UK small businesses are being subject to penalties after making mistakes in payroll runs, new research has found. The data suggests evermore complex tax regulations are turning payroll compliance into a considerable risk for SMEs.

In a survey of 1,000 small business leaders, carried out by payroll software Employment Hero, 84% said they have made payroll errors, inadvertently impacting employees.

It’s potentially, also, hurting cash flow. Nearly half (40%) of this group have incurred penalties due to payroll issues, with more than a third having faced significant fines amounting to thousands of pounds.

In part, the issue is due to a wealth of employer costs introduced this April. Employment Hero UK Managing Director Kevin Fitzgerald comments: “With the rising National Minimum Wage, increased National Insurance Contributions, and tougher enforcement of employment law, there’s never been a more complicated time to be a small employer.”

Payroll errors are widespread

According to Employment Hero, over half of small business leaders surveyed reported making payroll errors more than once. The most common errors committed were:

• Calculating wages incorrectly (48%)
• Late/missing payments (38%)
• Calculating correct hours (36%)
• Incorrect tax calculations (27%)

Within Human Resources (HR), any mistakes that can impact a person’s financial wellbeing or livelihood must be taken seriously. Repeat payroll errors can erode trust among employees, leading to demotivation and a decline in productivity.

The supermarket giant, Asda found out firsthand what the fallout can be from a payroll blunder. Last March, an IT glitch resulted in nearly 10,000 workers receiving incorrect pay, leaving thousands either missing two weeks’ wages or reimbursing the company.

Asda employees then participated in a 48-hour strike in May following what they described as a “litany of workplace issues”.

Payroll expertise top concern for SMEs

Part of the issue is that many SMEs are still relying on outdated processes to manage their payroll. Manual processing is common, with Employment Hero finding that 31% still rely on spreadsheets to calculate wages (44% among those with fewer than 20 employees).

HMRC has introduced various initiatives to try and digitalise the tax process for SMEs, as part of its Transformation Roadmap. They include a new online Pay As You Earn (PAYE) service, for 30 million taxpayers to check and update their income, reliefs, and expenses.

However, last August, it was forced to delay plans to require employers to provide more detailed employee hours data via RTI payroll software until at least April 2026, amid concerns from employers they would not have time to implement the change.

As reporting requirements evolve, 70% of SMEs say they are worried about keeping up with payroll technology, reports Employment Hero. 38% say they are also held back by limited expertise, while 36% say they don’t have time to manage the process properly.

The answer for many is to outsource payroll to a third-party provider. However, the cost of payroll outsourcing can quickly climb as the business grows and takes on more staff.

Employment Hero found that small businesses are spending an average of £2,724 a month to outsource payroll – ranging from £1,625 among smaller SMEs to £3,408 for larger ones.

Employment Hero launches free payroll

With payroll outsourcing costs growing, and tax obligations becoming more complicated, many small businesses are turning to HMRC-approved payroll systems to manage staff payments.

As a DIY alternative, payroll software allows companies to stay compliant and reduce costs by managing payroll in-house rather than paying third-party fees. Some brands even often free payroll tiers to help firms get their foot on the payroll ladder.

Employment Hero has announced it will begin offering free payroll software to all UK businesses. As part of this commitment, the company has also launched a new competition offering £5,000 and a one-on-one payroll consultation. Businesses that sign up to the new, free plan before 31 October 2025 will be automatically entered into the draw.

Fitzgerald adds: “Payroll has become a compliance minefield. SMEs are trying to do the right thing, but outdated systems and limited resources are costing them dearly.

“No small business should face fines just for lacking the right tools – and that’s why we’re making payroll free. It’s too fundamental to get wrong. If we want SMEs to power growth and employment, we need to level the playing field – starting with payroll.”

Even the thought of Christmas feels a long way off for many people, but for retailers and ecommerce businesses, the best time to start planning for the holiday season is now.

While Christmas Creep (the trend of holiday and marketing promotions starting earlier each year) might get some eye-rolls from consumers, it’s actually a big opportunity for businesses to capture early-bird shoppers and take advantage of the upcoming season.

That’s why savvy online sellers should already be thinking about what products to stock, as well as how to meet demand, avoid supply chain delays, and stay ahead of the competition.

Why is Christmas coming early this year?

Seeing Christmas-related products before December isn’t new. For shoppers, it can feel as though Christmas Creep comes earlier every year.

However, there’s a good reason for it. With how hectic the season can be, businesses want to avoid any disruption with suppliers. After all, according to Logistics Business, 13% of global business leaders reported “significantly delayed” shipments last December.

And, while many don’t want to think about it yet, it was reported that nearly half of UK consumers start Christmas shopping by early November. 

Another study by TGM research found that 29% of female shoppers start in October or earlier, while men are more likely to delay their shopping until mid-November or later.

Last month, supermarket chain ASDA hit the headlines for selling Christmas items in July. The company said the reason behind this decision was to help make the season more affordable for shoppers.

An ASDA spokesperson stated: “We know how important it is for our shoppers to be able to spread the cost of Christmas, and we start to see searches for Christmas products on Asda.com as early as August.”

‘Tis the season to start planning

Of course, online stores aren’t immune to the Christmas craze. Research by BRC found that year-to-date online spending increased by 4% in 2024, with older shoppers (aged 45-54 and 55+) leading the surge, with sales rising by 56% and 59%, respectively.

Additionally, the rise in Buy Now, Pay Later (BNPL) schemes — such as Klarna and Clearpay — saw online sales surge by 15% last year, suggesting that many shoppers are deliberately starting early to spread the cost of their Christmas shop.

To answer this growing demand, online businesses need to start early to plan for increased traffic, higher order volumes, and customer service demands.

