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. Written by Emily Clark Published on 29 January 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 backShow 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 neededThrough 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 worldMarketplaces 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 scaleDigital 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 nextThrough 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. Share this post facebook twitter linkedin Tags Get paid with Emma News and Features Written by: Emily Clark Writer Having worked in a startup environment first-hand as a Content Manager, Emily specialises in content around organisational culture - helping SMEs build strong, people-first workplaces that stay true to their core values. She also holds an MSc in Digital Marketing and Analytics, giving her the knowledge and skills to create a diverse range of creative and technical content. Aside from her expertise in company culture, her news articles breaks down the big issues in the small business world, making sure our SME audience stays informed and ready for whatever’s next. With a genuine passion for helping small businesses grow, Emily is all about making complex topics accessible and creating content that can help make a difference.
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. Written by Emily Clark Published on 29 January 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 benefitsAfter 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 toolPensions 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 potentialWhile 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. Share this post facebook twitter linkedin Tags News and Features Written by: Emily Clark Writer Having worked in a startup environment first-hand as a Content Manager, Emily specialises in content around organisational culture - helping SMEs build strong, people-first workplaces that stay true to their core values. She also holds an MSc in Digital Marketing and Analytics, giving her the knowledge and skills to create a diverse range of creative and technical content. Aside from her expertise in company culture, her news articles breaks down the big issues in the small business world, making sure our SME audience stays informed and ready for whatever’s next. With a genuine passion for helping small businesses grow, Emily is all about making complex topics accessible and creating content that can help make a difference.
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. Written by Emily Clark Published on 29 January 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-employmentBecoming 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 MTDThe 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. Share this post facebook twitter linkedin Tags News and Features Written by: Emily Clark Writer Having worked in a startup environment first-hand as a Content Manager, Emily specialises in content around organisational culture - helping SMEs build strong, people-first workplaces that stay true to their core values. She also holds an MSc in Digital Marketing and Analytics, giving her the knowledge and skills to create a diverse range of creative and technical content. Aside from her expertise in company culture, her news articles breaks down the big issues in the small business world, making sure our SME audience stays informed and ready for whatever’s next. With a genuine passion for helping small businesses grow, Emily is all about making complex topics accessible and creating content that can help make a difference.
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. Written by Emily Clark Published on 29 January 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 shameThere 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. Read Whining and Dining Share this post facebook twitter linkedin Tags News and Features Written by: Emily Clark Writer Having worked in a startup environment first-hand as a Content Manager, Emily specialises in content around organisational culture - helping SMEs build strong, people-first workplaces that stay true to their core values. She also holds an MSc in Digital Marketing and Analytics, giving her the knowledge and skills to create a diverse range of creative and technical content. Aside from her expertise in company culture, her news articles breaks down the big issues in the small business world, making sure our SME audience stays informed and ready for whatever’s next. With a genuine passion for helping small businesses grow, Emily is all about making complex topics accessible and creating content that can help make a difference.
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. Written by Emily Clark Published on 29 January 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 oilWho 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 ringsPilates 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 shoesTabi 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 jeansRegular 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 camerasSpend 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 filamentsMore 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 patchesNothing 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. Share this post facebook twitter linkedin Tags News and Features Written by: Emily Clark Writer Having worked in a startup environment first-hand as a Content Manager, Emily specialises in content around organisational culture - helping SMEs build strong, people-first workplaces that stay true to their core values. She also holds an MSc in Digital Marketing and Analytics, giving her the knowledge and skills to create a diverse range of creative and technical content. Aside from her expertise in company culture, her news articles breaks down the big issues in the small business world, making sure our SME audience stays informed and ready for whatever’s next. With a genuine passion for helping small businesses grow, Emily is all about making complex topics accessible and creating content that can help make a difference.
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 Emily Clark Published on 29 January 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 scaleupsA 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 fasterIn 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 startupsFor 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. Share this post facebook twitter linkedin Tags News and Features Written by: Emily Clark Writer Having worked in a startup environment first-hand as a Content Manager, Emily specialises in content around organisational culture - helping SMEs build strong, people-first workplaces that stay true to their core values. She also holds an MSc in Digital Marketing and Analytics, giving her the knowledge and skills to create a diverse range of creative and technical content. Aside from her expertise in company culture, her news articles breaks down the big issues in the small business world, making sure our SME audience stays informed and ready for whatever’s next. With a genuine passion for helping small businesses grow, Emily is all about making complex topics accessible and creating content that can help make a difference.
