Mandatory Registration with HMRC - FAQs

Registration will be required for any ‘tax adviser’ who interacts with HMRC in relation to the tax affairs of their clients, regardless of where in the world they and their clients are located.

A tax adviser is defined in the legislation as an organisation or individual who, in the course of a business carried on by them, assists other persons with their tax affairs. 

Assisting with tax affairs is broadly defined to include:

• Providing advice in relation to tax
• Acting or purporting to act as an agent on behalf of the other person in relation to tax
• Providing assistance with any document that is likely to be relied on by HMRC to determine the other person’s tax position. 

Interacting with HMRC includes:

• Contacting HMRC by telephone, post or email
• Sending a message to HMRC through a website or online portal
• Filing returns, claims, notices or other documents with HMRC
• Communicating with HMRC in any other way.

In summary, tax advisers looking to file a return on behalf of their client, or contact HMRC on their behalf will be required to register.

Registration is required at firm level.  However, as set out below, certain registration conditions can still apply to individual staff members within the firm and individual officers of the firm (including partners, directors, and LLP members).

Where a tax adviser operates as a sole trader, they will need to register under their own name.

There are limited exceptions to the requirement to register.

HMRC have confirmed that those providing pro-bono tax advice and “in-house” tax advice to their own business or their employer’s business do not need to register, as they do not fall within the definition of a tax adviser.

Schedule 19 of Finance Bill 2025-26 sets out a limited list of exemptions from registration when a tax adviser interacts with HMRC on behalf of a client, which includes:

• Providers of payroll, tax or accounting software interacting with HMRC in that capacity.
• Tax advisers interacting with HMRC in relation to a client who is a group undertaking in relation to the adviser.
• Where the adviser interacts with HMRC in relation to an appeal to a court or tribunal.
• Where the adviser is interacting with HMRC in response to a request by them.
• Where the adviser is interacting with HMRC on behalf of clients because the law requires them to provide specific information (for example, some pension or investment firms)
• VAT representatives, UK representatives and Northern Ireland (NI) tax representatives.
• Those acting in relation to certain customs duty, excise and import tax matters

Agents who already have an Agent Services Account (ASA) are not exempted from the requirement to register, but HMRC have confirmed that there will be a separate lighter touch ‘transition’ process for existing agents to the new registration system (see below).

Registration will be rolled out from May 2026 with a transition period of at least three months for all tax advisers, but with more time given to tax advisers who are already registered with HMRC or need more time to comply (which we understand will likely be overseas advisers).

The exact timetable is not yet known.

Note that those who already have an Agent Services Account (ASA) will not be exempt from the registration requirements but are expected to have a lighter touch ‘transition’, to move their existing account across to the new registration system (although we do not yet know what this will look like).

Registration is expected to be via a new dedicated online system, which is currently being developed by HMRC and is not yet available.

We understand that those with an Agent Services Account (ASA) will be transitioned across and have a lighter touch requirement when it comes to registration, but no details have yet been released as to how this will work. It is expected that this will involve the existing agent identifying who their relevant individuals are, those relevant individuals providing permission for HMRC to share their personal data with their firm (where related to the registration conditions) and the agent confirming that their firm meets the registration conditions.

Tax advisers who already have an ASA will be able to continue to interact with HMRC in the meantime.

No – HMRC will not levy charges for initial registration, or to stay on the register.

The exact format of the application form is not known at present, but what is known is that the application for registration must include:

• The name and address of the firm
• The name of each ‘relevant individual’ in the firm (see below)
• A statement that each of the registration conditions are met, or where these are not, an explanation why (see below)
• Any other information as HMRC may specify in a notice (no such notice has been published to date)

HMRC will consider the registration application and decide whether or not to approve it. They will then notify you of their decision.   

There is no time limit placed on HMRC to respond to a registration request. We are asking for clarity to be included in HMRC guidance.

If the conditions are met, HMRC must approve the registration. 

