Property lawyers managing conveyancing work and payroll teams could soon find themselves subject to penalties following regulatory updates.

A new requirement obligates these professionals to formally register as tax advisers with HMRC when submitting documentation on behalf of clients, with penalties between £5,000 and £10,000 for those who neglect to do so.

The rule takes effect in May and replaces a previously optional sign-up scheme.

According to Azets tax partner Rick Schofield, businesses and freelance practitioners assisting others with tax-related matters risk incurring significant costs without recognising the problem.

The regulatory changes will affect numerous professionals, spanning both those currently meeting obligations and those who are not, especially concerning property sale taxes or PAYE code modifications.

Mr Schofield explained that the new rules would affect every tax adviser operating in South Wales who interacts with HMRC, regardless of whether they hold traditional accountancy roles.

He noted that tax adviser status applies to anyone providing professional tax guidance and services, such as a solicitor handling property transfers, even if they do not belong exclusively to the accounting sector.

Wage departments fall within this scope as well.

HMRC has stated the changes aim to ensure all tax advisers meet minimum standards, with a refreshed online registration system becoming available in May.