An accountant’s certificate of confirmation is a letter issued by a certified accountants/accounting firm. This certificate acts as proof that accounts of a person or business are handled by a professional accountant and are in order. It is used for various purposes like it might be needed whilst opening a bank account, for getting a company loan and might be required by the home office for the individuals applying under 5-year route settlement in the UK to ascertain that taxes are paid and other funds are maintained in proper order.
If you fail to submit this certificate, you might be unable to open a bank account, get a loan or your home office application might be rejected.
Let’s delve deep into the details to avoid the pitfalls!
Understanding Accountant’s Certificate of Confirmation
It is a confirmation letter by an accounting firm or an accountant showing that the individual’s accounts are handled by a professional and they are in order. To provide this certificate, the accountant or accounting firm should be a member of any one of the following:
- Member of a recognised UK supervisory body
- AAPA (The Association of Authorised Public Accountants)
- AAT (The Association of Accounting Technicians)
- CIMA (The Chartered Institute of Management Accountants)
- AIA (The Association of International Accountants)
- CIPFA (The Chartered Institute of Public Finance & Accountancy)
- Member of the Institute of Financial Accountants
Additionally, if your home office application shows that you’re earning income as a sole trader/self-employed or a partner, you might not need this certificate if:
- The franchise agreement is signed by both parties
- Your business is bound to produce annual audited accounts
- VAT registration certificates and VAT returns are provided by you
- The type of business you are carrying has the consent of the local authority
Importance of Accountant’s Certificate of Confirmation
There are multiple reasons for which you need this certificate. However, along with this document, there are some other documents too that you can get for your business in the UK serving the same purpose as this certificate. You need this certificate to:
- Get an account statement confirmed or for raising any business funds in the UK
- Get accurate information of your accounts to process any kind of application for your bank and other financial bodies
- Tackle issues related to different immigration/business visa types
- Ensure that you are not wasting money on a loan or credit card that has not been paid off completely in the past
- Claim Basic Payment Plan (BPS) or obtain rights, of an active farmer, you need this certificate
How Much it Costs?
It typically costs around £200-£1,500. This amount varies as per the qualification and expertise of your accountant or accounting firm. This document is mandatory in many instances, especially in immigration and if you lack it, your application might be rejected.
Quick Sum Up
To sum up the discussion, we hope that you have a better understanding of the accountant’s certificate of confirmation. In conclusion, we can say that this certificate holds significant importance when it comes to applying for a 5-year route settlement in the UK as per the immigration rules. It is also necessary to process different dealing with banks and financial bodies. In addition, you need this certificate for many other purposes.
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Disclaimer: This article intends to provide general information on the accountant’s certificate of confirmation.