Further to previous posts on the subject of the new HMRC tax adviser registration requirement, HMRC has finally provided substantive guidance on who the regime applies to (see here).
The definition of a ‘tax adviser’ for the purposes of the underlying legislation (Finance Act 2026) is “an organisation or individual which, in the course of a business, assists other persons (‘clients’) with their tax affairs.” The guidance states that ‘assistance with a client’s tax affairs’ includes (but is not limited to):
- advising a client in relation to tax
- acting, or purporting to act, as agent on behalf of a client in relation to tax
- assisting with the preparation of, or providing input into, any document that HMRC is likely to rely on in determining a person’s tax position
as long as the assistance provided involves interaction with HMRC and is given in the course of a business. As we have mentioned previously, the essential message is that if you interact with HMRC about someone else’s tax affairs and get paid for it, you will be required to register with HMRC as a tax adviser, even if you do not see yourself as providing ‘tax advice’ in the usual sense. ‘Interaction’ with HMRC includes contact by phone, post, email, via the HMRC website or app, as well as sending returns, claims or other documents or making payments to HMRC on behalf of clients.
There is a lot of focus on residential conveyancing firms who submit SDLT returns on behalf of clients, or otherwise interact with or make payments to HMRC about a client’s SDLT liabilities, or any other taxes arising from property transactions. However, it is not just conveyancers who are impacted. As the SRA’s recent update states, if you manage a client’s tax affairs, for example as an executor or under a deputyship, you will also likely need to register. Given the definition referred to above, the regime will likely apply to firms carrying out probate, trusts, private client and corporate work as well as conveyancing, if you interact with HMRC about any taxes, such as IHT and CGT for example. Even if you outsource some of this work, you will need to register with HMRC, as will the outsourced provider.
Where this applies to your firm, you need to apply for an Agent Services Account with HMRC and provide the requested information by 18/8/26. If you already have such an account, no action is required until HMRC contact you to make the necessary arrangements.
Don’t get caught out!
It is important to note that:
- an Agent Services Account is not the same as having an account for the SDLT online filing system, an HMRC corporation tax account, or having any other existing way of interacting with HMRC. If you think you already have such an account, do double check that you have the correct account. The deadlines for when tax advisers must register depend on the type of account you already hold (see this page of the HMRC guidance for further details).
- being authorised by the SRA under Regulation 11(d) of the Money Laundering Regulations (MLRs) as a ‘tax adviser’ (which brings that work into scope of the MLRs) is not the same as being registered under the HMRC regime. These are two separate requirements which must both be considered (and actioned where applicable). However, they are linked to a certain extent in that HMRC requires confirmation of appropriate AML supervision as part of the HMRC registration process.
- both the HMRC regime and the MLRs regime in relation to ‘tax advisers’ apply even if you don’t see yourself as actually providing tax advice. Confusing? Well, yes! You can be a ‘tax adviser’ under these regimes (albeit with different criteria for each) without providing substantive tax advice to clients. And, just to add to the confusion, the HMRC guidance states that if you only provide advice (e.g. explaining the tax consequences of a property transaction to a client) without interacting with HMRC, you will not be deemed a ‘tax adviser’ for HMRC purposes, despite this sounding much more like being a ‘tax adviser’ to a lay-person, than simply submitting a form on a client’s behalf!
- from 18/8/26, HMRC will not accept communications on a client’s behalf from anyone not registered with an Agent Services Account, so ensure your registration with HMRC is complete in good time before then. (It is also possible that you will be banned from registration thereafter if you fail to meet the deadline).
- clients may be confused about your tax adviser status and what this means in terms of the advice you will/ will not provide. To reduce this risk, we recommend that you update your terms of business and make your position regarding substantive tax advice clear in your engagement letters. (Retainer clients will already have received our updated template documents to assist with your own review).
What does the future hold?
Whilst the HMRC guidance focuses solely on who is required to register and how the registration process work, it doesn’t seem too far-fetched to assume that going forwards, this regime will result in HMRC paying closer attention to law firms’ involvement in tax-related issues with their clients. Now would therefore be a good time to review your processes in terms of tax calculations and submission of forms on behalf of clients, whether they are referred to tax specialists for assistance, how this work is supervised and, as ever, ensure that your thought processes and conclusions are documented carefully…i.e. show your workings!