The summary of responses, published alongside the Budget, confirms that:  

• from April 2026, tax practitioners wishing to interact with HMRC on behalf of clients will need to register with HMRC. Compulsory registration should provide HMRC with better scrutiny of tax practitioners operating on clients’ behalf and will give greater confidence to taxpayers who use these practitioners. HMRC will publish a technical consultation on the legislation ahead of Budget 2025; 
• tax practitioners wishing to submit an income tax repayment claim on behalf of a client will be required to obtain an advanced electronic signature from their client to prove they have been authorised to make the claim; and
• the government will publish a consultation on tackling rogue tax advisers. HMRC will shortly consult on options for stronger sanctions against practitioners who behave in ways that enable their clients to pay the wrong amount of tax. It is proposed that any new measures would apply from 2026 onwards. 

In relation to the wider question about raising standards in the tax advice market and potential regulation of the tax profession, the summary of responses highlights that many respondents raised concerns about the costs and burdens associated with any regulatory intervention.  

The government agrees that in order to address the problems in the tax services market, any intervention should be proportionate and well-designed. The government will therefore reflect further on the responses to the earlier consultation, and it will continue to work closely with the tax services sector to consider options to strengthen the regulatory framework of the tax advice market.  

ICAEW’s Budget webinar 

To learn more about the measures discussed above, and other changes announced at the Budget, join members of the Tax Faculty at the Budget webinar on Friday, 1 November 2024. Attending the webinar could contribute up to 1.5 hours of verifiable Continuing Professional Development (CPD), providing you can demonstrate that the content is relevant to your role.