Switching Accountants Mid-Year | SAS Yorkshire Accountants

Many business owners remain with an accountant they have outgrown because they believe changing midway through the financial year will create confusion, missed deadlines or duplicated work.

They may be dissatisfied with slow replies, unexpected fees or a lack of proactive advice, yet decide to wait until the annual accounts have been completed. Unfortunately, that can mean spending several more months with a service that no longer supports the business properly.

The truth is that you can normally switch accountant UK at any point during the year. You do not have to wait for the end of your company’s accounting period, the tax year or the completion of your next VAT return.

With a properly managed handover, your records, tax history, accounting software and upcoming deadlines can be transferred securely. The key is agreeing who will handle each responsibility during the transition so nothing is forgotten.

Are You Allowed to Change Accountants Mid-Year?

Yes. A business owner or individual taxpayer is generally free to choose their accountant and change advisers when they wish.

Your outgoing accountant does not have the authority to decide whether the new accountant is allowed to act. They may need to provide relevant information and complete a professional handover, but this process is not a request for permission.

ICAEW’s change of professional appointment guidance confirms that clients have the right to change accountants. It also explains that “professional clearance” is a commonly used but misleading expression because the previous accountant cannot grant or withhold permission for the new appointment.

You should nevertheless review the engagement letter signed with the existing accountant. It may contain a notice period, outstanding payment obligations or specific procedures for ending the engagement.

Why Businesses Delay Switching

The most common concern is disruption. Business owners worry that records will be lost, both accountants will submit the same return or neither adviser will accept responsibility for an approaching deadline.

Some believe they must wait until the existing accountant completes the annual accounts because moving midway through the year would force the new firm to start everything again. Others fear an uncomfortable conversation with someone they have worked with for several years.

These concerns are understandable, but they can usually be managed through a documented transition plan. The new accountant should establish what has already been completed, what remains outstanding and which deadlines fall during the handover period.

A properly organised transfer should feel like a controlled continuation—not the beginning of the accounting year again.

Signs It May Be Time to Change Your Accountant

Slow communication is one of the clearest warning signs. If routine questions remain unanswered for weeks or you cannot obtain guidance before making an important decision, the relationship may no longer be working.

Another sign is discovering tax liabilities shortly before payment deadlines, despite providing records throughout the year. A good accountant cannot remove a genuine liability, but regular forecasts should reduce unpleasant surprises.

You may also need a new accountant if the business has become more complex. A sole trader who has formed a limited company, registered for VAT, employed staff or expanded into online and overseas sales may now require services that the original accountant does not provide.

Fees should also be transparent. A business owner should understand what is included, which services cost extra and when charges are likely to arise.

The decision does not need to be based on conflict. Sometimes the business has simply developed beyond the services, systems or capacity of the existing firm.

Choose the New Accountant Before Ending the Existing Relationship

Where possible, select your new accountant before formally ending the previous engagement.

The incoming firm should review your business structure, accounting software, tax registrations and upcoming deadlines. It should explain the services it will provide, the information required and how the handover will be managed.

You should receive a clear engagement letter covering responsibilities, fees, communication arrangements and the work the accountant will perform.

This initial review is also an opportunity to identify unresolved matters. There may be an overdue return, an approaching VAT deadline, an open HMRC enquiry or an outstanding Companies House filing that requires immediate attention.

Choosing the replacement first avoids a period in which nobody is clearly responsible for the company’s tax affairs.

Notify Your Existing Accountant Clearly

Once the new appointment has been agreed, inform the existing accountant in writing.

The message should confirm that you are ending the engagement, name the new firm and authorise the release of relevant professional information and accounting records. Ask the outgoing accountant to confirm which work has been completed, what remains outstanding and whether any fees are due.

A professional message does not need to contain a lengthy criticism of the previous service. A simple, clear instruction is usually sufficient.

The outgoing accountant may issue a disengagement letter setting out the work they will no longer perform and the effective end date of their responsibility. Read this carefully and send it to the incoming accountant if necessary.

What Is Professional Clearance?

The incoming accountant will normally contact the outgoing accountant through a process commonly known as professional clearance or professional enquiry.

The purpose is not to ask whether the old accountant approves of the change. It allows the new adviser to ask whether there are professional matters they should know before accepting the appointment.

The incoming accountant may also request accounting records, previous tax returns, computations and details of outstanding work.

The outgoing accountant will normally need your authority before disclosing confidential information. Providing clear written consent at the beginning can therefore prevent unnecessary delays.

ICAEW guidance for outgoing accountants states that client consent is usually required before a substantive response can be given.

What Information Should Be Transferred?

The records required will depend on whether you are a sole trader, limited company, landlord, employer or VAT-registered business.

A limited company handover may include statutory accounts, Company Tax Returns, Corporation Tax calculations, trial balances, general ledgers, fixed-asset registers, director’s loan accounts and dividend records.

