Compliance

Compliance in the UK: HMRC Strengthens Powers Against Advisers Facilitating Non-Compliance

HMRC is introducing tougher rules for tax advisers who facilitate non-compliance, effective April 1, 2026. Here's what firms and practitioners must know to stay compliant.

By NomadicTax Research Team • 5-8 min read • November 19, 2025

## Overview of the New Adviser Regulatory Measures Starting **1 April 2026**, the UK’s HMRC will enact changes expanding its ability to target tax advisers deemed to facilitate non-compliance in clients’ tax affairs. These changes stem from recent legislation passed via the forthcoming Finance Bill 2025-26. ([gov.uk](https://www.gov.uk/government/publications/enhancing-hmrcs-powers-tackling-tax-adviser-facilitated-non-compliance/enhancing-hmrcs-powers-to-tackle-tax-advisers-who-facilitate-non-compliance?utm_source=openai)) Among the key enhancements are: - HMRC can now issue **file access notices** without needing tribunal approval, lowering the barriers for investigation. ([gov.uk](https://www.gov.uk/government/publications/enhancing-hmrcs-powers-tackling-tax-adviser-facilitated-non-compliance/enhancing-hmrcs-powers-to-tackle-tax-advisers-who-facilitate-non-compliance?utm_source=openai)) - Higher penalties when advisers provide **inaccurate information** or deliberately assist non-compliance. ([gov.uk](https://www.gov.uk/government/publications/enhancing-hmrcs-powers-tackling-tax-adviser-facilitated-non-compliance/enhancing-hmrcs-powers-to-tackle-tax-advisers-who-facilitate-non-compliance?utm_source=openai)) - HMRC may **publish information** about advisers who are sanctioned under the new rules. ([gov.uk](https://www.gov.uk/government/publications/enhancing-hmrcs-powers-tackling-tax-adviser-facilitated-non-compliance/enhancing-hmrcs-powers-to-tackle-tax-advisers-who-facilitate-non-compliance?utm_source=openai)) - Broader definition of conduct under “facilitating non-compliance,” including acts that were previously outside the scope of Schedule 38 of Finance Act 2012. ([gov.uk](https://www.gov.uk/government/publications/enhancing-hmrcs-powers-tackling-tax-adviser-facilitated-non-compliance/enhancing-hmrcs-powers-to-tackle-tax-advisers-who-facilitate-non-compliance?utm_source=openai)) ## Impacts on Tax Advisers and Their Clients For tax advisers, clients, and firms, these changes mean: - Increased **responsibility**: advisers’ actions—even seemingly small ones—are now more likely to lead to scrutiny if they assist clients in tax avoidance or evasion. - Urgency to **document advice carefully**, including rationale, alternatives considered, and compliance processes followed. - Potential **reputational risk**: publication of sanctions could affect client trust and market standing. - Businesses must examine past advice continuity: associations with previous clients or structures may be re-examined under new powers. ## How to Prepare and Comply **Tax advisers** should consider adopting best practices proactively: - Establish or review internal compliance policies to monitor conduct and discourage facilitation of non-compliance. - Maintain detailed files on advice given, including documented risk assessments and steps taken to avoid non-compliant outcomes. - Train staff on new rules, especially around file access notices and what constitutes facilitation. - Regularly audit client relationships and fee structures to ensure transparency. - For clients: ask your adviser for confirmation in writing that advice is compliant under the new standards; preserve correspondence and ensure good governance in tax-related decisions. ## Example: A Reminder of Risk Sarah, a tax adviser, gave clients a portfolio structure involving offshore income that technically minimized UK tax under old remittance rules. If, after **6 April 2025**, the advice fails to acknowledge the FIG regime and treats foreign gains as remitted vs arising basis incorrectly, this may be viewed as facilitating non-compliance. Under the new rules, HMRC could use file access notices and impose heightened penalties—and publish Sarah’s firm’s name. ## Key Takeaways for Practitioners - Starting **April 2026**, prepare for more aggressive HMRC enforcement. - Document and test your advice. Avoid ambiguous structures that may look aggressive under FIG / trust / non-dom rules. - Keep abreast of guidance: HMRC frequently updates manuals and practice statements around new powers. - If in doubt, seek external peer review or precedents, especially for cross-border advice. ## Conclusion With the changes strengthening HMRC’s powers against advisers who facilitate non-compliance, served by an evolved non-dom/residence regime, the UK is moving to rigour in tax compliance. For both advisers and taxpayers, diligence, documentation, and transparency are now not just good practice—they’ll be crucial for staying on the right side of the law.