When changing accountants, your new firm issues a Professional Clearance Letter to your old accountant requesting all tax records, accounts, HMRC authorisations, and relevant files. After clearance, you appoint the new accountant (e.g. via a Letter of Engagement), assign HMRC permissions (64-8 form), and migrate books or software.  

Yes, you can switch accountants mid year without penalty. There is no legal requirement to stay with one accountant for a full tax year. Changing earlier can allow your new accountant to correct issues, optimise tax strategy, and migrate systems ahead of year end.  

That really depends on how tidy your records are and how cooperative both firms are. For many businesses, the full switching accountants handover can be completed in two to four weeks. If you have multiple years of books, complex income streams, or are migrating software, it might stretch to six to eight weeks. A clear agreement and good communication help speed things along. 

You should ask for your full financial statements, past tax returns, bookkeeping ledgers, VAT records, payroll files, bank statements, HMRC correspondence, and software backup files. Also ask for accounting system login exports or access. Having all relevant documentation upfront smooths the procedure for changing accountants and reduces delays during the handover. 

When handled professionally, the impact on your day-to-day should be minimal. A good new accountant plans an overlap, staggers tasks, and ensures deadlines (VAT, payroll, etc.) stay met. Because the transition is managed behind the scenes, your operations continue with as little disturbance as possible while the changing accountants process takes place.

Professional clearance is a standard ethical step. After you approve it, your prospective accountant contacts your current accountant to check for any conflict, outstanding liabilities, or issues before taking you on. They request records and confirm there’s nothing preventing them from placing you under their care. It’s a safeguard built into changing accountants in the UK. 

It is best practice to settle dues with your current accountant to avoid retention of records or disputes. While some firms may hold back documents until cleared, you can request statements and formal handover once fees are reconciled. 

Many choose to switch at year end for a cleaner handover and fewer overlapping records. However, switching mid-year is perfectly valid and sometimes advantageous, especially if your current accountant is underperforming. The optimal timing depends on your situation.  

Yes, after you appoint the new accountant, you or they submit Form 64-8 (or HMRC’s online equivalent) to authorise them to act on your behalf. This gives them access to tax accounts, filing authority, and correspondence rights. 

You don’t just swap out tools, you migrate your entire financial history. A good new accountant will work with you to pick the right timing, export your old data, map chart of accounts, test the migration, and run both systems in parallel for some time. According to migration best practice, you should run overlap, test reports, clean the data first, and fully train your team before going live. 

Not if your handover is handled right. Your new accountant should take over smoothly so that all VAT, corporation tax, payroll, or self-assessment returns still go out on time. With proper coordination, there’s no break in compliance or penalties. 

Look for credentials (e.g. ACCA, ICAEW), industry knowledge, responsive communication, fixed transparent pricing, accounting software compatibility, and references. You want someone who understands your niche (e.g. content creators) and can support growth. 

Look for credentials (e.g. ACCA, ICAEW), industry knowledge, responsive communication, fixed transparent pricing, accounting software compatibility, and references. You want someone who understands your niche (e.g. content creators) and can support growth. 

Some accountants charge a “handover fee” or catch-up work fee for migrating accounts, preparing past records, or reconciling unmatched items. Always request a detailed quote so you know what the switch might cost upfront. 

Absolutely, switch accounting firms is not restricted by business type. Whether you are a sole trader, freelancer, or small limited company, you can appoint a new accountant anytime. The process is very similar: clearance, handover, authorisations, and data migration.