2026: The year ahead

Hot on the heels of the latest Budget, 2026 brings a mixed business outlook, and there will be plenty to get to grips with in the coming year. Just like 2025, evolving technology will continue to drive rapid change, and accountants will need to be ready to embrace the opportunities without taking their eye off cyber security and data protection risks.

Every year brings new regulatory considerations, and this year is no exception. Making Tax Digital for Income Tax (MTD IT) will come into play in 2026 for self-employed individuals and landlords earning more than £50,000. Digital tax regime changes will see further development in 2026 with Companies House driving modifications to threshold reporting for example. Meanwhile, preparations for 2027’s digital filing disclosures will also need to be on the radar.

Realistically, however, these changes are ones that accountants will take in their stride. These will be the well-publicised changes that come from Government, that will be supported by extensive educational materials, deadline reminders, and advisory guides. It’ll be other factors that present the biggest challenge for accountants in the year ahead.

Company insolvencies in October 2025 were 17% higher than the previous year, continuing an upward trend throughout 2025, ringing potential alarm bells for 2026. Insolvency should always be the last option and accountants play a critical role in making sure this is the case. While some businesses view their accountant as only responsible for filing taxes and doing payroll, SMEs are increasingly drawing on what accountants have to offer, seeking advisory skills to restructure, de-risk, and stabilise finances amidst turbulent trading conditions. Accountants can use this as an opportunity for their own growth, and for cementing their position as a critical adviser in times of potential crisis.

Hand in hand with this, is AI and its remarkable and potentially liberating capability. When most refer to AI, they’re considering a ChatGPT-style model, answering direct prompts and queries from a database of information, but this only has so much relevance in the day-to-day role of an accountant. Instead, the real innovations are already arriving from major software and platform providers incorporating ever-more-clever functionality into their systems, offering accountants the opportunity to streamline or even offload routine tasks, while also having opportunity to interpret data in new ways. What will be key is to implement tech stacks, minimise tool-sprawl, and assure better interoperability, while also incorporating adequate training to maintain ethical integrity and regulatory compliance.

The aspects I find most interesting and which will have the most prominent effect in 2026 are two-fold. First, AI comes with risks to practise and critical thinking. If AI can be trained to do the ‘thinking’ in an organisation, it could come at a cost to the firm’s cognitive capabilities, with long-term detrimental effects for accountancy skills quality. This is particularly pertinent given that the AI regulatory landscape will change at quite a pace, and if current predictions continue, will be regulated through a sector-specific, principles-based approach, led by existing industry regulators. This means that accountants may face a cliff edge where the AI practices and principles they adopt now, without regulatory oversight, may quickly become outdated if regulation changes. This is particularly concerning when applying UK law, such as with GDPR, when using client data within a platform that is based overseas.

Second, the latest predictions from Gartner shows that accountants will need a keen eye on terms and conditions of use, given that by 2030, at least 20% of monetary transactions will include T&Cs that give AI agents economic agency. This could have a profound effect on practise, responsibilities, and risk.

Talent will be top of the agenda to leverage these changes. Upskilling persists as a key theme for accountants, incorporating data literacy, tech adoption, ethical practise, and advisory services among others. Human-centric skills will be much-needed, with growing importance for leadership skills. A Great Place to Work study this year found that there is a growing gap between employer and employee expectations. The pandemic years drove increased levels of care and investment into employees which has now dwindled as attention turns to other pressing concerns. This misalignment is bad for retention, both within firms and across the industry, so leaders will need to adapt to meet those expectations.

It’s also likely that “T” shape employees will gain significance over the more traditional “V” shape, where hyper specialism will offer a critical edge to firms competing with automation and DIY models. Traditional “V” shape employees acquire a lot of skills with diminishing expertise, but overall prioritise breadth over depth. This has its value, but as the accountancy landscape grows ever broader and more complex clients will be seeking depth of knowledge over breadth in the coming years. This will be essential as the skills shortage continues to bite, and businesses will need to be ready to offer new and innovative retention approaches to keep teams on board and engaged.

Globally, the Institute of Financial Accountants, and our Australia-based parent organisation play a vital role in upskilling accountants and creating symbiotic opportunity between our UK members and their global counterparts. This gives us a unique perspective on some of the worldwide trends that could be set to shape the UK market. There are two that standout here. First, in Australia, accountancy practices have become more like GPs for business, offering more rounded services that allow them to problem-solve and recommend business-wide solutions. 38% already offer HR advisory, 35% offer start up mentoring and 35% do software setup according to research by Xero. It’s not a model that we see all too often here, but it provides scope for businesses to consider.

Second, We’re seeing the rise of the ‘accountancy influencer’ where the personal brand is growing in importance and expertise is shared in digestible formats. It’s a far cry from the traditional, corporate, somewhat technical image that is often projected by accountants. Globally, the ESG landscape is an interesting one, but it’s thankfully a little clearer here in the UK. Amidst a backdrop of major economies such as the United States rolling back on pledges, and the recent United Nations COP30 conference struggling to agree new fossil fuel promises, it is easy to assume that the sustainability bubble has burst, but that’s far from the case. In reality, 2026 will be the start of the major shift from voluntary accountability to mandatory regulations, thanks to the roll-out of the UK Sustainability Reporting Standards (UK SRS) based on the standards from the International Sustainability Standards Board (ISSB). It is also possible that in the coming years, these standards will be adopted by the FCA listing rules, making sustainability reporting a formal requirement. Meanwhile, the Financial Reporting Council’s (FRC) streamlined Stewardship Code will take effect on 1 January 2026, redefining long-term sustainable value and applying to asset owners, managers, and listed companies. In 2026, some companies will also have to disclose their net zero transition plans for the first time, and public accountability will be a major factor. While most of these regulatory changes are size-based currently, it is unlikely to be long before they cascade down into the wider economy, particularly given the natural trends towards sustainability accountability as certifications such as B Corp continue to gain momentum.

Ultimately, 2026 is not likely to bring any major surprises, but it will be a year of adaptation, innovation, and the need to strive to maintain a competitive edge in what could be a challenging business landscape. I am always reassured by our profession’s willingness to adapt, but it is essential that businesses proactively consider where effort aligns, and how best we can preserve innovation and value, without compromising the health or wellbeing of the people that make it so special.