Bold truth: HMRC’s new rules will require almost every business involved in handling someone else’s tax matters to register as an agent, and the process could reshape how firms operate. HMRC has released updated guidance detailing who must register as a tax adviser and what conditions both individuals and firms must satisfy. Starting 18 May, any business that interacts with HMRC about another person’s tax affairs and receives payment for those services must create an agent services account. Interactions counted include contacting HMRC by phone, post, or email; using the GOV.UK website or HMRC app; and sending tax returns, claims, or other documents.
Crucially, you’ll need to register even if you don’t see yourself as a tax adviser or don’t describe your work as tax advice. In firms with five or fewer people, each individual must register as a ‘relevant person,’ even if they don’t directly provide tax services. In firms with six or more people, every ‘relevant person’ must be registered, including officers involved in tax adviser activities and anyone who plays a significant role in managing or organizing tax-advice-related work. If there are fewer than five people performing the relevant duties, other individuals must be nominated to bring the total to five.
For any firm or sole trader registering for an agent services account, there must be evidence that the business is supervised for anti-money laundering (AML). Individuals are not required to provide AML supervision evidence. Firms with outstanding tax returns or unpaid taxes without a payment plan will be unable to register.
Sean Swimby, director at stamp duty specialists SCA Tax, describes the change as a move toward stronger oversight and professional standards when dealing with tax. He notes that firms interacting with HMRC on behalf of clients will need to plan how to meet these requirements going forward. However, the policy has drawn criticism from legal regulators.
Simon Law, chair of the Society of Licensed Conveyancers (SLC), argues the requirements—such as mandatory AML supervision and identifying all ‘relevant individuals’ involved in tax-adviser activities—could impose substantial operational burdens on many firms. The SLC has repeatedly warned that mandatory adviser registration may create excessive administrative duties for compliant legal practices without clear consumer benefits, and that parts of the framework risk capturing professionals who do not present themselves as tax advisers or duplicating existing regulatory oversight.
Sheila Kumar, chief executive of the Council for Licensed Conveyancers (CLC), expressed disappointment that HMRC did not use the opportunity to exclude conveyancers who aren’t permitted to provide tax advice but who submit SDLT calculations and payments for clients. Dame Janet Paraskeva, chair of the CLC, highlighted risks of duplicating regulatory oversight in areas where there’s no current problem, potentially allowing improperly registered individuals to give tax advice to clients—counter to efforts to streamline home buying and selling and boost economic growth.
Lidia Quinlan of Compass emphasized that taking SDLT advice doesn’t transfer responsibility; if the submitting adviser remains responsible for the tax position, true protection comes when the submission is outsourced to a third party who acts as the submitting adviser. Firms are urged to review their SDLT processes now to avoid disruption, delays, or backlogs caused by registration.
George Bould of SDLT Check agrees it’s more of a readiness prompt than a alarm, calling it a chance to clarify where tax advice sits within a firm, ensure proper documentation, and secure oversight. He has sought clarity from HMRC on how the rules apply when a firm outsources the questionnaire, advice, and submission but still transfers funds to HMRC.
SLC chair Simon Law acknowledges the guidance clarifies some procedures but says core questions remain unresolved—especially around evidentiary requirements, the scope of ‘relevant individuals,’ and how conduct standards will be enforced in practice. With phased implementation starting in 2026, he emphasizes the need for greater certainty to avoid disrupting client services. The SLC urges HMRC and the Treasury to engage with the profession to refine the regime so it raises standards proportionately without imposing unnecessary burdens on regulated legal services.
HMRC guidance links:
- Check if and when you need to register as a tax adviser with HMRC
- Check if you meet HMRC’s conditions to register as a tax adviser
One reader’s perspective highlights the paradox: government aims to speed up homebuying while layering on regulatory tasks that slow down conveyancing. The takeaway is clear for high-volume conveyancers and the broader legal field: conveyancing is legal practice, not just administration. As policy tightens, firms must ensure tax advice sits in the right place, is properly documented, and is overseen to protect clients and maintain service quality. A thoughtful, proactive review now can prevent last-minute disruptions and keep client work flowing smoothly.
