Archives January 2026

The era of MTD for Income Tax is upon us. But Self Assessment isn’t going away anytime soon.

The goal moving forward for practices is to find a way to support all sole traders and landlords, regardless of which HMRC path they’re following—while also supporting client growth.

Practices need to find a way to somehow deliver what clients require: from a light touch, collaborative approach for those more confident in business finances, to a full-service offering for those who have traditionally relied heavily upon their accountant. Even in the MTD era, the latter is still entirely possible—and still desired by some clients, of course.

Providing this broad support is what this article is all about. Here’s what we discuss.

MTD for Income Tax: Redesigning your procedures and workflows

What we’re discussing is technology-driven.

Not only is the clue right there in the title with MTD—it’s about digitalising tax, after all—but applied and smart use of technology is the only way accountants and bookkeepers are going to get through without serious stress.

This means deploying the right software and going digital-first to transition from Self Assessment to MTD as the decade progresses—and as the various milestone deadlines are passed in 2026, 2027 and 2028 (and possibly beyond).

Meanwhile, as an accountant, you’ll also have to help many of your clients along the same journey. Their success is your success. Their growth is your growth.

Your overarching digital strategy needs to be able to deliver for the “do-it-with-me” clients, who need a partner, and a full service “do-it-for-me” approach for clients who need that, too.

Others will prefer support based on “show me,” in which you’ll offer them guidance but, essentially, they’ll do the majority of work themselves.

You need to support MTD’s quarterly check-ins, bearing in mind these can (and maybe should) be more frequent if clients desire it. You need to support the MTD tax return, as well as traditional yearly tax return checkpoints for Self Assessment happening at the same time. All while meeting ongoing quarterly and monthly VAT deadlines, of course.

The fundamental truth is this: MTD for Income Tax shifts accountancy to a continuous process rather than one that leads up to the final end of year calculations. This is a monumental shift, and it needs to form the basis of any changes.

Whatever support your clients require, you should already be redesigning your own procedures and workflows, your data processing, and the way you interact with your clients to make them all digital-first.

Where technology helps with old vs new

Technology increasingly allows for light touch reconciliations.

Whereas under the old systems, you would typically review and match every item manually, the vast majority of these reconciliations can now be carried out automatically.

This is particularly true for your clients whose businesses include high transaction volumes and those who produce simple, clear, consistent data. It works well for data sets such as bank account and credit card statements.

While they let technology manage the majority of transactions, your teams can look out for exceptions and anything that might raise a red flag.

However, groundbreaking agentic AI technology such as that provided by Sage Copilot can even handle this element.

It’s worth adding, though, that light touch reconciliations require high quality, accurately collated data—via technology that can easily and correctly identify these anomalies. This will enable it to approve only those transactions that are legitimate.

The decades old mantra of technology has always been “garbage in, garbage out,” and so it’s essential that your clients record and submit data correctly.

Direct bank feeds from clients can help here, as they create accurate, timely digital records, as can data entry automation tools like AutoEntry, that can take snapshots of receipts or bills and then automatically transfer the data to you for processing (or, more often than not, can be automatically processed via AI rules).

You can use technology like this to help automate processes and reduce the chance of manual data entry errors that can occur when human beings have to copy from one statement or spreadsheet to another.

You can then set up this software to categorise the various items that pop up on a bank feed for your HMRC submissions and interactions.

For instance, you’ll need to strip out your clients’ non-taxable income and any personal expenditure they might have. You should also adjust any items of income that are net of fees, commissions, or charges before doing clients’ tax returns to ensure that you’re declaring gross income but then netting off these expenses.

Build a digital recordkeeping stack

The fundamentals are that you need to build an end-to-end digital record keeping stack.

If you’ve already got one in place, you’ll need to ensure not only that it’s fit for purpose in the age of MTD, but that it’s allowing your practice to run at optimal efficiency. There simply isn’t likely to be any spare human capacity.

This end-to-end digital outlook is important. It’s one step beyond traditional, stand-alone technologies, and the end of processes to which paperwork is fundamental.

Instead, you’ll need to ensure that you’ve got technologies in place that are integrated with each other. This means that they can work together as a single system to manage and process your digital records and those of your clients efficiently and in ways that comply with regulations and cybersecurity protocols. Digital linking is as important as it ever was!

As a result, client income and expenditure can be recorded fully digitally, from the start to the finish.

Your technology stack should ensure that these records of income and outgoings are automatically ingested into quarterly updates before going through to the final year end declaration.

You’ll need to ensure that this happens automatically and seamlessly. Manually typing in figures and details and even copying and pasting them from one source or spreadsheet to another is not only inefficient—the digital linking rule is enter once, and use digital links after. That means no copy and paste, and no rekeying, of the core tax records.

Instead, you should be deploying software that is fully integrated and offers an end-to-end solution for you and your clients so that there are no messy transfers or transitions between your systems and those of your clients.

Bridging software: A stopgap measure only

You might find that some clients on spreadsheets are struggling with the transition, in which case you could consider using bridging software.

This provides a link between old style accounting and record-keeping procedures such as spreadsheets and HMRC’s systems on the other.

But, at this stage in the MTD for Income Tax journey bridging software can be regarded as only a stopgap. This is what HMRC says:

“Keep in mind, spreadsheets won’t have the same timesaving, user-friendly features as many all-in-one bookkeeping apps.”

If clients do have to use it, make it clear that they still need to go through the full digitisation process including the use of bookkeeping software as soon as possible. Half measures are only going to make life worse for them, and you.

As you implement the digitisation process, you might find that other clients also have their own, specific requirements.

