How do you change accountant?
Changing your accountant is straightforward and your new accountant does almost all of the work. The process: tell your current accountant you’re leaving, appoint your new one (they’ll send an engagement letter and run a quick ID check), and they then handle the rest — sending a “professional clearance” letter to your old firm, collecting your records, and getting authorised to deal with HMRC on your behalf. It usually takes a few weeks, you can switch at any time of year, and your tax affairs stay safe throughout. The most common holdup is simply an unpaid invoice with your old firm, so settle that first (GOV.UK).
The reassurance up front
Your new accountant does it
Professional clearance letter, records, and HMRC agent authorisation are handled by the new firm. Your part is two emails and a quick ID check.
Switch any time of year
You do not have to wait for a year-end. Timing affects cost, not permission. We pick the cleanest handover point with you.
Records + HMRC position protected
Regulated firms are bound to cooperate with the handover. Your records move across cleanly and nothing falls through the cracks.
Why it’s easier than you think
If you’re unhappy with your accountant — poor communication, missed deadlines, rising fees, or you’ve simply outgrown them — the only thing usually stopping people from switching is the worry that it’ll be a hassle. It won’t be. Firms do this constantly: a smooth switch is the norm, not the exception. The technical, slightly intimidating bits — the professional clearance letter, requesting records, and HMRC authorisation — are done by your new accountant, not you. Your real workload is a couple of emails and an ID check.
The process, start to finish
Seven steps. Your new accountant runs steps 4–7. Verified against GOV.UK, ICAEW and ACCA conduct rules, May 2026.
Check your engagement letter and clear invoices
Review your engagement letter for any notice period (often around 30 days) and settle any outstanding invoices with your current accountant. An unpaid bill is the single most common cause of a delayed switch — clear it now and everything else moves smoothly.
Tell your current accountant
A short, polite email is enough. State that you are moving your affairs to a new firm. You do not need to give reasons. If there is work in progress (e.g. a year-end mid-flight) you want them to finish, name it and the date you need it by.
Appoint your new accountant (engagement letter + AML/ID check)
Your new accountant sends an engagement letter setting out services, fees and responsibilities, and runs a legally-required anti-money-laundering identity check — passport or driving licence plus a proof of address. Sign the engagement letter and supply the ID, and they take over from here.
New accountant sends a professional clearance letter
Your new firm writes to your old one for professional clearance — a routine, ethical formality that confirms there is no reason they shouldn't act, and requests your records (accounts, tax returns, trial balances, ledgers, payroll, VAT, key HMRC correspondence). A regulated old firm is bound to cooperate within a reasonable timeframe.
Old firm provides a disengagement letter and handover pack
Your previous accountant issues a disengagement letter setting out the work done to date and what remains, and sends the requested records and working papers across. This is typically at no charge. If a fee is outstanding they may retain certain documents under a 'lien' until the bill is paid.
HMRC agent authorisation (online)
You authorise the new accountant as your HMRC agent through HMRC's online service. The paper form 64-8 still exists but online is now standard. HMRC posts you an authorisation code; once you give it to your accountant they can act on your behalf for Corporation Tax, VAT, PAYE and Self Assessment. Codes can take a week or two by post — start early if a deadline looms.
Software handover (cloud accounting)
If your books are in cloud accounting software, invite the new firm as an adviser, confirm the handover is complete, then revoke the old firm's access. The data stays in your account throughout — nothing migrates, nothing is lost.
The AML/ID check at step 3 is a legal requirement under the UK’s anti-money-laundering rules (GOV.UK). The HMRC online agent authorisation route at step 6 has largely replaced the old paper 64-8 for most cases (GOV.UK — HMRC online services for agents).
The reassurance that matters
- Your new accountant does the heavy lifting— clearance letter, records request, HMRC authorisation. Your part is a couple of emails and an ID check.
- You can switch any time of year — you do not have to wait until year-end, though timing can affect cost (see the mid-year switching spoke).
- Your records and HMRC position are protected— professional accountants are bound to cooperate, and nothing falls through the cracks when it’s handled properly.
