AAT licensed member application form

As your role in any of your self-employed businesses do not meet the criteria to hold an AAT licence you are not able to continue with your application.

Bookkeeping

This service relates to the recording of actual transactions in monetary terms to trial balance only, without any adjustments. This service is categorised as a Tier 4 service.

You will need to have experience in the following areas in order to be approved in this service:

• bank reconciliations
• making and maintaining accurate records of financial transactions and keeping the business up to date and compliant
• recording cash transactions.

Financial accounting and accounts preparation for sole traders and partnerships

This service relates to the preparation of financial accounts for sole traders and partnerships but specifically excludes any accounts required for statutory purposes under the prevailing Companies Acts. This service is categorised as a Tier 4 service.

You will need to have experience in the following areas in order to be approved in this service:
• preparing trial balance profit and loss and balance sheets for sole traders and partnerships
• discussing and explaining accounts with clients
• analysis of trial balance
• making accounting or financial adjustments.

Value added tax

This service relates to the preparation of VAT returns and is categorised as a Tier 4 service.

You will need to have experience in the following areas in order to be approved in this service:
• preparing quarterly VAT returns
• correcting errors to VAT returns
• advising on Making Tax Digital (MTD)
• advising on VAT registration thresholds

Computerised accountancy systems

This service relates to the installation of and training on accounting software for clients. This service is categorised as a Tier 4 service.

You will need to have experience in the following areas in order to be approved in this service:
• knowledge of various accountancy systems
• assisting in choosing an appropriate software package
• setting up a client on a computerised package
• training and assisting clients on accountancy software

Payroll

This service relates to the calculation of the net pay due to a client’s employees after taking into account all deductions and reimbursement of expenses. This service is categorised as a Tier 4 service.

You will need to have experience in the following areas in order to be approved in this service:
• preparing monthly and weekly payroll including processing of statutory pension and year-end procedures
• producing payroll reconciliations on a monthly basis
• discussing tax calculations with staff and clients
• discussing payment queries with staff and clients
• pensions administration and submission including auto enrolment
• Real Time Information (RTI), Statutory payments processing (e.g. Sick Pay (SSP).

Financial accounts and accounts preparation for statutory purposes

This service relates to the preparation of the full and abbreviated statutory accounts that are compliant with prevailing legislation including the Companies Act and current UK GAAP. This service is categorised as a Tier 3 service.

You will need to have experience in the following areas in order to be approved in this service:
• preparing accounts from a variety of sources, such as base records, bank statements or completed bookkeeping packages
• preparing statutory accounts from the company’s financial accounts at the end of the financial period
• keeping accounts accurate and up to date
• advising about and meeting deadlines for submissions
• filing of accounts to statutory bodies such as Companies House.

Budgeting and forecasting

This service relates to the preparation of financial reports before the accounting period(s) and the prediction of relevant future factors affecting a business and its environment. This service is categorised as a Tier 3 service.

You will need to have experience in the following areas in order to be approved in this service:
• preparing and presenting regular management pack/s, comparing budget with actuals and explaining the variances
• collaborating on the best format for the management pack
• communicating budget and forecasting information to a client.

Management accounting

This service relates to the preparation of summarised accounting data reports for the owner or management team of a business, on a frequent basis. This service is categorised as a Tier 3 service.

You will need to have experience in the following areas in order to be approved in this service:
• preparing management accounts for the board/clients including prepayments, accruals and other journals
• performing variance analysis, making meaningful comments on variances, explaining large variances to clients
• communicating management accounting information to a client.

Personal Income Tax

This service relates to the calculation of an individual’s Income Tax liability, taking into account their total taxable income received in a tax year. This service is categorised as a Tier 2 service.

You will need to have experience in the following areas in order to be approved in this service:
• completing and submitting personal tax returns
• discussing tax returns with clients and advising when and how payments should be made
• discussing and explaining coding notices with clients
• explain the potential liabilities based on client income
• calculating tax liability from total relevant income after the deduction of relevant allowances and reliefs
• advising on tax rules and regulations.

Business Income Tax

This service relates to the calculation of the profits/losses for tax purposes of an unincorporated business and applying all prevailing legislation to complete all relevant HMRC returns. This service is categorised as a Tier 2 service.

