HMRC confirms tax adviser registration rules

HMRC has published its updated guidance on the requirement to register as a tax adviser and the conditions individuals and firms must meet.

Every business which interacts with HMRC about someone else’s tax affairs and receives payment for doing so must register for an agent services account from 18 May. ‘Interaction’ is classed as dealing with HMRC via phone, post or email, messaging through the GOV.UK website or HMRC app, and sending returns, claims or other documents.

“You’ll need to register even if you do not view yourself as a tax adviser, or describe your work as tax advice,” the guidance states.

In firms of five or fewer, each person must register with HMRC as a ‘relevant individual’, even if they don’t provide tax services. In firms of six or more, all ‘relevant individuals’ must be registered, including all officers involved in tax adviser activities and anyone else who plays ‘a significant role’ in managing or organising activities related to tax advice.

If there are fewer than five people in the firm carrying out the relevant activities, other individuals must be nominated to bring the total to five.

Every firm or sole trader registering for an agent services account must provide evidence that it is supervised for anti-money laundering. Individuals don’t need to provide evidence of AML supervision.

Businesses with outstanding tax returns or unpaid tax that isn’t covered by a payment plan will not be able to register.

“This is ultimately about ensuring appropriate oversight and professional standards when dealing with tax,” said Sean Swimby, director at stamp duty specialists SCA Tax. “Firms that interact with HMRC on behalf of clients will need to consider how they meet these requirements going forward.”

However, the guidance has been criticised by legal regulators.

“The conditions outlined by HMRC, including mandatory AML supervision and the requirement to identify and provide information on ‘relevant individuals’ involved in managing or organising tax‑adviser activities, will place significant operational burdens on many firms,” said Simon Law, chair of the Society of Licensed Conveyancers.

“The SLC has consistently raised concerns about mandatory adviser registration, including in our recent letter to the Chancellor. Our position remains that, while raising standards is a legitimate and shared objective, the proposed model risks imposing disproportionate administrative obligations on compliant legal practices without demonstrable benefit to consumers.

“We have also warned that elements of the framework appear unnecessarily broad, capturing professionals who do not hold themselves out as tax advisers and potentially duplicating existing regulatory oversight.”

Sheila Kumar is chief executive of the Council for Licensed Conveyancers. “We are very disappointed that HMRC has not taken the opportunity to make a common-sense change to the regime to exclude conveyancers who are not permitted to give tax advice but who make SDLT submissions and payments on behalf of clients,” she said.

“The chair of the CLC Dame Janet Paraskeva’s letter to the Chief Secretary to the Treasury set out the risks that will arise from this step, duplicating regulatory oversight of an area of work where there is no current problem and allowing bad actors to present themselves as registered with HMRC to give tax advice when they have no permission to give that advice to clients.

“This runs counter to efforts to improve the home buying and selling process to deliver a better service to consumers and support growth in the economy.”

Lidia Quinlan, director and head of sales at specialist tax advisers Compass, said the registration requirement reinforces a point some firms may have overlooked. “Taking advice on an SDLT calculation does not transfer responsibility,” she pointed out.

“If the firm remains the submitting adviser, it remains accountable for the tax position.

“True protection only arises where the submission itself is outsourced and the third party acts as the submitting tax adviser. Firms should now act proactively, reviewing their SDLT model well ahead of the implementation dates to avoid last minute disruption, delays in matters completing, or bottlenecks caused by registration backlogs.

“Early preparation will be key to maintaining continuity and protecting clients.”

George Bould, head of new business at advisers SDLT Check, agrees. “It’s not something firms should be alarmed by, but it is a good prompt to pause and look at existing processes,” he said.

“In reality, it’s about being clear on where tax advice sits within the firm, how it’s documented, and making sure there’s proper oversight. For most, it won’t mean a major change, just a sensible review to ensure everything is aligned and future-proofed.

“I’ve also written directly to HMRC to seek clarity on how this applies in practice, particularly where a firm outsources the questionnaire, tax advice, document population, and submission, but still transfers the funds to HMRC, and what that means in terms of any registration requirement.”

SLC chair Simon Law acknowledged the guidance provides clarity on some procedural points, but said many fundamental issues still require further detail – “particularly around evidential requirements, the scope of ‘relevant individuals’, and how HMRC will apply expected conduct standards in practice.”

He added: “With the registration requirement being introduced in stages from 2026, greater certainty is urgently needed to allow firms to prepare without disruption to client services.

“The SLC continues to urge HMRC and the Treasury to engage substantively with the profession, to refine the regime so that it improves standards proportionately and avoids placing unnecessary burdens on already‑regulated legal service providers.”

HMRC guidance: Check if and when you need to register as a tax adviser with HMRC

HMRC guidance: Check if you meet HMRC’s conditions to register as a tax adviser