New HMRC rule in 34 days means Brits could be left ignored | Personal Finance | Finance
A new HMRC rule coming into force next month could leave Brits in a financial bind. New legal requirements will mean people who interact with the department on behalf of customers must be registered and meet “minimum standards”. From 18 May 2026, HMRC will introduce an online system for agency services accounts, replacing the current method of registration. If a person interacts with the department about another person’s tax affairs and receives payment for doing so, officials consider him or her a consultant.
The government stated that “individual taxpayers may be affected if tax advisors are no longer able to act on their behalf or if tax advisors are sanctioned due to their failure to meet the new registration requirements.” If this were the case, they would not be able to legally act on behalf of their clients and would face fines of up to £10,000.
Authorities will be able to suspend their registrations for up to a year, requiring them to inform their customers.
They will not be able to interact with HMRC on behalf of their customers. If they do so, they may be sent a formal notice asking them to stop or may be temporarily or permanently banned from registering. Consultants will be given three months from the date they must register to apply for an agency services account.
They can continue to engage with HMRC on their own behalf during this period and while the department considers their application. Accountancy firm Moore Kingston Smith advised that, as well as individual advisers, law firms may also find themselves affected, even if tax work makes up only a small part of their overall business.
He added that HMRC would have the power to suspend a firm’s registration if registration conditions were breached or the tax adviser’s behavior fell below standards.
Moore Kingston Smith said: “As this will have a significant impact on a firm’s ability to conduct its tax affairs, we hope that not only will HMRC work with firms to detect and correct minor breaches, but that detailed guidance on the new requirements will establish a clear process for this.” he said.
“Financial penalties may apply if a firm attempts to engage with HMRC without being registered or if its registration is suspended.
“Given the imminence of these changes and the consequences, both financial and non-financial, of non-compliance, you should review your firm’s position as soon as possible.”
