What’s happened this month that you and your clients need to know?
We hope you enjoy our latest monthly collection of news and announcements that will impact and interest accountants and their clients.
A new financial year is underway and you’ll already be busy on their behalf but we have your back – our accountants hub exists so you’ll have access to the most important and accurate insolvency information whenever you need it.
But you can’t be everywhere and read everything all at once, so we collect the most interesting and important business and insolvency news stories every week along with regular new blogs on a range of relevant topics for you each and every week.
We’re always keen to hear what you think so email us at ask@businessrescueexpert.co.uk because we really want to write what you really want to read!
Accountants are increasingly concerned about UK’s economic performance
The latest Global Economic Conditions Survey conducted by the Association of Chartered Certified Accountants (ACCA) and the Institute of Management Accountants (IMA) shows that confidence among UK accountants is up for the first quarter of 2025.
Although small and medium sized business accountants are more hopeful as a collective, the level remains below historical averages and has to be measured against ongoing signs of stress in other core business indicators.
The survey has been tracking global and regional sentiment since 2011 and overall presents a mixed picture of the UK. New orders have increased for the second consecutive quarter and the employment index has posted a “decent improvement” but capital expenditure has declined and remains at historically low levels.
Reports of increased operating costs are at their highest point since Q1 2023 while problems securing prompt payment and accessing finance both rose for the second quarter in a row.
The report notes that “these risk further straining business cashflow and overall financial viability”.
Jonathan Ashworth, Chief Economist at ACCA said that prolonged weakness in sentiment could have broader repercussions. He said: “Global growth has generally proved quite resilient over recent quarters. Nonetheless, the longer that confidence remains depressed, the greater the risk that a self-reinforcing negative cycle could potentially develop, with firms pulling back on orders, capital expenditure and hiring.”
Ashworth added that worsening global trade tensions since the survey’s completion have heightened downside risks.
The report identifies economic performance as the top risk across all sectors with Cybersecurity ranked highest among financial service respondents and tied with talent scarcity in the public and not-for-profit sectors.
In the corporate sector, economic conditions were the leading risk followed closely and unsurprisingly by geopolitical instability.
HMRC Tax Investigations last nearly four years on average
New research shows that HMRC tax investigations are running on average for three years and nine months with late payment interest peaking as a result.
At any given time it’s predicted that half of the UK’s biggest businesses are under investigations which are taking longer to fulfill. There are approximately 2,000 businesses that fall under HMRC’s Large Business Service scope in the UK (having an annual turnover of £200 million or more) and HMRC has 2,000 open cases looking into the affairs of half of these. Additionally, many of these have been ongoing for more than four years.
Bryn Reynolds, partner at Pinsent Masons who produced the research said: “HMRC needs to be more rigorous in closing long running cases down. Having cases running for three, four or five years should be the exception rather than the average.
“The government has pledged additional funding to HMRC to recruit more tax officers, aiming to improve tax collection and reduce unpaid liabilities.
“However, there are concerns over whether increasing resources will actually lead to faster resolutions, given HMRC’s internal delays and cautiousness about closing cases.”
The increase to the interest rate for late payments up to 8.5% on April 6 2025, the highest this rate has been since December 2007, means that the longer these disputes go on for, the larger the bill will be for the business when it comes to settling.
Failure to Prevent Fraud offence becomes live on Sept 1st 2025
A new offence of “Failure to Prevent Fraud” comes into force on September 1st 2025 under the Economic Crime and Corporate Transparency Act (ECCTA) which will see accountants and their clients face tighter corporate liability rules.
Modelled on the UK Bribery Act 2010, the new law makes organisations criminally liable if an employee or agent commits fraud for the company’s benefit – unless the company can prove it had “reasonable fraud prevention procedures” in place at the time.
The offence applies to large companies and partnerships that meet two of the following three criteria:-
- Have 250 or more employees
- Have over £36 million in annual turnover
- Have assets exceeding £18 million
The introduction of Failure to Prevent Fraud coincides with a wider raft of UK and EU-level regulations affecting cross-border financial operations.
These include the Digital Operational Resilience Act (DORA), Instant Payment Regulation (IPR) and PSD3 – all of which will impact UK firms with EU clients or entities. Despite Brexit, regulatory alignment remains relevant, particularly for firms managing payments or client assets across jurisdictions.
