What Is an Accountant’s Letter?

An accountant’s letter is a formal document issued by a qualified accountant to confirm specific financial facts about a client. It’s often requested by third parties—such as mortgage lenders, landlords, or grant providers—to verify income, business status, or financial history.

These letters are sometimes referred to as:

• Accountant’s declarations

• Certificates of confirmation

• Capacity-to-repay statements

• Income verification letters

 

Who Can Issue an Accountant’s Letter?

• A qualified accountant who is a member of a recognised professional body (e.g. ACCA, ICAEW, AAT)

• The accountant must have a professional relationship with the client and access to verified financial records

• The accountant must act within the scope of their professional indemnity insurance and ethical guidelines

Important: Accountants cannot issue letters predicting future financial performance unless they hold a regulated credit licence (e.g. under the FCA).

 

When Is an Accountant’s Letter Needed?

• Mortgage or loan applications

• Rental agreements or lease approvals

• Visa or immigration applications

• Grant or funding applications

• Business registration or licensing

• Proof of income for self-employed individuals

• HMRC enquiries or appeals

 

What the Accountant Must Do Before Issuing the Letter

To ensure accuracy and compliance, the accountant should:

• Review the client’s financial records (e.g. tax returns, accounts, CIS statements, bank statements)

• Confirm the scope of the request—what facts are being asked for, and by whom

• Ensure the information is factual and historical—not speculative or forward-looking

• Check professional indemnity coverage and ethical obligations

• Obtain written consent from the client to disclose financial information

• Use standard templates where available, and include disclaimers or limitations

• Avoid statements about creditworthiness or loan purpose unless properly licensed

 

How can we Support Our Clients:

• Issue accountant letters based on verified financial records

• Provide factual summaries of income, trading history, and tax compliance

• Ensure all letters meet professional standards and indemnity requirements

• Communicate directly with third parties when authorised

• Support bilingual clients, including Romanian speakers

• Help clients understand what can and cannot be included

 

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