Terry Harris

Preparing for a new employment landscape in 2026: “Day One” Entitlements

Apr 7, 2026 by Terry Harris 0 Comments

Paternity Leave

As of Monday, 6 April 2026, the Employment Rights Act (ERA) 2025 will fundamentally transform the UK workplace by introducing several "Day One" entitlements. Now, paid paternity leave and unpaid parental leave are Day One Rights, granted immediately upon joining a firm. Fathers will also be permitted to take paternity leave, even after finishing a period of shared parental leave, a change that applies to all babies born or placed for adoption. Further, employers should take note of the recent introduction of Bereaved Partner’s Paternity Leave, which offers up to 52 weeks of protected leave for those whose partner dies before a child’s first birthday.

Statutory Sick Pay

The 3-day "waiting period" for Statutory Sick Pay (SSP) has also been removed, and SSP is now a Day One Right. Further, the Lower Earnings Limit (LEL), which previously required employees to earn at least £125 pw to qualify, has been scrapped, and all workers, regardless of their weekly pay, are now eligible for either the standard rate of £123.25 pw or 80% of their average weekly earnings, whichever figure is lower. This change obligates an immediate review of HR payroll systems and sickness policies to factor in a likely increase in both the number of eligible employees and total company expenditure on short-term absences.

Whistleblowing Protections

The whistleblowing laws, which have always been a de facto Day One Right, have been broadened to include complaints of sexual harassment as "protected disclosures explicitly". This means that any worker who reports harassment is shielded by law against detriment or unfair dismissal, requiring employers to update their internal whistleblowing and harassment policies to reflect this heightened level of legal protection.

Source:HM Government | 06-04-2026

Business Support

Data Protection rules are still alive

Apr 6, 2026 by Terry Harris 0 Comments

Businesses that collect or use personal information must comply with UK data protection law. Personal data includes any information that can identify a living individual, such as names, addresses, contact details, financial information or online identifiers. The rules apply whether information relates to customers, employees or suppliers, and whether it is stored digitally or on paper.

The main legal framework is the UK General Data Protection Regulation together with the Data Protection Act 2018. These rules require businesses to use personal data lawfully, fairly and transparently, and only for clearly defined purposes. Organisations should collect only the information they genuinely need, keep it accurate and up to date, and retain it only for as long as necessary. Appropriate security measures must be in place to protect data from loss, misuse or unauthorised access.

Businesses are expected to inform individuals how their data will be used, usually through a privacy notice explaining what information is collected, why it is required and how long it will be retained. Individuals have the right to access their personal data and request corrections or deletion where appropriate. Organisations must normally respond to such requests within one month.

Many businesses are also required to register with the Information Commissioner’s Office and pay a data protection fee, unless exempt. Overall, effective data protection helps maintain trust, supports compliance and reduces the risk of financial penalties or reputational damage arising from data breaches.

Source:Other | 05-04-2026

General

Crackdown on energy profiteering

Apr 6, 2026 by Terry Harris 0 Comments

The government has announced a package of measures designed to tackle unfair price increases and strengthen the United Kingdom’s long term energy security. The Chancellor has set out proposals to give regulators additional powers to intervene where businesses are considered to be charging excessive prices during periods of market disruption. The aim is to prevent opportunistic price increases, particularly in sectors where consumers are most exposed to rising costs such as fuel, food and energy.

The proposals are partly in response to renewed global instability which has placed upward pressure on fuel and energy prices, contributing to broader cost of living concerns. The government intends to work closely with regulators and industry bodies to ensure that markets remain competitive and that consumers are treated fairly. Enhanced oversight may allow regulators to act more quickly where there is evidence that prices have risen beyond what can reasonably be justified by increases in underlying costs.

Alongside measures to address profiteering, the government has emphasised the importance of improving domestic energy resilience. Plans are expected to support investment in reliable long term energy infrastructure, including nuclear generation, in order to reduce dependence on volatile international energy markets. Improving the stability of energy supply is seen as an important step in reducing exposure to sudden price shocks in future years.

The announcement forms part of a wider strategy to promote economic stability, manage inflationary pressures and provide reassurance to households and businesses concerned about rising costs.

