Most business owners put off changing accountants because they expect an awkward conversation and a pile of paperwork. In practice, switching accountants in the UK takes three steps, and your new accountant does most of the work.
At Lexarox Accounts, we run the whole changeover. We write to your old firm, request your records, set up the HMRC and Companies House authorisations and tell you when it is done. You do not need to chase anyone.
Why do businesses change accountants?
The reasons we hear most often:
- Slow or no replies to calls and emails
- Fees that are unclear, or that keep rising without explanation
- No tax planning advice, just year-end compliance
- Errors in accounts or tax returns
- Missed filing deadlines and the penalties that follow
- Poor bookkeeping support
- Outdated systems, or no cloud software at all
- The business has grown and needs more specialist help
- You need services your current firm does not offer, such as payroll, CIS or legal support
Whatever the reason, you do not have to wait until your year-end. You can switch at any point in the year.
How to change accountants in 3 steps
Step 1. Choose your new accountant
Start by being clear about what you need. Typical services include bookkeeping, annual accounts, Corporation Tax, Self Assessment, VAT, payroll, CIS, Making Tax Digital, management accounts and tax planning.
Questions worth asking any firm before you sign:
- What is the fee, what does it include, and what costs extra?
- Which software do you use, and will I need to change mine?
- Who will be my day-to-day contact, and how quickly do you respond?
- Are you registered with HMRC as an agent and supervised for anti-money laundering?
- Are you an Authorised Corporate Service Provider? From 2026, only ACSPs can file on your behalf at Companies House.
- Will you handle the handover from my current accountant?
Step 2. Authorise your new accountant
Your new accountant cannot deal with HMRC or Companies House until you authorise them. The authorisation replaces your old accountant’s, so there is nothing separate to cancel.
What this involves:
- HMRC: we send you a digital authorisation request for each tax (Corporation Tax, Self Assessment, VAT, PAYE). You approve it through your Government Gateway account. For older services, a signed Form 64-8 is used instead. Once accepted, the new authorisation automatically replaces the old agent.
- Companies House: you give us your company authentication code, and as an ACSP we can then file your confirmation statement, accounts and changes of director on your behalf.
- Your engagement letter: we send you a letter of engagement setting out the services, fees and responsibilities on both sides. Sign it, and we are instructed.
This step usually takes a few days, and most of the waiting is HMRC processing time.
Step 3. We handle your old firm
This is the part people dread, and it is the part you do not have to do.
Once you have instructed us, we write to your previous accountant with a professional clearance letter. This is a standard letter between accountants. It asks whether there is any professional reason we should not act for you, and requests the records we need. Your old firm is expected to reply promptly and to hand over your records. That is a professional obligation, not a favour.
The records we request typically include:
- The last set of accounts and the trial balance behind them
- Corporation Tax computations and returns
- Self Assessment returns for directors
- VAT returns and workings
- Payroll records, year-to-date figures and pension scheme details
- Fixed asset register and capital allowances schedule
- Director’s loan account and dividend records
- Company statutory registers and formation documents
- Any open HMRC correspondence, enquiries or payment plans
You will need to send one short email to your old accountant confirming you are leaving and authorising them to release your records to us. We draft it for you. Check your existing agreement for a notice period and settle any fees you owe; an old firm can hold back its own working papers while fees are outstanding, but not the records that belong to you.
Common questions about switching
Do I have to tell my old accountant?
Yes, but it is one email, and we write it. Your old firm will also receive our clearance letter, so there is no difficult conversation to have.
What if my old accountant does not respond?
Most do. If yours does not, we follow up in writing and, where the firm is a member of a professional body, we can escalate to that body. In the meantime, we can rebuild most of what we need from HMRC’s records, Companies House and your bank statements, so the changeover does not stall.
Can I switch during the tax year?
Yes. The only thing to watch is timing. If a Corporation Tax return, VAT return, payroll submission, Self Assessment return, annual accounts or confirmation statement is due within the next few weeks, tell us at the start. We will agree who files it and make sure nothing is missed in the handover.
What about Making Tax Digital?
If you are a sole trader or landlord already in MTD for Income Tax, or you join from April 2027, note that HMRC does not transfer your digital records between agents. Before you leave your old firm, make sure you have access to your own software and the quarterly updates already filed. We will confirm what has been submitted so far in the year and pick up the next quarter.
Will I need to change my software?
Usually not. Lexarox Accounts works with QuickBooks and Xero. If you already use either, we simply become the accountant user on your account. If your records are on desktop software or spreadsheets, we will recommend a move to the cloud and handle the migration, including bringing in opening balances and prior-year comparatives.
Can I keep my old accountant for some things?
You can, for example, keep a bookkeeper you like while we take over accounts and tax. Only one agent can be authorised with HMRC per tax at a time, so we agree at the outset who handles what.
When is the best time to switch?
Any time, but ideally at least a month before your next major deadline. The quietest handover is just after your year-end accounts have been filed, when the old firm has nothing open. Do not let a looming deadline stop you: if the reason you are switching is that deadlines are being missed, waiting makes it worse.
How long does it take?
Authorisation with HMRC typically takes a few days. Records from the old firm usually arrive within two to three weeks. For a straightforward limited company, expect the full changeover to take three to four weeks. We keep you updated at each stage.
Why switch to Lexarox Accounts?
Lexarox Accounts has looked after UK limited companies, sole traders, contractors and partnerships since 2013. We provide accounts, bookkeeping, tax returns, VAT, payroll and CIS from one office in Hackney, and through Lexarox Legal we can also help with the legal side of running a business.
We are an authorised HMRC agent, supervised by HMRC for anti-money laundering, an Authorised Corporate Service Provider for Companies House, and a member firm of the Institute of Accountants and Bookkeepers. We work in English and Romanian.
Our changeover service is included when you join. We contact your old accountant, collect your records, set up the authorisations and confirm when everything is in place. You carry on running your business.
Call us on 0208 533 1358 or 0792 883 0368, or email info@lexaroxaccounts.co.uk.
Address: Lexarox Accounts, Unit 128, 203-213 Mare Street, London E8 3JS
Frequently asked questions
How do I switch accountants in the UK?
Choose your new accountant, authorise them with HMRC and Companies House, and let them request your records from your old firm through a professional clearance letter.
Do I have to tell HMRC I have changed accountants?
No. Approving your new accountant’s authorisation request replaces the previous agent automatically.
Should I tell my old accountant?
Yes, in writing. Your new accountant drafts the email and handles everything after that.
Can my old accountant refuse to hand over my records?
They cannot withhold records that belong to you. They can hold back their own working papers if you owe them fees, so settle any outstanding invoices.
How long does it take to change accountants?
Usually three to four weeks from instruction to full handover.
Do I need to change my accounting software?
Not if you already use QuickBooks or Xero. If you use something else, we will advise and handle any migration.
How do I switch to Lexarox Accounts?
Contact us with a summary of your business and the services you need. We send an engagement letter and authorisation requests, and we take it from there.