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. Written by Emily Clark Published on 29 January 2026 1 of 3 Xero: 90% off MTD-ready software for 6 months See Pricing 2 of 3 Sage: MTD-ready software for FREE See Pricing 3 of 3 Compare MTD software deals Compare Costs 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. 💡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). In this article: The MTD for Income Tax deadline, and what you need to before then The best Making Tax Digital software Types of Making Tax Digital software Does HMRC Have Its Own Official Software? Are there any free Making Tax Digital software options available? How to choose the right software for your business The MTD for Income Tax deadline, and what you need to do before thenMake 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 expensesSend quarterly updates directly to HMRCSubmit your tax return by 31 January the following yearA 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 doDeadlineSubmit a Self Assessment tax return for the tax year 2024 to 202531 January 2026You must start keeping records using MTD for Income Tax compliant software6 April 2026Deadline for sending your first quarterly update7 August 2026Deadline for sending your second quarterly update7 November 2026Deadline to submit a Self Assessment tax return the usual way for 2025 to 202631 January 2027Deadline for sending your third quarterly update7 February 2027Deadline for sending your fourth quarterly update7 May 2027Deadline for sending your first quarterly update for 2027 to 20287 August 2027Deadline for sending your second quarterly update7 November 2027Deadline to submit your tax return straight from MTD for Income Tax software for 2026 to 202731 January 2028Deadline for sending your third quarterly update7 February 2028Deadline for sending your fourth quarterly update7 May 2028There 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 platformsOur 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. Show moreless 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 obligationsGenerate and finalise your quarterly updates, and submit them directly to HMRCCreate, send, and track invoicesRecord 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. Show moreless 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:NatWestRoyal Bank of ScotlandUlster BankMettle (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:WebinarsEmail templatesClient guidesFreeAgent 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?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 HMRCReal-time view of how much you owe HMRCReal-time view of your tax calculations and what is due whenDoes 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 Compare Deals 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. Show moreless 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?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. Show moreless 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 HMRCMake your MTD for Income Tax process more streamlined using Xero’s built-in receipt capture tool HubdocXero 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. Show moreless 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. Show moreless 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 softwareGenerally, there are two main types of Making Tax Digital software: software that ‘creates digital records’, and ‘bridging software’.1. Software that creates digital recordsThis 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 softwareAutomatically import your transactions by linking the software to your business bank accountScanning your receipts or invoices through an app and uploading themOur 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 softwareThis 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 mobileHammock: this is MTD software which has been built to be used by landlords specificallyMonzo: you can get MTD software built directly into your Monzo business bank accountRead 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 businessOne 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.Read next: what is the VAT threshold, and when do you need to register for VAT? Share this post facebook twitter linkedin Written by: Emily Clark Writer Having worked in a startup environment first-hand as a Content Manager, Emily specialises in content around organisational culture - helping SMEs build strong, people-first workplaces that stay true to their core values. She also holds an MSc in Digital Marketing and Analytics, giving her the knowledge and skills to create a diverse range of creative and technical content. Aside from her expertise in company culture, her news articles breaks down the big issues in the small business world, making sure our SME audience stays informed and ready for whatever’s next. With a genuine passion for helping small businesses grow, Emily is all about making complex topics accessible and creating content that can help make a difference.
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. Written by Emily Clark Published on 29 January 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. Share this post facebook twitter linkedin Tags News and Features Written by: Emily Clark Writer Having worked in a startup environment first-hand as a Content Manager, Emily specialises in content around organisational culture - helping SMEs build strong, people-first workplaces that stay true to their core values. She also holds an MSc in Digital Marketing and Analytics, giving her the knowledge and skills to create a diverse range of creative and technical content. Aside from her expertise in company culture, her news articles breaks down the big issues in the small business world, making sure our SME audience stays informed and ready for whatever’s next. With a genuine passion for helping small businesses grow, Emily is all about making complex topics accessible and creating content that can help make a difference.
