UK Businesses: A Year of Big Changes and What's Next

What a year 2025 has been for the UK's small businesses! From wage hikes to shifting regulations and significant legislative debates, it's been a dynamic period that demanded constant attention from entrepreneurs across the country. Let's break down the key moments that shaped the past twelve months and cast an eye towards what 2026 has in store. The year kicked off with the Spring Statement in March, which, for many small business owners, offered little in the way of fresh initiatives. The main takeaway was the confirmation of the National Living and Minimum Wage increases, which duly arrived in April. For those aged 21 and over, the hourly rate climbed to £12.21, while 18-20 year olds saw their pay rise to £10. Apprentices and 16-17 year olds also received an increase to £7.55 per hour. April also brought a less welcome change: a rise in Employers’ National Insurance Contributions. This figure jumped from 13.8% to 15%, directly impacting staffing costs and cashflow for many firms. However, there was a silver lining for some businesses with changes to UK company size thresholds. From April 6th, these adjustments could have reclassified some companies as smaller, potentially reducing their regulatory and reporting burdens. Mid-year saw the Labour government unveil its Small Business Plan in July. This comprehensive proposal outlined several key areas for support, including tackling the persistent issue of late payments, exploring ways to reduce business rates, and improving access to crucial finance. The plan also touched on cutting administrative costs, boosting export opportunities, and enhancing training support for the workforce. As the year drew to a close, November brought the Autumn Budget, which, despite being a month later than usual, contained more points of interest for small and medium-sized enterprises. This was followed by a significant development in December: the Employment Rights Bill finally passed through Parliament. After months of back-and-forth debate between the House of Commons and the House of Lords, its approval, albeit with some adjustments, offers a much-needed degree of certainty for businesses regarding employee rights. Looking ahead, 2026 already has some crucial dates marked on the calendar. January 31st is a double deadline for tax returns, requiring both the balance of any tax for the 2024/25 year and the first payment on account for 2025/26. Another payment on account for 2025/26 is due by July 31st, while paper Self-Assessment tax returns for 2025-26 should be filed by October 31st. February 1st will see an increase in business registration prices, and come April 1st, get ready for another National Minimum Wage boost. The rate for over 21s will reach £12.71, 18-20 year olds will earn £10.85, and 16-17 year olds and apprentices will see their pay rise to £8 per hour. Furthermore, expect more detailed guidance on the Employment Rights Bill to be released throughout the year. For UK small businesses, staying informed and adaptable remains key in this ever-evolving landscape. --- Managing your business finances? TaxAce provides smart online accountancy services for UK businesses with flexible monthly plans. Image and reporting: https://smallbusiness.co.uk | Read original article