How to Change Accountants
How to Change Accountants
Thinking about switching accountants? You can change your accountant at almost any time of year. Discover how the handover works, what records to transfer and how to avoid disruption to your business.
Accountant
Accountants
To change accountants in the UK, choose a new accountant, agree when their work will begin, notify your existing accountant, authorise the professional handover and arrange the transfer of accounting records and HMRC access. You do not normally need to wait until the end of your financial year, but you should check contractual notice periods and upcoming filing deadlines.
Can You Change Accountants at Any Time?
Yes. Most individuals and businesses can appoint a new accountant whenever they choose, including part-way through a financial year. The important consideration is not simply when you change, but how responsibilities, records and deadlines are transferred.
There is generally no legal requirement to remain with an accountant until your year-end. However, your engagement agreement may contain a notice period, cancellation terms or outstanding fee arrangements. These should be reviewed before making the move.
For limited companies, changing accountants does not change the directors' legal responsibility for accounts, corporation tax returns and other statutory obligations. For sole traders, the taxpayer remains responsible for their tax affairs.
Choose your replacement accountant before ending the existing arrangement, agree who is handling each upcoming deadline and make sure essential records remain accessible throughout the transition.
How to Change Accountants in 5 Steps
These five stages provide a practical route from deciding to leave your current accountant to completing the handover.
Compare expertise, communication, scope of services and fees.
Confirm responsibilities, urgent filings and the engagement terms.
Give written notice in accordance with your agreement.
Authorise professional enquiries and transfer necessary records.
Set up new HMRC authorisations, software permissions and workflows.
What Happens at Each Stage?
Find the right replacement
Ask prospective accountants about their experience with businesses like yours, whether you will have a dedicated contact, how quickly they respond and what their fees include.
Compare the full service rather than just the headline price. Payroll, VAT, bookkeeping, tax planning and company accounts may be priced separately.
Confirm who does what
Before giving notice, establish whether your outgoing accountant will finish any work already in progress and when the new accountant will take responsibility.
Record upcoming Companies House, HMRC, VAT and payroll deadlines in writing. Avoid leaving a return between two firms.
Notify your existing accountant
Send a short, professional email confirming your decision, intended termination date and permission to cooperate with your replacement.
Check the engagement letter for notice requirements and ask for an itemised final statement if fees remain outstanding.
Complete professional enquiries
Your new accountant will usually contact the previous firm, with your authority, to ask whether there are professional reasons relevant to accepting the appointment and to request appropriate handover information.
Professional clearance is not a licence or permission that the former accountant grants to the client. Relevant confidentiality, ethical and record ownership rules still apply.
Transfer records and authorisations
Arrange access to accounting software, historical accounts, tax computations, reconciliations and any records needed for ongoing compliance.
HMRC agent authorisations generally need to be established for the new accountant. Do not assume they transfer automatically.
Check the transition is complete
Confirm that the new accountant has received the required information, can access relevant systems and has accepted responsibility for agreed work.
Keep copies of your termination notice, new engagement letter and handover correspondence.
Is Your Business Ready to Switch Accountants?
Answer three questions to identify the most important issue to address before changing accountants.
What Records Does Your New Accountant Need?
The precise records depend on the work being undertaken, but the following checklist covers the information commonly requested during a UK accounting handover.
Core accounting records
- Most recent signed accounts
- Prior-year trial balance and opening balances
- Current bookkeeping records and reconciliations
- Fixed asset and depreciation schedules
- Outstanding debtors and creditors
- Relevant tax computations and submitted returns
Additional business information
- Company registration and tax reference details
- VAT returns and relevant VAT scheme information
- PAYE records and payroll year-to-date figures
- Director's loan account balances
- Dividends and share capital records
- HMRC correspondence and outstanding enquiries
Not every document held by your former accountant necessarily belongs to you. Ownership, confidentiality, professional obligations and any lawful right of retention can affect what must be supplied. Your new accountant can help distinguish essential client records from the outgoing firm's own working papers.
How Long Does It Take to Change Accountants?
A straightforward handover may be completed within a few working days to a couple of weeks, but this is an indicative planning range rather than a guaranteed timescale. Complex businesses, missing records, outstanding fees, delayed responses and HMRC authorisation can make the process longer.
| Stage | What affects the timing? | What you can do |
|---|---|---|
| New engagement | Identity checks, scope and onboarding | Supply requested details promptly |
| Professional handover | Outgoing firm's response and record availability | Provide written authority |
| Accounting data transfer | Software, records and reconciliation quality | Preserve access and backups |
| HMRC authorisation | Tax service and applicable authorisation process | Respond to requests without delay |
| Completion | Outstanding tasks and agreed responsibilities | Confirm the handover checklist |
How Much Does It Cost to Change Accountants?
