The operating landscape for UK businesses continues to be tough, with costs and taxes continuing to rise amidst a backdrop of inflation and business closures. We are now in our second full year of the current government, and the pace of change shows little sign of slowing.
Following last year’s Budgets and policy announcements, as well as the passing of key legislation like the Employment Rights Bill, there are a number of key measures that will affect employers scheduled to take effect this year. From again rising employment costs to new compliance requirements, business owners will need to stay alert and be prepared for key dates and deadlines to maintain competitiveness in 2026.
To help you prepare, we have compiled a list of the most important dates and events for business owners in 2026, along with a summary of what each change could mean for your organisation.
3rd March – Spring Forecast
One of the first key dates for business owners in 2026 is the Spring Forecast, expected to be delivered by Chancellor Rachel Reeves on the 3rd March. Whilst this is not a full government Budget, the Spring Forecast is still an important event as it provides updated projections and gives an indication of the direction government policy may go in for the rest of the year.
Whilst there’s not necessarily anything you need to do to prepare for this date, making sure you are aware of what is included when it takes place is key. The Spring Forecast will likely offer early insight into later changes to business taxes and public spending priorities, which might have a strong influence on any longer-term plans your business makes.
1st April – National Minimum Wage Increase
April always marks the start of the new tax year, bringing with it a wave of changes for employers. The most significant of these is typically an increase in the National Minimum Wage, which will take effect this year from 1st April 2026.
From this date, the National Living Wage and other age-banded minimum rates will rise. Employees aged 21 and over will see their hourly pay rise to £12.71, while those aged 18 to 20 will earn a minimum of £10.50 per hour. Apprentices will also benefit, with their pay rising to £9.00 per hour. For employers, these payrises represent a significant rise in possible payroll costs. It’s important to budget carefully now and, if necessary, make suitable staffing adjustments to mitigate their impact.
6th April – Statutory Sick Pay Increase and Day-One Rights
Another key employment cost change comes into effect on the 6th April, when Statutory Sick Pay (SSP) will increase. SSP rates will increase from £187.18 to £194.32 per week from this point, with wider reforms linked to the Employment Rights Bill also taking effect from this date.
Under the Employment Rights Bill, SSP will become a day-one entitlement, with waiting days removed and a lower earnings threshold abolished. Additionally, new day-one rights to paternity leave and unpaid parental leave will be introduced. These changes will not only increase exposure to statutory costs but may also require your business to review payroll systems and employment contracts ahead of time.
6th April – Capital Gains Tax Changes
The 6th April also marks an important date for business owners contemplating asset disposal in 2026. From this date, the rate of Capital Gains Tax under Business Asset Disposal Relief will increase to 18%.
A rise in Capital Gains Tax can have strong implications, particularly for retiring business owners considering closing their business via Members’ Voluntary Liquidation. It means that assets disposed of during this process will be taxed at a higher rate than previously, increasing the overall tax liability of an otherwise tax-efficient method of asset disposal. In light of these upcoming changes, planning ahead and timing voluntary liquidation plans carefully is key.
6th April – Employment Rights Bill Phase One
In addition to SSP changes, the Employment Rights Bill will bring a number of other key changes on the 6th April 2026. As part of this first major implementation phase, enhanced whistleblowing protections will become law. The maximum protective award for failure to consult in collective redundancy will also double to 180 days’ pay.
A new Fair Work Agency will be established to oversee the enforcement of rights like holiday pay and statutory sick pay, so employers need to be very mindful of this date and ensure that internal procedures are aligned with the new frameworks.
October 2026 – Employment Rights Bill Phase Two
A second phase of Employment Rights Bill changes is then expected later in the year, in October 2026. While the actual implementation of these changes is still subject to government consultation, business owners can expect changing ‘fire and rehire’ rules alongside an increase in the timeframe in which a claim to an employment tribunal can be made.
Businesses in the hospitality sector should be particularly mindful of this key date, as changes to tipping law will also take place. From October 2026, employees must be consulted before a tipping policy is created. This policy must then be updated every 3 years, highlighting the need for good record-keeping and documentation standards.
Get Help In 2026
There are a lot of key dates for business owners to be aware of in 2026, so it’s understandable to feel a little apprehensive about the year ahead. Keeping on top of legislative changes is undoubtedly one of the biggest changes any business owner will face next year, and proactive planning has never been more important.
If you are concerned about the impact the above changes will have on your business, or you would like advice about how to prepare, Ballard Business Recovery can help. As experienced business rescue experts, we can support you as you navigate growing financial pressure this year. Contact us to find out more.
