As part of announcements in the Spring Statement 2025, the government have launched a further consultation seeking views on whether HM Revenue and Customs (HMRC) powers are effective in dealing with non-compliance facilitated by some tax advisers.
It will be of particular interest to tax advisers, their clients or potential clients and tax and accountancy professional and regulatory bodies.
The consultation asks for views on a complementary suite of potential measures:
- whether HMRC’s current powers are effective in dealing with non-compliance facilitated by tax advisers
- enhancing HMRC’s powers to investigate tax advisers where HMRC suspects their actions have led to an inaccuracy in a taxpayer’s document
- to enable HMRC to request information from tax advisers where HMRC suspects misconduct
- introducing stronger penalties against tax advisers who contribute to the tax gap
- publishing details of HMRC sanctions on tax advisers
- disclosures to professional bodies regarding concerns about their members’ activities that falls below the normal disciplinary
James Murray MP, Exchequer Secretary to the Treasury:
Most tax advisers in the UK are dedicated professionals who adhere to rigorous standards, helping millions of taxpayers pay the right tax. However, a minority of advisers fall short of these standards. Their actions can facilitate non-compliance and contribute to the tax gap. This undermines trust in both the tax system and honest tax advisers.
I am committed to closing the tax gap and ensuring that everyone pays their fair share. This consultation seeks views on a range of measures to enhance HMRC’s powers and sanctions against tax advisers who cause harm to the tax system. The proposed measures aim to enable HMRC to take swifter and stronger action and ensure there is no place for bad actor business models in the UK tax advice market.
I welcome views on expanding the circumstances in which penalties can be charged to tax advisers, introducing more robust information-gathering powers, broadening the scope of disclosures to professional bodies and the public, and introducing stricter penalties for non-compliance. These measures are designed to deter non-compliance, improve accountability, and reduce revenue loss attributable to the worst tax adviser behaviours.
The proposals outlined in this consultation are the result of extensive engagement with stakeholders. I believe these changes will not only protect the exchequer and taxpayers but also uphold the reputation of the tax advice profession and ensure a level playing field for all.
I invite all stakeholders, including tax advisers, professional bodies, and taxpayers, to engage with this consultation and share their views. Your feedback is vital in shaping a tax system that is fair, efficient, and trusted by all.
What about payroll professionals and payroll service?
As part of prior proposals in regulating the tax advice market, it has been clear that payroll service are likely to be classified as tax advisers. Proposals also promote an intention for registration from April 2026!
Will payroll now be classified as tax advisers, will they need to comply with Anti-Money Laundering regulations, will they need to be regulated, who is the regulatory body for payroll services in the UK?
PAYadvice.UK 27/3/2025