Faculty Office Alert: HMRC Warning on Misuse of “Bills of Exchange”
The Faculty Office wishes to draw the attention of notaries to a recent warning issued by HM Revenue & Customs concerning attempts to use so-called “Bills of Exchange” schemes to settle tax liabilities.
On 13 May 2026, HMRC published an issue briefing warning businesses and advisers about arrangements being promoted as a means of discharging debts owed to HMRC through Bills of Exchange. HMRC has stated clearly that such instruments are not accepted as payment of tax liabilities and that participation in these schemes may expose individuals and businesses to enforcement action, penalties, interest, and insolvency proceedings.
The warning is of particular relevance to notaries because these arrangements may involve requests for notarisation, certification, witnessing, or authentication of documents connected with purported Bills of Exchange or related instruments. Promoters may seek to give such documents an appearance of legitimacy through formal execution processes.
Points for notaries to consider:
- heightened vigilance should be exercised where documents are connected with tax avoidance or debt elimination arrangements;
- unusual requests involving sovereign citizen-style arguments, “private money” theories, or attempts to compel public authorities to accept private instruments should be treated with caution;
- where appropriate, consideration should be given to Anti-Money laundering obligations, including client due diligence and suspicious activity reporting requirements.
Notaries encountering such matters should carefully consider whether the proposed act is proper in the circumstances and whether independent legal advice should be recommended to the client.
The HMRC briefing can be read here: