Accountant switching guide
Switching Accountants: A Complete UK Guide
Changing accountants does not have to be difficult. Whether you have outgrown your current firm, want better communication, need specialist expertise, are paying for services you do not use, or simply want to compare what is available, a well-managed switch can be straightforward.
The key is to treat the change as a managed handover rather than simply cancelling one service and signing up with another. You need to understand your current engagement, choose the replacement accountant carefully, protect important deadlines and make sure the new adviser receives the records and authority they need.
Why businesses change accountants
ADVERTISE HEREPromote your business to Accounting Hire visitors.Ask about advertising opportunities →There are many legitimate reasons for changing accountant. The issue is usually not whether a change is possible, but whether the new firm is a better fit for the work you actually need.
| Reason for switching | What to investigate |
|---|---|
| Fees have increased | Compare the complete annual cost and exactly what is included, not just the headline monthly price. |
| Slow communication | Ask how the new firm handles questions, who your main contact is and expected response times. |
| Business has grown | Check whether the firm can handle VAT, payroll, management accounts, forecasting, Corporation Tax and more complex structures. |
| You need specialist expertise | Look for relevant experience in your sector or situation, such as contractors, CIS, property, e-commerce or international activity. |
| You want more proactive advice | Ask whether planning, cash-flow reviews, tax discussions or management information are included or charged separately. |
| Your software has changed | Check whether the proposed accountant supports your software and can manage the transition cleanly. |
| You are moving from sole trader to company | Choose a firm that can support both the current position and the new company structure. |
Can you legally change accountants?
Yes. Clients can choose to change accountants. The practical process depends on your engagement terms, the work outstanding and the tax services for which your existing accountant is authorised to act.
Your existing accountant may need to communicate with the new accountant as part of the professional enquiry process. This is often called professional clearance, although ICAEW describes the process as a professional enquiry and notes that an outgoing accountant does not have the authority to give or withhold permission for a new accountant to act. The incoming accountant is responsible for deciding whether to accept the engagement.
Step 1: Review your current accountant’s engagement letter
Before you appoint anybody else, find your current engagement letter and check the terms governing termination. Look for:
- Notice periods.
- Minimum contract terms.
- Outstanding fees.
- Work already included but not yet completed.
- Year-end accounts or tax returns currently in progress.
- Bookkeeping, payroll or VAT work scheduled for upcoming periods.
- Any separate software subscriptions or licences.
- Data export and handover arrangements.
- Any stated cancellation or termination charges.
Do not assume that cancelling a monthly direct debit automatically ends the professional relationship. Follow the termination process in the engagement terms and obtain written confirmation of the effective date.
Step 2: Decide what you actually need from the new accountant
Switching is an opportunity to reset the scope of your accounting service. Make a list of the work you currently receive and separate it into essential compliance, useful administration and advisory work.
| Service | Questions to ask |
|---|---|
| Year-end accounts | Are accounts prepared and filed for the business? Is the work included in the quoted fee? |
| Self Assessment | Are sole-trader, director or personal returns included? |
| Corporation Tax | Is the company tax return included and are tax calculations explained? |
| Bookkeeping | Who enters transactions, reconciles the bank and handles outstanding items? |
| VAT | Are VAT returns prepared, reviewed and submitted? Is Making Tax Digital support included? |
| Payroll | Are director and employee payroll, pensions and reporting covered? |
| Management information | Can you receive useful monthly or quarterly reports rather than only annual accounts? |
| Tax planning | Is planning included, or is advice charged separately? |
| Software | Which platform is supported and who pays for the licence? |
| Support | How do you contact the team and how quickly should you expect a response? |
Step 3: Compare accountants before you switch
Do not choose a new accountant simply because their advertised monthly fee is lower. Compare the scope of service, total annual cost, support, software, experience and contract terms.
Accounting Hire’s online accountant comparison brings providers together on one page so you can research services, published pricing, software support and external review information before contacting firms.
A £30 monthly package that excludes bookkeeping, VAT, payroll or director Self Assessment can cost more overall than a £60 package that includes the work you actually need.
Step 4: Get a written proposal
Ask each potential accountant to confirm the scope and price in writing. A useful proposal should make clear what is included, what is excluded and what could create additional fees.
Ask specifically about setup charges, year-end fees, VAT, payroll, bookkeeping, tax returns, advisory work, software, company secretarial work, urgent requests and work outside the normal monthly package.
Step 5: Appoint the new accountant
Once you have selected the new firm, complete its engagement and onboarding process. The firm will normally need identification and business information and will explain how it obtains authority to act for you.
