Many business owners stay with an underperforming accountant long past the point where they should have moved on. The reason is almost always the same: switching feels complicated. Will it disrupt ongoing work? What happens to your records? Will HMRC be notified correctly? In reality, the process is straightforward when you follow the right steps. Your new accountant will handle most of the transition for you, and with a little planning you can change accountants without any gap in your accounts, tax filings, or HMRC compliance.
Reasons people switch accountants
There is no single reason to change accountants, and you do not need to have had a falling-out to justify moving on. The most common reasons include:
- Poor communication. Calls and emails go unanswered for days. You have no idea what stage your accounts are at, or whether your tax return has been filed.
- Missed deadlines or errors. Late filing penalties from HMRC are the clearest signal that your accountant is not on top of your work.
- Unexplained fee increases. Prices rising without notice or explanation, or invoices arriving for work you did not authorise.
- Your business has outgrown them. An accountant who was perfectly suited to you as a sole trader may not have the expertise to handle a growing limited company, VAT-registered business, or employer.
- Relocation. If you prefer to meet your accountant in person, moving to a different area is a practical reason to find someone local.
- Wanting more proactive advice. Many clients switch because they want an accountant who flags tax-saving opportunities rather than simply filing what they are given.
Any of the above is a legitimate reason to switch. The best time to do so is before frustration turns into a costly mistake.
When is the best time to switch?
The cleanest time to switch is immediately after your year-end accounts have been prepared and your most recent tax return has been filed. At that point, the outgoing accountant's obligations are complete, handover records are tidy, and the incoming accountant starts with a clean break.
That said, you can switch at any point in the year. Your financial records belong to you, not your accountant, so there is no legal barrier to changing at any time. The key consideration is timing relative to upcoming deadlines:
- Self Assessment: the online filing deadline is 31 January. Avoid switching in November or December unless you are confident the new accountant can complete your return in time.
- Corporation Tax (CT600): due 9 months and 1 day after your company's year-end. Allow at least 2 to 3 months before this date for a smooth handover.
- VAT returns: these are quarterly, so there is usually a natural changeover point every few months.
As a general rule, avoid switching within 3 months of a major filing deadline unless the situation with your current accountant is urgent.
Step 1: find your new accountant first
The most important rule of switching accountants is to line up your replacement before giving notice to your current one. This avoids any gap in accountancy cover and gives you a clear transition plan from day one.
In your initial meeting with a prospective accountant, confirm that they can take you on, when they are available to start, and whether they have handled your type of business before. Agree on fees before you commit.
Once you have a new accountant confirmed, the rest of the process follows a straightforward sequence.
Search for an accountant near you
Step 2: check your contract or engagement letter
Before giving notice, review your engagement letter or any contract you signed with your current accountant. Look for:
- Notice period. Most accountancy engagement letters require 1 to 3 months' written notice. Some have no notice period at all.
- Outstanding work. Your accountant may be mid-way through preparing your accounts or a tax return. It is usually in your interest to let them complete work in progress before you leave, rather than handover an incomplete job to the new accountant.
- Outstanding fees. Settle any unpaid invoices before you give notice. Your old accountant is not obliged to cooperate with a handover if you owe them money, and an unpaid dispute will slow everything down.
If you do not have a copy of your engagement letter, ask your accountant to send you one before proceeding.
Step 3: write to your current accountant
Give notice in writing, either by email or letter. Keep the message brief and professional. There is no need to explain your reasons in detail. Your notice should include:
- The date of the notice
- A clear statement that you are terminating the engagement
- The date on which you would like the engagement to end (in line with any notice period)
- A request for handover of all records relating to your business
You might write something along the following lines: "I am writing to give [notice period] notice that I wish to terminate my engagement with [firm name] with effect from [date]. Please could you confirm receipt and let me know what you require to facilitate a handover of my records to my incoming accountant."
Accountants who are members of ICAEW, ACCA, or CIOT are bound by professional ethics rules that require them to cooperate with the handover process. They cannot refuse to release your records, hold them hostage over a fee dispute, or obstruct the transition without risking a complaint to their professional body.
