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Nov 5, 2024

Mandatory HMRC registration for tax advisers to launch in 2026

From April 2026, all tax advisers dealing with HMRC will be required to register under new Government rules aimed at reducing unethical practices. The mandatory registration is part of a broader effort to regulate the tax advice industry and eliminate rogue practitioners offering substandard services. This move follows widespread concerns that unaffiliated tax advisers, currently unregulated, pose risks to clients and the tax system.

HMRC will receive £36m to modernise its registration services and ensure advisers meet the necessary standards. The new regime, however, will not affect only members of professional bodies. All 85,000 estimated tax advisers, regardless of affiliation, will need to register before providing services.

A final decision on who will oversee the registration process remains undecided, with options including professional body oversight or a new independent regulator. A further consultation is expected to finalise details.

Exchequer Secretary to the Treasury, James Murray, said:

“It is a substantive first step towards raising standards in the tax advice market, and it will be accompanied by the necessary investment to ensure HMRC’s registration services for practitioners are easy to use.”

Although the move has garnered support from key professional bodies, some industry experts remain cautious about the real impact, particularly in targeting those already operating outside the law. Further consultations and detailed proposals are anticipated before full implementation.

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