Mandatory registration as a tax adviser with HMRC: Suspensions, sanctions and appeals

From May 2026, anyone who interacts with HMRC about someone else’s tax affairs and is paid to do so, will need to register with HMRC as a tax adviser. The second part of HMRC’s high-level guidance has now been published, dealing with suspensions, sanctions and appeals.

We looked at the first part of HMRC’s guidance about who needs to register (and the registration timetable) in an earlier article. This article considers the second part of HMRC’s high-level guidance which deals with suspensions, sanctions and appeals. 

We're involved in ongoing discussions with HMRC about implementation and guidance, and understand that HMRC intends to publish more detailed technical guidance on some aspects of registration, including 'relevant individuals'. 

As part of our discussions with HMRC, we're sharing members’ feedback for consideration. If you have any questions, issues or specific examples not covered by the existing guidance, please get in touch using the contact details at the end of this article.  

Interacting with HMRC when unregistered or suspended as a tax adviser

Advisers who interact with HMRC on behalf of clients while unregistered or suspended may be subject to sanctions. HMRC will contact advisers before acting and, where possible, will support them to comply before applying a suspension or other sanction. 

Advisers will have a three-month transition period from the date they need to register. No sanction will be applied where the adviser has applied to register but is waiting for HMRC’s decision.

Suspension of registration 

HMRC may suspend a tax adviser’s registration where: 

• The adviser does not meet the registration conditions.
• HMRC considers their behaviour to be below its standard for agents.

Once suspended, the adviser will be unable to access their Agent Services Account and should not interact with HMRC on behalf of clients while the suspension is in place.

If an adviser is suspended for more than 30 days (or receives a temporary or permanent ban on interacting with HMRC), they must take reasonable steps to notify their clients within 30 days. 

If they don't make the notifications, they may receive a £5,000 penalty for each client they should have told. If an adviser is unable to notify their clients, HMRC may ask for evidence that they tried to notify.

Not meeting the registration conditions

The registration conditions must be met by the business and, where applicable, the relevant individuals. Where the conditions are not met:

• HMRC will contact the business.
• The business will be given 30 days from the date of the initial contact, to correct any issues identified. If the issue relates to outstanding returns or unpaid tax, the business will be given 60 days. 
• HMRC will consider responses from the business and may extend the time allowed to correct any issues, if appropriate.
• Where the issues are not fixed, HMRC will issue a notice of suspension.
• The suspension will start 30 days after the date of the notice. 

The suspension will remain in place until the registration issues have been fixed. The adviser may need to provide evidence to show that they meet the conditions.

Behaviour is below HMRC’s standard for agents 

HMRC expects tax advisers to comply with its standard for agents. It may impose a fixed term suspension on advisers where it considers their behaviour falls below the standard.

The suspension will come into effect 30 days after receipt of a notice of suspension and will last for up to 12 months. 

As ICAS members will know, compliance with Professional Conduct in Relation to Taxation (PCRT) is mandatory for members undertaking tax work. PCRT is endorsed by HMRC and forms the basis of HMRC’s own standard for agents. Section 2.1 of HMRC’s standard notes that it should not impose further requirements on agents who are following PCRT.

Appeals 

When HMRC rejects an application for registration, or suspends an adviser, it will provide details of the options available for challenging its decision:

• Statutory review by HMRC, and
• Appeal to the tax tribunal.

An adviser cannot accept the offer of a statutory review from HMRC, where they have already appealed to the tax tribunal. 

The statutory review will be carried out by someone in a different HMRC team, who was not involved in the original decision. The adviser will need to give the reasons why they disagree with the decision and provide any supporting evidence they want HMRC to consider. Reviews usually take up to 45 days (HMRC will contact the adviser if it is likely to take longer). 

If the adviser disagrees with the outcome of the review, they can appeal to the tax tribunal. 

If the adviser chooses not to accept the offer of a statutory review, they can appeal to the tax tribunal within 30 days of the original decision. 

Temporary relief 

Advisers who have requested a review, or appealed to the tax tribunal against the rejection or suspension can apply to HMRC for temporary relief if they do not believe their business will be able to continue as a going concern while the statutory review or appeal is ongoing. 

Temporary relief will allow the adviser to continue to interact with HMRC on behalf of clients. The adviser will have to provide evidence to support the request for relief. HMRC may also consider whether the adviser acted promptly in accepting a review or making an appeal.

If the suspension or rejection of registration is only because of outstanding tax returns or unpaid tax (for the business or a relevant individual), temporary relief will be granted automatically, if an application for relief is made.

There is a right of appeal to the tax tribunal if HMRC refuses temporary relief.

HMRC will update the guidance in due course to provide details about the process for applying for temporary relief.

Sanctions for interacting with HMRC while unregistered or suspended 

As set out above, advisers who are unregistered or whose registration has been suspended should not interact with HMRC on behalf of clients. This includes contacting HMRC directly and sending returns, claims or other documents. 

The business or any relevant individual may receive sanctions for any ‘prohibited interactions’ with HMRC. 

The first time there is a prohibited interaction HMRC will issue a formal compliance notice to stop interacting with HMRC. This will apply until either the adviser becomes registered or the suspension is lifted.

After the formal compliance notice has been issued, subsequent prohibited interactions will be subject to a £5,000 penalty for each interaction.

The penalty will increase to £10,000 for the fifth and any subsequent interactions within a two-year period (starting on the date of the first penalty). Where a £10,000 penalty has been imposed, HMRC will ban the adviser from interacting with HMRC on behalf of clients for 12 months. 

If a prohibited interaction is made while subject to a 12-month ban, the adviser will be permanently banned from interacting with HMRC on behalf of clients. Any further interactions will incur a £10,000 penalty each. 

There is a right of appeal to the tax tribunal against the imposition of sanctions.

Publication of details 

HMRC may publish information about an adviser where they have been given a financial penalty or a temporary or permanent ban on interacting with HMRC. The published information may include:

• The adviser’s name or the business name.
• Their post code.
• The financial penalty or ban that has been issued.
• Any other information considered appropriate to make the adviser’s identity clear.

HMRC will give the adviser notice that they intend to publish details and will allow at least 30 days for a response. HMRC will contact the adviser again to confirm whether information will be published.

In most cases HMRC will take down the information after 12 months. However, it will not be taken down where a permanent ban has been issued.

Let us know what you think

We respond to tax consultations and calls for evidence and attend meetings with HMRC at which service levels, delays and other issues you raise with us are discussed. We welcome input from members to inform our work; email us to share your insights and feedback. 

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