Key takeaways
- AAT professional members who offer self-employed accountancy or bookkeeping services to the public in the UK need an AAT licence and anti-money laundering supervision.
- The AAT Licensed Accountant fee is £363 a year, or £254 for low earners, plus a one-off £62 admission fee.
- The AAT Licensed Bookkeeper fee is £191 a year, plus the £62 admission fee.
- Applicants must pass three tests on anti-money laundering, professional ethics and practice management.
- An accountant licence covers up to 18 services and a bookkeeper licence up to five.
- AAT students and affiliates cannot hold a licence; you must first become an AAT professional member.
- You do not need an AAT licence if you work only as a subcontractor to another firm or do unpaid work for family, friends or small charities, subject to AAT's conditions.
An AAT licence lets an AAT professional member run their own accountancy or bookkeeping business and serve clients under the AAT name, with AAT as their anti-money laundering (AML) supervisor. To get one you must be an AAT professional member, pass three short tests and meet ongoing conditions on insurance, CPD and client money. The Licensed Accountant licence costs £363 a year and the Licensed Bookkeeper licence £191, plus a £62 admission fee.
Who needs an AAT licence?
You need an AAT licence if you are an AAT professional member and you offer self-employed bookkeeping or accountancy services to the public in the UK, Channel Islands or Isle of Man. AAT’s eligibility page says this also applies if you are:
- a sole practitioner or a partner in a firm
- a director or principal holding at least 5% of the shares, personally or through family
- a designated member or member of an LLP
AAT puts the onus on you to decide whether you need a licence, and offers a licence checker if you are unsure.
Who can apply?
Only AAT professional members can apply. Students and affiliates are not eligible, and if they offer services to the public they must not refer to AAT and must register with an AML supervisor.
For an accountant licence you will normally be a full member (MAAT) or fellow (FMAAT). Full membership needs a qualifying Level 4 diploma, and AAT asks you to confirm relevant work experience or commit to its MAAT CPD pathway. AAT does not state a fixed number of months of experience. Our guide to AAT levels explains the route to Level 4.
Accountant licence or bookkeeper licence?
The two licences differ in scope and price. AAT’s licensed membership page lists:
| Licensed Bookkeeper | Licensed Accountant | |
|---|---|---|
| Services you can be approved for | Up to 5 | Up to 18 |
| Annual licence fee | £191 | £363 |
| Reduced annual fee | Not available | £254 |
Choose the licence that matches your qualifications and the services you plan to offer.
How much does an AAT licence cost?
The licence fee is on top of your AAT membership subscription. AAT’s fees page showed these figures on 6 November 2026:
| Fee | Amount |
|---|---|
| Admission fee (one-off, either licence) | £62 |
| Licensed Accountant, annual | £363 |
| Licensed Accountant, reduced annual | £254 |
| Licensed Bookkeeper, annual | £191 |
| MAAT membership, annual | £198 |
The reduced accountant fee applies below £12,570. AAT’s fees page describes this as total net income, while its licensing page says gross fee income, so check which applies to you. Existing members pay a pro rata licence fee up to their next renewal; with six months left, you pay 50%. The page did not give an effective date for these fees.
Budget for professional indemnity insurance (PII), software and the Information Commissioner’s Office data protection fee, which AAT says is typically £52 for most businesses. See AAT fees explained for the full list.
How to become an AAT licensed accountant
The application is online and follows six steps:
- Check you are eligible as an AAT professional member.
- Choose the accountant or bookkeeper licence.
- Pass the three licensed application standards tests on anti-money laundering, professional ethics and practice management.
- Arrange PII and a continuity of practice agreement.
- Apply and pay the admission fee and annual licence fee.
- Meet the licence conditions from the day you start.
AAT does not state how long approval takes. Do not take on clients or use AAT licensed logos until the licence is granted.
What are the licence conditions?
The licence comes with ongoing rules set out on AAT’s licence conditions page. Use this as a checklist:
- PII in place at all times, on an “any one claim”, fully retroactive basis, with run-off cover after you stop (AAT recommends six years)
- Continuity of practice: a signed agreement with another UK or Channel Islands accountant to cover long absence, unless you have six or fewer clients who agree in writing
- CPD recorded in practice management, AML and every approved service
- Engagement letters, client acceptance checks and a complaints procedure
- Client money kept in a client bank account, never the business account, with a separate designated account if over £10,000 will be held for more than 30 days, and reconciliations at least every five weeks
- ICO registration and fee
- Practice assurance reviews by AAT
- Annual renewal by your renewal date, or the licence expires and you must stop serving clients
AML supervision
Every accountancy service provider must be supervised for anti-money laundering. HMRC’s guidance lists AAT as a professional body supervisor, so licensed members are supervised by AAT rather than HMRC. Trading without a supervisor is a criminal offence. Our guides to AML registration for accountants and AML supervision moving to the FCA cover the wider rules.
Do you need a licence? Exemptions
You may not need an AAT licence in these cases:
- If you are authorised and regulated by a recognised chartered or certified accountancy body, you do not need an AAT licence; the bodies are listed in AAT’s licence exemption policy.
- If you work only as a subcontractor to another firm, you need PII (yours or the firm’s), training on its AML procedures and a written subcontracting agreement.
- If you do unpaid work for family, friends, small charities or non-profits, you must work within your competence, take no pay beyond expenses, not use AAT designations, and tell clients whether you hold PII.
If you think you are exempt, AAT asks you to submit its licence exemption application form promptly.
Frequently asked questions
How much is an AAT licence?
The Licensed Accountant licence costs £363 a year, or £254 at the reduced rate, and the Licensed Bookkeeper licence £191 a year. Both carry a one-off £62 admission fee.
Can an AAT student offer bookkeeping services?
Yes, but not under the AAT name. Students and affiliates cannot hold a licence, must not refer to AAT, and must register with an AML supervisor such as HMRC.
What tests do you take for an AAT licence?
Three licensed application standards tests covering anti-money laundering, professional ethics and practice management.
What is the difference between an AAT licence and an ICB licence?
Both let members practise under their body’s name with AML supervision, but fees, scope and conditions differ. See our ICB vs AAT comparison.
Sources
Rates, thresholds and rules in this guide were checked against HMRC and GOV.UK guidance on 6 November 2026. Tax rules change, so check the current position on GOV.UK or with a qualified adviser before acting. This guide is general information, not personal advice.