Draft Legislation: Modernising and mandating tax adviser registration with HMRC

The ATT has commented on draft legislation on Modernising and mandating tax adviser registration with HMRC avoidance (‘the Consultation’) which was issued on 21 July 2025.

The proposed legislation introduces a legal requirement for tax advisers who interact with HMRC on behalf of their clients to register with HMRC and meet minimum standards.

In the ATT’s response, we acknowledged that mandatory registration marks the first step in the Government’s two-part strategy to raise standards in the tax advice market. This initial measure is aimed at improving visibility and oversight of tax advisers operating within the system.

However, we highlighted a key concern: the proposals will not capture those who provide tax advice without directly engaging with HMRC—for example, individuals advising on claims or allowances but not involved in filing returns. As a result, a significant portion of advisers may remain outside the scope of oversight and continue to operate with limited visibility or accountability.

We welcomed confirmation that the Agent Services Account (ASA) system will transition into the new registration framework. However, we have asked for greater clarity on how ASA holders will demonstrate compliance with the new requirements, and the timeline for doing so.

We also stressed the importance of clearly articulating the purpose and benefits of registration. Without this, advisers may perceive it simply as an additional administrative burden, rather than a meaningful step towards improving standards and protecting taxpayers.

Finally, we encouraged the Government to consult on whether the provision of tax advice should become a regulated activity, restricted to approved and supervised individuals or entities, as is the case for insolvency practitioners, probate providers, and statutory auditors. Such a move could provide more consistent oversight across the sector, and extend protection to taxpayers regardless of whether their adviser is required to register with HMRC.