The weekly roundup: NICs, PE land grabs and HMRC's IHT crackdown

The £28 Billion NIC Bill

The most significant data point of the week comes from UHY Hacker Young, revealing that the Employer National Insurance Contribution (NIC) burden reached a staggering £28 billion in its first year (to March 31, 2026).

• The Overrun: This is £4 billion higher than the Government’s initial forecast of £24 billion.

• The Impact: Hiring has slowed significantly, with 46% of firms surveyed by Reed stating the tax hike is directly impacting their recruitment decisions.

• The Takeaway: This is no longer a “tax update” it is a fundamental restructuring of client payroll budgets. Private sector employers are now reportedly looking at redundancies or price hikes to cover the 24% jump in their NIC bills.

BKL’s Canary Wharf Expansion

The consolidation trend continues to move eastward. BKL, a Top 40 firm, has announced that RBS Chartered Accountants has joined the firm.

• The Target: RBS is a long-standing practice based in Canary Wharf, specializing in owner-managed businesses (OMBs) across software, healthcare, and professional services.

• Strategic Intent: Backed by private equity firm CBPE, BKL is successfully executing its “hub-and-spoke” growth model, strengthening its ability to provide relationship-led advisory to the City’s high-growth entrepreneur market.

Sage Future 2026

Over in San Francisco, the Sage Future event has signaled a move away from fragmented finance functions toward “Connected HCM and Finance.”

• Sage HCM: A new Human Capital Management solution has launched (integrating with Sage Intacct) to bridge the gap between HR and finance.

• Industry-Specific AI: The new HCM for Construction uses an AI “HCM Agent” to automate job costing and labor spend workflows, a vital tool for UK firms with construction-heavy client bases.

• Platform Integration: Sage has moved core planning and cash flow management into a single Intacct platform to reduce fragmentation and provide real-time visibility into workforce costs.

  Resources & Whitepapers

  AP The importance of UX in accounts payable: Often overlooked, always essential

  Accounting Software The power of customisation in accounting systems

  Accounting Firms Turn Accounts Payable into a value-engine

  AP 8 Key metrics to measure to optimise accounts payable efficiency

The Scottish Election: ICAS Sounds the Alarm

With the Scottish elections looming on May 7, ICAS has issued a stark warning regarding the health of the Scottish economy.

• Confidence Crisis: An ICAS survey found that 78% of members lack confidence in the Scottish economy, with 83% stating the current tax system does not benefit the nation.

• New Leadership: David Cruickshank (former Global Chairman of Deloitte) has been appointed ICAS President for 2026/27, with a mission to champion social mobility.

• Policy Priorities: The Chartered Accountants: A Strategic Asset for Scotland report identifies four urgent priorities: tax stability, future skills, financial literacy, and a just transition to a low-carbon economy.

Other Noteworthy Market Movements

Beyond the press releases, several breaking stories have hit the wires this week:

• HMRC Inheritance Tax Crackdown: Breaking reports indicate HMRC has significantly increased its challenges to property valuations in IHT returns. Practitioners should warn clients that “conservative” valuations are now a primary audit trigger.

• The Affinia Acquisition: International investment firm RedBird Capital Partners has moved into the UK accounting market by acquiring Affinia, a fully integrated UK-based accounting services platform. This signals a new wave of international PE interest in the UK “platform” model.

• FRC Governance Guidance: The FRC has published fresh guidance on “comply or explain” reporting under the UK Corporate Governance Code. The regulator is explicitly urging companies to move away from “tick-box” compliance, particularly regarding the independence of the board chair.

Compliance Corner: HMRC “Agent Update” Quick Hits

HMRC’s Agent Update 142 is now live. Three things your teams need to action:

• National Living Wage: Ensure all payrolls have been updated for the April 6 increase (£12.21 for those 21 and over).

• Mandatory Payroll Benefits: A reminder that from this tax year (2026/27), the registration to payroll Benefits in Kind (BiKs) is the primary method for many firms ahead of the full mandate in 2027.

• Winter Fuel Scam Alert: HMRC has reported over 25,000 referrals for scams targeting pensioners; firms should warn vulnerable clients to verify any HMRC-branded communication regarding “fuel payments.”