You will need to have experience in the following areas in order to be approved in this service:
• preparing accounts and calculating appropriate tax rates to calculate charges
• liaising with HMRC on a client’s behalf
• explaining principles of business tax with clients
• submitting income tax returns within imposed deadlines and complying with current legislation
• advising on tax payment amounts and deadlines.

Inheritance Tax

This service relates to the tax payable either on the advent of a person’s death, or at the time of making a chargeable lifetime transfer, including the completion of all relevant HMRC returns. This service is categorised as a Tier 2 service.

You will need to have experience in the following areas in order to be approved in this service:
• calculating Inheritance tax due and advising on Inheritance tax planning
• advising client re information required to produce returns
• advising clients re the process and liabilities of Inheritance tax
• reviewing Inheritance tax returns due to HMRC
• demonstrating knowledge of Inheritance tax deadlines.

Capital Gains Tax

This service relates to quantifying the gain chargeable to tax, or loss for relief against other gains, arising from the disposal of a capital asset. This service is categorised as a Tier 2 service.

You will need to have experience in the following areas in order to be approved in this service:
• calculating gains made on sale of assets and relevant tax charges
• advising on all valid reductions and reliefs and on how to utilise annual exemption to minimise Capital Gains Tax liability
• advising on when and how to report any Capital Gains Tax, such as property disposals.

Corporation Tax

This service relates to the tax liability arising on the taxable profits of an incorporated business, charity, club, co-operative or other unincorporated association. This service is categorised as a Tier 2 service.

You will need to have experience in the following areas in order to be approved in this service:
• advising of payment amounts and deadlines
• completing and submitting Corporation Tax returns
• preparing Corporation Tax computations based on accounts produced
• advising on dis/allowable expenses, deductions and reliefs.

Limited assurance engagement

This service relates to relates to evaluating financial statements and expressing an assurance that nothing has come to your attention to refute the principal’s statement that they give a true and fair view. This negative assurance can be used to help others make more confident decisions. This service is categorised as a Tier 1 service.

You will need to have experience in the following areas in order to be approved in this service:
• gathering required information from the client
• accounts preparation and finalisation in the appropriate format
• advising on relevant disclosures
• reporting back to the client.

Independent examination

This service relates to reviewing the accounting records kept by a charity and comparing those against the accounts presented, seeking out unusual items or disclosures identified. This service is categorised as a Tier 1 service.

You will need to have experience in the following areas in order to be approved in this service:
• reviewing accounts produced and ensuring that they were accurate in line with relevant reporting standards
• preparing accounts in line with the Independent examination of charity accounts examiners directions and guidance
• working with and advising trustees and others
• explaining relevant HMRC and Companies House legislations
• explaining the Charities Act
• explaining deadlines
• explaining Statements of Recommended Practice (SORP).

Company Secretarial Services (Trust or Company Services Provider (TCSP))

This service relates to:
(a) forming companies or other legal persons;
(b) acting, or arranging for another person to act:
           i. as a director or secretary of a company;
           ii. as a partner of a partnership; or
           iii. in a similar capacity in relation to other legal persons;
(c) providing a registered office, business address, correspondence or administrative address or other related services for a company,
partnership or any other legal person or legal arrangement;
(d) acting, or arranging for another person to act, as:
           i. a trustee of an express trust or similar legal arrangement; or
           ii. a nominee shareholder for a person other than a company whose securities are listed on a regulated market.

This service is categorised as a Tier 1 service

You will need to have experience in the following areas in order to be approved in this service:
• arranging the incorporation (registration) of a business as a limited company (or other legal persons) on Companies House
• identifying and recording the people who own or control the company (including persons with significant control) on Companies House
• advising on or arranging Corporation Tax registration on behalf of the client at the same time as registering with Companies House
• acting or arranging for another person to act as a director, secretary, partner, trustee, or nominee shareholder and ensuring all appointment
details are filed correctly at Companies House
• preparing company updates and submitting them to Companies House on a client’s behalf.

Due to the risk of money laundering, please note that if you are approved to offer Company secretarial services, your details will be passed to HMRC who hold a register of all TCSPs (Trust and Company Service Providers). This is a legal requirement.

