Contents
The short answer
In the UK, anyone can call themselves an accountant. What counts is membership of a professional body such as ICAEW, ACCA, ICAS, CIMA or AAT. Ask for the body and the membership number, then check it on that body's own register. A logo on a website proves nothing.
Can anyone call themselves an accountant?
Yes. There is no law that stops an untrained person from advertising as an accountant and preparing your accounts. Only certain titles show real training.
This does not mean everyone outside the big bodies is bad. Many good bookkeepers and small firms work independently. It does mean the word on the sign guarantees nothing, so the checking is up to you.
What do the letters after the name mean?
The main professional bodies set exams, require ongoing training, and run a complaints and discipline process. Practising members must carry insurance. You can check membership on each body's own register.
- ACA or FCA: a chartered accountant with the Institute of Chartered Accountants in England and Wales, known as ICAEW.
- CA: a chartered accountant with the Institute of Chartered Accountants of Scotland, known as ICAS.
- ACCA or FCCA: a member of the Association of Chartered Certified Accountants.
- CIMA: the Chartered Institute of Management Accountants.
- AAT: the Association of Accounting Technicians.
- CIOT: the Chartered Institute of Taxation, for tax specialists.
How do I check an accountant's membership?
Ask which body they belong to and what their membership number is. Then look them up on that body's website. ICAEW and ACCA both have a free Find an Accountant tool.
Ask about insurance too. Professional indemnity insurance pays out if the accountant makes a costly mistake. Members of the main bodies must have it.
What is anti-money-laundering supervision?
UK accountancy firms must be supervised to stop money laundering. The supervisor is either their professional body or HMRC. HMRC keeps a public list of the firms it supervises.
This is a handy question to ask because there is no single list of all accountants. A firm that cannot say who supervises it is missing a basic legal duty.
Audit is different
Only a registered auditor can carry out a statutory audit. If your company needs one, ask the firm to confirm its audit registration. A general accounting qualification does not give it.
How does an accountant deal with HMRC for me?
To speak to HMRC for you, an accountant needs your permission. The usual way is for them to send a request through HMRC's online agent service. HMRC then posts a code to you, and you pass it back to them. A paper form, called the 64-8, is the other route.
You stay in control. You should not need to hand over your own HMRC login. If an accountant asks for it, that is a reason to be careful.
Which kind of accountant do I need?
A sole trader who files one tax return needs something different from a growing company with staff, VAT and payroll. Ask how many clients like you the firm already looks after.
Ask who will do the work, too. The person you meet at the start is not always the person who does your books.
Software matters more than it used to. With Making Tax Digital, you may need to keep digital records. Ask which software the firm uses and who pays for the licence.
How are accountants paid?
Many quote a fixed fee for a set job, such as your yearly accounts. That is often the easiest way to budget. Others charge by the hour, which can be hard to predict.
Whatever the fee, ask exactly what it covers. Payroll, VAT returns, tax advice and replies to HMRC letters are often extras. Watch out for low starting prices that jump in the second year.
What should I ask before I hire one?
- Which professional body are you in, and what is your membership number?
- Who supervises you for anti-money-laundering rules?
- Do you have professional indemnity insurance?
- What is included in the fee, and what costs extra?
- Who will I deal with day to day, and how fast will they reply?
- Will you give me a letter that sets out the work and the fee?
- What happens to my records if I move to someone else?
What are the warning signs?
- A promise of a big tax refund, especially for a fee taken from the refund.
- A request to sign blank forms.
- A request for your own HMRC login.
- No membership number, or one that does not check out.
- A price far below everyone else with no explanation.
How do I switch accountant?
Your records belong to you. Tell your new accountant who you used before, and ask the old one to hand over your papers. Cancel the old accountant's permission with HMRC so they no longer act for you.
Frequently asked questions
- Do accountants have to be qualified in the UK?
- No. The word 'accountant' is not protected, so anyone can use it. Membership of a body such as ICAEW, ICAS, ACCA, CIMA or AAT is what brings training, insurance and a complaints process.
- How do I verify an accountant's membership?
- Ask for the body and the membership number, then check it on that body's own register. A logo on a website is not proof.
- Can any accountant audit my company?
- No. Only a registered auditor can do a statutory audit. Ask the firm to confirm its audit registration if your company needs an audit.
- Who supervises accountants for money laundering?
- Either their professional body or HMRC. It is a legal requirement, so any firm should be able to tell you straight away.
- Should I choose a local accountant or an online one?
- Either can work. Online firms often suit simple affairs. If your finances are complicated, meeting someone who knows your sector can help. Check the same things whichever you choose.
- Do I need an accountant if I am a sole trader?
- Not by law. Many sole traders file their own return. An accountant can save time and catch mistakes, so it depends on how confident you are and how complex your income is.
About this guide
Written and maintained by the LocalListed editorial team. It describes UK regulation and consumer protections in general terms and is not legal, financial or professional advice. Rules differ between England, Wales, Scotland and Northern Ireland, and change over time: always check the position with the named regulator before relying on it.
