An accountant who is an employee, LLP member or other worker is protected by Part IVA of the Employment Rights Act 1996 when they make a qualifying disclosure of wrongdoing to the right person: dismissal for it is automatically unfair and any other detriment is unlawful. An accountant in practice who reports a client is not that client’s worker, so their protection comes instead from the confidentiality exceptions in the code of ethics and the money laundering reporting regime. Separately, ICAEW members have a duty to report misconduct by other members.

Who does whistleblowing law protect?

The protection, introduced by the Public Interest Disclosure Act 1998 and now in Part IVA of the Employment Rights Act 1996, applies to workers. GOV.UK lists employees, trainees, agency workers and members of a limited liability partnership as examples. Section 43K extends the meaning of worker to some people who would otherwise fall outside it, such as individuals supplied by an agency on terms set by the end user. ICAEW notes that the extension to LLP members followed a Supreme Court decision in 2014, which is relevant to members of accountancy firms trading as LLPs.

The law is about the relationship between a worker and the organisation they work for. A sole practitioner who discovers fraud at a client is not the client’s worker, so the employment law protections do not attach to a report about the client. That situation is covered later on this page.

What counts as a qualifying disclosure?

Under section 43B, a disclosure qualifies if the worker reasonably believes it is made in the public interest and that it tends to show one or more of the following:

  • a criminal offence has been, is being or is likely to be committed;
  • a person has failed, or is likely to fail, to comply with a legal obligation;
  • a miscarriage of justice;
  • danger to health or safety;
  • sexual harassment;
  • damage to the environment;
  • deliberate concealment of any of these.

It does not matter whether the failure happened in the UK or elsewhere (section 43B(2)). Two exclusions are important for accountants. A disclosure is not qualifying if making it is itself an offence (section 43B(3)), which is why a disclosure that amounts to tipping off gains no protection. A disclosure of legally privileged information by someone who received it while obtaining legal advice is also excluded (section 43B(4)). GOV.UK confirms that personal grievances are not covered unless the case is in the public interest. ICAEW notes that good faith is no longer a condition, but compensation can be reduced if a disclosure was made in bad faith.

Who can you tell and stay protected?

The route determines the protection. Sections 43C to 43H set out the permitted recipients:

  • Your employer, or the person legally responsible for the failure, or someone your employer’s procedure authorises (section 43C).
  • A legal adviser, in the course of obtaining legal advice (section 43D).
  • A prescribed person, if you reasonably believe the failure falls within their remit and that the information is substantially true (section 43F). The government list includes the Financial Reporting Council for statutory audit and the conduct of accountants, HMRC for the administration of UK taxes, the FCA for conduct of regulated firms and of the professional body anti money laundering supervisors, and the Serious Fraud Office for serious or complex fraud.
  • Anyone else, only if the stricter conditions in section 43G are met: you reasonably believe the information is substantially true, the disclosure is not for personal gain, one of the listed conditions applies (such as a reasonable fear of detriment or having already disclosed the same information to your employer or a prescribed person), and it is reasonable in all the circumstances. Section 43H relaxes the conditions for exceptionally serious failures.

GOV.UK warns that going to the media will in most cases lose whistleblowing protection.

What protection do you actually get?

Section 47B gives a worker the right not to suffer any detriment because of a protected disclosure, including detriment by colleagues and agents, for which the employer is treated as responsible. Section 103A makes dismissal of an employee automatically unfair if the main reason is a protected disclosure, and section 108(3)(ff) removes the usual qualifying period of employment for that claim. Section 43J makes void any contractual term, including in a settlement agreement, that tries to stop a worker making a protected disclosure. In a detriment claim, section 48(2) puts the burden on the employer to show the ground on which it acted.

Time limits are short. The current text of sections 48(3) and 111(2) requires a tribunal claim within six months of the act complained of or of the effective date of termination, and GOV.UK says Acas must be notified before a tribunal claim is brought.

One limit catches accountants out: ICAEW points out that employment law protection does not protect a chartered accountant from professional disciplinary proceedings. The code still applies to how you obtain and disclose information.

What do the professional bodies require?

The ICAEW Code of Ethics says an ethical culture is most effective when an organisation has policies that encourage and protect those who report actual or suspected illegal or unethical behaviour, including whistleblowers (120.13 A2). For ICAEW members there is also a positive duty. Disciplinary Byelaw 6 requires every member, firm, affiliate and relevant person to report to ICAEW’s Conduct Department events which may indicate that they, or another member or firm, may be liable to disciplinary action. ICAEW’s guidance says:

  • the duty does not extend to minor faults or suspicions unsupported by evidence;
  • in a firm, the duty rests primarily with the most senior ICAEW member who knows of the issue, but if they decline to report and you have clear evidence of an attempt to conceal it, you should report separately;
  • members must not prevent others from reporting, and managers must make sure those who report do not suffer, with disciplinary action threatened against anyone who obstructs a report;
  • you can ask for your identity to be kept confidential, while anonymous reports are often hard to act on;
  • a report to ICAEW does not replace your legal duty to report money laundering.

Where can an accountant get confidential advice first?

ICAEW’s Ethics Advisory Service gives confidential advice to members, and ICAEW’s guidance exempts its staff, and members of the Support Members Scheme, from the duty to report, except where disclosure is required by law. ICAEW also points members to the whistleblowing charity Protect. ICAS has partnered with Protect to give members and students access to an independent whistleblowing advice line, alongside its own ethics helpline. ACCA runs a confidential whistleblowing line and email for reports that an ACCA firm, member, affiliate or student is breaching the Money Laundering Regulations or is involved in money laundering; ACCA asks you to identify the right anti money laundering supervisor first.

What if you are reporting a client rather than your employer?

A practitioner reporting a client relies on different rules. Under R114.3 of the code, confidential information may be disclosed where there is a legal or professional duty or right to do so. The NOCLAR provisions confirm that a disclosure to an appropriate authority made in the public interest is permitted under R114.3, and list the availability of whistleblowing protection as a factor when deciding whether to report. For money laundering, section 337 of the Proceeds of Crime Act 2002 provides that a report to a nominated officer or the authorities, made as soon as practicable, does not breach any restriction on disclosing information. See suspicious activity reports and confidentiality.

How does this work in practice?

Illustration only. An audit senior at an LLP sees a manager backdating file reviews before a regulatory inspection. She raises it with the firm’s ethics partner under the firm’s whistleblowing policy, which is a disclosure to her employer under section 43C. Backdating documents is listed by ICAEW as likely misconduct, so the duty to report to ICAEW also arises; it rests primarily with the most senior ICAEW member aware of it. If the firm does nothing and she believes the issue is being concealed, she can report to ICAEW herself and, because it concerns statutory audit, to the FRC as a prescribed person. If she is then sidelined for promotion because of the report, she can bring a detriment claim within the time limit.

What mistakes should you avoid?

  • Going to the press first, which usually loses protection.
  • Investigating on your own. ICAEW’s advice is not to become a private detective, to remember you are a witness rather than a complainant, and that there may be an innocent explanation.
  • Using a whistleblowing procedure to pursue a personal grievance.
  • Assuming a confidentiality clause in a settlement agreement stops a protected disclosure; section 43J says it does not.
  • Telling the person concerned that a suspicious activity report has been made.

Solar Protect runs fee protection schemes for accountancy and bookkeeping practices. See how our accountant schemes work or read fee protection schemes for accountants.

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Reviewed by Christine Anderson, Broker, Solar Protect. Last reviewed 8 October 2026. Part of Accountapedia, the Solar Protect guide to UK tax and accounting. This page is general information, not personalised advice.