Internal audit

This service relates to assessing an organisation’s effectiveness of management, financial controls and governance processes with a view to improve it. This service is categorised as a Tier 1 service.

You will need to have experience in the following areas in order to be approved in this service:
• carrying out internal audit and controls to assess effectiveness related to regulatory and financial reporting
• liaising with business unit owners to improve the effectiveness of financial controls and governance
• gathering required information from the client
• reporting back to the client.

Forensic accounting

This service relates to the analysis of financial and non-financial information that is required as part of a dispute, litigation or legal proceeding. This service is categorised as a Tier 1 service.

You will need to have experience in the following areas in order to be approved in this service:
• reviewing fraudulent bank accounts in a subcontractor business
• assisting with legal proceedings
• providing an in depth examination of accounting and other records.

If your business has started trading, this means you’ve engaged with clients to provide accountancy or bookkeeping services.

*The annual gross income refers to your firm's total income before taxes and deductions. This does not include any income from other employment, property, investments, or other services rendered.

*The annual gross income refers to your firm's total income before taxes and deductions. This does not include any income from other employment, property, investments, or other services rendered.

*Find out more about business models

All AAT licensed members must register for anti-money laundering (AML) supervision. All members in the UK applying for a licence are eligible to be supervised by us, and the cost of supervision is included within your fee. However, we may contact you if it is more appropriate for your firm to be supervised by an alternative authority.

We exercise our supervisory function by conducting practice assurance reviews and providing support to help you understand the controls and monitoring you must have in place to comply with the current Money Laundering Regulations in force. For further guidance please visit aat.org.uk/licence or watch this helpful video

If HMRC is the current supervisor, you’ll need to select No as HMRC will not supervise AAT licensed members.

I will comply with my obligations under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (as amended, updated or re-enacted from time to time) or the anti-money laundering legislation within the jurisdiction where my business operates, and any other anti-money laundering legislation (as it comes into force), when providing accountancy services, bookkeeping services, or trust or company services to clients.

Prior to providing services to clients, I will have policies, controls and procedures in place to mitigate and effectively manage the risks of money laundering and terrorist financing. These policies, controls and procedures will be in writing and will include:

• firm-wide risk assessment
• internal controls
• customer due diligence and risk assessment
• reliance and record keeping
• compliance monitoring.

I will ensure I am registered with a supervisory authority within the jurisdiction where my business operates at all times whilst providing services to clients.

If AAT supervises one or more of my businesses, I will:

• notify AAT if my AML supervision details change or I discover they are incorrect (details around the changes that need to be reported and the timeframe in which they must be reported can be found at aat.org.uk/aml)
• provide copies of my written policies, controls and procedures to AAT on request
• provide details of any compliance officer appointed under Regulation 21 of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (as amended, updated or re-enacted from time to time) to AAT on request.

For your licence application to be approved, you’ll need to complete and pass three licensed application standards (LAS) tests in anti-money laundering (AML), professional ethics and practice management.

• You must pass all three tests.
• You have three attempts to pass each test.
• You have three months after submitting your licence application to pass all three. If you don’t, your licence application will be withdrawn.
• It doesn’t matter which order you pass them in.

Once you've submitted your application, you’ll receive an email within 10 working days with guidance on how to access the LAS tests.

Your details will be displayed in the AAT Licensed member directory. You have the option of displaying full or partial details.

If you have more than one business we will display the first one in the application.

Full view:

Displays your full name, registered business name, business number, AAT professional membership designatory letters, registered full business address, website (this is optional), your approved services and a contact link whereby a user will be able to contact you by email. Note that your email address won’t be displayed.

Partial view:

Displays your full name, registered business name, AAT professional membership designatory letters, town and county of your business and your approved services.

Professional Indemnity Insurance (PII)

I can confirm that my PII for this business conforms to AAT’s Professional Indemnity Insurance (PII) Policy and can confirm that my policy coverage:

• is on an any one claim basis
• includes full civil liability cover
• is fully retroactive with no gaps in policy cover
• meets the minimum level of cover required within AAT’s PII Policy determined by my firm’s gross fee income.

