Switching accountants: how it works

Switching accountants can feel like a bigger undertaking than it actually is, particularly if you have used the same firm for years and are not sure what happens to your historical records, filings and ongoing HMRC relationship along the way. In practice it is a well-established, routine process with a fairly standard sequence of steps, most of which your new accountant will handle on your behalf rather than leaving you to manage directly.

The first formal step, once you have chosen a new accountant and told them you want to go ahead, is something called professional clearance. This is an ethical and professional courtesy requirement set out by bodies such as ICAEW and ACCA, rather than a legal formality — your new accountant writes to your outgoing accountant, asking whether there is any professional reason they should not accept the appointment. This might sound like a strange thing to formalise, but it exists to protect clients: it gives the outgoing accountant an opportunity to flag anything relevant, such as unresolved ethical concerns or unpaid fees, and gives the incoming accountant a chance to make an informed decision about taking you on before committing. In the ordinary case, where you are simply moving on for unremarkable reasons — cost, service, or wanting a different specialism — clearance is usually granted without incident and does not hold up the switch.

Once clearance has taken place, your outgoing accountant has a professional and, in relevant respects, legal obligation to hand over your own records — anything you provided to them originally, such as invoices, bank statements or receipts — along with their working papers relevant to your affairs, so your new accountant has what they need to continue your compliance work without starting from scratch or asking HMRC to reissue historical information. It is worth being aware that in some circumstances a firm can exercise a professional lien and withhold certain documents where fees remain genuinely unpaid, though this does not typically extend to documents that legally belong to you rather than to the firm, and it is not the default outcome of an ordinary switch.

Authorising your new accountant to deal with HMRC on your behalf is a separate, practical step from professional clearance, and it is what actually lets them file returns and correspond with HMRC for you. This is traditionally done through form 64-8, and while a paper 64-8 with a wet signature, posted to HMRC's Central Agent Authorisation Team, is still an option, most agents now handle this online instead, through HMRC's agent services, which you approve using your own Government Gateway login — a process that is often confirmed within a few days rather than the longer turnaround typical of postal submissions. When you authorise a new agent, it generally supersedes the previous one for the same tax affairs, so there is normally no need to separately "cancel" your old accountant's authorisation as a distinct extra step, though your new accountant can confirm this has taken effect correctly.

A little preparation on your side makes the handover smoother, even though most of the coordination sits with your new accountant. It is worth having to hand your Unique Taxpayer Reference (UTR), your company registration number if applicable, copies of recent accounts and tax returns, details of any accounting software you use, and your HMRC Government Gateway login details. If you know of any outstanding queries, open enquiries, or upcoming deadlines with your current accountant, flagging these explicitly to your new accountant at the outset avoids anything falling through the gap between the two firms.

Timing matters more than people often expect. Switching shortly after your year end, or well ahead of a filing deadline rather than in the final couple of weeks before one, gives your new accountant time to get up to speed properly rather than working under immediate pressure on unfamiliar figures. If you are moving because your current accountant is close to missing a deadline or has already fallen behind, it is worth being upfront with your new accountant about that timing pressure specifically, so they can judge realistically whether it can be managed in the time available.

This article is general information, not tax or accounting advice, and specific arrangements can vary between firms and professional bodies. Switching accountants is a routine, regularly-used process rather than something to be nervous about, and a reasonable new accountant should be able to talk you through professional clearance, records transfer and HMRC authorisation clearly before you commit. Our directory lists UK accountants by area if you are currently comparing options.

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