The beginning of a new year means that many people are considering major life changes, and that includes starting a business.

But while the idea of a solopreneurship or a new venture sounds exciting at first, it’s much easier said than done.

A report by Intuit Quickbooks reveals a rise in ambition for self-employment and entrepreneurship in the UK. However, there are a couple of things holding these would-be solopreneurs back.

While money worries and fear of failure remain the main blockers to taking the leap into entrepreneurship, a growing lack of AI literacy is also emerging as another significant barrier.

The UK’s appetite for solopreneurship is growing fast

Entrepreneurship remains strong in the UK, and the ambition for people to ditch the traditional 9-5 in favour of the freelance life has been growing rapidly in the last year. 

As of 2025, there are 3.2 million sole proprietorships, and new research suggests that this number is likely to grow. According to the Entrepreneurship in 2026 report by Intuit Quickbooks, 33% of UK adults say they intend to start a business or side hustle in the next 12 months.

The report also reveals that increasing income is the largest motivator for inspiring entrepreneurs, with 52% of respondents wishing to build their wealth through starting a business. Other motivating factors included being your own boss (49%) and flexibility over working schedules (42%).

However, financial concerns and a lack of confidence were reported as the main barriers standing in the way of entrepreneurial ambition, with 40% of respondents citing not enough savings or startup capital as the reason they hadn’t created their own business. This was followed closely by the fear of failure for 38% of respondents.

Leigh Thomas, Vice President EMEA at Intuit, comments: “The ambition is there, but so is the anxiety. Britain is full of people who want to work for themselves, yet the cost-of-living makes that leap harder than ever.”

AI literacy is a hidden brake for aspiring solopreneurs

The lack of AI literacy has also emerged as a hidden yet growing barrier for aspiring solopreneurs.

This is reflected in the Government’s SME Digital Adoption Taskforce report from July 2025, which found that many SMEs still lack the confidence to adopt and use new digital and AI tools effectively.

Moreover, research reported by KPMG reveals that 73% of Brits have received no AI training or education. It also found that out of the 47 countries surveyed, the UK was placed at the bottom third for AI literacy and training.

And it’s this limited knowledge and expertise that’s responsible for the low rate of businesses adopting AI technology. A survey by the Institute of Directors found that half of respondents cited limited understanding of AI models and tools as a key barrier to adoption, alongside a lack of trust in AI-generated outcomes.

What’s more, the lack of AI adoption has been most persistent among sole traders and solopreneurs, according to research by Moneypenny. It revealed that 42% of sole traders have no intention of adopting AI, while another 31% are only using it sparingly.

How to master AI tools for entrepreneurship

For aspiring freelancers or solopreneurs that are new to using AI for business, the first thing to note is that not all AI tools are the same — some generate content, some automate workflows, some analyse data, and others optimise digital marketing.

When looking into the tools you want to use, you should first focus on the ones that solve your biggest business pain points, rather than trying to learn everything at once.

Next, learning by doing is essential. Start by choosing a small project (like automating social media posts or generating product ideas), experiment with different AI tools, and track what works and what doesn’t. It also helps to refine your prompts as you go along. Clear, specific, and goal-oriented instructions will give you better results. 

Finally, look at how your business runs day-to-day and spot where AI can save time or reduce effort. From there, you can build simple workflows that use both human judgment and AI assistance. 

“Founders who understand how to apply AI can validate ideas faster, reach customers more efficiently, and operate at a scale that would previously have required a team.” Matt Rouif, CEO of photo-editing platform Photoroom, comments.

“Going into 2026, solopreneurs who build strong AI literacy will be able to stay lean for longer and compete in markets that would once have been out of reach.”

You don’t have to be a fully-fledged AI expert to start as a solopreneur. Even small, practical uses of AI can make a big difference early on, helping you work more efficiently and grow your business rather than getting stuck in endless admin or workflow overwhelm.

A bill has been put forward by a group of senior Labour backbenchers that would see banks required to up their lending offerings for small businesses, and be held accountable for their impact. 

The legislation, if passed, would push banks to give more backing to credit unions and community development finance institutions (CDFIs), which are often the organisations that SMEs approach if mainstream lenders can’t help them. 

The MPs also want banks to be responsible for reporting on their impact, including measures to improve access to business finance and reduce financial exclusion. The move is a bid to make finance more accessible for more businesses – many of which have struggled since financial turbulence has made lenders more risk-adverse. 

What prompted the bill?

The 10-minute rule bill, known as the Fair Banking Act, was tabled by former business minister Gareth Thomas. Commenting on LabourList, he wrote: 

“Thousands of small and medium-sized businesses are currently locked out of the finance they need to grow. Entrepreneurs without long track records or significant assets often find the door to mainstream banking closed. Too many are left without advice, support or a fair chance to turn good ideas into thriving businesses. This is particularly true for businesses led by women, people of colour and disabled people and for those based in the most economically deprived parts of the UK.” 

