Diploma in Professional Accounting
Diploma for Financial Advisers
Member of London Institute of Banking and Finance

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Many self-employed people in the UK are surprised when their accountant asks for documents such as a passport, driving licence, or proof of address. But don’t worry—this is a normal and important part of the process.

Your accountant isn’t being difficult; they’re following strict legal rules that protect both you and the wider financial system.

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Following Anti-Money Laundering (AML) Rules

The main reason your accountant needs your ID is to comply with Anti-Money Laundering (AML) regulations. In the UK, accountants are legally required to check who they are working with. These rules help stop illegal activities like money laundering and terrorist financing.

If accountants don’t follow these rules, they could face serious fines or even lose their professional reputation. By checking your ID, your accountant makes sure they are protecting you, their practice, and the UK economy.

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What Is Customer Due Diligence (CDD)?

You might hear your accountant mention Customer Due Diligence (CDD), sometimes called Know Your Customer (KYC). This is simply the process of checking who you are and understanding your business. It usually includes:

• Identity check – showing a passport or driving licence.
• Proof of address – such as a utility bill or bank statement.
• Business understanding – your accountant may ask what your business does and where your money comes from.

This isn’t just “red tape.” It’s a way to keep everything transparent and safe. It also builds trust between you and your accountant.

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New Rules Coming from Companies House in 2025

If you run your business through a limited company, there’s another reason you’ll need to prove your identity. From 2025, Companies House will bring in mandatory ID checks for all company directors and people involved in running a business.

Many accountants are registered as Authorised Corporate Service Providers (ACSPs), which means they can handle these ID checks for you. By giving your ID to your accountant now, you’ll already be one step ahead of these upcoming changes.

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Final Thoughts

So, if you’re wondering “why accountant needs my ID?” the answer is simple: it’s the law, and it protects everyone.

By asking for your ID, your accountant is:

• Following AML regulations.
• Keeping their services safe and professional.
• Preparing you for new Companies House rules.

It may feel like a formality, but it’s a vital part of running a secure and trustworthy business in the UK.

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