Switching accountants in the UK is much easier than most business owners think. The professional code of conduct that all qualified accountants follow does most of the work for you — you spend about 10 minutes signing documents, and your new firm handles the rest. This guide walks through the actual process, what it costs, what to look out for, and how to know if it’s the right time.
The 30-second version
- You can switch accountants any time — no need to wait for year-end.
- Your new accountant handles 90% of the process via “professional clearance”.
- Total time on your end: ~10 minutes of signing documents.
- Total elapsed time: 1–3 weeks for a clean handover.
- It should cost you nothing extra; charging clients to leave is unprofessional.
Why people switch accountants
Of the businesses that switch to us each year, the reasons are remarkably consistent:
- Slow or unresponsive communication. Most common. “I email and don’t hear back for two weeks” is a hard signal that the relationship has broken down.
- Reactive, not proactive. The accountant only contacts the client when the year-end deadline looms. No tax planning, no advice on structuring, no discussion of changes in legislation.
- Stuck on outdated software. Still on desktop Sage 50 in 2026, no MTD setup, manual VAT submissions.
- Mistakes that cost money. A missed allowance, a wrong VAT scheme, an avoidable penalty. Once trust breaks, it doesn’t come back.
- Outgrowing the firm. The high-street accountant who handled your sole-trader years can’t always scale with you to a £1m turnover limited company.
- Specialist needs. Niche businesses (Amazon FBA, film, crypto, property) often need someone with sector knowledge.
- Price. Less common as a primary reason than people expect — but real, especially when fees creep up year on year without commensurate service improvement.
When is the right time to switch?
Common myth: “I need to wait until my year-end.”
Reality: any time is a fine time to switch, and waiting often costs you. If your relationship has broken down or you’re missing tax planning opportunities, the financial case for switching mid-year is usually stronger than waiting six months.
That said, three timings are slightly easier than others:
- Just after year-end accounts have been filed — your old accountant has finished their main deliverable, files are clean to hand over.
- Just after a VAT quarter ends — minimises mid-period reconciliation work.
- Before a major event (raising investment, applying for a mortgage, selling the business) — get the right firm in place 3–6 months ahead.
Avoid switching in the two weeks immediately before a major filing deadline (Corporation Tax, VAT, Self Assessment) — but other than that, you’re free to move whenever it suits you.
The 7-step switching process
Here’s exactly what happens, with rough timelines.
Step 1: Sign engagement letter with your new accountant
Your effort: 5 minutes. Time: same day.
Your new firm sends an engagement letter (legal contract) covering scope of work, fees, and responsibilities. You sign it digitally — usually via DocuSign, HelloSign, or similar.
Step 2: Sign disengagement letter to your old accountant
Your effort: 2 minutes. Time: same day.
Your new accountant drafts a disengagement letter for you to send to the existing firm. It says “I’m switching, please cooperate with the handover, please send my records to [new firm]”. Most firms will give you a template; you sign and email it.
Step 3: Professional clearance request
Your effort: 0. Time: 1–3 weeks.
This is the part the new accountant handles for you. They send a “professional clearance” letter to your outgoing accountant, asking:
- “Is there any professional reason we shouldn’t act for this client?” (e.g., unpaid fees, ethical concerns)
- “Please send their accounting records, tax computations, and prior year working papers.”
This is a courtesy convention required by all the major UK professional bodies (ICAEW, ACCA, CIOT). Your old accountant should respond within 30 days. If they don’t, the new firm follows up — but you’re not blocked from progressing.
Step 4: Authorise new accountant with HMRC
Your effort: 5 minutes. Time: 1–7 days.
Your new accountant sends you a digital authorisation request via HMRC’s Agent Authorisation Service. You log into your Government Gateway account, accept the request, and they’re now authorised to file on your behalf.
Some agents prefer the older “64-8” paper form which generates an authorisation code by post. Slower (7–10 days) but doesn’t require Government Gateway.
Step 5: Records handover
Your effort: 0. Time: 1–2 weeks.
Your old accountant transfers digital records, working papers, software access, and any correspondence directly to the new firm. If you’re on Xero or QuickBooks, this is usually a software transfer (subscription billing moves to the new accountant). For Sage or older desktop systems, files are exported and imported.
Step 6: Update Companies House (if applicable)
Your effort: 2 minutes. Time: 24 hours.
If your old accountant was your registered office or process agent at Companies House, your new firm files a CH01 (change of registered office) or LL CH01 form. This takes 24 hours to process.
Step 7: First filings under the new firm
Your effort: minimal. Time: 30–60 days.
Your new accountant reviews prior filings, identifies any issues, agrees a clean-up plan if needed, and starts producing your monthly bookkeeping, VAT returns, payroll, and management accounts.
Switching to Tax Falcon takes 10 minutes of your time
We handle all 7 steps above. You sign two documents, accept the HMRC authorisation, and we drive the rest. No fees for switching, no contracts longer than a month.