A VAT-registered business may require copies of VAT returns, working papers, VAT scheme details, digital bookkeeping records and information about outstanding adjustments.

Where payroll is involved, the new accountant may need employee details, pay history, tax codes, pension information, benefits and records of submissions already made to HMRC.

Self Assessment clients may need previous tax returns, calculations, loss schedules, payment-on-account details and information about property, dividends or other sources of income.

Not every document within an accountant’s file necessarily belongs to the client. Certain internal working papers may remain the accountant’s property. However, the incoming adviser should receive enough relevant information to continue the work accurately.

What If You Still Owe the Previous Accountant Money?

Outstanding fees do not generally allow an accountant to withhold professional clearance or refuse to confirm relevant professional matters.

However, unpaid invoices can complicate the transfer of certain records. Depending on the engagement terms, ownership of the documents and the circumstances, the outgoing accountant may claim a right to retain some records until payment is made.

ICAEW’s professional enquiry guidance states that outstanding fees are not a reason to refuse a professional enquiry response, although the accountant may mention those fees and may have limited rights concerning particular records.

The cleanest approach is to request a final statement, challenge any genuinely disputed charges promptly and settle valid invoices. This removes a common cause of delay and allows the relationship to end professionally.

How HMRC Agent Authorisation Is Changed

Your new accountant will require HMRC authorisation for the taxes they will manage.

Authorisation may be needed separately for Self Assessment, Corporation Tax, PAYE, VAT, CIS and Making Tax Digital services. Appointing an accountant for one tax does not necessarily give them access to every other part of your HMRC account.

Some authorisations can be completed through your business tax account. Others may use an online request, a digital handshake or an authorisation code sent by post.

HMRC’s business tax account guidance explains how businesses can add, view or change agents for supported services.

You can also remove the previous accountant’s authority. Do not share your Government Gateway credentials with either accountant. HMRC specifically states that an agent should use the formal authorisation process rather than signing in with the client’s details.

Agent authorisation does not transfer your legal responsibility. You remain responsible for ensuring returns and payments are made correctly and on time.

What Happens to Your Accounting Software?

If you use cloud accounting software, the handover may be as simple as providing the new accountant with appropriate adviser access and removing the former firm after the transition is complete.

Before changing access, confirm who owns the subscription and who controls the primary administrator account. Some businesses discover that their accountant created the subscription and that they do not hold full administrative access themselves.

Export and securely save the current accounting data, supporting documents, VAT returns and reports before making major changes. The new accountant should then review the chart of accounts, bank feeds, VAT settings and bookkeeping procedures.

If the new firm recommends different software, migration does not necessarily need to happen immediately. Changing accountant and changing software at the same time can be managed, but it requires a clear cut-off date and reconciliation of opening balances.

For businesses within Making Tax Digital, records must continue to meet the relevant digital-record and digital-link requirements throughout the transition.

Making Tax Digital Records Do Not Transfer Automatically

Changing an authorised agent does not automatically transfer every digital record held by the former accountant.

HMRC’s Making Tax Digital change guidance states that records from previous tax years are not automatically transferred between agents. The taxpayer must ensure that previous records remain securely accessible and that the new accountant can access the information required.

This is particularly important where the outgoing accountant has maintained the bookkeeping within their own software subscription.

Before access ends, obtain copies of the ledgers, transaction data, submitted returns and supporting documents. The new accountant should confirm that the records are complete before the previous software connection is removed.

Can You Change Accountants During a VAT Quarter?

Yes, but the responsibility for the next VAT return must be agreed clearly.

If the existing accountant has already completed most of the bookkeeping for the quarter, it may be practical for them to finish that particular return. Alternatively, the new accountant can take responsibility if the complete digital records and supporting information are transferred in time.

There is no universal rule that the old accountant must finish the quarter. The correct decision depends on the deadline, quality of the records and progress already made.

The business should obtain written confirmation of which firm will submit the return. Never assume the outgoing accountant will continue simply because the deadline falls shortly after their engagement ends.

Can You Change Accountants During Payroll?

Yes, although payroll transfers require careful timing because employees must continue to be paid correctly.

The incoming accountant will need accurate year-to-date pay figures, deductions, tax codes, National Insurance categories, pension details and information about statutory payments. It must also be clear who will make the next Full Payment Submission to HMRC.

The safest handover date is often immediately after a completed pay period. However, an urgent change can still be managed at another point if the payroll records are complete.

Employees should not experience any interruption simply because the business has changed accountants or payroll providers.

Can You Switch During an HMRC Enquiry?

You can change accountants while an HMRC compliance check or tax investigation is open.

The incoming accountant should receive the complete correspondence history, documents already submitted, calculations prepared and details of any agreed deadlines. Separate authorisation may be required for the new adviser to deal with the compliance check.

