MTAR30500 - Sanctions and safeguards: ineligibility orders
Overview
An ineligibility order is a sanction that prohibits a tax adviser or relevant individual from interacting with HMRC on behalf of clients. Ineligibility orders are issued where a tax adviser or relevant individual has demonstrated persistent non-compliance with the tax adviser registration regime by interacting with HMRC whilst unregistered or suspended.
There are two types of ineligibility order:
- temporary ineligibility orders
- permanent ineligibility orders.
This provision is set out in sections 236 and 237 of the Finance Act 2026.
Temporary ineligibility orders
HMRC will issue a temporary ineligibility order where a tax adviser or relevant individual becomes liable to a £10,000 financial penalty.
A temporary ineligibility order remains in force for a period of 12 months from the end of the period of 30 days beginning with the date on which the order was issued.
During the suspension period, the tax adviser or relevant individual:
- must not interact with HMRC on behalf of clients in relation to activities within scope of the registration requirement; and
- is not eligible to register, or remain registered, under the tax adviser registration regime.
If a tax adviser is suspended prior to an ineligibility order being issued, the ineligibility order remains even if the suspension is subsequently lifted. The order remains in effect for the full 12-month period unless cancelled following a review or appeal (see MTAR30600).
Permanent ineligibility orders
HMRC will issue a permanent ineligibility order where a tax adviser or relevant individual becomes liable to a £10,000 financial penalty whilst subject to a temporary ineligibility order.
A permanent ineligibility order imposes a permanent prohibition on being registered with HMRC.
A tax adviser who is subject to a permanent ineligibility order is not eligible to register under the tax adviser registration regime. Where the tax adviser is already registered, their registration will be cancelled.
Where a tax adviser or relevant individual continues to undertake prohibited interactions whilst subject to a permanent ineligibility order, HMRC may impose a financial penalty of £10,000 for each prohibited interaction.
Ineligibility orders issued to tax advisers and relevant individuals
An ineligibility order may be issued to a tax adviser or to a relevant individual, depending on the circumstances.
Where a relevant individual becomes subject to an ineligibility order, the effect on the tax adviser’s registration status will depend on whether the tax adviser continues to satisfy the registration conditions.
One of the registration conditions is that each relevant individual of a registered tax adviser must not be subject to a relevant ineligibility order (section 227 (2)(e) of the Finance Act 2026). As a result, a tax adviser will cease to meet the registration conditions if one of its relevant individuals becomes subject to an ineligibility order.
Opportunity to make representations
Before imposing an ineligibility order, HMRC must:
- notify the tax adviser or relevant individual that HMRC considers an ineligibility order to apply; and
- give them 30 days, beginning with the date of the notification, to make representations to HMRC.
An authorised officer may extend the period for making representations by giving notice to the tax adviser or relevant individual.
HMRC will consider any representations received before deciding whether to impose an ineligibility order.