What can go wrong (and how to avoid it)
Your old accountant is slow to respond to clearance
This is the most common friction point. Some firms genuinely take their time; others quietly drag their feet because they don’t want to lose the client. Either way, you’re not legally blocked — your new firm can usually proceed with reasonable assumptions and reconcile back later if records eventually arrive.
The fix: A polite but firm email from you (not just the new firm) usually unsticks things. Cite the 30-day professional courtesy convention and copy your new accountant.
Your old accountant claims a “lien” on records
If you owe them outstanding fees, your old accountant may legally retain certain working papers until paid. They cannot retain your statutory records (your bank statements, invoices, tax returns) — those are yours.
The fix: Settle outstanding fees first if reasonable, or dispute them through your professional body’s complaints process if you believe the charges are improper.
Records are messy or missing
Sometimes the old firm’s bookkeeping is poor enough that the new firm has to rebuild prior periods. Honest accountants will quote this clean-up work separately and tell you up front; it’s typically £500–£2,000 depending on complexity.
Software subscription complications
If your accounting software (Xero, QuickBooks) was paid by the old firm and bundled into their fee, you may need to either pay directly or have your new firm take over the subscription. This is a 5-minute admin task but worth flagging early.
Costs and contracts — what to know
Most reputable UK accountants:
- Don’t charge to leave. ICAEW and ACCA both consider “exit fees” unprofessional in nearly all cases. Don’t accept this if it’s quoted.
- Don’t have long-term contracts. Industry standard is monthly rolling, with 30 days’ notice. Watch for any new firm trying to lock you into 12-month contracts.
- Don’t take retainers up front. Pay-as-you-go or monthly direct debit is standard.
If you’re paying an annual fee in advance and switching halfway through, ask for a pro-rated refund. Most firms will agree; if they refuse, it’s a complaint to their professional body.
8 questions to ask before signing with a new accountant
- What qualifications do you hold? Look for ACCA, ACA, or CIMA. Bookkeeping qualifications (AAT) are fine for compliance but not for tax planning or strategic advice.
- What’s your average response time during business hours? Anything over 24–48 hours is a yellow flag; over 72 hours is a red flag.
- How many clients in my sector / business model do you currently serve? You want at least 10 of comparable shape.
- What software do you use, and is the licence included? Cloud (Xero, QuickBooks, FreeAgent) is the only acceptable answer in 2026.
- Is this a fixed monthly fee or hourly? Fixed for recurring work. Hourly only for project-based one-offs.
- What’s specifically not included? Beware of “starting from £X” pricing that excludes basics like VAT or payroll.
- How will you find me tax savings? A serious accountant should give 2–3 specific examples relevant to your business within 10 minutes.
- What happens if I want to leave? A confident answer is “we’ll cooperate fully and there are no exit fees”.
Frequently asked questions
Can I switch mid-year?
Yes — and most switches happen mid-year. The new accountant picks up from a logical handover point (usually the start of your current accounting year) and reconciles forward.
Will my old accountant be obstructive?
Some are, most aren’t. Qualified accountants are bound by a code of conduct that includes professional cooperation with successor firms. If your old accountant genuinely blocks the handover, that’s a complaint to their professional body (ICAEW, ACCA, CIOT) — and they know it.
How long does the whole switch take?
Typically 1–3 weeks for a clean handover. Complex businesses (multi-entity groups, niche tax setups, ongoing HMRC enquiries) can take 4–6 weeks. Your active work is done in the first 24 hours.
Is there any charge for switching?
From your new accountant: usually no — switching is a normal business activity, not a project. From your old accountant: there shouldn’t be, but some try to charge a “disengagement fee” or “records release fee”. Push back on these; they’re not standard.
What if I owe my current accountant money?
Settle the bill first if it’s reasonable. If it’s a disputed bill, follow your accountant’s professional body complaint process before the switch — don’t just refuse to pay, as that creates a “lien” defence that lets them legitimately delay handover.
What if I’m in the middle of an HMRC enquiry?
You can still switch, but expect a few weeks of overlap where your old accountant continues to manage the live enquiry while the new firm gets up to speed. Some accountants prefer to wait until enquiries close — discuss this honestly with both firms.
Do I need to tell HMRC, Companies House, or anyone else?
HMRC: yes, via the Agent Authorisation Service (your new accountant initiates this). Companies House: only if your old firm was your registered office address. Banks, customers, suppliers: usually no, unless your old accountant was a signatory or trustee.
The bottom line
Switching accountants is a 10-minute task on your end, dressed up by inertia and the assumption that it’s harder than it is. If your current relationship isn’t working — slow communication, reactive only at year-end, mistakes that cost you money — there’s no good reason to keep paying for it.
If you’re considering Tax Falcon as your next firm, our plans start at £99/month with no setup fees, no exit fees, and 30-day rolling agreements. Book a free 15-minute switch review and we’ll tell you straight whether the move makes sense.
