Proposed changes to the way some self-assessment taxpayers pay income tax could create additional work for employers and lead to financial difficulties for some workers, the Institute of Chartered Accountants in England and Wales (ICAEW) has warned.

The concerns relate to government plans to collect certain self-assessment tax liabilities through the Pay As You Earn (PAYE) system. Under proposals announced in the 2025 Budget, people with self-assessment income tax liabilities who also receive PAYE earnings could be required to make estimated tax payments during the tax year from April 2029.

Concerns Over Employer Workload

According to the ICAEW, introducing the changes through payroll systems could create additional administrative responsibilities for employers. Businesses may have to deal with more complex payroll processes and increased tax coding notices, potentially adding to their costs.

The professional body has also raised concerns about confidentiality. Collecting tax relating to income outside employment through an individual’s workplace could mean employers become aware of aspects of an employee’s financial affairs that would normally remain private.

Potential Cash Flow Problems for Taxpayers

The ICAEW warned that the proposed system could be particularly challenging for people whose income changes significantly during the year.

Those with fluctuating earnings could face difficulties if estimated tax payments do not accurately reflect their actual income. This could create cash flow pressures and make it harder for some taxpayers to meet their regular financial commitments.

HMRC Capacity Also a Concern

The ICAEW has highlighted wider concerns about pressure on HM Revenue and Customs (HMRC) systems. It said existing service pressures could make the implementation of further payroll-based tax requirements more difficult for taxpayers, agents and businesses.

Adelle Greenwood, tax technical manager at the ICAEW, said the organisation was concerned about adding further complexity to an already demanding administrative environment.

She also warned that the transition could potentially influence how employees manage their economic activity if the new arrangements create significant additional financial or administrative pressure.

Employers Face a Challenging Transition

The proposed changes are not currently due to take effect until April 2029, giving businesses and policymakers time to consider how the system could be implemented.

However, the ICAEW is calling for the potential impact on employers, payroll teams and taxpayers to be carefully assessed before the reforms are introduced.

The organisation’s warning comes as the government continues to explore changes aimed at collecting tax more regularly throughout the year rather than relying solely on the existing self-assessment payment timetable.

Businesses and payroll professionals are likely to be watching the consultation process closely as further details of the proposed system emerge.

Source: Accountancy Today / ICAEW. Report published 12 August 2026.

Why Profitable Businesses Can Still Face Cash Flow Challenges

Many business owners believe that earning a profit automatically means their company is financially secure.
However, profit and cash flow are not the same thing. A business may report impressive earnings while
still struggling to pay suppliers, employees, or operating expenses because there isn’t enough cash
available when it is needed.

Profit vs. Cash Flow

Profit represents the money left after expenses are deducted from revenue according to accounting rules.
Cash flow, on the other hand, measures the actual movement of money into and out of the business.
A company can be profitable on paper while experiencing cash shortages if customer payments are delayed
or cash is tied up in inventory and ongoing projects. :contentReference[oaicite:0]{index=0}

Common Reasons for Cash Flow Problems

1. Late Customer Payments

Long payment terms or overdue invoices reduce available cash. While sales may appear healthy,
the business cannot use money that has not yet been received.

2. Excess Inventory

Holding too much stock locks working capital into products sitting on shelves instead of keeping
cash available for day-to-day operations.

3. Rapid Business Growth

Growth often requires higher spending on inventory, staffing, marketing, and equipment before
additional revenue is collected. Without proper planning, expansion can create temporary cash shortages. :contentReference[oaicite:1]{index=1}

4. Poor Cash Flow Forecasting

Businesses that fail to monitor future income and expenses may be caught off guard by payroll,
tax payments, rent, or supplier invoices.

5. Large One-Time Expenses

Unexpected repairs, equipment purchases, tax obligations, or legal costs can quickly reduce available
cash even when the company remains profitable over the long term.

How to Improve Cash Flow

• Invoice customers promptly.
• Follow up consistently on overdue payments.
• Maintain healthy inventory levels.
• Create rolling cash flow forecasts.
• Negotiate better payment terms with suppliers.
• Build an emergency cash reserve.
• Review operating expenses regularly.