Sole traders and smaller landlords, for instance, will probably find mobile-first bookkeeping most useful. This is entirely feasible. The days of always requiring a desktop PC are gone.

Similarly, you should already be encouraging other clients whose work means that they’re out and about to use apps on their smartphones. This can be useful for making and taking payments that feed directly into the system in real time and, as mentioned earlier, for taking photos of receipts whose amounts, details and dates can be automatically read by the technology and fed into the system.

Implementing Client Management Software

As you move to a digital-first way of working, it’s also a good idea to implement client management software.

This can manage tasks and workflows such as notifications for deadlines for submissions as well as automatically recording billable hours.

Increasingly, specialist agentic AI can take care of critical tasks. Sage’s MTD for IT Agent can automatically complete many tasks.

This streamlines the entire MTD process by automating complex, interconnected tasks. For example, it anticipates needs, organises data, and highlights anomalies—without you needing to ask. Practices can save an average of five hours per week and focus more on strategic work. It significantly reduces admin by up to 80% with features such as autogenerating quarterly submission reports, proactive document chasing via multiple communication channels, and a 40% reduction in manual invoice handling.

Other parts of client management software provide insights into staff workloads and performance as well as revealing the profitability of particular clients. You’ll be able to identify more quickly and accurately whether you’re charging enough—or even overcharging—for each account.

As communication with clients becomes more frequent and data is shared more often, client management systems can help with client management. Routine emails, requests for permissions and approvals plus notifications can be managed automatically.

Similarly, client management systems can enable you to share documents and data with clients as well as managing e-signatures more quickly and easily. You can also use it to set up client interaction portals so that your clients know how to submit data and share documents as well as signing them digitally.

Making Tax Digital: What your teams need to know

As well as implementing these new technologies, you should be training staff and helping them to develop a new mindset.

They need to become familiar now with cloud bookkeeping software and to be ready to review and understand data rather than simply inputting it manually and using it to carry out calculations. They should be ready to identify exceptions to this data and their significance as well as understanding more generally how they should interact with MTD for Income Tax technology.

Your teams need to be ready to answer clients’ questions and to guide them on how to comply with the new deadlines, requirements and ways of working. They should be showing clients how to use the new technologies and checking on their progress as they provide ongoing support.

This is a major change to the way that accountants work and interact with their clients. However, you can lead them through the process and cement your role as business advisors as well as ensuring that you’re compliant with HMRC’s new digital technology and requirements. Better still, reducing repetitive, manual processes will free up your teams to carry out more interesting, fulfilling tasks and to add more value.

Workplace health and safety is not a ‘nice-to-have’ or a box-ticking exercise. It’s a fundamental responsibility that protects your people, your business and your reputation. In the UK, the authority setting and enforcing these standards is the Health and Safety Executive (HSE). For many employers, the HSE is a name associated with inspections, regulations and potential fines, but its role is far more proactive and supportive than you might think.

Ignoring your health and safety duties isn’t an option. The consequences of non-compliance are severe, ranging from financial penalties to criminal prosecution. But beyond avoiding penalties, building a culture of safety is about creating an environment where your team can thrive. It’s about demonstrating that you value their wellbeing above all else. This guide will demystify the HSE, breaking down its functions, your responsibilities and how you can move from reactive compliance to proactive safety leadership. Stop seeing health and safety as a burden and start using it as a tool to build a stronger, more resilient business.

What is the Health and Safety Executive (HSE)?

The HSE is Great Britain’s independent national regulator for workplace health and safety. Its core mission is to prevent work-related death, injury and ill health. Operating as a non-departmental public body, it is sponsored by the Department for Work and Pensions and holds authority across England, Scotland and Wales.

The HSE is the primary enforcer of the Health and Safety at Work etc. Act 1974 and the suite of regulations that fall under it. While it covers most industries, it works alongside local authorities, who are responsible for inspecting lower-risk workplaces like offices, shops and warehouses. In essence, if you run a business in Great Britain, the HSE’s rules and guidance define your legal obligations for keeping your employees and anyone affected by your work activities safe from harm.

Understanding its identity is one thing, but knowing what the HSE actually does is what empowers you to manage compliance effectively.

What is the role of the Health and Safety Executive?

The HSE’s role is not just to police workplaces; it is to shape the entire safety landscape. It achieves its mission through a combination of enforcement, research and partnership. The ultimate goal is to ensure that every employer understands and fulfils their duty of care, creating a system where safety is embedded in business operations, not just an afterthought.

This multi-faceted approach began decades ago, founded on a landmark piece of legislation that transformed the UK’s attitude to workplace safety.

History of the Health and Safety Executive

The HSE was formed as a direct result of the Health and Safety at Work etc. Act 1974. Before this Act, safety legislation was a fragmented patchwork of industry-specific rules that were often inconsistent and difficult to enforce. The 1974 Act revolutionised this by creating a single, overarching framework that placed the responsibility for safety squarely on those who create and manage risks—the employers.

The Act established the Health and Safety Commission to oversee policy and the Health and Safety Executive to act as its enforcer. In 2008, the two bodies merged, creating the single organisation we know today. For almost 50 years, the HSE has been at the forefront of driving down workplace accidents and fatalities, making UK workplaces among the safest in the world.

This long history has given the HSE a broad and powerful set of functions designed to protect workers and the public.

Health and Safety Executive duties and responsibilities

To achieve its mission, the HSE performs several key functions. These duties are not just about reacting to failure; they are about proactively preventing it through a strategic mix of enforcement, guidance, and policy influence. Understanding these functions helps you appreciate the seriousness of your obligations and the resources available to help you meet them.