Thomas added that more than half of small firms say credit is unaffordable, that business finance in the UK is more expensive than in other countries, and that businesses with trading incomes of less than £10m cannot access personalised advice.

This means that early-stage entrepreneurs and businesses with smaller turnovers cannot get funding, nor advice on how to grow. “Access to affordable finance can unlock the potential of businesses across the UK, helping them grow and thrive,” argues Thomas.

What would the Fair Banking Act do?

Mirroring the US Community Reinvestment Act, the Fair Banking Act would give the Financial Conduct Authority the power “to assess how well banks of different sizes are serving individuals, small businesses and underserved communities”. 

This data would then be published as a ratings system to show exactly what banks are doing to meet their criteria. “Banks would be able to improve their ratings by expanding their own affordable lending, and by partnering with credit unions and community development finance institutions (CDFIs),” says Thomas. 

He adds that there wouldn’t be punishments for banks that fall short but there would be “accountability, transparency and incentives to do better”.

The bill has won the backing of business and trade committee chair Liam Byrne, work and pensions committee chair Sarah Owen, as well as former shadow chancellors Anneliese Dodds and John McDonnell.

Does the bill go far enough?

The legislation will face scrutiny, but it has been widely praised for its ambition. However, as George Holmes, managing director of Aurora Capital, told UKTN, there are concerns that it could become a “box-ticking exercise”. 

He explained: “If ministers want this to resonate with business owners, they should pair accountability with practical delivery, faster schemes, simpler access, and consequences for banks that continue to shut SMEs out.”

Businesses struggling to raise finance in the current jittery climate will be hoping that this bill could make an impact. However, it does serve as recognition that the current lending system is leaving many business owners out in the cold, unable to grow their venture. Supporting them will benefit the economy as a whole.  

December sales for non-food businesses dropped year-on-year, but data from post-Christmas and early January shows an uplift in spending.

Data from the latest British Retail Consortium-KPMG Retail Sales Monitor suggests that it was only supermarkets like Lidl and Aldi that had a December of increased sales, while online and high street non-food businesses suffered a year-on-year 0.3% dip. 

Christmas 2025 may not have been the shopping bonanza that retailers expected, but they should now focus on marketing to those customers who held off on full-priced purchases in December and are looking for deals in January instead. 

“Drab December”

Reported by BRC and KPMG, this 0.3% year-on-year decrease in December non-food sales stands out compared to the 4.4% growth seen from 2023 to 2024, and the 12-month average growth of 1.1%.

The report also revealed that December’s online non-food sales specifically dipped by a smaller 0.1% year on year, however, this makes for even more dramatic reading when compared to the year-on-year growth of 11.1% seen in December 2024. 

BRC chief executive Helen Dickinson said: “It was a drab Christmas for retailers, as sales growth slowed for the fourth consecutive month. While food sales rose on the back of ongoing food inflation, non-food sales fell flat in the run up to Christmas, with gifting items doing worse than expected.”

Hope for January

The figures for the beginning of this year, however, offer more hope, as there was an uplift in spending as retailers reduced prices for sales periods. Dickinson commented: “Many people were clearly holding out for discounts, with the last week showing significant growth off the back of Boxing Day and beginning of the January sales.”

Businesses need to market smartly to take advantage of this trend, not least because January shoppers are still very much feeling the impact of the cost of living crisis, and businesses will be fighting for their attention. 

Customer loyalty will play an important role in this, and therefore personalised deals could come into their own. Online shoppers in particular will be hunting out discounts and promotional codes in their inboxes. 

Shoppers on the high street may have specific buys in mind and will go from store to store to find the best deal. The high street, though, remains a tough environment. A Press Association report suggests that 2026 will see yet more closures with River Island, Claire’s, LK Bennett and Pizza Hut all on the watch list.  

Call for support

The BRC has used the report to call on the Government to support high street businesses, many of which are suffering from slow sales but also the burden of business rates, staff costs and what they argue are high taxes. 

Dickinson says: “From business rates to the implementation of the Employment Rights Act, there are plenty of opportunities for the Government to mitigate costs for retailers and prices for customers.”

For retailers of all sizes, December hasn’t brought the boon hoped; and they will now need to scramble to take advantage of any potential boost from January deals.

After a turbulent year, fast food business LEON has been bought by its previous owner and co-founder, John Vincent, whose social media posts and emails to customers have been a lesson in how to address complex change, retain loyalty, and even drive footfall in difficult times. 

2025 was not kind to LEON. After profits tanked under the ownership of supermarket chain Asda, the end of the year brought closures and job losses. We examine how Vincent is managing to change the narrative, and what businesses can learn from his comms.

