Can accountants charge for professional clearance. .
Can accountants charge for professional clearance Jun 5, 2011 · If they have it already, they can pass it on to their new accountants and hence their affairs can still be dealt wtihout you providing it. Professional enquiry is often referred to as ‘professional clearance’. This is a misnomer as you do not have the authority to give or withhold ‘clearance’ or ‘permission’ to act. ". Dec 1, 2018 · This process is referred to as ‘professional enquiry’. Sep 16, 2025 · Professional clearance is a letter that your new accountant sends your old accountant to ask for information relating to your tax matters. Mar 13, 2014 · Providing professional clearance and handing over records are two separate things. My previous accountants had an agreement with me where the annual fee was capped at £1,500 for 'standard' services - I would pay for any extras on top Feb 4, 2020 · Professional clearance or professional enquiry? As part of the change of professional appointment process, you can expect to receive communication from the prospective accountant. On this thread: ‘ New accountant carries out work without professional clearance …’ a number of contributors rightly make the point that seeking ‘professional clearance’ is not a question of gaining permission from the previous accountant. The decision whether or not to accept appointment is the responsibility of the prospective accountant. By obtaining approval from a professional body or regulatory organisation, accountants and auditors can demonstrate their commitment to compliance. This is a misnomer as the existing accountant does not have the authority to give or withhold ‘clearance’ or ‘permission’ to act. It is also perfectly permissible for you to charge a reasonable fee for compiling the information You can advise the new accountant of the fee dispute in the professional clearance letter. In the event that a prospective accountant seeks ‘permission’ or Professional clearance is an essential aspect of UK accounting, ensuring that accounting and auditing practices meet the highest professional standards. The letter will enquire whether there’s any reason they cannot take you on as a client, request professional clearance and ask that all relevant information is forwarded to them. Accountant refusing to issue Professional Clearance A bit of background - I switched accountants because the fees were getting stealthily higher. Feb 5, 2025 · As a limited company owner, there may be a time when you decide to change accountants. Jun 3, 2011 · Just to clarrify one point - it has been established that legally professional institutes cannot restrict members lawful right to charge commercial fees for work done, so the "rule books" are unenforceable in this respect and can only, legally, constitute advice. Nov 28, 2017 · What to do if a client decides to shift to a different accounting firm? Both the new and old accountant must make the switch as efficiently and ethically as possible. Your new accountant should be helping you more with this and not just passing the buck back to you. Some may charge a switcher fee due to the work involved in switching accounts and taking over your bookkeeping software access, for example. Apr 19, 2016 · We have recently been instructed to act for a new client and have written to our predecessors for professional clearance and also to ask for the standard hand-over information - copy of the last accounts and comps, breakdown of balance sheet items, copy of personal and company tax returns and payroll information. Your new accountant will need to send your current accountant a professional clearance letter before your accounting records can be transferred. If the accountant is refusing to provide professional clearance without payment, you or the new accountant requesting the clearance should report them to their professional body as it is a clear breach of their professional responsibilities. Despite some people referring to this communication as a request for "professional clearance", you do not have the authority to give or withhold permission to act. How does the disengagement and professional clearnace process work? Oct 28, 2022 · What actually is professional clearance and why do we do it? Brief and formal, it’s simply a letter from the new accountant to the old one asking for any relevant information pertaining to yourself and your business. Professional Conduct against ACCA members involve transfer information, or more correctly, the information that the former accountant must transfer to the new accountant on a change of appointment, if requested to do so. When seeking an accountant's involvement, it's essential not to use terms like "permission" or "clearance. Clients have the right to choose their accountants and to change their accountants if they so desire. Further reading You can read Integro Accounting’s guide to switching accountants here. Jun 27, 2011 · Again though we have to be clear as to what is ‘reasonable’ in this context. Oct 27, 2025 · Some accountants may ask you to sign this documentation before they contact you for professional clearance. But what happens when they won't? Mar 14, 2019 · Get your new accountant to write back giving chapter & verse re professional clearance, referring to the old accountant's professional body rulebook. Oct 26, 2023 · Clearance requests are an opportunity for previous accountants to provide tax documents - and highlight a client's illegal activity - to the new accountant. The decision whether or not to accept appointment is your responsibility. Section 320 of the ICAEW Code of Ethics deals with changes in professional appointment and the specific procedures to be followed by both the prospective and existing accountants. Don't call it 'professional clearance'; that's a misnomer – the decision to accept appointment belongs to the new accountant. Dec 20, 2018 · Professional clearance Professional enquiry is often referred to as ‘professional clearance’. ufylcslszmvjvlqzkhqhizsmbajzubaybhhsksjmubzonetughuxrcwtexdnprjqijfapgrx