Threat of tool theft grows for tradespeople – how to protect yourself

With tool theft in the UK now costing tens of millions each year, new data highlights why prevention is becoming critical for small businesses.

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Published on 3 February 2026

Tool theft has been described as an “economic assault” on the UK’s tradespeople.

The Express has reported that more than 25,500 tool thefts were reported across the UK in 2024, which equates to one theft every 21 minutes. And the stolen equipment is just the start.

For self-employed traders and small firms especially, the consequences of tool theft include cancelled jobs, downtime, disrupted cash flow, and, of course, the cost of replacement tools, totalling an estimated £56m. So how can tradespeople protect themselves against this worrying trend?

Why tradespeople are being targeted

The data suggests theft is becoming more organised and targeted. Nearly half of reported incidents are van-related, making vehicles the primary point of vulnerability.

According to The Express, thieves are increasingly tracking routes, identifying poorly lit parking areas, and striking when vans are fully loaded, particularly during the darker months, to avoid being spotted.

Tools are an increasingly popular target for thieves due to how easily they can be sold on. Online marketplaces, informal resale groups, and car boot sales offer thieves a platform to quickly convert stolen equipment into cash.

This means tool theft is not simply opportunistic, but part of a wider resale ecosystem that, unfortunately, makes targets of hardworking electricians, plumbers, and painters and decorators.

Practical steps businesses can take—beyond insurance

While insurance is an important safety net, it doesn’t protect against the added disruption of lost earnings.

In response, many tradespeople are opting for layered deterrence measures rather than relying on being reimbursed by insurance providers.

You can put off thieves by improving van security with visible deterrents such as dash cams and alarm systems, parking strategies that reduce exposure overnight, asset trackers affixed to tools, and tool marking or forensic ID systems that make resale harder.

It may also help to unload vans overnight or rotate storage locations to make working patterns less predictable for organised theft operations.

Keeping clear documentation is also important, including detailed inventories, serial numbers, and photographic records of tools, as this can speed up police reports and insurance claims while also making resale harder if tools are identifiable or marked as stolen.

What this means for UK small businesses

For tradespeople, tool theft is no longer an occasional inconvenience but a recurring reality.

With average losses now exceeding £2,000 per incident once downtime is accounted for (£1,565 in equipment and a further £623 in lost hours), proactive prevention is better than reactionary responses.

Treating tools and vehicles as critical business infrastructure and planning accordingly to deter thieves in the first place can help limit disruption to your livelihood.

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Alice Martin Business writer

With over six years of hands-on experience in the hospitality industry, ecommerce and retail operations (including designer furniture startups), Alice brings unique commercial insight to her reporting. Her expertise in business technology was further consolidated as a Senior Software Expert at consumer platform Expert Market and tech outlet Techopedia, where she specialised in reviewing SME solutions, POS systems, and B2B software. As a long-term freelancer and solopreneur, Alice knows firsthand the financial pressures and operational demands of being your own boss. She is now a key reporter at Startups.co.uk, focusing on the critical issues and technology shaping the UK entrepreneur community. Her work is trusted by founders seeking practical advice on growth, efficiency, and tech integration.

Free AI training offered to 10m workers – why SMEs should pay attention

Free AI training will soon be available to every adult in the UK, removing one of the biggest barriers for businesses adopting AI.

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Published on 3 February 2026

The government is backing an expansion of Skills England’s free AI training, a series of short, practical courses designed to help workers—including at least two million SME employees—to use AI effectively at work by 2030.

Despite the hype around AI, only a minority of SMEs currently actually use it, often due to a lack of AI skills, confidence, or time. AI adoption across the UK remains uneven, and small businesses might be missing out on the benefits it can offer.

This expansion aims to address this gap. Here’s what SMEs need to know about the programme, and how they can get involved.

What’s being offered — and who it’s for

Under the expanded programme, every adult in the UK is eligible to take free, online AI foundations training through the revamped AI Skills Hub. The goal is to reach 10 million workers by the end of 2030, which has the potential to transform the UK workforce’s relationship to AI and automation.

Government research shows that the main barrier to the adoption of AI is the widespread ethical concerns that come with it. But the second-biggest barrier is a huge AI skills gap. The free courses are intended to address this gap so that small businesses can access the time and money-saving benefits of automation.

In as little as 20 minutes, the courses guide users on drafting text, creating content, and automating routine admin tasks, which can offer tangible help in the workplace. Skills England has benchmarked the courses against its AI foundation standards, and completing the courses earns businesses a government-backed digital badge to mark the achievement.

The programme has already delivered over one million courses since last year, and is now being scaled with the support of major employers, public sector bodies, and business groups — including the NHS, Federation of Small Businesses, and British Chambers of Commerce.

Why this matters for small businesses

Ethical concerns aside, AI adoption is also a question of access.

Research cited alongside the government’s announcement shows that small firms, particularly microbusinesses, are 45% less likely to adopt AI than larger companies, largely due to limited in-house expertise. The programme is intended to grant everybody who wants it the opportunity to gain the necessary skills and knowledge to make the most of AI.

The training is designed to help businesses do more with less, unlocking productivity gains by freeing staff from repetitive tasks so that they can focus on more strategic, high-value work.

FSB Policy Chair Tina McKenzie said: “Small businesses want to make the most of AI, but just under half (46%) say they don’t yet have the skills or knowledge to use it well.”

“This ambitious partnership will help them – and their workforce – make the most of the new technology.”

What founders and employers should take from this

The programme marks a shift in approach: treating AI skills as basic workplace infrastructure rather than a specialist capability reserved for large firms and tech teams. As PwC UK’s CTO Umang Paw put it: “AI isn’t coming – it’s here, and it’s rewriting the rules of work.”

For small business owners, this creates a rare, low-risk opportunity to build baseline AI literacy across your teams at no cost. As the technology continues to evolve at breakneck speed, understanding how to use AI safely, ethically, and effectively is likely to become a competitive necessity rather than a nice-to-have.

Initiatives such as this are crucial to help smaller firms stay in step with larger competitors and reduce the risk of being left behind as AI becomes embedded in everyday work, so it’s important to make the most of it.

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Alice Martin Business writer

UK businesses get easier access to China – what does it mean for SMEs?

The UK and China have agreed a new partnership that could lower the barrier for smaller businesses entering one of the world’s biggest markets.

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Published on 3 February 2026

Last week, the government announced a newly-established partnership with China that will make it easier for British companies to sell services there. This follows repeated calls from UK business groups for clearer rules and better access to setting up links with China.

China holds a significant role in the international business landscape. It’s long been viewed as a high-growth—but equally high-friction—market for UK businesses. This friction is felt particularly by smaller firms without the budgets or local networks needed to succeed overseas.

The agreement also includes relaxed visa requirements for short-term trips, which will open doors and allow for more flexibility for UK citizens travelling to China on business.

What’s actually been agreed?

The main headline of the announcement is the new partnership agreed last week following the Prime Minister’s Beijing visit.

The agreement will support partnerships across sectors where the UK already has global prominence, such as professional services, financial services, legal, education, healthcare, and digital services. Both governments will collaborate on a feasibility study into a formal UK-China trade-in-services agreement, which could eventually introduce clearer, legally binding rules for British firms operating in China.

All of these negotiations are still in process. So for smaller businesses, the most immediately practical change will be the newly introduced visa-free travel for British citizens staying in China for less than 30 days. This alleviates a long-standing administrative burden for founders on business trips, making it easier to attend meetings and explore partnerships, which is an important stepping stone to full international expansion.

Business and Trade Secretary Peter Kyle said the partnership responds directly to ongoing requests from UK firms for “clearer rules, better market access, and practical support” to sell services into China.

Why this matters for UK small businesses

The UK is already the second-largest exporter of services to China, with £13bn worth of services sold by UK firms to China each year. Chinese demand is set to rise sharply over the next decade, particularly in expertise-based sectors such as business, financial, and digital services, in which many UK startups already have a strong presence.

For SMEs, the agreement also suggests the government is adopting a more pragmatic approach to helping businesses achieve international growth and supporting market access and finding local partners, areas where smaller firms can struggle most.

Since negotiations are still underway, this won’t be felt as an overnight change. Regulatory complexities and geopolitical risks, such as Trump’s tariffs, remain important considerations, meaning breaking into Chinese markets may still only be a realistic aim for particularly well-prepared SMEs rather than the average early-stage startup.

What should founders take from this?

For UK small businesses hoping to expand internationally, the announcement is a positive sign of the beginning of less friction with China, but it’s not a green light to rush in.

The relaxed visa rules will offer some immediate ease for those already exploring opportunities on the ground in China. And the potential for clearer regulation will hopefully lower some early-stage barriers, particularly for founders in business, financial, and digital services.

As HSBC Chair Brendan Nelson put it, a “strong and balanced economic and commercial relationship” can support growth and jobs, but only if access genuinely improves on the ground.

So for now, the deal signals unlocked opportunities, especially for more mature SMEs looking to expand beyond Europe and the US. It also reinforces the need for careful planning, local expertise, and a realistic risk assessment before exploring the Chinese market.

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Alice Martin Business writer

Catfish to go: is your local indie just a beard?

In his bi-monthly column, F&B expert Matt Harris serves up food for thought (with plenty of takeaways advice) from the inhospitable world of hospitality.

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Published on 3 February 2026

So major chains like Frankie & Benny’s, TGI Fridays, and Pizza Hut have all been accused of “masquerading” on delivery apps by launching virtual brands (think Stack & Bird or WingStreet) that look like those quirky local startups we all love to support.

In my mind, this is the ultimate in hospitality catfishing. These big boys are putting on a digital moustache and pretending they’re a ‘cool indie’ from down the road because they know customers are desperate to shop local for small batch quality, not mass-produced fare.

Here’s how the Moustache works…

Chains use host and ghost kitchens to create what look like standalone, boutique eateries. A TGI Fridays might appear on Deliveroo as “TGI Fridays,” but the same kitchen also operates “Conviction Chicken”.

To a customer scrolling, one is a global chain; the other looks like a family-run, local fried chicken joint with its artisanal logo, handwritten-style font and independent-sounding name.

By running 5-6 virtual brands from one kitchen, a chain can effectively take up 6 slots on a user’s “Nearby” feed, pushing genuine small businesses further down the page.

It’s not just sneaky; these Dinner Swindlers are a killer for the real family-run spots that can’t compete with a multinational’s marketing budget.

My advice? Independent venues can’t outspend a chain, but they can out-humanise them. Start using your physical presence as a weapon and play the Authenticity Card.

The “Street View” Audit: Ensure your Google Maps profile is updated with photos of your actual storefront. Chains can’t show a cosy high-street shopfront for a virtual brand.
Behind-the-Counter Content: Post videos of your real-life chefs prepping actual ingredients. No stock photos for you.
“Verified Local” Branding: Use your physical address prominently in your delivery app bio. Explicitly state: “Cooked in our family kitchen at 12 Genuine Street.”
The In-Bag Hook: Include a “Thank You” note in delivery bags explaining that you are a local independent. Offer a direct-order discount code for their next meal to bypass the apps.

Bottom line – if I put a ‘Grand Cru’ label on a bottle of supermarket plonk, I’d be sued for fraud. But in delivery, you can put a ‘Craft’ label on a factory-frozen patty and call it innovation. It’s a breach of the unwritten contract between a chef and a customer.

People pay a premium for ‘local’ because they think their money is staying in the community and they’re getting a hand-made product. When that ‘local’ burger is actually coming off a conveyor belt in a retail park, the whole industry loses its soul.

Matt Harris - Founder of Planet of the Grapes

Matt started his Food & Beverage journey aged 19 working at Thresher's in Brixton. With a WSET diploma in wine and spirits under his belt, he went on to establish wine merchants Planet of the Grapes in 2004. Now - at the ripe old age of 52 - Matt's empire includes multiple venues around London including bars in Leadenhall Market and East Dulwich as well as restaurant Fox Fine Wines & Spirits at London Wall.

Planet of the Grapes

This content is contributed by a guest author. Startups.co.uk / MVF does not endorse or take responsibility for any views, advice, analysis or claims made within this post.

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Alice Martin Business writer

The Startup’s guide to Making Tax Digital (MTD)

This is our essential survival guide for any business that needs to be ready for Making Tax Digital in April.

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Published on 3 February 2026

Startups.co.uk is reader supported – we may earn a commission from our recommendations, at no extra cost to you and without impacting our editorial impartiality.

Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) will soon become mandatory for the self-employed and landlords who cross over the initial £50,000 turnover threshold. This is due to start from April 6th this year.

If that sounds soon, don’t panic, there’s still plenty of time for you to understand what that means for you, and to get ready. What’s crucial to understand is that MTD is actually a positive change for taxpayers. It’s trying to move recording and paying tax away from one big end-of-year pressure point into a more modern and fluid approach.

To comply with MTD for ITSA, you need to be recording all your transactions as digital records in HMRC-approved software: our recommendation is to use the best accounting software for small business owners. We’ve been advising small businesses for over two decades now, so take a deep breath, and let’s go over everything you need to know to get MTD-ready.

Download our guide on Making Tax Digital

On April 6, Making Tax Digital for Income Tax will begin for the first wave of sole traders and landlords. Don’t panic, though: our stress-free guide to MTD covers everything from digital record keeping to deadlines.

Download free today

What Does Making Tax Digital Mean?
Making Tax Digital Thresholds (2026 – 2028)
MTD rules & need-to-knows
Benefits for Startups of MTD: make your business more efficient
Common pitfalls to avoid
What About Limited Companies?
Top tips
Frequently asked questions about MTD for Income Tax
Summary: how to be confident on MTD for Income Tax

💡Key takeaways

MTD for ITSA becomes mandatory on April 6, 2026, for sole traders and landlords with an annual taxable turnover exceeding £50,000.
You will need to use HMRC-approved software to maintain digital records and submit reports throughout the year.
Submit four quarterly updates to HMRC to provide a real-time view of business income and expenses, rather than a single annual return.
You must understand and comply with the ‘digital links’ rule, which prohibits manual data transfer like copying and pasting.
Register for MTD for ITSA manually through HMRC using your existing Self Assessment credentials, as enrollment is not automatic.
Create separate digital records and submissions for each individual business or property income source to ensure correct reporting.

What Does Making Tax Digital mean?

Making Tax Digital is a government scheme that was brought in to try and modernise how business tax is recorded and paid, by making it a fully digital process. The idea was to move away from a single, end-of-year tax return, and make it a more dynamic, real-time approach that better fits modern technology.

It was also intended to close the “tax gap” in the UK, which is the amount HMRC expects to collect and what actually gets paid. It’s not just about making sure taxpayers are being honest though, it creates an overall more favourable system for business owners: you’ll get a much clearer understanding of your finances year round, and most likely will find it easier doing your small business accounts.

MTD began in April 2019 with businesses registered for VAT, but come April 2026, it will no longer just be for VAT-businesses. It’s now going to apply to high-earning sole traders (and landlords), and in a few years’ time it will apply to the vast majority of them. Here’s what you need to know.

Making Tax Digital for Income Tax Self Assessment (MTD for ITSA)

This is the next stage of MTD, due to come into effect from April 6th this year, and will apply to self-employed individuals and landlords whose taxable turnover exceeds £50,000 per year (for the tax year 2024/2025).

So if you’re unsure, check your Self Assessment tax return for the year 2024/2025, if your annual income from self-employment and property is over £50,000, then you’ll be part of Making Tax Digital for Income Tax this year.

Making Tax Digital thresholds (2026 – 2028)

As explained above, sole traders and landlords whose taxable income exceeds £50,000 per year will be the first to be inducted into MTD for ITSA, but HMRC plans to then lower this threshold after each year. Here’s the key dates you’ll need to keep in your calendars as sole traders or landlords:

Mandation date	Target group	Income threshold
April 2026	Sole Traders & Landlords	Over £50,000
April 2027	Sole Traders & Landlords	Over £30,000
April 2028	Sole Traders & Landlords	Over £20,000

This is the current plan, and while it could be subject to change, HMRC hasn’t indicated these threshold dates will be altered.

Is MTD even possible for sole traders with tiny turnovers (e.g., £15k)?

Understandably, there might be some anxiety from sole traders with very small turnovers that don’t want to have to get used to a whole new system. Right now the lowest planned threshold for MTD is £20,000 in 2028, but this could be subject to change later on.

For now though, sole traders with tiny turnovers don’t have to worry, however, it is something they might want to prepare for.

Did you know: the definition of income

When we refer to “income” in the context of Making Tax Digital, this is referring to your gross turnover (your total sales). Just note, this doesn’t mean your net profit – this is different. So don’t get this confused when trying to work out if MTD applies to you this year.

MTD rules & need-to-knows

For sole traders and landlords, MTD means there are some new rules and regulations you’ll need to follow. These apply to record keeping and the specific software you’ll need to use. This isn’t optional: these are requirements that you absolutely must follow or potentially face fines from HMRC. Let’s breakdown all the new rules for MTD ITSA:

Digital record keeping and approved software

A digital record is defined as any record of your income or expenses that is created and stored by MTD-ready software. This is a core aspect of MTD, and basically, it means pen-and-paper and spreadsheets aren’t going to cut it any longer.

You need software that’s capable of storing digital records, and that’s approved by HMRC. You can find a complete list of approved software through HMRC’s finder tool. Our recommendation is to use one of the best accounting software platforms for the self-employed.

Full accounting software, like Sage, can help make your bookkeeping more efficient, as well as making sure you’re MTD-ready. Source: Startups.co.uk

By using a full cloud accounting software platform that’s MTD-ready, you can perform all the required actions from a single software. This means keeping and storing digital records and submitting them directly to HMRC.

