Why do we ask for your ID? It’s not about trust.

You’ve just hired LHP as your new accountant or bookkeeper.

You’re excited to get your finances in order, with less tax and more tea, and you can focus on growing your business.

Then comes the slightly awkward request: “Could you please send me a copy of your driver’s license?"

Your first thought might be, “Wait, why?

It’s a completely understandable reaction. In an age of data breaches, we’re all cautious about who we share our personal data with. But when we ask for your ID, it’s nothing out of the ordinary, or personal.

In fact, it’s the exact opposite. It’s a sign that we are diligent, law-abiding professionals, who are committed to protecting both you and the integrity of the financial system.

Think of it like a doctor asking for your medical history before writing a prescription.

They need the right information to do their job safely and effectively.

Here are the key reasons why we need to verify your identity.

1.        It’s the Law: Fighting Financial Crime

This is the single most important reason. Accountants and bookkeepers are considered "gatekeepers" of the financial system. Because of this, they are legally required to comply with Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations.

What is AML/KYC? 

These are laws designed to prevent criminals from hiding illegally obtained money by making it look like it came from a legitimate source.

How does it work?

By verifying your identity with official documents, we can confirm that you are who you say you are. This simple step creates a paper trail and makes it much harder for someone to use a fake business or a stolen identity to launder money. Failing to do this can result in severe penalties for the accounting firm, including massive fines and even jail time.

So, when we ask for your ID, we are just following the law.

2.        It’s About Professional Standards and Due Diligence

Beyond the law, professional accounting bodies (like ACCA, etc.) have strict codes of conduct. These codes require members to perform "due diligence" on their clients. d Verifying identity is a fundamental part of this process.

It’s about ensuring the integrity of the profession. By knowing our clients, we can maintain high ethical standards and avoid being unknowingly implicated in fraudulent or illegal activities.

3.        It’s About Protecting YOU from Identity Theft

This is a benefit that’s all for you.  LHP handle some of your most sensitive information: your income, your tax details, your business’s financial health.

By verifying your identity upfront, we ensure we are speaking with and working for the correct person.

This prevents a scenario where a criminal could impersonate you to:

·      File a fraudulent tax return and steal your refund.

·      Access your business bank accounts.

·      Apply for loans or credit in your name.

·      Asking for your ID is one of the first and most critical steps your accountant takes to secure your financial identity.

4.        It Ensures Accuracy in Official Filings

Government agencies like the HMRC are incredibly particular about details. When we file your corporate tax return or personal taxes, the name and legal structure must match government records exactly. A simple typo or using a nickname instead of a legal name can trigger rejected returns, delayed refunds, and unwanted audits. By looking at your ID or business registration documents, your accountant gets the legal spelling, address, and entity structure right the first time, saving everyone a massive headache down the line.

How Is Your Information Kept Safe?

Here at LHP Accountants, we treat your data with the utmost care. We use secure, encrypted client portals for document sharing, have robust data protection policies in place, and are trained in handling sensitive information.

The Bottom Line

So, the next time we ask for a copy of your ID, don’t be alarmed.

See it for what it is: a standard, necessary, and responsible part of onboarding a new client.

It’s a sign that we are a trustworthy firm dedicated to compliance, accuracy, and, most importantly, your protection.

It’s the first step in building a strong, transparent, and secure professional relationship.

For all your accounting needs, please don’t hesitate to contact us.

Carmarthen Branch - Llys Deri, Parc Pensarn, Carmarthen, SA31 2NF

01267 237534 | carmarthen@lhp.co.uk

Haverfordwest Branch - 1st Floor Agriculture House, Winch Lane, Haverfordwest, SA61 1R 01437 766749 | haverfordwest@lhp.co.uk

Lampeter Branch - Tŷ Harford, Sgwâr Harford, Llambed. SA48 7HD

01570 422204 | lampeter@lhp.co.uk

Tenby Branch -Barclays Bank Chambers, 18 High Street, Tenby, SA70 7HD

01834 844743 | tenby@lhp.co.uk

Aberaeron Branch - 1 North Road, Aberaeron, Ceredigion SA46 OJD

01545 570401 | Aberaeron@lhp.co.uk

Cross Hands Branch - Suite 3 & 6, Block B, Llys Y Barcud, Cross Hands, Llanelli, SA14 6RX 01269 834877 | crosshands@lhp.co.uk

Aberystwyth Branch - Aberystwyth Innovation & Enterprise Campus, Gogerddan, Aberystwyth, Ceredigion SY23 3EE

01970 601188 | Aberystwyth@lhp.co.uk 

Llandovery Branch - Crown Stores, 31 High Street, Llandovery, SA20 0DD

01550 910910 | Llandovery@lhp.co.uk