Enforcement of legislation

This is the HSE’s most visible duty. It has the power to hold businesses and individuals accountable for breaches of health and safety law. When an organisation fails in its duties, the HSE can take a range of enforcement actions.

These actions are proportionate to the risk and the degree of non-compliance and can include:

• Improvement Notices: Requiring you to take specific actions to correct a breach within a set timeframe.
• Prohibition Notices: Ordering you to stop an activity immediately if it poses a risk of serious personal injury.
• Prosecution: Taking companies or individuals to court for serious offences, which can result in unlimited fines and even imprisonment for individuals.

Enforcement is not about punishment for its own sake; it’s about ensuring immediate risks are controlled and sending a clear message that safety failures will not be tolerated.

Inspection and investigation

HSE inspectors have the right to enter any workplace without giving notice. They conduct proactive inspections to check that you are complying with the law and have effective safety management systems in place. These visits are not random; they are often targeted at high-risk industries or businesses with a poor safety record.

The HSE also investigates workplace accidents, diseases and dangerous occurrences. The goal of an investigation is not to apportion blame but to understand the root causes of the incident and prevent it from happening again. If an investigation reveals serious breaches of the law, it can lead to enforcement action.

Guidance and education

The HSE is not just an enforcer; it is also a vital source of information and support. It produces a vast library of guidance documents, approved codes of practice (ACOPs) and online resources to help you understand your legal duties and manage risks effectively. These resources translate complex legislation into practical, actionable advice.

From free leaflets on manual handling to detailed technical standards for specific industries, the HSE aims to empower employers with the knowledge they need to create a safe working environment. It also runs campaigns and works with industry bodies to raise awareness of specific hazards, such as work-related stress or asbestos exposure.

Policy development

The Health and Safety Executive acts as the government’s primary expert on workplace health and safety. The HSE uses its research, data and frontline experience to advise on new legislation and shape national safety policy. It works to ensure that UK laws remain fit for purpose, responding to new technologies, emerging industries and changing work patterns.

This policy work ensures that the UK’s regulatory framework continues to provide world-class protection for workers while remaining practical for businesses to implement.

Licensing and approvals

For certain high-hazard industries, the HSE acts as a licensing authority. Businesses operating in sectors like nuclear energy, offshore oil and gas and major chemical processing must obtain permission from the HSE before they can begin or continue operations.

This licensing regime requires these companies to demonstrate that they have robust safety cases and can manage their significant risks to the highest possible standards. It is a critical function that protects not only workers but also the public and the environment from the potential consequences of a major incident.

For most businesses, the most direct interaction with the HSE will be during an inspection. Knowing what to expect is key to a smooth and constructive experience.

Understanding Health and Safety Executive inspections

An HSE inspection can be a daunting prospect, but it doesn’t have to be. If you are prepared and can demonstrate a positive attitude towards safety, an inspection can be a valuable opportunity to validate your systems and get expert feedback.

Here’s what you can expect:

1. The Arrival: An inspector can arrive at any reasonable time and does not need to make an appointment. They will present their official identification and explain the purpose of their visit.
2. The Tour: The inspector will likely ask for a tour of your premises to observe work activities, speak to employees and assess physical conditions. They will be looking for evidence of both good and bad practice.
3. The Documentation Review: The inspector will ask to see your key health and safety documents, including your safety policy, risk assessments, training records and maintenance logs. This is where you prove your systems are not just on paper but are actively used. A clear, accessible WHS policy template can form the backbone of this documentation.
4. The Discussion: The inspector will speak with employees and managers to gauge the safety culture within the business. They want to know if your team feels engaged, trained and empowered to raise safety concerns.
5. The Feedback: At the end of the visit, the inspector will provide a verbal summary of their findings. They will highlight areas of good practice and explain any breaches they have identified.
6. The Follow-Up: If any legal breaches were found, the verbal feedback will be followed by a written report and potentially a formal notice. If you are billed for the inspector’s time under the Fee for Intervention (FFI) scheme, you will receive an invoice detailing the costs.

The best way to handle an inspection is to have nothing to hide. This means embedding strong risk management into your daily operations.

Managing health and safety risks

Compliance with the law isn’t about a one-off effort; it’s about creating a continuous cycle of risk management. It’s about building a system that proactively identifies hazards and controls them before they can cause harm. This is not just a legal duty—it’s the foundation of a responsible business.

Conduct regular risk assessments

A risk assessment is the cornerstone of your entire safety management system. It’s a careful examination of what could cause harm to people in your workplace, so you can weigh up whether you have taken enough precautions or should do more to prevent harm.

You must:

• Identify hazards: Pinpoint anything with the potential to cause harm (e.g., trailing cables, hazardous substances, work at height, sources of stress).
• Assess the risks: Evaluate who might be harmed and how and determine the likelihood and severity of that harm.
• Control the risks: Implement practical and effective measures to eliminate the hazard or, if that isn’t possible, control the risk.
• Record and review: Document your significant findings and review your assessment regularly, especially when there are changes in the workplace.

Employee training and engagement

Your employees are your greatest safety asset. They are on the front line, seeing the risks day in and day out. Engaging them in health and safety is crucial. This means providing clear instruction and adequate training on the risks they face and the control measures in place.

Training shouldn’t be a one-time event during induction. It needs to be an ongoing conversation, reinforced through team meetings, toolbox talks and regular refresher courses. An engaged workforce is one that actively reports hazards, suggests improvements and looks out for their colleagues. This is a key part of improving workplace health and safety and creating a resilient culture.

