Choosing an accountant is one of those decisions that feels routine until it isn't — until the VAT return is late, the corporation tax bill arrives bigger than expected, or HMRC opens an enquiry and you realise the person doing your books isn't qualified to handle it.
Start with the qualifications
In the UK, "accountant" is not a protected title. Anyone can call themselves one. The qualifications that actually mean something are ACCA, ACA (ICAEW), CIMA, CIOT, and AAT. If your prospective accountant isn't a member of a professional body, you have no recourse when things go wrong and no guarantee of continuing professional development.
Check for AML registration
Every UK accountancy practice must be supervised for anti-money-laundering (AML) purposes under the Money Laundering Regulations 2017 — either by HMRC directly or by a professional body such as ACCA or ICAEW. Ask for their supervisor and their reference number. No AML supervision is a hard stop.
What to ask before you engage
- What's included vs. extra? A fixed monthly fee that "covers everything" often doesn't. Get specifics: VAT returns, payroll, year-end accounts, corporation tax, self-assessment, advisory calls.
- Who will actually do the work? You're often sold by a partner and serviced by a junior. That can be fine — but ask.
- What software do they use? Xero, QuickBooks, and FreeAgent are the norm in 2026. If they're still running desktop Sage and demanding your records in a shoebox, walk away.
- How do they handle HMRC enquiries? Is fee protection insurance included or extra? An enquiry you weren't expecting can easily cost £2,000–£10,000 in professional fees.
- How quickly do they respond? A three-day email turnaround is industry average. A one-day turnaround is worth paying for.
Proactive vs. reactive
The single biggest differentiator between a cheap accountant and a valuable one is whether they tell you things you didn't ask about. A proactive accountant flags when you're approaching the VAT threshold, when a dividend would push you into a higher tax band, or when a business structure change would save you tax. A reactive accountant files what you give them and sends an invoice.
Red flags
- Reluctance to quote a fixed fee.
- No engagement letter.
- No professional indemnity insurance.
- Promises of "aggressive tax planning" that sound too good to be true — because they usually are.
- Sole practitioners with no succession plan. What happens if they retire or fall ill?
Why Tax Falcon
We're qualified, AML-supervised, cloud-native, and proactive. Our engagements start with a free 30-minute review of where you are and what you actually need — not a sales pitch. If we're not the right fit, we'll tell you.