I will provide AAT copies of my PII documents, if requested.

Continuity of practice

AAT licensed members are required to have continuity of practice cover in place for this business, provided by another sole practitioner or firm of accountants, to protect the interests of clients in the event of being incapacitated through illness, or the cessation of the firm. It is not mandatory for licence holders with six or fewer clients to have continuity cover provided clients are made aware and agree to this, and the matter is documented within the signed letter of engagement.

Practice management

I confirm:

• I deliver my services in accordance with the Provision of Services Regulations 2009
• I have read AAT's Client Care Policy and deliver my services in accordance with the requirements of this policy
• I have provided letters of engagement which meet the requirements of AAT's Client Care Policy to each client, prior to any professional work being undertaken
• I undertake and document an annual review of my firm's compliance with the relevant laws, regulations and standards and will submit this to AAT on request.

Data protection 

I confirm:

• I have paid the data protection fee to the Information Commissioner's Office (ICO) and understand this must be renewed every 12 months and that AAT may check registration details at any time
• I am complying with the requirements of the General Data Protection Regulation (GDPR) and the Data Protection Act 2018 (as amended, updated or re-enacted from time to time).

Organisations and sole traders who process personal information need to pay a data protection fee to the Information Commissioner’s Office (ICO) and renew this every 12 months. More information can be found in the  ICO’s Guide to the data protection fee.

Visit the ICO website for the current data protection requirements, and guidance to help you understand the legal framework and what you need to do to comply in practice.

AAT requires all members to maintain the high standards expected of the profession and not act in a way that poses a risk to the public or could undermine public confidence in AAT, its members, or the wider profession.

Fit and proper requires maintaining the high standards expected of those who are subject to bankruptcy, debt relief, IVA, arrangement of creditors, county court judgement (CCJ), corporate insolvency, criminal conviction, civil sanction, disciplinary sanction.

AAT aims to ensure that our members behave professionally and ethically at all times in order to protect the standards and integrity of AAT and its members and promote public confidence in the accountancy profession.

This is why we take steps to consider whether a member is, and continues to be, a fit and proper person, by assessing their suitability in respect criminal convictions, insolvency matters, or disciplinary sanctions with other professional bodies or regulators. AAT’s fit and proper policy framework is intended to support us in meeting that obligation.

Bankruptcy

Bankruptcy is a legal process through which people or other entities who cannot repay debts to creditors may seek relief from some or all their debts. In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the debtor. Discharge is usually automatic after 12 months and if you require a Certificate of Discharge, you can request this from the official receiver.

Debt Relief Order (DRO)

A DRO is a form of debt relief to people who have no disposable income to repay their creditors and can’t afford to make themselves bankrupt. If you’re accepted for a DRO there’s a 12-month moratorium period. At the end of the moratorium period all the debts included in the DRO are written off.

Your DRO will normally end 12 months after the date it was approved. If you require evidence your order has been discharged, you can request this from the official receiver.

Individual Voluntary Arrangement (IVA)

An IVA is a formal and legally binding agreement between you and your creditors allowing you to make affordable payments to your debts, usually over five or six years. This means it’s approved by the court and your creditors must stick to it.

Your IVA will have been administered by a licensed insolvency practitioner, who will be able to provide you with confirmation you’ve been complying with the terms of the arrangement or have satisfied your creditors in full.

Arrangement with creditors

An arrangement with creditors is where a person is unable to repay their creditors and has reached an informal agreement to pay all or part of a debt. AAT requires applicants and members to declare any breach of contractual payments to creditors that has not been remedied within one year of the date of first breach, including debt management plans.

You are not required to notify AAT of any loan or credit arrangements. For example, student loans, mortgages, car finance agreements or other purchase credit agreements.

County court judgment (CCJ)

CCJs are legal decisions handed down by county courts where a creditor takes action against an individual for any breach of contractual payments. If a CCJ is not satisfied in full within 30 days it is kept on record for six years by the Register and credit reference agencies (CRAs). The record is removed after six years.