Where the conditions are not met solely by virtue of the firm or a relevant individual having a tax return or payment outstanding (see below), HMRC may still approve the application if they consider it to be appropriate based on pre-determined thresholds and circumstances. However, details of these have not yet been published.

The relevant individuals are, essentially, those individuals with responsibility for the tax work undertaken by the firm.  However, for some firms the definition may be wider than this in practice as there are minimum numbers of ‘relevant individuals’ who must be named on registration.

The number of relevant individuals to be named depends on how many ‘officers’ the firm has.  For these purposes, officers include company directors, partners in partnerships, members of LLPs etc (please see below).

It is important to note that the legislation does not cap the number of relevant individuals at five.

Firms with five or fewer officers are required to name:

1. Each officer of the firm; and
2. Every other individual working for them, who plays a significant role;
   - in making decisions about how the whole or a substantial part of the tax adviser    activities are to be managed or organised; or
   - the actual managing or organising of the whole or a substantial part of those    activities.

For example, a four partner firm would be expected to name all four partners and any employees who meet the definition of a ‘relevant individual’. If there were two employees who meet the definition, this firm would have six ‘relevant individuals’.

Firms with six or more officers are required to name:

1. Each individual (whether officers or employees) who plays a significant role in;  
   - making decisions about how the whole or a substantial part of the tax advice    activities are to be managed or organised; or
   - the actual managing or organising a substantial part of those activities; and
2. If there are fewer than five officers identified in 1., additional officers to ensure that at least five officers are identified as relevant individuals.

For example, a ten partner firm which includes three tax partners would have to name:

• Each individual who plays a significant role in overseeing the tax work – the three tax partners and any employees, provided they all meet the ‘relevant individual’ definition; and
• At least another two partners of their choice to ensure that there are at least five officers identified. Of course, the firm may choose to name more partners if they wish.
• In this scenario, if there were two employees who met the definition of a ‘relevant individual’, this firm would have seven ‘relevant individuals’ (i.e. the two employees, the three tax partners and two other partners chosen by the firm).

Choosing which other partners to name will be an important decision, as all named relevant individuals have to meet specific registration conditions (see below).

We have fed back concerns to HMRC that the definition of ‘relevant individual’ is very broad in the legislation and may be difficult to interpret and are recommending that HMRC include detailed examples within published guidance.

For the purposes of the tax adviser registration, an officer means:

• a company director
• a partner in a partnership
• a member of a body corporate, such as an LLP member
• an officer who responsibilities align with those of a company director and
• any equivalent roles in other types of organisations (such as different kinds of overseas entities)

As noted above, on registration firms must either confirm they meet three registration conditions or explain why they do not.

The conditions are:

1. That the tax adviser and each of the relevant individuals:
   • - does not have any outstanding tax returns or payments (unless a time to pay    arrangement has been agreed and not broken),
   • - is not subject to a decision by HMRC to refuse to deal with them,
   • - is not subject to a relevant anti-avoidance measure,
   • - has not, in the last 12 months, had a relevant anti-avoidance penalty imposed on    them,
   • - is not subject to a relevant suspension or ineligibility order,
   • - is not disqualified as a director in the UK, or overseas,
   • - does not have an insolvency practitioner acting in relation to them and
   • - does not have an unspent conviction for a relevant offence.
2. The tax adviser is registered for AML supervision or meets such conditions about applying to register for supervision as may be specific in a HMRC notice (no such notice has yet been published).
3. The required number of relevant individuals has been identified (see above).

Once registered, HMRC will monitor ongoing compliance with the registration requirements, and any subsequent failure to meet them may result in an adviser’s registration being suspended (see below).

HMRC also has the power to suspend a tax adviser's registration in certain circumstances, including where their behaviour does not meet expected standards (see below)

Firms or relevant individuals based overseas are expected to have the same registration conditions but will need to provide different information or evidence than UK based firms in order to prove that the registration conditions have been met.  HMRC may specify these requirements in a notice.  However, details have not yet been published.