You can technically use multiple different pieces of software to achieve this, but you’ll have to use what’s called ‘bridging software’ to connect the outdated system to one that’s capable of keeping digital records and submitting to HMRC. This isn’t the ideal option, however, and using full accounting software will be more straightforward.

Sage: use Sage Copilot to help you get MTD-ready

You can use Sage's AI-productivity assistant to ensure you are MTD compliant

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Which records do I need to keep?

It’s also important to note that you need to continue to keep records as you normally do for your Self Assessment. The types of records that you need to keep digitally, to be MTD-compliant, will be:

All your self-employment income (this will include your sales, takings, and any fees)
Your self-employment expenses (e.g. travel costs, cost of stock, office costs, and financial costs)
Income from property (such as rent, premiums for the grant of a lease, reverse premiums, and inducements)
Property expenses (this should include rent, repair costs, maintenance, and other services)

When you make a recording of these types of income and expenses in your software, you will need to always include:

The amount
The date the income was received (or the date when expenses were incurred)
The category (this depend on the type of business you run)

The categories for income and expenses will be the same as the one’s used for Self Assessment.

Important to know: separate businesses

An important aspect of MTD to get right: if you’re a sole trader with multiple businesses, you’ll need to create separate digital records and send separate quarterly updates for each source of self-employment income.

For example, you might be a piano teacher that also has a separate side-hustle doing graphic design work. You need to keep separate records and submit separate updates for both of these jobs.

UK and foreign property businesses

If you own UK property and foreign property businesses, you’ll need to create separate digital records for each. Any UK properties you own should be treated as a single UK property business and any non-UK properties should be considered one “foreign property business”.

You’ll also need to keep digital records if you used the Rent-a-Room scheme and also listed income from another UK property on your last Self-Assessment tax return. This also applies if you didn’t receive other UK property income, but the income you got from the Rent-a-Room scheme was higher than the £7,500 threshold.

Digital records you might choose to keep

There are some records that you are not technically required to keep for MTD, but you might want to anyway, as it can help build a clearer picture of your business finances. This might include:

Any income from employment (PAYE)
Income from a partnership, or from dividends

Do I need to sign up to Making Tax Digital for Income Tax?

Yes, you absolutely need to sign up for Making Tax Digital for Income Tax. This is a critical detail that can easily be overlooked: unlike MTD for VAT, where businesses are automatically enrolled, sole traders and landlords need to manually sign up for MTD for ITSA.

You can do this directly through HMRC using the same user ID and password you got when you first signed up for Self Assessment.

Just make sure you do this well ahead of the April 6th deadline as it’s not something you should leave to the last minute! You’ll need to answer some questions about your business and you may need to confirm your identity.

The quarterly updates

Under MTD for ITSA you will be required to send four updates throughout the tax year to HMRC. The key thing to note here is that these are not as involved as a Self Assessment tax return.

A fear amongst business owners in regards to MTD was that it would be like having to do four tax returns throughout the year instead of just one: this isn’t the case. The quarterly updates are more abridged and simple.

What should the quarterly updates include?

Your digital records in the quarterly updates should include:

Self-employment and property income and expenses from the previous three months
Any digital records that you’ve made since the start of the tax year, including the corrections you’ve made to them

You still need to send a quarterly update if you haven’t received income or incurred expenses during the last update period, just to notify HMRC that’s the case. You can find a detailed list of the information categories in HMRC’s update notice.

These updates must be sent to HMRC every three months through your approved software. Your accounting software should compile your digital records, create totals for the income and expense categories. It should also be able to notify you about when, and how, to send the updates (each software will have a slightly different method).

For the first year of MTD for ITSA (tax year 2026/2027) these are the dates you’ll be submitting your quarterly reports on:

Q1 (April to July): Due 7 August
Q2 (July to October): Due 7 November
Q3 (Oct to Jan): Due 7 February
Q4 (January to April): Due 7 May

Once you’ve sent a quarterly update to HMRC you should be able to view an estimate of your tax bill in your accounting software.

Year-end

While you’ll be sending updates every three months, there’s still a year-end process to finalise data and relief claims. The only difference is you won’t be using the old HMRC portal to do this anymore but going directly through your accounting software.

You should be checking and adjusting your digital records throughout the year to ensure they’re accurate. When you’ve sent your fourth update for the year, you will be shown your income and expenses for the entire tax year.

Before you finalise your position and submit your tax return you may need to make a couple of adjustments, like:

Removing any disallowable expenses
Adjusting for prepayments or accruals
Claiming for reliefs or allowances

Did you know: MTD for VAT

As we’ve touched on earlier in the article, while MTD for ITSA is due to come into play from April this year, MTD for VAT is already active. It was introduced in April 2019, and since then, it’s been active for all VAT-registered businesses.

If you’re a business who exceeds the £90,000 revenue threshold, then you might want to jump over to our guide on Making Tax Digital for VAT to learn more. You can also check our guide on VAT, and what it means for your business.

Benefits for Startups of MTD: make your business more efficient

If that all seems a little overwhelming, don’t worry. Once you get in the practice of submitting quarterly returns, it should become second nature and, overall, have a positive impact on your workflow. Here’s six clear benefits MTD will have for your business:

1. Real-time cashflow

By recording your income and expenses as you go, you will have a much clearer look at your finances. You’ll have a better understanding of how much money is going in and out which will make for more reliable business planning.

2. Reduction in errors

You can catch any problems or mistakes early, and have time to correct them before submitting your tax return, as well as not having to manually input any data. You’ll be fixing errors as you go, not at the end, so you won’t end up overpaying on your tax bill.

3. Seek funding faster

By having a clearer look at your finances month-by-month, this will make it much easier to pitch for funding from investors, as you’ll have more detailed and specific data to impress with.

4. Less stress

By keeping records up to date every three months, this will take the pressure off the usual stressful year-end tax return scramble. Most of the work will have already been done!

5. More secure records

By switching to a digital record keeping system, you can be confident all your important info is safely and securely stored in the cloud. You won’t find yourself digging around for lost documents either, as everything will be stored in your digital records.

6. No surprises

You’ll get an estimated look at your tax bill at the end of each quarter, avoiding any nasty surprises that might have caught you off guard. Being able to view an estimated version of your tax bill at any point in the year means you can plan ahead more easily.

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Common Pitfalls to Avoid

For the most part, MTD for ITSA is pretty straightforward but that doesn’t mean there aren’t a few points you can trip up on. For example, separating your self-employment income and your property income. Here are the main mistakes to avoid:

Not using separate reporting

In accordance with HMRC guidelines, you can’t declare your property income and your employment income in a single submission. If you’re getting money from a property you own, and you also do work as a sole trader, you need to provide two separate submissions for each income.

Using non-HMRC approved software

This is a point you don’t want to slip up on as it could have some dire consequences. Not all accounting software is approved by HMRC, which means you won’t be able to submit reports if you choose the wrong one.

You don’t want to waste time and money purchasing and setting up a software that isn’t MTD-compatible, so make sure you’ve triple-checked your chosen software is HMRC-approved (you can do this by checking with HMRC directly).

Not signing up to MTD for ITSA

We covered this earlier in the article, but its worth going over again as it can be a major point to miss. Businesses are automatically enrolled into MTD for VAT, but you need to sign up for MTD for ITSA. HMRC doesn’t sign you up on your behalf.

Not understanding the ‘digital links’ rule

Essentially, from the moment you start recording a transaction in your software, all further transferring or amending of that data needs to be done digitally. This includes:

Making corrections
Submitting your quarterly updates
Filing your tax return

Everything you do in regards to your MTD software needs to have a clear digital audit trail. This means manual typing and copying and pasting is not allowed as per HMRC guidelines. HMRC does accept the following as digital links:

Linked cells in a spreadsheet
Using a flash drive or memory stick, which is then handed to another person to upload to HMRC-approved software
XML, CSV import and export, and downloading or uploading files
APL transfer

This is a big part of Making Tax Digital, so it’s crucial to understand it.

Not working with an accountant

Tax can get complicated. For the most part, MTD for ITSA is going to make it easier for the average sole trader to file their tax returns, but there’s still going to be some niche areas which require expertise.

It could well be worth engaging the services of a tax specialist to ensure you’re remaining compliant and paying the right amount of tax. Remember, if you’re feeling unsure or have some niche questions relating to specific scenarios, a tax specialist can help. If you’re not sure how to engage these kinds of services, you can use our guide to finding an accountant.

  Can I stop using an accountant for my tax returns now that MTD software allows for direct filing?  

Despite some amazing advancements in accounting software, it’s still very much advisable to work alongside an actual accountant. Accounting software won’t have the expertise or training of a professional accountant, and even if you have basic needs, accountants can advise you on tax law and compliance (which could save you from making a costly mistake).

If you’re feeling confused when it comes to software vs accountants, this is the best way to remember the difference: accounting software handles the reporting for you, whereas accountants handle the expertise.

Not having a business bank account

If you don’t have a separate bank account for your business transactions, untangling your personal purchases from your business-related ones will be a nightmare. This is because you’ll be using the bank feeds feature on your accounting software which pulls through all the transactions from your bank account for fast and simple categorisation.

Except, it won’t be fast and simple if you’re having to go through and remove all your personal transactions from your bank feed. Make sure you avoid this mistake by having a dedicated business bank account set up.

Can I get an exemption from MTD for ITSA?

It is possible to be granted an exemption from MTD for ITSA, but only under special circumstances such as the inability to access the technology due to age, disability, or religion.

HMRC will grant exemption on a case by case basis, but you won’t be granted an exemption simply because you prefer the old system.

What about limited companies?

Although there are plans to roll out Making Tax Digital to limited companies, and limited liability partnerships (LLPs) at some stage in the future, no set date has been confirmed yet.

In 2025, HMRC confirmed that they were scrapping the proposed plans for Making Tax Digital for Corporation Tax but there could well be a change to how CT600 forms are filled in the future.

Limited company founders, for now, only need to worry about MTD for VAT or personal income from a side-hustle or property.

Top tips

Hopefully by this stage, you’re feeling a little more confident about MTD and the benefits it can bring you, but here are some of our key tips for getting the most out of MTD for Income Tax:

Find the right software

A key aspect of MTD to get right is choosing the software that’s the best fit for your needs. All of the top accounting software options will be solid choices, but it’s about selecting the option that suits how you prefer to operate.

For instance, your side-hustle might be rapidly growing to the point of becoming a full-time business. If you think this applies to you, you should focus your search on accounting software platforms that support long-term growth. Xero, for example, has a clear upgrade path of well balanced plans. So you won’t need to bother learning a new software if you outgrow your current plan.

Plan time to set up your software

Don’t leave setting your accounting software up until the last minute. Most of the top options will be intuitive and easy-to-use, but they still take time to get used to like any complex software. Make sure you’ve left yourself plenty of runway to get up to speed before the deadline.

Accounting software, such as Zoho Books, can be very intuitive, but you should still make sure you have allocated enough time to get to grips with it. Source: Startups.co.uk

Be mindful of free plans

It’s always tempting to save as much cash as possible as a business owner, but free plans might not always be worth it in the long run. Yes, there are some strong free options for an accounting software plan but while these might be fine for limited or short-term use, you may find them to be restrictive further down the line. For example, a lot of free plans have limited caps on invoices.

Additionally, many free plans are missing out on the AI accounting tools that are currently optimising a lot of bookkeeping tasks. These tools, which can help prepare and submit your tax returns, can be invaluable to a lot of entrepreneurs and therefore worth the extra cash.

The joint-property income rule

If you’re a landlord that is a joint-owner of a property – let’s say you own a rental home with a partner – you’re only required to keep records and submit updates in relation to your share of the property. You don’t need to keep records and submit updates for the total income of a joint-owned property.

Don’t forget about the end-of-year final declaration

Remember that it’s not just quarterly updates that make up MTD for ITSA: you also need to submit your end-of-year declaration. This is in place of the old-style Self Assessment Tax Return. It’s the confirmation of your tax position, based on the four updates you’ve sent throughout the year (including income, expenses, and reliefs).

Join up for MTD early

If you’re not due to be mandated into MTD for ITSA until next year, or the year after, there’s nothing to stop you joining up early. You can enroll in the testing phase, which is a great way to get used to the system before you’re required to be in it.

Easement of the penalty system in the first year

There’s a new penalty system specifically in place for MTD. It’s a points based system: you get a point for each deadline missed. If you accrue enough of these points then you’ll have to pay a fee.

This means you don’t need to worry about facing a fee for missing one update – just don’t make a habit out of it!

HMRC understands that MTD for ITSA will take a bit of getting used to for the first wave of inductees which is why they’ve announced there will be an easement of the penalty system for the initial year.

If your payment is over 30 days late in your first year, late payment penalties will apply. After the first year, this threshold will drop to 15 days.

Frequently asked questions about MTD for Income Tax

The broad strokes of MTD for Income Tax are relatively easy to get your head around, but there can be a lot of niche questions that can be raised. Here are some of the most commonly asked questions around MTD for ITSA:

MTD: Frequently Asked Questions

Does it mean I have to submit four tax returns a year?
No, this won't be like submitting four tax returns a year. The quarterly updates are far simpler than a traditional Self Assessment tax return, and are just a summary of your income and expenses for that quarter.
Do I need to make quarterly payments?
No, the payments won't be made quarterly, the timing of your tax payments won't change. MTD just effects how you report on your tax, not how you pay it.
Can I add custom fields to digital invoices to track specific contract dates?
Yes, you will be able to do this using the ``custom fields`` feature in bookkeeping software. While HMRC only requires the date and amount, it's worth including these level of extra detail linked to your invoices, to ensure you're maintaining high-quality records and keeps you prepared for potential HMRC investigations.
I have occasional short-term employment in addition to my sole trader business: how I declare this income?
You will need to report your employed (PAYE) income on your MTD tax return at the end of the year. This information should be included in your Final Declaration.

Summary: how to be confident on MTD for Income Tax

MTD for ITSA might seem like a lot, but just remember these core points: you need to use HMRC-compliant software, you need to keep digital records of income and expenses, and you need to send updates to HMRC every three months. As long as you follow those key points, it should be smooth sailing.

And remember, this won’t be the same as sending four tax returns in a year. It’s much simpler than that and by keeping on top of your tax quarterly, you’ll have a richer understanding of your business.

Your immediate next step is to check your tax return for 2024/2025. If your turnover was over £50,000, you’ll need to start getting ready for April 6th. If you’re feeling stressed about the deadline, don’t worry: just use our MTD 90-day readiness checklist.

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Alice Martin Business writer

AI could land you in a legal nightmare – here’s how to protect yourself

A warning has been given to business owners: if you deploy AI, you must put the correct governance and protections in place.

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Published on 3 February 2026

While, for many ventures, AI is changing the business landscape for the good, a legal expert is urging businesses to get up on the technology, as they can inadvertently fall into legal mires in everything from copyright to data privacy.

The F&B sector is one of the latest to report positive ROI from AI investments. However, there is also a reported AI skills gap in the UK, which means that companies might be desperate to deploy AI but find themselves lacking people with AI skills.

This could lead to mistakes with potentially huge implications, both financially and in terms of loss of reputation.

Copyright calamities

Speaking to IFA Magazine, Kirstin McKnight, practice group leader at commercial law firm LegalVision, said that education is absolutely key for businesses if they want to use AI and avoid legal wrangles or compliance issues.

According to McKnight, the number one risk for businesses is using AI-outputted material and unintentionally infringing on copyrighted materials in the process. In particular, there have been high-profile legal battles after material protected as Intellectual Property was reportedly used to train AI models.

This means that someone using AI to create content could find themselves entering prompts and being presented with a response that is actually close to, or identical to, a copyrighted work – whether text, a logo, or an image.

McKnight advised: “To protect your business, it is essential to carefully review the licensing and terms of service of any AI tool you use. Implement internal review processes to check outputs for potential infringement, and clearly define ownership rights in contracts.” The advice is particularly pertinent if you are using the AI content commercially.

Misleading information

Caution is also advised as generative AI can be prone to “hallucinations” – false or misleading information that the system presents as correct. If you are a business owner using AI to create marketing material, for example, make sure that you have a human fact-checking process in place. This is something job hunters have neglected at their peril when using AI to help write their CVs.

According to New Scientist, hallucinations are getting worse. The site reported on a hallucination rate leaderboard that revealed some models had seen double-digit rises in hallucinations from their more recent releases.

When AI is deployed by organisations in customer-facing capacities, this has led to potentially dangerous situations. A bot used by the New York City authorities, for example, gave out “dangerously inaccurate” advice on everything from housing policy to workers’ rights.

Put frameworks in place

While the EU is working on its own AI framework, businesses can’t be lax about their own governance. McKnight said: “Many businesses adopt AI tools without establishing clear policies. This lack of governance can quickly turn into a serious legal and operational risk as employees may misuse AI, input inappropriate or sensitive data, or fail to recognise harmful outputs, which could lead to data breaches or escalate into costly lawsuits.”

If you are using AI that’s given access to your customers’ personal data, for example, protocols need to be in place to make sure this data is protected and anonymised, and that permissions have been gained.

Regulation is key to protecting against these kinds of data protection or compliance slipups. Create a robust AI plan that your employees are trained on. This training also needs to include understanding the compliance rules and regulations that are already in place for AI usage.

McKnight added: “It is essential to stay informed about evolving regulations, conduct regular audits of AI systems, and design strategies with flexibility so you can adapt quickly to new legal requirements as they emerge.”

While AI uptake is moving at a dizzying pace, businesses cannot use their lack of understanding or ignorance of the regulations as an excuse if things go wrong. If you’re to deploy AI without risk, constant awareness and alertness are your greatest shield.