That could even include switching platforms. Unsurprisingly, social commerce has made a significant impact on seasonal shopping. TikTok, in particular, has become the go-to platform for social media shopping, having reported record-breaking Christmas sales in 2024. 

Four ways to prep your store for Christmas

Between managing stock, juggling promotions, and updating your website, setting up your online store for the holidays can be a serious headache. But getting ahead now can save you a ton of stress when the festive chaos really kicks in.

First is the obvious. Stock up on the essential products early, as you won’t have to deal with any delays or increased shipping costs during the peak season. Make sure your products also meet customer needs and trends from the year as well.

Next, think about your marketing strategy and how you’re going to promote your business and products during the festive season. Consider channels like email or social media, as well as paid ads, influencer partnerships, and even search engine optimisation (SEO) tweaks to capture the holiday search traffic.

Once you’ve got this figured out, you should look into updating your returns policy. It’s common practice for UK retailers to extend their policies over the Christmas period, and with 18% of small business orders returned post-holidays, this can help boost customer trust, reduce complaints, and give shoppers more confidence when shopping with you.

Your business website shouldn’t be left out either, as you’ll need to optimise it with content tailored to attract customers searching for holiday gifts and deals. This means preparing product descriptions, festive visuals, or dedicated gift guide pages.

While it might be a little early to think about your own seasonal shopping, it’s the perfect time to get your store ready for the busy period ahead. Not only will it ease the stress of the chaotic festivities, but it may even get you into the Christmas spirit, too.

Across social media, a new kind of unboxing video is gaining traction. Smiling customers reaching into paper bags filled with surplus sandwiches, pastries and pretzels, picked up not from the post office, but from their local café. And often, at a fraction of the usual price.

These viral clips highlight a growing trend: the use of zero-waste food apps. Among the best-known is Too Good To Go, which describes itself as the world’s largest marketplace for surplus food. The platform partners with high-street names such as Greggs and M&S.

Independent cafés, bakeries, and restaurants are also turning to these platforms — not only to reduce food waste, but to attract new audiences. So how do these apps work? And how much can consumers — and businesses — expect to save?

What is Too Good To Go and how does it work?

Food waste is a big issue for hospitality. According to Waste Managed, the food service sector generates around 920,000 tonnes of food waste annually. 

In recent years, plenty of zero waste food apps have cropped up on the marketplace, like Olio and Karma, aiming to provide the solution to the problem. Easily the best-known is Too Good To Go, which now has 15 million registered users in the UK.

The app works by allowing businesses to offer customers “surprise bags” of unsold items at one third of the contents’ original retail price. 

Companies can sign up by creating an account through the app. You’ll then add your default typical supply, which you can adjust throughout the day depending on your leftovers. Users then order a surprise bag, which the business sets aside until the user is ready to collect.

In 2025, Too Good To Go says that 42,000 UK organisations are now active on its platform. 

It may be a good time to join them. By March 2027, all UK firms will need to comply with new “Simpler Recycling” rules. The guidelines aim to ensure that all commercial waste is properly produced, stored, transported and disposed of without harming the environment. 

How much does it cost for businesses?

For businesses, part of the allure of zero-waste food apps is the ability to profit from stock that would otherwise have gone in the bin. Even with goods being sold at a third of the price, most struggling cafes and market stalls would agree that any sale is better than no sale.

However, it’s worth noting that these platforms are not entirely free to use. Take Too Good To Go as an example. It’s free to sign up, but after the first three months, businesses are charged a flat annual fee of £46.80 (including VAT).

You’ll also be charged a commission on every sale. For surprise bags under £4.40, Too Good To Go takes a fixed fee of £1.09 (plus VAT). For those over £4.40, the fee increases to 25% (plus VAT) of the price per bag sold.

You’ll also only receive payment on a quarterly basis, which is something to be aware of when you’re planning your cash flow forecast.

Free food, free marketing

Fees aside, for many organisations, the main benefit to zero-waste food apps won’t actually be about clearing your pastries before they go off. It’s also a way to get your business on the app map, and attract new customers from the platform’s user base.

Users download the app and browse eateries near them, building brand awareness. This could also lead to full-priced sales, as there’s the opportunity to upsell other products when the user comes in to collect their surprise bag.

According to a user survey conducted by Too Good To Go, 76% of surplus food shoppers then return as regulars; making it an unlikely customer retention strategy. 

And of course, there are also benefits for your brand reputation. Environmental awareness is growing among consumers. In one 2023 study by WRAP England, 63% of UK diners said they were concerned about wasting food when they were eating out. 

Demonstrating that your company is taking clear steps to reduce its carbon emissions will make it clear that you are practicing your company values, not just professing them.

Proposed laws around outdoor dining could provide a lifeline for struggling pubs, bars, and restaurant businesses in the UK.

Last month, the Government proposed its National Licensing Policy Framework, which would protect hospitality venues from noise complaints. Specifically, developers who wish to build new properties near existing venues could be held responsible for soundproofing.

The reforms come after it was reported that the UK’s nightlife is dying out. Labour says this is to bring “vibrancy” to struggling towns across the country in the hopes of reviving local nightlife and supporting the long-term survival of hospitality businesses.

What are the current rules around noise?

Currently, under the UK’s Environmental Protection Act 1990, local councils are required to investigate complaints that fall under being a “statutory nuisance”, such as loud music from pubs or revellers leaving a nightclub at closing time. 

Generally, businesses in the UK must stop creating loud noise between 11pm and 7am. If they do not, this is known as a statutory nuisance, and councils are obligated to investigate in response to complaints. 

