HMRC has confirmed that from May 2026, tax advisers who interact with HMRC on behalf of clients will be required to register with HMRC and meet defined minimum standards. The change follows updated policy material and draft legislation within the Finance Bill.
Professional bodies, including the Chartered Institute of Taxation (CIOT), have issued supporting FAQs to explain how the new regime is expected to operate. Further operational detail is expected as the legislation progresses.
The reform represents a substantive regulatory shift. Acting for clients before HMRC will become conditional on formal registration. Adviser status will no longer rest solely on professional body rules or anti money laundering supervision. HMRC will operate the statutory gateway controlling who is permitted to act.
What has changed?
Until now, advisers could deal with HMRC on behalf of clients provided they held appropriate agent authorisation and met existing legal obligations, including AML supervision. There was no separate statutory requirement to register as a tax adviser.
From May 2026, that position changes. Advisers who interact with HMRC for clients will need to register directly with HMRC. Registration will depend on meeting defined minimum standards, and HMRC will have power to refuse, suspend or withdraw that registration where those standards are not met.
The updated HMRC Standard for Agents forms part of the framework underpinning the regime. The practical consequence is straightforward. Advisers who fall below the required threshold may lose the ability to act for clients altogether.
What are “minimum standards”?
Further procedural guidance is expected, but the minimum standards are intended to link professional conduct, competence and personal compliance to registration status.
In broad terms, advisers will be expected to comply with the integrity and behavioural principles set out in HMRC’s Standard for Agents, maintain appropriate anti money laundering supervision, keep their tax knowledge current and ensure their own personal and business tax affairs are compliant.
The regime creates a direct regulatory connection between an adviser’s personal compliance record and their continued ability to represent clients. Unresolved liabilities, serious errors or conduct concerns may now carry consequences beyond reputational damage.
What this means for tax advisers in practice
Registration becomes a condition of market participation. Firms that intend to act for clients before HMRC will need to demonstrate that they meet the entry criteria and can evidence compliance on an ongoing basis.
In practical terms, this requires a review of internal governance, confirmation that AML supervision is properly documented and current, and assurance that partners, directors and key personnel do not present personal tax risk issues. Monitoring legislative developments and implementation guidance will also be necessary as the regime is finalised.
HMRC’s power to suspend or withdraw registration introduces a clear enforcement mechanism. The issue moves from informal expectation to statutory control.
What this means for business owners
For business owners, the impact is indirect but commercially important. From May 2026, an adviser who is not registered under the new regime may not be permitted to act in dealings with HMRC. That could affect return submissions, enquiry correspondence, clearance applications and routine compliance management.
Business owners should therefore confirm that their adviser intends to register and is preparing appropriately. It is also sensible to ensure AML supervision is in place and that engagement terms are clear as to scope and responsibility.
For established firms with structured compliance systems, the change is likely to be procedural. Smaller or informal operators may face greater difficulty meeting the threshold. Businesses relying on marginal or loosely regulated advisers should reassess that exposure before the regime takes effect.
Risk and continuity considerations
Mandatory registration alters the continuity risk profile for users of tax advice. If HMRC withdraws an adviser’s registration, that adviser will no longer be able to act. A business could find itself without representation during an enquiry or close to a filing deadline. Replacement representation at short notice carries cost, disruption and potential strategic disadvantage. Businesses should therefore understand the regulatory standing of their adviser and consider whether reliance on a single individual creates operational vulnerability.
Further updates will follow once HMRC publishes detailed implementation guidance and confirms the final legislative position.
Author
Gill Laing is a qualified Legal Researcher & Analyst with niche specialisms in Law, Tax, Human Resources, Immigration & Employment Law.
Gill is a Multiple Business Owner and the Managing Director of Prof Services Limited - a Marketing & Content Agency for the Professional Services Sector.