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 Emily Clark Published on 29 January 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. 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. 💡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. In this article: Making Tax Digital: quick overview Making Tax Digital checklist: how to get ready Key deadlines Must-haves for MTD Compliance Essential need-to-knows ``Am I exempt?`` quick-check Summary Making Tax Digital: quick overviewMaking 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 readyIf 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 eligibilityBefore 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 softwareYou 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 readyQuickBooks: 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)Using a full-accounting software like Sage can make your bookkeeping easier, with a range of customisable templates for invoicing. Source: Startups.co.ukThere 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 accountIt’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 ITSAThis 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 AssessmentEither 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 ITSAYou 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 expensesWithin 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 ruleThis 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 spreadsheetMoving 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 softwareXML, CSV import and export, and downloading or uploading filesAPL transferYou 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 deadlinesIn 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 doDeadlineSubmit a Self Assessment tax return for the tax year 2024 to 202531 January 2026You must start keeping records using MTD for Income Tax compliant software6 April 2026Deadline for sending your first quarterly update7 August 2026Deadline for sending your second quarterly update7 November 2026Deadline to submit a Self Assessment tax return the usual way for 2025 to 202631 January 2027Deadline for sending your third quarterly update7 February 2027Deadline for sending your fourth quarterly update7 May 2027Deadline for sending your first quarterly update for 2027 to 20287 August 2027Deadline for sending your second quarterly update7 November 2027Deadline to submit your tax return straight from MTD for Income Tax software for 2026 to 202731 January 2028Deadline for sending your third quarterly update7 February 2028Deadline for sending your fourth quarterly update7 May 2028Make 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 AugustQ2 (July to October): Due 7 NovemberQ3 (Oct to Jan): Due 7 FebruaryQ4 (January to April): Due 7 MayThen the final declaration on January 31st. Must-haves for MTD complianceYou 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-knowsTax 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 systemAs 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 ruleThere’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 submissionsIf 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 advanceIf 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-checkIt 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 technologyYou are a practicing member of a religious society or order who’s beliefs prevent them from using digital communications and keeping digital recordsYou can’t access the internet due to geographic location, and cannot find a suitable alternativeYou 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 soYou 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 yearIt will take time and money for you to switch to MTD for ITSAHMRC does consider all applications for exemption on a case-by-case basis. Summary: take the stress out of tax timeThis 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 Compare Costs It only takes a minute. Startups.co.uk is reader-supported. If you make a purchase through the links on our site, we may earn a commission from the retailers of the products we have reviewed. This helps Startups.co.uk to provide free reviews for our readers. It has no additional cost to you, and never affects the editorial independence of our reviews. Share this post facebook twitter linkedin Written by: Emily Clark Writer Having worked in a startup environment first-hand as a Content Manager, Emily specialises in content around organisational culture - helping SMEs build strong, people-first workplaces that stay true to their core values. She also holds an MSc in Digital Marketing and Analytics, giving her the knowledge and skills to create a diverse range of creative and technical content. Aside from her expertise in company culture, her news articles breaks down the big issues in the small business world, making sure our SME audience stays informed and ready for whatever’s next. With a genuine passion for helping small businesses grow, Emily is all about making complex topics accessible and creating content that can help make a difference.
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. Written by Emily Clark Published on 29 January 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 monthStart 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 monthMotivation 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 monthNatWest 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 monthSheffield – 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 monthNeuroNetwork 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 monthBold 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 monthNatWest 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 monthKuKu 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 monthMindstone 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 monthPeopleOps 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 monthNatWest 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 monthMeet 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 monthConnectED, 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 monthRoyal 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. Share this post facebook twitter linkedin Tags News and Features Written by: Emily Clark Writer Having worked in a startup environment first-hand as a Content Manager, Emily specialises in content around organisational culture - helping SMEs build strong, people-first workplaces that stay true to their core values. She also holds an MSc in Digital Marketing and Analytics, giving her the knowledge and skills to create a diverse range of creative and technical content. Aside from her expertise in company culture, her news articles breaks down the big issues in the small business world, making sure our SME audience stays informed and ready for whatever’s next. With a genuine passion for helping small businesses grow, Emily is all about making complex topics accessible and creating content that can help make a difference.
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. Written by Emily Clark Published on 29 January 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 innovationIn 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 fundingWhile 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 SMEsWith 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 Share this post facebook twitter linkedin Tags News and Features Written by: Emily Clark Writer Having worked in a startup environment first-hand as a Content Manager, Emily specialises in content around organisational culture - helping SMEs build strong, people-first workplaces that stay true to their core values. She also holds an MSc in Digital Marketing and Analytics, giving her the knowledge and skills to create a diverse range of creative and technical content. Aside from her expertise in company culture, her news articles breaks down the big issues in the small business world, making sure our SME audience stays informed and ready for whatever’s next. With a genuine passion for helping small businesses grow, Emily is all about making complex topics accessible and creating content that can help make a difference.
