What’s new in compliance
- Enhanced HMRC powers over tax advisers who facilitate non-compliance, coming into force from 1 April 2026. These include tougher sanctions and broader information-gathering. (gov.uk)
- Mandatory registration for tax advisers interacting with HMRC, with minimum standards, effective May 2026. (gov.uk)
- Increases to Corporation Tax late filing penalties: for returns due on or after 1 April 2026, fines go from £100 to £200, higher tiers also increase significantly. (gov.uk)
Who is affected
- Tax advisers and their clients—especially those relying on aggressive planning or avoidance strategies.
- SMEs and companies that file Corporation Tax returns; penalties for even minor delays will be higher.
- Individuals or businesses engaging overseas work or reliefs that require adviser involvement.
What to do now
- Register as required: if you are a tax adviser dealing with HMRC, ensure you apply and meet the upcoming standards.
- Review processes and documentation: strengthen due diligence and compliance systems—errors or omissions may lead to penalties.
- Train staff on new standards and expectations for behaviour.
- Plan filings in advance to avoid triggering late penalties—set internal deadlines ahead of HMRC requirements.
Example scenario
A set of small companies consistently file Corporation Tax updates late by one-month. Under the old rules, each late return was £100 fine; now post-April 2026 it becomes £200, and subsequent failures escalate rapidly. The compliance cost of delays becomes material.
Why this matters for advisers and businesses
- Avoidance of penalties and reputational harm—mistakes can be costly.
- Adviser firms will need stronger governance, more comprehensive record keeping, and greater transparency.
- Align behaviour now to avoid disruption once these policies take effect.
Category: Compliance • TaxHome: UK • Author: NomadicTax Research Team • ReadTime: 5-8 min • Published: true