Being honest about the present while looking to the future

In December, the news for LEON was all bad. The company had to appoint administrators, and the decision was taken to shut 20 stores across the country and make job cuts as a result. This announcement came after Asda’s tenure had seen the chain lose around £10m a year. 

Vincent retook the helm in November, and told BBC News that he was sympathetic to Asda’s management team’s struggles, but added candidly: “In the last two years, Asda had bigger fish to fry, and LEON was always a business they didn’t feel fitted their strategy.” Vincent – and the other LEON co-founders – have openly spoken and written about how the brand lost its way under Asda, including Vincent’s comment: “As you may have noticed, LEON has drifted from some of its core principles.”

But it hasn’t all been dwelling on the difficulties. Vincent has pushed forward with a balance of honesty about the current situation for his employees and tantalising hints about what fans of the brand can now expect in the coming months.

In fact, Vincent is reported by The Guardian to have drafted in co-founder Allegra McEvedy, who is no longer involved in the business side of the venture, to create a menu that goes back to the original tenets the brand lived by.

Showing care for staff

Rather than skirting around the fact that job losses were inevitable, Vincent sent an email to subscribers that dealt with this head on. “We will need to close the restaurants that are not profitable and that we expect will not return to profitability. That means reducing from around 70 to around 50 locations,” he wrote. 

However, he added that LEON management had already reached out to rival Pret A Manger and created “a dedicated application route” to support LEON employees as they try to find a new role. He also explained that LEON would fight to keep as many employees as possible, finding them new positions in restaurants that were staying open. 

The letter reads as a masterclass in acknowledging the truth – job cuts and closures – while developing practical ways to help staff find a solution, showing they were valued in their roles. Balancing the bad with the solution can be an effective way to communicate difficult news to your customers, from price hikes to stock issues. 

With confidence low among many business owners – especially in the F&B sector where LEON resides – Vincent’s letter is valuable reading. Lots of businesses are having to make the tough call to let staff go, and Vincent has shown how to do this with compassion and without repelling customers.

Adding a personal touch

However, it is the inclusion of his email address in the letter that has won the most admiration. 

Vincent asks customers to be part of the journey to bring LEON back to what it had been: “From my many conversations with our guests across the last four weeks, it is clear that you also share my belief that we must also restore the culture of teamwork and customer service in our restaurants. That is at the end of the day my responsibility.” 

This simple inclusion gives customers a sense of being part of the brand’s journey. It gives them emotional investment in LEON’s restoration, potentially making them more likely to visit when the new menu goes live.

In his communications with customers, Vincent has turned a dire situation into one in which he has won praise for compassion, excited customers about the future, and reinvigorated loyalty by giving customers a personal way to have a say in the future of the brand. For the many businesses going through hardships, this could be a blueprint for navigating difficult change. 

Discover the ales and ails of hospitality

Planet of the Grapes founder Matt Harris has over 25 years of experience in hospitality. Read his bi-monthly column for Startups now.

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Last month, Labour’s ‘once-in-a-generation’ overhaul of workers’ rights finally became law, but in a significantly diluted format. 

After a drawn-out game of parliamentary ping-pong, ministers made a series of concessions that have reduced the projected impact on workers, simultaneously lessening the cost for UK employers. 

According to the government’s latest figures, the cost of the reforms for businesses has fallen from as much as £5bn to around £1bn. For small businesses already up against a relatively bleak financial outlook, the news may trigger a sigh of relief.

What’s changed in Labour’s Employment Rights Bill

On its way through Parliament, the landmark Employment Rights Bill has been subject to many key concessions. 

Notably, ministers scrapped plans to introduce day-one rights to claim unfair dismissal, instead replacing them with a six-month qualifying period. This was in direct contrast with Labour’s election manifesto, causing backlash from several MPs, business groups, and trade unions. 

Other changes include gradually phasing in reforms, rather than introducing them all at once. 

Despite the revisions, the bill will still introduce major employment changes, including day-one rights to sick pay and paternity leave, which employers should be prepared for by April 2026.

How much will it really cost businesses?

The government’s revised impact assessment puts the cost of the reforms at around £1bn for businesses, a significant drop from previous estimates of £5bn. 

However, business groups have challenged the government’s figure. The British Chambers of Commerce said the £1bn figure likely underestimates the true cost of the impact on businesses.

Policy director, Kate Shoesmith, commented: “The impact figure doesn’t adequately account for the harder to quantify costs. Those include staff time for understanding and implementing new processes or explaining these to colleagues.”

Furthermore, some business leaders and Conservative politicians are also unhappy with the bill, saying that even in its diluted form, it adds unnecessary pressure to businesses at a particularly economically difficult time. 

What does it mean for small businesses, and what happens next?

