Electronic signatures and UK law: a guide for accountants

Are electronic signatures legal in the UK?

In most everyday business situations, yes. Section 7 of the Electronic Communications Act 2000 makes electronic signatures admissible as evidence. In its 2019 report, Electronic execution of documents, the Law Commission concluded that an electronic signature is capable in law of executing a document in England and Wales, including a deed, provided the signer intends to authenticate the document and any formalities that apply are satisfied.

The UK also retained the EU eIDAS Regulation in amended form after leaving the EU. It defines the three types of electronic signature below.

Simple, advanced and qualified electronic signatures

• Simple electronic signature. Any electronic data that a person uses to sign, such as a typed name, a drawn signature or clicking to accept. This is what most e-signature services provide for everyday documents.
• Advanced electronic signature (AES). Uniquely linked to and capable of identifying the signer, created with data under their sole control, and linked to the document so any later change can be detected.
• Qualified electronic signature (QES). An advanced signature created with a qualified signature creation device and based on a qualified certificate. It usually involves formal identity checks and a specialist provider.

A higher level is not automatically needed. What matters is proving who signed, what they signed and when, which is why the evidence record is as important as the signature itself.

What this means for accounting documents

• Engagement letters and terms of business are contracts and can be signed electronically. See our engagement letter guide.
• Letters of representation are letters to the accountant or auditor and can normally be signed electronically alongside the accounts. See our letter of representation guide.
• Accounts approval. Directors approving accounts and a director signing the balance sheet can be evidenced electronically. The name of the signing director still needs to appear on the accounts filed at Companies House.
• Tax return approval. Returns are filed online by the agent. Practices record the client’s approval of the figures before submission, and an electronic approval with an evidence record is a clear way to do that.

Documents that need extra care

Some documents carry their own formalities. Wills in England and Wales must still be signed and witnessed in person. Deeds that will be registered at HM Land Registry must follow its current practice guidance on electronic signatures. Scotland and Northern Ireland have their own rules for some documents. If in doubt, take legal advice before signing electronically.

How PractiSign records signatures

PractiSign uses electronic signatures with email verification. Every action is timestamped, and the completed pack includes an evidence record tied to the exact document versions each person saw and signed. PractiSign does not offer qualified electronic signatures and does not describe its signatures as advanced or qualified. Read more on the security page.