Professional clearance letter template

How to use it

1. 1Get the client's written authority first. The client authority section at the end records it, so the two firms can talk freely.
2. 2Send the letter from the new accountant to the previous one, by a method you can track.
3. 3Ask for what you need. The minimum the previous accountant hands over is the last approved accounts and a detailed trial balance; other records usually belong to the client.
4. 4Set up agent authorisation with HMRC separately. The letter doesn't authorise anyone to deal with HMRC.
5. 5Switching to Countify? The clearance letter generator drafts this for you.

What each field means

Client and references

Name, business or company name and the references that identify the client: UTR, company number, VAT number, PAYE reference.

Professional enquiry

Asks whether there's any professional reason the new accountant shouldn't act. The decision to accept the appointment stays with the new accountant.

Transfer information

The last accounts formally approved by the client and a detailed trial balance agreeing to them, plus any client records you need.

Client authority

The client's signed permission for the previous accountant to discuss their affairs and send the information.

What the letter is for

When a client changes accountant, the new firm writes to the old one before accepting the appointment. The ACCA Code of Ethics and Conduct covers this in section 320 (professional appointments) and section B15 of its supplementary requirements. It's often called professional clearance, but the decision whether to act rests with the new accountant.

The letter only works once the client has authorised free and frank communication between the two firms, which is why the template ends with a signed client authority.

What the previous accountant hands over

ACCA's transfer information factsheet says reasonable transfer information should be provided promptly and free of charge. B15 defines it as a copy of the last set of accounts formally approved by the client and a detailed trial balance agreeing to them.

Much of the rest, such as ledgers and records the client supplied, belongs to the client. It's normally sent to the client, or to the new accountant with the client's authority.

HMRC authorisation is separate

The letter doesn't let the new accountant deal with HMRC. The client authorises them through HMRC's online services or business tax account, or with form 64-8 if they can't use those, and can remove the old agent's authorisation.

Licence and disclaimer

Free to use, copy and adapt for your own business or personal records. Please don't resell it or republish it as your own template.

A template is a starting point, not advice for your circumstances. Check the result against the GOV.UK guidance linked below, or ask an accountant.