Aside from the projected cost to employers, the government says that millions of workers will benefit from the improved employment rights, particularly women, young people, and lower-paid employees. 

The reforms are intended to improve job quality and productivity, while creating fairer competition between businesses and bringing the UK in line with EU standards, which should have an overall positive impact on economic growth.

For small businesses, the focus should now be on adapting to the upcoming changes. While the phased rollout may slightly delay the immediate impact, employers will still need to review their HR processes while preparing for the new ways of working and potential cost increases along the way.

Last Thursday, the government announced it would be making a U-turn on its earlier planned hikes to business rates for pubs, following ongoing pressure from MPs, trade groups, and the wider industry.

Hospitality businesses have faced incredibly tough trading conditions in recent years, with rising costs, tight margins, and looming increases to business rates threatening closures and job losses across the country.

This change could be a partial light at the end of the tunnel for many venues, but questions remain about whether the relief will be enough to make a real difference.

What’s changed, and why hospitality businesses welcome the U-turn

Chancellor Rachel Reeves has promised a financial support package for pubs, which would include reductions to business rates.

Before this, the sector was set to face a steep 76% increase in rates bills on average. This was, in part, a result of the withdrawal of pandemic-era reliefs and higher property valuations, meaning fewer businesses would qualify for the lower multiplier announced in the 2025 Autumn Budget.

Industry groups had already warned that the increases could intensify financial pressure. But in recent weeks, pressure has amped up, with trade bodies lobbying ministers and desperate landlords barring Labour MPs from their pubs in protest.

While welcoming the U-turn, industry leaders have remained cautious, stressing that rate reform must go further to fully account for the financial state of the hospitality industry.

What it means for hospitality on the ground

Without change, UKHospitality estimated that the business rate rises would have amounted to a staggering £318m in costs for small hospitality businesses over the next three years.

Thanks to already thin margins, this would have been a blow for many, which makes the government’s reversal feel like a precious bit of good news for a sector that has had so little of it recently.

For pubs and small venues, the reversal will have immediate, tangible benefits. Reduced or delayed business rate bills could provide cash flow relief for struggling businesses, which could help them stay afloat through the quieter first months of the year.

What comes next for pubs and the wider sector?

So far, relief appears to be limited to pubs, leaving much of the wider hospitality sector, including restaurants, cafés, hotels, and nightclubs, still at risk of rising rates. Trade bodies and industry leaders are pushing for wider support for the whole industry, arguing that restaurants and hotels face many of the same challenges as pubs.

“The entire sector is affected by these business rates hikes – from pubs and hotels to restaurants and cafés,” Kate Nicholls, chair of the industry body UKHospitality, told The Guardian. “We need a hospitality-wide solution.”

There are also renewed calls for long-term reform of the business rates system, with campaigners arguing that, as it is, the model disproportionately penalises bricks-and-mortar businesses, which by nature include most hospitality venues, compared with online or lower-overhead sectors.

For now, the government’s promise of a U-turn represents a hopeful step. Whether it becomes a lasting turning point for hospitality will depend on what follows, and whether the government is prepared to address the sector’s challenges beyond short-term fixes.

Discover the ales and ails of hospitality

Planet of the Grapes founder Matt Harris has over 25 years of experience in hospitality. Read his bi-monthly column for Startups now.

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According to UKHospitality’s 2026 trend report, “plant-forward” dining is expected to influence a widespread shift across the industry this year. As strict vegan diets become less common, a larger group of flexitarians – diners who favour a balance of both meat and plant-based dishes – are now shaping menus.

Perhaps in quiet rebellion against the strict veganism of previous years, 2025 was defined as the year of protein. Meat-heavy menus and high-protein hacks dominated both social media and restaurant menus.

However, 2026 appears to be a little more moderate, as this data suggests the future of eating out isn’t all-or-nothing.

For hospitality businesses, this raises a practical question: what does plant-forward dining actually mean, and how should you adapt your menu to stay competitive?

What does “plant-forward” mean, and why is it trending?

Plant-forward dining doesn’t mean wiping out meat from your menus entirely. Instead, it refers to an approach where plant-based ingredients are central to menu design, rather than treated as an afterthought.

Rather than adding a token vegan option just to tick a box, food and beverage businesses are integrating vegetables, grains, and plant-based proteins into staple dishes, often in ways that feel familiar and comforting. This might look like reimagined pub classics or creative, globally inspired small plates, rather than overly health-conscious, “clean” vegan salad bowls.

Diners increasingly want food that is flavour-led, inclusive, and recognisable, not dishes that feel like a compromise or, frankly, boring. Global flavours can work seamlessly here. Korean-style sauces, Middle Eastern spices, and street food-inspired ingredients help plant-forward dishes remain indulgent and familiar, without becoming unnecessarily complex.