Step 4: the professional clearance process
Once you have given notice, your new accountant will write to your old accountant to request professional clearance. This is a standard step in the accountancy profession and is required by the ethical codes of ICAEW, ACCA, and other bodies.
The clearance letter asks your outgoing accountant to confirm:
- That there are no professional reasons the new accountant should not act for you
- Whether there are any matters the new accountant should be aware of
Your old accountant is required to respond to the clearance request promptly. Once clearance is confirmed, they should release all relevant records, including:
- Prior year annual accounts and management accounts
- Copies of all tax returns filed on your behalf
- Working papers and supporting schedules
- Any correspondence with HMRC
- Access credentials or exports from cloud accounting software
In practice, most of this is handed over digitally. A well-organised outgoing accountant will package everything up within a week or two of receiving the clearance request.
Step 5: update HMRC authorisation
If your accountant is registered as your agent with HMRC, you will need to update this. Your new accountant will handle the bulk of this process, but it is worth understanding what is involved.
HMRC agent authorisation is managed separately for each tax regime:
- Self Assessment — the new accountant submits a 64-8 form (or an online authorisation request through the Government Gateway)
- Corporation Tax — a separate agent authorisation is required for your company's UTR
- PAYE — if you have employees, the new accountant requests access to your PAYE scheme
- VAT — VAT agent authorisation is handled through HMRC's online VAT portal
Once the new authorisations are confirmed, revoke the old accountant's agent access. You can do this through your HMRC online account, or ask your new accountant to confirm it has been done. Do not leave the old accountant with ongoing access to your HMRC account after the relationship has ended.
Step 6: update your accounting software
If you use cloud accounting software such as Xero, QuickBooks, or FreeAgent, you will need to manage user access during the transition.
- Invite your new accountant's team as users on your account before the handover date
- Confirm that the new accountant has reviewed the data and is comfortable with what they are seeing
- Remove the old accountant's user access once the transition is complete
- Export a backup of your data as a precaution before making any access changes
Do not remove the old accountant's access before the handover is finished. If they still have outstanding work to complete for you, they will need continued access to do so.
What if your old accountant is being difficult?
In the vast majority of cases, switching accountants is a routine professional matter handled without issue. Occasionally, however, an outgoing accountant may delay releasing records, refuse to cooperate with the clearance process, or attempt to withhold documents pending a fee dispute.
It is important to understand that your financial records belong to you, not your accountant. They cannot legally withhold documents that were prepared using your information and on your behalf.
If your old accountant is being uncooperative:
- Put all requests in writing and keep copies
- Ask your new accountant to follow up directly if the clearance response is delayed
- Lodge a formal complaint with the accountant's professional body: ICAEW (icaew.com), ACCA (accaglobal.com), or AAT (aat.org.uk) depending on their membership
- If they are not a member of any professional body, you may need to seek legal advice
Professional body complaints are taken seriously. In most cases, the threat of escalation is enough to resolve a reluctant handover.
Frequently asked questions
Can I switch accountants in the middle of a tax year?
Yes. There is no rule that says you must wait until your year-end to change accountants. You can switch at any point, though it is worth checking whether your outgoing accountant has work in progress that would be better completed before the handover. Switching mid-year is most straightforward when your records are well-organised and up to date in your accounting software.
Will switching accountants affect my HMRC account?
No, your HMRC account and tax records are unaffected by a change of accountant. What does change is the agent authorisation, which determines who can communicate with HMRC on your behalf. Your new accountant will register as your agent across the relevant tax regimes (Self Assessment, Corporation Tax, PAYE, VAT) and you should revoke the old accountant's access once this is confirmed. The underlying tax records and filing history remain unchanged throughout.
What if my old accountant owes me a refund?
If you have overpaid your accountant for work that was not completed, or they hold funds on your behalf (for example, a tax refund passed through their client account), you are entitled to a refund of those amounts. Raise this in writing when giving notice and set a clear deadline for resolution. If the accountant refuses to return funds, this is a matter for their professional body's complaints process and, in serious cases, the courts. Keep records of all payments made and any correspondence about outstanding refunds.