Disengagement letter template
A disengagement letter tells a client that an accountant will no longer act for them, either because the firm is resigning or because the client has ended the engagement. It sets out the end date, work still to be finished, deadlines the client must now meet, how records will be returned and any fees outstanding. It is sent when an accountancy engagement ends.
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What changes each time
20 values. Everything else is your wording, kept exactly.
The parties
- Firm's name
- Firm's address and email
- Client's name, or contact name and company
- Client's address
- Client's first name
The end of the engagement
- Services we are acting for you in
- Date of the engagement letter
- Notice period
- End date
- Date of the client's letter or email
What is left
- Work we will finish
- Deadline the client must meet
- Date records will be returned by
- Registered office address changes from
Fees
- Amount outstanding
- Invoice or statement
- Amount for final work
- Date to pay by
Sign-off
- Name
- Signatory's job title
The rules it usually needs
Written in plain English when the template is set up.
- One of several wordings
“The firm is resigning, or the client has ended the engagement.”
The document carries the wording for whichever applies, and the other wording is left out.
- Once for each item
“One row for each piece of work the firm will finish, or None.”
The table has one row for each, so it grows or shrinks to match.
- Once for each item
“One row for each deadline the client must now meet.”
The table has one row for each, so it grows or shrinks to match.
- One of several wordings
“Records are returned by a date, or when the client or the new adviser asks.”
The document carries the wording for whichever applies, and the other wording is left out.
- Only when…
“Include the Companies House sentence only when it is relevant.”
When this applies, the Companies House sentence is included; when it does not, it is left out and the rest of the document is unchanged.
- Only when…
“Include the registered office paragraph only when the firm provides the company's registered office.”
When this applies, the registered office paragraph is included; when it does not, it is left out and the rest of the document is unchanged.
- Only when…
“Include the outstanding fees paragraph only when fees are outstanding.”
When this applies, the outstanding fees paragraph is included; when it does not, it is left out and the rest of the document is unchanged.
- Only when…
“Include the invoice for final work only when the final work is to be billed.”
When this applies, the invoice for final work is included; when it does not, it is left out and the rest of the document is unchanged.
Questions people ask
What is a disengagement letter?
It is a letter from a professional adviser to a client confirming that the relationship is ending. It gives the end date, what is outstanding and what the client needs to do next, and is a useful record if there is a later dispute.
Can an accountant stop acting for a client?
Yes, subject to the terms of the engagement letter and the professional body's rules. Giving the notice the engagement letter requires, and writing to the client, is the usual way to do it.
What should the letter say about deadlines?
It should tell the client which filing and payment deadlines are coming up that they or a new accountant must now deal with, because the former accountant will no longer be responsible for them.
What happens to the client's records?
They belong to the client, and the letter says when and how they will be returned. If a new accountant asks for professional clearance, the firm can respond once the client has authorised it.
What if the firm provides the company's registered office?
The law requires a registered office to be at an address where post will reach the company at all times, so the client must move it before the firm stops providing it. The letter has an optional paragraph for this.
Use this template
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