How to start an accountancy or bookkeeping practice in the UK

Anyone can call themselves an accountant in the UK. The British Business Bank says the title isn't protected by law, and Kingsley Napley, the law firm, reached the same view in 2020. But you can't take on a paying client without anti-money laundering supervision, and Finance Act 2026 brings in mandatory HMRC registration for anyone paid to deal with HMRC for clients.

So the title's open and the work isn't. Here's what to set up, in order. My view: most of the risk in the first year sits in this paperwork, not in the tax work you already know how to do.

Step 1: Know which words you can use

Two points catch people out. ACCA isn't on ICAEW's list, so an ACCA member shouldn't shorten their status to "chartered accountant". And ICAEW is consulting on changing its eligibility rules for practices, so check the current regulations before you print anything.

A false claim on your letterhead isn't only a regulatory problem. It's a marketing claim, so it needs to be true.

Step 2: Get your body's permission

ACCA's factsheet is dated 23 June 2026, and ICAEW's statement took effect on 1 October 2026. I couldn't confirm ACCA's or AAT's experience requirements, so ask them. If you belong to two bodies, ask both.

Step 3: Get AML supervision

Professional bookkeeping, accounts preparation, tax advice and help with tax returns all make you an accountancy service provider under the Money Laundering Regulations. Working virtually or through an automated service changes nothing, HMRC's guidance says. You still owe customer due diligence.

Your supervisor is your professional body or HMRC. GOV.UK lists ICAEW, ACCA, AAT, ATT, CIOT, CIMA, ICB, IFA, IAB and others.

If HMRC supervises you, the fees since 1 December 2025 are:

• £300 non-refundable application fee, waived with the small business reduction.
• £400 for each premises when you apply.
• £400 a year for each premises.
• £40 for each person who needs approval.

Supervision is also changing. The government decided in October 2025 to move accountancy AML supervision to the FCA, and the Treasury published a policy response in June 2026. No transfer date is confirmed, and fees are still to come, so carry on with your current supervisor.

The regulations themselves changed on 30 June 2026, and new CCAB guidance replaced the June 2023 version in July 2026. ICAS says the impact is limited. Build your procedures from the new guidance, not from an old pack a former colleague handed you, and ask your supervisor what it expects to see.

Step 4: Register with HMRC as a tax adviser

Under Finance Act 2026, anyone paid to interact with HMRC on clients' tax affairs must register. Your job title makes no difference. Registration is running in windows:

If you're brand new, check GOV.UK for which applies to you. It's free, and you need AML supervision first. HMRC also says registration isn't regulation, so don't market it as a badge.

CIOT's summary lists no outstanding returns or payments among the conditions, and gives penalties of £5,000, then £10,000, after a compliance notice. So your own tax affairs need to be in order before you open.

Step 5: Decide on Companies House services

Companies House ID verification has been mandatory since November 2025, with existing directors moving across in a transition. ICAEW says you need to be an authorised corporate service provider (ACSP) to offer verification, and to file statutory information from November 2027. One line on its page says "from 2026", so confirm the date before you plan around it.

Offering verification is a separate decision from filing, so treat it as one.

Step 6: Get insured and registered for data

• Professional indemnity: compulsory for practising ICAEW members whatever their income, with six years of retroactive cover. It's also mandatory for AAT licence holders, and AAT recommends keeping cover for six years after you stop. I couldn't confirm ICAEW's minimum figures, so ask your broker. If nobody requires it of you, I'd still buy it.
• ICO fee: AAT says most pay £52, and there's no exemption for accountancy or bookkeeping services. I didn't confirm the other tiers.
• Clients' money: I'd avoid holding it if you can. Your body's rules apply if you do.

Step 7: Write your client paperwork

Do this once, properly, before your first client.

1. An enquiry form that collects only what you need.
2. A proposal with the fee basis in writing.
3. An engagement letter, with a cancellation notice where the client is a consumer.
4. A privacy notice, and a note on how you use AI if you do.
5. A due diligence checklist and ID request.
6. A professional enquiry letter for the outgoing accountant.
7. A complaints procedure. ICAEW's monitoring picks up practices that don't tell clients about it.

On that sixth point, ICAEW calls it a professional enquiry, not clearance, and it usually needs the client's consent.

The written basis is in our fee guide, and the website guide covers what your site should disclose.

Step 8: Choose your legal form

Sole practitioner or limited company is a choice you'll have opinions on, and you don't need me for the tax side. The trap is regulatory. Check that your certificate or licence covers the form you pick before you incorporate, and check your practice meets any ownership rules if you plan to use a protected description.

One thought. New clients will look at your own record, and HMRC's registration conditions look at your own tax too. I'd treat your first set of filings as part of your marketing.

Step 9: Set up how clients reach you

I'd expect most new practice owners to skip this and regret it. You'll be with a client, or deep in a return, when the next enquiry rings. In a June 2026 YouGov survey for Answer4u, 37% of 2,046 UK adults said they'd abandon a business call within 60 seconds, and only 6% would leave a voicemail.

1. A separate business number.
2. A text that goes out automatically after a missed call, so nobody hears silence.
3. A Google Business Profile with real hours and services.
4. A simple site with your status, fees and a way to book a call.
5. One standard way of asking clients for reviews.

The wording for the second one, and for chasing ID and records, is in our free template library.

Step 10: Find your first clients

There's demand. TaxCalc estimated that about 212,500 of the businesses entering MTD in the first wave had no accountant. That's an estimate from a software company. The threshold falls again in April 2027.

1. Tell everyone you know, and be specific: "I help sole traders in Kendal get ready for MTD."
2. Pick a niche. Landlords and sole trader trades are both caught by MTD, and a niche is easy to refer.
3. Speak to solicitors, financial advisers and bank managers, and agree how referrals work.
4. Join your body's directory, and your software's. Our directories guide compares them.
5. Ask your first client for a review, then ask every client after them.

Your first 30 days

• Choose your AML supervisor and apply.
• Get your practising certificate or licence.
• Register as a tax adviser.
• Buy PII cover.
• Pay the ICO fee.
• Write your engagement letter, privacy notice and due diligence checklist.
• Get a separate number and switch on the missed-call text.
• Set up your Google Business Profile.

David Bell, founder of Real Business Systems

David helps small UK businesses get found, answer every enquiry and keep customers coming back. We sell some of the services mentioned here, and we say so where they come up.