Key Business Updates to Have on Your Radar
From tax administration and employment rules to payroll and business costs, there are several important developments that businesses should be aware of over the coming months.
Here is a round-up of some of the latest updates and what they could mean for businesses and employers.
Making Tax Digital: HMRC Automatic Sign-Up
HMRC has confirmed that from September 2026 it will begin automatically signing up taxpayers who are required to use Making Tax Digital (MTD) for Income Tax for 2026–27 but have not registered themselves.
HMRC will automatically sign up those whose records show qualifying income above £50,000 in the 2024–25 tax year and who have not yet registered.
Those affected will be contacted directly by HMRC. Businesses and individuals affected by MTD should make sure they understand their responsibilities, have compatible software in place and check that HMRC holds accurate information.
Find out more about Making Tax Digital on GOV.UK
New Trade Union Rules for Employers
Businesses should also prepare for changes to trade union rules under the Employment Rights Act 2025.
From 30 October 2026, employers will be required to provide workers with a written statement informing them of their right to join a trade union. The statement must be provided at the start of employment alongside the statement of employment particulars and at other prescribed times.
Employers should keep an eye on the latest guidance and consider whether HR documentation and processes will need updating.
Read the guidance on trade union reforms
Preparing for Changes to Benefits in Kind
Changes are also approaching for the way certain Benefits in Kind (BIKs) are handled through payroll.
From 6 April 2027, mandatory payrolling will apply to company cars, car fuel, vans, van fuel and employer-provided medical benefits. Mandatory payrolling for most other Benefits in Kind is planned from April 2028.
Employers should begin considering whether their payroll software and processes are ready for the changes and how they will communicate the impact to employees.
Read the HMRC guidance on Benefits in Kind
Mileage Allowances Updated for 2026–27
HMRC has also updated Approved Mileage Allowance Payments for the 2026–27 tax year.
The rates are:
- 55p per mile for the first 10,000 business miles
- 25p per mile after the first 10,000 miles
The increase applies retrospectively from 6 April 2026.
Businesses that reimburse employees for business mileage may therefore want to review their current reimbursement arrangements and determine whether any payroll corrections are required.
Read the HMRC mileage allowance update
Energy Costs Remain on the Agenda
Ofgem has announced a 4% increase in the domestic energy price cap for the period from 1 October to 31 December 2026.
While the domestic energy price cap does not directly apply to businesses, changing wholesale energy market conditions remain something businesses may wish to monitor when reviewing future commercial energy costs.
Read the latest Ofgem energy price cap update
Keeping Your Business Prepared
With a number of tax, payroll and employment changes approaching, now is a good opportunity for businesses to review their systems, processes and responsibilities.
Where a change could affect your individual business, payroll or tax position, check the latest official guidance or speak with your accountant, payroll provider or professional adviser.