How to Switch Accountants in 3 Simple Steps
Most people stay with the wrong accountant for years. Not because the service is good, but because they assume switching means weeks of admin, chasing paperwork, and one very awkward phone call.
Here's what switching actually asks of you: send one email, prove your identity, sign one letter. That's the whole job. Switching accountants takes you three tasks and 15 minutes! Your new firm handles the rest.
Everything else happens between the two firms, and it's a well-worn, regulated process that accountants run every week. This post walks through exactly what you do, what we do, and the small print that occasionally slows things down.
Your entire to-do list
1. Tell your current accountant you're leaving. One short email. You don't need to give a reason, justify the decision, or sit through an exit conversation. There's a copy-paste template at the bottom of this page.
2. Complete an ID check. Every UK accountancy firm must verify new clients under anti-money-laundering rules. In practice that means confirming your identity with photo ID and proof of address. It's routine, and it protects you as much as anyone.
3. Sign the engagement letter. This is the contract with your new firm. It sets out what's covered, what it costs, and who's responsible for what. Read it, sign it, done.
That's it. No calls to HMRC. No downloading years of records. No standing between two firms passing messages.
The whole switch typically completes in two to four weeks, and your involvement ends on day one.
What happens behind the scenes
While you get on with running your business, your new accountant works through a standard handover sequence:
Professional clearance letter. We write to your old firm asking whether there's any professional reason we shouldn't act for you, and requesting your records. Despite the name, this isn't a permission slip. ACCA guidance for outgoing accountants is explicit that the old firm has no authority to grant or withhold clearance. It's a professional courtesy, and the decision to act sits entirely with the new firm.
The handover pack. Your old accountant sends across the working papers we need to pick up where they left off: last filed accounts, tax computations, capital allowances history, fixed asset register, payroll records and VAT workings where relevant. A complete pack matters more than most people realise. Missing capital allowances history, for example, can mean losing track of claims worth real money. Part of our job is checking the pack is complete and chasing anything that isn't.
HMRC agent authorisation. We register as your tax agent so we can file returns and speak to HMRC on your behalf. Depending on the taxes involved this happens through HMRC's digital agent services or the 64-8 form. GOV.UK's agent authorisation guidance covers the mechanics, but the short version is: we start the process, you approve it, HMRC switches the authorisation. Your old accountant's access ends.
Software migration. If your books live in Xero or similar, we take over the subscription or transfer ownership, then revoke the old firm's user access. One thing worth checking before you give notice: who actually owns your Xero subscription. If it's billed through your old accountant rather than directly to you, ownership needs transferring as part of the handover so you never lose access to your own data. We handle the transfer, but knowing the answer upfront avoids a mid-switch surprise.
When to switch: the clean break
You can switch at any point in the year. But there's a golden window just after a natural break: your company year-end, a filed corporation tax return, or the end of a VAT quarter. Switch then and there's no half-finished work to argue over, and no risk of paying two firms for the same job.
There's a bigger timing reason right now. Making Tax Digital for Income Tax went live on 6 April 2026 for sole traders and landlords earning over £50,000, with quarterly digital updates replacing the single annual return. The £30,000 band follows in April 2027. If your current accountant hasn't moved you onto compatible software, or gone quiet on the subject entirely, that silence is a warning sign. You can check whether MTD applies to you on GOV.UK, and switching to a firm already running clients on quarterly submissions is far easier before a deadline than during one.
The two things that cause delays
Almost every slow handover comes down to one of two problems, and both are avoidable.
Unpaid fees. If you owe your old firm money for work already done, they can exercise a "lien": legally holding onto certain records until the bill is settled. Professional bodies encourage firms to put the client's compliance first, but don't rely on goodwill. Clear any outstanding invoices before you give notice and the most common holdup disappears.
A slow outgoing firm. Occasionally an old accountant drags their feet on the handover pack. They're professionally obliged to respond promptly, and persistent silence can be escalated to their regulatory body. In practice, a firm chasing on your behalf gets answers far faster than a client chasing alone. That's our job, not yours.
Accountant Notice Email Template
Copy, fill in the name, send. The bracketed reason line is optional; you owe nobody an explanation.
Dear [Name],
I'm writing to let you know that I've decided to end our engagement and will be appointing a new adviser to look after my accounts.
Thank you for the support you've provided to date. [Optional: one line on the reason, if you want to give one.]
My new accountant will be in touch shortly to request professional clearance and a handover of records. I'd appreciate your help in making that a smooth process.
Kind regards, [Your name]
Breaking up With Your Old Accountant Doesn’t Have to Be Hard
If you've been putting off a switch because it felt like a project, it isn't one. It's an email, an ID check and a signature, and the two-to-four-week clock starts the moment you say the word.
If you’re thinking about appointing a new accountant, please get in touch with Linggard & Thomas and we'll confirm your fixed fee, send the engagement letter, and take the handover from there.
