In a significant move to regulate the UK’s tax advice sector, the government has confirmed that all tax advisers will be required to register with HMRC from 1 April 2026. This mandate is part of a broader effort to raise standards within the profession and clamp down on unethical practitioners. The new rules will target those who provide substandard or unscrupulous tax advice, aiming to protect both taxpayers and the integrity of the tax system.
The requirement for mandatory registration comes after a series of consultations and growing concerns over the unregulated nature of tax advice in the UK. Currently, there are no requirements for technical competence to practice, meaning anyone can offer tax advice with little to no oversight. The government aims to address this by introducing a system where all advisers are checked to ensure they meet minimum standards.
Details of the new system
Under the proposed system, all tax practitioners interacting with HMRC on behalf of clients will need to register with the tax authority. HMRC will also be allocated £36 million to modernise its registration system to accommodate the influx of advisers requiring oversight. Although the details of the registration process are still being finalised, HMRC will conduct initial and periodic checks to ensure that registered advisers meet the expected standards.
There are currently three options under consideration for how this registration will be overseen:
- Oversight by professional bodies, requiring all tax advisers to be members.
- A joint enforcement model between HMRC and the tax industry.
- The creation of a new independent regulator to manage the process.
The government has yet to confirm which approach will be adopted, with further consultation expected in the coming months. Regardless of the final decision, the system will cover all tax advisers, including those who are not members of professional bodies such as ICAEW, CIOT, ATT, or ACCA.
Raising standards in the profession
Professional bodies within the industry have welcomed the decision to implement mandatory registration, seeing it as a positive step towards improving standards and providing better protection for clients. It is estimated that one-third of tax practitioners in the UK are not affiliated with any professional body, making it difficult for clients to assess their competence.
One of the key issues raised during the consultation was the lack of supervision for tax advisers who are not members of professional bodies. Many respondents called for stricter entry requirements, such as qualifications or relevant work experience, to ensure that only competent individuals can provide tax services.
There are also concerns that the lack of regulation has allowed dishonest practitioners to operate with impunity, often to the detriment of both their clients and the tax system as a whole. By introducing mandatory registration, the government aims to create a comprehensive register of tax advisers that will be subject to ongoing monitoring and oversight.
Additional reforms and future consultations
In addition to the new registration requirements, the government will also introduce reforms targeting tax refund firms and advisers involved in promoting tax avoidance schemes. From April 2026, tax practitioners submitting income tax repayment claims on behalf of clients will be required to obtain an Advanced Electronic Signature to prove they have been authorised by the client to make the claim.
The government will also consult on further measures to enhance HMRC’s ability to act against advisers who facilitate non-compliance, particularly those who promote tax avoidance schemes. These reforms are intended to complement the new registration system and provide HMRC with more tools to tackle unethical practices.
A technical consultation on the draft legislation will be published before the 2025 Budget, with further details expected to be communicated to stakeholders in due course. The next 18 months will see continued engagement with the industry to refine the proposed framework and ensure that it is both robust and practical.
James Murray, Exchequer Secretary to the Treasury, said:
“There is a minority of practitioners who cause harm, to their clients and to the wider tax system. This government is committed to addressing these issues by tackling harmful actors and raising standards in the tax advice market.”
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