There is no universal government fee simply for appointing a different accountant. However, the total cost of changing depends on your existing contract and the work required.
Potential costs include outstanding invoices, contractual termination charges, fees for completing unfinished work, specialist record preparation and onboarding or catch-up bookkeeping charged by the replacement accountant.
Ask for written confirmation of the new firm's fees, including what happens if historical bookkeeping requires correction.
See our accountants fees for more information about our services and pricing.
Can You Change Accountants Before Your Year-End?
Yes. You can normally switch accountants during your accounting period. A financial year-end is often a convenient handover point, but it is not compulsory.
If your year-end, VAT deadline, payroll submission or tax return is approaching, establish who will complete the relevant work before terminating the old engagement.
For example, a limited company may have an accounting period ending in December while its statutory accounts and corporation tax deadlines fall later. Changing accountant in October does not automatically alter any of those deadlines.
What If Your Previous Accountant Won't Cooperate?
Start by checking whether there is an outstanding invoice, contractual disagreement or uncertainty about which records are being requested. Ask for an explanation in writing and identify the documents you need.
Where the outgoing accountant is a member of a professional body, relevant professional and ethical requirements may apply to the handover. If a dispute cannot be resolved, consider the firm's complaints procedure and the appropriate professional body.
Do not share passwords to resolve an access problem. Use proper software invitations, user permissions and HMRC agent authorisation processes.
How to Tell Your Accountant You're Leaving
You do not need to write a lengthy explanation. A polite, clear message is usually the best starting point. Adapt the following template to your engagement terms.
Why Do Businesses Decide to Change Accountants?
Slow communication
Difficulty getting answers, uncertainty about deadlines or not knowing who handles your accounts.
Unexpected fees
Unclear pricing, additional charges or services that no longer match your requirements.
Changing business needs
Growing turnover, new employees, property investments, international activities or more complex tax matters.
Better technology
A preference for digital records, cloud accounting and easier collaboration with an online accountant.
A change is not always necessary. If the main concern is a misunderstanding about scope, fees or communication, it may be worth discussing the issue with your current accountant before deciding.
Changing Accountants for Different Business Types
Limited companies
Pay particular attention to statutory accounts, corporation tax, director's loan accounts, dividends, Companies House filing responsibilities and the company tax position.
Limited company accounts →Sole traders
Check Self Assessment deadlines, income and expense records, payments on account and Making Tax Digital obligations where applicable.
Self-employed accounts →Partnerships and LLPs
Coordinate the partnership tax return, partners' individual returns, profit allocation and any LLP statutory reporting obligations.
Partnership accounts →Landlords
Transfer rental income and expense records, property purchase information, finance costs, losses brought forward and relevant capital gains information.
Property rental business guide →Frequently Asked Questions About Changing Accountants
Do I need permission from my old accountant to leave?
No. You can choose a new accountant, subject to your contractual obligations. Professional enquiries between accountants are part of an orderly handover, not a requirement for the outgoing accountant to approve your decision.
Can I change accountants if I owe fees?
Yes, although outstanding fees remain payable where properly due. They can also complicate the handover, particularly where a lawful right of retention applies. Discuss the situation with your new accountant.
Will HMRC be notified automatically?
No. Appointing a new accountant does not automatically transfer HMRC agent authorisations. The new accountant should explain the authorisation steps for each relevant tax service.
Can I change accountants during an HMRC enquiry?
Generally yes. However, ensure your new accountant understands the enquiry, its deadlines, existing correspondence and the work already undertaken before transferring responsibility.
Can my old accountant refuse to release my records?
It depends on ownership, contractual terms, professional obligations and any lawful right of retention. Your own records and the accountant's working papers are not necessarily treated in the same way.
Do I have to change my accounting software?
Not necessarily. Many accounting firms work with existing cloud software. Check subscription ownership, administrator permissions, historical data and the new accountant's preferred working arrangements.
Can I change accountants after my accounts have been prepared?
Yes. Confirm whether the existing accountant will complete the filing, whether the accounts have been approved and what information the replacement needs. Avoid duplicate or inconsistent submissions.
Is it difficult to move from a local accountant to an online accountant?
Not usually if your records are available digitally and both firms cooperate. The new accountant should explain how you will exchange documents, communicate and approve returns remotely.
Thinking About Switching to The Online Accountants?
We provide online accounting and tax services to limited companies, sole traders, partnerships and other UK taxpayers. Tell us about your current arrangements, what you need and any upcoming deadlines.
We'll help you understand the proposed service, fees and practical steps involved before you decide to appoint us.
Contact The Online Accountants →Related Accounting Guides and Services
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