Final Thoughts

Strong profits are important, but they do not always guarantee financial stability. Monitoring cash flow,
planning ahead, and managing working capital effectively help businesses stay resilient during both growth
and economic uncertainty. Companies that balance profitability with healthy cash management are better
positioned for sustainable long-term success. :contentReference[oaicite:2]{index=2}

Armstrong Watson has been recognised in The Sunday Times Top 100 Apprenticeship Employers 2026 rankings, reinforcing its commitment to developing future talent through apprenticeship programmes across the UK.

The accountancy, business advisory and financial services firm secured 51st position in this year’s rankings, marking the fifth consecutive year it has received national recognition for its apprenticeship initiatives. The achievement highlights the firm’s ongoing investment in skills development and career progression opportunities for young professionals.

Armstrong Watson currently supports almost 200 trainees and apprentices across its network of offices. Over the years, the organisation has continued to strengthen its apprenticeship offering, helping individuals gain professional qualifications while building practical workplace experience.

Commenting on the recognition, Paul Dickson, CEO and Managing Partner at Armstrong Watson, said the ranking reflects the firm’s dedication to nurturing talent and creating long-term career opportunities. He noted that apprentices play an important role in the business and contribute significantly across a range of service areas.

The Sunday Times Top 100 Apprenticeship Employers list is compiled annually by High Fliers Research and celebrates organisations that demonstrate excellence in apprenticeship recruitment, training quality, diversity, and programme completion rates. The rankings recognise employers that are helping to address skills gaps while supporting workforce development across multiple industries.

Armstrong Watson continues to expand its apprenticeship and graduate programmes in areas including accounting, audit, tax and payroll services. The firm is currently offering a variety of entry-level opportunities designed to support individuals seeking professional careers in the financial and advisory sectors.

The latest recognition comes as apprenticeships continue to gain popularity as an alternative route to higher education, enabling individuals to earn while they learn and gain valuable industry experience alongside recognised qualifications.

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LONDON, June 2026 —
Employers who believe they have overpaid their Pay As You Earn (PAYE) liabilities are being encouraged to review their records and seek refunds from HM Revenue & Customs (HMRC).

According to HMRC guidance, businesses may be entitled to a repayment if they have paid more tax than was due during the current or a previous tax year. Overpayments can arise for several reasons, including duplicate payments, reporting errors, incorrect calculations, or adjustments that were not reflected in payroll submissions.

Employers are advised to compare the amounts paid to HMRC with the liabilities recorded in their tax accounts to identify any discrepancies. Businesses may also discover overpayments linked to statutory payments, employee tax adjustments, or corrections made to previous payroll reports.

To submit a refund claim, employers must provide key information such as their PAYE reference number, business details, bank account information, the tax year involved, and an estimate of the amount overpaid. Claims can generally be made online, while alternative arrangements are available for those unable to use digital services.

HMRC said that claims will be reviewed before any repayment is authorised. Where outstanding tax liabilities exist, the department may offset any approved refund against those debts before releasing any remaining balance.

Payroll professionals have welcomed the reminder, noting that regular reconciliation of payroll records can help businesses avoid tying up cash unnecessarily and ensure tax obligations are accurately reported.

Experts recommend that employers maintain up-to-date payroll records and promptly investigate any differences between reported liabilities and payments made to HMRC.

For further information, businesses are encouraged to consult official HMRC guidance on PAYE overpayment refunds.

Rising Taxes and Costs Put Growing Pressure on Small Businesses

Small businesses are facing increasing challenges as rising taxes and operational costs continue to put pressure on local economies. A recent discussion circulating on social media highlights how running a small business is becoming more difficult, with many owners struggling to stay afloat.

According to the commentary, employing local workers now costs significantly more due to higher taxes and employer contributions. This has led to concerns that outsourcing services abroad is becoming a more affordable option, raising questions about the long-term sustainability of local employment.

Several financial changes introduced this year have added to the burden. These include a rise in corporation tax to 25%, increases in dividend tax alongside reduced allowances, and higher employer National Insurance contributions. Additionally, cuts to capital allowances, revaluation of business rates, and stricter penalties have further increased costs for business owners.