UKHospitality’s report notes that operators are rethinking how plant-based dishes appear on menus, keeping them visible, appealing, and varied.

How to decide if your menu needs a plant-forward upgrade

For many hospitality businesses, the issue isn’t a lack of plant-based options; it’s how they’re presented on the menu.

Often, plant-based dishes are buried in a separate vegan section that offers limited choice or lacks the flavour and oomph of meatier options. Many businesses also fall into thinking that “plant-based” equals “something green”, but crucially, diners are increasingly looking for plant-forward options that appeal to a wide range of taste buds across various contexts. 

Of course, it’s worth acknowledging that many hospitality businesses are operating under increasingly tough cost pressures, facing ever-rising food prices, energy bills, and job losses. 

For some, a full menu overhaul may not feel like a priority as they focus on getting out of the woods. However, plant-forward dining can also work out more cost-effectively. Working with cheaper ingredients like potatoes, grains, and veggies over pricier meat and fish might work in operators’ favour, at no cost to customer appeal.

How hospitality businesses can adapt to plant-forward demand

For pubs and restaurants looking to respond to this trend, menu integration is key. Position plant-forward dishes alongside classics, rather than isolating them in a separate section.

UKHospitality notes that group dining has become a major driver, where appealing plant-based options determine where the entire group chooses to eat. By signalling that you can offer both, you’ll win over vegan-leaning customers and their friends, too.

Aside from labels, your number one focus should be flavour. Bold seasoning and globally inspired dishes will help plant-forward dishes stand out alongside meatier favourites. But this doesn’t require complexity. Building dishes around cost-effective, seasonal, and local ingredients reduces pressure on kitchens and supply chains.

If you do embark on a plant-forward menu makeover, make sure your community hears about it by highlighting your plant-forward options online, on delivery platforms, and on your physical menus.

In practice, plant-forward dining can offer flexibility on both sides of the table. For consumers, it reflects changing tastes and a desire for options without rigid dietary labels. For hospitality businesses, it can offer much-needed breathing room to adapt to cost pressures while appealing to a broader set of diners without needing to commit to all-or-nothing changes.

Discover the ales and ails of hospitality

Planet of the Grapes founder Matt Harris has over 25 years of experience in hospitality. Read his bi-monthly column for Startups now.

Read Whining and Dining

The new year is already looking difficult for pubs and bars across the UK.

On Monday, the UK Government announced plans to lower the drink-driving limit in England and Wales as part of a new road safety strategy.

But pub landlords have been quick to push back. Following a protest across the country last month — in which over 250 venues barred Labour MPS from their doors in response to increasing business and VAT rates — business owners are now concerned that this latest proposal could further strain an already struggling industry.

This revelation also comes shortly after the Government’s announcement to increase alcohol duty rates, adding even more to the cost of running a pub or bar.

And with the Dry January challenge in full swing alongside more customers opting for low and no alcohol options on a long-term basis, pub culture is set to keep changing this year. 

Lower drink-driving limit raises concerns for pubs

Under its new road safety strategy — which aims to reduce deaths and serious injuries on the road by 65% to 70% by 2035 — the Government has proposed to reduce the drink-driving limit in England and Wales.

Currently, the drink-driving limit is 35 micrograms of alcohol per 100ml of breath — the highest in Europe alongside Malta. If the new strategy is enforced, this could be lowered to 22 micrograms.

“We don’t want to stop people from going to the pub and having a great night out,” transport minister Lillian Greenwood told Times Radio. “What we’re saying is don’t take your car.”

However, pub landlords have criticised this proposal, raising concerns that it could significantly reduce trade, particularly for community and rural pubs. 

Guy Richardson, owner of The Bright Star in Peters Green, Hertfordshire, calls the crackdown “bizarre”, and says that running a pub is already “impossible” in today’s economy.

“I think they’ve collectively just built up the emphasis of getting rid of pubs altogether, if I’m honest with you,” Richardson told GB News.

Rising alcohol duty rates pile extra pressure on pubs

The Government’s new proposal is yet another blow to an already struggling sector, coming just two months after its announcement to increase alcohol duty rates.

Following the 2025 Autumn Budget, the Government confirmed that all alcohol duty rates will rise by 3.66%, in line with Retail Price Index (RPI) inflation, from 1 February 2026.

As expected, this decision was met with backlash from pub owners and other hospitality businesses, with The Night Time Industries Association calling it a “hammer blow” to the economy.

Breweries have also expressed concerns over how they’re going to charge their business clients with these new rates.

Harry Benbow, brewer and Director at Oxfordshire-based brewery LoveBeer, told ITV News that the increase in alcohol duty is not a cost the business can easily pass on.

“Most pubs just cannot take any more increase on the price we charge them,” he said. “We just can’t compete with the big companies on price.”

