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25 Trends for 2025


As we hurtle headlong into a new year, the CPAA team looks at what lies ahead, and the trends worth being aware of and tapping into during the year ahead. Here’s our 25 topics to have on your radar for 2025:



 

  1. Busy Season Demands: At the start of the year, 5.4 million taxpayers were yet to file their 2023/24 self-assessment returns. It highlights persistent challenges in meeting deadlines. Accountants have to manage workloads efficiently and guide clients to avoid penalties – and keep stress levels and working hours manageable. Hang on in there!

 

  1. Audit Reform Pressure: There’s mounting pressure on the Government to deliver long-overdue audit reforms. The Financial Reporting Council (FRC) is urging action. Firms must stay informed about potential legislative changes to maintain compliance and client trust. The Audit, Reporting and Governance Authority (ARGA) will replace the FRC, and aim to restore confidence in the UK's corporate governance.

 

  1. FinTech Evolution: Advanced technologies like AI, machine learning, and blockchain are revolutionising the business landscape – including accounting. Over 75% of firms increased tech spending in 2024, reflecting an industry-wide focus on innovation. Smaller firms are leveraging tech to enhance efficiency within limited budgets.

 

  1. Upskilling Focus: Accountants are taking on roles far beyond traditional expectations, making continuous upskilling vital. Employers who invest in training not only boost productivity but also improve retention and job satisfaction.

 

  1. Hybrid Work Standard: Remote and hybrid work models are now the norm in accounting, thanks to cloud tools and virtual collaboration platforms. Over 77% of professionals believe flexible work should continue, with 15% advocating for fully remote arrangements. This trend highlights the importance of adaptability in the workplace.

 

  1. MTD ITSA Prep: The 2026 deadline for Making Tax Digital for Income Tax Self-Assessment is fast approaching. Accountants must ensure their systems and clients are ready for the changes. Bridging the knowledge gap with clients will be critical in 2025.

 

  1. Talent Shortage: The accounting sector faces a significant talent gap due to an ageing workforce and rising demand for specialised skills. Firms must focus on development programmes including qualification and CPD, competitive pay, and positive workplace cultures to attract and retain top talent. The CPAA is pleased to support the sector with a suite of qualifications.

 

  1. Raising Standards: The Government’s ‘Raising standards in the tax advice market’ consultation has ended. The Government recognises that time will be needed to implement both mandatory registration and action to strengthen the regulatory framework and plans to do this through a future Finance Bill, with legislation coming into effect once HMRC systems are ready. Watch this space for updates this year.

 

  1. Cloud Dominance: Cloud-based accounting has become the industry standard, offering real-time insights, enhanced security, and remote collaboration. The shift away from traditional software has boosted efficiency and flexibility for firms and clients alike. This trend shows no signs of slowing.

 

  1. AI Transformation: Artificial intelligence continues to revolutionise accounting by automating tasks like data entry, reconciliation, and analysis. Over half of UK accounting practices are expected to adopt AI within five years, unlocking new opportunities for advisory roles. AI’s potential extends far beyond routine functions. Explore, practise, and tap into the wealth of free resources, newsletters and tutorials to help you on this journey.

 

  1. Cybersecurity Priority: Cybercrime is becoming increasingly sophisticated, putting sensitive financial data at risk. Firms must adopt robust security protocols, including encryption and multi-factor authentication. Staying ahead of these threats is essential to protect clients and maintain trust.

 

  1. Economic Budget Ripples: The UK’s latest budget introduced tax increases and wage hikes, raising costs for businesses. Sectors like retail and hospitality are particularly affected, with predictions of job losses and price increases. Accountants will play a key role in navigating these financial pressures.

 

  1. Non-Financial Reporting: ESG factors are now integral to financial reporting, with new UK Sustainability Reporting Standards (SRS) set for release in 2025. Businesses must disclose environmental impact, social responsibility efforts, and governance practices. Mandatory compliance for listed companies begins in 2026, requiring firms to prepare now. Early adoption can provide a competitive edge.

 

  1. Companies House Changes: It’s a year since the Economic Crime and Corporate Transparency Act 2023 became law and created the framework for changes to the role of Companies House. Changes are planned throughout 2025 to application and verification processes, protection of personal information, and information required for Limited Partnerships.

  2. In-Person Events Matter: Despite the rise of virtual learning, in-person events remain crucial for networking, skill-building, and sharing ideas. They provide opportunities to connect with industry leaders and peers while boosting confidence and motivation. The CPAA’s regional seminars are perfect for this and worth adding to your diary this year.

 

  1. CPD Essential: Continuous professional development (CPD) is vital for keeping skills sharp and staying competitive. CPD not only prepares professionals for greater responsibilities but also boosts confidence and creativity. Ongoing learning is a cornerstone of career advancement, helping practitioners make better decisions that can take your career further.

 

  1. Green Vehicles: Electric and ultra-low emission vehicles (ULEVs) are becoming increasingly popular, so to support this shift while balancing revenue needs, the Government has announced an increase in the percentage rates for company car tax – growing gradually year on year. It’s to encourage the switch to more sustainable transportation while ensuring tax revenues keep pace with greener vehicle adoption.

 

  1. Tech Adoption Variance: Technology adoption varies by firm size, with large firms focusing on optimisation, mid-sized firms targeting balanced growth, and smaller firms prioritising efficiency. Each approach reflects unique challenges and resources; understanding these nuances can help firms tailor their strategies effectively.

 

  1. International Wealth: The UK Finance Bill 2025 introduces some important changes, especially for inheritance tax and the taxation of wealth from overseas. The old “domicile” rule will be replaced with a new “long-term UK resident” test, which will help decide who is considered a resident for tax purposes. It could lead to changes in how inheritance tax applies to people with international wealth.

 

  1. Financial Pressures Grow: Rising wages, National Insurance costs, tax thresholds and the rising cost of doing business are increasing financial pressures on businesses across all sectors. Accountants will be vital in helping firms navigate these challenges. Practices must also adapt to their own rising operational costs, too.

 

  1. UK Economic Uncertainty: The UK economy is projected to grow by 1.7% in 2025, but challenges like inflation and trade frictions persist. Accountants must prepare for these uncertainties while supporting client growth strategies. Agility and insight will be key.

 

  1. Compliance Demand: As regulations grow more complex, specialists in compliance are increasingly sought after. Expertise in tax laws, auditing standards, and governance can open lucrative opportunities. Staying ahead of regulatory changes is critical for success.

 

  1. Value of Professional Bodies: Joining professional bodies, like the CPAA enhances credibility, provides access to resources, and connects members to a big network. Professional bodies set ethical standards and promote best practices. Membership is a hallmark of trust and professionalism.


  2. Accountants in Demand: There’s a well-documented skills shortage in the accountancy profession. Those with digital-first skills in areas such as AI, data analytics and cloud computing are particularly in demand – and will continue to be, it’s a surefire way to futureproof your career. The CPAA is here to support you with topical and practical CPD content, plus qualifications to provide a foundation of knowledge, skills and experience in key areas.

 

  1. Sector Resilience: The UK accountancy sector remains optimistic despite challenges. A recently published report highlights the resilience of the UK’s accountancy sector amidst growing complexity and change. The “UK Accountancy Sector Outlook Report 2024-2025” is a survey of over 100 top accountancy firms and responses show that, despite several macroeconomic and industry-specific challenges, the sector is optimistic about growth. Innovation, sustainability, and technology will drive growth in 2025. Flexibility and adaptability will be key for firms of all sizes.

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