It is simpler than most people expect, it is not rude, and you do not have to wait until the year end. Here is the whole process, including who writes what to whom.
You do not have to wait for the year end. A change at year end or at the end of a VAT quarter is tidier, because there's a natural cut-off. But there's no rule. If the current arrangement isn't working, waiting nine more months makes the handover harder, not easier — there's simply more unfinished work to pass across.
You do not have to explain yourself. Changing accountants is routine. Firms do it constantly, in both directions, and the professional bodies have a defined process precisely because it's so normal. A short written note is enough.
Look for the notice period and how fees are billed — monthly in advance, in arrears, or annually. Notice is commonly one to three months. If you pay annually in advance, check what happens to the unused portion.
Agree the scope and fee, sign the new engagement letter, and complete their anti-money laundering identity checks. Doing this before you give notice avoids a gap where nobody is responsible for your VAT return.
Short and factual. Email is normally fine unless the engagement letter says otherwise. Keep a copy.
Your new accountant writes to the outgoing firm asking whether there's any professional reason not to accept the appointment, and requesting handover information. You don't write this or chase it — though you may be asked to authorise the old firm to respond.
Your books and records are yours. The outgoing firm passes over what's needed to continue — trial balance, last accounts, tax computations, payroll data, VAT workings. Their own working papers belong to them.
Re-invite advisers on Xero or transfer the subscription, then update HMRC agent authorisations for VAT and PAYE. This is the part that usually takes longest, so start it early.
People get stuck here, so here's the whole thing. It does not need to be longer than this.
No reason, no criticism, no negotiation. The offer to settle final fees promptly is the useful line — it removes the most common cause of a slow handover.
Your own books and records belong to you and should be returned. A firm's own working papers belong to the firm. Where fees are genuinely outstanding, some firms may exercise a lien over documents — which is why settling the final invoice usually makes everything else straightforward, even when the relationship has ended badly.
Typically two to four weeks from appointment to full handover. New engagement paperwork and AML checks are usually a day or two. Professional clearance depends on how quickly the outgoing firm replies. HMRC agent authorisations can be the slow part.
The most common reason people change is not price — it's that they only hear from their accountant once a year, long after the year they're being told about. If that's the reason, check the replacement actually offers something different:
That last one matters. Bookkeeping, management accounts and tax are often different services from different firms, so make sure you know what you're buying. Our bookkeeping prices guide sets out what UK firms typically charge and what's normally included.
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