New requirements for HMRC registration: commencing 18th May 2026
The Finance Act 2026 (the 2026 Act) has introduced significant new measures requiring tax advisors to register with HMRC. The definition of ‘tax advisor’ for this purpose is very wide, and many law firms in Scotland who may not regard themselves as providing tax advice could now be required to register.
We recommend that you read the full guidance from HMRC: Check if and when you need to register as a tax adviser with HMRC (opens a new window).
At time of writing the window for registration opens on 18th May 2026, and those firms required to register will then have three months to do so; see HMRC guidance, When to register (opens a new window). However, full guidance on how to register is yet to be released. We will update this page when guidance is published.
What are the new rules?
The relevant provisions of the 2026 Act are Part 7, Chapter 1, and Schedules 20,21 and 22.
These provisions stipulate that a tax adviser may not interact with HMRC in relation to the tax affairs of a client unless the advisor is registered (unless certain limited exceptions apply). They also provide the definition of a tax advisor.
Do we need to register?
Current guidance demonstrates how wide the definition of ‘interacting’ with HMRC in relation to another person’s tax affairs is, in that it includes simply being in contact with HMRC about that other person’s tax. A firm will be considered a tax advisor for the purpose of the registration requirements even by simply providing assistance with a document likely to be relied on by HMRC; see HMRC guidance: Who needs to register?
As the Law Society of Scotland have identified in their own update, this means that the requirement to register could apply not only to firms actually providing tax advice (for example in private client and executry work) but also to any firms submitting documentation to HMRC on behalf of clients (for example SDLT returns in English conveyancing transactions); see HMRC registration requirements for tax advisors (opens a new window).
Registration is at firm, rather than individual, level (unless of course you are a sole trader). However, certain ‘relevant individuals’ will need to be named in the registration process. The number of relevant individuals required will depend on the size of your firm and the number of partners or directors. For further guidance, see Check if you meet HMRC's conditions to register as a tax adviser (opens a new window).
How do we register?
This is unclear at present. HMRC guidance states that further information on the process will be issued before 18th May 2026. It is understood that registration will be an online process.
What are the risks of non-compliance?
Under the 2026 Act, firms and relevant individuals could be fined for interacting with HMRC without complying with registration requirements,
Orders declaring a firm ineligible for registration can also be issued following penalties for multiple breaches.
Suspension or removal from registration could directly impinge on a firm’s ability to carry out instructions for clients. There is also a risk of reputational harm as suspension of registration carries with it a requirement to notify clients.
How can we prepare for registration?
Steps you can take now to prepare for the new registration requirement include:
Checking the up-to-date guidance from HMRC and establishing whether your firm will need to register.
Identifying the ‘relevant individuals’ in your organisation.
Making diary entries to ensure that you meet the deadline for registration.
On a final risk management point, remember that registering as a ‘tax advisor’ with HMRC does not mean your firm is qualified to give tax advice! If you do not provide specialist tax advice, consider whether you are making this clear to clients. If appropriate, conduct a review of your letter of engagement to deal with provision of tax advice.
If you have any queries on this or other risk management issues, please contact Matthew Thomson at matthew.thomson@lockton.com (opens a new window) or Anna Forsyth at anna.forsyth@lockton.com (opens a new window)