The consultation was published alongside the Spring Statement on 26 March 2025. The changes proposed by HMRC are in addition to the Autumn Budget 2024 announcement that all tax advisers who interact with HMRC must register with HMRC from April 2026.   

The introductory paragraphs to the consultation acknowledge that tax advisers play an important role in providing advice and services, that competent tax advisers add real value to the UK tax system and that only a minority are causing harm. However, ICAEW members are already expressing concern that, without adequate safeguards, the proposed powers could be widely applied. 

This consultation has a short six-week window. If you have any feedback that you would like ICAEW to consider for inclusion in its response, please contact Lindsey Wicks by Wednesday 23 April. 

What changes are proposed? 

The measures proposed in the consultation include:

• Expanding HMRC’s information powers. HMRC’s existing powers under Sch 38, Finance Act 2012 (FA 2012), which apply to tax advisers engaged in dishonest conduct, could be revised to enable HMRC to request information from tax advisers in wider circumstances and without tribunal approval.
• Reviewing the threshold for charging penalties. Options for strengthening the penalties that may be charged under Sch 38, FA 2012 include basing penalties on the potential loss of revenue caused by the tax adviser’s actions, or the fee charged by the tax adviser.
• Broadening the scope of disclosures to professional bodies. HMRC could make reports outside of the public interest disclosures process where the tax adviser’s behaviour does not constitute misconduct but still causes concern for HMRC. Examples could include:
• repetition of similar errors despite HMRC intervention;
• low technical awareness and/or ability in an area where the tax adviser is particularly active;
• isolated incidents, or first instances, of unprofessional behaviour, or obstruction; and
• instances where a tax adviser has failed to keep their own tax affairs or filing of returns up to date.
• Widening the scope of publication of the tax adviser’s details. The tax adviser’s details could be published on GOV.UK when they have not kept their own personal or business tax affairs up to date or where they are the subject of an HMRC sanction, such as suspension of their agent code or where the processing of repayment claims has been paused.

Who is in scope? 

HMRC’s intention is for the proposals to apply to “tax advisers who act by way of business, whether in the UK or overseas, and who provide tax advice or services in relation to UK tax". This includes tax advisers who interact directly with HMRC (eg, to submit a tax return) and others, such as specialist tax advisers and bookkeepers, who do not deal directly with HMRC but may “provide tax advice or services to a taxpayer which leads to an inaccuracy in a return”.  

What behaviour is HMRC seeking to address? 

The consultation includes the following examples of behaviour by tax advisers which HMRC believes has facilitated non-compliance: 

• providing tax advice to clients which results in inaccuracies in the clients’ returns;
• submitting claims for research and development tax relief where the requirements for claiming relief were not met; and
• encouraging taxpayers to submit claims for repayments of income tax without checking whether the taxpayer was entitled to the repayment. 

Further information 

• Visit ICAEW’s Spring Statement hub