How to choose an accountant

Specific titles are protected. GOV.UK’s regulated professions service lists, for example, chartered accountant, chartered certified accountant and chartered management accountant as protected titles belonging to members of the relevant bodies. That means the specific title is a claim you can check, but the single word “accountant” does not by itself show any qualification.

Ask which body they belong to and look them up in that body’s own directory rather than relying on their website. Examples are the ICAEW and ACCA directories and, for bookkeepers and accountants who are AAT members, AAT’s directory of licensed members.

AAT states that all self-employed AAT members offering bookkeeping or accountancy services to clients must hold a valid AAT licence, and that a licence entitles them to call themselves an AAT Licensed Accountant or Licensed Bookkeeper. AAT says licensed members must comply with its licensing framework, including professional indemnity insurance, continuity cover, CPD, client care and anti-money laundering requirements, and that its public list shows whether each licensed member is regulated by AAT for anti-money laundering.

Accountancy service providers must be supervised for anti-money laundering. GOV.UK says HMRC supervises accountancy service providers that are not supervised by a professional body, and that you do not need to register with HMRC if you are already supervised by the FCA or a professional body. HMRC’s Supervised Business Register lets you check whether a business is registered with HMRC for this purpose, but it will not show accountants supervised by a professional body, so ask which supervisor applies and check that body’s own list.

Ask whether the firm carries professional indemnity insurance and what it covers. For AAT licensed members, AAT says it is a licence requirement. For anyone else, it is a reasonable question to put in writing before you appoint them.

• An engagement letter that sets out services, responsibilities, fees and notice terms.
• Whether the price is fixed per filing or per month, and whether it includes VAT.
• What is out of scope and how extra work is priced and approved.
• Which software they use, who pays for it and who owns your records if you leave.
• Who will do the work and who checks it.

For typical price ranges and what drives them, see our guide to limited company accountant fees.

• They will not say which professional body or supervisor applies to them.
• You cannot find them in the register of the body they name.
• They promise guaranteed tax savings or pressure you to sign quickly.
• The fee is vague, or “all-inclusive” with no list of what is included.
• They ask for your Government Gateway password instead of using HMRC’s agent authorisation.

Digital Tax Service is a trading name of Shreeve Hallam Jones Ltd (Companies House number 10106324). Our guidance and client work are signed off by Abbas Shah, an AAT member. Put the questions above to us as you would to any accountant, and ask for our fees and scope in writing before you instruct us.