HMRC issues instruction before major update on Monday | Personal Finance | Finance

Brits who file other people’s taxes will need to register for a new online HMRC account from Monday. HMRC will introduce the online registration system for agent services accounts on May 18, made for anyone who Government considers to be a tax adviser.

The includes anyone who interacts with HMRC about someone else’s tax affairs and gets paid for it, either by phone, post or email, messages through the gov.uk website or HMRC app, or sending returns, claims or other documents. Mandatory registration will be rolled out in stages depending on individual circumstances, starting from tomorrow until the end of this year.

Currently, registration for tax advisers vary by service, creating administrative burdens. The Government said this online system will help monitor whether they meet minimum standards, and if necessary, exclude those who are “objectively unable” to do so.

This replaces what may be a paper-heavy approach with a single digital route, and forms part of HMRC’s wider programme to raise standards in the tax advice market.

Even if you do not view yourself as a tax adviser, describe your work as tax advice, or helping people with their tax affairs is not your main business function, you will still need to register.

It also applies to people who only interact with HMRC on behalf of one client, have a business based outside the UK, or work as a registered sole trader.

Impacted Brits can use the online service to register from Monday, even if they are not required to do so until a later date. They must apply for an agent services account within three months of the date they need to register.

Those who already have a self assessment or corporation tax account will be given slightly longer to register, beginning from August 18.

If you only provide third-party payroll services on behalf of clients and do not interact with HMRC in any other way, you’ll need to register from November 18. If you are a financial services organisation, you’ll need to register from December 31, 2026.

This new agent services account will replace the current way to register and people may be legally required to do so.