HM Revenue and Customs (HMRC) has issued a stark warning to tax agents across the United Kingdom, setting a firm deadline to bring their own tax affairs up to date. The tax authority is writing to agents who have at least two overdue VAT returns, instructing them to resolve the situation by 7 February 2026 or face significant consequences.
The Compliance Crackdown
According to reports, HMRC is directly contacting tax agents to detail the vital role they play in the tax system and to remind them of their professional responsibilities. A core part of this responsibility is ensuring their personal or business tax submissions are correct and timely. For agents who are VAT registered, this means they must submit a VAT return for every period, even if it is a nil or repayment return with no tax to pay or reclaim.
The letters emphasise that failing to meet the February 2026 deadline will trigger compliance action. The most immediate repercussion could be the suspension of the agent's unique code, a move that would severely hamper their ability to conduct business with HMRC on behalf of clients. Furthermore, HMRC states it may consider making a public interest disclosure to the agent's professional body and reviewing central assessments, potentially issuing additional demands if current assessments are deemed too low.
Penalties and the Path to Resolution
HMRC's guidance is clear on the financial penalties for late submissions. For VAT accounting periods starting on or after 1 January 2023, late filing penalties apply to all returns, including nil ones. In addition to these penalties, HMRC will charge interest on any late payments.
The authority does acknowledge that a reasonable excuse for late filing may be accepted, which would waive any penalties. However, the return must be submitted as soon as that excuse ends. Agents are urged to visit the GOV.UK website and search for terms like 'send a VAT return', 'late returns and payment', and 'reasonable excuses' for comprehensive information.
To resolve their situation, agents must submit all outstanding VAT returns and pay any VAT due by the 7 February 2026 cut-off. Those with queries about the letter are directed to email HMRC's Agent Compliance Team at agentcomplianceteam@hmrc.gov.uk using the specific subject heading 'Agents own affairs – VAT missing returns'. Agents who owe tax but cannot pay in full are advised to call HMRC on 0300 200 3835 to discuss their options.
A Message to the Profession
This targeted campaign underscores HMRC's expectation that tax agents, as key pillars of the tax administration system, must lead by example. The move signals a tightening of compliance checks on the profession itself, ensuring those who advise others on tax compliance are beyond reproach in their own affairs. With the deadline now set, agents across the UK are being given a clear window to regularise their position and avoid damaging professional and financial sanctions.
