How to switch accountants
Switching accountants is simple: you sign with the new firm, they contact your old accountant for professional clearance and handover information, and they get authorised with HMRC to act for you. You don't need an awkward conversation, and you can switch at any time of year.
What happens, step by step
- Pick your new accountant and agree a fixed fee and engagement letter.
- They send a professional clearance letter to your old firm, asking if there's any reason they shouldn't act and for the handover information.
- They get authorised with HMRC as your agent, usually online.
- They take over software access, such as your Xero subscription, and companies' Companies House filing.
- You tell your old firm you're moving on. Your new accountant can do this for you.
When's the best time to switch?
Any time works, but just after a year end or a filed tax return is cleanest. Avoid leaving it until days before a deadline. If you're unhappy now, don't wait a year: your new firm can pick up mid-year.
Do I have to pay my old accountant first?
Outstanding fees should be settled, but your old accountant can't hold your records hostage. Professional bodies expect them to pass on information your new firm needs.
Questions to ask your new firm
- What's included in the fee, and what costs extra?
- Who will I actually deal with?
- How often will we talk during the year?
- Will you train me on the software?
Frequently asked questions
Can I switch accountants mid-year?
Yes. Your new firm can take over at any point, though just after a year end is cleanest.
Do I need to tell my old accountant?
Your new accountant usually handles it through a professional clearance letter, so you don't need an awkward call.
Will switching cost me more?
Not necessarily. Many people pay less and get more by moving to a fixed monthly fee.
How long does the handover take?
Usually two to four weeks.
This guide is general information for UK taxpayers and was correct when last reviewed. Tax rules change, so check your own position with a qualified adviser.
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