If firms do not comply with a written or verbal warning, the council may remove noise-making equipment, such as loudspeakers, or issue a Fixed Penalty Notice (FPN) of up to £500, which must be paid within 14 days. 

It is also an offence to use loudspeakers for any purpose in the street at night between 9pm-8am, unless the council gives express permission.

Proposed changes could protect pubs from noise complaints

Rules around noise are there so that venues remain mindful of residents at certain times. However, noise complaints can make it harder for hospitality businesses to operate as they risk fines, licensing problems, and reputational issues simply for existing near residents.

In a bid to revamp the UK’s hospitality industry and nightlife scene, the Department for Business and Trade (DBT) said it will incorporate the Agent of Change principle into the proposed National Licensing Policy Framework.

Under this principle, developers of new buildings would be responsible for soundproofing their properties that are constructed near existing pubs, clubs or music venues.

The framework would also simplify the transformation of empty retail spaces into hospitality venues. It would do this by creating designated “hospitality zones”, where approvals for alfresco dining, street events, and longer opening hours will be fast-tracked.

“Pubs and bars are at the heart of British life,” Chancellor Rachel Reeves told The BBC. “For too long, they’ve been stifled by clunky, outdated rules. We’re binning them, to protect pavement pints, alfresco dining and street parties – not just for summer, but all year round.”

Is it enough to aid hospitality businesses?

These proposed challenges could offer much-needed relief to the UK’s pub industry, which has been struggling for some time now.

Emma McClarking, CEO of The British Beer and Pub Association, told Hospitality & Catering News: “We’ve been clear about what’s needed to help us drive the economy, so the fact that the Government are acting on our, and the sector’s, recommendations to cut licensing red tap and improve processes are good first steps.” 

The British Beer and Pub Association predicts that 378 pubs will close across England, Scotland, and Wales this year. And it isn’t just independent businesses that are struggling. Multinational brewery BrewDog recently announced plans to close 10 of its bars across the UK, including its flagship venue in Aberdeen.

But while these new changes could offer a helping hand in times of crisis, Whitehall cannot ignore the much bigger impact its other policies have had on hospitality. Increases in National Insurance Contributions (NICs) have left businesses facing an additional £1bn in costs, plus £1.9bn in wage costs due to the higher National Minimum Wage.

Moreover, new regulations for the Skilled Worker Visa have added to hospitality’s woes by making it harder to hire chefs, bar managers, and bakers.

The BBC also reported on criticisms from Andrew Griffitth, the shadow business secretary, who said that Labour is “crippling the hospitality industry by doubling business rates, imposing a Jobs Tax and a full-on strangulation of employment red tape”.

He added: “Though any cutting of red tape for hospitality businesses is welcome, this is pure hypocrisy and inconsistency from Labour.”

HM Revenue and Customs (HMRC) has announced that the threshold for filing a Self-Assessment tax return will rise from £1,000 to £3,000 by the end of 2029.

Up to 300,000 freelancers and side hustlers could be freed from the paperwork of filing a tax return. It sounds like a win. But, as with all things tax-related, it’s not that simple. 

If you earn more than £1,000 from self-employment, you’ll still need to report that income and potentially pay tax on it. Feeling a bit lost? You’re not the only one.

In this article, we’ll break down what the new threshold really means for self-employed earners and what you need to do to stay compliant.

What’s the self-assessment threshold, and why is it changing?

All self-employed people need to file a Self-Assessment tax return. This is the method of paying tax when you make an income from your own business, freelancing, or side hustles.

While those in regular employment will be automatically taxed on their wages, self-employed professionals are not. This means they need to fill out a form for HMRC detailing their income and expenses over the whole tax year to work out what they owe. 

As part of a wider overhaul of HMRC, tax minister James Murray announced plans to increase the Income Tax Self Assessment (ITSA) reporting threshold for income, from £1,000 to £3,000 by the end of 2029.

Around 300,000 taxpayers will be affected by these changes. An estimated 90,000 individuals will have no tax to pay, therefore free from reporting their trading income to HMRC. 

If you earn between £1,000 and £3,000, you must still declare your income and pay tax, but you won’t have to fill in the full self-assessment form. Instead, you’ll pay any tax owed through a ‘simplified online service’, part of the government’s efforts to create a more efficient system for HMRC.

Before the panic sets in about getting to grips with a new digital system, remember that these changes won’t happen overnight. The target is currently set for the end of 2029. 

What about the £1k trading allowance?

The £1,000 trading allowance allows self-employed people to earn up to that amount tax-free, without needing to report it. This typically covers things like selling clothes on Vinted or eBay, or making a bit of extra money from dog walking, babysitting, or other small side jobs.

The upcoming increase to the self-assessment filing threshold (to £3,000) won’t change this allowance. You still don’t have to pay tax on your first £1,000 of income. But if you earn between £1,000 and £3,000, you’ll now need to report it and pay tax if it applies.

While these updates are meant to simplify things, having two different thresholds might actually lead to some confusion, especially for side hustlers. To avoid surprises, it’s a good idea to keep track of your earnings with reliable accounting software so you’re clear on what you owe (or don’t) come tax season.

What is HMRC’s Transformation Roadmap?

These changes are part of HMRC’s bigger plan to modernise the UK tax system by 2030, laid out in what’s called the Transformation Roadmap. 

This includes over 50 projects aimed at making things simpler, especially for SME owners and side hustlers, by bringing more services online and cutting back on admin. 

But, while digitalisation should make the process smoother in the long run, there may be a bit of a learning curve at first.

The government expects the new rules will mean around 300,000 people no longer need to file a tax return. That’s a lot of time saved on paperwork that can be better spent elsewhere, and it supports the wider goal of boosting economic growth in the Plan for Change.