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Trump’s tariffs are the biggest challenge facing one in five UK SMEs

The spectre of political turbulence is haunting 21% of UK SMEs as they put tariff disputes at the top of their list of challenges.

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Published on 3 February 2026

New research from 1,000 SMEs across the UK has revealed exactly how much of an impact President Trump’s erratic threats of trade tariffs are having on businesses.

Data from Paragon Bank has laid bare that more than one in five of the nation’s SMEs say that the tariff threat is their single biggest challenge, placing it above all other concerns, including problems recruiting staff, tax burdens, and regulatory red tape.

Direct impact on takings

As the world waits on the whim of the US President, businesses in the UK are reporting that they are already feeling the impact of the tariffs.

In the survey, a quarter of businesses said that their profit margins have already been directly hit, and 17% are recording reduced sales. Among these, 23% said that they were suffering from reduced access to export markets or falling demand from overseas clients.

22% of business leaders also said that the uncertainty over the future is affecting their ability to strategise, while 20% said that there has been a direct impact on their production time.

State of limbo

While there seems to be a temporary lull in the tariff storm after the World Economic Forum in Davos, the possibility of escalation remains. Just a week ago, Trump was threatening to introduce new tariffs on eight European countries, including the UK, unless they supported his wishes to buy Greenland.

In this climate of uncertainty, the survey found that the transportation, storage, and manufacturing sectors are reporting the most vulnerability.

However, businesses in all sectors pointed to the same issues, with 30% reporting a rise in the cost of imported goods, 28% reporting supply chain disruption, and 27% saying production costs had increased.

Continued turbulence

The trade tariff wrangle has been going on for many years, and unfortunately for businesses, it isn’t showing signs of abating. Some businesses in the UK, therefore, have had no option but to “delay investment decisions or scale back growth plans,” said Phil Hughes, Deputy Managing Director of SME Lending at Paragon Bank.

He added: “Trade tariff disputes have created significant challenges for SMEs, not only those directly involved in import and export markets, but also businesses further down the supply chain.” Hughes recognised that many businesses have shown “resilience in absorbing these rising costs”.

There have recently been increasingly urgent calls to make funding for SMEs easier to access, as this could prove a lifeline for those businesses that have managed to ride the tariff storms so far, but are not sure how much longer they can continue fighting without sinking.

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Alice Martin Business writer

Government’s pub support package sparks calls for wider hospitality relief

Pubs are getting slashed business rates as part of the Government’s new support package, but other hospitality businesses feel left behind.

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Published on 3 February 2026

The UK Government has recently announced a new support package for pubs, giving businesses a 15% cut to business rates bills from April.

This comes following the Government’s decision to backtrack on its plans to increase business rates for pub venues following the 2025 Autumn Budget announcement.

While this move is being hailed as a major win for pub owners across the country, other hospitality firms — including restaurants, hotels, and cafes — feel overlooked, and have called for the Government to extend the relief across the wider hospitality sector.

The Government unveils business rates relief package for pubs

On Tuesday, the Government revealed a new support package for British pubs, aiming to ease the financial burden caused by rising business rates and boost local communities.

The support package includes slashing business rates by 15% from April, as well as a two-year real-terms freeze, and a review into the method used to value venues for business rates.

This new revelation comes after weeks of commotion from pub landlords after it was announced at the Autumn Budget that business rates would increase for hospitality businesses, causing landlords to bar Labour MPs from their doors in protest.

The Government’s support package aims to save the average pub £1,650 in 2026/27, with around 75% of pubs seeing their bills either drop or stay flat over the same year. It will also announce a new “High Street Strategy”, which is expected to be published later this year.

“If we’re going to restore the pride in our communities, we need our pubs and our high streets to thrive,” Chancellor Rachel Reeves said.

“We’re backing British pubs with additional support, and our new High Streets Strategy will help tackle the long-term challenges that our much-loved retail, leisure and hospitality businesses have faced.”

Support package leaves wider hospitality sector behind

While pub landlords may be breathing a sigh of relief, restaurants, hotels, and other hospitality firms feel they’ve been left out in the cold.

As the support package only applies to pubs, other hospitality businesses will not be eligible for the relief, and will be expected to pay higher business rates in the new tax year. The Federation of Small Businesses predicts an average rise of 52%.

While Labour MPs have called for a pause on business rate hikes for music venues, restaurants, gyms, nightclubs, and local shops have criticised the Government for not extending this support beyond these establishments.

Michael Kill, Chief Executive of the Night Time Industries Association, told The Guardian that the support package is “little more than a drop in the ocean when set against the reality of the current tax system and the cumulative damage inflicted by the last two budgets.”

Meanwhile, Kate Nicholls, Chair of UKHospitality, said that “the rising cost of doing business and business rates increases is a hospitality-wide problem that needs a hospitality-wide solution.

“The reality remains that we still have restaurants and hotels facing severe challenges from successive Budgets,” she added. “Without clear action, they will face increasingly tough decisions on business viability, jobs, and prices for customers.”

How should hospitality firms respond?

Hospitality businesses that don’t qualify for the new support package should first check for Small Business Rates Relief (SBBR). Many small pubs, cafés, restaurants, and hotels may already be eligible for SBBR, which can reduce or even eliminate business rates depending on the property’s rateable value.

As Matt Harris, owner of Planet of the Grapes, advises in his latest column for Startups.co.uk, you should check whether the Valuation Office Agency (VOA) has the correct rates for your building, and challenge any inaccuracies before they push up your bill unnecessarily.

It’s also worth exploring other local or sector-specific grants, as some councils and trade bodies offer targeted support for struggling hospitality businesses. For example, short-term financial relief, energy or rent subsidies, or programmes that help businesses recover from post-pandemic challenges.

And with the Government’s High Street Strategy expected later this year, you should keep an eye out for any new support measures or updates to business rates that could benefit your operations.

Whining and Dining with Matt header image

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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Alice Martin Business writer

Selling online? Make it work for you

In an exclusive column, Emma Jones CBE discusses her work tackling late payment practices, offering practical insights to help small businesses get paid what they're owed.

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Published on 3 February 2026

Supporting small businesses means understanding what really helps them start, run and grow — and listening directly to the platforms they rely on every day.

I recently hosted a roundtable with Small Business Minister, Blair McDougall MP, bringing together the UK’s major marketplaces (eBay, Etsy, TEMU, Fruugo, etc.) with leading payment providers (Stripe, PayPal, Square).

In the room, we had a group that reached most small businesses in the UK. So what did we talk about? Here is the inside track…

Giving founders time back

Show me a founder who doesn’t want to free up time to spend on more meaningful work!

Luckily, marketplaces take on some of the admin chores that small businesses need to comply with (the main one being VAT collection). We’re now looking at whether this can be quantified and what more could be done to help reduce business burdens.

Faster finance, when it’s needed

Through access to live performance data, platforms can identify their merchants who would be eligible for a loan. Access to lending is achieved in a few clicks, and money can be in the account of a small business the next day.

If Carlsberg made lending, it would look like this! This rapid access to growth capital is allowing small businesses to grow. It will be interesting to see if lessons from this could be applied across the wider lending sector.

Helping small businesses sell to the world

Marketplaces and payment providers enable international trade, with one platform stating that 9 out of 10 businesses selling with them sell to the world.

Some have seller dashboards to offer forecasting on sales volumes to support founders with inventory planning. We also discussed how to navigate the changes to de minimus (small value trades) as a small business.

Building digital confidence to scale

Digital adoption is key to growth, and small firms need to feel digitally capable and confident using digital tools to save time, work more efficiently, and stay competitive.

Most attendees are running education programmes or schemes with one platform offering free AI subscriptions to 10,000 businesses. Other topics included the introduction of e-invoicing.

Preparing small businesses for what’s next

Through AI technology, the way people shop is changing, and more are using AI agents to shop on their behalf.

It was agreed that we will take the next steps to convene a larger group to discuss a national effort to deliver education and support for small businesses on how to be ready for and make the most of agentic commerce.

Looking to sell online? Here are Emma's top tips

When selecting marketplaces and payment providers, do your research and look at where others in your industry are selling and how they are performing.
Marketplaces often host seller forums or community spaces, where you can connect and ask any questions you have about trading on a particular platform.
Before signing up, read the terms and conditions and review the policies of the online marketplace or payment provider, as these are the terms you are agreeing to as your business changes or grows.
The fees and charges can be very different, so check these ahead of making your decision (Note that these fees may change, including if your business changes or grows).

Emma Jones CBE - Small Business Commissioner

Emma Jones advocates for SMEs in the UK, ensuring they receive the resources they need to grow. With a degree in Law and Japanese, Emma has spent the last 25 years founding and leading multiple ventures, including Enterprise Nation and StartUp Britain, before being appointed as the Small Business Commissioner for the Department for Business and Trade in June 2025.

Small Business Commissioner

This content is contributed by a guest author. Startups.co.uk / MVF does not endorse or take responsibility for any views, advice, analysis or claims made within this post.

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Alice Martin Business writer

Pensions beat raises and remote work as employees’ most valued benefit

Pensions have been highlighted as a key staff retention tool, with 90% of workers ranking pension packages as important when considering new roles.

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Published on 3 February 2026

90% of workers view pension packages as important, and will scrutinise them when they are deciding whether to stay with their employer or look for a new job. This reveals pensions to be more influential than any other benefit – including runner-up flexible and remote working (which 76% said was important).

The research from workplace pensions specialist Penfold took in 2,000 employees and 500 SMEs. The resulting data suggests that, while businesses may focus on their pension obligations as an employer, pensions should also be viewed as a powerful tool for staff retention.

Pensions are more important than other financial benefits

After pensions and remote or flexi working, the survey – which ranked employee benefits – found that the benefits you might expect to top the list didn’t come close to pensions. Bonus schemes and salary advances, for example, were named as important by 74% and 65% of respondents respectively.

In addition, employees flagged a generous parental leave policy as important, and health and life insurance both got a mention, as did work socials.

While recent research suggests that freelancers often neglect their pension pot, it’s clear that for PAYE employees, it is an absolute focus.

Pensions as a recruitment tool

Pensions have been found to play a key role when employees are looking for a new job. In the survey, 88% of respondents said that, when deciding whether to join a new company, the pension on offer is a very important consideration.

In its Salary Trends Report 2026, which analysed 21.6 million UK job positions across 22 industries and 21 cities, Totaljobs says that 41% of candidates are looking for or planning to look for a new role in 2026.

By ensuring your company offers an appealing pension package, you’ll be helping to put your business in a good position to avoid losing strong candidates from this group to other hirers.

Untapped potential

While offering a range of workplace benefits is essential, the Penfold team argues that pensions are often underestimated as a tool for retention.

Chris Eastwood, co‑founder and CEO of Penfold, said: “For many employers, pensions still sit quietly in the background. They’re treated as a compliance task: important, but largely fixed. Something you set up once, then move on from.”

He argued that, instead, pensions can be a powerful tool in supporting employees’ “financial wellbeing, morale and long‑term retention”.

With talent shortages in some industries, notably hospitality, canny employers can create pension packages that help them retain their staff, and also use them to attract the best people to help them ride out the current storms.

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Alice Martin Business writer

Freelancers rethink self-employment as MTD readiness comes under scrutiny

Research reveals that tax stress is causing one in six freelancers to reconsider self-employment, raising concerns over HMRC’s readiness for Making Tax Digital.

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Published on 3 February 2026

According to data from Taxfix, the stress caused by tax returns is leaving one in six freelancers reconsidering whether self-employment is really worth it.

The dreaded Self-Assessment tax return deadline is a tale as old as time, and as most sole traders and freelancers will tell you, so is the system. Every year, it’s the same story of last-minute panic, frantic inbox searches for that one receipt, and a mad rush fuelled by cold coffee and the HMRC countdown clock.

And with complaints around poor customer service and complicated processes, concerns are growing over whether HMRC is prepared to roll out Making Tax Digital (MTD) in April 2026 without adding further strain to freelancers who are already under pressure.

Tax headaches are making freelancers reconsider self-employment

Becoming self-employed may sound like a dream for some, but the stresses around tax returns are turning this dream into a horror story for many sole traders.

According to research from AI accounting platform Taxfix — which surveyed 2,000 freelancers — the stress around tax returns is making 16% of sole traders question whether they want to work for themselves anymore.

And for those who once thought about going freelance, the reality of the system is prompting a rethink — with the proportion of people considering self-employment falling from 50% to 38% between 2024 and 2025.

HMRC has warned that 5.65 million people are yet to file their tax return this year, but Taxfix’s survey found that 19% of self-employed Brits would rather pay the £100 fine than deal with the stress of filing their tax returns on time, while 25% admit to leaving their return later than usual this year.

“Doing a tax return as a sole trader feels way more complicated than it needs to be,” says Connor Gani, a freelance producer in London. “Every year, I’m forced to navigate the same system a limited company uses — scrolling through endless pages that don’t apply to me with anxiety-inducing warnings about penalties if I get it wrong.”

Is HMRC ready for Making Tax Digital?

Ongoing problems with HMRC’s systems could pose a risk to the implementation of Making Tax Digital (MTD) in April 2026.

A majority of respondents from Taxfix’s survey (54%) cited poor customer service and HRMC’s “confusing” website as the main reason for putting off their tax return. Complicated forms (29%) and anxiety around the process (27%) were also highly reported reasons.

And with MTD on the horizon, this data raises serious questions about whether HMRC is truly ready for its rollout — particularly when 81% of freelancers are calling for a simpler process, while 27% want mobile-friendly filing.

Oliver Harcourt, Senior Director at Taxfix, says: “MTD is a structural change requiring quarterly reporting that may benefit the tax system long term. But it currently risks increasing complexity for sole traders, rather than reducing it.

“We’re seeing that the current system is a huge pain point for tax filers, raising questions about HMRC’s preparedness for a quarterly reporting process.

“Whilst I’m confident that the technology for MTD will go live, I’m not confident that the user experience will be seamless in the immediate term.”

How freelancers should prepare for MTD

The most important step for sole traders and freelancers is to start keeping digital records as soon as possible and ditch the pen and paper methods for good.

That means organising income, expenses and receipts completely digitally. This will make Self-Assessment less stressful and lay the groundwork for MTD ahead of April.

MTD-ready accounting software can make the process much easier, with 71% of small businesses already relying on it to manage their taxes. Tools like Xero, QuickBooks and Sage allow you to track expenses in real-time, generate reports automatically, and even submit data directly to HMRC once MTD becomes mandatory.

Overall, the key is to get into the habit of recording records digitally. The earlier you start, the smoother your tax filing will be, and the less stressful quarterly reporting under MTD will feel.

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No check, please! 8% of restaurant diners admit to bolting without paying

A nationwide survey has revealed that “dining and dashing” is shockingly common, with 8% of punters admitting it’s something they’ve done.

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Published on 3 February 2026

A survey that took in 1,500 diners across the UK has found that restaurants are frequently falling victim to unscrupulous diners who scarper without paying, and London is the worst for it.

The data, collated by card payment solutions provider takepayments, revealed that 8% of restaurant goers admit they have headed off without paying the bill.

The survey comes at a time when restaurants need good news, not unpaid bills. While relief may be around the corner for pubs, business rates changes and alcohol duty hikes, as well as expensive long-term goods and staffing costs, are keeping confidence low.

For many businesses, an unpaid meal could have a huge impact.

The scale of the shame

There was a 1% difference between men and women, with men being more likely to not pay. The results also pointed the finger at one age group, the 35 to 44 bracket, as the most likely to dine and dash.

The reasons for doing so varied, and actually offered some hope, with 39% of dine-and-dashers saying they had simply forgotten to pay. However, there is no data on whether they went back to rectify this, and an unpaid bill is an unpaid bill regardless of how innocent the accident.

Meanwhile, 13% said they had left a restaurant without paying because they were in a hurry and the service was too slow, suggesting they acted out of perceived necessity.

However, the remaining non-paying customers knew exactly what they were doing, and admitted they had dined and dashed as an act of theft, with 11% saying they did it for the thrill.

As well as revealing which gender and age group are most likely to skip paying for their meal, the survey also uncovered regional differences.

London accounted for 21% of all reported incidents in the UK. However, before those living in the capital hang their heads in shame, it’s worth knowing that when the data was adjusted for population size, it was the East Midlands that actually topped the list as the region with the most incidents.

Are no-shows an even bigger problem?

The data also uncovered a potentially larger issue for businesses – the fact that 12% of diners have booked a table at a restaurant, then failed to show up.

In terms of the reasons customers do this, 60% of no-shows said they had simply forgotten to cancel their table, while being too embarrassed to contact the restaurant was listed by 15% of respondents, and a further 15% said cancelling was too much effort.

London was again pinpointed as a hotspot, with almost one in five admitting to missing a booking.

Interestingly, there was also a gender disparity. Women are more likely than men to forget to cancel a reservation, with 68% of women saying they’d done this compared to 49% of men.

To counter this, some businesses have been putting deposit schemes in place, but punters are baulking at this, with the survey finding that 44% are put off making a reservation when a restaurant asks for card details to secure the booking.

What can businesses do?

For businesses, the key to countering no-shows and non-payers is to keep it simple for customers, said Darren Larkman, Field Sales Director at takepayments: “Restaurants can make the booking process much easier by keeping it quick and simple. That could be an easy-to-use online system, clear instructions for walk-ins, or flexible deposit options.”

He adds that automated email reminders and easy cancellation links “also help diners cancel responsibly”.

