Should I switch accountants mid-year? How switching works

Yes, you can change accountants at any point in the year. There is no rule that says you have to wait for your year end, and for most small businesses the move takes a few weeks rather than months. What matters is choosing a sensible moment, giving your new accountant what they need, and making sure nothing falls between the two firms.

Most people don't switch because of one big mistake. It is usually a pattern: - You only hear from your accountant when a deadline is close, or when they need something from you. - Questions take days to answer, or you speak to someone new each time. - You get the year-end accounts, but nothing during the year that helps you run the business. - Fees arrive without warning, or you are not sure what you are paying for. - The business has grown and you now need monthly figures, a cash flow forecast or help talking to a bank or investors. If several of these sound familiar, read our guide to [the signs you have outgrown your current setup](/what-is-a-finance-function).

Usually not. Your new accountant simply picks up from wherever things are. A few timing points help: - **Avoid the last few weeks before a filing deadline.** If your accounts or tax return are almost due, it is often simplest to let the current firm finish that job and move straight after. - **Straight after a filing is ideal.** Once the accounts, company tax return or VAT return have gone in, there is a clean point to hand over from. - **The start of a VAT quarter or a payroll month** is a natural cut-off for bookkeeping, VAT and payroll. - **If deadlines are close and your accountant has gone quiet**, don't wait. A new accountant can usually step in, but the earlier they know, the more options there are. Private limited companies normally have nine months from their year end to file accounts at Companies House and twelve months to file the company tax return, so there is usually time to plan the handover. Our [CT600 guide](/ct600-guidance) explains the company tax deadlines in more detail.

**1. Agree terms with your new accountant.** You should get a clear engagement letter setting out what they will do, what it costs and when work starts. Read the notice period in your current engagement letter too. **2. Tell your current accountant.** A short email is enough. Say you are moving and from when, and ask them to deal with any work in progress up to that date. **3. Professional clearance.** Your new accountant writes to your old one, with your permission. This is standard practice for members of the main accountancy bodies. It asks whether there is any professional reason they should not act for you and requests the information needed to take over, such as previous accounts, tax returns and balances. It is routine and is not a reflection on you. **4. HMRC authorisation.** Your new accountant needs authority to deal with HMRC for each tax they handle, such as corporation tax, VAT, PAYE and Self Assessment. Most authorisations are now done online; where that is not possible, HMRC's form 64-8 is used. You can also remove your old accountant's authority. See GOV.UK's guidance on [authorising an agent to deal with your tax affairs](https://www.gov.uk/guidance/authorising-an-agent-to-deal-with-your-tax-affairs). **5. Companies House.** If your old accountant files for you, they may hold your company authentication code. Ask for it, or request a new one to be sent to your registered office. If they provide your registered office address, arrange a new one. **6. Software and records.** If you use cloud accounting software such as Xero, make sure the subscription and ownership sit with you, then give your new accountant access and remove the old firm's. Your business records belong to you, so ask for copies of anything the old firm holds. **7. Settle the final bill.** Agree what work is outstanding and what it costs, so there are no surprises at the end.

- Your last set of accounts and company tax return - Access to your bookkeeping software or your records for the current year - Your company's Unique Taxpayer Reference, VAT number and PAYE reference - Details of any HMRC correspondence, payment plans or open queries - Your director's loan account balance and any personal tax return details, if they are taking those on

Not usually. There can be a one-off cost if records need bringing up to date or software needs setting up properly, and a good accountant will tell you about that before starting. Ask for a fixed fee so you know the cost up front.

We use the latest tools to make switching as seamless as possible. HMRC authorisations are done online, your books move onto cloud accounting software such as Xero, and documents are shared securely online rather than by post or email attachment. In practice, that means less paperwork for you and a faster handover. We do the professional clearance, HMRC authorisations and software handover for you. You agree a fixed monthly fee before we start, and you have a named contact from day one. If the business needs more than year-end compliance, we can add monthly [bookkeeping](/bookkeeping) and management accounts as part of a complete [finance function](/finance-function). If you are not sure which kind of support you need, read [bookkeeper vs accountant](/bookkeeper-vs-accountant-services).

Thinking about moving? [Request a call](/contact) and we will tell you what is involved for your business and what it would cost.