What’s Changing?
From April 2026, all tax advisers interacting with HMRC on behalf of clients (such as limited company directors) must be registered with HMRC. This aims to raise standards and protect taxpayers from rogue advisers.
Why Does This Matter?
Currently, the tax advice market is unregulated. Some advisers follow professional standards, but others—either incompetent or outright fraudulent—put taxpayers at risk. Mandatory registration will:
- Improve HMRC’s oversight of tax advisers.
- Deter unscrupulous agents.
- Offer contractors more protection.
Who Needs to Register?
- Any tax adviser who deals directly with HMRC for clients.
- Some advisers (e.g., those working only in an advisory role) may not need to register.
- Currently, about 65% of tax agents are part of a professional body—this change adds another level of oversight.
Limitations of the New Rules
- The rules only apply to advisers engaging with HMRC, not all tax professionals.
- Some rogue agents might avoid registration by using clients’ HMRC credentials—already prohibited, but hard to police.
- HMRC’s existing agent checks are minimal—additional vetting is needed.
What Extra Checks Could Be Introduced?
HMRC may require registered agents to undergo:
- Criminal record checks
- Professional indemnity insurance verification
- Reviews of company websites
- Checks on previous business closures
- Confirmation of professional body membership
- Compliance history checks
What Should Contractors Do?
- Check if your adviser is a member of a professional body (e.g. CIOT, ICAEW).
- Verify their credentials using HMRC’s online resources.
- Watch for red flags—some agents may try to avoid registration by stopping direct HMRC interactions.
- Don’t assume HMRC registration means an adviser is officially endorsed—it’s just a basic requirement.
- Be prepared for fewer tax advisers in the market, as some may leave due to these changes.
- To ensure top-quality advice, choose an adviser who belongs to a recognized professional body—they adhere to ethical and professional standards, with complaint procedures in place.
Bottom Line
The new registration requirement is a step towards a more transparent tax advice market, but it won’t eliminate all risks. Contractors should take proactive steps to vet their advisers and ensure they receive reliable guidance.
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