Adopt safety management systems

For larger or more complex businesses, a structured safety management system is essential. This moves you beyond ad-hoc measures to a planned, systematic approach. Frameworks like ISO 45001 provide a model for establishing policies, processes and objectives to manage safety performance.

A good system helps you integrate health and safety into all your business functions, from procurement to HR. It ensures clear roles and responsibilities, sets performance standards and drives continuous improvement. It transforms safety from a peripheral issue into a core business value.

Collaboration with the HSE

Finally, don’t view the HSE as an adversary. A proactive and cooperative relationship demonstrates your commitment to compliance. Engage with their guidance, use their online resources and if an inspector does visit, approach it as a learning opportunity.

Showing a willingness to work with the HSE to improve standards is far better than being seen as obstructive or negligent. A positive relationship can reduce the likelihood of formal enforcement action and ultimately helps you achieve the shared goal of a safer workplace for everyone. This includes focusing on mental as well as physical wellbeing, leveraging resources like mental health helplines and visual aids like a mental health know the signs poster.

Need more help?

Managing health and safety can feel overwhelming, especially on top of all your other responsibilities. It requires specialist knowledge, consistent effort and a deep understanding of your unique operational risks. But you don’t have to do it alone.

Your commitment to safety is a powerful statement about your company’s values. It directly impacts your team’s wellbeing and their overall employee experience. A safe and healthy workforce is an engaged, productive and loyal one.

Employment Hero provides the tools and resources to help you build that culture. From our WHS policy template and workplace wellness bundle full of employee wellness program ideas, we help you streamline processes and embed safety into your DNA. Don’t let compliance be a burden. Turn it into your competitive advantage.

Get in touch to see how Employment Hero can help you build a safer, stronger and more successful business.

London, 10 June 2025: London’s small and medium-sized businesses (SMEs) are struggling to keep pace with the rest of the UK’s employment recovery, with the capital recording the weakest job growth in May, a new report from HR, payroll and employment platform Employment Hero shows.

Employment Hero’s Jobs Report uses real-time data from 105,000 employees across small and medium-sized businesses with 1-500 employees in the UK.

Data from the end of May showed that London’s employment grew by just 0.7% over the month. This lags behind May’s national average growth of 1.2% and falls significantly short compared to other major regions. The North of England led the recovery with an exceptional 3.5% increase, while Wales recorded its first growth in May (2.8%) after a prolonged year-on-year slump. Meanwhile, the South of England (excluding London) achieved a growth rate of 2.2%.

The weakness in London’s SME employment growth comes amid a broader decline in job opportunities across the UK. The ONS June labour market report shows vacancies fell by 63,000 (7.9%) to 736,000 in the three months to May – the 35th consecutive quarterly decline. With 2.2 unemployed people now competing for each vacancy compared to 1.9 last quarter, London’s cautious hiring approach among small and medium-sized businesses reflects wider labour market pressures facing employers of all sizes.

London’s wage growth lags behind

The capital’s struggles also extend to wage growth, where London has recorded the slowest progress across all regions.

London’s wage growth over the past three months stands at just 0.2% – the weakest performance nationally, and well below other major regions that have seen more robust salary increases.

The findings suggest that while other parts of the UK are competing more aggressively for talent and driving up wages, London’s SME sector remains more cautious about both hiring and pay increases.

Regional rebalancing emerges

The data points to a potential economic rebalancing away from London’s traditional dominance, with regions that have historically lagged behind now showing renewed strength.

The North’s remarkable turnaround is particularly striking, as this region was the only one to experience negative year-on-year employment growth, yet has now posted the strongest monthly recovery.

Kevin Fitzgerald, UK MD of Employment Hero commented:

“It’s encouraging to see some real green shoots of recovery across the UK, especially outside of London. After a tough period, it’s great to see regions like the North of England and Wales showing  job growth.”

London’s slower pace this month stands out and could suggest a shift towards a more balanced national economy, where opportunity isn’t just concentrated in the capital. Movements like remote and flexible work have helped unlock talent and potential right across the country – and we’re seeing that reflected in these numbers.

At Employment Hero, we believe this kind of regional resurgence isn’t just good news – it’s essential. It gives more people a fair shot and lays the foundation for a more inclusive, resilient future of work,” said Fitzgerald.

London, 17 March: Employment continued to retract in February following the Government’s decision to hike job taxes, findings from Employment Hero Jobs Report shows.

Employment Hero’s SmartMatch Employment Report uses real-time data from 105,000 employees across small and medium-sized businesses with 1-500 employees in the UK.

Data from the end of February showed that employment shrunk by 0.4% across the month, following a slight growth of 0.2% in January.

On average, employment growth has decreased by 0.3% every month since October, when the hike to employer National Insurance contributions was announced. These changes will see employers pay an additional £900 in annual taxes per employee at the median wage*.

Young and Welsh hit the hardest

All age groups contributed to the month-on-month decline in employment, but those aged 18-24 were disproportionately impacted, with employment falling 1.8% for this group.

While the tax hikes are likely to be a contributing factor, the Government’s decision to eliminate the minimum wage for 18-20-year-olds is also a probable cause of the decline. 

From 1 April, employers will have to pay all adults aged 21 or over the National Living Wage of £12.25, which previously only applied to those aged 23 or over. The lower minimum wage for 21-22 year olds is being eliminated. 

Regionally, Wales saw the largest decline in employment with a 3.3% decrease in February – offsetting employment gains made over the last year.

Scotland and The South of England experienced the highest employment growth in February, both growing 0.9%.