If you’re uncertain of the status of your CCJ and/or no longer have any information available, you can use the Register of Judgments, Orders and Fines to check

Corporate insolvency

Corporate insolvency is when an individual is or was a director of an entity which is or was insolvent as defined in the Insolvency Act 1986, including any modifications as detailed in the Enterprise Act 2002, or equivalent legislation in other jurisdictions.

• Examples of corporate insolvency procedures include:
• compulsory liquidation (CWU)
• creditors' voluntary liquidation (CVL)
• members' voluntary liquidation (MVL)
• administration (ADM)
• administrative receivership (ADR)
• Company Voluntary Arrangement (CVA).

Criminal conviction

A criminal conviction is where a person has been convicted of a criminal offence in the UK (either an indictable or a summary offence) or found guilty of a criminal offence in a jurisdiction other than the UK. 

The length of your rehabilitation period depends on the sentence you received or what sort of punishment you got. After that, your conviction is “spent” and will not need to be disclosed.

In the UK, to check if your conviction is spent use the online disclosure calculator along with guidance in the public domain. This calculator establishes when criminal convictions become spent under the Act, as it applies in England and Wales. Alternatively, obtain a copy of your Basic Disclosure Certificate, from the appropriate disclosure service below to confirm if you no longer hold an outstanding criminal conviction. 

• Disclosure and Barring Service  (England and Wales)
• Disclosure Scotland (Scotland)
• AccessNI (Northern Ireland)

You don’t need to declare:

• any spent criminal convictions
• any road traffic offences that were dealt with by way of a fixed penalty notice.

Civil sanction

A civil sanction is a sanction for an offence created under specific statutes imposed by a competent court, tribunal, or any other administrative body in the UK (or equivalent jurisdiction). Examples are sanctions under the Money Laundering Regulations, the Companies Act, or health and safety legislation from time to time in force. Sanctions of this nature may not always result in criminal sentencing and may include fines, disqualification, and formal warnings.

The term “civil sanction” covers a broad range of offences where action is taken against an individual but falls short of a criminal conviction. For example disqualification as a company director, a disqualification undertaking, a bankruptcy restrictions order, enforcement action taken by the Health and Safety Executive, or anti-social behaviour orders.

Disciplinary sanction

If your business has started trading, this means you’ve engaged with clients to provide accountancy or bookkeeping services.

*The annual gross income refers to your firm's total income before taxes and deductions. This does not include any income from other employment, property, investments, or other services rendered.

*The annual gross income refers to your firm's total income before taxes and deductions. This does not include any income from other employment, property, investments, or other services rendered.

*Find out more about business models

All AAT licensed members must register for anti-money laundering (AML) supervision. All members in the UK applying for a licence are eligible to be supervised by us, and the cost of supervision is included within your fee. However, we may contact you if it is more appropriate for your firm to be supervised by an alternative authority.

We exercise our supervisory function by conducting practice assurance reviews and providing support to help you understand the controls and monitoring you must have in place to comply with the current Money Laundering Regulations in force. For further guidance please visit aat.org.uk/licence or watch this helpful video

If HMRC is the current supervisor, you’ll need to select No as HMRC will not supervise AAT licensed members.

Professional Indemnity Insurance (PII)

I can confirm that my PII for this business conforms to AAT’s Professional Indemnity Insurance (PII) Policy and can confirm that my policy coverage:

• is on an any one claim basis
• includes full civil liability cover
• is fully retroactive with no gaps in policy cover
• meets the minimum level of cover required within AAT’s PII Policy determined by my firm’s gross fee income.

I will provide AAT copies of my PII documents, if requested.

Continuity of practice

AAT licensed members are required to have continuity of practice cover in place for this business, provided by another sole practitioner or firm of accountants, to protect the interests of clients in the event of being incapacitated through illness, or the cessation of the firm. It is not mandatory for licence holders with six or fewer clients to have continuity cover provided clients are made aware and agree to this, and the matter is documented within the signed letter of engagement.

If you have more than two businesses where you offer accountancy or bookkeepping services to clients, please complete the AAT licensed member business details form and email it to us at applications@aat.org.uk

Your fee

Once we’ve received your application, we’ll send you an email with details of how to pay the one-off admission fee and pro-rata annual licence fee online. Your application won't be assessed until payment has been made. If you have a Direct Debit already set up with us, this will be used for your annual licence fee.