Changing during an enquiry may be sensible if the existing adviser lacks investigation experience or communication has broken down. However, the new accountant will need time to review the case before making further representations.

Do not remove the previous agent’s access until the new adviser confirms what records and correspondence have been secured.

How to Change Accountant With No Disruption

The objective is to change accountant no disruption to payroll, VAT returns, tax filings or everyday bookkeeping.

That requires an agreed handover date, a schedule of approaching deadlines and a written allocation of responsibilities. Each piece of work should have one clearly named owner during the transition.

Your new accountant should receive the opening balances, prior submissions and supporting records before taking responsibility. Software access should be tested rather than assumed, and HMRC authorisations should be completed as early as possible.

You should also retain your own copies of important documents. Although accountants can maintain records on your behalf, the business should never depend entirely on one external firm for access to its financial history.

Will Switching Create Duplicate Accountancy Fees?

Some overlap is possible, particularly if the outgoing accountant has already begun work that the new firm must review or complete.

Ask both firms to confirm what they will charge. The previous accountant should provide a final invoice and explain any work in progress. The incoming accountant should make clear whether onboarding, data correction, software migration or reviewing previous accounts carries an additional fee.

A short period of overlap can be worthwhile if it prevents lost information or a missed deadline. The important point is that the costs should be understood before the transfer begins.

Is the Year-End the Best Time to Switch?

The year-end can provide a natural cut-off, but it is not always the best time.

If service problems are affecting current decisions, waiting may expose the business to more risk. A company approaching its year-end may benefit from changing earlier so the new accountant can identify planning opportunities before the period closes.

Switching shortly after annual accounts have been completed can make the record transfer straightforward. However, a well-organised accountant should be able to take over at any stage of the cycle.

The best time is when the business has selected the right replacement and both parties can agree a controlled handover.

How SAS Yorkshire Makes Switching Straightforward

SAS Yorkshire helps businesses move accountants without allowing the transition to interfere with everyday operations.

The process begins with a review of your business structure, current accounting services, software and upcoming deadlines. This identifies urgent responsibilities before the previous engagement ends.

With your authority, SAS Yorkshire can contact the outgoing accountant, complete the professional enquiry process and request the records required to continue the work. The team can also help arrange HMRC authorisations for the relevant taxes and review the transferred bookkeeping data.

Any gaps, unreconciled balances or outstanding returns can be identified early. You will receive a clear explanation of what SAS Yorkshire will handle, what information is needed from you and when each deadline falls.

Whether you are a sole trader, landlord or limited company, the aim is to make the switch controlled, transparent and professionally managed.

A Better Accountant Can Change More Than Your Year-End

An accountant should not simply contact you once a year to request records and announce the tax bill. The right adviser should help you understand cash flow, tax obligations, business performance and important decisions before deadlines arrive.

If your current relationship is no longer providing that support, remaining with the firm out of fear of disruption rarely improves the situation.

You are not locked into an accountant until the end of the financial year. With a clear plan, secure record transfer and properly updated authorisations, changing midway through the year can be remarkably straightforward.

Contact SAS Yorkshire if you are considering changing accountants. The team can review your current position, manage the professional handover and help you switch with minimal disruption to your business.

Frequently Asked Questions

1. Can I switch accountants before my year-end accounts are completed?

Yes. You can normally switch at any time, including before the company year-end or while the annual accounts are being prepared. The two accountants must clarify what work has already been completed, what remains outstanding and who will meet each approaching deadline. There may be additional charges if the new firm must review or repeat unfinished work.

2. Does my current accountant have to approve the change?

No. The outgoing accountant does not have the authority to prevent you from appointing another adviser. The incoming firm will usually make a professional enquiry and request relevant records with your consent. This process allows the new accountant to understand the client relationship and outstanding matters; it is not a request for permission.

3. How long does it take to change accountants?

A straightforward handover may be completed relatively quickly, but timing depends on how promptly records are supplied, whether fees remain disputed and how many HMRC authorisations are needed. Authorisation codes sent by post can add time. Starting before an urgent VAT, payroll or tax deadline gives both firms more opportunity to complete the transfer safely.

4. Will switching accountants trigger an HMRC investigation?

Changing accountants does not itself automatically trigger an HMRC investigation. Businesses change advisers for many ordinary commercial reasons. However, a new accountant may identify historic errors or missing returns that need to be corrected. Addressing those issues properly is safer than leaving them unresolved.

5. What records should I keep when changing accountants?

Retain copies of annual accounts, tax returns, computations, VAT returns, payroll summaries, bookkeeping data, invoices, bank reconciliations and HMRC correspondence. If software is changing, export current and historical records before access is removed. Your new accountant can provide a tailored checklist based on your taxes, business structure and accounting systems.