Questions to ask an accountant before you sign up

Most disagreements with accountants start with different ideas of what was included. These questions pin that down:

• Which accounts and returns does the fee cover for a year, and is it fixed or charged by the hour?
• What would cost extra, for example a property sale, a letter from HMRC, payroll or bookkeeping?
• Does the figure include VAT?
• Will the fee change if I have to join Making Tax Digital for Income Tax?
• How and when will you bill me, and is there a notice period if I leave?

A clear, written answer to each makes it easy to compare firms. Our guide to how much an accountant costs explains why published fees vary so widely.

• For anti-money laundering purposes, are you supervised by HMRC or by a professional body, and which one? The rules require any business offering accountancy services to be on HMRC's register unless a professional body supervises it, and GOV.UK says trading while not registered is a criminal offence. Where HMRC is the supervisor, the firm can be looked up on HMRC's public register.
• Are you a member of a professional body, and which one? The title accountant is not protected by UK law, while chartered accountant is reserved for members of the chartered institutes, such as ICAEW and ICAS.
• Do you hold professional indemnity insurance? This is worth asking so you know how a costly mistake would be covered.

None of these questions is unusual, and a firm that is properly set up should be happy to answer them. You can verify what you are told using the steps in our guide on how to choose an accountant.

• Who will actually prepare my accounts and returns, and who reviews them?
• How do you want my records, and which software do you use? If you are within Making Tax Digital, or will be when the threshold falls to £30,000 from April 2027 or £20,000 from April 2028, the software has to be compatible.
• When do you need my information to file comfortably before each deadline?
• Will you send me a draft of each return to check before it is submitted?
• How do you prefer to communicate, and how often will we speak during the year?

The draft question matters more than it looks. GOV.UK says that if an agent submits your return, you must check it and confirm it is correct first, because you are still legally responsible for your own tax.

• How will you get authority to deal with HMRC for me, and for which taxes? Depending on the tax, an agent is authorised online, through your business tax account, or with form 64-8.
• If HMRC opens an enquiry or sends a penalty notice, what will you do and how is that charged?
• What is your complaints procedure, and which body could I go to if it does not resolve things?

It is worth knowing the limits in advance. AAT, for example, says its licensed members must by law have an internal complaint policy and expects you to use it first where appropriate. It also says it cannot give legal advice or provide redress for any monetary loss, and will not investigate complaints about fee disputes, so a written fee agreement is your main protection on cost.

Good answers tend to be specific. A firm that names its supervisor, explains which returns its fee covers and offers to put it in writing is giving you something you can rely on. Be more cautious if a firm will not say who supervises it, cannot explain what is included, or suggests that you will not need to check your own return. If you are moving from another firm, our guide to switching accountant explains the handover.

If you would prefer someone else to do the looking, send us a short note through get in touch. We read every enquiry and, where we can, we will put you in touch with a local accountant, but we cannot guarantee that one will be free.