- It’s routine— firms do this constantly; a smooth switch is the norm, not the exception.
The most common holdup
An unpaid invoice with the old firm. That’s it — it’s the single most common cause of a delayed switch. A firm cannot refuse professional clearance purely because of a fee dispute, but they may exercise a lien — a right to retain certain documents they produced — until outstanding fees are paid. The practical move is simple: clear any legitimate outstanding invoice before you switch and the rest moves smoothly. If a fee is genuinely unreasonable, that’s a separate dispute to handle on its own merits — don’t let it hold the whole switch hostage. The detail on documents and the lien is on the records handover spoke.
What if it goes wrong
The genuine majority of switches are smooth. When friction does come up, it’s almost always one of three things: a fee dispute, slow cooperation from the old firm, or mid-job timing. The key protections favour you: a regulated firm is bound by its professional body (ICAEW, ACCA, IFA) to cooperate within a reasonable timeframe, clearance can’t be refused purely over fees, and there’s a clear complaints route if a firm genuinely stonewalls. The full playbook — including how each friction point is handled and when to escalate — lives on the what-if-it-goes-wrong spoke.
What a proactive accountant flags
One way to tell whether your current firm is the right one: ask whether they’ve raised any of these with you in the last 12 months. A proactive accountant flags them beforeyou ask — the dividend-allowance and rate-rise impact on director pay (Salary vs Dividends pillar), payments on account and the January cash-flow hit (Self Assessment pillar), and the MTD for Income Tax transition from April 2026 (MTD for Income Tax pillar). If none of these have been mentioned, that’s usually the answer.
The full switching series
Six companion guides that go deeper than the pillar.
The step-by-step process to change accountant
All 7 steps with the GOV.UK / ICAEW / ACCA detail behind each — notice periods, engagement letter, AML/ID, clearance, disengagement, HMRC authorisation, software handover.
Can I switch accountants mid-year? (the best time to switch)
Why you can switch any time of year, the 'clean break' window, the overlap cost to avoid, and how to handle a deadline that's close.
What is a professional clearance letter?
What it asks for, what it is not (it isn't permission to leave), who sends it, and why a regulated firm is bound to respond cooperatively.
Your records, data and software — what happens to them
The handover pack, why cloud accounting is the easy case, what 'belongs to you', the 'lien' rule, and how UK GDPR sits across the transfer.
What if my old accountant won't cooperate or disputes fees?
The three friction points — fee disputes, slow cooperation, mid-job timing — and how each is handled. Escalation route via the professional bodies.
Signs it's time to switch — and how RR makes it painless
Poor communication, missed deadlines, rising fees with flat value, only-once-a-year contact, no proactive tax planning. The six honest signs.
Frequently asked questions
How do I change accountant?
Tell your current accountant you are moving on, appoint your new accountant (they will send you an engagement letter and run a quick ID/AML check), and they then handle the rest — sending a professional clearance letter to your old firm, collecting your records, and getting authorised to deal with HMRC on your behalf. It usually takes a few weeks, and you can switch at any time of year.
Do I need my current accountant's permission to leave?
No. You are free to switch whenever you like — the relationship is yours to end. The 'professional clearance' letter your new accountant sends is an ethical formality between the two firms, not a request for permission. A regulated accountant (ICAEW, ACCA, IFA) is bound by their professional body to cooperate with the handover within a reasonable timeframe.
Can I switch accountants in the middle of the tax year?
Yes — you can switch at any time of year. There is no rule requiring you to wait for a year-end or the end of the tax year. Timing affects cost and convenience rather than whether you are allowed: the cleanest handover is just after a completed milestone (year-end accounts filed, a CT return submitted, or a VAT quarter closed), because that avoids paying two firms for overlapping work. But if you are unhappy now, waiting isn't necessary.
How long does switching accountants take?
A few weeks end to end is typical. Professional clearance from the old firm tends to come back within days to a couple of weeks. The slowest step is usually HMRC's agent authorisation: codes by post can take a week or two to arrive. If you have a filing deadline close by, factor that in — start the switch early or have the old firm complete the imminent filing first.