Kevin Fitzgerald, UK MD of Employment Hero commented:

“This 0.4% contraction in employment growth is particularly concerning given its disproportionate impact on younger workers. While employers will have to pay more for these roles, the bigger challenge is that younger employees often require more training and support. Rather than replacing them, many SMEs will simply absorb the extra workload themselves, as they can’t afford the additional strain.”

“If this trend continues, we could see a much more challenging job market emerging in the months ahead, particularly for younger workers trying to get their foot on the career ladder. We are already nearing one million** young people not in education or employment – this will only get worse.”

London, 10 July 2025: Full-time pay in June saw its largest month-on-month increase since Chancellor Rachel Reeves delivered her Autumn Budget in October. 

Employment Hero’s June Jobs Report uses real-time data from 105,000 employees across small and medium-sized businesses with 1-500 employees in the UK. 

Data shows wages in June were 1% higher than May and up 1.6% versus three months ago.

This is a more positive picture than recent months, when wages plummeted in October to hit a low in January (-1.1% month-on-month), but have since been recovering slowly. 

Older generations see largest pay increases

Despite a backdrop of increased costs, including the National Insurance hike, small and medium-sized businesses are paying more for experienced new hires, who tend to be Boomers and Gen X workers. 

It is this older generation of workers who have seen the largest pay increases in June – up 4.6% month-on-month for Boomers and 1.9% for Gen X.

Whilst Millennials saw a small increase (0.6%), Gen Z was the only generation to see a month-on-month fall in salaries for new hires (-0.2%).

Kevin Fitzgerald, UK Managing Director of Employment Hero commented: 

“After a rocky few months following the Autumn Budget and tax hikes in April, signs of growth are finally starting to show across the SME industry. This uplift in pay will come as welcome relief to many workers feeling the pinch from cost-of-living pressures. It’s positive to see momentum building and the trend is heading in the right direction. But the challenge now is keeping that growth moving. The focus for small and medium-sized businesses must shift toward sustaining these gains and building long-term confidence.”

“We’re also seeing SMEs investing in older generations like Boomers and Gen X leading the way on salary growth. While that’s encouraging for seasoned workers, it’s a reminder that we also need to ensure younger generations, particularly Gen Z, aren’t left behind. They’re the future of the workforce and now is the time to give them the support and opportunities even amid ongoing cost pressures.”

The Employment Hero Jobs Report offers a monthly snapshot of the labour market in SMEs, based on real-time data from nearly 5,000 businesses and 105,000 employees. From wage growth to employment trends, it provides valuable insights into the evolving UK employment landscape and how small and medium-sized businesses are responding to economic change.

Full-time employment continues to go backwards following the Government’s disastrous decision to go after employers in its budget.

Employment Hero’s SmartMatch Salary Report uses real-time data from 90,000 employees across small businesses with 1-500 employees in the UK. 

Collected at the end of December, the real-time data shows the impact of the Government’s Budget in late October, when employer NICs were increased by 1.2% – just weeks after a raft of other employment reforms were announced.

Employers have immediately reacted to the changes, which are not due to come into force until April, slashing hiring and letting some staff go.

Overall the amount of people in full-time employment shrunk by 0.1% month-on-month, following a 1.7% drop in November, leading to an overall drop of 0.8% across the final quarter of 2024.

DROP CONCENTRATED IN YOUNGEST WORKERS AND HEALTHCARE WORKERS

The UK’s most vulnerable employees appear to be the most likely to lose out as a result of the hiring walkback.

There were 0.7% fewer 18-24 year olds in full-time employment at the end of December compared to November, and 0.3% fewer workers aged 55+.

And the worst retraction was seen in the healthcare sector, where there were 3.5% fewer full-time employees at the end of December than there were in November.

Employment Hero UK MD Kevin Fitzgerald said these figures showed a continued vote of no confidence from employers.

“It’s shocking that the typically strong holiday hiring season has led to a decline in employment. Employers are pre-emptively responding to the barrage of increased costs the Government is about to load onto them – but its workers who are losing out. The fact that young workers and healthcare staff are bearing the brunt of these decisions is particularly worrying, but two months of this drop suggests that more pain is on the way across the workforce. The true impact of the NICs increase could be far more severe than the Government has anticipated. It must reverse its jobs tax decision – or give small businesses some relief from the huge cost coming down the pipe.”

London, XX February: Workers at UK SMEs are not seeing sustained growth in wages as their employers prepare to pay the Government more from April, not their employees, as new legislation announced at October’s Budget kicks in.

Employment Hero’s SmartMatch Salary Report uses real-time data from 90,000 employees across small businesses with 1-500 employees in the UK. 

Data from the end of January showed growth in average monthly pay for the last three months was 0%, taking into account a slight rise in December and a drop in January and November.

This compared to an average of 1.1% median pay growth in the three months leading to the end of October, when the Government introduced a Budget that significantly increased the cost of employing people in the UK.

Full-time employment growth has also been anaemic since the Budget, suggesting employers are both wary to take on new staff and wary to give existing staff raises.

January saw a slight pickup in full-time employment of 1.4%, but this followed drops of 1.7% in November and 0.2% in December.

PAY UNDERLINES NORTH SOUTH DIVIDE

The impact of the Government’s Budget is being felt hardest in its traditional heartlands in the North.

The median full-time worker at an SME in the north of England saw just 1.6% annual wage growth in the year to the end of January – well below inflation. This suggests the region’s SMEs are facing particular challenges in maintaining competitive pay.

Greater London continues to offer the highest median annual rate at £41,175, significantly above the next highest region, the East of England at £36,597.

Kevin Fitzgerald, UK MD of Employment Hero commented:

“While workers at SMEs are still seeing their pay grow faster than inflation year-on-year, the month-to-month momentum in wage growth has completely stalled. This is particularly concerning as we approach April’s rise in employer National Insurance contributions.

