How to Switch Your Accountant as a Small Business in the UK

Changing accountants might sound like a big job, especially when you’re busy running your own business. But it doesn’t have to be stressful or confusing. In fact, if your current accountant isn’t giving you the service, support or value you need, switching could be one of the best decisions you make for your business.

Whether they’re slow to reply, too expensive, or just not the right fit anymore, there are plenty of good reasons to make a change. So, let’s walk through how to switch your accountant without the headache.

Why you might want to switch accountants

First things first — why would you even want to change accountants? Here are a few common reasons small businesses in the UK think about switching:

• They’re slow to respond: You ask a question and wait days (or weeks) for a reply. Not ideal when you’ve got a tax deadline coming up.
• You’re paying too much: Fees keep going up, but you’re not seeing any extra value.
• They don’t understand your business: Maybe they’re not familiar with your industry, or they don’t offer advice tailored to your needs.
• You’ve outgrown them: Your business is growing, but they’re stuck doing the basics. You need more support now.
• They’re still stuck in the past: If they don’t use modern tools like cloud accounting software, you could be missing out on simpler ways to work.

If any of that sounds familiar, it might be time to make a change. Don’t feel bad about it — accountants are providing a service. If it’s not working, you have every right to find someone better suited to your business.

Is it hard to change accountants?

Not really! A lot of people worry that switching will be a massive hassle, but it’s usually quite straightforward. The new accountant does most of the hard work for you. You won’t need to dig through all your paperwork or call HMRC fifty times. Most of it happens behind the scenes.

The key is to pick the right new accountant and follow a few simple steps. Let’s go through them one by one.

Step 1: Find a new accountant

Before you leave your current accountant, it’s a good idea to line up a new one first. That way, there’s no gap in service and no missed deadlines.

Here’s what to look for when choosing a new accountant:

• Experience with small businesses: They should know what it’s like to run a small company, and the challenges that come with it.
• Good communication: Do they respond quickly? Are they happy to explain things in plain English?
• Clear pricing: You should know exactly what you’re paying for. Avoid vague or surprise fees.
• Use of technology: Can they work with cloud accounting tools like Xero, QuickBooks or FreeAgent?
• Friendly and approachable: You should feel comfortable asking questions without being made to feel silly.

It’s a good idea to chat to a few accountants before you decide. Most offer a free consultation or discovery call — use that time to ask questions and see if you get on with them (our 9 tips to find the right accountant may be helpful).  You can find details of selected accountants in our Accountants Directory, or, if you are looking for a larger list at the Local Accoutants Directory that has a collection of accountants across the UK.

Step 2: Let your new accountant handle the switch

Once you’ve chosen your new accountant, they’ll handle most of the switch for you. It usually works like this:

1. You give them permission to contact your old accountant.
2. They send what’s called a “professional clearance letter”. This is a polite request for your old accountant to send over the necessary info.
3. Your old accountant replies, and passes over things like your tax records, working papers and accounting software access.

In most cases, accountants are professional and cooperative during the switch. It’s part of their job, and they’ll usually respond quickly. If there are any delays, your new accountant should keep you updated and chase things up if needed.

Step 3: Inform your old accountant

While your new accountant handles the technical side, you’ll still need to tell your old accountant you’re moving on. A short and polite email is usually enough. You don’t have to explain your reasons unless you want to.

Here’s a simple example:

Dear [Accountant’s Name],

I’m writing to let you know that I’ve decided to move my accounting services to a new provider, [New Accountant’s Name]. My new accountant will be in touch shortly to arrange the handover. Thanks for your support so far.

Best regards,
[Your Name]

If you’re still in a contract or you’ve paid upfront, check your agreement for any notice period or refund terms. Most accountants are happy to wrap things up cleanly, but it’s worth double-checking just in case.

Step 4: Authorise your new accountant with HMRC

Your new accountant will also need to be authorised to act on your behalf with HMRC. This just means they can talk to HMRC for you about things like VAT, PAYE, or Corporation Tax.

This is usually done online. HMRC will send you an authorisation code in the post, and you just need to give that code to your new accountant. Once it’s all set up, they can start acting for you officially.

Step 5: Get to know your new accountant

Once everything is handed over, it’s time to start fresh with your new accountant. Book in a quick chat to go over your business, your goals, and any concerns you’ve got.

It’s also a great time to:

• Make sure they’ve got all the right logins (e.g. your cloud accounting software)
• Tell them about any upcoming deadlines or projects
• Agree how often you’ll check in (monthly? quarterly?)
• Ask how they prefer to be contacted — email, phone, messaging?

Good accountants want to build a long-term relationship with you. So don’t be afraid to ask questions, set expectations, and work together to make life easier.

What if my old accountant is being awkward?

Sometimes, an old accountant might be slow to respond or drag their feet. While most are professional, there are rare cases where things don’t go smoothly.

If this happens, don’t panic. Your new accountant should keep records of all communication and will follow up on your behalf. If necessary, you can remind your old accountant that they’re ethically and professionally obliged to provide the info.

Worst case, if they completely refuse or disappear, you can raise a complaint with their professional body (like ACCA, ICAEW or AAT), if they are a member. But usually it won’t come to that.

When’s the best time to switch accountants?

You can switch accountants at any time, but some moments are better than others. Here are a few tips:

• After your year-end accounts are done: That way, your old accountant finishes the last job, and your new one gets a clean start.
• Before the next VAT or tax return is due: Gives your new accountant time to get up to speed.
• When your current contract ends: If you’re tied in, switching at the end can avoid extra fees.

But don’t wait forever. If your current accountant isn’t helping your business, the sooner you switch, the better.

Can I switch if I’m a sole trader or freelancer?

Absolutely. Whether you’re a sole trader, freelancer, or limited company, you’ve got the right to change accountants. The process is the same either way — find a new one, and they’ll guide you through the rest.

What about Making Tax Digital?

If you’re VAT registered or soon will be, you need to follow HMRC’s Making Tax Digital (MTD) rules. That means using approved software to keep records and submit returns.

If your current accountant isn’t helping you get MTD-ready, that’s another reason to consider switching. Your new accountant should be up to speed and able to get you set up quickly.

Final thoughts

Switching accountants might feel a bit awkward or daunting, but it really doesn’t have to be. With the right new accountant in place, most of the process is handled for you — and you’ll be left wondering why you didn’t do it sooner.

Remember, your accountant works for you. You deserve someone who understands your business, keeps you informed, and gives you peace of mind. If you’re not getting that right now, it’s okay to make a change.

Take your time, choose carefully, and soon you’ll have an accountant who feels like a proper part of your team. One less thing to stress about — and more time to focus on growing your business.