Low-and-no alcohol drinking is reshaping pub culture

Beyond new Government plans and proposals, pub businesses are also feeling the impact of changing attitudes towards drinking, as growing numbers of people opt for low or non-alcoholic alternatives.

The Dry January challenge — which was introduced in 2013 by Alcohol Change UK to encourage people to give up alcohol at the start of the year — has long affected sales during this period. This year, almost a third of UK adults are planning to take part, committing to a 31-day break from alcohol.

However, a survey from The Portman Group and YouGov suggests that going alcohol-free has gone beyond the Dry January season. According to the survey, a third of UK adults (33%) reported not drinking alcohol at all, while 36% said they consume low or no alcohol products either regularly or occasionally. 

But while this change in preference can affect alcohol sales, it isn’t necessarily bad news for pubs. For example, following a campaign from The University of York that encourages low-alcohol or alcohol-free options, pub landlords say business hasn’t suffered from customers opting for these alternatives.

Ryan Moulder, Director of bar and coffee shop Fossgate Social said that pubs and bars have had to adapt to changing customer expectations, but that the results have been positive.

“Venues like ours have had to become more worthwhile with events, unique atmosphere, and a high quality offering to attract customers,” Moulder told The BBC. “So, I’d say the quality in terms of drinking establishments has increased, and there are certainly less issues with drunk and disorderly behaviour.”

Discover the ales and ails of hospitality

Planet of the Grapes founder Matt Harris has over 25 years of experience in hospitality. Read his bi-monthly column for Startups now.

Read Whining and Dining

The usual January gloom brings the added stress of tax returns for sole traders and freelancers in the UK.

New research from tax filing platform TaxZap reveals the extent to which self-employed Brits are unsatisfied with their accountants, with 58% thinking of dropping theirs.

This data comes at a time when millions of individuals have yet to file their tax returns, and suggests that strained relationships with accountants may be a key reason for this delay.

Alongside the usual gloom, January brings added stress for freelancers in the UK, with the Self-Assessment tax return deadline now less than 30 days away. But are their accountants helping or hindering?

Why do freelancers want to ditch their accountants?

For years, businesses and freelancers have hired accountants for their expertise in tax laws and financial regulations — helping them to manage their finances effectively, ensure compliance, and ultimately help get their tax returns filed on time.

However, a survey by TaxZap reveals that 58% of self-employed Brits are considering dumping their accountant, while 14% have already done so.

The biggest “ick” reported was high fees, cited by 26% of freelancers. This was followed by confusing forms (15%) and missed deadlines (14%).

Communication issues were also a significant concern, with 14% of respondents describing their accountant as a “terrible communicator”.

Aaron Hickey, CEO of TaxZap, comments: “Self-assessment season is stressful enough for the self-employed, and that’s before you throw in cryptic jargon, slow replies, and invoices that make your eyes water. 

“January is already bleak, no one needs the added thrill of waiting days for their accountant to respond while the deadline inches closer.”

Frustrated freelancers struggle as tax deadlines loom

HMRC has warned that 5.65 million people haven’t yet filed their returns, and TaxZap’s survey suggests that SMEs are left unsatisfied with the help they’re receiving from accountants.

50% of respondents cited time pressure as the biggest challenge for filing tax returns, followed by complex language, uncertainty about what to include, and costs. Plus, 10% of freelancers claim their accountant is “always late” when it comes to filing on time.

Hickey says that these problems have left freelancers being “made to feel out of their depth by accountants armed with nothing but unintelligible language and a raised eyebrow.

“The UK is full of entrepreneurs and freelancers of every age, who should be spending their time earning money, not wrestling with admin.”

Many businesses are still unprepared for MTD

Tax season is stressful enough for business owners and freelancers, but with Making Tax Digital (MTD) set to become mandatory from April 2026, the pressure is mounting even more.

In the last year, there’s been a reported lack of preparation around MTD, as nearly half of sole traders admit that they don’t know about it. And while 71% of small business owners are using accounting software or apps to manage their finances, the same proportion say they still rely on pen and paper or spreadsheets for certain tasks. 

Under MTD, businesses will be required to use a digital system to keep tax records, submit tax data, and make payments. Penalties can occur if these requirements aren’t met, including accuracy penalties if records or submissions are inaccurate and lead to underpaid tax.

For businesses that are considering cutting ties with their accountant, a top accounting software can simplify record-keeping, reduce errors, and help you stay on top of deadlines. This helps make tax management less stressful, and keeps you compliant with MTD rules.

Hickey adds: “Whether you’re a sole trader, landlord, freelancer or investor, tech-enabled tools can give you the confidence to manage your own taxes, saving time, money, and a fair bit of sanity.”