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. Written by Emily Clark Published on 29 January 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 retailersThe 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 lossesIf 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. Share this post facebook twitter linkedin Tags News and Features Written by: Emily Clark Writer Having worked in a startup environment first-hand as a Content Manager, Emily specialises in content around organisational culture - helping SMEs build strong, people-first workplaces that stay true to their core values. She also holds an MSc in Digital Marketing and Analytics, giving her the knowledge and skills to create a diverse range of creative and technical content. Aside from her expertise in company culture, her news articles breaks down the big issues in the small business world, making sure our SME audience stays informed and ready for whatever’s next. With a genuine passion for helping small businesses grow, Emily is all about making complex topics accessible and creating content that can help make a difference.
Pension hole looms for freelancers, with just 40% saving for retirement As the deadline for Self Assessment tax returns approaches, experts are warning that self-employed workers are failing to save for retirement. Written by Emily Clark Published on 29 January 2026 New research has revealed that less than half of self-employed workers and freelancers are actively saving for their retirement, and their long-term financial stability is under threat as a result. Aviva has published data on retirement planning among the UK’s self-employed workers, freelancers, and digital nomads, and it makes for worrying reading. From a sample of 500 individuals, it was found that only 38% of self-employed people and 40% of freelancers are actively saving for retirement. The data also revealed that 45% of the wider self-employed and freelance community do not feel confident about their long-term financial stability. Many are risking “reaching later life without savings”The research, compiled by Aviva, gives the startling overview that “most people working outside traditional employment structures are not building up dedicated retirement savings”. This could see them “potentially leaving themselves exposed to financial insecurity later in life”.The research also took in digital nomads, and found that an even smaller proportion of this group (34%) are saving. However, it also revealed that many have the intention of saving, but are waiting for less turbulent times. Nearly a third of digital nomads, 23% of the self-employed, and 18% of freelancers said they want to start saving soon. Many, though, have no such plans. Alistair McQueen, Head of Savings and Retirement at Aviva, warns: “This research highlights a clear gap in retirement planning for people who are self-employed and freelance. Without auto enrolment or employer contributions to fall back on, many risk reaching later life without the savings they’ll need.”Lack of pension relief knowledge means money is left on the tableThe research also found that one of the blockers for workers is a lack of knowledge as to what is available to them. Fewer than one in four self-employed people (24%) and freelancers (21%) know about the pension products available to the self-employed and freelance workers.This concern was echoed by Chris Eastwood, CEO of pension provider Penfold, who has warned that millions of higher-tax payers could be missing out on hundreds, or even thousands, in unclaimed pension tax relief.According to Eastwood, many people don’t know that only 20% of tax relief is added automatically, and this means that higher-rate taxpayers must file a Self Assessment tax return to claim relief.He states: “We regularly see people paying higher-rate tax who assume all their pension tax relief is handled automatically. In many cases, it isn’t, and the result is money being left on the table that HMRC won’t pay back unless it’s claimed.”To give an example, for someone paying 40% income tax, “a £10,000 pension contribution could cost as little as £6,000 once all tax relief is claimed,” he added.What can freelancers and the self-employed do?Both experts encourage workers to use the approaching Self Assessment tax deadline as the impetus to look into their finances. McQueen says that it might not even require drastic action, but “small, regular steps – like opening a personal pension and setting an affordable monthly contribution – can make a big difference.”Eastwood added that, whether you are self-employed or a PAYE employee, “the key is understanding how your pension scheme works.“Claiming pension tax relief isn’t about gaming the system. It’s about making sure people receive the tax benefit Parliament intended – and not paying more tax than they need to.”For solopreneurs and business owners with employees alike, financial planning for the future may feel like a stretch when the economic landscape is so hilly. But a little research and financial sacrifice now is essential to ensure a decent retirement. Share this post facebook twitter linkedin Tags News and Features Written by: Emily Clark Writer Having worked in a startup environment first-hand as a Content Manager, Emily specialises in content around organisational culture - helping SMEs build strong, people-first workplaces that stay true to their core values. She also holds an MSc in Digital Marketing and Analytics, giving her the knowledge and skills to create a diverse range of creative and technical content. Aside from her expertise in company culture, her news articles breaks down the big issues in the small business world, making sure our SME audience stays informed and ready for whatever’s next. With a genuine passion for helping small businesses grow, Emily is all about making complex topics accessible and creating content that can help make a difference.