“SMEs want to reward their employees and share the benefits of lower interest rates, but the looming jobs tax is forcing them to be extremely cautious with their wage bills. Rather than giving workers the pay rises they deserve, small businesses are having to set aside funds to cover increased tax burdens. This is well set out in the international research on jobs taxes – it is workers who end up losing the most.”

Are you a sole trader or landlord who needs to follow the MTD for Income Tax rules?

Stay on track for the April 2026 deadline with a click-to-tick checklist that turns complex requirements into simple, doable steps—so you’re confident, compliant, and as ready as you can be.

Here’s why you should download this unique PDF:

• Know exactly what to do next: Clear, sequenced actions pull out key action areas, including some lesser-known parts.
• Make progress visible: Unlike a traditional guide to MTD for Income Tax, the click-to-tick interactivity creates momentum and keeps your eye on the ball.
• Avoid last‑minute stress: Get things correct today, to reduce risk of errors and penalties later.
• Share with your team: Spread the word about this once-in-a-generation change, and keep everyone aligned across tasks.

To use the PDF, simply click (or tap) to tick the box alongside each of the six entries in the list as you progress, then save the file. When you open it again, the checklist will be as you left it, and you can complete more steps as you progress.

Alternatively, simply print out the A4 PDF, pin it to a noticeboard, and complete it by hand with a Sharpie each time you achieve one of the steps!

Thinking about a career change in 2026? These days, switching careers isn’t just about a new job, it’s a strategic move to future-proof not just your professional skills, but your earning potential, as well as finding work that truly aligns with your goals.

While a jump into a new career may feel daunting, it’s actually a calculated investment into your long-term growth and adaptability in today’s job market. Here we’ll show you how to make a successful change in career by assessing where you are now, identifying high-growth opportunities and building a clear, strategic plan for a confident career change in 2026.

Why a career change in 2026 is a smart move

It goes without saying that the world of work is changing faster than ever. Trends that were once on the horizon are now shaping today’s roles and industries. The rise of AI and automation is everywhere and is constantly evolving the world as we know it. And thus, we must also evolve, making a change in career more necessary and accessible than before.

At the same time, employers are shifting their focus. The CIPD reported that 83% of UK employers are now prioritising skills-based hiring over traditional qualifications. This has opened new doors for many professionals with transferable skills to move into a new field. Industries including green energy, digital health and advanced tech are creating roles that didn’t exist just a few years ago, offering fresh opportunities to those willing to adapt.

Common fears and risks when making a career change

A change in career may be the logical next step for you as a professional, but that doesn’t stop you from worrying about the what ifs and unknowns. Let’s explore some of the more common fears and why they might not be as much of a problem as you think.

Fear of starting from scratch

The biggest worry you might have is the fear of going back to square one. But in reality, most career changes aren’t a complete reset; your experience, knowledge and transferable skills can still be put to use. Employers are putting more value on adaptability, problem solving and communication which means much of what you’ve already built in your career remains relevant.

Fear of a pay cut

A temporary drop in salary is to be expected, especially when starting in a completely new field. However, a strategic pivot will most likely end up giving you a stronger and higher earning potential in the future. Which is why planning your transition carefully by building skills and targeting roles with clear progression is key in minimising financial risk.

Fear of failure or making the wrong move

You may wonder if you’re choosing the ‘wrong’ career but don’t let this stop you in your tracks. Think of it as an experiment rather than a final decision until you’ve secured a job offer. You could always try freelance work or small projects to test a new direction before committing.

Fear of age or experience working against you

Some worry that they are either too junior or too senior to make the switch. In 2026, age shouldn’t be a consideration when it comes to being hired for a role. Instead an employer should focus on your capabilities, skills and qualifications to decide whether or not you are suitable.

Managing risk with a strategic approach

The biggest risk when changing careers is doing it without a plan. A structured approach that involves research, gradual upskilling, networking and practical experience can significantly reduce uncertainty and increase your chances of success.

How long does a career change take in 2026?

Well the short answer is: it depends. 

Firstly, on how closely your current skills align with your new role and how much retraining is required. For some, a career change can take 3-6 months particularly when moving into roles that value transferable skills such as project management, HR, digital marketing or customer success. These transitions often involve targeted upskilling alongside an active job search.

More technical or specialised career changes typically take 6 to 12 months, allowing time to complete courses, build practical experience and develop a portfolio. Highly regulated or technical careers may require 12 to 24 months of retraining, especially where formal qualifications are essential.

Ultimately, a successful career change isn’t about speed but preparation. A clear plan, realistic milestones and consistent progress are far more important than rushing into the next role.

But the question on everyone’s mind? How to actually pivot into a brand new career in 2026? Let’s find out.

Step 1: Assess your current career

Before you let yourself start daydreaming about your new role, you first need to understand where you currently are.

Identify what’s not working

Think about what’s prompted you to think about switching careers? And try to be specific. Are you feeling unrecognised, like half of UK employees according to our Work That Works Report or is your industry in decline or perhaps do you lack opportunities for growth? All valid reasons for wanting a career change, but your specific reason will be the foundation of your search.

Evaluate your transferable skills

Despite what you may think, you will have more transferable skills than you first thought. It’s not just your technical abilities that will transfer to a new career but also your soft skills, which according to a Marks Sattin GI Group Holding and Thomas report, 51% of HR decision makers place a greater value on soft skills and they also note that there is also a greater shortage of soft skills, around 43% compared to just 17% for hard skills. It’s these soft skills that help you bring yourself as a new hire up to optimal productivity faster.

