Making The Switch
0800 772 0956
“I will be glad when my accountant retires – so I can make a change!”
So said someone to me a few years ago.
Some are reluctant to change agents, thinking, for example, it will upset the existing accountant they have known for many years. That is understandable but circumstances change within those years, whether personal or business related so finding someone else is perfectly normal and accepted by our profession. I am pleased to say we still have clients from over twenty years ago and retain many others, but life happens, and people go for several reasons.
It isn’t hard to change agents, and from your point of view remarkably simple. The actual spade work is between the agents themselves. This is what happens:
Contact your existing accountant
It is polite to let them know you are appointing someone else. Unless you are having a raging fury, then a simple thank you for the work over the years will suffice, and that someone else will take over and request they hand over the information. That’s pretty much all of your hard work done.
Register with the new accountant
Your new agent will send a registration form for you to complete which will include your personal, and any business or company information. To comply with UK law, they will carry out anti-money laundering checks on you, so you'll have to provide a scan of your passport or driving license as well as a recent utility bill proving your address.
Sign Letter of Engagement with new accountant
An engagement letter protects you and the firm by providing a record of the contract between us (for the type of work required etc) and minimises the risk of any future misunderstandings between the parties. So it's a simple sign it and it's done.
New accountant contacts old accountant
We will write to your previous accountant requesting what is known as Professional Clearance. This explains to your previous accountant that you have contacted us to represent you and if there are any professional reasons as to why they should not accept the appointment. The letter will include a request for any copies of accounts, tax records, tax returns and any other information they hold useful to continue with your tax affairs.
The new agent contacts the HMRC
We use our dedicated HMRC online service and contact them to say that we will be acting on your behalf. The HMRC will within a week or so write to you at your home or business address (or the latest one they have on record – so check that it is up to date!) with an Agent Code. This is a HMRC security check, and if you approve for us to represent you, just let us have the code. And that is it. No need to take a deep breath or a brave pill. It is very simple.