If you haven't paid within a month of our email your application will be withdrawn, and you'll need to complete this form again if you still want to apply.

Your renewal

Your licence will start from the day your application is approved. You'll need to renew your licence and membership on an annual basis. We'll be in touch closer to your renewal date.

You may be eligible for a reduction on your Licensed Accountant fee, if you're earning less than £12,570 net per year from all your work (including both salaried and self-employed work)

You must confirm you will adhere at all times with AAT’s regulations and policies. Please carefully read the following declaration, select the appropriate boxes and sign and date this section.

I confirm that the information I have provided on this form (or supporting documentation) is true, complete and accurate to the best of my knowledge and none of the information requested or other material information has been omitted. I acknowledge that:

a) if at any time I become aware that any information in this form (or supporting it) is incorrect or if it changes in any way, I will notify AAT immediately;

b) I will inform AAT, within 30 days, if I am subject to insolvency, a criminal conviction, a civil sanction, or a disciplinary finding by another professional body or have had anti-money laundering supervision refused or cancelled;

c) if any information in this application (or supporting it) is incorrect, the application may be invalid, and AAT’s Council shall not be bound by any decision it has reached based on such information;

d) AAT shall be entitled to suspend or terminate any licence granted based on information in the application (or supporting it) whilst it investigates any reasonable concerns about my eligibility for the licence;

e) I may be liable to enforcement action by AAT in respect of any information in this application (or supporting it) which is incorrect.

I understand that if I provide bookkeeping services, accountancy services or trust or company services to clients in the UK, I must at all times be supervised by AAT or another supervisory authority approved under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (as amended, updated or re-enacted from time to time) in order to comply with the provisions of the regulations. Alternatively, if I provide accountancy or bookkeeping services in the Channel Islands or Isle of Man, I must at all times be registered with the relevant anti-money laundering supervisory authority within the jurisdiction where my business operates.

I acknowledge that when necessary to fulfil its role as a supervisory authority pursuant to the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, (as amended, updated or re-enacted from time to time) or for the detection of and prevention of criminal activities, AAT may disclose information about me to the relevant government departments and other enforcement and supervisory authorities.

I shall abide by the provisions of the Articles of Association, Code of Professional Ethics, AAT Regulations, fit and proper requirements, whistleblowing guidance, and the bye-laws. Where I do not, I acknowledge that AAT may take such action as is permitted in accordance with those Regulations and policies.

I shall abide by the provisions of AAT’s CPD Policy and will retain my CPD records for AAT’s review for a period of at least five years. If I fail to comply or demonstrate such compliance when requested to do so, I understand this may lead to the removal of my membership from the Register.

I undertake that I will only provide services to the public which are approved under my licence and confirm I will only use the terms below while I retain a valid AAT licence to provide self-employed accountancy services or bookkeeping services under the Licensing Regulations:

• “AAT Licensed Bookkeeper” - for members granted a bookkeeping licence only
• “AAT Licensed Accountant” -  for members granted an accounting licence only.

I accept that designatory letters are personal and must not be used after the name of a firm and failure to adhere may result in disciplinary action. I acknowledge that if I use the AAT logo to advertise my services, I will do so in accordance with the brand guidelines for licensed members.

I acknowledge that as part of any disciplinary investigation or proceedings carried out by AAT, it may use the information in this form, contact relevant third parties to request information, and disclose to governmental and other professional bodies: the alleged misconduct, the findings of its investigations, and the outcome of disciplinary proceedings. I acknowledge that AAT may publicise disciplinary orders and the facts relating to them in accordance with the Publication Policy in force from time to time.

I have read AAT’s Privacy policy and understand fully how information provided on this form or in other correspondence with AAT will be used.

For more information about AAT’s policies please refer to aat.org.uk/professional-standards

Once you've clicked the submit button, please allow up to 60 seconds for the confirmation page to be displayed before closing this application form.

You'll receive an email from us within 10 working days after you've successfully submitted the application.

If you have any questions about your application please call the Customer Service team on +44 (0)20 3735 2468. Lines are open 09.00 to 17.00 (UK time), Monday to Friday. Alternatively you can email applications@aat.org.uk