From 1 April 2026, registration with HMRC will be required for those who deliver advice to their clients in respect of tax. There are sanctions for failure to do so, and sanctioned tax advisers can be required to inform all their clients that they have been sanctioned.
This will be of interest both to tax advisers and to their clients. Tax advisers can include accountants, solicitors and any other consultant (specialist or otherwise) whose support services touch upon tax. Those who receive tax advice, even if only as a part of the services they acquire, might wish to distinguish registered tax advisers from unregistered or sanctioned tax advisers.
The new HMRC rules for tax adviser registration
Legislation has been drafted setting out the requirement for tax advisers to be registered with HMRC.
This is part of HMRC’s “roadmap” to reducing the tax gap by raising standards in the field of tax advice.
The legislation is draft only and might change as it proceeds through Parliament, but substantive changes are not expected and it would not be prudent to rely on there being delays.
When will tax adviser registration start?
Draft legislation sets the date by which qualifying advisers will be required to register as 1 April 2026, a date to put in the diary.
Who needs to register with HMRC?
HMRC’s aim is to “raise standards” in the tax advisory profession, by requiring both “tax advisers” and “senior managers” to register with HMRC.
Who?
Registration (Section 2) is required of “tax advisers” who wish to “interact with HMRC in relation to the tax affairs of a client”. It is expected that this will include advisers currently liaising with HMRC under 64-8 or COMP1 authorisation forms.
Tax advisers are firms, organisations or individuals who assist others with their tax affairs as part of their business. This includes every “senior manager” (Section 21) including a director of a company, a member of a limited liability partnership, a partner in a partnership, and those who are held out as such.
Activities deemed to be tax advice
The draft legislation (Section 1) deems tax adviser activities to include:
- advising the other person in relation to tax; or
- acting as an agent in relation to tax; or
- assisting with any document that is likely to be relied on by HMRC to determine the other person’s tax position; or
- even if appointed indirectly or at the request of someone other than the client; or
- even if tax advice is part of activities other than assisting clients with their tax affairs.
Registration process with HMRC
What information is needed to register?
Registration forms are not yet available from HMRC, but the draft legislation suggests:
4(3) An application must contain the following:
- the name and address of the adviser;
- the name of each senior manager of the adviser;
- a statement as to whether the eligibility conditions are met (see section 5);
- any other information or evidence that may be specified in a notice published by HMRC.
Eligibility conditions for tax adviser registration
Eligibility consists of Conditions A-C at Section 5 (see below). Ineligibility includes if any tax return or tax payment is late by the firm or by the individuals (Condition A at Section 5(2)(a)). Both the firm and its senior managers (individuals) will be required to meet “standards expected of tax advisers in their dealings with HMRC” (Condition B at Section 5(3)).
5(2) Condition A is that the tax adviser and each senior manager of the adviser:
- does not have any outstanding tax returns or amounts of tax due;
- is not subject to a decision by HMRC to refuse to deal with them;
- is not subject to a sanction or other measure imposed on them by HMRC in relation to tax anti-avoidance activities;
- is not subject to a suspension or suspension order under section 13 (suspension of registration etc);
- is not subject to a prohibition or permanent prohibition order under section 14 (prohibition against registering etc);
- is not:
- disqualified under the directors disqualification legislation, or
- subject to a similar disqualification in a territory outside the United Kingdom;
- is not insolvent;
- does not have an unspent conviction for an offence within section 6 (offences).
5(3) Condition B is that the tax adviser and each senior manager of the adviser meets any standards expected of tax advisers in their dealings with HMRC that are specified in a notice or other document published by HMRC for the purposes of this section.
5(4) Condition C is that the tax adviser:
- is registered with a supervisory authority for the purposes of anti-money laundering supervision, or
- meets such conditions about applying to register with a supervisory authority for those purposes as may be specified in a notice published by HMRC.
Exceptions to HMRC registration
If the tax adviser only undertakes the following, registration is not required (Section 3):
- individuals working for an organisation and interacting with HMRC in the course of a business carried on by that organisation;
- providing only payroll software or other tax or accounting software;
- customs requirement work (including related excise or import VAT);
- VAT representative work;
- interacting with HMRC in relation to other members of the same group;
- appeals to a court or tribunal.
Sanctions for failing to register with HMRC
If unregistered or ineligible for registration, the draft legislation sets out consequences.
- Registration can be suspended for ineligibility (Section 9).
- HMRC can issue a Compliance Notice (Section 10).
- If the Compliance Notice is not met, a £5,000 penalty will apply, rising to £10,000 for more serious offences (Sections 11 & 12).
- The tax adviser will be required to inform its clients if its registration is suspended for more than 30 days or if registration is prohibited (Section 15).
Preparing for April 2026: what to do now
The only thing to do at present is to put dates in the diary. The most import date is 1 April 2026.
A watching brief is prudent for legislation being enacted and for HMRC issuing registration documents will be key moments, perhaps best looked for in the first month or two of 2026.
Businesses and individuals could also now start considering whether any part of what they do for others might qualify them as a tax adviser, particularly where they contact HMRC.
If you have any queries or require further information, please contact Kevin Hall who would be delighted to assist.
The information provided in this article is provided for general information purposes only, and does not provide definitive advice. It does not amount to legal or other professional advice and so you should not rely on any information contained here as if it were such advice.
Wright Hassall does not accept any responsibility for any loss which may arise from reliance on any information published here. Definitive advice can only be given with full knowledge of all relevant facts. If you need such advice please contact a member of our professional staff.
The information published across our Knowledge Base is correct at the time of going to press.
