The number of UK accountancy firms has turned. New ONS figures show 40,605 firms in 2026, up 630 on the year before.
It’s the first real rise since 2019. Firm numbers fell or flatlined every year from 2019 to 2025, and 2025’s change of 10 firms sits well within ONS rounding.
It’s also the biggest yearly rise since 2017, and every UK region grew for the first time since 2016. We’ve added the new figures to our UK accountancy firm data study.
Six lean years, then a rise
Here’s every yearly change since 2016, from the ONS business register. The losses from 2020 to 2024 alone cost the profession more than 3,700 firms.
The rise doesn't undo that damage. There are still 3,115 fewer firms than at the 2019 peak, so 2026 won back about one in six of the firms lost by 2025.
Every region grew, London included
All 12 UK regions gained firms in 2026. The last time that happened was 2016.
London added the most, with 195 more firms. It's the capital's first rise since 2017. Northern Ireland grew fastest, up 3.6%, with Yorkshire and The Humber next at 2.9%.
London is still a long way below its old numbers, with 1,660 fewer firms than in 2019. We cover London's seven-year fall in its own post, and our regional ranking shows how many local businesses each firm has to serve.
The new growth is all limited companies
Split the figures by type of firm and a clearer story appears. Limited companies grew by 790 in 2026. Sole practitioner firms fell by 80 and partnerships by 85.
So the whole rise comes from limited companies. The traditional owner-run practice is still disappearing.
Since 2019, nearly a third of sole practitioner firms and more than a third of partnerships have gone. Between them, they make up about four in five of the firms lost over that time.
Ian Gargett, Managing Director of Rapport Digital, explained the pattern in our study:
Many of the ones that disappeared didn't fail. They were bought by private equity groups, or their owners retired with no one to take over.
Ian Gargett, Managing Director, Rapport Digital
Growth at the small end
The 2026 rise sits with the smallest firms. Firms with fewer than 10 staff grew by 640, while firms with 10 or more staff were flat. Within that, firms with up to four staff rose by 395 and firms with five to nine staff by 255.
These are counts of the firms on the register each March, not new openings. Some of the change may be existing firms moving between size bands rather than brand new practices.
The longer view shows a shift. Since 2019, firms with up to four staff are down 10%, while firms with five to nine staff are up 8%. The smallest practices are thinning out as slightly larger small firms grow.
Demand is still growing faster
The ONS figures can't tell us what caused the rise. What we do know is the timing. The 2026 count was taken in March, weeks before Making Tax Digital for Income Tax began on 6 April 2026.
The number of UK businesses grew too, by 1.9% against 1.6% for accountancy firms. That leaves each firm with 69 local businesses to serve, the highest figure since the comparable data starts in 2015.
What the rise means for your firm
More firms means more competition for local clients, and the growth is coming from small limited companies. If you've relied on being one of the few firms in your area, that's starting to change.
The demand is still there, though. Around 970,000 more sole traders and landlords join Making Tax Digital from April 2027. They're heading towards a profession that's still 3,115 firms smaller than in 2019. The firms they find first when they search will be best placed to win that work.
Be the firm they find first
The full figures, charts and methodology are in our UK accountancy firm data study, where you can also download the data.
Want your firm in front of new clients before the new competition gets there? Get in touch. Rapport Digital works exclusively with accountants, and our founder is one.