How to switch accountants (it's easier than you think)
By Oakridge Accounting · Updated 4 min read
The short answer
- You can switch accountants at any time of year. Your new accountant does most of the work.
- Your new accountant contacts your old one for professional clearance and the information they need. You don't have to have an awkward conversation.
- You'll need to authorise your new accountant with HMRC and give them access to your accounting software.
- The best time to switch is straight after a filing, not a week before a deadline, but it's possible either way.
What happens when you switch
- You choose your new accountant and agree the scope and fee.
- Your new accountant carries out identity checks, which every UK accountant is required to do before taking on a client.
- They write to your previous accountant asking for professional clearance (confirmation there's no professional reason they shouldn't act for you) and the information they need to carry on, such as your last accounts and tax returns.
- You authorise them as your agent with HMRC, so they can deal with your tax on your behalf.
- You give them access to your accounting software, or they move you onto it if you're on spreadsheets.
- They pick up from where your previous accountant left off.
What you need to do
- Check your agreement with your current accountant for any notice period, and settle anything you owe them.
- Let them know you're moving. A short email is enough; your new accountant will handle the rest.
- Approve the HMRC agent authorisation when you're asked to.
- For a limited company, share your Companies House authentication code so your new accountant can file for you.
- Invite your new accountant into Xero or QuickBooks.
When to switch
Straight after your previous accountant has filed something is ideal, because there's a clean handover point. Switching close to a deadline is still possible, but tell your new accountant straight away so they can plan around it.
If your books are behind, a new accountant will usually need to bring them up to date first. Ask how that's charged before you agree.
How it works with us
We handle the professional clearance and data transfer for you, including the HMRC agent authorisation, and aim to have you fully onboarded within two weeks. If you join partway through the year, we'll bring your accounts up to date over a choice of one to three monthly payments, collected alongside your regular monthly fee.
Questions people ask
Do I have to tell my old accountant why I'm leaving?
No. You just need to let them know you're moving. Your new accountant will contact them for professional clearance and the handover information.
Can I switch accountants in the middle of the tax year?
Yes. Your new accountant picks up from your last filed accounts and returns and brings everything since then up to date.
How long does it take to switch accountants?
Usually a couple of weeks, depending on how quickly your previous accountant replies. We aim to have you fully onboarded within two weeks.
Will my old accountant hand over my records?
Your previous accountant should pass on the information your new accountant needs to continue. Your own records, and anything you've paid for, belong to you.
This guide is general information, not advice for your situation. Tax rules change and the right answer depends on your circumstances, so speak to us (or another qualified adviser) before acting on it.