How to switch accountant

You can change accountant at any time, but some moments are smoother than others. Switching straight after a return or set of accounts has been filed means the old firm has finished its work and the new one starts with a clean year. Switching in the weeks before a deadline, such as the 31 January self assessment deadline, puts pressure on both firms and makes it more likely that something is missed. Our self assessment deadlines guide and the guide to limited company filing deadlines can help you pick a sensible window.

It also helps to check your current terms of engagement for any notice period or for work you have already paid for, so you know what to expect before you tell the current firm.

• Choose the new accountant and agree the fee and scope of work in writing. Our guide on how to choose an accountant covers what to check.
• Give the new accountant written permission to contact your current one.
• The new accountant sends a professional clearance request, sometimes called a professional enquiry, to your current accountant.
• Write to your current accountant to say you are moving, and ask for your records and any information the new firm will need.
• Authorise the new accountant as your agent with HMRC for each tax they will handle.
• Settle any fees you agree you owe, and raise any you dispute in writing.
• Check that the new firm has everything it needs before the next deadline.

Professional clearance is a step between accountants that comes from the professional bodies' ethical rules rather than from tax law. AAT describes it as a safeguarding mechanism for accountants to find out if there is any particular reason they should not take on a new client, and says the request is sent to the client's previous accountant so the new one can obtain accounting and tax documents. AAT's Code of Professional Ethics sets out the principles for its members.

Your permission matters. AAT says the client's permission needs to be obtained, preferably in writing, before the existing accountant discusses the client's affairs. ICAS describes the same step from the other side, telling an outgoing accountant to answer such requests promptly, assuming it has the client's permission to respond. If you want the move to go quickly, tell your current accountant that you have given that permission.

Many of the documents an accountant holds for you are yours. AAT's article on professional clearance says documents belong to the client, while accepting there is a fine line between what belongs to the client and what belongs to the accountant, and says withholding documents for petty reasons is not acceptable. ICAS tells its members that the new accountant is entitled to be given any documents which belong to the client, but also that an outgoing accountant may have the right to withhold such records until fees are paid, and that the rules on document ownership are not straightforward. ACCA's guidance on corporate clients says non-payment of fees is not an acceptable reason for withholding information.

If you disagree with a final bill, put your reasons in writing and try to resolve it directly. AAT, for example, expects you to give its licensed member a chance to resolve a complaint first, and says it will not investigate complaints about fee disputes. Our guide to questions to ask an accountant suggests ways to avoid fee surprises with the new firm.

HMRC deals with whichever agent you have authorised. GOV.UK says that if you want to change the tax agent you have authorised, you must submit a new authorisation request, and that any new authority received will replace any existing authority. Depending on the tax, this is done through an online service or your business tax account, or with form 64-8. If you simply want to stop an agent acting for you, you can remove their authorisation online through your business tax account or personal tax account.

Whoever is authorised, you remain legally responsible for your own tax. If you would like help finding a new accountant, we read every enquiry and, where we can, we will put you in touch with a local accountant. You can see how it works before you write to us.