Some of the top in-demand soft skills according to the World Economic Forum are:

• Analytical thinking.
• Resilience, flexibility and agility.
• Leadership and social influence.
• Creative thinking.

So, think about the soft skills you possess and how they could help in bridging to your new career path.

Use self-assessment tools

It can often help to get a little perspective. And in this case an outside perspective can help aid in your search. Tools like Myers-Briggs personality test or career-fit quizzes could provide you with new insights into careers that you may not have considered before.

Step 2: Set clear career goals

Once you have a good understanding of where you currently are, it’s time to hone in on where you’d like to be. Setting clear career goals will help you be intentional with your search and evaluate the suitability of your new career path against your career goals.

Define success in your new role

What does an ideal workday look like? Think beyond the tasks and responsibilities of the role itself and think about the day to day. Some things to consider could include:

• Do you want more flexibility and remote work options?
• Are you driven by a higher salary or a better work-life balance?
• Do you want to work for a company with a strong social mission?

Answering questions like this will help you envision what your ideal workday looks like and gives you parameters to adhere to in your search.

Align goals with future trends

Don’t just think about roles that are emerging or popular right now; try to think about the roles of tomorrow. Look into what jobs will grow over the next decade or so and think a little outside the box about what those roles could evolve into as well. This will help you align your career change with roles that will increase job security while positioning you as a future proofed candidate.

Create SMART goals

Using the tried and tested SMART goals method now will help turn those dreams into an actionable plan. Here’s an example of how to use the framework to turn your vision into a plan.

• Specific: ‘I want to become a data analyst’ not ‘I want to work in tech’.
• Measurable: ‘I will complete 3 online data analytics projects or courses’.
• Achievable: Set realistic milestones for your learning and job search.
• Relevant: Ensure each step directly supports your goal of becoming a data analyst.
• Time-bound: ‘I will start applying for junior data analyst roles within 6 months’.

Step 3: Research high-growth career paths

Explore industries with growth potential

Once you have your goals defined you can start exploring industries and roles that you think align with your goals, but remember to keep in mind their growth potential as well.

Think about sectors that are expanding and fast like, energy, cybersecurity, artificial intelligence and healthcare technology to name a few. Make sure to read industry reports, read content from thought leaders and generally get a good understanding of the industry and where it’s heading.

Identify skills gaps

A part of your research should include looking at job descriptions that interest you to identify any skills and qualifications required. Some of these you may already have, but some that appear repeatedly, may not.

This will help you identify any skills you are lacking to secure positions like this or similar and you can then put a plan in place to secure them and become a competitive applicant. 

Step 4: Build a strategic pivot plan

Now is the time to put everything you’ve researched into a strategic plan. This plan will act as your roadmap for your career change and outline each step.

Upskill and reskill

Remember those skills gaps identified earlier? Focus on gaining practical knowledge in those areas, whether that be informal learning through online courses and YouTube or formal training in the form of qualifications that are needed for the roles you are interested in.

Network effectively

As the saying goes, it’s not always what you know, but who you know. And networking is a key part of your journey. Making connections in your target industry/s or role can potentially help you be referred for certain roles. But before we get ahead of ourselves, your first point of call should be to ask for informal chats to ask particular people in those industries and roles questions, learn about their experience and ask for advice.

Gain relevant experience

Gaining relevant experience won’t always come from a new job. Most of the time you’ll likely have to find that experience elsewhere and there are a few places to look before you start applying for jobs.

• Freelance opportunities on sites like UpWork and Fiverr can give you a jump start.
• Volunteering for non-profits to add work to your portfolio can help give you an edge.
• Personal projects can also help you to showcase your abilities such as a website, data analysis project and more.

How Employment Hero can help you launch into a new career in 2026

Successfully pivoting your career in 2026 isn’t just about finding the right role, it’s also about joining a workplace that supports growth, learning and long-term progression.

Employment Hero makes this possible. With tools like SmartMatch for career-fit assessments, streamlined onboarding, learning and development platforms and performance management frameworks, we help businesses create environments where careers can thrive, not stagnate.

Whether you’re stepping into a new career or helping your team grow into their next role, having the right HR, payroll and people management platform in place can make all the difference. 

Workplace stress costs the economy £5 billion, according to the Health and Safety Executive, with 964,000 workers suffering from work-related stress, depression, or anxiety across 2024/25.

Accountants and bookkeepers are amongst them. We’re not superheroes. We need to learn how to identify mental health issues, and take action.

That’s what I talk about in this article, as follows:

But remember, if everything feels like it’s getting too much, you should get help immediately.

It’s never too late to seek help—and nor is it a sign of weakness.

The eye of the storm

With Making Tax Digital and other recent legislative requirements, accountants have been at the centre of a huge storm. They not only have to implement the difficult changes with clients but also act as educators.

Let’s face facts: Making Tax Digital for Income Tax will affect the vast majority of sole trader and landlord clients all the way up until 2030. That’s a massive increase in client activity, even if you undertake the perfect practice digitalisation process.

In other words, things are only going to get worse in terms of workload and requirements.

It’s the accountant who’s expected to act as everything from a shoulder to cry upon, to teacher, and in many cases magician—in that you have to pull off the impossible to make it all work for your clients.

To get through the coming years, accountants need to learn how to create headspace—to protect their mental health by being able to identify when things are too much, and respond appropriately.

This is becoming a vital skill for our profession that’s as important as knowing how to create a spreadsheet formula, or calculate VAT.

It can be simple as knowing when certain warning signs appear.

Below, I take a look at some of the things to watch out for. The more we all talk about this, the better we will be.

