4 August 2026
By Martin Hobson, Partner, Professional Services Team, Clive Owen LLP
A significant change introduced by the Finance Act 2026 means many professional firms have just a few weeks left to determine whether they need to register with HMRC as a tax adviser.
At first glance, many businesses will assume the new rules apply only to accountancy practices. In reality, the legislation is much wider than that, and I believe a number of firms outside the traditional tax advisory profession may not yet appreciate that they could be affected.
The new registration regime forms part of HMRC’s wider strategy to improve standards across the tax advice market and strengthen its oversight of those who act on behalf of taxpayers. The deadline for businesses that need to register is 18 August 2026.
The key issue is how the legislation defines both a “tax adviser” and what constitutes an ‘interaction’ with HMRC.
Many people naturally associate tax advisers with accountants or specialist tax consultants. However, the legislation takes a much broader approach and if a business interacts with HMRC on behalf of a client in relation to a tax matter, it may fall within the new regime.
Interaction can include speaking with HMRC, submitting tax returns or other documents, or communicating with the department in a variety of ways. That means businesses whose primary role is not tax advice could still find themselves within scope.
Solicitors are a good example. A law firm that submits a Stamp Duty Land Tax return as part of a property transaction may well meet the definition, despite not considering itself to be a tax advisory practice.
This is why I believe firms should avoid making assumptions based purely on the nature of their business. Instead, they should consider the activities they actually undertake for clients and whether those activities involve interaction with HMRC.
There is one important exception. Businesses that already hold an HMRC Agent Services Account do not need to register again under the new regime. HMRC has said it will contact those organisations by the end of March 2027 to confirm they continue to meet the conditions required to act as a tax adviser.
For businesses that do need to register, the obligations do not necessarily end there.
The legislation also introduces the concept of ‘relevant individuals’. Where a business has six or more directors, partners or equivalent officers, it will need to identify those individuals who play a significant role in the management and decision-making of the organisation. For smaller firms with fewer than six directors or partners, every director or partner is treated as a relevant individual.
The definition extends beyond simply holding a formal title. Depending on how a business is structured, it could include senior individuals who exercise significant influence over management decisions, even if they are not directors or equity partners.
Registration also brings with it a number of conditions that firms must satisfy. Businesses must confirm they are supervised for anti-money laundering purposes where required, while both the organisation and its relevant individuals must be up to date with their own tax returns and tax liabilities.
Although these requirements are sensible and are likely to be met by the vast majority of professional firms, they do reinforce HMRC’s intention to increase accountability across the tax advice market.
For many organisations, the biggest challenge is likely to be recognising that the rules apply to them in the first place. Firms that only occasionally deal with HMRC on behalf of clients may not instinctively think of themselves as tax advisers, but the legislation is based on what a business does rather than how it describes itself.
With the registration deadline approaching, now is the time for professional firms to review the services they provide, understand whether they fall within the scope of the new rules and, where necessary, ensure they have completed the required registration.
As is often the case with tax legislation, the greatest risk is not failing to comply intentionally but not realising that the legislation applies in the first place.
If you would like to discuss how these changes may affect you or your business, please do not hesitate to get in touch with Martin or a member of our specialist team here.
