Thinking about changing accountants but unsure where to start? Switching to a new accountant can save you time, money, and stress—if you know the right process. From sole traders to limited companies, UK businesses can change accountants at any stage. This guide covers everything from paperwork and costs to HMRC authorisation and industry-specific tips. Written and reviewed by ICAEW and AAT qualified accountants at Tax Return Accountants, you’ll get clear, practical advice for 2025/26 and 2026/27. By the end, you’ll know exactly how to make the switch smoothly, avoid common pitfalls, and ensure your tax affairs stay on track.

Can I Change Accountants? How to Switch UK Accountants Easily

Changing accountants in the UK is simpler than most people realise. This article explains the process, costs, paperwork, and timing for sole traders, limited companies, and landlords, with practical advice you won’t find elsewhere.

Can I Change Accountants in the UK? What You Need to Know

You can change accountants in the UK whenever you wish, whether you’re a sole trader, landlord, or limited company director. There’s no legal barrier, and UK regulatory bodies such as the Institute of Chartered Accountants in England and Wales (ICAEW) and the Association of Chartered Certified Accountants (ACCA) support your right to choose your adviser. HM Revenue & Customs (HMRC) does not require direct notification when you switch, but you must update your agent authorisations so your new accountant can act on your behalf. This is typically done via an online agent authorisation or a paper 64-8 form.

Changing accountants mid-year is perfectly acceptable. While many clients assume they must wait until their financial year-end, this is not true. The best time often depends on your tax deadlines, but you are free to switch at any point. The key is to ensure a full and accurate handover of records and responsibilities so that you don’t miss any statutory filing obligations.

For example, one Leicester-based retailer changed accountants in November 2025—midway through their accounting year. As long as all agent authorities were updated and professional clearance was obtained, their new adviser could immediately take over payroll, VAT, and Corporation Tax filings without disruption.

Most people believe HMRC must be informed directly when changing accountants. Actually, only agent authorisation updates are required—saving clients unnecessary admin and confusion.

If you handle Self Assessment, our Self Assessment Service ensures all agent authorities and tax deadlines are managed end-to-end.

Is it legal and allowed?

Yes, you have the legal right to appoint or remove an accountant at any time. No contract or engagement letter can remove this right.

Do I need to notify HMRC?

No, but you must update agent authorisations so your new accountant can access your HMRC records.

Changing accountants mid-year

Switching mid-year is common. Just ensure all records and agent authorities are transferred promptly to avoid missed deadlines.

Top Reasons for Changing Accountant for Small Business

Many small businesses outgrow their accountant’s expertise or experience service issues that prompt a change.

• Poor or slow communication, especially around deadlines or HMRC queries
• Lack of proactive tax planning or missed reliefs
• Fee increases without added value
• Failure to support Making Tax Digital (MTD) or cloud software like Xero, QuickBooks, FreeAgent, or Sage Accounting
• Limited industry knowledge or inability to advise on sector-specific issues
• Missed statutory deadlines, risking HMRC penalties

It’s not just about price—quality of advice and regulatory protection matter. In 2026, 62% of UK SMEs use an external accountant (source: ONS, ICAEW), but only 68% check if their adviser is actually regulated.

Below is a comparison of common triggers for changing accountant for small business, and how your current service might stack up against best practice:

One Nottingham-based contractor switched after their old accountant missed a VAT deadline, resulting in a £200 penalty. After moving to Tax Return Accountants, deadlines were met using automated reminders and cloud-based software, saving both time and money.

For transparent fee comparisons, see our Accountant Pricing page for up-to-date ranges.

When your business outgrows your accountant

Look for an adviser who can scale with your needs, offer sector-specific support, and provide timely, proactive advice.

Common triggers for switching

Missed deadlines, poor communication, and lack of digital expertise are the most frequent reasons clients seek new support.

Professional standards and expectations

Regulated accountants must adhere to strict codes of conduct and hold insurance—always verify before switching.

Step-by-Step Process of Changing Accountants

Changing accountants for small business or limited company clients follows the same core process, but limited companies must also update Companies House and payroll/VAT agents. The most common paperwork needed to change accountant includes:

1. Unique Taxpayer Reference (UTR) and National Insurance number
2. Copy of last tax return and annual accounts
3. Companies House authentication code (if a company)
4. VAT and payroll records (if registered)
5. Agent authorisation form (64-8 or online)

Professional clearance is a formal handover between accountants, where your new adviser requests all relevant records and checks for any outstanding issues. This protects you from missing information or unresolved HMRC queries.

Most handovers take 1-4 weeks, depending on cooperation from your outgoing accountant. If you need urgent support—such as during an HMRC enquiry—an experienced adviser can prioritise the transfer and liaise directly with HMRC to avoid disruption.

If you run a company, our Corporation Tax Service covers agent authorisation and Companies House filings in full.

What paperwork is needed to change accountant?

UTR, NI, tax returns, Companies House codes, VAT, and payroll records—plus agent authorisation forms.

