From May 2026, tax advisers who interact with HMRC on behalf of clients will be required to join a new statutory tax adviser register and meet HMRC’s minimum registration standards. The changes will apply to both firms and sole practitioners and form part of HMRC’s broader effort to raise standards across the tax advice market.
Any adviser or firm that “interacts” with HMRC as part of client work will fall within scope. HMRC estimates that around 85,000 tax agent businesses across the UK, including partnerships and sole traders, could be affected. A three-month transition period will apply when the rules first come into force, giving advisers time to comply before penalties are enforced.
Although the register will operate at the firm level, HMRC will have powers to carry out spot checks on individual advisers. These checks will assess whether individuals are meeting the required minimum standards. HMRC has confirmed that further guidance on registration timelines and transitional arrangements for different adviser groups will be issued well in advance.
Some limited exemptions will apply. Firms whose agents deal only with VAT and customs duties will not be required to register. Similarly, businesses that provide accounting or payroll software will be outside the scope if their only interaction with HMRC arises from automated data exchanges linked to the use of such software.
Failure to comply with the register rules may result in significant penalties. Individual advisers could face fines of up to £5,000 for breaches, increasing to £10,000 if the rules are broken four times within two years, depending on the severity of the offence. HMRC will also introduce a suspension regime for firms that repeatedly fail to meet the requirements.
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