If you’re not happy with your current accountant- slow responses, missed deadlines, fees that keep creeping up- or you’ve simply outgrown them, switching is much simpler than most people expect. You don’t need an awkward confrontation, and you don’t need to manage the handover yourself. This guide walks you through exactly how to switch accountants, from making the decision to completing the handover.
Step 1: Decide it’s genuinely time to switch
Common signs it’s time to move on: Slow or inconsistent communication, especially around deadlines Missed filing deadlines that have led to penalties Fees rising without a clear explanation of what’s changed You’ve outgrown their expertise (e.g. you’ve incorporated, taken on staff, or started dealing with VAT and they’re not keeping pace) You simply don’t feel confident in the advice you’re getting
Step 2: How to switch accountants — choose your new one before resigning your old one
This is the order that avoids gaps in your accounting cover. Find and confirm your new accountant first, so there’s no window where nobody is looking after your filings. Most accountants offer a free initial consultation, so you can compare a few before committing.
Step 3: Let your current accountant know
Check your engagement letter (the agreement you signed when you first took them on) for any notice period. Most firms don’t require much, often just a straightforward email or letter confirming you’re moving on. You don’t need to give a detailed explanation if you’d rather not; “I’ve decided to move my accounting to another firm” is perfectly sufficient.
Step 4: Your new accountant requests professional clearance
Once you’ve confirmed you’re switching, your new accountant does the legwork.They’ll write to your outgoing accountant requesting “professional clearance”, which is standard practice among UK accountants (most are members of bodies like ICAEW or ACCA, which have ethical guidelines covering this process). Your outgoing accountant is expected to respond and confirm there’s no professional reason they can’t take you on, this isn’t a legal requirement, but it’s how the process works in practice across the profession.
Step 5: Authorise your new accountant with HMRC
Your new accountant will ask you to authorise them to act on your behalf with HMRC, usually via a form 64-8 or through HMRC’s online agent authorisation process. This lets them access your tax records, file returns, and deal with HMRC directly on your behalf. It typically takes a couple of weeks for HMRC to process, so it’s worth doing this early rather than right before a deadline.
Step 6: Handover of your records
Your new accountant will request the relevant records and information from your outgoing accountant, including: Your Unique Taxpayer Reference (UTR) and company details if applicable Previous years’ accounts and tax returns Access to any accounting software you use (Xero, QuickBooks, FreeAgent, etc.) HMRC agent codes and login details where relevant Any outstanding queries or open matters with HMRC A good new accountant manages this whole handover for you, which is really the heart of how to switch accountants smoothly; you shouldn’t need to be the one chasing paperwork between two firms. If there’s a gap where you need a return filed while the handover is still in progress, for example, a deadline lands mid-switch, a one-off tax filing can bridge that without waiting for the full handover to complete first.
Step 7: Timing, when’s the best time to switch?
You can switch at any point in the year, but a few timing tips make the transition smoother: Avoid switching right before a filing deadline if you can help it. For example, don’t start the process in late January right before the Self Assessment deadline, since your new accountant will need time to get up to speed on your records. Just after your year-end or after a filing has been submitted tends to be the cleanest window, since there’s a natural break point in your records. If you’remidwayy through a tax year, that’s fine too; it just means your new accountant will need the prior records from your old accountant to complete that year’s return.
What to expect once you’ve switched
Now that you know how to switch accountants, here’s what happens once the handover is complete: your new accountant should confirm what they now hold, flag anything missing from the old firm, and set out what’s coming up next, whether that’s an upcoming Self Assessment deadline, a VAT return, or annual accounts. A good switch should feel like very little changed from your side, other than better service going forward.
Frequently Asked Questions
Will there be a gap in my accounting cover while I switch?
Not if you follow the right order: line up your new accountant before you tell your old one you’re leaving. Handovers typically take a couple of weeks, and a good new accountant will flag anything urgent (like an approaching deadline) early so nothing falls through the cracks.
Do I need permission from my old accountant to leave?
No. Understanding how to switch accountants also means knowing you’re free to leave at any time, subject to any notice period in your engagement letter. “Professional clearance” is your new accountant confirming there’s no professional reason not to take you on; it’s not your old accountant’s approval to grant.
Will switching accountants cost me anything extra?
Sometimes an outgoing accountant charges for time spent preparing information for the handover, depending on your engagement letter, worth asking upfront. Most of the switching process itself (clearance requests, HMRC authorisation) doesn’t carry a separate fee from the new accountant.
How long does the whole process take?
If you’re wondering how to switch accountants without disruption, the answer is typically a few weeks from first contact to full handover, largely driven by how quickly HMRC processes the agent authorisation and how promptly your outgoing accountant responds to the clearance request.ses the agent authorisation and how promptly your outgoing accountant responds to the clearance request.
