Welcome to our Autumn 2026 edition of HaysMac’s Higher and Further Education Briefing.
The financial, regulatory and governance landscape continues to evolve at pace. Alongside ongoing pressures around financial sustainability, institutions are now preparing for significant changes to financial reporting, taxation and governance, while also navigating new opportunities and risks arising from technology and international growth.
The implementation of the new SORP is now very much a live issue rather than a future consideration. In our opening article, I explore the revised income recognition requirements and what institutions should be doing now to assess contracts, document judgements and prepare for their first reporting periods under the new framework.
Employment taxes are also set for major change. Nick Bustin, Employment Tax Director, considers HMRC’s move to mandatory payrolling of benefits in kind and explains why institutions should begin reviewing their payroll processes and employee communications well ahead of the 2027 implementation.
Phil Salmon, Partner, examines several important VAT developments affecting the sector, from proposed changes to VAT reporting and payment processes through to electronic invoicing and reforms to the Capital Goods Scheme.
Staying with VAT, Charlotte Wain, Senior Manager, explores the often overlooked challenges of international VAT compliance and why institutions expanding overseas should ensure VAT considerations form part of their strategic planning from the outset.
Technology governance is climbing rapidly up board agendas. In our fifth article, Rakesh Vaitha, Director, looks at AI governance and the questions boards and audit committees should be asking to ensure artificial intelligence is being used responsibly.
Financial reporting continues to require significant judgement. Georgia Piper, Senior Manager, focuses on accounting estimates, highlighting why the process behind the number is often just as important as the figure itself.
With many institutions reviewing their estates to support financial resilience, tax considerations remain highly relevant. Alice Palmer, Senior Manager, explores how universities can maximise the value of surplus land while avoiding unexpected tax consequences when entering into development, promotion or overage arrangements.
Financial sustainability remains firmly in the spotlight across the sector. In our penultimate article, Paul Metcalfe, Senior Manager, discusses the importance of looking beyond headline surpluses, deficits and net asset positions to gain a fuller understanding of an institution’s long-term financial resilience.
Finally, Stephen Patey, Director, considers one of the most significant Budget announcements for the sector: the reform of the VAT reverse charge rules for overseas services. While the changes may create additional costs for some institutions, they may also present opportunities for others.
We hope this briefing provides useful insights for your institution. If you’d like to explore any of the issues further, please contact me, the article author, or your usual HaysMac advisor.
