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How freelancers can check an accountant's credentials before appointing one
Check an accountant's credentials before appointing one: register lookups, AML supervision, indemnity insurance and engagement letter terms for UK freelancers.
What to take away
- Confirm the accountant's name, firm and membership number on a professional body register such as ICAEW, ACCA, ICAS or AAT.
- Check anti money laundering supervision through the firm's supervisory body or the HMRC register.
- Ask for the professional indemnity insurance certificate rather than an assurance that cover exists.
- Read the engagement letter before signing, because scope, fees and liability caps sit inside it.
- Match the accountant's experience to freelance work, including Self Assessment and IR35 checks.
Start with the professional body register
Anyone can describe themselves as an accountant, so the register entry is the first thing to test. The next step is covered in What do bookkeeping services cost for.
Check the professional register
- Ask body name and membership number
- Search the body's public directory
- Match name, firm and number
- Look for restrictions or suspensions
- Ask which professional body the accountant belongs to and for the membership number.
- Search that body's public directory, such as ICAEW's Find a Chartered Accountant or ACCA's Find an Accountant.
- Match the name, firm and number against the search result.
- Look for restrictions, suspensions or a lapsed practising certificate.
Membership is not legally required for every service, but a current entry gives you a complaint route, a disciplinary process and proof of a practising certificate.
Check anti money laundering supervision
Accountancy firms in the UK must be supervised for anti money laundering, either by a professional body supervisor or by HMRC.
AML supervision checks
- Find firm on supervisory body register
- Search HMRC money laundering register
- Ask who is the reporting officer
- Confirm client due diligence will run
- Find the firm on its supervisory body's register.
- Search the HMRC money laundering supervision register for the firm name.
- Ask who acts as the firm's money laundering reporting officer.
- Confirm the firm will run client due diligence on you before starting work.
A firm that cannot show supervision may be offering services it is not permitted to provide. The practical detail is set out in How to find an accountant for.
Ask for proof of professional indemnity insurance
Professional indemnity insurance pays out if advice or a filing goes wrong and you lose money.
Ask for the certificate of insurance, not a sentence saying that cover exists. Check the firm name, the cover limit, the policy dates and whether your type of work is included. Payroll and tax advice sometimes sit outside a basic policy.
A certificate in the wrong trading name, with expired dates, is not cover you can rely on.
Read the engagement letter line by line
The engagement letter is the contract, so read it before you sign anything.
| Term | What to confirm |
|---|---|
| Scope | Which returns, deadlines and advice are included |
| Fees | Fixed, hourly or monthly, and what triggers extra charges |
| Liability | Any cap on the accountant's liability |
| Records | Who holds your records and how you get them back |
| Complaints | The route through the professional body |
Ask about the handover if you leave, and who will actually do the work. Many firms delegate filings to a junior or an outside bookkeeper.
Example: a register check that changes the decision
A freelance designer shortlisted two firms. The first appeared on the ACCA register with a current practising certificate and matching insurance. The second was not listed with any professional body and could not show supervision. The designer appointed the first firm.
Check the accountant fits freelance work
Freelance work brings Self Assessment, allowable expenses, payments on account and IR35 status questions.
Sole traders register for Self Assessment and the accountant should confirm the filing deadlines that follow.
If you trade through a limited company, directors' responsibilities stay with you, including filing accounts at Companies House.
If you are VAT registered, ask which software the firm uses for Making Tax Digital for VAT, because digital records are mandatory.
To compare scope, fees and cover, find an accountant for freelancers before you commit.
Confirm HMRC agent authorisation
An accountant who files for you needs to be authorised as your agent.
You approve that authorisation yourself, usually through your Government Gateway account. The agent can then submit Self Assessment, VAT and PAYE information on your behalf. Check the authorisation list to see which taxes are covered and remove any you did not agree to.
Common questions
How do I check credentials if the accountant is not with a professional body?
Some services, such as basic bookkeeping, can be offered without membership. In that case ask for evidence of experience, insurance and AML supervision.
Is checking AML supervision my responsibility?
No, supervision is the firm's legal duty. Checking the register takes a few minutes and shows whether the firm can legally take on regulated accountancy work.
What should the engagement letter include?
Scope, fees, deadlines, the liability cap, ownership of your records and the complaints route. If a letter is vague about fees or scope, ask for it in writing before you sign.
How much professional indemnity cover is enough?
There is no single figure. Ask what the limit is, whether tax and payroll work are covered, and whether the limit applies per claim or in total.