While the simplified system sounds like a step in the right direction, we’re still waiting on the finer details, and the changes won’t be happening overnight. In the meantime, if you’re running a side hustle, it’s worth keeping an eye out for further updates from HMRC.

TikTok has come a long way from its lip-syncing roots. In 2025, it’s considered a powerhouse for ecommerce, as TikTok Shop has become a go-to platform for online sellers to market products while building connections with their audience.

The app recently released a Shopping Report, which lists the top-selling products this year, as well as which trends are influencing consumer trends.

Since TikTok is closely tied to user engagement and its live feedback loop, trends rapidly influence which products catch on. Staying tuned into these cultural shifts is essential to stay competitive, especially for those in dropshipping or seasonal product niches. 

What’s been the top-selling products on TikTok this year?

TikTok’s Shopping Report has announced that the top categories for shopping on its platform in 2025 are Beauty & Wellness, Home & Kitchen, and Food & Drink

Within Beauty & Wellness, empowered consumers are taking self-care into their own hands, with products such as lip stains, lash serums, and hair oils falling into favour for their low-maintenance, yet long-lasting effects.

TikTok announces that #SkinBarrier was the number one trend this year. Also known as the stratum corneum, the skin barrier is the outermost layer of your skin and acts as a protective shield. Its popularity highlights that skincare has gone beyond the surface, with customers seeking results-driven products, due to a growing awareness of skin science.

In Home & Kitchen, consumers are flocking to purchase household products that make their lives easier. While the desire to simplify household tasks is hardly new, 2025’s bestsellers, including cordless blenders and steam mops, reflect a consumer preference for gadgets that deliver efficiency with little effort.

And when it comes to Food & Drink, 2025 is shaping up to be the year of #HighProtein. While plant-based diets dominated in recent years, it seems the pendulum has swung in the other direction, with high-protein choices being prioritised by Brits. 

Why nostalgia is driving up TikTok product sales in 2025

We can’t discuss this year’s bestsellers without mentioning POP MART’s The Monsters Vinyl Toys, AKA Labubus. The vinyl toys have dominated TikTok in recent weeks, with 1.1bn video views on Labubu-related content driving an astounding 819% increase in orders. 

The trend is thought to have originated with K-Pop star Lisa, from Blackpink, who posted a photo of herself on social media with one of the toys. The cult of celebrity isn’t the only determining factor in virality, however. In 2025, nostalgia also has a major role.

The much-awaited Oasis reunion has spurred a resurgence of 90s Britpop fashion. The Adidas X Oasis collection saw fans flocking to Wembley Stadium in three-stripe uniforms, while sales of bucket hats on TikTok peaked in July ahead of the tour. 

The Gallaghers weren’t the only major comeback of 2025, with Pitbull also setting out on a world tour. According to the TikTok report, Mr. Worldwide’s popularity drove a 420% increase in costume sales, and even bald caps, as footage from his shows attracted 42M views.

Another example of both nostalgia and celebrity influence is Kendrick Lamar’s sporting 90s-style flared jeans at the Super Bowl. The rapper’s choice of denim captivated TikTok audiences, as they were one of the top fashion searches on the platform this year.

It’s clear that while sales are happening on TikTok, these trends often begin offline, sparked by celebrities, music events, or nostalgic throwbacks. Sellers clearly need to stay attuned to real-world culture to catch onto the next big trend.

TikTok’s impact on ecommerce in 2025

The rise of social commerce has completely reshaped how consumers discover, engage with, and purchase products. Marketing is no longer a one-way activity, but a collaborative, ongoing conversation involving real-time user engagement.

That’s how TikTok has come to define a new era for ecommerce. Statistics confirm this, NielsenIQ research found that TikTok Shop was the fastest-growing online retailer in 2024, with a 131% annual increase in the number of shoppers using the platform.

As of April, TikTok hosts 1.5 million UK-based firms selling through the app, or roughly 27% of businesses. This is partly thanks to TikTok Shop’s unique features, like the Top Products page for real-time sales insights, and TikTok LIVE streaming to sell to audiences in real-time.

Success on TikTok comes from understanding what drives culture on the app. The brands that go viral are often the ones that are culturally in tune, move fast, and create content that resonates with their communities.

Small business sales are slowing. Between April and June, sales growth was only 2.3% year-on-year, new data from Xero shows. That’s less than half the pace seen earlier in 2025.

Retail and hospitality are two of the hardest hit sectors. Hospitality has experienced particularly weak growth of just 1.5% year-on-year, as consumer spending shifts towards arts and recreational activities during the summer months.

The statistics have been released just as the government launched its new Small Business Plan, which could bring some relief to suffering pubs, bars, and restaurants. The package includes a £4 billion finance package and reforms to address the late payment crisis.

Sales are slowing — and hospitality is feeling it first

The study from accounting software Xero found that sales growth within the small business sector has seen a marked slow down in the last few months, as hiked inflation continues to limit consumer spending.

Hospitality has seen a particularly dramatic slowdown, with sales growing only 1.5% year-on-year, only slightly better than retail at -0.6%. In response, hospitality owners are having to raise prices and streamline workforces to keep their businesses afloat.

The past couple of years have seen the sector fight an uphill battle. From struggling to bounce back from the pandemic, to surviving staff shortages and surging costs, it’s clear that the sector is under immense strain.

And it’s not just the smaller organisations that are feeling the pinch. Major brewery chain BrewDog announced plans to close ten bars, while Greene King’s boss called for reform to business rates, illustrating that even big names are struggling in the current conditions.