A thinktank has warned that the year ahead could see the collapse of so-called “zombie” companies that finally succumb to the bite of rising business costs after months of battling. However, it also argues that this leaves space for new small enterprises and startups to shine.  

As businesses brace for the changes announced in the Autumn Budget – and await the Workers’ Rights Bill becoming law, this outlook report suggests that for some ventures, this will be a very bad year. 

In fact, the Resolution Foundation argues that 2026 could be a “turning point” with firms that have suffered from years, if not decades, of sluggish growth finally disappearing. However, the analysts also give the optimistic view that they will be replaced by new ventures with a better chance of survival.

Zombie Apocalypse

The new year outlook report from the Resolution Foundation does not read as dramatically as the terminology suggests. It is the companies that have become “zombies” that the report suggests might not make it through the year; as opposed to healthy companies being attacked. 

Ruth Curtice, chief executive of the Resolution Foundation, writes in the report: “Our hunch is that the triple whammy of multi-year increases in interest rates, energy prices and the minimum wage is finally beginning to finish off some of the low-productivity ‘zombie’ firms that managed to stay afloat in the 2010s, and this is forcing a reallocation of employment across firms and sectors.”

For the many companies struggling at the moment, this may read as a death knell. However, while there is no breakdown of the size of ventures the thinktank is referring to, the authors point specifically at companies that have had no productivity for more than a decade.

They argue that “…Weak productivity growth is the main reason that incomes have risen so slowly since the financial crisis. A key driver of productivity growth is ‘creative destruction’, whereby newer and better firms, products or processes replace older, less-efficient, ones.”

Turbulent waters

However, the report also acknowledged that this coming year, in which this “apocalypse” will take place will be a transition year; and with that will come job losses and then a “reallocation” of roles. 

The team suggests that there were signs last year that 2026 could be pivotal. It points to the fact that “the share of jobs destroyed by firms that are closing increased to the highest level since 2011”, as did the number of firms becoming insolvent. Now, the data suggests that people are moving more between sectors as old jobs are cut and new roles are created. 

The thinktank had called for change in a report in 2023, in which it argued that “greater dynamism” was needed; and that the Government policy must “not only boost dynamism, but also cushion its impact”.

The report also suggests that the uptake of AI may have played a role, and will continue to do so even as the EU considers what its AI Act regulations will look like and how they will be enforced. 

With confidence low, the negatives of this report might cut; but the positive takeaway is that businesses that embrace change might have stormy waters to contend with for a while but there could be calmer sailing beyond. 

The UK’s largest business sentiment survey has revealed that confidence among businesses has continued to dip and that more than half are not expecting their turnover to increase in the next six months. This is the lowest level in three years. 

While pessimism among hospitality businesses has been voiced for months, if not years, this survey from The British Chambers of Commerce (BCC) reveals that low confidence is widespread. 

It also highlights that the tax burden is playing on many business owners’ minds as the decisions made for the Autumn Budget now start to become reality. 

Tanking confidence

The Quarterly Economic Survey from the BCC was carried out before and after the Budget, with the fieldwork conducted between 10 November and 8 December. It gathered responses from more than 4600 businesses across the UK, and of these, 91% were SMEs.

When asked about projected turnover, less than half were optimistic, and nearly a quarter (24%) said that they expect a decrease, which is up from 21% in Q3. This has had an impact on business plans, with only 19% having increased investment in Q4 while 27% have scaled back plans.  

What this translates to is likely price hikes for customers. More than half of respondents (52%) are expecting to raise their prices in the next three months, which is up significantly from the previous quarter, which sat at 44%. 

A further 45% of respondents say their prices will probably remain the same in the early part of 2026, but a mere 3% are expecting to cut prices. 

Retail and hospitality sectors struggling

When the results were broken down into sectors, retail and hospitality businesses stood out, but for all of the wrong reasons. They continue to be the sectors suffering the most. 

More than a third (38%) of hospitality firms expect their turnover to decrease in the next 12 months, and 33% of retailers. However, 33% of those working in hospitality were optimistic of an increase, and, in a positive spin, 36% of retailers expect increased turnover.

However, respondents shared that labour costs continue to be a concern, especially in the hospitality sector, where 82% of respondents pointed straight at it as an issue. This is compared to 80% in manufacturing, which was a close second. 

Hospitality also reported the lowest increased domestic sales at 22%, as compared to 29% overall. 

Tax remains a concern

A clear message from the survey is that business owners are concerned that their tax burden is going to impact their outcomes. It was cited by 63% of firms, which is up from 59% in Q3. 

Interestingly, though, concerns fell from before to after the Budget announcement, suggesting that businesses were preparing for a worse situation than prevailed. Before the Chancellor’s statement, 68% of businesses said tax was a concern, but this fell to 61% after the Budget was announced.