Clarity is also key to preventing dine-and-dash disasters. Diners should be able to clearly see how and when they need to pay; and there should also be a designated member of staff in each area to monitor tables and ensure customer service is timely.

Larkman advises taking pre-payments or deposits for large tables; but paying upfront for all customers could also be an option, depending on the nature of the business. It might not work, for example, for a high-end restaurant with a small number of covers, but it could work for a large venue with a rapid turnaround of tables.

However, even with measures in place, there might be situations where diners are determined not to pay. Larkman recommended that restaurants ensure their staff are trained to “approach the situation calmly and professionally”.

If things do get out of hand, CCTV is a strategic tool (though customers must be told that it is in place), and staff must know the processes if they need help from the authorities with a problematic payer.

As Larkman said: “By combining good processes, staff training, and smart use of technology, restaurants can minimise accidental or deliberate dine-and-dash incidents while keeping customers happy and service running smoothly.” In these times of rising costs, this is all the more important.

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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Alice Martin Business writer

7 dropshipping products to maximise your sales in February 2026

Do your dropshipping sales need more love? Check out these seven products — from pilates rings to drawstring jeans — that shoppers are head over heels for.

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Published on 3 February 2026

Valentine’s Day is just two weeks away, and for dropshipping businesses, finding the “perfect match” means selling the products that are in demand right now.

While this may not involve stilted first days or awkward getting-to-know-you chats, it can be tough to know exactly what shoppers are looking for.

Luckily, we’ve done the hard work for you.

After crunching the numbers and digging into the latest market trends, we’re rounding up seven of the most popular products from top dropshipping suppliers — so you can spend less time guessing and more time making sales this Valentine’s Day.

1. Antarctic krill oil

Who says it’s too late for New Year’s Resolutions?

Living a healthier lifestyle is on many people’s resolution lists every year, meaning health products are often in high demand. And right now, Antarctic krill oil is in the top spot.

Antarctic krill oil is a supplement made from krill, which is rich in omega-3 fatty acids (EPA and DHA) and is mainly used to support heart health, brain function, joint health, and overall wellness.

And it’s these health benefits that seem to be catching on, as Exploding Topics reports an 18.1K search volume for Antarctic krill oil, with a +219% spike in interest. Meanwhile, Startups’ research found 1,300 searches on Amazon in the last month, while search interest jumped by +1,971%.

In the UK, food supplements like Antarctic krill oil are legally classed as food and not medicine. This means you cannot market or advertise them as able to treat, prevent, or cure any disease or medical condition. You must also comply with the Food Standards Agency (FSA) by ensuring that the product is safe for consumption, correctly labelled, made from permitted ingredients, and only promoted using authorised health claims.

2. Pilates rings

Pilates has become a popular way to improve strength, flexibility, and overall wellbeing without high-impact workouts. In the UK, there were over 1.2 million people practising pilates in 2025 — a 30% increase in the last five years.

And whether it’s to bring to a local class or to practice at home, pilates rings are a simple, affordable piece of equipment that helps people level up their workouts by adding resistance and improving muscle engagement.

According to data from Exploding Topics, searches for pilates rings were up to 33.1K, with an uptick in interest of +203%. Our research also found that search volume for the product on Google was 4,400, while search interest spiked by +52%.

These kinds of products can really shine on visual social media platforms, such as TikTok and Instagram. Quick demonstrations (such as “three moves you can do with a pilates ring”), before and after clips, or beginner-friendly routines can show potential buyers the product in action, understand how easy the rings are to use, and encourage them to try for themselves.

3. Tabi shoes

Tabi shoes are a type of traditional Japanese footwear inspired by the tabi sock, which separates the big toe from the other toes. Many tabi shoes are flat or have minimal heels and can be made from different kinds of materials, whether that be cloth, leather, or modern synthetics.

Tabi shoes are a hot look for many right now. On Exploding Topics, the number of searches for the footwear reached 135K, while search interest climbed by +186%. Through our own research, search volume for tabi shoes hit 12,100 on Google, with a +49% increase in search interest.

Again, short-form video content on social media can be an effective way for dropshippers to market the product by highlighting its split-toe feature and minimalistic shape. Collaborating with micro-influencers in fashion, streetwear, and Japanese culture niches can also help promote the product through authentic reviews, styling videos, or outfit inspiration posts.

4. Drawstring jeans

Regular button or zip-up jeans can be uncomfortable, and finding the right size is often a hassle for many.

That’s why drawstring jeans blend the comfort of elastic-waist or jogger-style trousers with the classic look of jeans. Instead of the usual button-and-zip closure, they have a drawstring waistband that can be tightened or loosened for a customisable fit.

And it’s this kind of flexibility and comfort that’s driving 18.1K searches and a +169% increase in interest, according to Exploding Topics. Startups’ research reveals a 3,600 search volume on Google, along with an +82% uptick in interest.

Like with pilates rings and tabi shoes, dropshippers can promote drawstring jeans through video content that focuses on the product’s comfort, style, and how easy they are to wear. Short videos demonstrating outfit ideas, how to style them, or showing how comfortable they are can work really well on platforms like TikTok and Instagram Reels.

5. POV cameras

Spend even a short amount of time on TikTok, Instagram Reels or YouTube Shorts, and you’re bound to find several point-of-view (POV) videos quickly pop up on your feed.

Put simply, these are videos shot from the perspective of the person filming, so the viewer sees things as if they’re looking through their eyes. On TikTok, #POV is one of the platform’s most popular hashtags, appearing in over 89 million videos.

While POV videos can be recorded on regular smartphones, specific POV cameras are all the rage right now. These cameras are often worn on the head, chest or attached to equipment to capture hands-free footage that shows exactly what the user sees.

As data from Exploding Topics reveals, search traffic for POV reached 27.1K, while interest jumped by +155%. Additionally, our research found that search volume has picked up specifically on Amazon, with 2,500 searches and +88% in search interest.

6. TPU filaments

More people are picking up 3D printing as a hobby. So much so that a survey by Filamentive reveals that 46% of respondents use 3D printing for hobbyist and creative projects.

With this rise in popularity naturally comes a demand for 3D printing materials. Specifically, Thermoplastic Polyurethane (TPU) filament. This is a type of material that’s flexible, durable, and can be melted, reshaped, and reused without losing its properties. Some of its most common uses include making phone cases, wearable accessories, gaskets, or hobbyist projects like cosplay props.

Whatever people want to use it for, Exploding Topics reported 33.1K in search traffic for the product, while interest climbed by +144%. Our own research also found a 1,900 search volume on Google, with an +81% increase in interest.

However, it’s important to note that all TPU filament products sold to consumers must comply with the General Safety Regulations (GPSR) in the UK. This means it must be safe to handle, free from toxic substances, and meet general safety expectations. Suppliers should also provide a “Declaration of Conformity” (DoC) or safety documentation if available.

7. Pimple patches

Nothing ruins a photo more than a zit or pimple on your face that just won’t budge.

That’s why pimple patches have become a lifesaver for many. These are small and adhesive stickers that cover blemishes, absorb excess oil and pus, and help speed up healing while protecting the area from bacteria and picking.

On Google, search traffic for pimple patches hit 33.1K, while interest surged by +22%. And if you want to be a little more specific, we found that star-shaped pimple patches were the most popular style for Amazon shoppers, with search volume for “star pimple patches” climbing to 3,200, while interest jumped by +19%.

For dropshippers, using good search engine optimisation (SEO) can help your pimple patch products show up when people are searching for quick skincare fixes. Optimising product titles, descriptions, and social posts around keywords like “pimple patches”, “spot treatment”, or “acne stickers” can help attract more visibility to your products.

As pimple patches are considered a cosmetic product, sellers must comply with the UK Cosmetics Regulation, meaning that the products should be safe for use, properly labelled with ingredients, warnings, and expiry dates, and not marketed with any misleading or medical claims (such as “cures acne”).

Want to keep your sales rolling? Our top dropshipping products list will help you attract customers, boost sales, and keep your store thriving no matter the season.

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Written by:

Alice Martin Business writer

Government pledges to boost investment and cut red tape for UK scaleups

A major growth package has been unveiled to help British scaleups grow in the UK.

Written by

Published on 3 February 2026

The government has announced a growth package designed to keep high-growth companies scaling in the UK rather than selling early or relocating.

The package includes significant investments made by the British Business Bank, alongside a pledge to cut red tape and modernise regulation.

A long-running lack of growth-stage funding in the UK has meant that many promising startups are pushed to source investment overseas, or fully relocate abroad once they hit a certain size.

In the past year alone, several high-profile British businesses, including Deliveroo and Runna, have been snapped up by US rivals.

While these deals can be lucrative for founders, they also point to a deeper issue: the UK still struggles to support homegrown companies through the scaleup stage. The new growth package aims to address this.

A bigger investment in British scaleups

A headline measure of the package is a £25m investment into Kraken Technologies, the largest-ever direct investment made by the British Business Bank into a single private company.

Kraken is an AI-powered spinoff company of Octopus Energy, which serves 70 million customer accounts globally and has a potential future London IPO, making it exactly the kind of company the government wants to champion.

An additional £100m has been invested by the bank into life sciences and deep tech funds Epidarex Capital and IQ Capital. These are major high-growth sectors which often struggle to raise late-stage funding in the UK.

Commenting on the investment, Business Secretary Peter Kyle said: “For too long, Britain’s most promising companies have had to look abroad for the backing they need to grow.

“Scale-ups that should have become homegrown champions struggle against a system that is too slow and too fragmented. This package changes that.”

Cutting red tape to help companies scale faster

In addition to funding, the government is also seeking to cut the red tape that might prevent company growth. To do so, it will launch multiple reviews to simplify regulation and reduce administrative costs by 25%.

The focus is on removing friction at the scaleup stage, when business growth can be hindered by the weight of complex paperwork, slower processes, and rising compliance costs.

For example, the government plans to modernise corporate reporting and competition rules, making it quicker and cheaper for growing companies to meet their obligations and figure out regulatory processes.

Industry groups have welcomed the move, with Jordan Cummins from the CBI commenting: “Cutting red tape and helping businesses scaleup is central to our collective growth mission.

“This latest package from the government is therefore a good step on the journey to helping the growing firms of today become the global leaders of tomorrow.”

What this means for UK startups

For UK founders looking to scale, this package is a positive step. There appears to be more attention from the government on funnelling growth-stage capital into the UK market, particularly for the tech, energy, climate, and life sciences sectors.

Importantly, the package validates a long-standing frustration among startups that red tape and sluggish regulatory processes can actively hold back growth. By pledging to ease this problem, the government seems to recognise why so many promising companies fail to reach their full potential in the UK.

Many of the changes will take some time to be felt by startups, but it does mark a positive shift in tone. If this shift translates to a genuinely wider availability of capital and fewer barriers to growth, this could be a real turning point for the UK startup scene.

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Written by:

Alice Martin Business writer

Making Tax Digital (MTD): HMRC-approved software that can make you compliant

The April 6th deadline for being MTD-ready is rapidly approaching: this is the software you need to be prepared and avoid fines.

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Published on 3 February 2026

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The deadline for getting Making Tax Digital for Income Tax Self Assessment (MTD ITSA) ready is now fast approaching, with just over two months to go before the deadline. On April 6th 2026, all sole traders and landlords whose turnover exceeds £50,000 (for the tax year 2024/2025) will need to move off the old tax system and be fully MTD for ITSA compliant.

Don’t panic yet, though. The good news is that even though time’s running out, it’s not too late to get prepared. You just need to make sure you’re set up with HMRC-approved software that can keep digital records, and submit quarterly reports regarding your tax. We’ll explain exactly what you need to do, and provide our own suggestions for the top accounting software that is MTD-ready.

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💡Key takeaways

All sole traders and landlords whose turnover exceeds £50,000 must adopt HMRC-approved software by April 6, 2026, to ensure MTD compliance.
Zoho Books is the top overall recommendation for MTD software because of its simplicity and short learning curve.
FreeAgent offers a comprehensive end-to-end MTD solution at no cost specifically for customers who bank with NatWest, RBS, Ulster Bank, or Mettle.
Sage provides an AI-powered assistant for tackling tasks quickly.
When selecting software, always verify that it supports your specific income sources, such as foreign property.
The software should facilitate mandatory ‘digital links’ for data transfer (‘copy and paste’ actions are not allowed under HMRC’s guidelines).

The MTD for Income Tax deadline, and what you need to do before then

Make sure you put the date April 6th 2026 in your calendars and diaries, and underline it. It’s as important as your accounting reference date.

This is the date by which you must start keeping records using MTD for Income Tax compliant software if your income was over £50,000 in the 24/25 tax year. No ifs, ands, or buts.

In accordance with HMRC’s regulations, you will need your software to:

Create, store, and correct digital records of your self-employment and property income and expenses
Send quarterly updates directly to HMRC
Submit your tax return by 31 January the following year

A basic spreadsheet won’t cut the mustard any longer. Unless it’s linked digitally to HMRC using ‘bridging software’, but this isn’t ideal (we’ll go into more detail about why later).

We’d recommend using MTD-compliant cloud accounting software. It might take a little longer to get your head around, but it will make your life far easier in the long run.

The below are they key dates you’ll need to know about:

What you need to do	Deadline
Submit a Self Assessment tax return for the tax year 2024 to 2025	31 January 2026
You must start keeping records using MTD for Income Tax compliant software	6 April 2026
Deadline for sending your first quarterly update	7 August 2026
Deadline for sending your second quarterly update	7 November 2026
Deadline to submit a Self Assessment tax return the usual way for 2025 to 2026	31 January 2027
Deadline for sending your third quarterly update	7 February 2027
Deadline for sending your fourth quarterly update	7 May 2027
Deadline for sending your first quarterly update for 2027 to 2028	7 August 2027
Deadline for sending your second quarterly update	7 November 2027
Deadline to submit your tax return straight from MTD for Income Tax software for 2026 to 2027	31 January 2028
Deadline for sending your third quarterly update	7 February 2028
Deadline for sending your fourth quarterly update	7 May 2028

There is a new penalty system specifically for Making Tax Digital.

It’s a points based system, and it works similarly to getting points on a driving license (you will accrue separate points for VAT and Income Tax, so don’t get caught out by this – you don’t want double fines!). If you’re unclear about the difference between income tax, and VAT, you can refer to our guide to VAT and how it affects your small business.

You will be fined when you hit a certain amount of points. If you remain under your specific point threshold for at least 24 months, then your points will expire. You can find out more details in our full guide to Making Tax Digital for 2026.

The best Making Tax Digital software platforms

Our number one recommendation for MTD-compliant software is Zoho Books, because it’s easy to get to grips with and it offers a free plan. We’ve also compiled a list of other top recommendations for MTD-compliant software, as each have standout features (and some weaknesses) that you’ll need to understand to make a final decision.

You can quickly compare costs in the chart below:

Zoho Book: best overall MTD software

Zoho Books

4.8

Starting price from: Free
Free trial: 14 days

Easy-to-use platform that's simple to navigate
Excellent free plan for solopreneurs and micro-businesses
Mobile app for real-time financial management

Summary Zoho initially made its name from CRM systems, but has been providing accounting software since 2011. Zoho Books stands out for its clean and modern interface, and seamlessly aligns with the broader Zoho products. While the platform is geared towards small businesses, we would also recommend it to sole traders, as the tools can be used by inexperienced users.

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Zoho Books is MTD compliant, and is by far one of the easiest-to-use accounting software platforms I’ve tested. If this is your first time moving from spreadsheets to dedicated accounting software, you should find it to be a relatively painless transition.

If you do get a little lost, Zoho has a clear, comprehensive help page to assist you as well as an entire free learning library at Zoho Academy so you won’t be left feeling helpless. You can use all the free resources Zoho provides to get confident using the software.

More good news is that you can get started on a completely free plan. Just note though, this only applies if your revenue falls under the threshold of 35k for the financial year. For those whose revenue exceeds 50k this year, you’ll have to use one of the paid plans, but these are still relatively inexpensive.

Zoho Books offers a range of good features to make sure you’re MTD for Income Tax ready:

Connect the software to HMRC and manage your income tax obligations
Generate and finalise your quarterly updates, and submit them directly to HMRC
Create, send, and track invoices
Record your expenses

Pros

Free plan (if your revenue falls under 35k for the financial year)
Easy to use
Zoho Academy has lots of free online learning resources

Cons

No 24/7 support
Restrictive transaction caps compared to some competitors (1,000 sales invoices for example)
Receipt capture can be on the basic side

Provided you’re over the 35k threshold for the free plan, Zoho Books starts from a pretty reasonable £12 per month, plus VAT (£10 if you opt to pay yearly). While the range of plans Zoho offers provide scalability for businesses looking to grow, we’d just flag the transaction limits as one of Zoho’s few weak spots.

The 1,000 sales invoice and 1,000 purchase caps won’t be an issue for more modest businesses, but if you have ambitious scaling plans this might become a frustration down the line (Xero will be a better solution for scaling).

Does it have a free version?

As I’ve mentioned above, Zoho Books does have a completely free plan, but only if your revenue doesn’t exceed 35k per financial year. This will remove those above 50k per year who will be mandated to begin MTD for ITSA this year, but for those who will begin the scheme next year and the year after, the free plan will be a perfect way to get accustomed to the software ahead of time.

What type of software is it?

Zoho is a fully MTD-compliant software that creates digital records. It supports sole trader and UK property income sources.

