A new HMRC rule to become active next month could leave Brits in the financial lurch. New legal requires will mean that people who interract with the department on behalf of clients need to be registered, and meet “minimum standards”. From May 18, 2026, HMRC will introduce an online system for agent services accounts, replacing the current way to register. If an individual interacts with the department about another person’s tax affairs, and gets paid for it, officials consider them an adviser.
The Government has said that “individual taxpayers may be affected if their tax advisers are no longer able to act on their behalf because they are either unable to satisfy the new registration requirements”, or if their tax adviser is sanctioned. If this were the case, they would not be able to legally act on behalf of their clients and could face penalties of up to £10,000.
Officials would be able to suspend their registration for up to a year, requiring them to notify their clients.
They would not be able to interact with HMRC on behalf of their customers. If they do, they could be issued with a formal notice asking them to stop, or face a temporary or permanent ban them from being able to register. Advisers will have three months from the date they need to register to apply for an agent services account.
They can continue to interact with HMRC on their own behalf during this time, and while the department considers their application. As well as individual advisers, law firms may find themselves affected, even if tax affairs are only a small part of their overall business, accounting firm Moore Kingston Smith advised.
It added that HMRC will have the power to suspend a firm’s registration for a breach of the registration conditions, or where a tax adviser’s conduct has fallen below the standards.
“As this would have a significant impact on a firm’s ability to carry out tax work, we hope both that HMRC will look to work with firms to identify and correct minor breaches and that the detailed guidance on the new requirements will set out a clear process for this,” Moore Kingston Smith said.
“Financial penalties can apply where a firm attempts to interact with HMRC without being registered, or while its registration is suspended.
“Given the proximity of these changes and both the financial and non-financial implications for non-compliance, you should review your firm’s position imminently.”