Switching accountants doesn’t have to mean disruption to your payroll, VAT, or deadlines, as long as the handover is planned properly. This accountant handover checklist walks through exactly what to sort out, so nothing slips through the cracks between your old accountant and your new one.
If you’re still deciding if you’d like to switch, our guide on switching accountants covers the full process and reasons businesses make the move. This checklist picks up once you’ve made that decision and focuses purely on making the handover itself smooth.
The accountant handover checklist for business owners switching accountants
1. Time the switch carefully
Where possible, aim to switch around your year-end or a VAT quarter, rather than mid-way through a filing period. It’s not essential, as switching mid-year is perfectly normal for many business owners who want to improve their accountancy services, but timing it this way keeps the handover simpler, since fewer things are “in progress” at once.
2. Confirm who’s handling any upcoming deadlines, in writing
If you’ve got a tax return, VAT return, or payroll run due around the time of your switch, get clear written confirmation from both your old and new accountant about who’s responsible for it. This is the single most common source of confusion during a handover, and a two-line email resolves it.
3. Request your full records from your current accountant
Your new accountant will request most of this on your behalf, but it’s worth knowing what should be included, in our accountant handover checklist, we’d recommend requesting:
- Annual accounts and tax returns from previous years
- VAT returns and any HMRC correspondence
- Payroll records, including PAYE reference numbers
- Trial balances and bookkeeping records
- Any outstanding queries or open enquiries with HMRC.
4. Sort out software and bookkeeping access
If you use cloud accounting software like Xero, QuickBooks, or Sage, check who owns the subscription and make sure access is transferred to your new accountant.
This is one of the most overlooked steps in a handover, and it’s often what causes the biggest delays if it’s missed.
5. Settle any outstanding fees
Clearing any outstanding invoices with your old accountant before the handover helps things move quickly. Most accountants will only release your records once fees are settled, so it’s check this first to ensure a smooth transition with minimal downtime.
6. Make sure your professional clearance letter is sent
Your new accountant sends what’s called a professional clearance letter to your old one. This acts as a courtesy note confirming there’s no reason that they shouldn’t hand over your affairs.
It’s a standard part of every handover, not a sign of dispute, and it doesn’t take long to complete. If you’d like a starting point for what this looks like, a simple accountant handover letter template can help set expectations clearly for everyone involved.
7. Authorise your new accountant with HMRC
This is the one step that needs your direct input, as HMRC needs to know who’s allowed to act on your behalf. For this, you’ll be asked to approve the change, 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.
8. Once you’ve completed every step of the accountant handover checklist, be sure to check in during the first few months with your new accountant
Once the handover is complete, it’s worth a quick check-in with your new accountant after the first month or two to confirm everything’s landed correctly. This includes confirmation that records have been received, deadlines are on track, and they have access that’s working as expected. A short conversation here catches anything that might have been missed.
Frequently asked questions following our accountant handover checklist
What is an accountant handover checklist?
It’s a list of the practical steps to work through when switching accountants, covering things like deadlines, records, software access, and fees, so nothing gets missed during the transition.
Will HMRC penalise me for switching accountants?
No. Switching accountants is a routine, everyday process, and HMRC doesn’t penalise you for doing it. The only thing that matters to the process is authorising your new accountant to act on your behalf, which is a quick online step.
Do I need a handover letter when switching accountants?
Your new accountant sends a professional clearance letter to your old one as a standard part of the process. You don’t need to write anything yourself, though it can help to confirm your intention to switch with your old accountant directly first.
What records do I need to hand over to my new accountant?
Typically, your annual accounts, tax returns, VAT returns, payroll records, and trial balances. Your new accountant will usually request these directly from your old one, so there’s very little for you to gather yourself.
How long does an accountant handover take?
Most handovers are complete within two to four weeks, though this can be quicker if records and access are transferred promptly.
Ready to make the switch?
If you’re working through this accountant handover checklist and want the process handled properly from start to finish, we’d be happy to help.
Book a free, no-obligation consultation and we’ll talk you through what a smooth handover to us would look like or get in touch with our team directly if you have questions first.
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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