However, inflation still remains a massive issu,e and this, coupled with rising costs, means that businesses are nervous of investment. “Over a quarter (27%) of businesses say they have cut back on investment plans, while 53% say they have remained unchanged, and just 19% of firms increased their plans,” share the researchers.

David Bharier, Head of Research at the British Chambers of Commerce, says that the results suggest “more clouds have gathered over business confidence” and he added that “the outlook for SMEs in 2026 is unsettled”.

While the Budget is now set in stone, businesses remain fearful and uncertainty reigns. Businesses need action – whether relief or investment. As Bharier says: “It is now critical that 2026 is a year of delivery. The Government needs to turn last year’s strategies into action; boost investment, significantly expand trade, and ease the myriad burdens facing businesses. Only then will the economic outlook shift from its current low-growth trajectory.”

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Businesses that opt to put sustainable measures in place could apply for a share of a £2 million funding pot that the Government has launched to help businesses cut costs and do their bit for the environment at the same time. 

The funding will be given to SMEs to help them lower their bills and become more energy efficient through investment in heating, insulation and solar power technology.

The funding will come through the ‘Made Smarter Adoption Programme’, which is a wider Government plan to push technology, largely digital uptake, especially among SMEs. 

Clear return on investment

The funding boost comes off the back of The Willow Review, an independent though Government-backed review, which aimed to underline the financial benefits of sustainability for small businesses across the UK.

Published last year, it reported that 67% of SMEs who adopted sustainable practices, including installing solar panels or selling energy back to the grid, reported reduced operational costs. 

It made recommendations both for the Government and businesses, with the focus on “…developing long-term consistency and clarity around policy and regulation as it impacts SMEs, ensuring that they can have confidence in their sustainability efforts.”

Government measures

This latest boost to funding was one suggestion, but the authors also pushed that access to finance in more general terms needed to be improved for both Governmental grants and also for initiatives from their private sector. 

The report also encouraged the Government to “assign sustainability champions at the council level to provide tailored support to SMEs, linking to local funding” and made people more aware of resources, including the existing UK Business Climate Hub.

However, the report suggested that a key measure should be the “reframing” of sustainability messaging. “Focus on growth, competitiveness, and profitability rather than compliance to better engage SMEs,” the authors wrote. In a time when SMEs are concerned about what many argue is an increased administrative load, this is sage advice. 

Why the focus on SMEs?

The Government response to the report – and the fact that it was commissioned at all – shows that there is a focus on encouraging SMEs towards sustainability. The Government wrote: “There’s a common misconception that sustainability is the preserve of corporate giants, because they’ve got the time, people and resources to commit to such efforts.”

It added that this review has shown that “…it’s small businesses – the backbone of our economy – who stand to benefit the most from investing in sustainability.”

The report gave seven main suggestions for SMEs, including switching to sustainable materials in production; minimising their waste; reducing travel and optimising logistics; as well as joining mentoring programmes and networks that could help their efforts. 

It also added prioritising sustainability could help businesses attract new customers, so it could be good for growth. The report data revealed that 35% of the businesses interviewed had seen an increase in customer loyalty, while 53% reported they had won new customers. 

Implementation in difficult times

The Willow Report is obviously ambitious in its recommendations. The Government response acknowledged that SMEs are facing some huge challenges at the moment, including high energy prices; inflationary pressures and “constrained access to finance”. 

Many businesses will already be taking action to reduce their energy bills, and this number might go up when the proposed business rate hikes come into being. Confidence, especially in the hospitality sector, is low, and so a move towards sustainability might be a low priority for businesses struggling to survive, despite promised benefits. 

The Government writes: “While the benefits are real, the journey to realise them is not always simple. We are committed to supporting SMEs through this complex transition, recognising that there are multiple opportunities for growth and reducing energy bills as well as potential risks and associated costs.”

What business owners will be looking for are quick financial wins and the prospect of a long-term impact that will help in these tough times. As a Federation of Small Businesses report revealed, only 26% of small firms “feel they have the appropriate knowledge to transition to net zero”, and just 14% believe they have the necessary time. 

While many businesses no doubt have sustainability ambitions, they will need financial and business support to achieve them. 

A new year brings new opportunities, and for small businesses, that means new social media trends to jump on.

With 2025 wrapped up, the beginning of a brand new year is a prime time for businesses to boost their social media marketing and set the stage for growth, engagement, and brand awareness in 2026.

We’ve been keeping our eye on social media, and have found seven popular trends suitable for small businesses to get involved with in January 2026. From looking back over 2025 to looking forward to summer, kickstart your new year’s social media presence with these posts.

Trends may come and go, but your content can stay ahead. With our TikTok for Business guide, you’ll get everything you need to plan, create, and fine-tune posts that connect with your audience.