AI threatens SMEs’ cybersecurity – is cyber insurance the answer? As fears around the perils of AI hit home, small businesses are looking to insurance policies – but do they offer adequate protection, and what else can be done? Written by Emily Clark Published on 29 January 2026 Data from 14 different nations has revealed a clear trend: SME owners are seeking out professional advice on cyber insurance, with a significant proportion driven to do so by rising fears around new technology, specifically AI.With cybersecurity a growing concern for small business owners, media coverage of high-profile cyber attacks against the Co-op, M&S, and Pandora in 2025 has also fueled interest in cyber insurance. What’s the risk to small businesses?While reported cyber breaches against UK SMEs dipped from 718,000 businesses to 612,000 in 2025, it’s still true that over 40% of SMEs have experienced a cyber attack. As businesses scramble to get to grips with AI technology, they are also becoming aware of the potential risks, with AI empowering cyber criminals to launch low-cost, sophisticated, automated attacks at a higher frequency. In the wrong hands, AI can assist with sending phishing campaigns, generating deepfakes, and creating and deploying malware.GlobalData’s 2025 SME Survey delved into why business owners were buying cyber insurance. While 39% of respondents said they did so because they were advised by a broker to, 35.8% said that they were interested in a policy because of the “increased risk posed by AI adoption” – making AI the second-biggest draw to cyber insurance, followed by media reports on cyber attacks (34.7%).Beatriz Benito, Lead Insurance Analyst at GlobalData, commented: “The rapid spread of AI and its integration across all industries is making SMEs feel uneasy and anxious about the technology, perceiving that it may pose significant risk.”The importance of using AI safelyAs well as the threat from cyber criminals’ use of AI, adopting the technology in-house can also create vulnerabilities. Using third-party AI tools and software without properly vetting them could leave your business’s data at risk of being breached if the platforms you use are attacked.Indeed, as well as being a barrier to growth for many UK entrepreneurs, the lack of AI literacy is a big cybersecurity risk. Research from KPMG revealed that 73% of Brits have received no AI training or education, while the Government’s SME Digital Adoption Taskforce report from summer 2025 revealed that many SMEs lack the confidence to adopt and use new digital and AI tools properly.This data speaks volumes – many SME owners don’t know how to approach deploying AI, and crucially, don’t know how to protect against its risks and vulnerabilities. Therefore, educating yourself and your team in this should be the first step in safeguarding your business.Can cyber insurance protect against AI attacks?According to Benito, business owners are contacting their insurance broker because they want clarity in the face of this confusion. Specifically, they want to know what protection they have against AI risks as the technology rapidly becomes part of their workflow and is adopted by the world at large. However, cyber insurance is not a catch-all solution. Many insurers are in the process of adapting their policies to cover specific AI risks, but SMEs need to be aware of the particular risks they should seek cover for, as they won’t find generic policies covering all possible AI threats. As Benito said: “Given that many standard cyber policies do not mention AI cover, there could be a gap between what clients expect from their policy and what it actually covers.”She added that GlobalData’s findings should serve as a catalyst for businesses to contact their insurance brokers; and also for insurers to make sure that policies are affordable for SMEs and include specific cover for AI risk:“SMEs may not always be able to afford the cost of a policy, or the technology (such as software upgrades) required by insurers. Given the high barrier to entry for SMEs, insurers should focus on developing policies covering just the risks that are most common to such businesses.”Business owners must start interrogating what cyber protections they have in place, both in terms of technology and insurance, and ensuring they buy a policy that covers the risks most relevant to them. Meanwhile, the insurance industry needs to iterate fast to make sure that relevant policies that cover AI-related threats are accessible to all SMEs. Share this post facebook twitter linkedin Tags News and Features Written by: Emily Clark Writer Having worked in a startup environment first-hand as a Content Manager, Emily specialises in content around organisational culture - helping SMEs build strong, people-first workplaces that stay true to their core values. She also holds an MSc in Digital Marketing and Analytics, giving her the knowledge and skills to create a diverse range of creative and technical content. Aside from her expertise in company culture, her news articles breaks down the big issues in the small business world, making sure our SME audience stays informed and ready for whatever’s next. With a genuine passion for helping small businesses grow, Emily is all about making complex topics accessible and creating content that can help make a difference.
