As 2026 approaches, Chief Financial Officers across the UK are facing a host of new government policies, regulatory changes, and economic challenges. From digital tax reporting to greater corporate transparency and new trade strategies, the policy landscape is shifting quickly – and with it the expectations of CFOs.
Let’s explore the key policies and global events that will shape the next 18 months, and how UK CFOs can prepare to lead with clarity and confidence.
Policy 1: Making Tax Digital (MTD)
After years of delay, the next phase of the government’s Making Tax Digital (MTD) initiative is finally set to arrive in April 2026. This long-anticipated shift will reshape how organisations, and their finance leaders, manage tax reporting and compliance. It will have a notable impact on businesses, CFOs, interim CFOs and interim managers.
In this iteration:
- MTD for Income Tax Self-Assessment (ITSA) will extend to self-employed individuals earning over £50,000
- Making Tax Digital for Corporation Tax will become mandatory for companies with an annual turnover of over £10.2 million.
For CFOs, the implications of MTD may be significant and lead to:
- A potential systems overhaul: that ensures accounting systems can handle digital record-keeping and quarterly reporting.
- Software investment: transitioning to MTD-compliant software could mean new licensing, training, and integration costs.
- Process realignment: to adapt to real-time tax visibility and data-driven compliance cycles.
But MTD isn’t just about compliance. It’s an opportunity to streamline reporting, improve data accuracy, and strengthen forecasting through digitisation. CFOs who act early can use MTD to build a more agile, data-driven finance function and one better equipped to meet future regulatory demands.
Policy 2: the Economic Crime and Corporate Transparency Act (ECCTA)
The Economic Crime and Corporate Transparency Act (ECCTA) marks one of the most significant reforms to UK company law in decades and heralds a new era of accountability.
Key provisions being rolled out by Companies House include:
- New ‘failure to prevent fraud’ offence (introduced 1 September): affecting large organisations (those with more than 250 staff, annual turnover of more than £36 million or total assets of more than £18 million).
- Compulsory identity verification: new and existing directors and Persons with Significant Control (PSCs) must complete identity checks. This policy came into effect on the 18th November, though companies with an earlier filing date will have until their next filing date to implement identity checks.
- Mandatory registration for third-party agents: intermediaries acting on behalf of companies must register at Companies House.
- Enhanced reporting and information-sharing requirements: designed to deter economic crime and strengthen information integrity across the corporate ecosystem.
For CFOs, ECCTA brings more focus on governance, due diligence, and corporate integrity. Finance leaders will need to work closely with legal, risk and compliance teams to ensure their organisations meet new verification and disclosure rules, all while maintaining daily operations.
This change shows a bigger trend: transparency has now become a real competitive advantage. Companies and CFOs who champion strong governance will not only strengthen compliance but also build stronger trust with investors and stakeholders.
Evolving trade strategy and global tariffs
The UK’s evolving trade strategy is reshaping how businesses plan and compete on the global stage. From renewed export incentives to ongoing trade negotiations with major partners, the landscape remains fluid, creating both risks and opportunities for UK companies.
At the same time, emerging tariff shifts, including those from the US and EU, could affect supply chains, pricing, and profit margins. For CFOs, this means it’s now essential to embed resilience and foresight into trade and financial planning.
To prepare, CFOs should:
- Model alternative tariff and exchange rate scenarios.
- Build flexibility into supplier contracts and logistics planning.
- Align pricing and margin strategies to buffer against volatility.
While trade uncertainty is likely to continue for a while, CFOs who factor these changes into their planning can help their businesses stay agile, competitive and resilient.
Staying ahead of the curve
The UK regulatory environment continues to evolve rapidly, with new requirements emerging across accounting standards, financial oversight, and risk management:
- Financial Reporting Council (FRC) updates to FRS 102: new lease accounting requirements, will reshape how companies will report financial results and assess performance.
- The Financial Conduct Authority (FCA): increased scrutiny on crypto regulation, operational resilience, and Consumer Duty expands the compliance agenda – with direct implications for how finance teams manage risk and protect customers.
CFOs can help their teams by keeping policies up to date, improving controls, and staying alert for new changes. By building compliance into daily operations, finance leaders can feel confident when new regulations come into play and turn regulatory compliance into competitive advantage.
The most successful CFOs will:
- Invest early in digital and compliance infrastructure to streamline reporting and governance.
- Embed foresight into financial planning through data analytics and scenario modelling.
- Foster cross-functional collaboration between finance, legal, risk, and operations to drive integrated decision-making.
Conclusion
In a time when policies are shaping business resilience, planning ahead and being proactive will define successful finance leadership. The UK’s policy direction is bringing more transparency, accountability, and digital efficiency. For CFOs, navigating this “policy minefield” is about more than compliance. It requires flexibility, informed decision-making, and supporting your team every step of the way.
By anticipating change and adapting with purpose, UK finance leaders can not only navigate 2026 with confidence but also emerge stronger, smarter, and ready for whatever challenges lie ahead.
At The Siena Partnership, we work with our clients to recruit CFOs and help their organisations innovate and deliver value creation. If you’d like to continue the conversation with one of our CFO Experts, Mike Faull, contact him here: Mike Faull