Source:Other | 05-04-2026

Value Added Tax

Your responsibilities if registered for VAT

Apr 2, 2026 by Terry Harris 0 Comments

It is important to understand both when VAT registration is required and the ongoing obligations that follow. The VAT registration threshold is currently £90,000 of taxable turnover, although businesses below this level can choose to register voluntarily.

Once VAT registered you must ensure you meet your required responsibilities. Businesses must charge VAT on their sales, known as output VAT, while also incurring VAT on most purchases, referred to as input VAT. In practice, VAT-registered businesses act as a collector on behalf of HMRC, charging VAT to customers and paying it over periodically.

The amount payable to HMRC is the difference between output VAT and recoverable input VAT. Where input VAT exceeds output VAT, a refund may be due. However, it is important to note that not all input VAT is recoverable, and care should be taken to ensure claims are valid.

Having a VAT registration also brings with it a number of administrative responsibilities. As a VAT-registered business you must:

Include VAT in the price of all goods and services at the correct rate.
Keep records of how much VAT you pay for things you buy for your business.
Account for VAT on any goods you import into the UK.
Report the amount of VAT you charged your customers and the amount of VAT you paid to other businesses by sending a VAT return to HMRC. This is usually done every 3 months but there are other options available.
Pay any VAT you owe to HMRC.

Source:HM Revenue & Customs | 30-03-2026

General

Tax-free and taxable State Benefits

Apr 2, 2026 by Terry Harris 0 Comments

While there are many state benefits available, it is not always clear which of these are taxable and which are tax-free.

HMRC’s guidance outlines the following list of the most common state benefits which are taxable, subject to the usual limits:

Bereavement Allowance (previously Widow’s Pension)
Carer’s Allowance or (in Scotland only) Carer Support Payment
Contribution-Based Employment and Support Allowance (ESA)
Incapacity Benefit (from the 29th week you receive it)
Jobseeker’s Allowance (JSA)
Pensions Paid by the Industrial Death Benefit Scheme
The State Pension
Widowed Parent’s Allowance

The most common state benefits that usually tax-free include the following:

Attendance Allowance
Bereavement Support Payment
Child Benefit (income-based – use the Child Benefit tax calculator to see if you’ll have to pay tax)
Disability Living Allowance (DLA)
Free TV Licence for Over-75s
Guardian’s Allowance
Housing Benefit
Income Support – though you may have to pay tax on Income Support if you’re involved in a strike
Income-Related Employment and Support Allowance (ESA)
Industrial Injuries Benefit
Lump-Sum Bereavement Payments
Maternity Allowance
Pension Credit
Personal Independence Payment (PIP)
Severe Disablement Allowance
Universal Credit
War Widow’s Pension
Winter Fuel Payments and Christmas Bonus

Source:HM Revenue & Customs | 30-03-2026

Business Support

Business.gov.uk advice selling to international markets

Apr 2, 2026 by Terry Harris 0 Comments

There are a variety of services available to assist UK exporters that can be found at https://www.business.gov.uk/export-from-uk/

There you can find a range of government-backed tools and support to help businesses begin or expand their export activity. The GOV.UK platform brings together guidance, training and financial support in one place, aimed at simplifying what can often be a complex process.

This includes detailed market guides, helping businesses assess opportunities, understand local regulations and navigate cultural and commercial differences.

Businesses can also join the Digital Exporting Programme to receive practical support for when looking to grow through ecommerce and online marketplaces. There is also a wide range of training available through the Business Academy which offers free webinars, masterclasses and events covering everything from export basics to sector-specific opportunities.

Financial assistance is available through UK Export Finance, which can help qualifying businesses secure contracts, manage cash flow and mitigate risks such as non-payment.

This range of services can help UK exporters deal with international markets and is especially useful for small businesses unaccustomed to working with international markets.

Source:HM Government | 30-03-2026

Corporation Tax

The marginal Corporation Tax rates

Apr 2, 2026 by Terry Harris 0 Comments

The rate of Corporation Tax payable depends on the level of a company’s taxable profits. The main rate is 25% and applies where profits exceed £250,000. At the other end of the scale, companies with profits of £50,000 or less benefit from the Small Profits Rate, which remains at 19%.

For businesses with profits between these thresholds, marginal relief applies. Rather than facing a sharp increase in tax, companies experience a gradual rise in the effective rate as profits move from £50,000 towards £250,000. This ensures a smoother transition between the lower and higher rates.