Who’s really cooking? Chains accused of “masquerading” on delivery apps Independent restaurants claim major chains are disguising themselves on delivery apps, attracting customers under the guise of local businesses. Written by Emily Clark Published on 29 January 2026 Large restaurant chains — including TGI Friday’s, Frankie & Benny’s, and Pizza Hut — have been accused of posing as independent restaurants on delivery platforms.Independent restaurant businesses and F&B brands claim that larger chains are disguising themselves on apps like Deliveroo, Just East, and Uber Eats — making it harder for customers to tell them apart from genuine small businesses.This practice, known as “masquerading”, has raised concerns among both businesses and customers about fairness, transparency, and ultimately the survival of small hospitality businesses.With more of these listings appearing, major chains are reportedly pulling in extra business — often at the expense of the actual independent restaurants customers think they’re supporting. What does “masquerading” mean?Restaurant chains have reportedly been using different names and branding on delivery platforms to appear as independent brands and attract customers who want to support local eateries. It’s also a way of sidestepping the limitations of their existing brand — for example, a pizza chain that also serves fried chicken may list these products under a different, chicken-oriented brand name to get more eyes on them.While there’s currently no law or legislation to prevent this practice, diners have shared their distaste about it, believing that it deliberately misleads users and unfairly disadvantages genuine independent restaurants. “There is so much of this in my area. I think it’s entirely misleading, bordering on fraudulent,” a user commented on Reddit.Meanwhile, another added: “A chain pub near me used to do this. On UberEats it had five listings all with the same address. This was in a pretty small area, so there already wasn’t much competition. They absolutely drowned out the other places.”How is masquerading affecting small restaurants?Unsurprisingly, the practice of “masquerading” on these apps means that genuine independent restaurants, cafés, and pubs are at greater risk of losing business to large chains posing as small or locally owned businesses.With so many businesses using these platforms (Deliveroo, for example, has around 70,000 partnerships with restaurants, groceries, and retailers in the UK), and a large number of them reliant on the revenue these apps bring, this can be particularly damaging. According to a report by NIQ, deliveries earned 13.4p in every pound spent with restaurants in November 2025, while takeaways and click-and-collect orders earned 4.8p in every pound.The reported increase in masquerading means that smaller restaurants face intense competition in an already struggling sector. As of August 2025, hospitality has seen 62 net business closures per month (equalling two a day), while the number of independent restaurants has declined by 22.7%. Rajendra Vikram Kupperi, director of Vivo Amigo in Cardiff, believes that the rise in ghost kitchens on delivery apps has contributed to this problem, as they make it easier for chains to launch multiple “brands” from the same location without anyone knowing the same company is behind them.With over 750 ghost kitchens set up in the UK, Kupperi believes this has directly affected his business, and has called for them to be separated from large brands so that customers aren’t misled.“During Covid, the number of ghost kitchens that opened was endless,” he told The BBC. “The bigger brands can undercut the prices, they have good offers. Customers can’t really differentiate.”How should restaurants fight back?Smaller restaurants may not be able to stop the practice outright, but there are ways to help limit its impact.For example, sharing clear branding, honest descriptions, and real photos of your food and venue can help customers recognise a genuine independent business, rather than a rebranded chain operating under a different name.Moreover, building loyalty beyond delivery apps can also build further credibility. Encouraging people to follow you on social media, sign up to a mailing list, or order directly from you in future (for example, you could offer a thank you gift or freebie that your customers wouldn’t get with a delivery app) can help reduce reliance on platforms where competition is crowded.And finally, it’s worth pushing platforms for change where possible. Giving feedback to delivery apps, flagging misleading listings, and supporting calls for better transparency can all help. One voice might feel small, but when enough people speak up, it’ll be harder to ignore.While there’s still a long way to go, some platforms have shown a willingness to better support small businesses. Uber Eats has told The BBC that it would be “levelling the playing field” for partners on its platform, helping smaller restaurants get fair visibility alongside larger chains.A spokesperson commented: “We have a growing team of dedicated account managers working to build bespoke solutions and equal exposure opportunities on the app and we accelerate rather than compete with our partners’ sales.” 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 Share this post facebook twitter linkedin Tags News and Features Written by: Emily Clark Writer Having worked in a startup environment first-hand as a Content Manager, Emily specialises in content around organisational culture - helping SMEs build strong, people-first workplaces that stay true to their core values. She also holds an MSc in Digital Marketing and Analytics, giving her the knowledge and skills to create a diverse range of creative and technical content. Aside from her expertise in company culture, her news articles breaks down the big issues in the small business world, making sure our SME audience stays informed and ready for whatever’s next. With a genuine passion for helping small businesses grow, Emily is all about making complex topics accessible and creating content that can help make a difference.
