How to Change Accountants: A Step-by-Step Guide for UK Businesses

Changing accountants can feel like a major decision, especially when your company has tax filings, bookkeeping records and software access tied to your current firm. In practice, the process is usually manageable when you plan the handover carefully.

This guide explains how to change accountants in the UK, how to find a good accountant before you appoint one, and how to protect your business from missed deadlines during the move.

Limited-company accounting and tax support starts at £85pm+. If you need help with a personal Self Assessment tax return, the price is £300 inc VAT per return.

When is it time to change accountants?

You do not need to wait until something has gone seriously wrong. Sometimes the relationship no longer fits the way your business operates.

Common warning signs include:

• You wait too long for answers to important questions.
• Your accountant only contacts you when a deadline is close.
• You receive figures without a clear explanation of what they mean.
• Your business has grown, but the service has stayed the same.
• You are unsure which tasks are included in your fee.
• VAT, payroll, bookkeeping or company accounts are becoming difficult to manage.
• You regularly have to chase your accountant for updates.
• Errors, corrections or unclear adjustments are becoming more common.
• Your accountant does not understand your industry or growth plans.
• You are looking for an “accountant near me” because your current firm no longer feels accessible.

Compliance work is essential, but a growing limited company may also need practical help with cash flow, tax planning, management information and business decisions. If your existing accountant is no longer the right fit, changing firms may make day-to-day administration easier.

How to find a good accountant

Before you start the handover, define what you want your new accountant to do. This prevents you from choosing based only on a monthly price or a convenient location.

Write down:

• The services you currently use.
• The services you may need soon.
• What is not working with your current firm.
• How quickly you expect replies.
• Whether you prefer online meetings, in-person support or both.
• Which accounting, payroll or bookkeeping software you use.
• Any upcoming tax or filing deadlines.

When comparing firms, look for experience with limited companies and growing SMEs. Ask whether they regularly deal with Corporation Tax, VAT, payroll, annual accounts, bookkeeping and director responsibilities.

Accountant Search is a curated directory and digital matchmaking/referral platform. We help businesses describe what they need before introducing them to suitable accounting professionals.

“We check the credentials and regulatory standing of our accountants before we introduce them. Every accountant we work with is vetted for their qualifications, membership of a registered body for public practice, and AML registration, and your details are shared only with a vetted few who fit your brief. Always confirm a firm's registration, supervision and cover directly before you appoint them.”

You can also review our guide to finding a limited company accountant and see how accountant matching works.

What to check before appointing a new accountant

Before signing an engagement letter, ask the prospective firm to explain exactly what it will do and how the relationship will work.

Check:

Services and responsibilities

Ask whether the proposed service includes:

• Annual accounts.
• Corporation Tax returns.
• Bookkeeping.
• VAT returns.
• Payroll and pension administration.
• Management accounts.
• Tax planning.
• Director Self Assessment support.
• Assistance with HMRC queries.

Make sure you understand what you must provide and which tasks remain your responsibility.

Communication

Ask who your main contact will be, how quickly the firm normally responds and what happens when that person is unavailable. You should also clarify whether meetings and advice are included or treated as separate work.

Software and access

Find out whether the firm can work with your existing bookkeeping system. If you want to move to cloud accounting, ask how the transfer will be handled and who will control the administrator access.

Engagement terms

Read the engagement letter carefully. Look for:

• Notice periods.
• The start date.
• Services included.
• Any work excluded.
• How additional work is approved.
• How records are exchanged.
• What happens if either party ends the relationship.

Do not appoint a new firm until you are comfortable with these terms.

Step 1: Review your current engagement letter

Your existing engagement letter should explain how to end the relationship. Look for a notice period, minimum term, outstanding work and unpaid invoices.

You can usually change accountants at any time, but your contract may require written notice. Settling legitimate outstanding invoices can help avoid unnecessary friction, although fee disputes should not be used as an excuse to ignore urgent filing responsibilities.

Before giving notice, make a list of all important deadlines, including:

• VAT returns.
• PAYE and payroll submissions.
• Annual accounts.
• Corporation Tax returns and payments.
• Confirmation statement filings.
• Any personal Self Assessment deadline that applies to a director.

The best time to switch is often just after year-end accounts have been completed or at the start of a new accounting period. However, there is no need to delay if your current accountant is creating a serious compliance risk.

Step 2: Appoint the new accountant and give notice

Once you have selected a new firm, sign its engagement letter and complete the required identity and anti-money-laundering checks.