Xero reports that the arts and recreation sectors have seen more growth, with a 3.4% increase year-on-year. This implies that consumers are prioritising spending on leisure activities over dining out, reflecting a broader shift towards the “experience economy”.

Government steps in with Small Business Plan

Last week, the UK government launched its bold Small Business Strategy to support struggling sectors like hospitality by tackling issues such as improving access to finance.

A headlining move of the strategy is a £4bn finance package, £3bn of which will be awarded to the ENABLE programme, a funding scheme delivered by the British Business Bank that provides guarantees to those lending to SMEs.

The government also plans to introduce the “toughest laws in the G7” when it comes to late payments. Delayed invoices from corporate clients and event organisers can create a domino effect leaving bars, restaurants, and other hospitality venues unable to pay staff, suppliers, and essential bills on time.

Without the financial reserves or leverage to absorb such delays, some are turning to short-term loans or overdrafts to cover the gaps, raising their costs at a time when margins are already under strain.

The reforms will be led by the new Small Business Commissioner (SBC), Emma Jones CBE. Jones will gain new powers to enforce 30-day invoice verification and carry out spot checks to ensure businesses are paid on time, helping firms to achieve healthier cash flow.

What can hospitality owners do next?

Kate Hayward, Xero UK’s Managing Director, commented on the data: “Small firms are definitely feeling the heat at the moment in more ways than one, and Q2 was no different.

“Consumers appeared even more cautious with their spending when interest rate cuts should be easing that pressure. We need to see that translate into stronger demand, as many businesses continue to face a tough operating environment.”

The Small Business Plan brings plenty of promise for bars, pubs, and restaurants with stricter rules on payment terms and new powers of enforcement.

However, for hospitality, one major cause for the significant financial strain still needs addressing. In April, employer National Insurance Contributions were raised to 15.0%.

One third of UK business owners are already planning to make job cuts due to the impact, while 24% agree the increase should be rolled back.

If you’re a hospitality business struggling with slowed down sales, you can explore other funding options available in our Small Business Grants guide.

The UK’s new Small Business Commissioner, Emma Jones CBE will be given new powers to penalise firms who pay suppliers late as part of the newly-unveiled Small Business Plan.

The Office of the Small Business Commissioner (OSBC) was originally set up in 2016 to tackle the issue of late and unfair payments for SMEs, and its impact on cash flow. Under the new plans, persistent offenders could face fines worth potentially millions of pounds.

The business secretary, Jonathan Reynolds, will formally announce the Plan this afternoon. As well as the new measures, the OSBC will also release research which shows business owners spend an average of 86 hours chasing debt each year.

Speaking exclusively to Startups, Jones commented: “Today is a day that celebrates the incredible role small businesses play in the economy. The Plan is a public commitment to continued work to ensure you have the conditions in place for business to flourish.”

Late payments closing 38 businesses a day

Slow payments from larger firms have been increasingly impacting SME cash flow, research shows. On average, small businesses are now reportedly owed £21,000 in unpaid invoices. 

The issue is driving many into debt. Last week, data showed that 32% of small companies have considered taking out a loan to make up for lost income. Government data estimates it shutters 38 businesses a day, and costs the economy roughly £11bn a year.

As well as the ability to fine bad actors, the Small Business Commissioner will also be able to force customers to pay their supplier within 30 days of receiving a valid invoice, unless otherwise agreed, with spot checks to help identify breaches. The Small Business Plan will also give billed firms a maximum of 60 days to settle up, reducing to 45 days in future.

In a statement, the Prime Minister said that “too many hardworking people are being forced to spend precious hours chasing payments” as part of an “exhausting” process.

“Through [the plan], we’re not only tackling the scourge of late payments once and for all, but we’re giving small business owners the backing and stability they need for their business to thrive, driving growth across the country through our plan for change,” he added.

Plans to boost SME funding

Alongside the late payment crackdown, the Small Business Plan is also hoping to bolster balance sheets by improving access to finance for new businesses.

In the 2025 Startups 100 Index, launched this January, our top 10 startups reported they had raised an average of £25m each. This suggests that businesses need significant financial backing of ten-figure funding rounds, at least, to thrive in the current economic climate.

At the same time, SMEs are finding it harder to raise, particularly through debt finance. In March, figures from UK Finance — the British trade association for banking and finance —  revealed a £7bn drop in net lending to SMEs last year.

Today, Reynolds has also announced £1bn in funding to deliver 69,000 government-backed StartUp Loans. Plus, a £3bn boost to the ENABLE programme, a funding scheme delivered by the British Business Bank that provides guarantees to those lending to SMEs.

Commenting on the news, Reynolds said the plan is aimed at “making it easier for businesses to set up shop and giving SMEs the financial backing they need.

“This is our Plan for Change in action, putting more money in people’s pockets, boosting local communities and ensuring Britain is a great place to do business and thrive.”

Summer’s here, but while it may be holiday season for some, for business professionals and entrepreneurs, August is a great time for networking. 

Even if you’re between working and spending time with the kids, due to the long school break, there are still plenty of networking opportunities at this time of year. 

Whether you’re looking to make new connections, explore potential collaborations or just get inspired, we’ve rounded up 63 free business events happening near you this August.

• KuKu Connect – relaxed, evening networking and complimentary hospitality at Cubo Nottingham (13th August at 6:00pm): hosted in partnership with the Federation of Small Businesses (FSB), this vibrant and professional networking event is all about bringing local business leaders, innovators and decision-makers together for an evening of open networking with no pitches or presentations involved. Complimentary drinks and hospitality are provided.
• Ready, Set & Pitch at Nottingham Central Library (28th August at 10:00am): an event where you can pitch your business to a panel of investors in a low-pressure, supportive environment. Alternatively, you can just come along to the networking event on its own, which starts in the morning.