Bank Referral Scheme needs overhaul for SMEs, says UK Finance A key financial trade association has told the Government that the bank referral scheme is no longer fit for purpose. Written by Emily Clark Published on 29 January 2026 UK Finance, which represents 300 firms across the UK, has told the Government that the Bank Referral Scheme (BRS) “no longer effectively meets the needs of today’s dynamic market” and is failing SMEs.The trade association didn’t pull any punches in its response to the HM Treasury’s consultation on the Bank Referral Scheme, and argued that instead SMEs need “a modern, government-led Access to Finance Hub”. The publication of UK Finance’s response comes swiftly after a bid was launched by a group of Labour backbenchers to create a Fair Banking Act, which would monitor and rank banks based on how well they are serving SMEs. This response from UK Finance emphasises that traditional banks are no longer playing a key role in financing SME growth, and the Government needs to recognise this. Why isn’t the BRS working?The Bank Referral Scheme kicked off in November 2016, and was designed to help SMEs find alternative funding if their application was rejected by a mainstream lender. However, UK Finance has said the scheme “fails to provide timely, proactive support for SMEs, often leaving them ill-prepared after a rejection and disillusioned with the process.”In particular, in its response to the Government (PDF), the association argues that take up for the scheme has been really low, “with only 2 to 3 per cent of declined SME applicants taking up a referral.” Crucially, of those who do get a referral, only 6% actually obtain finance, which leaves 94% experiencing a “double decline”. It was initially suggested that the scheme could unlock up to £1.9bn of additional finance for SMEs. However, over 10 years, it has actually resulted in around £128m shared between 5,400 businesses. “Compared to the £62bn of gross lending to SMEs in 2024 alone, it is now clear that the scheme was only ever going to make a minor contribution,” the UK Finance team said.The letter stated that the scheme simply hasn’t delivered on expectations, despite a previous independent review of the BRS that recommended improvements to increase takeup – and changes that were made as a result. Are big banks still important players in SME funding?The scheme hasn’t taken into account the fact that the funding landscape has shifted dramatically since it was launched, with SME owners now tending to seek out alternative sources of finance instead of mainstream banks.As the letter stated: “British Business Bank (BBB) data showed that of the £62.1bn of gross lending to smaller businesses in 2024, £37.3bn was provided by challenger and specialist banks.” These organisations are responsible for 60% of gross lending, with this figure having doubled over the last decade. Their lending has exceeded lending from the big five UK banks for four years in a row. What is the alternative?UK Finance is arguing that the scheme needs to be replaced with a platform that would offer far more support and guidance: “This revamped platform could serve as a comprehensive one-stop centre of financial expertise and valuable resource, offering continuous support and guidance throughout the entire business and financial lifecycle, rather than just a reactive referral process.”UK Finance pointed to the Department for Business and Trade’s (DBT) Backing Your Business campaign as an example of how the platform could run. The hub would offer access to education and assessments on financial readiness and allow SMEs to tailor their applications for a greater chance of success. With financial literacy among founders a rising concern, UK Finance’s response is a call for a more proactive approach to helping SME owners get the finance that they need to grow. However, what it doesn’t include are suggestions as to how the platform would be financed. Although the potential impact for SMEs is tantalising, it isn’t definite. As the Government tightens its belt, SME owners must try to educate themselves as much as possible about their funding options, as it could be a long wait before the BRS is replaced with something more valuable. Share this post facebook twitter linkedin Tags News and Features Written by: Emily Clark Writer Having worked in a startup environment first-hand as a Content Manager, Emily specialises in content around organisational culture - helping SMEs build strong, people-first workplaces that stay true to their core values. She also holds an MSc in Digital Marketing and Analytics, giving her the knowledge and skills to create a diverse range of creative and technical content. Aside from her expertise in company culture, her news articles breaks down the big issues in the small business world, making sure our SME audience stays informed and ready for whatever’s next. With a genuine passion for helping small businesses grow, Emily is all about making complex topics accessible and creating content that can help make a difference.
