As an accountant, I have always believed that our profession should be held to the highest standards.
Our clients trust us with something incredibly important – their financial wellbeing – and that trust must be earned and safeguarded by the standards that regulate our profession.
That is one of the reasons I’m welcoming the Government’s latest move to require all tax advisers who deal with HM Revenue & Customs (HMRC) on behalf of clients to be formally registered.
Announced on so-called Legislation Day (L-Day) (21 July 2025) and due to come into force from 1 April 2026, this change will make it a legal requirement for any tax adviser who interacts with HMRC to be registered and meet minimum eligibility criteria.
Fundamentally, we at Scholes CA see this as raising the bar in the tax advice market – a positive step.
What does the new rule mean?
Under the Finance Bill 2025–26, a ‘tax adviser’ will be defined as anyone who, in the course of business, assists others with their tax affairs. That includes:
- Giving tax advice
- Acting as an agent in tax matters
- Preparing or submitting documents to HMRC
Registration will apply whether the adviser is based in the UK or overseas and covers all forms of HMRC interaction – phone calls, post, email, online submissions, or filing returns.
There are some exceptions – for example, in-house staff, software providers, customs and import VAT specialists, VAT representatives, advisers acting as part of a group undertaking, and those involved in court or tribunal appeals.
Why I think it’s a good idea
I’ve lost count of the number of times I’ve seen poor or misleading tax advice leave clients with unexpected liabilities, compliance headaches, or even penalties.
While most tax advisers are competent and ethical, a minority operate without proper oversight.
Hopefully, this new registration requirement will help HMRC identify and, if necessary, remove those who fail to meet basic professional standards.
The eligibility rules are clear and sensible – no outstanding tax returns or unpaid tax (unless under an agreed Time to Pay plan), no disqualifications or relevant convictions, and proper anti-money laundering registration.
In other words, if you can’t manage your own tax affairs or play by the rules, you shouldn’t be managing anyone else’s.
Raising trust and credibility
The tax profession relies on public trust.
If clients feel they could just as easily get advice from an unqualified, unchecked “adviser” as they could from a qualified professional, that’s a problem.
Mandatory registration creates a baseline – a signal to the public that their adviser has met essential standards before they can act on their behalf.
It’s not the whole picture – experience, qualifications and reputation still matter – but it’s a vital safeguard.
Will it create extra admin?
Yes, there will be an application process, and advisers will need to keep their details up to date.
HMRC has committed £36 million to modernise its systems to make the process as smooth as possible so, again, this seems like a step in the right direction.
Frankly, if an adviser finds this level of compliance too onerous, they might not be the sort of person clients should be trusting with their tax affairs in the first place.
My advice to fellow professionals
If you are a tax adviser or have senior managers in your practice, now is the time to:
- Review your own tax compliance – make sure filings and payments are up to date.
- Check any insolvency arrangements and consider the impact on eligibility.
- Get familiar with HMRC’s Standards for Agents.
This is a chance to demonstrate that you’ve met – and exceed – the standards our clients deserve.
Come April 2026, the message will be clear: if you’re advising on tax, you need to be accountable.
And in my view, that’s not just a good idea – it’s long overdue.