What is professional clearance?

A formal request for records and confirmation of any outstanding issues between your old and new accountant.

How long does the process take?

Usually 1-4 weeks, but urgent cases can be faster if both parties cooperate.

Costs of Changing Accountants and Fee Comparison

Imagine a Manchester-based sole trader who wants to reduce fees and improve tax support. They’re worried about hidden costs when switching accountants, but most firms do not charge to leave, and new adviser setup fees are often transparent if you ask up front.

• Most accountants do not charge exit fees, but always check your engagement letter for any notice period or outstanding invoices
• New accountant setup fees range from £100-£800+ depending on complexity and service level
• DIY transition is possible, but risk of missed deadlines or errors is high
• Professional accountants offer regulated support, proactive tax planning, and lower error risk
• Fee structures vary: always request a clear quote and compare what’s included

Below is a comparison of DIY versus professional support for changing accountants, including typical costs:

For example, a Birmingham ecommerce seller tried to handle the handover themselves, only to miss a VAT deadline and incur a £200 penalty. By switching to a professional accountant, they reduced their admin time from 12 hours to just 2 hours and avoided further fines.

Typical fee ranges for 2026/27:

• Simple employee return: £100–£250
• Sole trader: £150–£500+
• Landlord: £150–£600+
• Company director: £200–£800+

Always compare service levels and regulatory status, not just price. For regulated advisers, check AAT’s directory.

How to Switch Accountants UK: Timeline, Best Time, and HMRC Steps

Many clients ask, “What’s the best time to change accountant UK?” There is no statutory deadline—you can switch at any point. However, it’s often easier just after submitting year-end accounts or tax returns. This avoids confusion over which adviser is responsible for upcoming filings and makes the accounting transition smoother.

Switching accountants mid year is increasingly common. If you are part way through a financial year, simply ensure all records and agent authorities are up to date and clarify who is handling which filings. For example, if you filed your 2025/26 Self Assessment in January 2027, switching in February allows your new adviser to handle the next cycle from start to finish.

Remember: Changing accountants does not pause your tax deadlines. Self Assessment, Corporation Tax, VAT, and Payroll filings remain due as normal. Missing these can result in penalties of £100–£1,000+ depending on the tax type.

Here’s a quick checklist for a smooth switch:

• Confirm all fees and notice periods with your outgoing accountant
• Transfer all tax and Companies House records
• Update agent authorities for Self Assessment, VAT, PAYE, and Corporation Tax
• Agree who will file any returns due during the transition
• Check your new accountant is MTD-ready and regulated

If you’re moving to digital records, our Making Tax Digital Service can guide you through the software setup and HMRC integration.

Changing Accountants for Limited Companies and Sole Traders: Special Considerations

Changing accountants for limited company clients involves extra regulatory steps. Companies must update Companies House, ensure all statutory filings are up to date, and transfer payroll and VAT agent authorities. Sole traders have a simpler process but must still update Self Assessment and VAT records as needed.

For limited companies, the process of changing accountants includes updating the company’s registered office address (if it changes), providing the Companies House authentication code, and ensuring all annual accounts and confirmation statements are filed on time. Your new accountant must also be authorised for Corporation Tax, VAT, and Payroll via HMRC’s agent authorisation system.

One client in the East Midlands, a construction company, failed to update their payroll agent when switching accountants. This led to a missed RTI submission and a £100 penalty from HMRC. After resolving the issue, they set up a checklist for future transitions, including agent authorities for each tax type and Companies House filings.

Sole traders need to focus on Self Assessment, VAT, and—if employing staff—PAYE agent authorisations. For both business types, always confirm who is responsible for any filings due during the handover period.

If you operate a company, our Limited Company Accountants service covers all regulatory filings and agent changes.

Company secretarial and Companies House

Update registered office, directors, and authentication codes with Companies House when changing accountants.

Payroll, VAT and MTD handovers

Ensure agent authorities for payroll, VAT, and digital filing are transferred promptly to avoid missed deadlines.

Common pitfalls for limited companies

Not updating all authorities or missing a statutory filing can result in penalties—always double-check responsibilities during the handover.

What to Ask a New Accountant Before You Switch

Are you asking the right questions before you switch?

• Are you regulated by ICAEW, ACCA, or AAT?
• Do you have professional indemnity insurance?
• Can you provide an engagement letter detailing services and fees?
• What experience do you have in my industry (e.g. contractor, landlord, ecommerce)?
• Are you certified in Xero, QuickBooks, FreeAgent, or Sage Accounting?
• How do you handle HMRC agent authorisation and digital filing?

Below is a quick verification table to help you check credentials before you commit:

For help with ongoing records, our Bookkeeping Service ensures your new accountant receives up-to-date, accurate data.

Changing Accountants: FAQs, Common Mistakes, and Real-World Examples

Imagine a landlord in London who changed accountants after poor communication during a tax enquiry. The new adviser secured professional clearance, filed the return on time, and saved £200 in tax—while avoiding a £100 HMRC penalty. The outcome: improved tax efficiency and proactive support going forward.

