Every Accounting firm you look up will mention that switching accountants in the UK is easy. But is it really? Switching accountants might sound easy; the process mentioned for changing accountants can be the same in every blog you see. But the problem is choosing the right new accountant for your restaurant. Our Shreem Team is aware of this; we have been in this business since 2013 and have served multiple businesses from various sectors. This blog will guide you on the steps for changing your restaurant account, things to consider, and rules that have been affecting your restaurant business.
Working with an accountant where you spend days following up just to get an answer on your VAT, tax savings, and payroll can be frustrating. To be honest, you need an accountant who is responsive and tells you how much tax you can save, not how much you need to pay. With MTD Update (April 2026), National Insurance Contributions, and National Living Wage increased in April 2025, you need a restaurant accountant who ensures you claim the allowance and maintain the payroll for reliefs. Now, with all these, you might have come up with the confusion of choosing a generic accountant or an accountant with experience in hospitality?
Regular Accountant or Restaurant Accountant? Why does it matter?
As we are aware, every business is different. With a restaurant business, it involves wages, tipped wages, and overtime, which is different from the standard payroll. A restaurant accountant needs to track daily sales and weekly inventory, unlike a monthly or quarterly reporting cycle. Restaurants integrate POS systems for tracking, whereas other businesses go with ERP systems. The operational and financial aspects of the restaurant makes it different from other businesses.
Some Rules your new Restaurant accountant should be aware of
Rise in Employer National Insurance Contributions (NICs)
A recent rise in NICs from 13.8% to 15%, along with a drop in the secondary threshold from £9100 to £5000 per year, has caused a significant cost increase in labor costs for UK restaurant businesses. This has led to an increase in payroll costs and reduced profit margins. A specialized restaurant expert from Shreem Accountants can help your business by identifying tax efficiencies, restructuring the payroll method, and maximizing government reliefs and exemptions.
Employment (Allocation of Tips) Act 2023
According to the Employment Act 2023, employers in UK hospitality need to give 100% of the tips and service charge directly to workers with zero employer deductions (Tronc Tipping). A tronc is a separate, organized pay arrangement in the UK’s hospitality industry. Employers cannot control how the tips are allocated. An independent tronc master (Often a staff member from the restaurant) must be appointed by the management, who has control over how the tips are divided.
Our Shreem Accountant can help you craft a legally compliant tipping policy.
National Living Wage (NLW)
From 1 April 2026, the National Living Wage for workers aged 21 and over has increased by 4.1% to £12.71 per hour. If you were not aware of it, the hospitality sector has the highest proportion of minimum wage roles in the UK. Now, if you were to hire an accountant who is aware of this, they can shift your financial strategy from passive survival to proactive optimization. They might do this by using real-time labor cost percentage tracking, redesigning gross profit and menu models, or strategically managing a new staff age structure, which can trigger total exemptions from the Employer NICs threshold.
Process for Switching Restaurant Accountants in UK
Note: Before switching accountants, make sure you have your UTR number, authentication code, Government Gateway login credentials, Company & VAT registration number, last filed annual accounts, CT600, accounting software login details, and your payroll details.
Phase 1: Choose your New Firm
While searching for a new accounting firm for your restaurant, make sure you go through all the above tips. Make sure you are choosing the right restaurant accountant in the UK with the ability to solve your accounting situation.
At Shreem, we always have a meeting with our prospective client (virtually or physically) so that we are aware of their situation. Getting to know our client helps us to make the future process go smoothly.
Phase 2: Notify your old accountant
Notify your current accountant that you intend to move. Make sure to check any engagement letter for any notice period. Send a professional email to your current accountant. Even if the reason for switching might be frustration, make sure to have a professional relationship in the industry; you never know where you might end up together in other circumstances.
Phase 3: Your new accountant team sends Professional Clearance
Now the new accountant will write a formal “Professional Clearance” letter to your old accounting firm. This is an ethical practice that has to be done in the UK if you are planning to switch. The letter usually asks ethical questions about you and whether there are any reasons they shouldn’t work with you, and requests the handover containing all your necessary details to move forward.
Phase 4: HMRC and Company House (64-8 form)
HMRC should be aware of the person taking charge of your restaurant for accounting and taxation. They submit the 64-8 form via the digital accountant change portal in HMRC.HMRC will send you a confirmation notification, which you simply approve.
Phase 5: Onboarding complete
After your accountant reviews your financial position and sets up their system, you can expect them to start their work within 2 to 3 weeks.
At Shreem, we review all your historical records and areas for opportunity that can help your business save.
Is there a best time to switch accountants?
As we mentioned at the beginning of this blog, the process might not be as easy as it seems. The factor that can decide how the step goes is TIMING.
According to Prabhat Sitoula, who is the Senior Accountant at Shreem Accountants,
Honestly, there is no single ‘perfect’ calendar date to switch accountants – but there are smarter windows than others. The best time to switch accountants is usually right after your financial year-end, once your annual returns and tax filings are complete. This way, you are not left with unfinished paperwork stuck between two accountants, and your new accountant gets a clean slate to work with.
That said, you don’t always have to wait. If your current accountant is unresponsive, making costly errors, or simply not proactive with advice, the best time to switch is the moment you notice the relationship isn’t working because bad accounting advice costs you more the longer you delay.
So if you are asking ‘when should I switch,’ my real answer is: switch before it becomes urgent, not after.“
Prabhat’s advice is simple: the optimal time to switch would be after your year-end filings are complete. But if poor communication and weak advice are already costing you, it’s better to switch accountants sooner rather than wait for the best date. If you feel that your accounting is holding you back from moving forward with your business, switching accountants as soon as possible should be your best choice.
How can Shreem help you as your new Restaurant Accountant?
Shreem Accountants has been an ACCA-registered accounting firm in the UK since 2013. We handle the entire accounting, not only company switching, but from company formation to payroll, VAT, you name it.
Note: Make sure your new accountant is compliant with HMRC’s Mandatory tax adviser registration scheme, which started in 18th May 2026.
If you are still confused, we encourage you to have a short conversation with us. Our Accounting expert will walk you through your specific situation. Get in touch with the Shreem Team.
FAQs about switching accountants for a restaurant business in UK
Will I lose my data while switching accountants?
Almost all accountants use cloud accounting software, and all the data lives in the cloud, not your old accountant’s. So your data is secure. And in case of your documents and records, your previous accountant has a legal and professional obligation to hand you all the documents that you provided.
What if my accountant refuses to hand over my records?
Your old accountant cannot withhold your records. The books and records belong to you and should be returned.
Will switching accountants cost me a fortune?
In practice, your old accountant will invoice you for the work performed up to the date you decided to leave. It’s worth checking your engagement letter to know if there has been any mention of handover fees.
