Guide
How to switch accountants, step by step
Switching accountants is simpler than most people expect. The new firm does most of the work, and you never have to make the awkward call yourself. Here is what happens and in what order.
In short
Tell your new accountant you want to move. They write to your current accountant for professional clearance and the records they need. You authorise them with HMRC and give them access to your software. The switch usually takes two to three weeks and can happen at any point in the year.
The steps
- Agree terms with the new firm. A fixed fee and an engagement letter setting out exactly what is included.
- Identity checks. The new firm must verify who you are and, for a company, who owns and controls it. This is a legal requirement under the money laundering regulations, not a formality.
- Professional clearance. The new firm writes to your existing accountant asking whether there is any professional reason it should not act, and requesting the handover information. You do not need to have that conversation yourself.
- Handover of information. Typically the last accounts and tax computations, working papers where needed, capital allowance pools, losses carried forward, and details of any open HMRC matters.
- HMRC authorisation. You authorise the new firm as your agent for each tax: corporation tax, PAYE, VAT and self assessment. This is usually done online with a code HMRC sends you.
- Software and Companies House access. Add the new firm as a user in Xero, FreeAgent or your payroll software, and share the company authentication code if they will file for you.
When to switch
Any time. The cleanest point is shortly after a year end, before the accounts are prepared. Mid-year switches are common too; the new firm simply picks up the next deadline. The one time to be careful is within a few weeks of a filing deadline. In that case agree who is filing what, in writing.
What about fees owed to the old firm?
Unpaid fees are a matter between you and your previous accountant. They are not usually a reason to withhold clearance, but settling or agreeing them avoids delays.
Common worries
- "Will my current accountant be offended?" Changing firms is routine, and the professional clearance process exists so it can be handled professionally.
- "Will I lose my records?" No. Your books belong to you, and if your software subscription is in your own name, nothing needs to move at all.
- "Will HMRC notice?" Only in that correspondence starts going to the new agent.
Common questions
Questions we are often asked
Tell your new accountant you want to move. They write to your current one for professional clearance and your records, so you never have to make the call yourself. It usually takes two to three weeks, and it can happen at any point in the year.
Yes. The new accountant picks up from the next deadline. The only time to take care is shortly before a filing deadline, when both firms should agree in writing who is filing what.
A letter from your new accountant to your existing one, asking whether there is any professional reason not to act and requesting the information needed to take over. It is standard practice across the accountancy bodies.
Contact
Bring us last year's accounts and we'll tell you what we'd change.
An initial conversation takes half an hour and costs nothing. If we are not the right practice for you, we will say so.