Changing accountant before 31 January: is it too late?

Every year, people in Cheltenham decide in November or December that they want a different accountant, then wonder whether it is too late with the 31 January deadline coming. It usually is not. Here is how a switch works at this time of year, and what decides whether this year's return moves with you.

What has to happen

1. You tell us you want to move. We agree the fee and scope with you in writing before anything starts.
2. We write to your current accountant. This is a professional clearance letter, which ICAEW members are required to send. It asks whether there is any reason we should not act, and for the information we need.
3. You authorise us with HMRC. We request access through HMRC's agent services and you confirm it with HMRC. This is quick, but it does need you to act on the request when it arrives.
4. We take over the records. Last year's return, your tax account and anything already started for 2025/26.

You do not need to fall out with your current accountant, and you do not need to wait for a year end. Most of the time the handover is routine.

Is there time before 31 January?

For most individuals, yes, if the move starts by early December and your records are in reasonable order. What decides it is not the paperwork between accountants. It is whether your own figures are ready: bank statements, invoices, rent schedules, P60s, dividend vouchers and any capital gains.

If the timing is tight, the sensible route is sometimes for your current accountant to file this year and for the move to start the day after. We will tell you which applies on the first call rather than take on a return we cannot finish properly.

What it costs to miss the deadline

• £100 if the return is late, even if no tax is owed.
• Further daily penalties after three months, and more after six and twelve months.
• Interest and late payment penalties on any tax not paid by 31 January.

A switch should never be the reason a return goes in late.

Making Tax Digital is a good moment to move

If you are a sole trader or landlord with more than £30,000 of income, Making Tax Digital applies to you from 6 April 2027. That means new software and quarterly updates from next spring. Changing accountant at the same time as setting that up is usually easier than doing it twice.

Next step

Our changing accountants page covers the process in more detail, and our self assessment page sets out what we do. If you would like to talk it through, book a free call. We are on Royal Crescent in Cheltenham.