Former Chancellor says graduates shouldn’t pursue a career in accountancy
Speaking on a recent edition of the Jimmy’s Jobs of the Future podcast, former Chancellor Sir Jeremy Hunt suggested that medicine or IT would offer more secure career paths than accountancy due to the increased usage of AI.
He expressed concern about “certain markets” where graduates would face a “pretty dead” end using accountancy as a prime example.
Bruce Cartwright, CEO of the Institute of Chartered Accountants of Scotland (ICAS) responded that while there were valid concerns to be addressed regarding the potential impact of AI on accountancy, he disagreed with the assertion that this would make it an unviable career path.
He said: “Accountancy, far from being an outdated profession, is at the heart of the modern economy, providing essential services to businesses, government and individuals.
“While AI will likely mean fundamental changes on the number crunching side, it will ultimately add value to business and allow accountancy professionals to focus on more strategic activity.”
Tax Scheme Avoiders targeted by HMRC
The government has proposed giving HMRC additional powers and stronger sanctions to clamp down on promoters of tax avoidance schemes in a consultation published alongside the Spring Statement.
In 2005/06 HMRC estimated that mass-marketed tax avoidance schemes sold to individuals cost the UK £1.5 billion, Latest estimates indicate this has now reduced to around £500 million but the government believe further action is required to enable HMRC to target the 20 to 30 currently active promoter organisations.
The consultation process for “Closing in on promoters of marketed tax avoidance” closed on June 18th 2025 and can be responded to by clicking the link above.
The range of measures under consideration include strengthening and expanding the disclosure of tax avoidance scheme (DOTAS) rules; introducing new stop and information notices and taking action against legal professionals including accountants involved in promoting such schemes.
More young accountants are establishing their own firms
A new trend has been identified of qualified young accountants going out on their own and establishing their own firms rather than work within the auspices of older or existing accountancy businesses.
New data from the Association of Accounting Technicians (AAT) found that the number of licensed accountants qualified to run their own businesses has surged by 59% over the past seven years with a significant spike among under-34s.
Since 2018, the number of licensed members under 34 has jumped 755% from 119 to 1,018. This trend reflects a broader shift in accountancy where technical accountants are prioritising greater flexibility and independence, convinced that the only way to achieve it and work/life balance is to launch their own firms.
The gender balance is also interesting with more women starting their own firms with females representing 56% of AAT’s licensed accountants this year.
Scottish Government doubles Charity audit income threshold
The Scottish Government has announced a commitment to raise the charity audit income threshold from £500,000 to £1 million which will see a significant shift in the regulatory landscape facing Scottish charities.
The change will take effect with the introduction of new Charities Accounts (Scotland) Regulations in the autumn and is aiming to alleviate some of the financial and administrative burdens faced by many charities and their accountants.
Charities were previously required to undergo costly and time-consuming audits but can now opt for independent examinations which are generally less rigorous and more cost-effective, allowing them to free up resources and allocate more funds directly to their charitable activities.
The income threshold has been held at £500,000 for 20 years and will require careful planning and consideration by trustees to ensure continued financial oversight and compliance with both regulatory and internal governance requirements.
Scottish Chambers of Commerce see continuing difficulties after tough first quarter
The latest Quarterly Economic Indicator (QEI) from the Scottish Chambers of Commerce (SCC) shows a business landscape in Scotland characterised by flatlining demand, stalled investment and ongoing significant cost pressures with increased taxation overtaking inflation as the number one concern for their members.
Doug Smith, vice-president of Scottish Chambers of Commerce and chair of the SCC Economic Advisory Group, said: “The cost of doing business is simply unsustainable.
“Employers are being published for hiring through regressive tax hikes, the prospect of the administrative burden of the Employment Rights Act and NIC increases resulting in an economic sedative when what we need is an economic stimulant.”
Dr Liz Cameron CBE, Chief Executive of SCC said: “Rising taxes, high energy bills and skill shortages are creating a perfect storm. Margins are razor-thin, recruitment and investment plans are on hold and without immediate intervention, we will see more businesses cut back or close entirely.”
The national picture echoes the SCC’s findings. The British Chambers of Commerce’s Quarterly Economic Survey representing over 5,000 UK firms, found Employer NICs are the single biggest concern – with 59% of firms citing it and 55% expecting price increases driven by labour costs.
Hospitality was the sector that saw the most impact with 40% of respondents in the sector saying that they planned to scale back on investment this year.