PARLIAMENTARY WRITTEN QUESTION
(28 August 2026)

To ask the Chancellor of the Exchequer, what assessment his Department has made of the cumulative impact on small and medium-sized accountancy and tax advisory practices of (a) the mandatory Tax Adviser Registration scheme, (b) the lowered threshold from "dishonest conduct" to "sanctionable conduct" for agent penalties introduced by the Finance Act 2026, and (c) the proposed new criminal offence for reckless untrue statements or declarations in direct tax; and whether HMRC has evaluated whether the existing civil and criminal penalty framework is sufficient before introducing further enforcement powers.

Asked by:
John Milne (Liberal Democrat)

The Government recognises the important role played by small and medium-sized accountancy and tax advisory practices in supporting taxpayers to meet their obligations.

The Government has consulted on these measures and published assessments of their expected impact. This includes consultations and tax information and impact notes covering mandatory tax adviser registration and the measures to tackle tax adviser-facilitated non-compliance.

HMRC is considering responses to the recent consultation on a proposed criminal offence for reckless untrue statements or declarations in direct tax. Final decisions are subject to the analysis of consultation responses, and the Government will publish its response in due course.

In developing the measures, the Government considered the existing civil and criminal framework and the case for further powers. HMRC will continue to engage with the sector and keep the operation and impact of the measures under review.

Answered by:
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