FreeAgent: comprehensive MTD software, if you qualify for a free account

FreeAgent

4.5

Starting price from: £10/month
Free trial: 30 days

The only software we tested that gives you built-in tax forecasting and planning tools at no extra cost
Helpful cash flow alerts about potential surpluses and shortfalls
Free plan available with certain qualifying banks

Summary Originally launched in 2007, FreeAgent is based in Edinburgh and now helps over 200,000 small businesses. It was acquired by NatWest Group in 2018. Our recommendation is that FreeAgent is best suited to freelancers, sole traders and novice accountants. It’s a good middle ground for those who need a feature-filled system that’s not overly complex.

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FreeAgent is HMRC-recognised software that provides a comprehensive, end-to-end solution for MTD for Income Tax, and you can get it completely free…just as long as you bank with the following:

NatWest
Royal Bank of Scotland
Ulster Bank
Mettle (and make at least one transaction per month)

As you can imagine, you can use the accounting software to submit quarterly updates and file your tax declarations directly to HMRC, but another benefit of FreeAgent is that they offer a free consultation about MTD. There’s also a ‘Practice Portal’ that users can log into and access a host of MTD-related learning resources, including:

Webinars
Email templates
Client guides

FreeAgent is adept at balancing simplicity with functionality, and when we tested it, we found that tasks like setting up reminders and managing our expenses was reassuringly simple. The user-friendly templates for invoices and estimates were a highlight, and we particularly liked FreeAgent’s ‘traffic-light system’ for bank transactions.

Pros

Comprehensive accounting software for free (as long as you qualify for a free plan)
Intuitive layout design with clear navigation
'Practice Portal' that includes MTD-related resources to get you up to speed

Cons

Can get expensive if you don't qualify for a free plan
The onboarding process could have been smoother
The help guide was tricky to locate, and it takes you to an external knowledge base

How much does FreeAgent cost?

As we mentioned, FreeAgent can be accessed completely free, just so long as you have a business current account with NatWest, Royal Bank of Scotland, Ulster Bank or Mettle. If you do qualify for a free plan, FreeAgent really is pretty amazing value for money.

However, if you don’t have a qualifying business account, then it’s definitely on the costlier side of things for sole traders, starting from £19 (plus VAT) per month. It’s slightly cheaper if you’re a landlord though, as you’ll only pay £10 (plus VAT) per month. Both of these tiers include:

The ability to generate MTD-compatible VAT returns and submit them directly to HMRC
Real-time view of how much you owe HMRC
Real-time view of your tax calculations and what is due when

Does it have a free version?

FreeAgent lives up to its name and provides free MTD-compliant software, but you need to have a business current account with NatWest, Royal Bank of Scotland, Ulster Bank or Mettle (and make one transaction per month).

If you don’t qualify for a free plan (and are set on using free MTD software) you should look to Zoho Books, Sage, or Clear Books instead.

What type of software is it?

FreeAgent is a fully MTD-compliant software that creates digital records. It supports sole trader and UK property income sources.

QuickBooks: excellent mobile app for staying MTD-compliant

QuickBooks

4.5

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Starting price from: £10 (self-assessment only)
Free trial: 30 days

Great bank reconciliation feature
Predicts your transaction categorisation
Custom reports and templates tailored to your business’ needs

Summary Part of the American multinational company Intuit Inc., QuickBooks is accounting software specifically designed for SMEs. It currently has 6.5 million subscribers worldwide. We think its intuitive layout combined with detailed features makes it suitable for more advanced business operations. It’s more suited to those working in accountancy rather than small business owners themselves, due to the complexity of the software and steep learning curve.

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QuickBooks is MTD for VAT and ITSA ready, and it has the best mobile app for managing your tax on the go – a big boon for the self-employed, who often find themselves having to do their bookkeeping on the move. In particular, the receipt-capture tool on the app is extremely helpful.

For less-experienced users, QuickBooks’ standout bank ‘reconciliation’ function will give you reassurance that your figures are adding up. Automatic links to your bank can be known to fail, so this feature will give you peace of mind.

We will say that the learning curve felt quite steep with QuickBooks (find out more in our QuickBooks review), but once you’ve gotten to grips with everything, it offers a lot of power. However, it might not be the first choice for landlords and sole traders who just want the cheapest, most basic software to stay on the right side of MTD (you should check out Zoho Books instead).

Pros

Standout mobile app
Excellent bank ‘reconciliation’ function
Access to AI-productivity assistant (on paid plans)

Cons

Has a fairly steep learning curve
No free plan
Time tracking feature is paywalled behind premium plans (Plus and Advanced)

How much does QuickBooks cost?

While QuickBooks doesn’t offer a free plan, you can get started on the Sole Trader plan for just £10 per month (plus VAT), and currently you can get 90% off your first six months, so you’ll only pay £1 per month over this period.

Just be aware, you’ll need to upgrade to the Simple Start plan (£16 per month) in order to access Intuit Assist, the AI-powered financial assistant. Intuit Assist will give you access to AI-powered bank feeds: this means that your transactions will be quickly and automatically organised for faster approval. You can learn more in our full breakdown of QuickBooks costs.

Does it have a free version?

There is currently no free version of QuickBooks. However, you can start a commitment-free, free trial of QuickBooks for 30 days (you can cancel at any time). Just one thing to note before starting the trial, strangely if you opt for the free trial you will miss out on the 90% discount.

What type of software is it?

Quickbooks is a fully MTD-compliant software that creates digital records. It supports sole trader and UK property income sources.

Xero: strong MTD-compliant software if you’re a growing business

Xero

4.3

Starting price from: £16/month
Free trial: 30 days

Easiest interface for quickly dealing with your bank transactions
Well-thought out plans and growth path
Connect with over 1,000 possible integrations

Summary Based in New Zealand, Xero was founded in 2006 and now boasts 4.2 million subscribers. Xero is tailored mostly towards experienced professionals and accountants, predominantly positioning itself towards high-turnover businesses with long-term client bases. We wouldn’t recommend it to new users.

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Every Xero plan is MTD-ready, and though your sole concern at the moment may be getting ready for MTD for ITSA, Xero provides some of the best scaling plan options for ambitious businesses. Xero has a clear and well-balanced upgrade path, so you won’t need to switch platforms as your business grows.

Xero provides MTD-ready features like:

Bookkeeping transactions are automatically mapped to the correct tax categories (this helps minimise errors for your MTD reporting)
Real-time insights with tax estimates and submission statuses from HMRC
Make your MTD for Income Tax process more streamlined using Xero’s built-in receipt capture tool Hubdoc

Xero has gone through some face-lifts over the past couple of years, and has now become a slick software that’s easy to navigate, with an upgraded tool bar. It can take a little time to get to used to though, and Zoho Books might be a better option if you just need to hit the ground running.

One thing to note for some business owners: the multicurrency functionality is paywalled behind the premium Comprehensive plan. This isn’t the case with all accounting software, so if you’re working in multiple currencies, you might find a more cost-effective option elsewhere.

Pros

Easiest to use ‘bank transaction categorisation’ feature
Well balanced plans in regards to cost versus features, with a smooth upgrade journey
New 'Simple' plan, specifically built for MTD for Income Tax

Cons

No free plan
Multicurrency support is only available on the expensive Comprehensive plan
Can take some time to get used to

How much does Xero cost?

As of April 2025, Xero has launched it’s lowest priced plan, ‘Simple’, specifically with MTD for Income Tax in mind. The ‘Simple’ plan has been built for sole traders and landlords who need to be MTD-ready, and costs just £7 per month (plus VAT). If you buy any Xero plan before the end of January then you can get 90% off for the first six months. This means you’ll pay 70p per month for the Simple plan (for six months).

If you’re feeling ambitious (you might be a landlord now, but what’s to stop you starting your own business in the future?) Xero has a comprehensive and well-balanced range of plans so you’ll be future-proofing your bookkeeping needs.

Does it have a free version?

Unfortunately, there’s no free plan offered by Xero, but you can try it for free for 30 days. There’s no credit card required, and you can cancel any time, so it’s a great way to test the software out for yourself to see if you think it’s worth the money.

What type of software is it?

Xero is a fully MTD-compliant software that creates digital records. It supports sole trader, UK property, and foreign property income sources.

Sage: a trusted brand name that’s MTD-ready

Sage

4.2

Starting price from: £18/month or £0 for Sage Individual Free
Free trial: First month free

A quick, no-nonsense experience
Customisable themes and logos to establish a strong brand identity
Reassurance of a long-standing accounting brand

Summary Based in Newcastle upon Tyne, as of 2017 Sage is the UK’s second largest technology company, the largest supplier to small businesses and has 6.1 million worldwide customers. Its accounting software is best suited for service-based businesses, like builders, contractors and handymen. While it’s good for managing quotes and invoicing, it may lack the functionality needed by more established businesses.

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Sage is one of the biggest brand names in accounting software, and its MTD-ready plans provide a traditional approach for those who prefer a less complicated means to getting HMRC paid on time. Sage is fast, dependable, and you have the reassurance of a trusted brand name in the accounting software space.

Each of the standard Sage Accounting paid plans include access to Sage Copilot, the AI-powered productivity assistant. This can make getting your tasks done more efficient and give you confidence that you’re remaining compliant.

As well as its paid plans, Sage also provides sole traders with its free software: Sage Individual Free. Just be aware that you’re limited to only five invoices per month on Sage Individual Free, so it’s really only suitable for landlords or sole traders with very basic needs.

Pros

Established brand name in the industry
Sage's AI-productivity assistant included in all paid plans
Free plan for non-VAT registered sole traders

Cons

Mobile app isn't quite as strong as competitors
Creating expense reports could be easier
Some niche accounting terminology could be confusing for novices

How much does Sage cost?

Business owners who’re registered for VAT will need to pay for one of the main Sage Accounting plans, which start from £18 (plus VAT) per month. This is on the slightly more expensive end of the spectrum for a starter level plan, but you do get access to both Sage Copilot and payroll on any plan level. Right now, you can also get 90% off your first six months.

Does it have a free version?

Yes, Sage provides Sage Individual Free. This is the no-cost version of its software that’s been specifically made for non-VAT registered sole traders who have really minimal needs, but still need to be MTD ready. Just note that this is a separate product to the main line of Sage Accounting plans, which are the versions we tested here at Startups (you can find out more in our full Sage pricing guide).

You can also upgrade to a monthly subscription of Sage Individual (which costs just £7 plus VAT per month) which will unlock AI-powered expense categorisation, and crucially, will give you unlimited invoice creation (as opposed to the five cap on the free version). However, we would flag that receipt capture is only included at the Standard and Plus plan levels (Xero provides this at all plan levels).

What type of software is it?

Sage is a fully MTD-compliant software that creates digital records. It supports sole trader income sources.

Clear Books: a solid free MTD-ready plan

Clear Books

4.0

Starting price from: Free
Free trial: 30 days

Well-designed search function enables easy access to important information
Efficient and easy customisation, such as quote creation
Easily create new projects with helpful pop-up feature

Summary Started in 2008, ClearBooks is a UK based accounting software firm specifically designed with small businesses in mind. Freelancers, as well as small businesses, could benefit from ClearBooks, mainly thanks to its easy-to-use project creation.

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As of 2025, Clear Books introduced a new plan that provides completely free MTD for Income Tax software (provided you’re a sole trader with only very basic needs). The plan supports sending quarterly updates to HMRC with one click, as well as filing your Year End tax return.

Outside of the free plan, Clear Books doesn’t necessarily have a standout feature like Sage Copilot or QuickBooks’s mobile app, but it’s a solid piece of software that we found had some nice touches. The search function, for example, felt really intuitive to use. However, we did find there was a slightly steeper learning than with other software.

Clear Books might be on the more basic side of things, but the ‘Free’ plan does exactly what it says: provides HMRC-approved completely free software for submitting MTD quarterly updates. It also comes with some bonuses, too, like AI-powered smart coding for better business insights.

Pros

Free plan
You can submit quarterly updates to HMRC with a single click
Built-in AI-powered smart coding

Cons

Slightly dated interface
Limited support hours (9am to 5pm on weekdays)
Bank reconciliation felt clunky compared to competitors

How much does Clear Books cost?

While both landlords and sole traders can start with a Clear Books free plan, there are some missing features you might find a little restrictive. For example, you’ll need to upgrade to the £5 per month (plus VAT) sole trader plan in order to snap and scan bills and receipts.

This paid plan also includes the ability to prepare and send quotes, as well as customise invoices. If you’re registered for VAT, then you’ll need to pay for, at minimum, the £15 per month (plus VAT) plan.

Does it have a free version?

Yes, as we discussed above, Clear Books does a have a completely free MTD-ready plan for landlords and sole traders not registered for VAT. It’s understandably quite limited in terms of features, but from what I could see, it doesn’t have the same 35k per year cap on it that Zoho Books’ free plan does. This means anyone, regardless of their income, can use it without paying a penny.

What type of software is it?

Clear Books is a fully MTD-compliant software that creates digital records. It supports sole trader, UK property, and foreign property income sources.

Types of Making Tax Digital software

Generally, there are two main types of Making Tax Digital software: software that ‘creates digital records’, and ‘bridging software’.

1. Software that creates digital records

This type of software includes full cloud accounting software, and it allows you to create self-employment and property digital records through different methods:

Manually enter your income and expenses into the software
Automatically import your transactions by linking the software to your business bank account
Scanning your receipts or invoices through an app and uploading them

Our recommendations for the best MTD software all fall under this category. They’re particularly helpful as most will likely tick all the boxes you need: you can submit quarterly updates and submit your tax returns to HMRC.

They are comprehensive, coming equipped with multiple tools and features to make your bookkeeping all around more efficient. This type of software is the “all-in-one” solution.

2. Bridging software

This type of software connects to your existing records, rather than being able to create new digital copies. Usually, this existing software is older, like spreadsheets, and given that these outdated methods aren’t HMRC-approved, there needs to be a ‘bridge’ to connect it with the new system. Bridging software fills this role, helping older accounting tools submit information to HMRC through compliant channels.

However, we would say this isn’t the most ideal solution. For one thing, you’ll need to make sure your spreadsheets are fully updated and formatted correctly yourself. This can be very time-consuming and lead to errors. You’ll also be missing out on all the other features of full accounting software, like invoicing and reporting.

You could technically use multiple different softwares together (one for creating and storing records, and one for submitting them to HMRC), but the simplest solution is to go the “all-in-one” route.

These are two main types of MTD software, but you do get niche variations within those categories, such as examples like:

!Coconut: this is ‘full-software’, but is predominantly designed to be used on mobile
Hammock: this is MTD software which has been built to be used by landlords specifically
Monzo: you can get MTD software built directly into your Monzo business bank account

Read next: tax expenses for the self-employed

The digital links rules

The ‘digital links’ mandate is a key rule for MTD. This refers to how data must move between different software programmes or applications during the Making Tax Digital process.

Essentially, what this means, is that once you’ve manually entered information (into a spreadsheet or your accounting software) any further transfer of this data needs to be done digitally, not manually.

For example, actions like “cut and paste” or “copy and paste” are not considered digital links by HMRC and so should not be used. You can find more information about digital links by visiting HMRC’s guidelines.

Does HMRC have its own official software?

No, HMRC does not provide its own Making Tax Digital software. HMRC is the API (Application Programming Interface), and you use your chosen software platform to connect to it. So think of HMRC as the “gate”, and your selected platform as the messenger.

While there isn’t HMRC Making Tax Digital software, HMRC can help you find the right third-party MTD-ready software. You can use HMRC’s finder tool to hunt down the best software for your needs, and double-check it is HMRC approved.

Are there any free Making Tax Digital software options available?

Yes, there are a number of free Making Tax Digital software options available in the UK, including Zoho Books (our top choice for the overall best free accounting software), Sage, and Clear Books. You can find a full list of all the free software by using the HMRC finder tool in the section above. When using the tool, you can adjust the filter menu on the left to further refine your results so that only free software solutions are displayed.

However, a word of caution – even the best free HMRC-approved Making Tax Digital software can be highly limited compared to paid plans. This might be fine if you’re only a sole trader (or landlord) with extremely limited needs, but if you’re planning on expanding in the future, you will need a software platform that will support you and help you manage your cash flow effectively.

Even if you just want to start on free software for now, you should look for platforms that will support future growth, so you don’t need to waste time learning a whole new software platform when the time comes.

How to choose the right software for your business

One of the positives about choosing accounting software is that all the top options have relatively similar offerings, so you can’t go too far wrong. That being said, it’s important to double-check that your chosen platform ticks a few specific boxes before making your choice. Plus, it’s also worth paying attention to the USPs of each software because they all vary and one might better fit your particular situation over another.

The key points to look out for when choosing your software are:

HMRC-recognised: this one should go without saying, but it’s always worth triple-checking that your chosen software has been approved by HMRC. You can go to HMRC directly to confirm this. If your chosen software isn’t HMRC-recognised you could face fines and penalties.
Supports all your income sources: you might be receiving income from multiple sources, such as from self-employment, UK property, or from foreign property. Make sure your chosen software is able to support all the income sources relevant to you.
Supports multiple agents: you may be engaging the services of multiple different agents to assist you with MTD. You should make sure your software can support more than one agent.
Offers receipt/document capture: this specific feature can be a massive time-saver for the self-employed. Some software will allow you to ‘snap and scan’ your receipts for automatic upload, so keep an eye out for this.
User-friendly: there’s a good chance you’ll be spending a lot of time using this software throughout the tax year, so make sure it’s one you’ll find easy to get to grips with.
Syncs up with your bank account: you’ll need to ensure your chosen software can sync up with your business bank account, so you can seamlessly import transactions.

A final point: if you’re running your own business, don’t just think of your software as a way to submit updates to HMRC. You should take advantage of all the features to make your bookkeeping easier. You’ll find that this will be particularly helpful when it comes time to do your small business accounts.

