If you’ve been putting off switching accountants because it sounds complicated, we can reassure you that it isn’t.
This is because during a transition to a new accountant, most of the work happens between your new accountant and your old one, and this requires little input from yourself as Tax Driven Accountants will contact your previous accountant on your behalf.
You also won’t need to wait until your year-end because switching accountants can happen at any period throughout the year.
This guide will walk you through exactly what to expect, step by step, so you know what’s coming before you make the decision to change.
Is it hard to switch accountants?
No, and this is something we want to reassure you of, because often it’s the main thing that stops people from doing it.
Switching accountants is a routine, everyday process, which is often simpler than people recognise. Your new accountant handles almost everything, including:
- Contacting your old firm
- Requesting your records
- Getting set up to deal with HMRC on your behalf.
For you, the only thing you need to do is sign a change of accountant confirmation letter, which Tax Driven will supply.
Signs it might be time for switching accountants
There are many circumstances for switching accountants that they don’t always need to be because of a fallout or bad service. Some of the most common reasons we hear when speaking with new clients include:
- You’re chasing your accountant for replies, rather than the other way round
- Deadlines have been missed, or you’ve found out about them late
- You never hear from them unless it’s about an invoice, meaning there’s less access to proactive advice, and no check-ins
- Your business has grown and you need broader support than they can offer
- You’ve simply outgrown a one-size-fits-all service.
If any of that sounds familiar, it’s worth exploring your options.
How to switch accountants, step by step
Here’s what actually happens, from the day you decide to switch to the day it’s done.
Step 1: Choose your new accountant
Have an initial chat, check they’re a good fit for your business, and confirm what’s included in their service. When switching accountants to a new one, we’d recommend checking the following to determine if they’re the right fit:
- They’re qualified and registered with a recognised body, such as ACCA, IFA, AAT and ICAEW
- They respond quickly and explain things in plain English with no complicated jargon
- They offer proactive advice throughout the year and can answer your queries
- Their pricing is clear and upfront, such as fixed fees
- They’ve worked with businesses like yours before, so they understand your sector well and the requirements that may be involved
- They use accounting software that fits how you already work
- How their clients speak of them through reviews on platforms like Trustpilot and testimonials.
Through conversations with potential clients, you can often gain a lot of insight into how they work and the quality of service they can provide.
Step 2: Give your new accountant the go-ahead that you’re switching accountants to them
Once you’ve decided, you simply confirm you’d like to proceed. From here, your new accountant takes over.
Step 3: Your new accountant contacts your old one
This is done through something called a professional clearance letter, which is a courtesy note asking your old accountant to confirm there’s no reason they shouldn’t hand over your affairs, and requesting your records. It’s a standard, everyday part of the process, not a dispute or a negotiation, and doesn’t take too long to be completed.
Once this step has been completed and your new accountant has the reassurances they need to work with you, authorisation can proceed.
Step 4: You authorise your new accountant with HMRC
This is one thing that does require your input, which is completing a 64-8.
HMRC will need to know who’s allowed to act on your behalf, so you’ll be asked to approve this, usually online, in a couple of clicks.
GOV.UK has a clear overview of how this works if you’d like to see it in HMRC’s own words.
Step 5: Records are transferred
Your new accountant will request everything they need, including past accounts, tax returns, and any relevant paperwork, directly from your old accountant.
These provide the information they need regarding your financial situation, which helps them to complete the work to the highest possible standard.
Step 6: You’re all set up
Once the handover is complete, your new accountant is ready to act for you going forward.
Can I switch accountants mid-year?
Yes. There’s no rule saying you must wait for your financial year end, and in most cases it’s just as easy to switch partway through the year as at the start. Your new accountant will pick up your records no matter your current position.
What you need to do vs what your new accountant handles
Your new accountant will handle, contacting your old accountant, requesting and transferring your records, and setting up your files and systems on their end.
You will then handle, confirmation that you’d like to go ahead and the necessary authorisation for your new accountant with HMRC.
How long does switching accountants take?
Most switches are complete within two to four weeks, though it can be quicker if your old accountant responds promptly. There’s rarely anything that holds things up on your side, and the timeline mostly comes down to how quickly records are handed over.
Common questions about switching accountants
Is it difficult to switch accountants?
No. It’s a routine process, and your new accountant does most of the work for you when switching accountants.
How do I transfer from one accountant to another?
You confirm you’d like to proceed with your new accountant, they contact your old one to request your records, and you complete a short authorisation step with HMRC.
How do I move to a new accountant?
Choose your new accountant, let them know you’d like to switch, and they’ll take it from there — including handling the handover with your current accountant.
How do I leave an accountant?
You don’t normally need to give a long notice period (typically 1 month – check your terms and conditions) or have a difficult conversation. Once you’ve confirmed your switch with a new accountant, the new accountant will manage the process of formally taking over on your behalf.
Ready to begin switching accountants?
If any of this sounds like exactly what you need right now, we’d be happy to help.
Book a free, no-obligation consultation and we’ll talk you through what switching to us would look like for your business or get in touch with our team directly if you have questions first.
Our trusted team of accountants help clients with a range of accountancy needs every year, and provide a friendly, personalised service that they can rely on.
Contact us on 0800 999 1800 or send us an enquiry to discuss how you can reduce your tax to the lowest levels possible (in accordance with UK tax laws).
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