2026 is going to be a big year for changes in the laws affecting UK business. These will include employment rights, tax, consumer protection and environmental rules.

Engaging with changes early will help you gain clarity, strengthen governance, and build trust with staff, customers, and suppliers.

So what’s changing for your organization, and how can you get prepared and show best practice? Here’s a rundown of what to look out for this year.

April 2026

With landmark employment and payroll changes taking effect, April should be the first major date for your diary. If you haven’t already, now’s the time to review policies, payroll systems, and HR processes to ensure smooth implementation.

• Key employment law reforms under the Employment Rights Act (1 April):

  • Expanded “day one” rights: Changes to paternity leave and unpaid parental leave affect all employers. Make sure to review HR policies and onboarding processes in good time.

  • Statutory Sick Pay (SSP): The three-day waiting period has been removed, and the Lower Earnings Limit has been abolished. This means all employees are now eligible for SSP from day one. Although payroll may rise, it’ll be easier than ever to manage sick-pay administration and ensure fair treatment for all employees.

  • Redundancy consultation: Failing to consult on collective redundancies doubles the protective award from 90 to 180 days’ pay. This is essential to note if you’re planning workforce reductions.

  • Gender pay & menopause provisions: Large employers (>250 staff) will be required to start publishing voluntary action plans alongside gender pay gap reports. These plans set out how organizations are addressing pay disparities and supporting employees experiencing menopause at work.

While voluntary in 2026, it signals a move toward greater transparency and workplace equity ahead of mandatory requirements in 2027. Even if you’re not directly in scope, the changes illustrate broader expectations around pay practices and employee wellbeing.

The above changes mark the first phase of the Employment Rights Act coming into force. Further reforms are scheduled for later in the year.

• Payroll and tax compliance:

  • National Minimum Wage increases (1 April): This will directly influence wage bills and potentially pay structures if you employ hourly-paid staff.

  • Making Tax Digital (6 April): Expands to sole traders and landlords with income over £50,000. If you’re in this bracket, you’ll need to submit quarterly digital updates to HMRC.

  • Inheritance tax adjustments (6 April): The introduction of a £2.5 million cap on Agricultural Property Relief and Business Property Relief. Worth considering if you’re an owner-managed SME with succession or transfer planning needs.

Together, these April changes potentially affect thousands of SMEs either directly through costs, reporting obligations or HR practices. Early engagement with systems, policies and financial planning will support smoother adaptation.

October 2026

October brings the second major phase of the Employment Rights Act, completing the core employment reforms introduced earlier in April.

• Ban on “fire and rehire” practices (1 October): New rules strengthen employee protections during restructures. This will make it harder to dismiss staff in connection with contract changes or cost-saving measures.

• Harassment liability (1 October): Extends to third-party harassment. You should prepare for raised expectations for HR oversight, staff training and workplace culture management.

• Union rights (1 October): You’ll need to inform employees in writing of their right to join a trade union. You should also be prepared to allow unions greater access to your workplace. This may require updates to contracts, onboarding materials and internal communications.

Preparations in advance of these reforms, including reviewing performance management, probation policies and documentation, can mitigate risk and support workforce engagement.

Autumn 2026 (provisional)

• Consumer protection reforms (provisional Autumn rollout): Under the Digital Markets, Competition and Consumers Act, if you offer ongoing contracts (digital or non-digital), you will need to provide clear pre-contract information. You’ll also be expected to offer renewal reminders for contracts over six months, simplified cancellation and 14-day cooling-off periods. Consider reviewing customer communications and compliance processes if you fall under this bracket.

Other changes to be aware of in 2026

From January, new drone regulations apply. If you use drones for filming, surveying or inspection work, you’ll need to ensure equipment is correctly class-marked and registered. There are also tighter advertising restrictions on high-fat, salt and sugar products. Keep in mind if you operate in food, drink, marketing or media.

From February, the fee for incorporating a new company at Companies House doubles to £100. While not a major cost, it reflects a wider push for accurate and up-to-date company information. It’s worth factoring into your administrative planning if you expect to incorporate or file regularly.

And from May, the Renters’ Rights Act begins to take effect. If you own or manage residential accommodation (including flats above shops or staff housing) there’s plenty to do. Landlords will lose no-fault evictions, face tighter rent and tenancy rules, and will need to update contracts, processes and compliance plans.

Using standards to stay ahead of legislative change

As regulation becomes more structured and evidence-based, standards are a powerful tool to help prepare. Relevant standards include:

BS EN ISO 9001, Quality Management Systems: While designed for products and services, its principles can guide other processes. Using simple, repeatable procedures, version control, and clear records helps you handle contracts, written statements and grievances consistently.

BS EN ISO 45001, Occupational Health & Safety: Covers core workplace health and safety practices like risk assessments, staff consultation, and incident reporting. Applying it lightly gives you a structured way to show you take employee wellbeing seriously. Even basic safety logs, a consultation process and a single risk assessment can help demonstrate reasonable steps.

BS ISO 45003, Psychological Health and Safety at Work: The first global standard providing practical guidance on psychological safety at work. Provides plain language and examples of simple actions to manage mental health risks through an occupational health and safety management system.

BS EN ISO 27001, Information Security Management System: Designed to strengthen digital governance, data protection and system controls. Supports compliance with digital tax reporting and consumer data requirements. Applying its principles can help protect HR records, customer data, and digital reporting for tax or subscription services.

By aligning with standards, SMEs can demonstrate best practice, improve internal efficiency and respond more confidently to regulatory change.

Turning 2026 into an opportunity for stronger, more resilient businesses

The laws coming into force in 2026 reflect a broader shift toward fairness, transparency and accountability in how businesses operate. Acting now will help ensure greater clarity, stronger governance and the confidence to meet the changing legislative environment. Standards are a great way to get started.

Discover more about BSI Membership

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