How to switch accountants in the UK, and what happens to your records
Switching accountants in the UK means telling your old firm, authorising the new one with HMRC and collecting your records. AFE Accountants, an ACCA member firm led by Adam Feyzi FCCA, takes on UK small companies and sole traders from other accountants.
Can you switch accountants part way through the year?
Yes. There is no rule that ties you to an accountant until your year end. Many owners switch after a missed deadline, a fee rise or a change in what the business needs.
Timing still matters. Switching just before a filing deadline leaves the new firm little room to check the figures. If a deadline is close, it is often simpler to let the old firm finish that piece of work first.
Read your current engagement letter before you give notice. It should say how much notice is needed and whether any work in progress will be billed.
What is professional clearance?
Professional clearance is the informal name for the contact between your new accountant and your old one. Members of professional bodies such as ACCA follow a code of ethics when they take over a client.
In practice, the new firm asks your permission to write to the old firm. It asks whether there is any professional reason it should not accept the work. It also asks for the information it needs to carry on from where the old firm stopped.
Clearance is not a veto. An old firm cannot stop you from moving, even if a fee is in dispute. It is a check that protects you, the new firm and the old one.
What does the old accountant have to hand over?
ACCA publishes a factsheet on transfer information for its members, listed in the sources below. It says reasonable transfer information should be provided promptly to the new accountant, free of charge, when asked.
Under that guidance, the minimum is a copy of the last accounts the client formally approved and a detailed trial balance that agrees with them. Records that legally belong to you are a separate matter, and you are entitled to those too.
Other bodies have their own rules, so the detail can differ if your old accountant belongs to ICAEW, ICAS, AAT or none at all. Working papers an accountant created for its own use may stay with that firm.
What should you gather before you switch?
Much of what a new firm needs is already yours. Collecting it yourself speeds up the handover and means you are not waiting on anyone. The table shows what to gather, who usually holds it and why it matters.
| What to gather | Who usually holds it | Why it matters |
|---|---|---|
| Last filed accounts and tax returns | You, Companies House and the old accountant | The new firm starts from the last agreed figures |
| Trial balance behind the last accounts | The old accountant | It lets the new firm carry balances forward accurately |
| Bookkeeping software login or data export | You, or the old accountant if they set it up | Moving the subscription keeps your history in one place |
| Bank statements since the last year end | You and your bank | They show every transaction still to be recorded |
| VAT returns and VAT account details | You, the old accountant and HMRC | Open periods need to be picked up without a gap |
| Payroll records and payslip history | You or your payroll provider | Pay and deductions continue from the same point |
| Director’s loan account balance | The old accountant | It affects what a director owes or is owed |
| Companies House authentication code | The company, usually a director | It is needed to file accounts and other documents |
| Open letters or enquiries from HMRC | You or the old accountant | Deadlines in those letters still apply after you switch |
| Statutory registers and share records | The company, sometimes the old accountant | A company must keep these up to date |
Who holds each item varies from firm to firm. Ask your old accountant to confirm what they keep on your behalf.
How does HMRC know you have a new accountant?
You authorise the new firm as your agent. HMRC explains in its guidance on authorising an agent that the method depends on the tax, such as Self Assessment, VAT, Corporation Tax or PAYE.
For some services the new firm sends you a link to approve online. For others HMRC posts an authorisation code to you, which you pass to the firm. GOV.UK also covers this under appointing someone to deal with HMRC.
Never share your own sign-in details with any accountant. You stay responsible for your tax, whoever files it, so check each return before it goes in.
What happens to your bookkeeping software?
Cloud bookkeeping software is usually the easiest part to move. If the subscription is in your name, you add the new firm as a user and remove the old one.
If the old firm holds the subscription on its own account, ask them to transfer it to you or to your new firm. Ask for a full export as well, so nothing is lost if the transfer stalls.
Switching software at the same time as switching accountant is possible, but it adds work. Many owners keep the same software for the first year and review it afterwards.
What are the common hold-ups?
None of these stops a switch. Settling any agreed fees and taking your own copies early removes most of them.
- Unpaid fees with the old firm, which can slow the return of some papers.
- A deadline that falls in the middle of the handover.
- Software held in the old firm’s name with no export taken.
- A missing Companies House authentication code.
- Agent authorisation still pending with HMRC.
How does switching to AFE work?
AFE Accountants is an ACCA member firm. It is led by Adam Feyzi FCCA, a Fellow of the ACCA, and works with business owners across the UK.
The steps AFE follows when it takes on a new client are being confirmed [CONFIRM: AFE’s handover process]. Fees are agreed in advance as [FEES MODEL: confirm with Adam], and the first consultation is free.
Read more on the business owners page, or see how AFE handles accounts and bookkeeping and tax and VAT. You can book a free consultation to talk through your situation.
Sources
Frequently asked questions
Do I need my old accountant’s permission to switch?
No. You can appoint a new accountant whenever you choose. The new firm will usually ask your permission to contact the old one for handover information, which is a professional courtesy and a check. The old firm cannot block the move, although an unpaid fee can slow the return of some papers. Read your engagement letter for any notice period.
Will switching accountants cause problems with HMRC?
Not usually. HMRC deals with whichever agent you have authorised for each tax. The main risk is a gap, where neither firm is watching a deadline during the handover. Agree with both firms who will file the next return, and keep checking any letters HMRC sends you directly. You stay responsible for your own tax throughout.
Can my old accountant keep my records if I owe them money?
Sometimes, in part. Professional bodies separate records that belong to you from working papers the accountant created for its own use. ACCA guidance says reasonable transfer information should be passed to the new firm free of charge when requested. The position on other papers depends on the facts, so settle any agreed fees and take copies early.
Is it better to switch accountants after my year end?
Often, yes. Switching soon after a year end gives the new firm a clean starting point. It also leaves time before the next filing deadline. You can still switch at any other point. If a deadline is very close, the old firm could finish that return and hand over once it is filed.
Awaiting review by Adam Feyzi FCCA Updated [REVIEW PENDING: Adam Feyzi to approve this page]
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