The steps
- Agree the work. Your new accountant confirms what you need, the fee and when work will start, in an engagement letter.
- Professional clearance. With your permission, the new accountant writes to your existing accountant to ask whether there is any professional reason they should not act. Professional bodies expect this for recurring work, and a new accountant should not proceed if permission to contact the existing one is refused.
- Handover information. Your previous accountant provides the information needed to carry on, such as the last accounts, tax computations and details of any open matters. Your own books and records should be returned to you.
- Authorise your new agent with HMRC, usually online, or on form 64-8 where online authorisation is not possible, and, for a company, update Companies House filing arrangements.
Outstanding fees
If you owe fees to your previous accountant, it is best to settle or agree them before you move. Professional rules allow an accountant to hold on to certain documents while fees remain unpaid, which can delay the handover.
When to switch
The cleanest time is soon after a year end, before work on the next accounts or tax return has started. You can switch at any time, but try to avoid the weeks immediately before a filing deadline.
What to have ready
- Your most recent accounts and tax returns
- Your Unique Taxpayer Reference and, for a company, its company number and authentication code (share these once the engagement is agreed, not through a website form)
- Details of any open correspondence with HMRC
- Access to your bookkeeping software, if you use it
Thinking of moving to Anewthing? Get in touch and the handover can be handled for you.
Sources
This article is general guidance and not advice for your circumstances.
