How to Change Accountants in the UK
Many business owners stay with the wrong accountant for far too long.
Common reasons include:
- Fear of disruption
- Worry about offending the current accountant
- Uncertainty about the process
- Concern about hidden costs
The reality is that changing accountants in the UK is usually straightforward — and often easier than people expect.
In this guide, we explain:
- When you should consider changing accountants
- Whether you can switch mid-year
- The step-by-step process
- What happens to your records
- How to avoid common mistakes
- What your new accountant will handle
If you’re unhappy with your current service, this explains exactly what happens next.
Can You Change Accountants at Any Time?
Yes.
You can change accountants at any point during the year — even mid-accounting period.
You are not locked in unless:
- You have signed a fixed-term contract
- There are outstanding unpaid fees
- Notice requirements apply under engagement terms
Most accountancy engagements operate on standard notice periods (often 30 days), but you should check your engagement letter.
Signs It Might Be Time to Change Accountant
Business owners typically change accountant because of:
- Slow response times
- Repeated late filings
- Lack of proactive tax advice
- Unexpected penalties
- Poor communication
- High fees without added value
- Business outgrowing current firm
Sometimes the issue is not competence — it is that your business has evolved and needs a different level of support.
Step 1: Choose Your New Accountant First
Before informing your current accountant, secure your new one.
A professional accountant will:
- Explain their onboarding process
- Provide a clear fee structure
- Outline what they will handle
- Confirm timelines
Once you formally appoint them, they will typically manage most of the transition.
Step 2: Sign an Engagement Letter
Your new accountant will issue:
- An engagement letter
- Terms of business
- Professional clearance request
The engagement letter sets out:
- Services provided
- Responsibilities
- Fee structure
- Limitation of liability
This formalises the relationship.
Step 3: Professional Clearance (The Formal Handover Process)
In the UK, accountants follow professional ethics rules.
Your new accountant will:
- Write to your existing accountant
- Request professional clearance
- Ask if there are any reasons they should not act
- Request relevant records
This is standard practice.
It is not confrontational.
Your current accountant is expected to respond professionally.
What Information Is Transferred?
Your new accountant may request:
- Last set of statutory accounts
- Corporation Tax returns
- Self Assessment returns
- Trial balance
- Capital allowance schedules
- Fixed asset register
- VAT history
- Payroll data
- Director’s loan account details
This ensures continuity.
Do You Have to Tell Your Old Accountant Yourself?
Not usually.
Your new accountant handles the formal communication.
However, it is good practice to:
- Send a short, professional email confirming you are moving
- Confirm notice period
- Ask for a final invoice
Keep it simple and factual.
What If You Owe Fees?
If you have unpaid fees:
- Your old accountant may retain records until payment is made
- This is known as a lien
To avoid delays, settle outstanding invoices promptly.
Most transitions are smooth when accounts are up to date.
Step 4: Authorisations with HMRC
Your new accountant will need to:
- Register as your agent with HMRC
- Gain access to Corporation Tax, VAT, PAYE, or Self Assessment records
This is done digitally through HMRC’s agent authorisation process.
You may need to:
- Approve online authorisations
- Provide security codes
Without this step, your new accountant cannot deal directly with HMRC.
What Happens to Your Accounting Software?
If you use cloud software (e.g. Xero, QuickBooks, Sage):
- Access can be transferred to your new accountant
- Or your new accountant can be added as an adviser
If your previous accountant controlled the subscription, you may wish to transfer ownership.
Always ensure you retain ultimate control of your financial data.
Will Changing Accountants Delay My Accounts or Tax Return?
If the transition is handled properly, no.
However, timing matters.
Changing accountant close to:
- A Companies House deadline
- A Corporation Tax payment deadline
- 31 January Self Assessment
can increase pressure.
If deadlines are imminent, ensure:
- All records are ready
- The new accountant confirms capacity
Is It Bad Practice to Change Accountants Frequently?
There is no legal restriction, but frequent changes may suggest:
- Disorganisation
- Fee disputes
- Unclear expectations
A good accountant relationship should feel stable, proactive, and communicative.
Changing once for the right reasons is entirely normal.
What If Your Accountant Has Made Mistakes?
If penalties or errors have occurred:
- Discuss concerns first
- Request clarification
- Ask whether professional indemnity insurance applies
If confidence has broken down, changing firm may be appropriate.
Your new accountant can also review prior filings.
Can You Change Accountant If You Are Under HMRC Investigation?
Yes.
You are free to appoint a new accountant at any time.
In fact, some clients move specifically because they want:
- Stronger representation
- Specialist tax investigation experience
Professional clearance still applies.
How Long Does It Take to Change Accountants?
In most cases:
- 1 to 3 weeks
Delays typically occur due to:
- Unpaid fees
- Missing records
- Unresponsive outgoing accountant
- Complex group structures
With cooperation, the process is efficient.
What Should You Ask Before Appointing a New Accountant?
Before signing, ask:
- Who will handle my work day-to-day?
- What is included in the fee?
- Are there extra charges for advice?
- How often will we review tax planning?
- What software do you recommend?
- How quickly do you respond to emails?
Clarity at the outset prevents future dissatisfaction.
Common Myths About Changing Accountants
Myth 1: “My Current Accountant Won’t Cooperate”
Most firms comply promptly with clearance rules.
Myth 2: “It’s Too Complicated Mid-Year”
It is administratively manageable at any time.
Myth 3: “I’ll Lose My Records”
Your company records belong to you.
When Is the Best Time to Change?
Ideal moments include:
- Shortly after year-end
- Immediately after filing accounts
- Before a new tax year
- When your business structure changes
However, if service quality is poor, delaying rarely helps.
Step-by-Step Summary: How to Change Accountants in the UK
-
Choose and appoint your new accountant
-
Sign engagement letter
-
New accountant requests professional clearance
-
Outstanding fees are settled
-
Records are transferred
-
HMRC agent authorisations are updated
-
Cloud software access is updated
-
New accountant confirms takeover
That is the full process.
In most cases, you do not need to manage it personally.
Final Answer: How Do You Change Accountants in the UK?
Changing accountants in the UK is straightforward.
You can switch at any time.
Your new accountant will:
- Handle professional clearance
- Obtain records
- Set up HMRC access
- Manage the transition
The key is choosing the right firm first and ensuring fees are settled with the outgoing adviser.
If you feel your current accountant is not proactive, responsive, or aligned with your business growth, reviewing your options is entirely reasonable.
A structured transition ensures continuity and compliance without disruption. Join Merranti Accounting today
