Introduction
From 1 April 2026, significant new legal powers and sanctions will come into force in the UK to tackle advisers who deliberately facilitate tax non-compliance. These changes are part of the 2025 Budget and Finance Bill 2025-26. (gov.uk)
This article explains:
- who is affected
- what obligations and risks are introduced
- how taxpayers and advisers should prepare
Who is affected
- Tax advisers—including individuals, firms, or corporate entities—who assist clients in UK tax matters and may facilitate under-reporting or avoidance. (gov.uk)
- Clients of these advisers who may be exposed if their adviser is found to have facilitated deliberate non-compliance. (gov.uk)
What changes take effect on 1 April 2026
| Change | Key Details |
|---|---|
| Power to issue file access notices without tribunal-approval | HMRC can issue a file access notice if it has a reasonable suspicion of adviser-facilitated non-compliance; tribunal approval replaced by senior officer sign-off. (gov.uk) |
| Stronger penalty framework | Penalties for failure to comply (or providing inaccurate info), enhanced penalties for deliberate non-compliance, including penalties based on tax loss. Repeated offences face higher penalties. (gov.uk) |
| Publication of sanctioned advisers | HMRC gains new power to publish details about advisers found facilitating non-compliance. (gov.uk) |
| Mandatory registration | From April 2026, all tax practitioners interacting with HMRC on behalf of clients must register and meet minimum standards. (gov.uk) |
Risks and obligations for clients
- If your adviser is sanctioned, clients may face delays, loss of trust, or reputational harm.
- You must ensure your adviser is registered and compliant under the new rules.
- When delegating work (e.g. claims, returns), insist on written authorisation and clarity on standards the adviser upholds.
Practical examples
- A business uses an overseas adviser who claims a large deduction. HMRC reasonably suspects deliberate misstatement. They issue a file access notice under the new powers. If adviser cannot justify, both adviser and possibly client face penalties.
- A sole trader hires a tax agent who submits incorrect returns repeatedly. Under the new regime, agent gets higher penalties; their name could be published. The trader should consider engaging a practitioner bound by professional body standards.
Actionable steps
- Check your adviser’s registration status with HMRC, ensuring they are compliant.
- Review agreements to include standards of conduct, liability clauses, and authorisation mechanisms.
- Maintain clear records of advice received—emails, drafts—so you can defend if any issue arises.
- Stay updated on HMRC guidance, especially relating to the Standard for Agents and the new penalty structure.
Conclusion
These changes reflect UK government’s drive to shore up the integrity of the tax system. For taxpayers, the best protection is choosing a reputable adviser, ensuring proper registration, and documenting everything. Once these new rules take effect, the cost of mis-advice will be higher than ever – legally, financially, and reputationally.