There are several rules and regulations small business owners need to be aware of 2026. Read our regularly updated guide.
1 February 2026: Increases to Companies House fees
Several Companies House fees will increase, including the cost of incorporation doubling from £50 to £10. Read more details here.
1 April 2026: Increases to National Minimum Wage and National Living Wage
The rates will increase as follows:
- 21 and over: From £12.21 to £12.71 an hour
- 18-20: From £10 to £10.85 an hour
- Under 18: From £7.55 to £8 an hour
- Apprentice: From £7.55 to £8 an hour
It’s a criminal offence for employers to not pay someone the National Minimum Wage or National Living Wage, or to fake payment records.
Read government guidance here.
6 April 2025: Making Digital for Income Tax
From 6 April 2026, Making Tax Digital for Income Tax replies to sole traders with an annual income from self-employment and property that is over £50,000.
HMRC describes it as the biggest change since the tax authority launched Self Assessment more than 30 years ago.
Sole traders and landlords will need to use software that works with Making Tax Digital for Income Tax to:
- create, store and correct digital records of self-employment and property income and expenses
- send quarterly updates to HM Revenue & Customs (HMRC)
- submit a tax return and pay tax due by 31 January the following year
Read government guidance here.
April 2026: Employment Rights Act changes
The Employment Rights Act, which applies to England, Wales and Scotland, gives workers a wide range of expanded and new employment rights. Changes are being rolled out over the next few years.
According to the government’s implementation timetable, the following changes will be introduced in April 2026:
- Collective redundancy protective award – doubling the maximum period of the protective award
- Day one’ Paternity Leave and Unpaid Parental Leave
- Whistleblowing protections
- Fair Work Agency body established
- Statutory Sick Pay – remove the Lower Earnings Limit and waiting period
- Simplifying trade union recognition process
- Electronic and workplace balloting
SMEWeb will be covering the implementation of the Employment Rights Act throughout 2026 and beyond. Read government guidance here.
6 April: Inheritance tax relief changes
A cap of £2.5 million will be introduced on Agricultural Property Relief (APR) and Business Property Relief (BPR).
The allowance will be transferable between spouses, a surviving spouse or civil partner, so they will be able to pass on up to £5 million of qualifying agricultural and business assets tax-free.
The cap was originally going to be £1 million but the government increased it following protests from farmers and business groups.
Read government guidance here.
October 2026: Employment Rights Act changes
According to the government’s implementation timetable, the following changes will be introduced in October 2026:
- Fire and rehire
- Bringing forward regulations to establish the Fair Pay Agreement Adult Social Care Negotiating Body
- Procurement – two-tier code
- Tightening tipping law
- Duty to inform workers of their right to join a trade union
- Strengthen trade unions’ right of access
- Requiring employers to take “all reasonable steps” to prevent sexual harassment of their
employees - Introducing an obligation on employers not to permit the harassment of their employees by third parties
- New rights and protections for trade union reps
- Employment tribunal time limits
- Extending protections against detriments for
taking industrial action
SMEWeb will be covering the implementation of the Employment Rights Act throughout 2026 and beyond. Read government guidance here.
Autumn 2026: Digital Markets, Competition and Consumers Act 2024 (DMCCA)
This legislation will introduce changes to rules for subscription contracts, introducing mandatory clear pricing, cooling-off periods, renewal reminders, and straightforward cancellation. The aim is to stop “subscription traps” for consumers.