Enhancing HMRC's powers to tackle tax advisers who facilitate non-compliance
Published 21 July 2025
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This publication is available at https://www.gov.uk/government/publications/enhancing-hmrcs-powers-tackling-tax-adviser-facilitated-non-compliance/enhancing-hmrcs-powers-to-tackle-tax-advisers-who-facilitate-non-compliance
Who is likely to be affected
Tax advisers who facilitate non-compliance in their clients’ tax affairs, and their clients.
General description of the measure
This measure strengthens HMRC’s powers to act against tax advisers suspected of facilitating non-compliance, making it easier to access information and apply effective and proportionate penalties.
Policy objective
This measure aims to deter tax advisers from harming the tax system, and hold advisers accountable when their actions facilitate non-compliance. It supports a fairer and more transparent tax system by strengthening HMRC’s ability to act effectively where advisers harm the tax system. This will help protect compliant taxpayers, improve trust in the tax system, and reduce the tax gap by addressing harmful behaviours that undermine compliance.
Background to the measure
Schedule 38 to the Finance Act 2012 introduced provisions enabling HMRC to take action against tax advisers who engage in dishonest conduct intended to bring about a loss of tax. While these powers reflected the tax advice landscape at the time, the market has since evolved as highlighted in the 2019 Independent Loan Charge Review.
HMRC subsequently issued a call for evidence in 2020 and published a review of its powers to uphold the Standard for Agents in 2022. This work informed a public consultation held from 26 March to 7 May 2025 on strengthening powers to address adviser-facilitated non-compliance, which shaped the final proposals.
Detailed proposal
Operative date
The measure will take effect on 1 April 2026.
Current law
Schedule 38 of the Finance Act 2012 gives HMRC powers to address dishonest conduct by tax advisers, including issuing file access and conduct notices and applying penalties.
Proposed revisions
Legislation will be introduced in Finance Bill 2025-26 to amend schedule 38 of the Finance Act 2012. The changes will:
- allow HMRC to obtain information from tax advisers using a file access notice where there is reasonable suspicion that they have facilitated non-compliance in their clients’ tax affairs
- remove the requirement for tribunal approval before issuing a file access notice, replacing it with a senior HMRC officer approval mechanism
- revise the penalties for failure to comply with a file access notice to include where inaccurate information is provided, and allowing HMRC to increase the penalty amounts where approved by the tribunal
- introduce a new penalty framework for where HMRC establishes that a tax adviser has deliberately facilitated non-compliance in their clients’ tax affairs
- introduce new powers to publish information about tax advisers where HMRC has used relevant sanctions
Summary of impacts
Exchequer impact (£ million)
| 2024 to 2025 | 2025 to 2026 | 2026 to 2027 | 2027 to 2028 | 2028 to 2029 | 2029 to 2030 |
|---|---|---|---|---|---|
| Empty | Empty | Empty | Empty | Empty | Empty |
The final costing will be subject to scrutiny by the Office for Budget Responsibility and will be set out at a future fiscal event.
Economic impact
This measure is not expected to have any significant macroeconomic impacts.
Impact on individuals, households and families
This measure has no impact on compliant individuals, households and families, the proposals only target serious or repeated instances of non-compliance.
Equalities impacts
It is not anticipated that there will be impacts on those in groups sharing protected characteristics. A tax adviser may be affected by this measure regardless of their protected characteristics if their actions facilitate inaccuracies.
Impact on business including civil society organisations
This measure has no impact on compliant businesses, as the proposals would only target serious or repeated instances of non-compliance and various safeguards will be implemented.
Operational impact (£ million) (HMRC or other)
HMRC will need to implement new processes, guidance, and training to use enhanced powers. The operational impacts will be quantified in due course and will be published at a future fiscal event.
Other impacts
Other impacts have been considered and none have been identified.
Monitoring and evaluation
The measure will be monitored and assessed alongside other measures in the government’s package for tax changes.
Further advice
If you have any questions about this change, please email the Agent Standards and Enforcement Policy Team at raisingstandardsconsultation@hmrc.gov.uk.