Written by:

Alice Martin Business writer

Business rates revaluation 2026: what does it mean for your business?

New rateable values for businesses will be introduced from April 2026. Here’s what’s changing, what support is available, and what you should do now.

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Published on 3 February 2026

In November 2025, the government announced that business rates would be changing, with the much-anticipated changes including updated rateable values for all non-domestic properties.

From 1 April 2026, these new valuations will be used by councils to decide which multiplier a business qualifies for when determining rates.

Another change is the introduction of a lower multiplier: a positive step on paper. However, this was offset by the less welcome news of the end of pandemic-era reliefs. As a result, many businesses may still miss out on lower rates, particularly if higher rateable values push them above eligibility thresholds.

Therefore, the revaluation of business rates signals an important moment to understand what’s changing, what reliefs are available, and what actions businesses can take ahead of April.

What is the business rates revaluation – and why does it matter?

Business rates are based on a property’s rateable value (the estimated amount the property would rent for each year). Rateable values are reassessed every three years to reflect fluctuations in the property market.

Local councils calculate your final bill by multiplying your rateable value by a government-set multiplier, then applying any reliefs you’re eligible for. This means two things: firstly, that an increased rateable value won’t always translate into higher bills, and secondly, that reliefs can significantly soften increases.

In recent months, business rates have been a hot topic, particularly for largely brick-and-mortar industries such as retail, hospitality, and leisure (RHL).

Major chains, industry voices, and pub landlords have spoken out against unfair and unpredictable business rates, which make it difficult for hospitality businesses to survive in what is already a difficult climate.

What support is available for small businesses?

Properties with rateable values of under £500,000 will now have a permanently lower multiplier, which will be funded by higher rates for properties with higher rateable values.

Alongside this, the government has confirmed it will provide a support package worth £4.3bn over three years. This temporary relief package will replace the current 40% discount on business rates that RHL businesses have received since the pandemic.

The new package is made up of a £3.2bn ‘Transitional Relief’ scheme, including specialised support for hospitality and those paying larger bills. There’s also a ‘Supporting Small Business’ scheme worth over £500m.

Chancellor Rachel Reeves also announced in recent weeks that the government would be providing specialised financial support for pubs, but this will not be expanded to the rest of the hospitality sector.

What should SMEs do now?

You can now view your future rateable value by going to the government’s online business rates valuation service. Here, you’ll also be able to see how your valuation is calculated and flag any errors or inaccuracies before the new business rates system comes into force in April.

It’s crucial to note that you have until the end of March to challenge your current valuation. After that, you’ll only be able to challenge the new valuation.

Given that the business rates conversation is still developing with further reforms on the table, reviewing your valuation early is currently one of the few proactive steps you can take.

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News and Features

Written by:

Alice Martin Business writer

Making Tax Digital for ITSA 2026: The 90-day readiness checklist

If you're still not prepared for Making Tax Digital as a landlord or sole trader, don't panic: just use our simple, easy-to-follow checklist.

Written by

Published on 3 February 2026

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April 6th is just around the corner, which means it’s time for the first wave of eligible landlords and sole traders to move off the old-fashioned tax system, and onto Making Tax Digital for Income Tax Self Assessment (MTD for ITSA). That might sound scarily soon, but don’t panic, as you still have time to get prepared prior to the deadline.

Unlike bigger businesses, sole traders and landlords don’t have teams to support them, so it’s understandable you might be feeling unsure about what you need to do to keep HMRC happy. That’s why we built our checklist to help you get ready before the deadline hits.

We’ll take you through each step of the process, explaining what you need to know, and what you need to do. We’ll cover who’s eligible for the scheme, what the key dates are, and why it’s beneficial to use the best accounting software to be MTD-ready. Now let’s start the countdown, and get you fully MTD-ready in just 90 days.

Download our guide on Making Tax Digital

Download free today

💡Key takeaways

Sole traders and landlords with an annual turnover exceeding £50,000 will be required to start MTD for ITSA starting April 6th, 2026.
MTD for ITSA means that you will be required to keep digital records of all income and expenses, and submit tax updates to HMRC every three months using approved software.
You need to manually register for the scheme through the HMRC website before the deadline, as enrollment is not automatic.
7th August 2026 is the deadline for sending your first quarterly update.
There will be a first-year penalty easement which waives late submission points for quarterly updates during the 2026/2027 tax year.
You need to file separate quarterly submissions for sole trade and rental income if you receive revenue from both sources.

Making Tax Digital: quick overview

Making Tax Digital (MTD) is a government scheme introduced by HMRC to make the recording and paying of taxes more modern by moving to a fully digital system. MTD was first introduced solely for VAT, and has been devised to move away from a single end-of-year tax return and towards a more fluid system.

Ultimately this is all beneficial, as it’s designed to give businesses a real-time view of their finances and make recording and paying taxes easier and more efficient.

MTD for VAT was introduced in April 2022, and now all VAT-registered businesses will be automatically enrolled (the threshold for VAT registration for UK businesses is currently £90,000).

The next stage of MTD, MTD for Income Tax Self Assessment, is set to become mandatory on April 6th 2026 for all sole traders and landlords whose turnover exceeds £50,000 per year.

This will drop to £30,000 in 2027, and then £20,000 in 2028.

Making Tax Digital checklist: how to get ready

If you’re a sole trader or landlord whose turnover for the tax year 2025/2024 exceeds £50,000 per year, but you’re still unclear what you need to do, don’t stress.

We’ve compiled a clear, comprehensive, and easy-to-follow checklist that will take you through all the tasks you need to complete to get ready. If you want to stay on HMRC’s good side, just follow along with the steps we’ve listed below:

Step 1: preparation and setup (countdown: days 90 to 60)

Fail to prepare and prepare to fail. It’s a cliche but it’s accurate, and the first step is make sure you know what your responsibilities are, and that you have the right software in place.

Check your eligibility

Before anything else, you’ll need to check that you qualify for MTD for Income Tax. Just to refresh your memory this applies to the self-employed and landlords whose turnover crosses the threshold of £50,000. To be clear: this is for the tax year 2024/2025. So if you’re unsure, check your 24/25 tax return to see if MTD for ITSA applies to you.

The threshold will then drop each year on April 6th:

6 April 2027: self-employed and landlords who are earning between £30,000 and £50,000 annually.
6 April 2028: the rules above will kick in for the self-employed and landlords who are earning over £20,000.

Audit your workflow: how do you keep your accounts?

Once you’ve confirmed that you’ll be inducted into MTD this year, your next step should be a full audit of your current bookkeeping workflow.

Your workflow will be moving from annually, to quarterly. So you should analyse what your current bookkeeping method is, as you may need to adjust the frequency of your updates.

You will also need to consider how you are currently keeping your records. Are you using spreadsheets or an outdated piece of accounting software to keep your accounts? If so, it’s time to make the switch to HMRC-approved MTD software, or use ‘bridging software’.

What is bridging software?

Bridging software is designed to help business owners keep their old accounting systems, but still meet the requirements to be MTD-approved. This is the name of software that connects your old software to HMRC (acting as the bridge), so you can meet the requirements for quarterly submissions.

However, we would advise that using bridging software isn’t the ideal solution. While you might be hesitant to move onto a brand new system, spreadsheets are becoming outmoded: they require manually adjusting and updating which can lead to errors.

Bridging software also doesn’t cover the regulations around digital record keeping, so you’ll need separate software for this. Bridging software might seem like a tempting solution, as you can keep your current method, and save money, but it might cost you in the long run. Our advice is to move to cloud-based accounting software as soon as possible.

Find the right MTD-ready software

You can find a list of HMRC-approved software using HMRC’s finder tool. Our recommendation is to use full cloud accounting software. It’s efficient, reliable, and will give you access to a host of tools and features that will make your bookkeeping life much easier. The big three in the accounting software space are:

Xero: one of the most popular options amongst accountants and business owners alike, and has a new ‘Simple’ plan that’s cheap and MTD for Income Tax ready
QuickBooks: part of the American multinational company Intuit Inc., QuickBooks has a standout mobile app for managing your books on the move (find out about how much QuickBooks costs)
Sage: a stalwart brand name in the accounting software space, Sage has its own AI-productivity assistant that help you become more efficient (find out more in our Sage pricing guide)

Screenshot of the templates and logos section of Sage

Using a full-accounting software like Sage can make your bookkeeping easier, with a range of customisable templates for invoicing. Source: Startups.co.uk

There are some free options available, such as Zoho Books, which was our number one ranked free accounting software option (though your revenue does need to fall under 35k per year to qualify for the free plan), as well as other free options like Clear Books, or !Coconut Free.

But just keep in mind these free plans can be extremely limiting (such as restrictive caps on invoices or no receipt capture tool), so it can be worth paying for more comprehensive software as it will make your tax life less stressful in the long run.

You’ll also need an option that scales along with you. Even if you’re only a landlord now, there’s every chance you might launch a business in the future.

Read next: our full review of QuickBooks

Xero: the new plan specifically built for sole traders and landlords

Xero's Simple plan is its most affordable yet, and has been made for non-VAT registered businesses

Visit Xero 30-day free trial

Open a business bank account

It’s not a legal requirement to have a business bank account, but it’s highly advised you open one, as trying to separate your business and personal expenses from one account will have you tearing your hair out.

For one thing, most HMRC-approved accounting software enable automatic bank feeds. This pulls all your transactions through to the software automatically, which is a huge time saver for the self-employed…unless its pulling through all your personal transactions through as well. Then you’ll need to go through and untangle it all.

Having a dedicated business bank account will make your bookkeeping so much easier and more efficient, and it also means if you ever have to face an HMRC audit, the process will be much smoother as you’ll only be providing a list of business transactions.

Here’s a tip: you can get a completely free software account with FreeAgent by opening a business bank account with any of the following: NatWest, Royal Bank of Scotland, Ulster Bank or Mettle (and make one transaction per month). FreeAgent is a comprehensive accounting software solution that’s MTD-ready, so this is well worth considering, and great value for money.

Did you know: the 2025 Autumn Budget

Rachel Reeve unveiled the Autumn Budget in November 2025, and it addressed some key points around MTD. The main piece of good news: the government confirmed that those who are joining the scheme this April will not receive any penalty points for late submissions of the first four quarterly updates.

This is to give some leeway to those who are first due to use the new system (but most likely will not apply to those joining the scheme in 2027 and 2028). Just note, this won’t apply to submitting your tax return late for the 2026/2027 tax year. If you submit this late, you will face a penalty point.

Just keep in mind that while there has been an easement on deadline penalties, there has been no change to the requirements on digital record keeping. However, for your first year of the new penalty system, you will be granted an additional 15 days before a late payment penalty is accrued.

Step 2: data migration (countdown: days 60-30)

Now you should begin the process of moving all your data from your old system (spreadsheets and antiquated non-HMRC approved accounting software) to your new cloud accounting software. Once you’re setup on the new software these are some important points to action:

Register for MTD ITSA

This a crucial step, unlike MTD for VAT, you will not be automatically enrolled. You need to to register with HMRC: you can do that directly through HMRC’s website. Make sure you sign up well before the April 6th deadline so you’re prepared. Don’t put this off.

There’s some information you’ll need to prepare ahead of time to be ready for the process:

The same user ID and password you got when you first signed up for Self Assessment
Either your business start date or the date you started receiving property income (within the last two tax years)
Confirmation of the tax year you will begin using MTD for ITSA
You business name (sole traders only)
Your business address (sole traders only)
The trade of your business (sole traders only)

When you first login, HMRC may ask you to provide further proof of your identity. You can do this via a mobile app by taking a photo of yourself, or by answering questions that HMRC has on record about you (drivers license or passport for example).

Categorise your expenses

Within the guidelines of MTD for ITSA, your expenses must be categorised in line with HMRC-specified categories. These are, for the most part, comparable to the same ones you’ll be using for the Self Assessment tax return: SA103F and SA105.

Begin keeping digital records

This is really the core principal of MTD for ITSA, and a legal requirement, so you will need to make sure a digital record of all your business and property income and expenses is created, and kept in your HMRC-approved software.

Once you have selected your chosen MTD-ready software, you will need to begin moving across your bookkeeping data from the spreadsheet (Excel or Google Sheets) to your cloud accounting software. You’ll need to check the compatibility of your chosen software before you start (some will only be able to receive CSV files for example).

To do this, you need to:

Prepare and organise your spreadsheet data into a clean, clear table format: e.g. columns for the date, description, amount, and account.
Backup your data and make a copy before the import, in case anything goes wrong during the process.
Search your accounting software for the dedicated import tool.
During the import, you’ll need to map your spreadsheet columns to the correct data fields in your new accounting software (to make sure everything winds up where it should).
You can now finalise the import (most software will provide a preview before you pull the trigger, so you can check it’s all been pulled through correctly).
Before importing, you should check the data for any errors by comparing it to your bank statements.
If there are any errors or missing fields, you may need to adjust your spreadsheet and re-import the data.

Once your data is imported and you’re up and running, make sure to keep good digital hygiene like: regular bank reconciliation (monthly) and using a data-capture app to automatically snap and upload receipts and expenses into your system.

Ensure you understand the digital links rule

This is a key tenet of MTD for ITSA, and it relates to the way data is transferred during the process. Digital links automatically transfer data between different programs, applications, or products. This ensures greater accuracy, as it eliminates the need to type anything out manually, and it provides a clear audit trail of the data’s journey.

Once you’ve entered any data into the software you use, any further modification or transfer of that data has to be done by an acceptable digital link. That means no copy and pasting, or cutting and pasting, those actions are not deemed acceptable digital links by HMRC. Every piece of software in the journey needs to be digitally linked to together, like a chain.

For example, you won’t be allowed to write down invoice details in a physical ledger, then use the information to manually update a separate part of your software system. All data needs to move digitally. The following are all examples of digital links that HMRC finds acceptable:

Linked cells in a spreadsheet
Moving a set of digital records onto a physical device such as a flash drive or memory stick, which is handed to another person to upload to software
XML, CSV import and export, and downloading or uploading files
APL transfer

You can find more information on digital links from gov.uk.

Time for a trial run (countdown: days 30-1)

By this stage, you’ll have your software authenticated and set up, you’ve signed up with HMRC for MTD for ITSA, and you’re keeping digital records: time to make sure everything is working as it should before April 6th hits:

Set reminders: make sure you’ve got calendar reminders set up before each deadline so you don’t forget. Remember there’s also the final declaration (31st January the year following the tax year you are reporting on).
Confirm your bank feeds are working: don’t wait until the last minute to connect your business bank account to your software. Connect your bank in plenty of time to ensure it’s pulling through the right data.
Try running a mock report: some accounting software allows you to run practice reports. Find out if your system allows you to do this, and create a mock report for the first quarterly submission (January to March). Investigate it thoroughly. Does everything look right? Are there any discrepancies?

It seems like a lot, but as long as you follow our checklist, and tick it off as you go, you can’t go too far wrong. But if you’re feeling unsure, you should speak to your accountant for any advice on getting MTD for ITSA ready. If you don’t have one, you can use our guide to finding an accountant.

Did you know: MTD for VAT has already started

The deadline for MTD for ITSA might be fast approaching, but the Making Tax Digital for VAT is already in effect. All businesses that are VAT-registered will already be using Making Tax Digital, as it became mandatory in April 2022.

If your business is over the £90,000 threshold, then you refer to our guide on how to register for VAT. If you don’t need to register yet, it’s still worth getting up to speed on what VAT actually is.

Key deadlines

In order to avoid fines, penalties, and stress, you need to know all the key dates for MTD for Income Tax, beyond just the April 6th deadline. You can refer to the table below which contains all the critical milestones and what you need to do by when:

What you need to do	Deadline
Submit a Self Assessment tax return for the tax year 2024 to 2025	31 January 2026
You must start keeping records using MTD for Income Tax compliant software	6 April 2026
Deadline for sending your first quarterly update	7 August 2026
Deadline for sending your second quarterly update	7 November 2026
Deadline to submit a Self Assessment tax return the usual way for 2025 to 2026	31 January 2027
Deadline for sending your third quarterly update	7 February 2027
Deadline for sending your fourth quarterly update	7 May 2027
Deadline for sending your first quarterly update for 2027 to 2028	7 August 2027
Deadline for sending your second quarterly update	7 November 2027
Deadline to submit your tax return straight from MTD for Income Tax software for 2026 to 2027	31 January 2028
Deadline for sending your third quarterly update	7 February 2028
Deadline for sending your fourth quarterly update	7 May 2028

Make sure all these dates are in your business calendar, with reminders set up. But the key part to remember: there are four quarterly updates to hit:

Q1 (April to July): Due 7 August
Q2 (July to October): Due 7 November
Q3 (Oct to Jan): Due 7 February
Q4 (January to April): Due 7 May

Then the final declaration on January 31st.

Must-haves for MTD compliance

You might be feeling a little overwhelmed by this stage, but don’t worry, let’s go over the things you absolutely need before April comes around. Think of this like going to the airport – it’s not the end of the world if you forget to pack a spare pair of shorts, but your passport and plane ticket are essential. Your must-haves for MTD are:

HMRC-compliant software: you can use ‘bridging software’ to connect spreadsheets and other outdated systems to HMRC but our recommendation is to use MTD-ready cloud accounting software.
Digital-record keeping: you’re required to keep digital copies of all your business and/or property income and expenses. This is a non-negotiable, so no more records kept in physical journals.
Quarterly-updates: instead of the Self Assessment tax return, you will need to send tax updates to HMRC every three months, and then an end-of-year digital declaration.

So just remember, as long as you have HMRC-approved software, you’re keeping all records digitally, and you’re submitting your updates to HMRC quarterly, you should be in the clear.

