Policy paper

Tackling tax adviser facilitated non-compliance by enhancing HMRC's powers

Published 26 November 2025

Who is likely to be affected 

Tax advisers who deliberately 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 deliberately facilitating non-compliance that contributes towards the tax gap, making it easier to access information and apply effective and proportionate penalties.

Policy objective

This measure aims to deter tax advisers from contributing to the tax gap and hold advisers accountable when their actions deliberately 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 and tax advisers, 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.

HMRC 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. The draft legislation was published for technical consultation on 21 July 2025.

Detailed proposal

Operative date

The measure will take effect from 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 deliberately 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 – where a file access notice is approved by HMRC it will be appealable to the tribunal
• 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 with tribunal approval
• introduce a new penalty framework to sanction tax advisers who are found to have 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)

2025 to 2026	2026 to 2027	2027 to 2028	2028 to 2029	2029 to 2030	2030 to 2031
—	+15	+50	+55	+55	+55

These figures are set out in Table 4.1 of Budget 2025 and have been certified by the Office for Budget Responsibility. More details can be found in the policy costings document published alongside Budget 2025.

Macroeconomic 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, as the proposals would be targeted only at serious or repeated instances of deliberate non-compliance by tax advisers and various safeguards will be implemented. The measure is not expected to impact on family formation, stability or breakdown.

Equalities impacts

A tax adviser may be affected by this measure regardless of their protected characteristics, if their actions deliberately facilitate non-compliance in their clients’ tax affairs. HMRC does not currently hold data on the other protected characteristics of individuals impacted by this measure and so cannot make an assessment of the impacts on those with shared protected characteristics.

Administrative impact on business including civil society organisations

If an individual within a compliant business is sanctioned, there may be rare circumstances where the business itself is publicly named. This is done to clarify who the individual is. In such cases, the business will have an opportunity to make representations to HMRC to not be named.

This measure has no impact on admin burdens for compliant businesses, as it only targets serious or repeated instances of deliberate non-compliance by tax advisers, with various safeguards in place.

Operational impact (£ million) (HMRC or other)

HMRC will need to make changes to IT systems to implement this change at an estimated cost of £1.8 million.

Other impacts

A full Justice Impact Test is being completed, the impact is expected to be low. Other impacts have been considered and none have been identified.

Monitoring and evaluation

This measure will be monitored through information collected from HMRC’s systems including data on the use of file access notices, the issuing of penalties, and appeals and reviews.

Further advice

If you have any questions about this change, email the Agent Standards and Enforcement Policy Team at raisingstandardsconsultation@hmrc.gov.uk.