It is important to note that the £50,000 and £250,000 thresholds are not always fixed. They are reduced where a company has associated companies or where the accounting period is shorter than 12 months, which can bring more businesses into the marginal relief band.

In practice, Corporation Tax is initially calculated at the main rate of 25%, with marginal relief then deducted to arrive at the final liability. The relief is calculated using a standard fraction of 3/200.

The marginal rates help smaller companies to pay less Corporation Tax based on their profit level and circumstances.

Source:HM Revenue & Customs | 30-03-2026

Capital Gains Tax

Business Asset Disposal Relief – tax increase from April 2026

Apr 2, 2026 by Terry Harris 0 Comments

The tax rate for Business Asset Disposal Relief (BADR) will increase to 18% (from 14%) on 6 April 2026. BADR offers a reduced Capital Gains Tax (CGT) rate on qualifying disposals such as the sale of a business, shares in a trading company or an individual’s stake in a trading partnership.

These rate increases are accompanied by new anti-forestalling rules designed to prevent individuals from securing the lower BADR rate by using early contracts. Where an unconditional contract is entered into during the 2025-26 tax year but completes on or after 6 April 2026, the disposal will normally be treated as occurring at completion, meaning the higher 18% rate applies.

However, the legislation allows for “excluded contracts” where the contract was not entered into to secure a tax advantage and, where parties are connected, was entered into wholly for commercial reasons. Where total gains under excluded contracts do not exceed £100,000, the anti-forestalling does not apply.

The lifetime BADR limit remains £1 million meaning individuals can use the relief multiple times, provided their total gains from qualifying disposals do not exceed this threshold. However, the higher CGT rates obviously reduce the tax advantage available. Investors’ Relief CGT rates are currently in line with those for BADR and will also increase to 18% in April 2026.

Source:HM Revenue & Customs | 30-03-2026

General

Action to reduce cost of living pressures

Apr 2, 2026 by Terry Harris 0 Comments

The Chancellor has set out a package of measures aimed at reducing cost of living pressures for households and at the same time strengthening the UK’s longer-term economic resilience. The announcement focuses on tackling rising prices, improving energy security and ensuring markets work fairly for consumers.

A key element is the introduction of an anti-profiteering framework, giving regulators such as the Competition and Markets Authority enhanced scope to act against unjustified price increases. The government has indicated it will not hesitate to introduce targeted, time-limited powers where necessary to clamp down on price gouging and protect working people.

Alongside this, there is a renewed push on energy security. Planned legislation will help secure the delivery of nuclear projects, reduce delays in the planning process and limit the impact of legal challenges on critical infrastructure. The intention is to accelerate domestic energy production and reduce the UK’s exposure to volatile international gas prices.

The Chancellor has also confirmed that options for targeted reductions in agri-food import tariffs will be explored, with the aim of lowering food prices at the point of sale.

These steps build on existing support, including extended fuel duty relief, capped energy bills and targeted assistance for vulnerable households.

Source:HM Treasury | 30-03-2026

Business Support

Income from spare capacity

Mar 30, 2026 by Terry Harris 0 Comments

Many businesses have spare capacity that could generate additional income with relatively little additional cost. Spare capacity may arise where premises, staff time, equipment or intellectual property are not fully utilised throughout the working week or year. Identifying and using this capacity can improve profitability without significantly increasing overheads.

One common example is unused space. Offices, workshops or storage areas can often be rented to other businesses, particularly where flexible arrangements are attractive to start ups or remote workers. Even occasional or short term use can create incremental income that contributes towards fixed costs such as rent, heating and insurance.

Staff capacity can also be reviewed. Where employees have quieter periods, their skills may be used to deliver additional services. For example, a manufacturing business might offer repair or maintenance services, while a professional firm may provide training, consultancy or support services to a wider audience.

Equipment that is not used continuously can also generate revenue. Specialist machinery, vehicles or technical equipment may be hired out when not required for core operations. This can help recover capital costs more quickly and improve return on investment.

Digital assets provide further opportunities. Businesses may be able to licence training materials, templates, software tools or data insights developed internally. Once created, these resources can often be sold multiple times with minimal additional cost.

The key is to identify underutilised resources and consider how they might provide value to others. Generating income from spare capacity can improve resilience, support cash flow and help offset rising operating costs without the risks associated with major expansion.

Source:Other | 29-03-2026

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