2026’s Finance Leadership Test: Compliance, Confidence and the New “Trust Stack”

2026’s Finance Leadership Test: Compliance, Confidence and the New “Trust Stack”

If you’re a CFO, FD or Controller in the UK right now, you can probably feel it: finance is being pulled in multiple directions at once. Digitisation is accelerating, reporting is being rewritten, global tax is tightening, and stakeholders are asking tougher questions about what they can trust -in the numbers, in controls, and in leadership.

This isn’t “more change”. It’s a shift in what finance is for.

In 2026, high-performing finance functions will differentiate themselves with a new kind of capability - what we call a trust stack: the people, processes, systems and governance that make financial information decision-grade, fast.

Below are the UK and global developments shaping that trust stack right now - and what they mean for senior finance leaders building teams.

1) The compliance cliff edge is here: MTD for Income Tax (April 2026)

From 6 April 2026, Making Tax Digital (MTD) for Income Tax begins its phased mandatory rollout (starting with individuals with qualifying income above the threshold, then widening over the following years).

For finance leaders, this isn’t just a tax-change headline. It’s an operating model change:

• More frequent submissions (and less tolerance for “year-end heroics”).
• Increased reliance on digital records and compatible software.
• A higher bar on data hygiene across income streams (especially where finance overlaps with owner-managed businesses, partnerships, or portfolio property structures).

Thought-provoker: If your function still treats compliance as a periodic event, MTD is an early warning that the market is moving to continuous finance - and it will expose skills gaps in systems, controls and analytics.

2) UK GAAP reset: FRS 102 amendments effective from 1 January 2026

For many UK entities, FRS 102 changes take effect for accounting periods beginning on or after 1 January 2026, including significant updates around areas such as leases and revenue.

The practical impact: it’s not simply technical accounting. It’s:

• Balance sheet optics (and covenant conversations),
• process redesign (how you capture and validate data),
• and clearer narratives to banks, boards and investors.

Thought-provoker: The winners won’t be the teams that “get through the adoption project.” They’ll be the teams that use the change to build repeatable reporting discipline - tight close, traceable judgements, and explainable movements.

3) IFRS 18 is tomorrow’s standard - but 2026 is the comparative year

Even though IFRS 18 is effective from 1 January 2027, it requires retrospective application, meaning 2026 comparatives need to be prepared under the new presentation/disclosure approach for many reporters.

That matters because IFRS 18 reshapes how performance is presented and explained - particularly around subtotals and management-defined performance measures.

Thought-provoker: If your board pack still has “adjusted” measures that live outside robust governance, IFRS 18 is a forcing function: finance will need stronger internal standards for what’s reported, why, and how it ties back to audited numbers.

4) Sustainability reporting is being wired into finance - not bolted on

The UK is progressing towards UK Sustainability Reporting Standards (UK SRS) aligned closely to ISSB standards, with consultation activity in 2026 and expectations that listed entities will need to prepare.

Meanwhile, the ISSB has continued refining climate disclosure requirements (including targeted amendments affecting certain greenhouse gas disclosures).

This is a finance capability story because investors want sustainability information that’s:

• consistent,
• comparable,
• and connected to financial statements and risk.

Thought-provoker: Sustainability reporting is becoming a controls-and-assurance problem. If your ESG numbers can’t survive audit-style challenge, they’ll eventually become a reputational and governance risk.

5) Governance and assurance: audit reform uncertainty raises the value of “self-governed” finance

In January 2026, the UK government confirmed it is not proceeding with the long-awaited audit reform legislation (including proposals tied to ARGA), triggering criticism across governance and assurance circles.

Whatever your view on the politics, the leadership takeaway is clear:

When external reform stalls, internal governance matters more.

Audit committees, boards and lenders will lean harder on:

• quality of evidence,
• strength of internal controls,
• audit readiness,
• and the credibility of management explanations.

Thought-provoker: In a low-trust environment, strong finance teams become a competitive advantage—because credibility lowers the cost of capital, speeds decision-making, and reduces surprises.

6) Global tax complexity keeps rising: Pillar Two is still evolving

On the international front, OECD Pillar Two (global minimum tax) continues to evolve, with January 2026 guidance on “side-by-side” arrangements and safe harbours attracting significant attention.

For groups with cross-border footprints, this is another driver of:

• deeper tax/accounting integration,
• stronger data and entity reporting,
• and finance talent that can navigate ambiguity.
  
   

What this means for hiring: finance teams are splitting into “operators” and “architects”

Across these developments, a pattern is emerging. Modern finance teams need two complementary strengths:
 

1) Operators (run the engine)

• Close and consolidation discipline
• Controls, compliance, audit readiness
• Reporting accuracy and timeliness
   

2) Architects (redesign the engine)

• Systems/process transformation (ERP, automation, data governance)
• Reporting redesign (GAAP/IFRS changes, performance measures)
• Sustainability and non-financial reporting assurance
• Tax/regulatory change management
   

The gap we keep seeing in the market: organisations hire for output (“produce the accounts”) but under-invest in architecture (“make the system resilient”). 2026 is the year that trade-off gets expensive.

Where Huntress fits: recruiting finance talent that protects trust - and accelerates change

If you’re hiring in 2026, the question isn’t “can they do the job description?” It’s:

Can they maintain confidence in the numbers while the rules, tools and expectations keep shifting?

That’s the calibre of finance professional Huntress is built to find - across:

• Financial and Management Accounting
• FP&A and Commercial Finance
• Financial Reporting and Group Reporting
• Controls, Audit and Risk
• Tax and Regulatory Change
• Finance Transformation and Systems

If you’d like a confidential conversation about the roles you’re struggling to fill (or the skills you’ll need ahead of your next reporting or compliance milestone), we can share what we’re seeing across the UK market and how leading employers are structuring their finance teams.

Get in touch with our team

Ellis King - Connect with me on LinkedIn

Head of Accounting & Finance - London

Ellis.King@huntress.co.uk

Sarah McKechnie - Connect with me on LinkedIn

Head of Accounting & Finance - Thames Valley

Sarah.Mckechnie@huntress.co.uk

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Kate Ellis - Connect with me on LinkedIn

Head of Accounting & Finance - Essex & Hertfordshire

Kate.Ellis@huntress.co.uk

Frequently Asked Questions (FAQ's)

What are the biggest accounting and finance changes affecting UK businesses in 2026?
MTD for Income Tax rollout from April 2026, UK GAAP changes under FRS 102 effective for periods beginning 1 January 2026, increased preparation for IFRS 18 comparatives in 2026, and rapid movement towards ISSB-aligned sustainability reporting standards in the UK.

Why does IFRS 18 matter in 2026 if it’s effective in 2027?
Because it’s applied retrospectively - many organisations need 2026 comparatives prepared under the new presentation and disclosure model.

How should finance leaders respond to uncertainty around audit reform?
By strengthening internal governance: audit readiness, control evidence, and board-grade reporting narratives become even more valuable when external reform is delayed.