Switching Accountant for Your Limited Company

Switching accountant for your limited company is straightforward: you appoint the new firm, give notice to the old one, and the new accountant collects your records and takes over HMRC and Companies House authority. Done in the right order, there is no gap in cover and no missed deadline. This guide sets out what happens at each stage, what records to collect, and the timing that makes a switch smooth.

Key takeaways

• You can change accountant at any time. Right after a filing is the easiest point.
• Check your engagement letter for notice periods before you resign.
• HMRC agent authority has to be set up again for each tax.
• Change the registered office if your old accountant provided it.
• Make a written list of who files what, so no deadline falls between firms.

What does "switching accountant" involve?

Switching accountant means moving the work of keeping your company compliant, usually the annual accounts, the Company Tax Return, the confirmation statement, VAT returns, payroll and directors' Self Assessment, from one firm to another. The handover has three parts: the paperwork (engagement letters and a handover request), the records (the company's financial history), and the access (authority to deal with HMRC and Companies House on the company's behalf).

Why companies switch

Common reasons are slow replies, missed deadlines, fees that have crept up, a firm that does not use cloud software, or a business that has outgrown a basic service, for example when it takes on staff or registers for VAT. Whatever the reason, compare what is actually included before deciding. Our guide to limited company accountant packages lists what to ask about.

Step-by-step switching checklist

1. Check your engagement letter. Look for a notice period, any work already paid for, and any minimum term.
2. Map every deadline for the next 12 months. Accounts, Company Tax Return, corporation tax payment, confirmation statement, VAT quarters and payroll dates. Our year-end checklist helps.
3. Appoint the new accountant. Sign their engagement letter and complete their identity checks, which accountants must carry out under anti-money laundering rules.
4. Write to your old accountant. Give notice, say who takes over and from which date, and confirm which filings, if any, they will still complete.
5. Let the new accountant request handover information. They will normally write to the old firm asking whether there is any professional reason not to act and for the records listed below.
6. Authorise the new accountant with HMRC. They request agent authority for corporation tax, VAT and PAYE, and you approve each one. HMRC explains the process in its client authorisation overview. Our guide to agent authorisation covers the MTD side.
7. Sort out Companies House access. Make sure you, not just the old firm, know the company authentication code, which is needed to file online. GOV.UK explains company authentication codes.
8. Change the registered office if needed. See our guide to registered office rules.
9. Move software access. Give the new firm access to your bookkeeping software, and remove the old firm's access once the handover is complete.

Records to collect: a handover list

• The last two or three years of statutory accounts and Company Tax Returns.
• The trial balance or closing balances at the last year end.
• The fixed asset register and capital allowances workings.
• The director's loan account balance and how it was made up.
• Any corporation tax losses carried forward.
• VAT returns, the VAT scheme you use and your VAT registration details.
• Payroll records, including year-to-date pay and pension auto-enrolment details.
• Dividend vouchers and board minutes.
• Statutory registers if the old firm kept them, such as the register of members.
• Any open correspondence or enquiries with HMRC.

Timing options compared

Worked example (illustrative example)

Illustrative example only, not a real company. A one-director IT consultancy has a 30 June year end and is VAT registered on calendar quarters. Its accounts for the year to 30 June 2026 were filed in September 2026, but the director has had trouble getting replies from the old firm.

In October 2026 the director signs with a new accountant and writes to the old firm the same week. The letter confirms that the new firm takes over from 1 November 2026 and will file the VAT return for the quarter to 31 December 2026. The new firm requests HMRC agent authority for corporation tax, VAT and PAYE, and the director approves each code as it arrives. The old firm's address was the registered office, so the director changes it at Companies House. The handover pack arrives with the 2026 trial balance, the director's loan account schedule and the payroll year-to-date figures, so the new firm can carry on without rebuilding the past.

Common mistakes

• Leaving without a deadline list. A VAT return or confirmation statement can fall between the two firms.
• Forgetting the registered office. Official letters keep going to the old firm, sometimes for months.
• Not knowing your own authentication code. Without it, nobody can file online for the company quickly.
• Starting HMRC authority late. Your new accountant cannot see your tax records or speak to HMRC until it is in place.
• Losing the director's loan history. An unclear loan account balance can cause tax problems later. See our guide to the director's loan account.

How we can help

We are a London-based specialist accounting practice for limited companies, sole traders and drivers, working on fixed monthly fees. When you move to us, we handle the handover request, HMRC authorisation and software access, and we map your deadlines from day one. Limited company packages start from £75 per month. See our limited company packages, check our pricing, or contact us to plan your switch.