1. Know when you’re in trouble

It’s hard to avoid stress in our working lives. Some would even argue that a small amount stress adds flavour to the working day, helping keep us on our toes.

The problem is that it’s impossible to spot when the stress becomes too much. And I don’t need to tell you how easily that happens.

We all vary in the amount of stress we’re willing to tolerate. One person thrives in perpetual chaos during nine to five, while that’s another’s personal hell.

Therefore, my first tip is to learn to recognise the symptoms not just of stress but of other commonplace mental health complains in the workplace, such as burnout and depression.

And measure them relative only to yourself. Don’t compare yourself to others.

Often realising you’re in trouble is surprisingly straightforward.

If you say to somebody that you’re feeling stressed, that’s a key warning sign that can’t be ignored.

But there are symptom checkers online. I know these might feel foolish or a waste of time, but why not spend just five minutes while having a coffee checking yourself out using one of them?

If you find there is a problem, it’s vital that you take your mental health seriously and look at how you can manage it.

We tend to stigmatise and ignore mental health in a way we just wouldn’t ignore a physical illness or condition.

And the temptation to ignore a mental health issue is often incredibly strong in our profession.

But stress, depression, burnout, and more won’t just go away if they’re ignored. The only way for things to get better is to make changes for the better, and do so immediately.

2. Know your working hours

You may be surprised at just how many hours you’re working.

It might feel to you as if you’re only working a 40-hour week. But we ignore those times when we decide to go into work early to catch up on tasks or stay maybe an hour or two later than usual for the same reason.

You might find your working life begins to stretch into the weekend in ways that at first seem reasonable—perhaps a few hours on a Sunday evening to prepare yourself for the working week.

But this often turns into spending half of Sunday working.

This then turns into the whole of Sunday.

And don’t think you’re not actually working the whole day if you decide to spend an hour in the morning with the kids before burying yourself in work.

It’s amazing how we try and trick ourselves into thinking we’re not overworking.

Count the hours.

Imagine you’re a contractor working for yourself, and maintain a timesheet from Monday to Sunday. This can be done using apps if you don’t want to mess around with paper.

How many hours are you working?

Employees legally can’t work more than 48 hours a week. And that limit was decided based on very good evidence and research into workplace health.

Ok, so you might be self-employed or the owner of the practice, so the 48-hour week might not be a legal limit.

But work more than that and you’re literally creating an unsafe working environment for yourself that’s proven to lead to mental or even physical health issues.

3. Know when to delegate

In a specialised industry such as ours, certain people have key knowledge that can be difficult to transfer to others.

Therefore, you might find yourself becoming a go-to person for a certain kind of problem or client.

You may have close relationships with clients that you don’t want to jeopardise by handing them off to others.

But there’s no heroism in having work piled upon you. It’s just going to use you up and leave you burned out.

You have to know when to delegate to others.

Sometimes this feels counterintuitive because you might have to spend what feels like even more time training somebody, or showing them the ropes.

But in every single case, I promise you that this will be worth it in the long term. Not only will you feel better but sharing skills creates a more equitable working environment, and allows others to progress.

And you have to know how to delegate, too.

This involves realising that delegating might not achieve the quality of results you personally would deliver. You may have to allow more time for completion of the task, and build in the potential for failure.

But all of this is still better than attempting to take on the load yourself.

Put simply, if you find yourself delegating then you’re probably doing the right thing. It’s not always a magic cure but it’s a step in the right direction.

4. Know when to say no

If you own a practice or are a partner, it can be incredibly hard to turn down new clients or new work. It’s feels like you’re turning away money. This is especially true with MTD for Income Tax, which may surface a lot more landlord clients, for example.

But you and your practice have limited capacity. There might be 10% to 20% that you can squeeze in beyond this, but only for a short while.

However, short of serious expansion plans, there comes a time when you just have to say no.

You know your business model and unless your income is short of that stated in your projected profit and loss, there’s nothing to be worried about.

And you have to enforce rules, too.

The individual who arrives on 30 January with a carrier bag full of receipts, asking to be signed on as a new client, isn’t somebody you want to be dealing with at that point.

It’s unfortunate for them but they undoubtedly knew the Self Assessment requirements, and the deadline.

Somebody else’s lack of planning can’t become your impossible deadline.

Saying no is another skill that has to be learned. But ultimately, it’s a blow that can be cushioned by being proactively helpful.

For example, when turning down new client enquiries, why not suggest a fellow practice nearby that might be able to help?

If a sole trader is making enquiries, why not direct them to HMRC’s website, which helps them understand Self Assessment requirements?

Why not create a list of potential new clients and let them know you’ll take them on as soon as you can?

5. Know when (and how) to get help

If you’re facing a mental health crisis right now then get help as soon as possible.

Speaking to people is the first step, whether that’s your GP, colleagues, or friends and family. You may choose to directly consult a therapist or counsellor.

Don’t forget that some workplace wellbeing programmes offer self-referral.

You’re never alone and help is always much closer at hand than you might think.

The major accountancy bodies offer terrific mental health support, and should be another port of call:

Final thoughts on creating headspace

We live in a world where seeking help for mental health issues is much easier than it used to be, although there’s still a stigma attached.

It’s still an act of bravery to make the first steps. But I want to invite you to do so, and to do so now.

If you’re suffering then this is something that must be done. You can’t continue working if it’s unsustainable, for whatever reason.

Consider colleagues and family too.

If you’re stressed, it will inevitably rub off on to them in some fashion, and they too may have their own issues for which they might want to seek help.

Editor’s note: This article was first published in March 2022 and has been updated for relevance.