Then notify your existing accountant in writing. Your message does not need to be long. It should confirm:

• That you are ending the appointment.
• The date the change is intended to take effect.
• The name and contact details of the new accountant, if available.
• That you authorise the professional handover.

Your new accountant will normally contact the outgoing firm directly. You should avoid cancelling software access or HMRC permissions before the new firm is ready to take over.

What is a professional clearance letter?

A professional clearance letter is a formal message sent by your new accountant to the outgoing accountant.

It normally:

• Confirms that the client has appointed a new firm.
• Asks whether there is any professional reason why the new firm should not act.
• Requests relevant accounting and tax records.
• Establishes the intended handover arrangements.

The letter is a routine professional step. It does not mean that you have done anything wrong, and it does not usually require a complicated explanation.

The outgoing accountant may ask the new firm to confirm that you have authorised the change. The two firms can then communicate about the handover while keeping you informed.

Who contacts HMRC after you change accountants?

Changing accountants does not automatically give the new firm access to your HMRC records.

Your new accountant will normally request agent authorisation for the relevant services. You may need to approve the request through your HMRC online account or complete an authorisation process such as form 64-8, depending on the service involved.

You should confirm that the new firm has access to everything it needs, including any relevant:

• Corporation Tax service.
• VAT service.
• PAYE service.
• Self Assessment service.
• Construction Industry Scheme service.

Check whether the former accountant still has access and ask for old permissions to be removed where appropriate. Keep a record of the date the new authorisations were approved.

The important point is that HMRC will not know about the change simply because you have appointed a different accountant. The authorisation must be updated.

What records and access should be handed over?

Your new accountant should tell you what it needs. The handover may include:

• Previous company accounts.
• Corporation Tax computations and returns.
• Trial balances and general ledgers.
• Bookkeeping data.
• VAT workings and submission records.
• Payroll records and RTI information.
• Payroll year-end reports.
• Details of outstanding HMRC correspondence.
• Details of payment arrangements or ongoing enquiries.
• Companies House filing information.
• Accounting software access.
• Copies of documents you supplied to the outgoing firm.

You should also keep your own copies of important accounts, tax returns, bank statements and business records. Do not rely entirely on one accountant or one software account to hold every document your business may need.

How long does changing accountants take?

A straightforward switch can often be completed in a few weeks. The exact timing depends on the size and complexity of your business, how quickly both firms respond and whether there are urgent filings in progress.

It may take longer if:

• Your bookkeeping is incomplete.
• Your accounting software is difficult to transfer.
• Several tax returns are being prepared.
• There are unpaid invoices or a fee dispute.
• HMRC has an open enquiry.
• The outgoing accountant is slow to respond.
• The business has multiple VAT, payroll or company obligations.

Start the process before your next major filing deadline wherever possible. Give the new firm enough time to review the prior work, identify missing records and agree who will complete any return already under way.

What if the outgoing accountant is slow?

If the former accountant does not respond promptly, take practical steps rather than waiting indefinitely.

1. Ask your new accountant to send a clear professional clearance and records request.
2. Keep copies of all emails, letters and follow-up messages.
3. Confirm the specific records and software access still outstanding.
4. Ask whether the outgoing firm is holding any urgent filing information.
5. Obtain information directly from HMRC or Companies House where possible.
6. Check the outgoing accountant’s professional supervision arrangements if the delay continues.
7. Ask your new accountant how it can proceed using information already available.

The outgoing firm may have legitimate questions about unpaid fees, incomplete work or professional matters. However, a disagreement should not be allowed to leave your company unaware of an approaching deadline. If the delay is causing a serious risk, consider taking professional advice about the appropriate complaint or legal route.

Questions to ask your new accountant

Before the switch is complete, ask:

• Who will be my main contact?
• What is included in the monthly service?
• Which deadlines will you monitor?
• Who will file any return due during the handover?
• How will you obtain records from my previous accountant?
• Which HMRC services will you be authorised to access?
• How will I share documents securely?
• Which software do you recommend?
• How often will we review my company’s finances?
• Can you support my business as it grows?
• What should I do if I have an urgent tax question?
• How much notice is needed if I later decide to leave?

Clear answers at the beginning make the new relationship easier to manage.

Ready to find a better-fit accountant?

Changing accountants is usually a planned transfer, not a complete restart. Review your current agreement, choose a firm that understands your company, protect upcoming deadlines and make sure HMRC and software access are updated.

To find a suitable match, send your business details through the Accountant Search match brief. Limited-company accounting and tax support starts at £85pm+.

If you need help with a personal tax return instead, use the Self Assessment registration form. A Self Assessment tax return is £300 inc VAT per return.