Entity Setup
New Tax Adviser Powers: What UK Tax Professionals and Their Clients Must Know
Reforms increasing HMRC’s powers over tax advisers take effect from April 2026—understand how this changes expectations, exposure, and compliance for tax professionals and their clients.
By NomadicTax Research Team • 5-8 min read • April 20, 2026
## Policy Shift Overview
- Legislation introduced via **Finance Bill 2025-26** will significantly enhance HMRC’s authority to tackle **tax adviser-facilitated non-compliance**, including deliberate misreporting or hiding client non-compliance. ([gov.uk](https://www.gov.uk/government/publications/tackling-tax-adviser-facilitated-non-compliance/tackling-tax-adviser-facilitated-non-compliance-by-enhancing-hmrcs-powers?utm_source=openai))
- From **1 April 2026**, the amended Schedule 38 of the Finance Act 2012 will be operative: file-access notices, increased penalties, and new sanction frameworks. ([gov.uk](https://www.gov.uk/government/publications/tackling-tax-adviser-facilitated-non-compliance/tackling-tax-adviser-facilitated-non-compliance-by-enhancing-hmrcs-powers?utm_source=openai))
- HMRC will be able to **publish details of advisers sanctioned** for deliberate conduct. ([gov.uk](https://www.gov.uk/government/publications/tackling-tax-adviser-facilitated-non-compliance/tackling-tax-adviser-facilitated-non-compliance-by-enhancing-hmrcs-powers?utm_source=openai))
## What It Means for Tax Advisers
- Be ready to respond to file-access notices where HMRC suspects adviser-led wrongdoing—failure or inaccurate responses can lead to penalties.
- Tribunal approval is removed for issuing file-access notices; instead, HMRC senior officer approval suffices, with right to appeal. ([gov.uk](https://www.gov.uk/government/publications/tackling-tax-adviser-facilitated-non-compliance/tackling-tax-adviser-facilitated-non-compliance-by-enhancing-hmrcs-powers?utm_source=openai))
- Potential reputational risk: publication of sanctions draws public scrutiny.
## Implication for Clients
- Having engaged reputable advisers and clearly documented advice becomes more critical.
- Clients should ensure their advisers are transparent and follow HMRC’s Code of Practice.
- Agreements with advisers should set expectations on compliance, record-keeping, duties to notify if advice may conflict with law.
## Example (Adviser & Client)
**Adviser X** helps client Y structure income to reduce liabilities. If HMRC believes Adviser X **deliberately facilitated** this, HMRC can issue notice to view all files, impose penalties, and publish the offence. Even without formal regulation, advisors now face stronger accountability.
## Preparing for 1 April 2026
- Tax advisers should review internal compliance processes: risk assessment, documentation, client fact-finding.
- Keep records of advice, emails, client instructions. Ensure you are prepared if file access or conduct notices are issued.
- Consider registering with industry bodies; follow guidance to manage ethical standards and reputational exposure.
- Clients should ask for clear terms; request written advice and ensure that your adviser is open about risk and HMRC obligations.
> These reforms mean that from Spring 2026, the burden of compliance increases—not just for taxpayers, but for the tax advice market too.