For tax services, HMRC has several agent-authorisation routes. Depending on the service, authorisation can be completed online, through the digital handshake or using other HMRC processes. Do not give your HMRC sign-in credentials to an accountant; authorisation should use the proper HMRC process.
Step 6: Give authority for professional communication
Your new accountant may ask your permission to contact the outgoing accountant. This allows the professional enquiry and handover process to take place.
The outgoing accountant may need to explain matters relevant to the proposed engagement, including outstanding work or issues. Confidentiality still applies, so the appropriate client authority should be provided before information is shared.
Step 7: Protect tax and filing deadlines
This is one of the most important parts of changing accountant. Create a list of everything due in the next three to six months before you switch.
| Area | Check before the handover |
|---|---|
| Self Assessment | Confirm whether the return is complete, submitted or still outstanding. |
| Corporation Tax | Confirm the company’s accounting period and Corporation Tax filing/payment position. |
| VAT | Check the next VAT return period and whether bookkeeping is reconciled. |
| Payroll | Confirm the next payroll run, PAYE reporting and pension responsibilities. |
| Companies House | Check the next accounts and confirmation statement deadlines. |
| Making Tax Digital | If applicable, check software, quarterly update periods and agent authorisation. |
Step 8: Organise the handover
The smoother the handover, the less time your new accountant spends reconstructing history. Ask for or retain copies of information you are entitled to keep and provide the new firm with a structured document pack.
Useful handover information
- Recent accounts and tax returns.
- Corporation Tax computations where applicable.
- VAT returns and VAT workings.
- Payroll reports and pension information.
- Bank and loan information.
- Fixed asset records.
- Debtor and creditor information.
- Accounting software details and access arrangements.
- Company statutory information.
- Details of tax payment arrangements.
- Current bookkeeping status and unreconciled items.
- Important correspondence with HMRC or Companies House.
What happens to your accounting software?
Do not cancel accounting software immediately. First establish whether the new accountant uses the same platform and whether the subscription belongs to you, the outgoing accountant or a third-party provider.
If you are changing platforms, agree the migration date, opening balances, historical data, bank-feed arrangements and document storage. Read the Accounting Software Guide before making a software decision.
What if you owe your old accountant money?
Outstanding fees should be identified and dealt with as part of the handover. Do not ignore an invoice because you are changing firms. Ask the outgoing accountant to provide a clear statement of account and query any amount you believe is incorrect.
Rights concerning retention of documents can depend on the circumstances, the nature of the records and professional or contractual rules. If a dispute becomes significant, obtain independent professional or legal advice rather than assuming that all records can simply be withheld.
When should you switch?
There is no universal best month. In practice, avoid unnecessary disruption immediately before a major filing deadline if a short delay is possible. A switch can be easier when the current year’s accounts and returns have recently been completed, but waiting is not always sensible if the existing service is failing or deadlines are at risk.
Ask both firms how they would manage the timing. If your business has payroll, VAT, year-end accounts or a complicated tax issue approaching, the handover plan should explicitly allocate responsibility for each outstanding task.
Questions to ask a new accountant
- What exactly is included in the quoted fee?
- Are VAT and payroll included?
- Are director or sole-trader Self Assessment returns included?
- Who will actually work on my accounts?
- How quickly are questions normally answered?
- What accounting software do you support?
- Will you handle the professional enquiry with my previous accountant?
- What information do you need from me?
- What happens if I need additional advice?
- Are there setup, year-end or cancellation charges?
- How do you handle urgent deadlines?
- Can you support the business if it grows or changes structure?
Switching accountant checklist
Frequently asked questions
Can I change accountants during the tax year?
Yes. There is no general requirement to wait until the end of a tax year. The important issue is making the handover clear and ensuring that outstanding work and deadlines have an identified owner.
Does my old accountant have to agree to the change?
You can choose to change accountants. The outgoing and incoming firms may need to communicate as part of professional enquiry and the handover, but the outgoing accountant does not simply have a veto over your choice.
Will my new accountant contact my old accountant?
Often they will ask for your authority to do so and may make a professional enquiry. The exact process depends on the firms and the work involved.
Do I need to tell HMRC myself?
It depends on the tax services involved. Your new accountant will normally explain the relevant agent-authorisation process. HMRC provides separate routes for different tax services, so make sure the correct authorisations are in place.
Will switching accountants save money?
It can, but the more useful comparison is the total cost for the services you actually need. A cheaper headline package is not necessarily cheaper if important services are excluded.
Next step: compare accountants
If you are considering a change, start by comparing the available services and pricing structures. Accounting Hire’s online accountant comparison can help you build a shortlist, after which you should confirm current terms directly with each provider.
This guide is general information, not individual tax or legal advice. HMRC and professional-body procedures can change, so check the current requirements for your circumstances.