Training remains vital in 2025

This year looks set to see numerous changes that impact on the audit, accounting and tax professions. The UK still has a new government that is still trying to make its mark. Meanwhile, the tax code will see a host of amendments as the new tax year begins while regulations at home and abroad continue to evolve. In addition, the expanding role of technology and increasing focus on ESG will drive more changes to working lives.

Against this backdrop it will be more important than ever for professionals to keep their skills and knowledge up to date. Here we take a look at the training areas that Mercia’s experts predict will be key in 2025.

UK company size thresholds to increase

New regulations increasing company size thresholds and removing certain requirements from the Directors’ Report will be effective from April 2025.

The government has published legislation to increase the monetary size thresholds for micro, small and medium-sized entities. The uplift in thresholds is part of a drive to cut complexity and reduce the reporting burden on companies. It also accounts for the impact of inflation since the previous thresholds were set in 2013.

This is one of a number of changes that auditors will need to be cognisant of over the coming 12 months.

Rethinking firm structures for a changing profession

Jenny Faulkner, Mercia’s Head of Audit, Accounting and Compliance, says: ‘Whilst technology and sustainability are absolutely going to be key contenders for 2025, I think firm structure overall is perhaps more crucial.

‘Firm structure will undoubtedly be affected by both advancements in technology and sustainability but will also be impacted by other changes in the profession, such as company size changes expected by the end of 2025 and changes to audit regulations in relation to the 75% supermajority issue and an increase in private equity entering the market.'

‘It is clear that firms of all sizes are carefully considering whether their current structure is fit for purpose. This may be from a legal structure perspective or may also relate to the service lines offered within the firm.’

Technical and soft skills

According to Lee Eagling, Mercia’s A&A and Compliance Senior Manager, the changing regulatory landscape combined with technological developments will mean that a holistic approach to training is necessary.

He says: ‘In 2025 the big drivers for change will be the increased utilisation of technology (such as Artificial Intelligence (AI), automation, blockchain, cloud computing and data analytics), evolving regulation (given the shifting geo-political landscape) and a greater emphasis on the sustainability agenda.

‘Therefore, to remain competitive it’s imperative that accounting professionals continue to invest in their professional development in both technical and soft skills.’

Leadership support for thriving teams in 2025

Soft skills will also be key for managers and leaders of firms this year as they seek to successfully guide their teams through the changes in the business landscape.

Louise Conner, Management and Skills Trainer at Mercia, says: ‘During 2025 I predict that the support needed for managers and teams will continue to be how to understand each other and get the best out of working relationships.

‘Generational differences and a varying approach to work can contribute to the struggles of management and leadership.

‘Acquiring the skills and tools to navigate these challenges with support on situational leadership, understanding team roles and change management will greatly enhance our leadership skills and make our working environment one that we can all thrive in.’

Taxing changes

Many significant tax changes set to take effect from 6 April 2025 as we enter a new tax year.

These include the abolition of the favourable tax regime for non-UK domiciled clients. An individual’s scope to UK income tax, capital gains tax and inheritance tax will instead be based solely on ‘residence’.

Other tax changes are still to be felt from last October’s Autumn Budget. These include the increase in Employers’ National Insurance Contributions (NICs) and the ‘capping’ of Agricultural Property Relief.

Elsewhere, Mercia’s tax experts predict that any guidance released providing clarity on what qualifies for different capital allowances may spark significant debate.

'Your training, your way’: it’s never been more true

Keeping abreast of these changes and what they mean for the accounting and audit professions is a challenge. Training must be fitted around busy working schedules and the requirements of continuing professional development (CPD) need to be met.

At Mercia we offer a range of training options so you can fit your training around your needs and learn in the style that suits you best.

Hannah Howe, Key Account Director at Mercia, says: ‘With more standards, regulations and tech developments to stay on top than ever before, my prediction is that in 2025, firms will be looking for a bespoke learning solution to meet their needs more precisely.

‘We’ll see more tailored training, bite-sized training, hybrid training, collaborative training and interactive digital training during the year as firms move away from a ‘one size fits all’ approach to the ‘best of all worlds’. Talk to us about how we can add value to your CPD hours!’

How Mercia can help

The constantly changing tax landscape underlines the importance of keeping your knowledge and skills up to date.

Whether it be keeping yourself up to date on technical matters, the latest tax updates maintaining your CPD or help with those softer skills training, Mercia has something to help.