HMRC's New Anti-Avoidance Information Notices: What They Mean for You

Tax Queen

Tax Expert @ Pie

4 min read

What You Need to Know

If you're a sole trader, freelancer or landlord who has never used a tax avoidance scheme, these new powers won't change your tax bill or how you file your Self Assessment return. They matter more if you've ever joined an arrangement that was sold to you as a way to pay less tax. That's because HMRC can now ask for information from people who benefited from those arrangements.

The powers are called anti-avoidance information notices (AAINs). They come from Part 6 of the Finance Act 2026, which became law on 18 March 2026. An information notice is simply a formal written demand from HMRC for documents or details, and if you'd like the wider background, our article on HMRC's crackdown on tax avoidance schemes explains how contractors and higher earners are being targeted.

Who Could Receive a Notice

HMRC can issue a notice to anyone it reasonably suspects is connected with promoting or facilitating tax avoidance. The idea of a "connected person" is deliberately broad. It can include advisers, partners, employees and people involved in arranging, managing or benefiting from a scheme.

Getting a notice doesn't necessarily mean HMRC thinks you avoided tax yourself. It may simply believe you hold information about someone else's scheme.

This means a notice can reach past the scheme promoter to businesses and intermediaries involved along the way. HMRC can ask for things like scheme paperwork, client files, fee arrangements and payment records. Documents more than six years old generally need extra authorisation from HMRC.

There are some protections. A notice generally can't demand legally privileged advice, journalistic material or certain personal records. These powers sit alongside HMRC's existing information powers in Schedule 36, Finance Act 2008, rather than replacing them.

What a Notice Must Tell You

A notice can't just ask for "everything". It has to say what information or documents HMRC wants, how to send them, which part of the law it relies on, and whether a tribunal approved it. It must also give you a reasonable deadline. In practice, advisers report that HMRC usually allows around 30 days.

You can appeal some notices. If HMRC got a tribunal's approval before sending it, you can't appeal and must comply. Some types of notice can only be challenged on the grounds that complying would be unduly onerous, meaning the request is unreasonably heavy for you to meet.

If One Arrives

Note the deadline straight away. Don't wait until the last week.
Check whether the notice says a tribunal approved it, because that affects your right to appeal.
Don't destroy or throw away anything the notice covers. That can be a criminal offence.
Speak to a tax adviser or solicitor before you reply, especially if you think the request is too wide.

What Happens If You Ignore a Notice

The penalties are steep. For most notices, failing to comply brings an initial penalty of £5,000, plus daily penalties of up to £1,000 if the failure continues. A tribunal can raise the daily penalty to up to £5,000. Other penalties include:

£20,000 for concealing information
up to £20,000 for each inaccuracy in what you send
£10,000 for telling someone about a notice when you've been told not to

Before most of these penalties are charged, you get 30 days to explain your side to HMRC.

In serious cases, deliberate non-compliance or concealment can be a criminal offence, with up to two years in prison. HMRC can also add a non-disclosure requirement, which stops you telling other people about the notice or what it says. It lasts 12 months unless HMRC extends it, and it never stops you getting legal advice.

If you receive a notice, treat it as a serious legal requirement and get professional advice before you reply. Meanwhile, keep your own filing on track, and our step-by-step guide on how to file your UK tax return walks you through the process.

Keep Records You Can Stand Behind

Powers like these make life easier for taxpayers who can show where their money came from and why they claimed what they did. If you keep clear income records and receipts throughout the year, any question from HMRC is quicker to answer. That applies whether it's about a past arrangement or an ordinary business expense. If you ever joined a scheme, keep the paperwork showing what you paid, who you paid and what you were told it would do.

For sole traders, landlords and freelancers, Pie Tax keeps a running record of your income and sorts your allowable expenses as you go. That way, every Self Assessment return you send to HMRC has tidy figures behind it that you can explain.

If you want your records in order before HMRC asks about anything, Try Pie Tax for free.