Sage: get started on MTD-ready software absolutely free

With Sage Individual Free, non-VAT registered sole traders can be MTD-compliant for £0

Visit Sage Start for free

Essential need-to-knows

Tax can, unsurprisingly, get quite complex. We’ve gone over the essential points in our checklist but there’s still some important information that could effect you as a taxpayer.

The penalty system

As we’ve mentioned, there’s a new penalty system in place for MTD. It’s a points based system, similar to a driver’s license. You receive penalty points for late submissions, and once you’re reached four points you will be charged a £200 penalty fee.

As we’ve also mentioned though, there is an easement on penalties for the first year of the system. Penalty points will not be issued for late quarterly updates submitted in the 2026/2027 tax year. However, while the point-based late penalties might have been waived for the initial first year, it’s crucial to note, interest on late tax payments is still applicable.

It’s also crucial to remember that points accrued for income tax are different for points accrued for VAT (you could, in theory, get hit with a double-fine).

The joint-property rule

There’s an important rule for landlords who joint-own property to know: if you own a rental property with your partner, it’s only your share of the gross income that counts toward your £50k threshold. So you only need to keep digital records and submit updates about your share of the income of joint-owned property, not the total.

Separate submissions

If you’re both a landlord and a sole trader (let’s say you’re running your own side hustle, but you also receive income from a rental property), you can’t declare all your income on one submission. You need to file two separate quarterly submissions: one for your sole trade and another for the rental business.

Registering in advance

If you’re a sole trader or landlord whose turnover is under £50,000, but you want to get used to the system ahead of time, you can join up early. You can still apply to become part of MTD for ITSA for 2026/2027, and it may be a smart way to get your head around the system while the penalty easement period is in place.

“Am I exempt?” quick-check

It is possible to get an exemption from Making Tax Digital for Income Tax, but only under specific circumstances, such as it not being deemed reasonable for you to use the compatible software and you are ‘digitally excluded’.

There are a number of reasons you might feel digital exclusion applies to you, such as (but not limited to):

Your age, health issues, or a disability prevents you from using the appropriate technology
You are a practicing member of a religious society or order who’s beliefs prevent them from using digital communications and keeping digital records
You can’t access the internet due to geographic location, and cannot find a suitable alternative

You can find more information, and apply to be granted exemption, by contacting HMRC directly.

Just note, before applying, HMRC has made it clear which excuses won’t result in an exemption:

You’ve previously filed a paper tax return and you’d prefer to keep doing so
You don’t know how to use accounting software (but you can find out which software is the most beginner friendly in our roundup of the best self-employed accounting software)
You only have a small number of digital records to keep each year
It will take time and money for you to switch to MTD for ITSA

HMRC does consider all applications for exemption on a case-by-case basis.

Summary: take the stress out of tax time

This might all seem a bit stressful now, but it’s ultimately a positive step for taxpayers, as it makes paying tax more modern and gives you a real-time look at your financials. There will be a teething period, but the key points to remember are simple: you need HMRC-approved software, you need to keep digital records, and you’ll be sending updates every three months.

You might hit a few speed bumps as you go but by getting into the habit of sending updates quarterly, rather than at one big pressure point in the year, you’ll get to know your financials better, making it easier for you to keep business accounts overall.

Compare deals: find the best accounting software for you

Get quotes from a range of top accounting software platforms, to see which is the best fit your business

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Written by:

Alice Martin Business writer

80+ FREE business events to check out in February 2026

Ready to find your perfect match this February? Here are 84 free networking events around the UK to help grow your business circle.

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Published on 3 February 2026

With Valentine’s Day just a few weeks away, matchmaking season is officially about to begin.

For business owners and entrepreneurs, this doesn’t mean coffee shop dates or long walks along the beach. Instead, it’s about making the right connections through networking.

Whether it’s meeting future partners, finding new ideas, or simply getting in the same room with like-minded business owners, the right connections can lead to real opportunities.

To help you find your “perfect match”, we’ve listed 84 business events around the country to get yourself out there — all completely free to attend.

Jump to your closest city:

Free business events in London this month
Free business events in Newcastle this month
Free business events in Leeds this month
Free business events in Sheffield this month
Free business events in Manchester this month
Free business events in Liverpool this month
Free business events in Birmingham this month
Free business events in Nottingham this month
Free business events in Cambridge this month
Free business events in Oxford this month
Free business events in Bristol this month
Free business events in Cardiff this month
Free business events in Edinburgh this month
Free business events in Glasgow this month

Free business events in London this month

Start Up Wandsworth Coffee Mornings at Putney Library (2nd February at 10:30am): if you’re after relaxed networking, this free coffee morning is a great chance for entrepreneurs to meet each other, share ideas, and connect in a comfortable and friendly space.
NatWest Accelerator Morning Mixer at NatWest Accelerator Hub (3rd February at 9:30am): a monthly event held by NatWest Accelerator, bringing founders and entrepreneurs together to connect, recharge with complimentary Nespresso coffee, and share ideas during fun brainstorming sessions.
HUSTLE London Canary Wharf London Entrepreneur Networking Event at The George (3rd February at 5:00pm): a relaxed monthly meetup to connect with mentors, employers, and advisors — all while building relationships that support your business growth. Also being held at Liverpool Street on the 10th. For over 25s only.
WBA 2026 Mix & Mingle Event – Wandsworth, Southfield & Earsfield at Gravity (3rd February at 6:00pm): a free event for Wandsworth-based businesses to connect with other entrepreneurs and members of the Wandsworth Chamber and Council, learn from guest speakers, and find out about entering the 2026 Wandsworth Business Awards. Also being held at Battersea, Clapham Junction, and Nine Elms on the 10th.
NatWest Accelerator Female Founder Networking at NatWest Moorgate (4th February at 10:00am): this one’s for the ladies — offering a relaxed and welcoming get-together where female entrepreneurs can meet fellow founders, make real connections, and share experiences over tea and coffee.
Harrow Ladies Who Latte at Cafeto (12th February at 10:00am): a friendly coffee meetup for local female founders to expand their network and build relationships that support long-term growth. Also being held at Brockley on the 13th and Liverpool Street on the 19th.
Hounslow Business First Networking Event at Feltham Library (17th February at 9:30am): held by the Hounslow Business First programme, this free event is all about offering local entrepreneurs, sole traders and startups the opportunity to discover the free support available to them and connect with other businesses in a friendly and relaxed environment. Refreshments will be provided.
Tech Startup Networking London – Series A/Venture Capital Networking Event at Archer Street Soho (17th February at 7:00pm): created for tech startups ready to scale, this networking event connects founders with potential business partners, clients, and experienced angel investors. Strictly for over 25s with a smart dress code required.
Startup Events London: Founder Institute Pitching Final & Networking at Barclays Rise (24th February at 6:30pm): this free event kicks off with five startups pitching their business ideas to a panel of experienced judges offering on-the-spot feedback before choosing a final winner. Networking will follow afterwards, giving entrepreneurs the chance to meet with 150+ potential connections, including other business owners, investors, and industry experts.
Start Up Greenwich Coffee Mornings at Woolwich Centre Library (25th February at 10:30am): taking place on the last Wednesday of the month, this free event offers a relaxed space for business owners and entrepreneurs to connect, share their journeys, and find practical solutions to challenges they face.

Free business events in Newcastle this month

Motivation Monday: Coffee, Connection & Kickstart at The Lumen, Floor 4 (2nd February at 9:30am): if you need a little extra motivation on a Monday morning, this free event provides a friendly and welcoming space for networking over tea or coffee. Attendees can also join a goal-sharing circle to share their goals for the week, and take advantage of free coworking until 5pm.
Slice & Social: Create With Purpose at Adamson House (5th February at 6:00pm): along with complimentary pizza, Slice & Social’s free event offers the chance for social enterprises and sustainability-focused businesses to meet with like-minded individuals, find collaborators, and discover ways to implement changes in your business that help the environment. Also includes a panel of guest speakers.
PLATFORM at Crowne Plaza Newcastle (20th February at 9:00am): gives local entrepreneurs the opportunity to connect with fellow business owners, investors, and potential partners — while exploring ways to grow their business. Also features short elevator pitches and fireside chats. Tea, coffee, and refreshments are provided.
Blackfriars Speed Networking at Blackfriars Restaurant (26th February at 9:00am): like speed dating, but instead of trying to find a romantic partner, it’s all about finding the right business connection. You’ll be paired up with your first contact for your two-minute pitch before moving on to the next at the sound of the hooter. Tea and coffee are provided.
HUSTLE Newcastle Entrepreneur Networking Event at All Bar One (26th February at 5:00pm): bringing the vibe of its London edition to the North, HUSTLE is a laid-back meetup for founders and entrepreneurs to connect with mentors, advisors, and potential partners. For over 25s only.

Free business events in Leeds this month

NatWest Accelerator x Nespresso: Morning Mixer at NatWest Accelerator Leeds (3rd February at 10:00am): held every month, NatWest Accelerator’s free event brings founders and entrepreneurs together to connect, recharge with complimentary Nespresso coffee, and take part in collaborative brainstorming and idea-sharing sessions.
ElevateHer Networking Event at Habbibi (4th February at 12:00pm): a relaxed and welcoming networking event for female founders and professionals to exchange ideas and expand their network. No pressure or pitches — just genuine conversations and connections.
Leeds – Small99’s People, Planet, Pint ™ Sustainability Meetup at North Bar (5th February at 6:00pm): a chance to connect with other sustainability-focused business owners at this free and relaxed networking event. No need to pitch your business either, just valuable and practical insights.
Women’s Investor Network: Coffee, Connection, & Collaboration Meetup at Galleria (10th February at 11:00am): this free event offers a welcoming space for female entrepreneurs, freelancers, and startups to come together, share ideas, celebrate successes, and openly discuss challenges.
Get Connected | Leeds at Clockwise Leeds (12th February at 10:00am): a casual B2B networking event for businesses in Leeds and the surrounding area. There’s no set agenda or elevator pitches either. Simply turn up, chat with others, and connect with like-minded professionals.
The Curve’s Thursday Networking Event at Avenue HQ (12th February at 6:00pm): a free event specifically for tech startups and professionals, providing an evening of networking with industry leaders and discovering ways to transform your business. Drinks and snacks are provided.
HUSTLE Leeds Entrepreneur Networking Event at Manahatta Greek Street (19th February at 6:00pm): focuses on relaxed and social networking — offering founders and business owners the chance to meet mentors, advisors, and future collaborators. For over 25s only.
Entrepreneur Social Networking at The Decanter (24th February at 5:00pm): a no-pressure business event where local entrepreneurs and founders can connect with potential clients, investors, future hires, and industry experts.

Free business events in Sheffield this month

Sheffield – Small99’s People, Planet, Pint ™ Sustainability Meetup at Triple Point Brewery + Bar (12th February at 6:00pm): a free and friendly meetup for business owners passionate about sustainability, with opportunities to network, exchange ideas, and get practical tips — no pitches involved.
National Networking Week – Coffee Networking at Cutlery Works (19th February at 11:00am): offering “coffee-fueled networking”, BNI Pioneer’s free event promises a morning of connecting, collaboration, and growing your professional network — whether you’re just starting a business or already a seasoned professional.
The Business Collab: Sheffield Networking at The Hope Centre (19th February at 11:00am): whether you’re looking for new partners, collaborators, or just want to grow your business circle, this free event is the perfect opportunity to meet fellow founders, exchange ideas, and make genuine connections.
Entrepreneurs Circle – Business Networking at Crowne Plaza Royal Victoria (19th February at 6:00pm): a free event focused on supporting business growth, this is ideal for entrepreneurs and startups who want to connect with others and receive practical marketing strategies to attract more customers and boost sales.
Business Networking Breakfast at electric works (24th February at 9:30am): a great opportunity for Sheffield-based entrepreneurs to connect with like-minded people, plus get support on business funding, recruitment, training, and more. Tea, coffee, and pastries are provided.
marketingSHOWCASE Sheffield at Bramall Lane (24th February at 10:00am): promoting itself as a “day packed with inspiration, innovation, and practical advice”, this free showcase offers the opportunity to connect with leading marketing suppliers, learn from industry experts, and network with professionals from some of the UK’s most recognisable brands.
The Growth Company – Partner Networking Morning at St. James House (24th February at 10:00am): an energising in-person event, where local professionals can make meaningful connections with third sector organisations, social enterprises, health and wellbeing providers, and employability professionals.
Startup Social: Sheffield at Hideaway (26th February at 6:00pm): open to founders and entrepreneurs from all backgrounds, Startup Social is a monthly get-together where business owners can connect, share what they’re working on, and meet potential collaborators — no pitches or panels involved.

Free business events in Manchester this month

NeuroNetwork MCR Business Networking February at Manchester Central Library (4th February at 1:00pm): a welcoming space where local neurodivergent entrepreneurs can connect, share ideas, and support each other through the ups and downs of running a business.
Accelerator Community Social at NatWest Accelerator Manchester Hub (5th February at 3:00pm): a monthly event for local entrepreneurs to recharge, reflect, and connect with like-minded people. Also includes founder-focused group activities like Founder Roulette and Walk & Talk. Refreshments are provided.
Ukrainian Business Community Meet Up at Business & IP Centre, 2nd Floor (5th February at 5:00pm): an event created for Ukrainian entrepreneurs who want to start a business in the UK, offering a chance to connect with others, hear real-life stories from guest speakers, and get practical advice.
Business Networking Through Golf at Sale Golf Club (6th February at 8:30am): a networking event with a golfing twist, bringing like-minded professionals together on the course, with complimentary coffee and bacon sandwiches (or dietary alternatives) provided.
Smiley Happy People: Networking For Inspirational Business Owners (Feb) at The Con Club (10th February at 9:30am): aside from its play on the REM classic, this free event offers open and informal networking, as well as a table discussion to talk about all things business.
Dream. Start. Grow: Community Entrepreneurship Event at Forum Centre (28th February at 12:00pm): wherever you are in your business journey, this free event promises a “day filled with inspiring talks, networking opportunities, and workshops” — a fantastic opportunity to make meaningful connections and learn from industry experts.

Free business events in Liverpool this month

Bold B2B Business Breakfast at Nova Scotia Liverpool (3rd February at 9:00am): start your morning with inspiring talks from guest speakers and plenty of chances to network with fellow entrepreneurs and professionals. Complimentary coffee is provided.
Sakhi Hustle – Coworking Tuesdays at 92 Degrees Coffee (3rd February at 11:00am): a chance to take a break from your usual workspace with free coworking, networking with other entrepreneurs, and complimentary WiFi. Tea, coffee, and snacks are available on purchase.
NEW-GEN NETWORKING BUILDING BUSINESS CONNECTIONS at One Fine Day & Little Leaf (3rd February at 7:00pm): a weekly free event, offering local founders and business owners the opportunity to meet like-minded individuals in a relaxed and enjoyable environment.
The pop-up office and social meetup at Novotel Paddington (5th February at 9:30am): hosted by Jelly Liverpool, this “pop up office” lets local founders and business owners escape their usual setup, work in a new environment, and connect with fellow entrepreneurs.
Free Coworking and Business Networking at Bean Coffee (26th February at 9:00am): another event by Jelly Liverpool, giving founders the chance to step out of their everyday workspace and into a welcoming coworking space, where they can meet other business owners and get work done at the same time. Free WiFi and desk space are included.

Free business events in Birmingham this month

NatWest Accelerator Morning Mixer at 2 St Philip’s Place (3rd February at 9:30am): start your day by joining fellow founders for a relaxed morning of networking, group sessions, and idea sharing — plus free Nespresso coffee to fuel the conversations and brainstorming.
Speed Networking at John Cadbury House – Aston University (4th February at 10:00am): taking a similar format to speed dating, Aston Centre’s free event is all about helping founders and entrepreneurs find “the one” through speed networking in a welcoming and informal setting. Coffee is provided.
Brummies Networking – Free Business Networking at Grosvenor Casino Broad St (10th February at 11:00am): a laid-back networking meetup focused on genuine conversations with no pitches involved. Tea and coffee are provided.
FindaBiz New Venue at Kings Arms Sutton Coldfield (10th February at 6:00pm): offers open and transparent networking without pitches or pushy sales — just the opportunity to grow your network. Free refreshments are provided.
Enterprise Networking Event at Soho House Museum (11th February at 12:00pm): a networking lunch for founders and entrepreneurs of all backgrounds to meet up, share ideas, and discover the support available through Legacy WM’s enterprise programme.
HUSTLE Birmingham Entrepreneur Networking Event at Manahatta Temple Street (19th February at 6:00pm): HUSTLE brings founders, creators, and innovators together to connect, swap ideas, and form the relationships that drive business growth.
Coworking & Networking Day at Assay Studios (25th February at 9:00am): whether you’re running a business or working as a freelancer, TCN UK is offering a day to work and connect with fellow professionals in the stylish space at Assay Studios.
Birmingham Networking Social at Barbara’s Bier Haus (26th February at 5:00pm): offering a cosy and welcoming vibe, this free event gets local founders, business owners, and startups together for a relaxing networking social — no pitches or speeches involved.

Free business events in Nottingham this month

KuKu Connect – Business Networking at ARC Space (11th February at 6:00pm): with no pitches or presentations, KuKu Connect promises to bring valuable business connections through open networking in a fun and informal setting. Complimentary refreshments are provided.
Partners and Pastries – Business Networking Event at Shakespeare Martineau Solicitors (12th February at 8:00am): a free business event offering networking opportunities, plus five 90-second pitches from chosen businesses and startups. You can contact TBAT Innovation directly if you want to pitch your business.

