AAT Licence Explained: Bookkeeper and Accountant Licences
Who needs an AAT licence, the difference between the Bookkeeper and Accountant licences, eligibility, fees and the insurance and CPD obligations.
Plenty of AAT students dream of working for themselves, but there is a rule that catches people out: if you are self-employed and offer bookkeeping or accountancy services to clients, AAT requires you to hold a licence. Being a member is not enough on its own. This guide explains the two AAT licences, what each one lets you do, who can apply, what it costs, and the obligations that come with it. If you are still deciding how membership works, start with our guide to AAT membership: MAAT and FMAAT.
Everything below comes from AAT's published membership and licensing pages, checked on 17 October 2026. AAT lists its fees for 2026 to 2027 and can change its rules, so confirm the details on AAT's website before you apply.
Who needs an AAT licence?
AAT says that all self-employed members who offer bookkeeping or accountancy services to clients must hold a valid AAT licence. AAT also acts as a statutory anti-money-laundering supervisor under the Money Laundering Regulations 2017, overseen by OPBAS, which is one reason the licence exists. AAT mentions that exemptions are possible under its Licence Exemption policy, so if you think you may not need a licence, check that policy rather than assuming.
A licence is not a rank. Some people assume that Licensed Accountant sits above FMAAT on the membership ladder. We found nothing on AAT's pages describing it that way. AAT describes licences in terms of the services you are permitted to offer, not seniority. Think of it as a regulated permission to practise, rather than a promotion.
The two licences
| Bookkeeper licence | Accountant licence | |
|---|---|---|
| Services covered | Up to five | Up to 18 |
| Route in | Level 3 Certificate in Bookkeeping or Level 3 Diploma in Accounting, then bookkeeping membership (AATQB) | Level 4 Diploma, the required work experience, then full membership (MAAT) |
| Annual fee | £191 | £363 (£254 reduced rate if gross fee income is under £12,570) |
Both licences carry a £62 admission fee. AAT says it supports over 6,000 licensed members. If you are weighing up which qualification to aim for, our guide to the AAT levels shows how Level 3 and Level 4 fit together.
Eligibility: you must be a professional member first
AAT is clear that you cannot apply for a licence until you have become an AAT professional member. That means a student cannot take on paying clients as an AAT-licensed practitioner. The sequence is: complete the qualification, join as a professional member, then apply for the licence. Because the Accountant licence needs the Level 4 Diploma, the experience requirement and MAAT status, it takes longer to reach than the Bookkeeper licence.
Do not assume that finishing Level 4 automatically makes you MAAT. AAT lets people apply for MAAT in some cases with less than six months of the Level 4 Diploma left, and it attaches an experience or CPD requirement, so read the MAAT page for the current conditions.
Tests you need to pass
To be licensed, applicants must pass three tests covering anti-money-laundering, ethics and practice management. These are about running a regulated practice, not about technical bookkeeping, so allow time to prepare for them in the same way you would for any other assessment.
What it costs
On top of the licence fees above, you will pay your membership fees. AAT lists MAAT at £62 admission and £198 a year, and FMAAT at £62 admission and £213 a year. Reduced MAAT rates are listed at £122 for low income or retired members and £142 for those studying. Budget for professional indemnity insurance too, which is a separate cost paid to an insurer, and for the ICO fee that data-protection law requires of many businesses.
Obligations once you are licensed
Professional indemnity insurance is mandatory for all AAT licensed members, according to AAT. Cover must be kept for six years after the business closes. Licensed members must also follow AAT's CPD policy and its Practice Assurance Standards, and pay an ICO fee. These obligations continue for as long as you practise, so factor them into your pricing from day one.
Is the licence worth it?
If you want to run your own practice, the licence is the legal route to doing so as an AAT member, so the question is less whether it is worth it and more which licence matches the work you want to do. Bookkeeping-only practices may be well served by the Bookkeeper licence. If you want to offer a wider set of accountancy services, the Accountant licence covers up to 18. Our guides to starting a bookkeeping business and the self-employed bookkeeper route cover the business side.
We have deliberately not quoted earnings for licensed members. AAT publishes different figures on different pages, so we would rather not pick one and present it as settled.
Frequently asked questions
Can I work for myself with only a Level 3 qualification?
AAT's Bookkeeper licence route is open after the Level 3 Certificate in Bookkeeping or the Level 3 Diploma in Accounting, once you have joined as a professional member.
Is the Licensed Accountant above FMAAT?
No page we reviewed describes it that way. The licence is a permission to offer services, not a membership grade.
How many services does each licence cover?
Up to five for the Bookkeeper licence and up to 18 for the Accountant licence, according to AAT.
Is insurance compulsory?
Yes. AAT says professional indemnity insurance is mandatory for all licensed members.
Ready to start your AAT journey? Explore Learnsignal's AAT courses and plan your route towards practice.
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