If your old accountant is uncooperative, your new adviser can still request records directly from HMRC and proceed with agent authorisation. Don’t let delays stop you from making the change.

For landlord support, see our Landlord Accountants service.

How to Find an Accountant Near You

Finding a qualified “accountant near me” is simple with the right checks. Whether you’re in Leicester, London, Birmingham, Manchester, Nottingham, or the wider East Midlands, always look for a local accountant who is ICAEW, ACCA, or AAT regulated. This ensures you’re protected and receive up-to-date advice.

In Leicester, Tax Return Accountants is based at 6 Egginton Street, LE5 5BA, providing specialist support for small businesses and landlords. In London, look for a chartered accountant near you with experience in your sector. Birmingham businesses often need MTD-ready advice—choose an accountant in Birmingham who offers Xero or QuickBooks support. Manchester and Nottingham clients benefit from local knowledge and face-to-face consultations, while East Midlands businesses can access our UK-wide digital service with the same regulatory guarantees.

Always check Google Reviews and regulatory status before making a decision. For local support, contact Tax Return Accountants, 6 Egginton Street, Leicester, LE5 5BA, or call 0116 4030595.

For more on pricing, see our Accountant Pricing page.

UK Accountancy Statistics

• Over 93,000 chartered accountants in the UK (ICAEW, ACCA, CIMA, AAT)
• 1.5 million+ businesses enrolled in Making Tax Digital
• 800,000+ HMRC late filing penalties issued in 2024/25
• 62% of UK SMEs use an external accountant

These figures highlight why choosing a regulated, experienced accountant is critical for tax compliance and peace of mind.

5-Step Accountant Selection Process

1. Identify your needs: Decide if you need specialist support (e.g. VAT, payroll, MTD, sector knowledge).
2. Shortlist 3 accountants: Compare local and online options, check reviews and regulatory status.
3. Verify regulation: Use ICAEW, ACCA, or AAT registers to confirm credentials.
4. Compare pricing: Request transparent quotes and check for hidden fees.
5. Book consultation: Meet or call each candidate before deciding.

Following these steps helps ensure you choose an adviser who fits your business and compliance needs.

How to Verify an Accountant

Never commit until you’ve checked all six areas above.

Industry-Specific Guidance: Contractors, Freelancers, Landlords, and More

Contractor Accountant: What You Need to Know

Contractors must ensure their new adviser understands IR35, off-payroll rules, and sector-specific expenses. Always check for experience with umbrella company setups and contract reviews.

Freelancer Accountant: Digital and Flexible Support

Freelancers benefit from cloud-based software and flexible support. Ask about Xero or FreeAgent certification, and ensure your adviser is experienced in digital tax filing and creative sector deductions.

Landlord Accountant: Property Tax Records

Landlords must keep accurate records of rental income, allowable expenses, and mortgage interest. Choose an accountant with property tax expertise and experience with HMRC’s Let Property Campaign.

Ecommerce Accountant: VAT and International Sales

Ecommerce sellers need advisers who understand VAT on digital sales, EU OSS/IOSS, and marketplace reporting. Cloud software integration is a must for real-time reporting.

Construction Accountant: CIS and Payroll

Construction businesses face unique CIS rules and payroll complexities. Check for experience with CIS returns and compliance with HMRC’s Construction Industry Scheme.

Healthcare Accountant: NHS and Locum Tax

Healthcare professionals should seek accountants who understand NHS pensions, locum invoicing, and allowable expenses for medical professionals.

Taxi Driver Accountant: Mileage and Allowances

Taxi drivers need support with mileage logs, allowable expenses, and cashflow management. Choose an adviser with expertise in transport sector deductions.

Software Comparison: Xero, QuickBooks, FreeAgent, Sage Accounting

Choosing the right software is critical when changing accountants. Here’s how the top options compare for MTD-readiness and features:

All four are MTD-compliant and suitable for UK tax filing. Your accountant should be certified in at least one of these platforms for efficient digital handover.

Online vs Local Accountant: Which Is Right for You?

Online accountants offer flexibility and lower costs, but local advisers provide face-to-face support and local knowledge. Tax Return Accountants offers both options with full regulatory protection.

Decision Tree: What Do You Need? Who to Speak To?

Always choose a regulated adviser for tax, VAT, and company filings. For pensions and investments, only use FCA-authorised professionals.

Why Choose Tax Return Accountants?

Tax Return Accountants is ICAEW regulated and AAT accredited, offering fixed fees from £7.50/month. We are Making Tax Digital compliant, provide a dedicated accountant for every client, and serve both local and UK-wide businesses from our Leicester base. Book your free initial consultation today—call 0116 4030595 or email info@taxreturnaccountants.uk.

• ICAEW regulated
• AAT accredited
• Fixed fees
• MTD support
• Dedicated accountant
• UK-wide service
• Leicester based
• Free initial consultation