What if my old accountant refuses to hand over records?
Switching accountants is generally straightforward. Most accountants handle the process professionally, providing records and information to your new accountant without issue. But occasionally, problems arise — one of the most worrying being when an old accountant refuses to hand over records.
So, what happens if this occurs? Are they allowed to withhold your financial data? What are your rights? And how do you resolve it?
Let’s take a clear look at what’s typical, what’s allowed, and how to handle it if your old accountant becomes uncooperative.
Can an Accountant Refuse to Hand Over Records?
In general, no — they cannot refuse to hand over records that belong to you as the client. Professional guidelines are clear: accountants are expected to transfer client-owned records when the client switches to a new accountant.
However, there are some exceptions. An accountant may have the right to withhold non-statutory documents, usually in cases where there are unpaid fees. This mainly applies to their working papers — internal notes, calculations, or drafts prepared during the course of their work.
What Records Are They Obliged to Hand Over?
Accountants must hand over all client-owned documents, including:
Previous years’ financial statements
Corporation tax returns or self-assessment returns
VAT returns and reports
Payroll records, including year-to-date figures
Fixed asset registers
Bookkeeping files if they managed your books
Any tax filings made on your behalf
Any correspondence with HMRC or relevant tax authorities
These are your records, not theirs.
What Can They Withhold?
The only documents they can legally retain are their working papers, which are internal documents used to prepare your accounts. These typically include:
Notes, checklists, and drafts
Calculations done during tax preparation
Internal audit reviews or queries
Working papers are not usually needed by your new accountant to continue service. All statutory records and financial information required for running your business or for tax compliance cannot be withheld.
Common Reasons for Refusal or Delay
When accountants refuse or delay handing over records, it’s often down to:
Unpaid fees: If you owe them money, they may refuse to hand over certain items until the account is settled.
Miscommunication: They may not have received proper notice or are unclear whether you’ve authorised the transfer.
Professional concerns: In rare cases, if the accountant believes there are legal or ethical reasons (such as fraud concerns), they may delay while seeking advice.
Simple delays: Sometimes it’s not refusal but slow admin, especially in busy periods.
Are They Allowed to Hold Records Over Unpaid Fees?
Yes — but only certain records. If fees are unpaid, they may retain their own working papers. However, they cannot legally withhold client-owned documents, including tax filings, VAT records, statutory accounts, or anything you need to comply with legal obligations.
Most professional accounting bodies agree on this principle.
What Do Professional Standards Say?
Professional bodies like ICAEW, ACCA, and others have clear guidelines about client handovers. These typically state:
Accountants must provide all client-owned documents promptly when requested, assuming no ethical or legal barriers.
They cannot obstruct a client’s ability to meet tax obligations or run their business.
Working papers belong to the accountant unless agreed otherwise.
If a dispute arises, members are encouraged to resolve it quickly and professionally.
What Can You Do If They Refuse?
1. Check Your Contract
Review your engagement letter with the outgoing accountant. Check if there are any clauses about fees, termination, or record retention.
2. Settle Outstanding Fees
If you owe money, paying the outstanding invoice can resolve the issue quickly. This is often the simplest way forward.
3. Speak Directly
Sometimes, a polite phone call or email can clarify misunderstandings and speed things up. Clear communication often resolves delays.
4. Ask Your New Accountant to Follow Up
Your new accountant can send reminders or formal requests. This is standard procedure and often taken more seriously when handled accountant-to-accountant.
5. Raise a Complaint with Their Professional Body
If the issue isn’t resolved, you can escalate it. All qualified accountants are members of professional bodies that oversee their conduct.
ICAEW, ACCA, CIMA, or similar bodies offer complaints procedures.
They investigate unprofessional behaviour, including failure to release records.
6. Legal Action (Last Resort)
Legal action is very rare but is an option if a significant dispute over records damages your business. Generally, it doesn't reach this point, as professional complaints usually resolve the matter first.
Will This Disrupt My Business?
It’s unlikely to cause major disruption — especially if you use cloud accounting software where most data is already accessible to you. Your new accountant can often reconstruct key information using HMRC records, bank statements, and your own bookkeeping if absolutely necessary.
That said, it’s better to resolve any outstanding issues quickly to avoid gaps in records.
How Can You Avoid This Problem?
Keep your own copies: Always save copies of tax returns, VAT submissions, payroll records, and financial statements for your own files.
Stay on top of fees: Pay your accountant on time to avoid disputes.
Maintain clear communication: Give formal written notice when switching, and confirm handover expectations.
Use cloud software: Tools like Xero, QuickBooks, and others give you direct access to your financial data, reducing reliance on accountants for day-to-day records.
Does This Happen Often?
Thankfully, no. The majority of accountants handle client departures professionally and efficiently. Situations where records are deliberately withheld are uncommon and usually arise only in the case of unpaid fees or unresolved disputes.
