A change accountant UK handover includes transferring relevant records, agreeing outstanding work and updating access and tax authorisations. Your new accountant should outline the items that they require, and you agree the timelines and permissions for them to contact you. Having a written handover plan helps avoid information loss and duplication of effort.
It is usually possible to change accountants within the year, subject to the deadlines, unfinished work and the conditions of engagement.
There’s no need to wait until the end of the year. However, the transition might be more difficult if key information is left behind with the departing firm if a quick change is made near the deadline.
First, list the services that you receive. Payroll, VAT returns, annual accounts and personal tax returns may be on different schedules.
For instance, your current accountant could finish off your current VAT declaration, and the new firm begin bookkeeping from the next month. This can be effective when the boundary is agreed upon by all.
Read your engagement letter to see what notice you are required to give, and what fees and arrangements are there for terminating the engagement. Seek clarification if responsibilities are unclear.
If you are looking for a comparison, our guide on how to choose the right UK accountant provides you with handy questions regarding communication, experience, and scope of services.
Select the replacement before the end of the essential support. Ensure that they can handle the work and deadlines that you have set.
The communication between the incoming and outgoing accountants with respect to the upcoming accountant change is typically a professional clearance letter. Rather, it’s a professional enquiry than permission to leave.
The new accountant follows up with the previous firm, with your permission, on issues that are a concern regarding the acceptance of the work. That enquiry is usually accompanied by a request for records.
The process can bring up unresolved issues, missing information or work still being done. Provides incoming firm with a clearer starting point. www.icaew.com
Does not automatically pass on access to accounting software or grant the new accountant access to deal with HMRC. Those will require further attention.
Inquire with the new company about what they require from you in order to begin an enquiry. Set up arrangements for follow-up in the event of delayed response.
Do not take silence as an indication that the information is passed. Ask for an update on what has been received and what is still missing and if there is any deadline enforced.
Have a numbered handover plan, agreed cut-off date. There should be a named person for each service to ensure that the task is completed.
1. What Should You Agree Upon with the New Firm?
Verify that work is included, fees, reporting time and start date. Address any missed deadlines, unanswered questions or documentation difficulties right away.
A lower monthly fee can include fewer services. Look at actual work, not just the headline price, including year-end accounts, tax returns or routine queries.
2. How Should You Notify Your Current Accountant?
If you are changing firms, inform them of the change in writing. Share information with incoming accountant and allow exchange of information.
Please ask for confirmation of work completed, work in progress, outstanding fees and upcoming deadlines. Save a copy of the letters.
3. Who Should Complete Outstanding Submissions?
Make sure each filing is allocated on its own. Do not expect the new accountant to have done anything because they’ve taken office.
Document the date of return, reporting period, deadline, and preparer/approver for the return. Include payroll and pension duties (if applicable).
4. What Should Be the Record-Sharing Process Between Firms?
Discuss a safe way to share information and list what documents are needed. Request that both firms make a distinction between final and draft records.
Double-check the transfer until attachments and exports are confirmed as opened.
5. What Should Be Done Following the Transfer?
Request that the new accountant verify balances at the start and find missing data.
Complete with written details of who is responsible for each service, and what access should be denied.
6. What Should Be Transferred to the Records?
The records required will be related to the business and services being transferred. A company with staff generally will require more comprehensive handovers than a sole trader with simple records.
Use this records checklist as a starting point:
Not everything in an accountant’s file necessarily belongs to the client. Ownership of working papers and rights of access will depend on the documents, engagement and applicable rules.
If there are any outstanding fees, this can make things complicated, too. In some circumstances, an accountant may have a right to retain particular records. Identify which documents are impacted and consult, rather than assume that all documents are immediately required to be made available.
The goal is to determine the new accountant’s needs and to address any spaces quickly.
Continuing bookkeeping services can help keep records organized following the transfer, which will lessen the reconstruction of old transactions.
HMRC authorisation and software permissions should be checked on an individual basis. You need to change the accountant listed in the contact and then move the contact to the new accountant.
Use HMRC’s advice to get an agent to look after your tax affairs. It will vary by the tax service and could require going online or completing form 64-8.
Check each relevant tax individually. Authorisation should not be presumed with one service including all tax issues relating to the company and the individual.
Do not provide personal sign-in details; use HMRC’s processes. Check if the previous agent’s power is to be revoked.
For accounting software systems, identify who is going to own the software, who will pay for it and if the new accountant will be using the same system.
When software is modified, ensure that historical transactions, attachments and auditing information remain available. Test for exports before cancellation of subscription.
Look into any other services connected too, like receipt capture software and payroll systems. Be careful with removing access too early, as this might frustrate unfinished work!
Our accountancy services and costs guide assists you to compare continuous support. Contact our accounting team if you are planning to move, what services you have and next deadlines.
Will I Be Able to Retain My Accounting History When I Switch?
Not necessarily. Your history could be saved in the current software, or information can be exported and/or provided on supporting documents. Before cancelling, review access and subscription ownership and attachment status. Seek verification from the new accountant that they have been able to use the information they have received.
Does Changing Accountants Extend My Filing Deadlines?
No. A change of adviser does not extend the filing or payment dates. Agree who will complete each outstanding task and provide the necessary information promptly. If the deadline is imminent, then put it on the handover plan, so that both firms will follow it.
Can My New Accountant Deal with the Previous Firm Directly?
Yes, typically with your consent. They may request the documents and data relevant to their case, make professional enquiries and clarify matters pending. It is important to remain engaged in scope, in approving submissions and in resolving missing information. Good communication between firms helps, but does not take away your responsibilities.