Our thoughts on 2022 from an accountancy point of view…
Although inflation is likely to hit 7% in the early months of 2022, it should turn out to be a short-term blip and by the autumn it should drop to just over 2%.
Tax evasion and avoidance
To recover money lost due to a lack of controls around coronavirus loans, grants etc I expect a newly empowered HMRC team will try to recover billions.
Increased presence of AI
2022 is set for further advances in accountancy software that will continue to take away or reduce many of the mundane tasks including invoicing and scheduling meetings for improved efficiency.
The past couple of years have been tough but it has shown us that we don’t need to be full time in the office to be productive. It is predicted that many offices will keep the flexible working and not rush back into the office.
With a shortage of skilled candidates, there is a demand for accounting graduates. Competition for roles is fierce meaning employers are having to hire earlier and fill entry level roles.
2022 should be the year to make it a goal for to take care of self assessment as early as possible. For the 2021/22 tax year you can file it from 6th April 2021 onwards.