Startup accelerators in the UK need clearer programme standards to more effectively support those starting a business, according to a report by a leading entrepreneurial think tank.

The report from The Entrepreneurs Network (TEN), named ‘Full Speed Ahead’, points out that the UK is now home to over 500 accelerator programmes. Since 2016, the UK’s national innovation agency, Innovate UK, has invested £219m in the programmes alone.

Despite the significant public funding for these schemes, though, TEN argues that “questions nonetheless persist about effectiveness, strategic alignment, and return on investment”.

Featuring interviews with industry experts and founders, the report recommends four reforms to enhance quality and help entrepreneurs navigate the support ecosystem.

“More transparency” needed in UK startup support

The UK is recognised as a hotbed for global entrepreneurship. One report estimates that we are now the world’s second-largest startup ecosystem in terms of funding, ahead of China. 

Partly, this is enabled by government support. Seed and pre-seed startups are supported through organisations like Innovate UK and TechUK, which deliver funding and know-how through incubators, accelerators, and support programmes. 

But, as the TEN report highlights, a lack of clear standards and shared definitions means that many of these initiatives are operating without clear metrics for success. This is making it difficult to identify and funnel resources towards the more effective schemes.

The network makes various critiques of the current system. These include: 

• Misclassified accelerators that provide little more than basic workshops
• Misaligned programmes that “shoehorn” specialist firms into generic curriculums
• An overfocus on superfast scale-ups, over companies aiming for sustainable growth
• London-centric distribution (nearly 60% of all accelerators are based in the capital)

Rather than empowering entrepreneurs, it warns that the current system is cycling founders through multiple support models, often without meaningful progress or access to investment. 

London hiding regional underperformance

The report also cites data from Beauhurst that only 57% of listed incubators or accelerators are actually active in the UK. One third have closed, and 10% are in a “state of limbo”.

In some regions, this figure is even higher. TEN analysis finds that in regions like Northern Ireland and Yorkshire and the Humber, over 50% of accelerator programmes have shut. 

In Scotland and the East of England, over one in five programmes are classed as ‘Amber’, meaning they might be listed as active, but no recent activity has been recorded.

Philip Salter, Founder of The Entrepreneurs Network, said: “The UK has plenty of startup support programmes, but we don’t always know if they actually work. Founders can’t even be sure these programmes will still exist before they finish.”

What does The Entrepreneurs Network report recommend?

According to The Entrepreneurs Network, the UK government must reform its startup support initiatives to better align offerings with founder needs. It makes four recommendations to do so:

1. Create a clear classification system for programmes and leadership, with defined minimum standards and outcome metrics

2. Reform impact measurement to focus on founder-centric metrics that track entrepreneurs’ ongoing journeys rather than just quick wins

3. Replace stop-start public funding cycles with 3-5-year contracts, and defund programmes that repeatedly fail to meet milestones

4. Launch a funding voucher scheme, piloted by Innovate UK and supported by a registry of accredited providers, to give founders control over spending

“We need reforms that make programme outcomes transparent and reward schemes that create lasting impact”, adds Salter.

Google apparently processes over 8.5 billion searches every day. But users who use the search engine today will see an unfamiliar tab labelled “AI Mode”. It’s a new smart search feature for the website, and it will likely have big repercussions for ecommerce businesses.

While Google traditionally serves users a list of links to websites, the new functionality will give searchers an answer written like human speech. The company says it will offer users the ability to “go deeper through follow-up questions and helpful links to the web”. But some experts are already warning that it could hit businesses that rely on search traffic.

Last August, the tech giant launched AI Overview (AIO), a new feature integrated into Google Search that produces AI-generated summaries of search results. According to one marketing agency, clicks decline by 15.49% when AIO appears on Google’s results page.

What is Google’s AI Mode?

In May this year, AI Mode was rolled out to the Google platform in the US. According to Google, the move was in response to the growing number of searchers who are inputting complex sentences as search results, rather than keywords.

The feature uses what Google calls a ‘query fan-out technique’. This essentially means it can break down a question into various keywords itself, and then carry out multiple searches at once to find an answer that combines multiple web sources. 

Google gives the example of “Things to do in Edinburgh this weekend with friends. We’re big foodies who like music but also chill vibes and exploring off the beaten track.”

The AI Mode is also multi-modal. Users can search Google using traditional text, but also via their microphone or camera. These features will be rolled out across the UK in the next few days, meaning the functionality will likely be available on your account or device soon.

How will it impact online stores?

In its announcement for the feature, Google said it was “focused on helping people access information and perspectives from a diverse range of sources”.

It argues that, by allowing users to make deeper searches upfront and avoid trawling through the Search Engine Page Results (SERPs), “clicks are higher quality for websites — meaning users are more likely to spend more time on the sites they visit.” 

That is an optimistic prediction. On the other page, some experts are already expressing concern that the rise in AI search features across search engines like Google is having a detrimental impact on online organisations and publishers.

This is because, as AI search features make SERP scrolling increasingly redundant, research shows that so-called “zero-click searches” (where users don’t click on any search results because they’ve been told the answer by an AIO) are on the rise.

Mark Kabana, VP of Data Innovation at digital presence platform Yext, warns that firms which aren’t reacting to the shift will likely see a huge drop in traffic. “Your brand risks becoming invisible to entire segments of your audience”, he says.

Earlier this week, data from the Pew Research Center in the US found that only 8% of users click a link on a page with AIOs, versus 15% on traditional search results. That’s a fall of nearly 50%, and it will likely have a big impact on sales and ad revenue for online firms.

How should online sellers respond?

