MTAR30700 - Sanctions and safeguards: sanctions during the transitional period
Overview
From 18 August 2026, sanctions may apply to tax advisers who fail to meet HMRC’s registration conditions or interact with HMRC on behalf of their clients without being registered. The sanctions provisions are commenced by the The Finance Act 2026 (Registration of Tax Advisers) (Appointed Days and Transitional Provision) Regulations 2026.
Registration is being introduced in tranches for different categories of tax adviser. Each tranche has a three-month registration window during which tax advisers are expected to apply for registration.
Whether a particular sanction can be applied will depend on:
- the tax adviser’s registration status at the time of the interaction;
- when the tax adviser became subject to the registration conditions;
- the date from which registration became mandatory for the relevant tranche; and
- when the relevant interaction or contravention occurred.
Interactions that took place before 18 August 2026 cannot give rise to a sanction for prohibited interactions under this guidance.
However, when applying for registration, tax advisers must satisfy the registration conditions at the point of their application. For example, an unspent criminal conviction that occurred before 18 August 2026 may still affect a tax adviser’s ability to satisfy the registration conditions.
Tax advisers who already had an agent services account before 18 May 2026
Tax advisers that had an agent services account before 18 May 2026 do not need to submit a new registration application.
From 18 August 2026, these tax advisers became subject to the sanctions framework and the ongoing registration conditions, including those relating to relevant individuals.
Where HMRC requires further information to determine whether the registration conditions are met, it will contact the tax adviser through its agent services account.
Tax advisers who registered on or after 18 May 2026
Tax advisers whose application for an agent services account was accepted on or after 18 May 2026 became subject to the registration conditions when their registration was approved.
Where such a tax adviser fails to meet a registration condition, or fails to uphold HMRC’s standard for agents, sanctions may be applied from:
- 18 August 2026, if they registered before this date
- the date their registration was approved, if they registered after 18 August.
This applies regardless of the tranche to which the tax adviser belongs.
Tax advisers who do not register when required
Where a tax adviser is required to register but has not done so, sanctions relating to unregistered activity can only be applied from the date on which registration becomes mandatory for their tranche.
Before applying a sanction to an unregistered adviser, HMRC will establish:
- the tranche to which the tax adviser belongs; and
- whether the relevant interaction took place on or after the date on which registration became mandatory for that tranche.
Where an interaction takes place before registration becomes mandatory for the relevant tranche, no sanction may be imposed on the basis that the tax adviser was unregistered.
Further information on registration tranches and implementation dates can be found at MTAR10800.
Examples
Example 1 – unregistered tax adviser
A payroll adviser was required to register by 18 February 2027 as part of the payroll services tranche. However, they did not register until 10 June 2027.
Although the sanctions provisions came into force on 18 August 2026, the adviser cannot be sanctioned for being unregistered before 18 February 2027, as registration was not yet mandatory for their tranche.
However, if the tax adviser interacted with HMRC on behalf of clients on or after 18 February 2027 (without being registered), the sanctions framework may apply in respect of those interactions.
Example 2 – tax adviser applies within their registration window
An accountancy firm already held Corporation Tax and Self-Assessment agent codes but did not have an agent services account. The firm was required to register by 18 November 2026 as part of its tranche.
The firm submitted its registration application on 16 November 2026, within the registration window. HMRC did not approve the application until 3 January 2027.
Because the firm submitted its application before the registration deadline, it may continue to interact with HMRC on behalf of clients while its application is being processed. The firm will not be treated as unregistered solely because HMRC has not yet completed its consideration of the application.
If approved, the firm becomes subject to the registration conditions from the date its registration takes effect.