A couple of weeks ago I sent you details of the new regime announced in the budget last year regarding the registration of YOUR FIRM with HMRC to allow staff to continue to interact with HMRC on behalf of a client.

“Interacting with HMRC” includes submitting tax returns or other documents such as SDLT1s.

I am sending further information following the announcement on 17th February 2026 when HMRC updated their plans.

I posted on LinkedIn but appreciate many of you are focused on the day job.  But please please please read to the end of this newsletter (it is 3 mins 20seconds long) as the myths and fear mongering have already begun.  There are inaccuracies where the legislation has not been read properly and some claims that are simply wrong.  

There are two links:

https://www.gov.uk/guidance/check-if-and-when-you-need-to-register-as-a-tax-adviser-with-hmrc

https://www.gov.uk/guidance/check-if-you-meet-hmrcs-conditions-to-register-as-a-tax-adviser

From 18th May 2026 HMRC will introduce the online registration system so that you can apply for your agent services account.  If you already have one, then HMRC will contact you directly and there is no requirement for you to register again.

You will have to register if you do not have an agent services account and you ‘interact’ with HMRC which includes phone calls, emails as well as submitting returns. Even if you are not viewed as a Tax Adviser traditionally as most lawyers are not, to enable the safe transition for filing an SDLT1 you will need to register.  It’s important to block out the noise.  

• You are not a tax adviser
• You don’t need tax qualifications,
• You remain the agent if you are filing an SDLT1 on behalf of your client, who is self assessing the tax that is being paid.  
• It is a gateway requirement; the legislation is broadly drafted and there has been push back from many of the regulatory bodies, but here we are.

What I have seen that is not correct

1. “Taking advice on an SDLT calculation does not transfer responsibility,” and that “If the firm remains the submitting adviser, it remains accountable for the tax position."   This is incorrect. SDLT is a self-assessed tax and whoever files the SDLT1 does so as agent on behalf of the tax payer. The debate around registering as a 'Tax adviser' needs to accurately focus on the draft legislation, the current regulatory and compliance restrictions, including undertakings and CQS.
2. Outsourcing is the only option to re-risk.  This needs careful consideration.  How does this fit with your duty and undertaking that have given to your lender.  It could actually increase your risk.
3. The lenders position is not related to the tax advice.

What does the Lenders Handbook say?

10.4 says "You are only authorised to release the loan when you hold sufficient funds to complete the purchase of the property and pay all stamp duty land tax and registration fees to perfect the security as a first legal mortgage or, if you do not have them, you accept responsibility to pay them yourself."  If you outsource the filing of the SDLT and for whatever reason don’t get the SDLT5 back, you have lost control of the process.

Let’s be clear.  The title ‘Tax Adviser’ does not mean you need to be qualified as a tax adviser or even provide tax advice to your client.  It is simply a broad brush to describe an organisation who is submitting the return.

Let’s also be clear.  This is what you are already doing.  Day in day out, you punch the numbers into the Gov.UK calculator, send that to the client, complete the SDLT1, file this through the portal with your client’s approval and pay the tax.  NOTHING CHANGES.

For the 2-5% of transactions that become ‘complex’ it is absolutely right that your client takes separate tax advice.  Your scope of work and terms of engagement make it very clear this is not within your wheelhouse.   NOTHING CHANGES.  

Make sure you are recommending tax advisers to your clients who are qualified, experienced and insured.  If the client refuses to take advice, you can always take advice yourselves to be clear about the tax position on any given matter.  You can’t file a return believing it to be incorrect.  NOTHING CHANGES.

Turn down the noise.

Do you need to check your processes – yes definitely.  Your terms of engagement need to clearly set out your scope of work and in a very low percentage of transactions, clients should seek independent tax advice.  I think Angela Rayner made that point very clearly.  

Pay attention to your SDLT Declaration, your SDLT policy required under the CQS, undertakings to lenders to register charges and misunderstanding the legislation that you should be outsourcing any of these functions.  It is your client’s responsibility to take the tax advice, and ensure they are paying the correct tax.  This they can do, by taking separate tax advice.  

In all that I have read there is no evidence that PI premiums are going to hike; you are going to have to defend the SDLT position; that outsourcing the filing of an SDLT1 transfers the risk or that law firms need to invest in inhouse experts. What does need to change is the clients understanding of how many hats their lawyer can wear and tax advice just isn’t one of the hats that fits.

If you need additional support, a CPD training course on tax risk and registering with HMRC or a chat we are professional, regulated, insured and here to help.

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