10 Predictions for Tax and Accounting Professionals in 2026

1. Making Tax Digital (MTD) Will Be a Major Compliance Hurdle—And a Growth Driver

MTD for Income Tax becomes mandatory in April 2026. While 50% of UK accountants ‘strongly’ or ‘somewhat’ agree that taxpayers are aware of MTD, they also report that, on average, 26% of their clients still use non-digital bookkeeping records. While many accountants see it as a compliance challenge, those who embrace digitalization will unlock efficiency, improved client engagement, and new advisory opportunities. Accountants have strong confidence in their practice’s ability to help close this gap, as 78% agree their practice has the capacity to properly support clients with this change. Firms that treat MTD as a modernization opportunity, not just a regulatory burden, will gain a competitive edge.

2. Digitalization Will Accelerate—But Non-Digital Clients Remain a Challenge

The shift to digital is inevitable, but 42% of UK accountants report that more than half their clients are non-digitalized, relying on paper records. The main barriers are clients’ lack of digital skills (50%), resistance to change and cost (47%). To address this, 40% of accountants plan to help clients adopt digital bookkeeping, and 31% will offer hybrid services. Supporting non-digital clients will require tailored onboarding and hybrid solutions, and addressing barriers such as tech literacy and resistance to change.

3. AI Adoption Will Become Routine and Transformative

AI adoption continues to grow in the UK market with more than half of accounting professionals reporting regular AI usage — 36% use AI weekly, and 24% report using AI daily.

Despite the strong adoption trend, there’s still uncertainty, as 10% report that they use AI just a few times a year, and 24% have never used AI. Fears around the use of AI stem from data quality concerns (46%, the highest in Europe), privacy and security concerns (41%) and lack of staff experience (41%). Accountants should consider training in safe AI adoption, to unlock efficiencies and time savings.

4. Advisory Services Will Overtake Compliance as the Main Value Proposition

With automation handling routine tasks, firms will shift toward strategic advisory, using data and AI to deliver proactive, personalized guidance.  Currently, 60% of accountants offer advisory services, and 41% say they plan to expand those offerings in the year ahead.

5. Talent Strategies Will Focus on Flexibility, Upskilling, and Tech Enablement

The profession faces a skills drain and changing workforce expectations. In the UK, 73% of firms worry about attracting and retaining talent and 50% plan to invest in professional development in the coming year. Firms will prioritize flexible work, technology-enabled upskilling, and well-being to attract and retain talent. Demand for AI-literate professionals will surge.

6. Cloud Adoption and Workflow Automation Will Be Ubiquitous

In the UK, 28% of firms are fully in the cloud, and 57% use hybrid solutions. Cloud-based and hybrid technology infrastructures will become the norm in 2026, enabling remote work, operational resilience, and seamless client service. Workflow automation will be essential for meeting deadlines and managing complexity.

7. Marketing Will Go Digital, Automated, and AI-Driven

To stand out in a crowded market, firms will leverage AI and automation for marketing. In the UK, 14% of firms already use advanced AI for marketing content, and 58% of tax and accounting firms plan further implementation. Automated emails, AI-generated content, and chatbots will become standard marketing tools, helping firms expand their reach and build trust.

8. Client Expectations for Digital Engagement Will Intensify

Clients will expect real-time insights, mobile access, and seamless digital communication. UK accountants are beginning to consider which tools will enable them to move seamlessly into advisory. Half of UK respondents said that updating their technology has enabled them to be more efficient, and 34% report higher client satisfaction as a result. Firms will invest in digital portals, automated onboarding, and AI-powered client service to meet these rising expectations.

9. Regulatory Complexity Will Drive Investment in Compliance and Technology

Regulatory change remains a top concern for UK accounting firms: 36% of UK accountants say that keeping up with evolving tax laws and regulatory changes will have a significant impact on their firm in the next 12 months, and a further 51% expect some impact.

Evolving regulations will push firms to invest in compliance expertise, digital tools, and ongoing training. Staying ahead of regulatory change will be a strategic imperative.

10. The Gap Between Tech-Forward and Traditional Firms Will Widen

For UK accounting firms, growth is a clear priority, with 61% identifying it as their top goal for 2025 — the highest in Europe.  In 2026, firms that embrace technology, invest in talent, and adapt to new service models will pull ahead in growth and profitability. Those slow to change risk falling behind as the industry consolidates and client expectations evolve.

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