Winning the SERPs has always been a bit of a never-ending race for organisations based online. Previously, businesses relied almost solely on Search Engine Optimisation (SEO) to beat the competition. But the proliferation of AI search has changed the game.

A new strategy termed Generative Engine Optimisation or GEO is set to overtake SEO this year as websites adapt to the changing face of search engines. 

GEO involves writing conversationally rather than keyword stuffing, to emulate customers’ natural phrasing. It also spotlights images, videos, and infographics, and uses something called schema markup to help AI search understand your content contextually. 

Data shows that, already, 40% of Brits are using AI search tools at least once a day. With the speed that new AI updates and tools are being introduced by technology companies, it’s paramount that sellers embrace GEO to futureproof their websites.

“As with any early-stage AI product, we won’t always get it right, but we are committed to continuous improvement”, said Google.

Recent data reveals that online businesses risk losing up to 5% of their web traffic due to poor accessibility. This means your ecommerce website may be unintentionally excluding disabled users, especially those relying on screen readers or keyboard navigation.

While likely unintentional, a poorly designed site can have serious consequences. Not only could it reduce the number of visitors who can easily navigate and engage with your content, impacting your sales, but there is also a risk it could land your business in legal trouble.

What makes an accessible website?

While online businesses may not need to install ramps or lifts to support disabled shoppers in accessing the premises, they’re not exempt from making accessibility considerations. But what does ‘accessibility’ mean in a digital context?

It essentially means that your website can be used by people with visual, cognitive, or motor impairments. And studies have recently shown that ecommerce sites aren’t doing enough. 

As many as 1 in 20 UK users are unable to properly access websites, amounting to as much as 5% in lost web traffic and conversions, as reported by Ecommerce News.

Is it illegal for a website to not be accessible?

A minefield of risks lies beneath every inaccessible website. First, poor accessibility often results in Google penalties, which can significantly harm your performance on search engines. Additionally, inefficient customer journeys, such as difficulties during navigation or checkout, can drive visitors away, leading to lost sales and abandoned carts.

Your brand’s reputation is also at risk; in today’s digital-first world, a poorly designed site can quickly become a negative talking point.

Most seriously, you could face legal trouble. The Equality Act 2010 applies just as much to online businesses as it does to brick-and-mortar businesses. This means online sellers can be held liable if their websites create “barriers” for shoppers with disabilities. 

Brands found guilty of accessibility violations may be subject to discrimination claims in civil courts, potentially resulting in unlimited fines due to the absence of caps on compensation. Mandatory injunctions to improve your site’s accessibility may also be enforced.

While legal action currently depends on actual user complaints, this is likely to change as enforcement amps up, particularly with evolving EU-linked legislation.

What are the most common accessibility mistakes on websites?

Common barriers on ecommerce sites include low-contrast text, unreadable colour combinations, missing alt text, and confusing navigation. 

Website builders like Shopify, Wix, and WooCommerce offer built-in tools for accessible design, but the responsibility is still with sellers to actively use them. 

It’s also crucial to remember that accessibility is mobile-first. Over 60% of ecommerce browsing happens on smartphones. 

And if your site has accessibility issues, this will be exacerbated on smaller screens. Therefore, it’s important to spend time optimising your site for all users. 

How to ensure your online store is accessible

To make your site more accessible, you can first run a free audit using a tool like Google Lighthouse. This will draw attention to any specific problem areas your site currently has.

If you’re using images, ensure that you also use descriptive alt text (in-line with Search Engine Optimisation recommendations) and that headings are clear and structured. This will help those using screen readers easily navigate your online store.

It’s also important to choose colours and fonts wisely. Stick to high-contrast colours so that the text can be clearly defined from the background, no red text on a green background, for example. And ensure you use readable fonts, so that visually impaired shoppers or those using screen readers can still navigate your site.

Lastly, examine your checkout process by using keyboard navigation only; this will flag any accessibility issues for people relying solely on keyboards.

For a comprehensive benchmark, refer to the Web Content Accessibility Guidelines (WCAG 2.1). Or, for a professional audit, you can also hire a web designer.

Remember, improving accessibility isn’t just about legal compliance. It leads to a better user experience, boosts SEO, and opens your store to a wider, more diverse customer base.

If you’re tired of getting complaints about your drink prices, you’re not alone. Bars, pubs, and clubs across the UK have been grappling with rising spirits costs since the major overhaul of the alcohol duty system in 2023, and it’s pushing prices higher than ever.

MPs are now calling for evidence from hospitality businesses about the impact of inflated costs on sales, profit margins, and menus for those in the night-time economy. 

If you operate a hospitality venue and would like your experiences to be heard in Parliament, we’ll explain what you need to know about the inquiry and how you can respond.

Why is a vodka coke so expensive?

Sitting at your average pub in the UK, you may hear disgruntled punters blame Brexit, the cost-of-living crisis, or greedy landlords for the inflated drinks prices. While these reasons may be valid, there’s a lesser-known cause that has a huge impact.

In 2023, the drinks industry faced the biggest increase in alcohol tax in nearly 50 years, with excise duty on spirits increasing by 10.1% under the Conservative government. As part of the 2024 Autumn Budget, Chancellor Rachel Reeves raised duty again by a further 3.65% in line with inflation.

Hospitality operators are now in need of a stiff one themselves. Margins on mixed drinks and premium spirits are shrinking, while higher prices send customers to cheaper alternatives. Pubs and bars have no choice but to rework menus or offer stripped-back offerings.

While beer and cider qualify for draught duty reliefs, this does not extend to spirits. As a result, there is a pricing disparity between pints and spirits. And although the UK is certainly a nation of pint-lovers, it’s nice to be able to enjoy a more refined beverage occasionally.

