To switch accountants in the UK, you appoint a new firm, who then writes to your old accountant for "professional clearance" and your records. You sign a new engagement letter and a 64-8 (or complete a digital handshake) to authorise the new firm with HMRC. The whole process usually takes one to three weeks, and you don't need to tell HMRC yourself or pay any exit fee to leave.
It's far simpler than most people fear. You don't have to wait for your year end, and a good incoming accountant does almost all the work for you.
Can I switch accountants at any time?
Yes. There's no minimum period and no obligation to stay. You can change accountant mid-year, mid-project, or right after filing, whatever suits you. Check your current engagement letter for any notice period (commonly 30 days) or outstanding fees, but these rarely stop a switch.
The best time is usually after a filing deadline (for example, just after your Self Assessment or company year end), so handover happens during a quiet period. But if your current accountant is unresponsive or making mistakes, don't wait.
Step-by-step: how to change accountants
1. Choose your new accountant first
Never resign before you've lined up a replacement. Look for the right qualifications (ACA, ACCA or CIMA), relevant experience for your situation, transparent fixed fees, and someone who replies quickly. Ask whether the quote covers everything, accounts, Corporation Tax, payroll, VAT and Self Assessment, so there are no surprises.
2. Tell your old accountant you're leaving
A short, polite email is enough. You don't need to give a reason. Something like: "Thank you for your work to date. I've decided to move to a new accountant, who will be in touch for professional clearance and to request my records." Keep it written so there's a clear date.
3. Let the new firm request professional clearance
Your new accountant sends a professional clearance letter (also called an "ethical clearance" letter) to your old one. This is a profession-wide courtesy that asks two things: are there any professional reasons we shouldn't act for this client, and please pass over the relevant records. You don't have to manage this, it happens between the two firms.
4. Sign a new engagement letter
The incoming firm issues an engagement letter setting out the services, fees and responsibilities. Read it, check the scope matches what you discussed, and sign. This formally starts the relationship.
5. Authorise the new accountant with HMRC
Your new firm needs to be set up as your agent with HMRC. You'll either sign a paper 64-8 form or, more commonly, complete a digital handshake: HMRC emails you a link, you sign in and approve it within 21 days. Never share your Government Gateway login, authorise through the link instead. Setting up the new agent automatically replaces the old one for that tax. You can read the official rules on changing or removing your tax agent's authorisation on GOV.UK.
6. Hand over your records
The old accountant should pass on accounts, tax returns, payroll data, your bookkeeping file (e.g. Xero or QuickBooks login transfer) and any documents you've given them. Under accounting ethics rules they must do this promptly, even if you have an unpaid bill, though they can keep work they haven't been paid for under a "lien". Settle any genuine outstanding fees to avoid delay.
7. Confirm everything has transferred
Once clearance is granted and authorisation is live, check your new accountant has full visibility of your HMRC accounts, your software, and your filing history. Ask them to confirm the next deadlines so nothing slips.
Will switching disrupt my filings or deadlines?
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No, if you plan it. Your tax obligations don't reset when you change accountant. A clean handover means your new firm picks up exactly where the old one left off. Tell them your upcoming dates early, Self Assessment (31 January), Corporation Tax, VAT quarters, and payroll RTI, so cover is continuous.
One detail worth checking: if your turnover is near the VAT registration threshold of £90,000, make sure the handover doesn't delay a registration. And if your income straddles tax bands, the personal allowance is £12,570, higher rate starts at £50,270 and the additional rate at £125,140 for 2026/27, confirm your new accountant has the figures they need to keep your tax code and payments on account accurate.
How much does it cost to switch accountants?
Usually nothing to leave. UK accountants generally don't charge an exit or "transfer out" fee, and professional clearance is free. Your only costs are any unpaid fees for work already done, plus the new firm's normal charges going forward. Watch for clauses in your old engagement letter about work in progress.
Common questions
- Do I tell HMRC myself? No, authorising the new agent handles it.
- Will I lose my history? No, records and software transfer across.
- What if my old accountant ignores the clearance letter? Your new firm can proceed after a reasonable period; the professional bodies expect a timely reply.
More answers are on our FAQ page, and you can always talk to us about your specific situation.
Thinking of making the move?
Switching is straightforward when someone handles the clearance, the 64-8 and the handover for you. If you'd like a fixed-fee quote and a no-fuss transfer that keeps every deadline on track, speak to a Zmartly accountant, we'll do the heavy lifting and confirm everything's in place before your old firm signs off.
