How worried should accountants be about the Finance Bill? 

With rumours swirling, AAT assesses how much of a threat the Bill really is to the profession.

The Finance Bill 2025-26, which was published in December 2025, covers key provisions relevant to tax advisers and promoters of tax avoidance. These include: 

• mandatory registration for tax advisers interacting with HMRC 

• a lower sanction threshold, which will allow HMRC to target any intentional act bringing about a loss of tax revenue – which replaces the previous ‘dishonest conduct’ bar 

• a new strict liability criminal offence introduced for promoting arrangements with no realistic prospect of success. 

Some of our members are worried that under this legislation, ordinary mistakes could be viewed as dishonest, and punished. We’ve also heard some professional bodies consider the Finance Bill a threat to the profession. 

That’s why we’re actively engaging with HMRC officials to clarify the rationale behind the provisions, and to find out how the department intends to apply them in practice. 

What does ‘bringing about a loss of tax revenue’ look like? 

One frequently raised concern is that the phrase ‘bringing about a loss of tax revenue’ could prevent tax advisers from giving standard advice.  

Well, the legislation defines ‘a loss of tax revenue’ as effectively not accounting for the correct tax at the correct time as required under the law. This is a narrower definition than some fear.  

What effect could all this have for you? 

Outcomes for accountants and tax agents depend upon how HMRC will apply legislation in practice. 

From our conversations with the Revenue, we don’t expect HMRC to target advisers making honest mistakes, or where the legislation itself isn’t clear. 

This also applies for the lower sanction threshold – the intention is to address deliberate wrongdoing, not reasonable errors. 

What could be significant is the strict new liability criminal offence that’s been introduced for promoting arrangements with no realistic prospect of success. That’s because HMRC will no longer need to prove intent.  

However, the prosecution will have to prove beyond reasonable doubt that arrangements were promoted which had no reasonable prospect of success. 

Government response

More recent statements made in the House of Commons have also been reassuring. This includes a commitment to introduce the new Finance Bill measures in a proportionate way, offering comfort to agents concerned about the direction of reform 

Our takeaway

Given the leeway legislation gives HMRC, we would have preferred it be drafted differently.  

However, we’re not expecting HMRC to act against the intentions it’s repeatedly outlined. We have urged the Revenue to focus on publishing guidance as soon as possible ahead of implementation, and we’ll continue to monitor the situation as it develops.  

AAT Comment offers news and opinion on the world of business and finance from the Association of Accounting Technicians.