Free business events in Cambridge this month

Mindstone Cambridge February AI Meetup at The Bradfield Centre (5th February at 6:00pm): a free event held by Mindstone from the Startups 100 for 2026 Index — providing startup founders eager to leverage AI technology in growing their business with the opportunity to explore innovative projects and gain insights shared by leading industry experts.

Free business events in Oxford this month

PeopleOps Oxford: Tea, Coffee, Pastries and Talks – February Event at Business and Intellectual Property Centre Oxfordshire (BIPC) (5th February at 10:00am): for businesses and entrepreneurs looking for more human resources (HR) knowledge, this free event is the ideal place to start — offering a morning of networking with professionals and talks from seasoned leaders. Breakfast is provided.
Cultivate Growth: Capitalising on Trade Secrets & IP at Grassroots Workspace (11th February 12:00pm): a networking event for those looking to grow their startup, explore new markets and strengthen their leadership skills. Lunch is provided.
Data Meetup at Business and Intellectual Property Centre Oxfordshire (BIPC) (12th February at 6:00pm): a free event co-hosted by Humand Talent Solutions — connecting businesses with tech and data professionals. Guest speaker details to be announced.
Startup Huddle Oxford at Business and Intellectual Property Centre Oxfordshire (BIPC) (19th February at 6:00pm): Startup Huddle is one of the UK’s largest monthly meetups for entrepreneurs, with its free event including two startup showcases, a Q&A session, and plenty of opportunities for networking. Hot and cold refreshments are provided.
Mind The Gaps: Building Teams from Seed to Scaleup at Business and Intellectual Property Centre Oxfordshire (BIPC) (26th February at 4:00pm): whether you’re early in your business journey or already a seasoned entrepreneur, this in-person event offers insights into how to hire senior executives, including the recruitment process, share options, your role in building the early team, and more. Also includes networking opportunities.

Free business events in Bristol this month

NatWest Accelerator Morning Mixer at NatWest Accelerator (3rd February at 10:00am): held monthly, the NatWest Accelerator Morning Mixer gives founders and entrepreneurs a space to connect, fuel up on free Nespresso coffee, and share new ideas together.
Freelance Mum Netwalk South Bristol: Business Networking at Greville Smyth Park (10th February at 10:00am): mixing networking with a stroll around the park, the Freelance Mum Netwalk gives parents in business the chance to meet others while enjoying the outdoors with their little ones. Also being held at The Gloucester Old Spot on the 26th and Ashton Court Mansion on the 27th.
South Glos Co-Working Club at Bristol & Bath Science Park (10th February at 10:00am): a flexible drop-in day giving entrepreneurs and business owners the opportunity to work in a new environment, meet fellow professionals, and access one-to-one support from a Cool Ventures business mentor.
Bristol – Small99’s People, Planet, Pint™ Sustainability Meetup at Clubhaus Harbourside (10th February at 6:00pm): a free event bringing business owners together to explore sustainability, share practical tips, and network in a relaxed and pitch-free environment.
Bristol Business Club Lunch at The Square Club (18th February at 12:15pm): whether you want to catch up with existing connections or make new ones, this free event is a great opportunity to build valuable professional relationships in a welcoming and informal space.
SETsquared Lunch Connect at Engine Shed (25th February at 12:00pm): a chance to network with Bristol’s tech community — perfect for startups and tech-savvy businesses. Includes networking, new members’ pitches, and the “Success of the Month” award.
The Co-Work Collective at Bristol & Bath Science Park (26th February at 10:00am): aiming to ease the loneliness that can come with starting a business, this free coworking day provides local professionals with a new workspace and the chance to connect with others. Three hours of complimentary WiFi are included.
Meet up at Ye Shakespeare (26th February at 12:00pm): hosted by Rhoda Bran and Duncan Russell of Miint Marketing, this lunchtime networking event brings local businesses together to connect, collaborate, and energise their day.

Free business events in Cardiff this month

Meet and Mingle: Meet the Graduate Entrepreneurs at Cardiff Metropolitan University (3rd February at 6:00pm): whether you’re new in your business journey, a seasoned entrepreneur, or just exploring an idea, the Meet and Mingle event is a chance to hear from Cardiff Met graduates who set up a business during their studies. Also includes networking opportunities. Guest panel to be announced.
Cardiff – Small99’s People, Planet, Pint™ Sustainability Meetup at The Canopi (11th February at 5:30pm): a free, casual meetup where business owners can learn about sustainability and connect with like-minded people — all in a relaxed and pitch-free environment.
Cardiff Business Networking at iungoworks (19th February at 5:30pm): with the aim of offering an “un-networking” experience, iungoworks’s free event is ditching long pitches, long speeches, and awkward introductions — offering open networking with no agenda to allow business owners to unwind and connect without the formalities.
CBL Cardiff Breakfast Meeting at The Coach & Horses Hotel & Restaurant (27th February at 7:30am): this monthly breakfast meetup brings Christian business leaders together to network, exchange ideas, and discuss the realities of today’s business world. Tea and coffee are provided.

Free business events in Edinburgh this month

ConnectED, Edinburgh Business Networking at Hotel Indigo (3rd February at 8:30am): a weekly networking meetup held every Tuesday that connects founders with a wide-ranging community of entrepreneurs, consultants, SMEs, charity leaders, agencies, and corporate professionals.
Royal Bank Accelerator Morning Mixer at RBS Accelerator Hub (3rd February at 9:30am): a lively morning get-together where founders and entrepreneurs can connect, recharge, and find new ideas. Along with complimentary Nespresso coffee, attendees can enjoy founder-led activities focused on brainstorming, sharing insights, and celebrating progress.
She Scales at RBS Accelerator Hub (11th February at 9:30am): a free event designed for female founders, offering a supportive space to connect, share ideas, and learn from the experiences of other professionals.
Accelerator Evening Social at RBS Accelerator Hub (19th February at 3:00pm): promising an “evening of connection, fun, and community”, this free social networking event allows you to network with like-minded individuals and engage in interactive games and surprises. Light refreshments will be provided.
Edinburgh – Small99’s People, Planet, Pint™ Sustainability Meetup at Innis & Gunn (19th February at 6:15pm): a chance for local businesses to discover how to be more sustainable, connect with like-minded professionals, and share ideas. No pitches involved.
Greentech February Meetup at CodeBase Edinburgh (24th February at 9:00am): designed for greentech businesses — or those looking to become more sustainable — this monthly meetup offers the chance to connect with others in the space and learn from a greentech specialist. Breakfast is provided.
Coffee Connections Edinburgh at The Alchemist (25th February at 9:30am): this popular Edinburgh business event provides open networking opportunities for entrepreneurs at every stage — from first-time founders to experienced professionals. Please note that tickets are only free for your first visit, or if you become an EC member.
Bright Light Breakfast Event at Coffee Saints (27th February at 8:30am): if you hire employees in your business, the Bright Light Breakfast Event is an opportunity to network with others while learning how Bright Light can help you and your team with mental health, wellbeing, and building a better organisational culture.

Free business events in Glasgow this month

Royal Bank Accelerator Morning Mixer at Accelerator Hub, 4th Floor (3rd February at 9:30am): a fun and relaxed morning mixer, complete with complimentary Nespresso coffee. Also includes collaborative brainstorming, idea sharing, and a supportive space to celebrate wins.
8BN and Club Synergy Outdoor Networking at Doulton Fountain (The Peoples Palace) (6th February at 10:30am): as part of a collaboration between 8 Business Networking and Club Synergy, this monthly netwalk brings local entrepreneurs together to connect while enjoying some fresh air. Dogs and children are welcome.
No Procrastination Station at Clayton Hotel (11th February at 9:30am): as the name suggests, this event offers tailored workspaces designed for concentration and keeping distractions to a minimum. Also includes a coffee and chat, and networking lunch sessions for a chance to meet with other like-minded people.
RBC Networking Meeting: Building Connections at Alea Casino (11th February at 11:00am): the Revitalise Business Club aims to bring local businesses together, offering a free event for attendees to meet fellow founders and build new relationships. Includes 30-second introductions and a talk table segment to help everyone get to know each other.
Connect Networking at Cinema de Lux (12th February at 10:00am): providing “focused but informal networking”, this free event is open to any B2B businesses, whether to make new connections or revisit old ones — offering the opportunity to meet like-minded individuals and expand your network in an engaging space.
Glasgow – Small99’s People, Planet, Pint™ Sustainability Meetup at Malones Irish Bar (12th February at 6:00pm): at this free meetup, business owners with an interest in sustainability can connect with others, exchange ideas, and learn practical tips in a pitch-free setting.
8 Business Networking Coffee Morning FEB at The Alchemist (18th February at 9:30am): a well-known event for its fun and friendly atmosphere, this coffee morning gives Glasgow-based businesses the chance to meet new contacts, build relationships, and pick up useful tips on networking more effectively. Please note that tickets are only free for your first visit, or if you become a 8BN member.
She Scales at Royal Bank Accelerator Glasgow (27th February at 9:30am): built for female founders and leaders, this meetup combines coworking and networking in a supportive environment. This month’s guest is Dr Antje Bothin on how female entrepreneurs and business owners can speak up with confidence. Coffee and pastries are provided.

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Written by:

Alice Martin Business writer

The future of hospitality depends on SMEs, but finance holds them back

SMEs are “the primary source of dynamism and resilience” in the hospitality industry according to Peter Lochbihler, but financing needs an overhaul.

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Published on 3 February 2026

Peter Lochbihler, the Global Director of Public Affairs for Booking.com, has called for better access to resources – including capital – for SMEs to help them better compete with big brands.

Lochbihler, a key figure in the hospitality industry, said that small hospitality business owners pack as much of a punch as big companies’ leaders when it comes to capability and ambition, while providing “diversity, innovation, and regional cohesion” that big brands simply can’t deliver.

However, with confidence among hospitality businesses low and costs high, Lochbihler argued that more needs to be done to help SMEs get financing to take advantage of their strengths.

Inability to access finance blocks innovation

In his op-ed, published by Hospitality Net, Lochbihler stated that “access to finance remains the most visible dividing line” between SMEs and the larger chains. He added: “While larger hotels report relatively easy access to funding, SMEs still face tighter credit conditions and smaller margins for experimentation.”

It is experimentation – the ability to offer something unique and diverse – that sets SMEs apart. The inability to get the funding they need stops small businesses from innovating, which is essential to counter the impacts of the difficult climate in the UK, currently fuelled by high business rates and high staffing costs. The alcohol duty increases from February 2026 are also causing some consternation.

While some savings are predicted with the upcoming implementation of the much debated Workers’ Rights Bill and licensing reforms, Lochbihler, among others, suggested that the financing models need to be changed wholesale in order for SMEs to flourish in hospitality.

Another voice calling for better access to funding

While the op-ed looks at the hospitality industry across Europe, in recent months, there have been increasingly loud calls in the UK specifically for financing for SMEs to be overhauled.

There have been calls this week to reform the Bank Referral Scheme, as it is not delivering the impact hoped for SMEs. And last week, a group of Labour backbenchers announced a bill that would see banks required to up their lending offerings for small businesses, and also be held accountable for their impact.

Former business minister Gareth Thomas tabled the bill, and commented on LabourList: “Thousands of small and medium-sized businesses are currently locked out of the finance they need to grow […] Too many are left without advice, support or a fair chance to turn good ideas into thriving businesses.”

Lochbihler reiterated this, determining that skills and access to finance are the base of the growth pyramid for SMEs. He wrote: “Without vocational and digital capabilities – and reliable, affordable capital – SMEs cannot modernise or scale. This is the groundwork on which everything else rests.”

Reasons to fund hospitality SMEs

With finance reform, Lochbihler argues that SMEs can continue to do what they are good at – namely, offering a unique customer experience and differentiation from the chain brands, and with this, achieve higher profitability and better resilience, and create more diversity and innovation in the sector.

With huge technological change happening now, SMEs must be on board to take advantage of the possibilities. “A new wave of travel technologies – from artificial intelligence and data analytics to augmented and virtual reality – is reshaping the accommodation industry,” he wrote.

However, implementation costs and the challenges of integration and finding expertise are holding small businesses back. Again, these are issues that improving access to financing and lowering the compliance burden can mitigate.

The overall message? If SMEs can get better financing, they will be able to compete with large chains – and this is necessary for hospitality as a sector to thrive.

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

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Written by:

Alice Martin Business writer

Could “kidults” cushion the impact of a social media ban on online stores?

The Government consultations on a social media ban for under-16s could impact ecommerce, but the growing “kidult” market could be a lifeline.

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Published on 3 February 2026

Earlier this week, the UK Government announced that it would be consulting on a social media ban for children under 16.

Following Australia’s ban in December 2025, the Government says that this proposal is to “protect young people’s wellbeing and ensure safer online experiences”.

But while some experts and charities have voiced concerns about the proposal, ecommerce businesses could also see an impact on their sales — particularly those that rely on young children as a target audience.

With millions of children using social media platforms, restrictions could force brands to rethink how they reach younger audiences.

However, with the rise of adults buying kids’ toys and collectibles, it could also be an opportunity for businesses to turn their focus to adult collectors who spend for fun and nostalgia.

What is the social media ban proposal?

Building on its Online Safety Act, the Government is developing a plan to improve children’s online wellbeing and protect them from harmful content.

This includes consulting on whether to set a minimum age for social media access, or even explore a potential ban for children under a certain age, strengthening age assurance and verification, and looking at restricting addictive platform features (such as infinite scrolling).

Technology Secretary Liz Kendell commented: “Through the Online Safety Act, the government has already taken clear, concrete steps to deliver a safer online world for our children and young people.”

This consultation follows just a month after Australia announced its ban on social media for under 16s. In the country, anyone under this age can no longer keep or make accounts on platforms like TikTok, Instagram, YouTube, or Snapchat.

The impact on ecommerce and online retailers

The Government’s consultation was only released this week, and no measures have been enforced yet.

However, if the ban were to move forward, this could significantly affect sales for online retailers — including social commerce platforms like TikTok Shop and Instagram Shop.

Melissa Symonds, Executive Director of UK toys at Circana, notes that online platforms like TikTok are increasingly shaping trends and consumer demand, and that toy companies are closely watching developments following Australia’s ban and the UK’s considerations.

“If bans were introduced more widely, manufacturers and retailers would need to rethink how some products are marketed,” she said.

This could mean changing from child-focused social media campaigns to advertising on channels targeting parents or caregivers, investing in other channels (such as email marketing), and adapting branding to appeal to a broader family audience, rather than directly to children.

Kidults” could help offset sales losses

If a social media ban were to be enforced for under-16s, the rise of adults buying kids’ toys and collectables — known as “kidults” — could potentially make up a portion of sales. If you run a toy or child-centred business, you could help to offset losses from younger audiences by implementing new marketing strategies aimed at this growing demographic.

In November 2025, Circana reported that the UK toy market reached £3.9bn. Kidults accounted for £1 in every £3 spend — equalling £1.2bn of the total toy spend. It also found that 43% of young adults had purchased a toy either for themselves or another adult.

What’s more, research by Limelight Digital found that 18 to 24-year-olds were the most dominant age group on TikTok, accounting for 32.8% of the platform’s user base — creating an opportunity for online stores to target young adult consumers with trend-driven products.

For example, cuddly toy brand Jellycat overtook LEGO as the most searched-for toy brand in September 2025, with 40% of Jellycat-related searches coming from users aged 18 to 34. Similarly, orders for PopMart Labubus on TikTok Shop (in which users are required to be 18 or over), increased by 819% between March and May 2025.

Whether a social media ban happens or not, the evident appeal for toys and collectibles among adults gives businesses an opportunity to tap into the “joy economy”, where happiness and emotional experiences matter more than functionality.

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Written by:

Alice Martin Business writer

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What founders and employers should take from this

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Making Tax Digital for Income Tax Self Assessment (MTD for ITSA)

Making Tax Digital thresholds (2026 – 2028)

Is MTD even possible for sole traders with tiny turnovers (e.g., £15k)?

MTD rules & need-to-knows

Digital record keeping and approved software

Which records do I need to keep?

UK and foreign property businesses

Do I need to sign up to Making Tax Digital for Income Tax?

The quarterly updates

What should the quarterly updates include?

Year-end

Benefits for Startups of MTD: make your business more efficient

1. Real-time cashflow

2. Reduction in errors

3. Seek funding faster

4. Less stress

5. More secure records

6. No surprises

Common Pitfalls to Avoid

Not using separate reporting

Using non-HMRC approved software

Not signing up to MTD for ITSA

Not understanding the ‘digital links’ rule

Not working with an accountant

Not having a business bank account

What about limited companies?

Top tips

Find the right software

Plan time to set up your software

Be mindful of free plans

The joint-property income rule

Don’t forget about the end-of-year final declaration

Join up for MTD early

Frequently asked questions about MTD for Income Tax

Summary: how to be confident on MTD for Income Tax

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Copyright calamities

Misleading information

Put frameworks in place

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Direct impact on takings

State of limbo

Continued turbulence

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The Government unveils business rates relief package for pubs

Support package leaves wider hospitality sector behind

How should hospitality firms respond?

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Giving founders time back

Faster finance, when it’s needed

Helping small businesses sell to the world

Building digital confidence to scale

Preparing small businesses for what’s next

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Pensions are more important than other financial benefits

Pensions as a recruitment tool

Untapped potential

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Tax headaches are making freelancers reconsider self-employment

Is HMRC ready for Making Tax Digital?

How freelancers should prepare for MTD

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The scale of the shame

Are no-shows an even bigger problem?

What can businesses do?