Following the UK HMRC consultation that closed in May 2024, it’s been announced all UK tax advisers will have to register with HMRC. The consultation follows previous interaction with interested stakeholders as far back as 2018.
79% of the 426 written responses to the 2024 consultation agreed that the UK government should mandate registration for tax practitioners who wish to interact with HMRC.
Respondents had suggested that there was a:
- perceived lack of consistent consequences for engaging in unethical practices and
- proposed that a minimum level of qualification or experience should be introduced.
A few respondents also recommended providing statutory protection of titles such as ‘accountant’ and ‘tax practitioner’.
From 1 April 2026, all tax advisers (regardless of professional body affiliation) dealing with HMRC will be required to register under new Government rules aimed at reducing unethical practices. HMRC will apply checks to all tax practitioners who register. Further details will be announced later.
The process is part of a broader effort to
- regulate the tax advice industry and
- eliminate rogue practitioners offering substandard services.
There have been widespread concerns that unaffiliated tax advisers, currently unregulated, pose risks to clients and the tax system.
There are an estimated 85,000 tax advice firms (including accountants, bookkeepers, tax advisers/consultants, payroll professionals) in the UK (which HMRC say may be a small underestimate), of which roughly one-third are not members of professional bodies.
For more on engagement and representation letter templates and a variety of CPD webinars on money laundering and other accounting/audit related topics, please go to our website for:
- Our latest CPD Webinar on The Main Changes in Irish GAAP (recorded July 2024)
- Anti-Money Laundering Policies Controls and Procedures Manual (March 2022) — View the table of contents
- AML Webinar (December 2023) available here, which accompanies the AML Manual. It explains the latest legal AML reporting position for accountancy firms and includes a quiz. Upon completion you receive a CPD certificate for attendance in your inbox.
- Letters of engagement and similar templates—Please visit our website here where immediate downloads are available in Word format. A bulk discount is available for orders of five or more items bought together.
ISQM TOOLKIT, or if you prefer to chat through the different audit risks and potential appropriate responses presented by this new standard. We typically tailor ISQM training and brainstorming sessions to suit your firm’s unique requirements. Please contact John McCarthy FCA by email at john@jmcc.ie.
