MTAR30300 | Sanctions and safeguards: compliance notices

Overview

A compliance notice is issued where HMRC identifies that a tax adviser has interacted with HMRC on behalf of clients whilst either:

• not registered as a tax adviser; or

• subject to a suspension of registration.

This provision is set out at section 233 of the Finance Act 2026.

A compliance notice is a formal notice issued to the tax adviser where HMRC believes that a prohibited interaction has occurred.

A compliance notice must be issued before HMRC can impose a financial penalty or an ineligibility order in relation to a prohibited interaction. Where a tax adviser continues to attempt to interact with HMRC on behalf of clients when a compliance notice has been issued and remains in effect, they may be subject to further sanctions.

For further information on financial penalties and ineligibility orders, see MTAR30400 and MTAR30500.

How compliance notices work

Before issuing a compliance notice for a prohibited interaction, HMRC must:

• notify the tax adviser that they have identified a prohibited interaction; and

• give them 30 days, beginning with the date of the notification, to make representations to HMRC.

HMRC may, by notice to the tax adviser, extend the period for making representations.

If, after considering any representations received, HMRC still decides to issue a compliance notice, the notice takes effect from the date on which it is issued.

The notice will specify:

• the date on which it is issued

• details of the prohibited interaction that HMRC has identified

• the period within which the tax adviser may appeal against the notice.

Where an unregistered tax adviser subsequently becomes registered, or where a tax adviser’s suspension is lifted or expires, the compliance notice will be treated as withdrawn. HMRC may also withdraw a compliance notice at any time. If the compliance notice is withdrawn, the tax adviser will be notified.