In the two years following these increases, the impact on the profitability of nightclubs and bars is clear. The British Beer and Pub Association (BBPA) estimated that 378 pubs were set to close their doors this year; that’s more than one per day. 

Rising drink prices may also be to blame for changes in customer behaviour, such as the growing trend of sober curiosity. Add that to increased business rates, staff shortages, and it’s a challenging environment, to say the least, for pubs, bars, and clubs to stay afloat.

What is the call for evidence—and why now?

The APPG (All-Party Parliamentary Group) for UK Spirits is inviting written submissions from hospitality businesses affected by the increases in spirits duty. 

It aims to explore the economic impact on producers, jobs, competitiveness throughout the sector, investment, innovation, exports, and comparison with other alcoholic beverage categories and international duty regimes. 

The call for evidence is open from 23 July until midnight on 22 August 2025, targeting pubs, bars, nightclubs, and suppliers in the lead-up to October’s Autumn Budget.

A summary report outlining the key findings and potential recommendations will be published in early September, and it will then be submitted to the Treasury to help shape the Government’s approach ahead of the Autumn Statement.

How to respond — and why your voice matters

Businesses of all sizes, big or small, are encouraged to respond and have their voice heard. If you run a pub, bar, or nightclub and have been affected by the increased duties on spirits, you can submit written evidence via APPG’s contact form.

Your evidence doesn’t need to be overly complex or lengthy. It can be a written statement, or even a spreadsheet with relevant data on the impact of the spirits tax on your business.

The APPG’s findings may influence future policy on alcoholic beverages, so this is a rare opportunity for smaller operators to have their say ahead of the next Budget.

As the hospitality crisis deepens, real-world insight from those on the ground in bars, pubs, and clubs is necessary if the industry is to recover.

As Alice Cooper famously sang, school’s out for summer. And, while the sun has taken a break for the time being, temperatures have remained warm enough for venturing outside — whether it’s park picnics, countryside walks, or a day by the seaside.

But despite the hot weather, online retail sales continue to trump the high street, offering a golden opportunity for dropshipping businesses to meet seasonal demand.

After crunching the search data and tracking the latest market trends, here are eight hot products from top dropshipping suppliers that are worth keeping an eye on in August.

Self-assessment season is in full swing, and many sole traders across the country are already prepping their returns for the January 31 2026 deadline. 

If filing your tax return gives you a headache just thinking about it, HMRC’s new digital tools and support services might come as a welcome relief.

As part of a wider push to transform the process, HMRC has launched a range of changes to improve the experience for over 12 million self-assessment customers.

What’s changing for self-assessment filers?

HMRC has announced various measures to improve customer experience. Some of the main changes are:

• Improving the digital Self Assessment registration and opt-out processes
• Introducing better on-screen messages to reassure customers and reduce the need for them to chase progress on enquiries
• Improving the late filing and late payment penalties online appeals process

The changes are part of HMRC’s Transformation Roadmap, which was published on July 21 2025. It outlines digital improvements, services and measures that will transform the UK’s tax and customs system by 2030, in line with the government’s 2020 tax strategy. 

James Murray, Exchequer Secretary to the Treasury, said, “The government is modernising the service that HMRC offers for British people and businesses. 

“Our new payment plans for Self Assessment will save people time and effort with their tax affairs and help them avoid making mistakes.”

A major goal of the Transformation Roadmap is to establish HMRC as a digital-first organisation, with 90% of customer interactions taking place online by 2030. Customers without digital access, and those in vulnerable situations or with complex tax situations, will continue to receive targeted support from HMRC.

The new features and enhancements will be provided at no cost to sole traders and businesses, with 12 million expected to file a self-assessment tax return this year. These changes are designed to ease administrative burdens and address common pain points. 

A Which? survey stated that self-assessment tax returns take a combined 19 million hours to complete, that’s around two and a half hours on average per person. One in five report that the process takes less than an hour, while for others, it can take a laborious five hours. 

Why the HMRC Transformation Roadmap matters for sole traders

HMRC’s digital overhaul will help sole traders manage tax more effectively by tackling key pain points. 

A common headache for freelancers is tracking income across multiple gigs and invoices. By switching to the popular HMRC app or using your online account, customers can easily track income, deadlines, and access AI-assisted help without having to contact HMRC directly. 

In addition, the app provides helpful deadline reminders to help sole traders avoid late payment fines and interest charges. While a record 11.5 million tax returns were filed by the deadline in 2024, an estimated 1.1 million customers missed the deadline. 

Filing or paying your tax return late can lead to an initial £100 fine, followed by daily penalties, additional charges of 5% or £300 at 6 and 12 months, and further 5% penalties on unpaid tax at 30 days, six months, and 12 months, plus interest.

Lastly, flexible payment plans can also be set up online, which will be a huge help to those wanting to spread the cost of tax payments to improve cash flow. 

As Making Tax Digital (MTD) continues to roll out, digital tax tools will be increasingly standard. As of April 6 2026, sole traders and landlords with a qualifying income of more than £20,000 must now file their self-assessment tax return digitally.

What should sole traders do now?

To stay ahead of the January tax return deadline, sole traders can take these quick steps:

• Download the HMRC app or log in to your online account to check your annual income summary
• If you’re concerned about making the deadline, set up a Time to Pay arrangement to spread the cost across instalments
• Use HMRC’s updated digital assistant or webchat for any last-minute questions

We’d recommend starting to budget for future tax bills in good time and signing up for HMRC email alerts to stay informed.

While overhauling processes often requires some adjustment, the shift to more digital tools means managing your tax as a sole trader will ultimately be faster, simpler, and less stressful in the long run.