If a firm fails to register and attempts to interact with HMRC they can be served with a ‘compliance notice’.  This notice can be treated as withdrawn if the firm subsequently registers.

If a firm attempts to interact with HMRC after a compliance notice has been served (and without it being treated as withdrawn) then financial penalties can apply for both the firm and/or any relevant individual that HMRC deems should be held responsible.

These penalties will increase if there are repeated attempts to interact with HMRC without being registered and the firm / relevant individual may even be banned from registering permanently.

Yes.

HMRC will monitor compliance with the registration conditions and, where these are not met, can suspend the firm’s registration.

In addition, HMRC may suspend a firm’s registration for up to 12 months if they consider that the tax adviser has, in the course of interacting with HMRC, behaved in a manner which has fallen below the standards that might be ‘reasonably expected of a tax adviser’ in their interactions with HMRC.  In considering this, HMRC will have regard to any provisions of a “relevant HMRC standard” which may be specified for these purposes in a notice (no such notice has been published to date) – for more on this see below.

Before moving to suspend a firm’s registration, HMRC must notify the firm and give them 30 days to either meet the relevant condition or make representations.  This period is extended to 60 days where the breach relates to a late filed return or late tax payment by the tax adviser or a relevant individual.

If a firm attempts to interact with HMRC whilst suspended, they face the same sanctions as set out above for unregistered firms.

Yes.

Firms can appeal against HMRC decisions regarding a registration application or suspension. Firms can also appeal against the issue of a compliance notice, assessment of a financial penalty, and decisions regarding an application for temporary relief (see below).

The suspension of a registration will not be automatically put on hold pending the outcome of an appeal, but firms can apply for temporary relief from suspension.   

Where a registration has been suspended due to a late filed return or late tax payment by the tax adviser or a relevant individual, HMRC must approve an application for temporary relief from suspension. Where a registration is suspended for any other reason, HMRC may approve an application for temporary relief, having regard to the likely success of an appeal and if the firm demonstrates that they would be unable to continue as a going concern if the suspension is not put on hold pending the outcome of the appeal.

As set out above, HMRC can suspend a firm’s registration for up to 12 months where they believe their conduct in dealing with HMRC falls below expected standards.  More details on these expected standards will be set out in due course in an HMRC notice and we hope to work with HMRC to gain clarity regarding the expected standards of conduct. However, we currently anticipate that these standards will not exceed those set out in PCRT, and therefore compliance with PCRT should be sufficient.  

For further guidance on meeting the principles and standards of PCRT when undertaking tax work, members should refer to the current edition of PCRT, effective 1^st January 2026, and available on the ATT and CIOT websites.

In the run up to registration being introduced, firms should consider:

• Identifying which employees have a role in managing or making decisions around a substantial part of tax adviser activities
• Who will their relevant individuals be
• How many relevant individuals they will be required to identify
• Whether they have existing internal processes to identify that ‘relevant individuals’ have no outstanding tax returns or payments, and whether these processes need to be put in place or updated (as relevant)
• A review of the principles and standards set out in the latest edition of PCRT which all members and students are expected to meet when undertaking tax work. Firms should consider documenting how the firm complies with these principles and with any provision which, if contravened, could cause the firm or a relevant individual to fail a registration condition. Firms should also revise existing procedures where they are unclear
• Checking and documenting that the firm and relevant individuals all meet the registration conditions
• Checking that any directors’ or partners’ agreement permits the removal of someone from their role if they become a relevant individual and fail to meet requirements
• Ensuring there is a process in place in the event of a situation where HMRC suggests and also does suspend a firm’s registration

The legislation on registration is included in Part 7, Schedule 19 and Schedule 20 of Finance Bill 2025-26, published here.

HMRC have promised that guidance will be published in advance of registration coming into force.