Enhancing HMRC’s powers: tackling advisers facilitating non-compliance

The measure

A consultation has been published on tackling advisers who facilitate non-compliance. This is the latest activity in this area, which has seen a number of changes and consultations in recent years.  

This consultation seeks views on: 

• whether HMRC’s current powers are effective in dealing with non-compliance facilitated by tax advisers; 
• enhancing HMRC’s powers to investigate tax advisers where HMRC suspects their actions have led to an inaccuracy in a taxpayer’s document; 
• enabling HMRC to request information from tax advisers where HMRC suspects misconduct; 
• introducing stronger penalties against tax advisers who contribute to the tax gap; 
• publishing details of HMRC sanctions on tax advisers; and 
• disclosures to professional bodies regarding concerns about their members’ activities which  fall below the normal disciplinary investigation thresholds of professional bodies.  

The government states that it is committed to ensuring that any amended powers are well targeted and do not introduce unnecessary burdens on the majority of tax advisers who do a good job;nor does the government intend to extend HMRC’s role into policing the wider market. 

HMRC will review the responses from the consultation and publish a summary. The feedback will inform future policy proposals and draft legislation for further consultation. 

Who will be affected?

Tax advisors who do not adhere to the expected standards of professional advisers and who actively facilitate non-compliance will be impacted by any measures resulting from consultation.

When will the measure come into effect?

The consultation has a deadline of 7 May 2025.