You have a clutch starter holding the flywheel on. This unscrews anti clockwise, but before you do that a word of caution.
The centre of the clutch starter is turned by the recoil pulley. I see that you have removed the mesh screen that is fitted to the clutch starter by two small 4ba bolts. There is a cap that can be prised off to reveal about 6 small ball bearings that will fall out and scatter to the four winds unless you put a large deep sided tray under the starter before you do anything. Having taken the cap off and caught your balls (ooer-Mrs) in the tray, the centre part of the starter can be removed to reveal a thin shiny part of the crankshaft. ON NO ACOUNT MUST YOU DAMAGE THIS< OR PLACE ANY GRIPS ON IT!!! or the starter will not turn correctly afterwards .
You can turn the body of the starter anti clockwise to remove it using a pipe wrench at a pinch, or you might knock it round on the lugs using a punch, or even invest in the right tool to do it so you won't damage anything
I own two, I thought I'd lost mine so bought another only for the original one to turn up virtually at the same time the other one fell through the letter box. Lifes like that at times, Eh?
Having now removed the body of the starter, there is a washer and then the flywheel which is, as described in an earlier post, a tapered fit onto the crankshaft. A knock on the side of the flywheel with a copper mallet (on the alluminium part, and not the magnetic metal part that helps produce the spark.....
)
Presto! you should now be able to remove the flywheel (making sure you don't loose the small alluminium key that locks the flywheel on in the correct position for the timing)
You should now be able to see the cover of the points that I mentioned earlier.
If you can't, then this is a magnetron ignition system and you've just wasted about an hour, bruised your fingers from hammer blows, and will curse my name fore-ever-more, but don't worry, I won't hold it against you.........
As I said to the Boss the other day, "I've been sworn at by a better class of people than you, you know!"