As a result, many small businesses such as cafés, salons, freelance services, and local shops are reportedly struggling to manage expenses while maintaining operations. Observers argue that while paying tax is necessary, the current structure may be placing excessive strain on small enterprises.

The growing concern is that if these challenges continue, local high streets could see more closures, impacting not only business owners but also communities that rely on them.

Finfluencers, LLMs and the Accountancy Misinformation Economy

The way people consume financial and accounting information has changed dramatically in recent years. What once came primarily from qualified professionals, textbooks, and regulated advisory channels is now increasingly shaped by social media influencers and artificial intelligence tools. While this shift has made financial information more accessible than ever, it has also created new risks — particularly around accuracy, context, and accountability.

The rise of “finfluencers”

Financial influencers, often known as “finfluencers,” have built large audiences on platforms like TikTok, Instagram, and YouTube by breaking down tax rules, investment tips, and business advice into short, engaging content.

Their appeal is easy to understand. Complex accounting concepts are simplified into bite-sized videos and posts that feel practical and relatable. For small business owners and younger audiences, this content often feels more approachable than traditional financial advice.

However, much of this content is produced without formal qualifications or regulatory oversight. As a result, advice can be oversimplified, misleading, or in some cases incorrect. Tax rules are rarely as straightforward as social media content suggests.

When AI enters the equation

The rise of large language models (LLMs) has added a new layer to this issue. AI tools can generate fast explanations for accounting and tax questions, but they are not always accurate or context-aware.

These systems do not understand tax law in a human sense — they generate responses based on patterns in training data. This can lead to outdated or incorrect information, especially in complex or jurisdiction-specific cases.

When AI-generated content is reused on social media, small inaccuracies can quickly become widely shared misinformation.

The misinformation loop

The combination of finfluencers and AI tools has created a feedback loop:

• AI generates simplified financial explanations
• Content creators repurpose them into posts and videos
• Algorithms amplify engaging content
• Users adopt advice without verification

This cycle makes it difficult for non-experts to distinguish between accurate guidance and misleading information.

Why SMEs are particularly vulnerable

Small and medium-sized enterprises (SMEs) are especially exposed. Many rely on online resources for guidance on tax, VAT, payroll, and compliance due to limited access to in-house expertise.

While online advice is convenient, incorrect financial decisions can lead to penalties, compliance issues, and long-term financial risks.

The role of regulation and professionals

Regulators and professional bodies have raised concerns about unregulated financial advice online. However, enforcement remains challenging due to the speed and scale of digital content distribution.

This has increased pressure on qualified accountants to maintain visibility online and provide accurate, contextual explanations that counter misinformation.

Conclusion

Finfluencers and AI tools have transformed access to financial information, but they have also increased the spread of misinformation. While they can be useful starting points, they cannot replace professional accounting advice.

In an increasingly digital financial landscape, accuracy and professional judgement remain essential.

S&W Expands into France with Vachon Acquisition

Professional services group S&W has entered the French market through the acquisition of Paris-based accountancy firm Vachon, marking a significant step in its international growth strategy.

The deal, supported by Apax Funds, strengthens S&W’s ability to serve clients operating across borders and enhances its presence in Europe. It follows the firm’s previous expansion into Ireland, further building its international network.

Founded in 1997, Vachon provides a full range of services including audit, accounting, tax, payroll, and advisory support. The firm works with small and mid-sized businesses, large multinational companies, and private investors. Its team of around 60 bilingual professionals, including 14 partners, is recognised for expertise in international accounting standards and cross-border financial matters.

As part of the agreement, Vachon will continue to operate under its existing brand, maintaining its established reputation in the French market.

S&W’s leadership highlighted France as a key market for clients expanding into Europe, noting that Vachon’s technical expertise and local knowledge will complement the firm’s existing capabilities. Meanwhile, Vachon’s leadership described the acquisition as a natural progression that will allow the firm to broaden its international reach while continuing to deliver personalised services.

Overall, the acquisition represents a strategic move to strengthen cross-border support for clients and expand service offerings across multiple European markets.