartered accountant (ACA) or certified accountant (ACCA) who are registered and able to sign off accounts.

But if he goes on the HMRC website to start with he can get his records in order before approaching an accountant.

Hope that helps a little bit and good luck.

Original poster
HelpNeeded2021 · 03/02/2021 16:32

Thanks very much. I know he keeps a spreadsheet with all incomings and outgoings and is very careful about noting everything, it's just that he's away from home and doesn't have certain things with him.

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Original poster
HelpNeeded2021 · 03/02/2021 16:34

So would he need to send the accountant his spreadsheet and also provide evidence of any money coming in and all receipts for anything going out?

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Original poster
HelpNeeded2021 · 03/02/2021 16:39

I've looked at that page, thanks - I know that he's used that site for all his info, he's just worried that he might not have all receipts with him.

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TravellingTilbury · 03/02/2021 16:40

Some other things to consider - is he VAT registered (if sales are over a certain amount - more admin will be involved but he would be aware of this)?
Does he have a separate business bank account (not necessary to begin with but might be useful in his case)?
Def keep copies of sales invoices (eg file of hard copies) - these can just be printed out using a Word doc if he hasn't been using them but accountants like to know that everything ties up, even if accounts are audited. Numbered sales invoices are often overlooked but important and quite easy housekeeping.
Keep a log (eg on excel) matching year to what was declared in the tax return if printing sales invoices retrospectively.
What a sales invoice should contain: www.gov.uk/invoicing-and-taking-payment-from-customers/invoices-what-they-must-include

TravellingTilbury · 03/02/2021 16:45

I don't think the accountant would need to see the hard copy receipts - he could make up a simple set of accounts from the excel spreadsheets and expenses. He would expect to see the bank statements. And a note of any assets for the bank statements if applicable (eg tech equipment). It depends on the individual situation.

But just be aware, due to anti money laundering regs, engaging an accountant can be tricky and still require lots of ID checks etc. Again, this shouldn't be a problem, but they will likely to be unwilling to start work until that (and also the engagement letters) have all been signed and dealt with.

I should add that my info might be slightly out of date; I used to be a tax accountant and part-qual ACA.

Good luck!

Original poster
HelpNeeded2021 · 03/02/2021 16:46

He's a composer so he has advances and royalties. They are easy to prove. It's his expenses that are harder to prove - he does have receipts but eg if he bought an instrument in a store then the receipt is at home and all he has there is the payment on the bank statement.

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Original poster
HelpNeeded2021 · 03/02/2021 16:48

He's not VAT registered.

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TravellingTilbury · 03/02/2021 16:49

I'm sure it will be fine and good for him. How exciting!

Original poster
HelpNeeded2021 · 03/02/2021 16:49

Thanks so much for all your help with this. He's panicking now and this has been a great help.

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nevertrustaherdofcows · 03/02/2021 16:50

Well it does say unaudited accounts; hence receipts, invoices, etc should not be needed.

TravellingTilbury · 03/02/2021 16:56

@nevertrustaherdofcows

Well it does say unaudited accounts; hence receipts, invoices, etc should not be needed.
Yeah it's just in an ideal world, an account wouldn't want to sign off accounts for a new client without checking some of the prime books and records. I'm sure it will all be fine though. - don't worry, OP.
Original poster
HelpNeeded2021 · 03/02/2021 16:59

His uncle is an accountant for a business - would he be able to do this? He's qualified, it's just that he doesn't do private work normally.

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Original poster
HelpNeeded2021 · 03/02/2021 16:59

But 'unaudited' means nobody outside of the accountant has checked it, doesn't it?

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TravellingTilbury · 03/02/2021 17:00

Another tip - if it is urgent, do ask about timescales at the initial enquiry. some accountants have more of a back log than others. Some work through cases on a strictly first come first serve; others might be willing to be more flexible.

Don't let him get fobbed off or end up unnecessarily stressed.

TravellingTilbury · 03/02/2021 17:02

@HelpNeeded2021

But 'unaudited' means nobody outside of the accountant has checked it, doesn't it?
Not quite - unaudited means that the accounts don't require a legal audit (most limited companies don't, only the really large ones do).

(This is the guidance for companies that do and do not require an audit: www.gov.uk/audit-exemptions-for-private-limited-companies).

TravellingTilbury · 03/02/2021 17:03

@HelpNeeded2021

His uncle is an accountant for a business - would he be able to do this? He's qualified, it's just that he doesn't do private work normally.
If is uncle is ACA or ACCA qualified - and still practising (ie still a member of ACA or ACCA) then yes, he could certify. (I think). That would be ideal!
TravellingTilbury · 03/02/2021 17:05

Eek, although you say his uncle is an accountant for a business ... if this is for another industry, then probably not. If he is an accountant for an accountancy firm then they could take on your son's case. Sorry for the confusion.

Ch3rish · 03/02/2021 17:05

I don't know the answer but if it was me I'd ask them if you really need to go to all of that trouble and couldn't he provide tax return details instead like self employed people do for mortgages etc.

Notgoingouttoday · 03/02/2021 17:06

Unaudited means that they haven't checked everything back to original receipts. The accountant will usually sign off to say that the accounts match the records kept by the self employed person. He therefore wont need all his receipts but they are likely to want to see some bank statements. The accounts will then be produced in a standard format the accountant attaches a report. The accounts will need to match what has been reported on the tax returns. His uncle can sign it off if he is either Chartered or Certified.

Original poster
HelpNeeded2021 · 03/02/2021 17:08

He's an accountant for a manufacturer.

I think it's proof that the tax return matches his bank account, @Ch3rish. None of this is stated on the govt website for immigration, which is why it's such a pain now, with him having to do it at a distance.

He's giving all his tax return details - that's not a problem, it's just that they're saying he has to have an accountant check it over.

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Notgoingouttoday · 03/02/2021 17:09

@TravellingTilbury

Eek, although you say his uncle is an accountant for a business ... if this is for another industry, then probably not. If he is an accountant for an accountancy firm then they could take on your son's case. Sorry for the confusion.
I think the Uncle can sign off but he can't charge for doing the work unless he has insurance and a practicing certificate.
Original poster
HelpNeeded2021 · 03/02/2021 17:14

He wouldn't charge. I'm just wondering whether an accountant who does this sort of thing all the time would be better.

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Notgoingouttoday · 03/02/2021 17:16

Maybe better to go to a professional firm to get it done but as someone pointed out above, it could take a little time.

Original poster
HelpNeeded2021 · 03/02/2021 17:22

It's crazy as he could've done this months ago if he'd been told it had to be done.

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