Will my new accountant do all the work?
Almost all of it. The new accountant sends the professional clearance letter to your old firm, requests your records, and handles HMRC agent authorisation. Your part is genuinely small: a short notice email to your current accountant, signing the new engagement letter, the AML/ID check (passport or driving licence plus proof of address), and — if you use cloud accounting software — inviting the new firm and removing the old one.
What is a professional clearance letter?
A standard, routine letter the new accountant sends to the old one when you switch. It asks whether there is any professional reason the new firm should not act for you, and it requests the records needed for a smooth handover — prior accounts, tax returns, working papers, payroll and VAT data, and key HMRC correspondence. Despite the name, it is not a request for 'permission' for you to leave. It is a formality between regulated firms.
What if I owe my old accountant money?
An unpaid invoice is the single most common cause of a delayed switch. A firm cannot refuse professional clearance purely because of a fee dispute, but they may exercise a 'lien' — a right to retain certain documents they produced — until the bill is settled. The practical fix is simple: clear any legitimate outstanding invoice before you switch and everything moves smoothly.
How do I authorise a new accountant with HMRC?
Through HMRC's online agent authorisation service. Your new accountant initiates the request; HMRC posts you an authorisation code, which you give back to your accountant to complete the authorisation. The paper form 64-8 still exists but online is now standard. The post-out can take a week or two, so start early if a deadline is close. See GOV.UK — Authorise an agent to deal with your tax affairs.
What happens to my data if I'm using cloud accounting software?
Cloud accounting is the easy case. The data lives in your account, not your accountant's. Switching is just changing who has adviser access: invite the new firm, confirm the handover is complete, then revoke the old firm's access. Nothing migrates, nothing is lost, and there is no gap in your records.
What are the signs I should change accountant?
Common signs: you can't get a straight answer or a timely reply, deadlines have been missed or nearly missed, fees keep rising without more value, you only hear from them at year-end, they are not proactive about tax planning (the dividend-rate changes, payments on account, the MTD transition), or you have outgrown them as your business has grown. If any of these sound familiar, switching is easier than staying.
Can my old accountant refuse to release my records?
Generally no. Documents you provided and primary records belong to you. A regulated firm is bound to cooperate with a professional clearance request within a reasonable timeframe and cannot refuse purely over a fee dispute. The one genuine exception is a 'lien': they may retain certain documents they produced until outstanding fees are paid. If a firm stalls beyond that, you can escalate a complaint to their professional body (ICAEW, ACCA or IFA).
Ready to switch? RR makes it effortless.
We send the professional clearance letter, collect your records, and get authorised with HMRC — so you barely lift a finger. Most clients tell us the only regret is not switching sooner.
We do almost all the work
Professional clearance letter to your old firm, records collected, HMRC agent authorisation done online. Your part: two emails and a quick ID check.
Switch any time of year
You do not have to wait for year-end. We pick the cleanest handover point so you do not pay twice for overlapping work.
Chartered, IFA-supervised
A regulated practice. Your old accountant is professionally bound to cooperate within a reasonable timeframe, and your records and HMRC position stay protected throughout.
IFA-supervised UK chartered practice · four UK offices · switch handled from clearance to HMRC authorisation
About the author
Mehmood Rajoka, Managing Partner, RR Accountants
Managing Partner at RR Accountants — a UK practice supervised by the Institute of Financial Accountants. Specialist focus on UK landlord and property tax, MTD for Income Tax, and limited-company advisory. RR Accountants serves clients across four UK offices.
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This guide is general information about the UK process for changing accountant. It is not personal tax or legal advice — the right time to switch, what records you can request, and how a fee dispute should be handled all depend on your specific circumstances. Speak to a regulated UK accountant before acting. Process verified against gov.uk, ICAEW and ACCA as of . HMRC’s agent-authorisation mechanics change periodically — re-check primary sources before relying on these details. Book a discovery call → or contact us.