How to Switch Accountants: Easier Than You Think
Here’s the thing almost nobody realises until they’ve actually done it: switching accountants is one of those tasks that sounds like a nightmare and turns out to be a couple of emails. The whole thing runs on a well-established, professionally regulated process that firms handle constantly u2014 and your part in it is genuinely small. This guide from Filing Accounts UK walks through exactly how it works, including the professional clearance letter that does most of the heavy lifting.
At Filing Accounts, we manage the entire switching process for new clients, so you’re not left chasing paperwork between two firms. If you’re currently weighing up whether it’s worth the effort, see our guide on what an accountant should actually cost to sense-check what you’re paying now.
Why People Delay Switching (And Why the Worry Is Overblown)
The most common reason businesses stay with an accountant they’re not happy with isn’t loyalty u2014 it’s the assumption that switching will be disruptive, awkward, or time-consuming. In practice, this almost never plays out. Firms change accountants for their clients every single day, and the whole process is governed by professional conduct rules that exist specifically to make the handover smooth, not painful. Most switches complete within 2 to 4 weeks from first notice to full handover.
The 7 Steps, and Who Actually Does the Work
Here’s the part that surprises people most: of the seven steps below, your new accountant runs four of them entirely on your behalf. Your own workload is genuinely a couple of emails, an ID check, and clicking “approve” once.
Step 1: Notify Your Current Accountant
A short, professional email is all this needs u2014 you don’t need to justify your decision or list grievances. Check your engagement letter first for any notice period, often around 30 days, and settle any outstanding fees. An unpaid invoice is genuinely the single most common cause of a delayed switch, so clearing it upfront keeps everything else moving smoothly.
Step 2: Choose Your New Accountant and Sign On
Your new firm will send you a Letter of Engagement setting out what they’ll do and what they need from you, and carry out an identity and Anti-Money Laundering (AML) check u2014 a standard regulatory requirement for any UK accountancy practice, not something specific to you.
Step 3: Professional Clearance
This is the step people ask about most, and it’s entirely handled between the two firms. Your new accountant sends a professional clearance letter to your outgoing accountant. It does two things at once:
- Confirms there’s no professional or ethical reason your new firm shouldn’t act for you u2014 an unresolved dispute, a professional concern, or a suspicion of fraud, for example
- Requests the practical handover pack: your tax references (UTR, VAT, PAYE), your Companies House authentication code, recent accounts and tax returns, VAT and payroll history, bookkeeping records, and any relevant HMRC correspondence
This is required under ICAEW and ACCA professional conduct rules for regulated firms, and your outgoing accountant is professionally obliged to respond and cooperate. It typically takes 7 to 14 days.
Step 4: Your Records Get Handed Over
This is worth knowing clearly: your statutory records u2014 filed tax returns, filed accounts, and similar documents u2014 are your property, not your accountant’s. They’re held on your behalf, and your outgoing accountant must hand them over. The one exception is their own internal working papers (their private notes and calculations), which they’re entitled to withhold until any outstanding fees are settled u2014 another reason to clear your bill promptly during Step 1.
Step 5: The Disengagement Letter
Your outgoing accountant issues a formal letter confirming the work they’ve completed and that their professional responsibility for your affairs has ended. This closes the loop cleanly on both sides.
Step 6: HMRC Agent Authorisation
Your new accountant submits an online agent authorisation request through HMRC’s digital services. You simply approve it through your Personal Tax Account or Business Tax Account u2014 a straightforward online step. The old paper 64-8 form is no longer needed for most situations, and this typically takes just a few days.
Step 7: Software and Data Handover
If you use cloud accounting software, your financial data is continuous regardless of who’s managing it u2014 your new accountant simply gets access, and nothing about your records changes or resets.
Timeline at a Glance
| Stage | Typical Time |
|---|---|
| Notice to current accountant | Immediate, subject to any engagement letter notice period |
| Professional clearance | 7 to 14 days |
| HMRC agent authorisation | A few days (runs in parallel with clearance) |
| Full handover complete | 2 to 4 weeks total |
When’s the Best Time to Switch?
You can switch at any point during your financial year u2014 there’s no rule requiring you to wait. That said, timing your move around your year end or just after a major filing deadline tends to be the cleanest transition point, since it avoids two firms overlapping mid-period. It’s a preference, not a requirement u2014 mid-year switches happen constantly and your new accountant simply picks up from wherever the previous one left off.
Signs It Might Be Time to Switch
- Missed deadlines or last-minute filing scrambles that feel like they’re becoming a pattern
- Slow or vague responses to straightforward questions
- Rising fees with no clearer explanation of what’s actually included
- Your business has outgrown the level of advice you’re getting u2014 no proactive input on things like salary vs dividend planning or upcoming Making Tax Digital obligations
A simple test: has your current accountant proactively raised any of these with you in the last 12 months, rather than waiting for you to ask? If not, that’s often the real answer.
Common Mistakes to Avoid
Leaving an Unpaid Invoice Behind
This is the single most common cause of a delayed switch u2014 settle outstanding fees before or during Step 1, not after.
Skipping the Engagement Letter Notice Period
Check what notice you agreed to when you first signed on u2014 giving proper notice avoids unnecessary friction.
Trying to Request Records Yourself Instead of Letting the New Firm Handle It
The professional clearance process exists precisely so you don’t have to chase this personally u2014 let your new accountant run it.
Assuming You’ll Lose Access to Your Own Records
Your statutory filings and accounts are your property, not your accountant’s u2014 they must be handed over regardless of any fee dispute.
Frequently Asked Questions
What is a professional clearance letter?
A formal letter your new accountant sends your old one, confirming there’s no ethical reason preventing the switch and requesting your financial records. It’s required under ICAEW and ACCA conduct rules.
How long does switching accountants take?
Typically 2 to 4 weeks from first notice to full handover, with professional clearance and HMRC authorisation often running in parallel.
Can my old accountant refuse to hand over my records?
No, not for your statutory records u2014 these belong to you. They can withhold their own internal working papers until any outstanding fees are paid.
Do I still need to fill in a 64-8 form?
No, not for most cases. HMRC agent authorisation is now handled digitally, and you simply approve it through your online tax account.
Can I switch mid-year, or do I have to wait for my year end?
You can switch any time. Aligning with your year end can make the handover slightly cleaner, but it’s not required.
Thinking of Switching? Talk to Filing Accounts UK
At Filing Accounts, we manage the entire switching process for new clients u2014 professional clearance, records transfer, and HMRC authorisation u2014 so your part really is just a couple of emails and an ID check.
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