What does Trump’s tariff risk mean for UK SMEs? US threats to impose tariffs could ripple through the supply chain. Here’s what small businesses need to know right now. Written by Emily Clark Published on 29 January 2026 In his latest headline-making move, Trump has threatened to introduce new tariffs on eight European countries, including the UK, unless they support his wishes to buy Greenland. If no deal is reached, the proposed tariffs on UK goods could start at 10% from 1 February, rising to 25% later in the year.While the UK government wants to avoid a trade war, the threat alone has already caused stock prices to falter across the globe. And it’s sure to create further uncertainty for businesses that have a significant American market or rely on supply chains connected to the US. How tariffs work and what’s at stakeTariffs are taxes added to imported goods, typically as a percentage of the sale price. While US firms technically pay them, the cost is often passed back down the supply chain, affecting UK exporters. The sectors most at risk of tariffs include machinery, automotive, aerospace, and food and drink products such as whisky. You might recall similar news last April, when Trump caused stock market chaos by imposing similar levies. China retaliated by slapping US exports with its own tariffs, causing a chain reaction of widespread economic volatility.Generally, tariff increases are not positive for the global stock market, as they have ripple effects such as higher prices for consumers and stalling the flow of trade. Even SMEs that don’t export directly to the US could be affected if suppliers or partners face higher costs or reduced demand. While the announcement is still fresh, it’s been met with concern. Danni Hewson, AJ Bell’s Head of Financial Analysis, told The Guardian, “The fact US markets are closed for a public holiday means we’re only seeing half the picture today.”“Uncertainty is the biggest dampener on sentiment, and the timing of the IMF’s latest forecast could be seen as ironic. It may have been forecasting better global growth for 2026 following tariff negotiations and AI gains, but those negotiations might as well never have taken place if they can be ripped up so easily.”How UK businesses can respondFor now, the UK government is seeking to avoid getting into a tariff war with Trump and has made no immediate moves to impose retaliatory tariffs.However, if the stock market’s immediate response is anything to go by, businesses might be about to face the ripple effects of market instability. In the face of uncertainty, small businesses can still take practical steps to prepare for impact and minimise disruption to profit margins. It could be wise to review how much of your revenue relies on direct US trade. You might check this by speaking with suppliers and distributors, and building flexibility into pricing, stock, or contracts. That said, it’s too early to start restructuring supply chains or raising prices just yet.There are sure to be more details in the days to come, so the best next step may be to monitor developments closely before making any sudden movements. Stay informed by keeping tabs on updates from the government, as well as EU negotiations, or industry-specific trade bodies. Share this post facebook twitter linkedin Tags News and Features Written by: Emily Clark Writer Having worked in a startup environment first-hand as a Content Manager, Emily specialises in content around organisational culture - helping SMEs build strong, people-first workplaces that stay true to their core values. She also holds an MSc in Digital Marketing and Analytics, giving her the knowledge and skills to create a diverse range of creative and technical content. Aside from her expertise in company culture, her news articles breaks down the big issues in the small business world, making sure our SME audience stays informed and ready for whatever’s next. With a genuine passion for helping small businesses grow, Emily is all about making complex topics accessible and creating content that can help make a difference.
Hospitality businesses brace for alcohol duty increases from February Pubs, bars, and restaurants face fresh cost pressures as the government prepares to raise alcohol duty in line with inflation. Written by Emily Clark Published on 29 January 2026 The hospitality industry is bracing for another squeeze as the government prepares to raise alcohol duty rates from 1 February 2026.Margins on alcohol sales could get tighter, as rates will increase in line with the Retail Price Index (RPI) at 3.66%. Pubs, bars, and restaurants aren’t directly responsible for paying alcohol duty tax, but the increase in cost could be passed on from suppliers to land on operators who are already facing intense financial pressure. As pubs across the UK continue to campaign for wider government support for the sector, including business rates relief, another hike won’t be the news they were hoping for. But with many hospitality businesses already under pressure, it’s important to be aware of the potential increases to alcohol prices in the coming weeks, and to plan ahead where possible. What’s changing with alcohol duty — and whenThis upcoming increase in alcohol duty rates was first announced in November’s Budget, with rates set to be uprated by 3.66% from 1 February, in line with inflation (RPI). The Telegraph has reported that this could result in a £400m-a-year tax rise on pints, wine, and spirits.It’s worth noting, of course, that the cash discount available under Small Producer Relief (SPR) will also be increased, so the relative discount smaller alcohol producers receive will remain intact.Why pubs and hospitality businesses are worriedThe government acknowledged the change could have “some impact on the hospitality industry”, with alcohol suppliers likely to charge pubs, bars, and restaurants increased prices to cover the duty rates increase.The Treasury calculated the 3.66% increase to affect approximately 10% of pubs’ costs, which amounts to a less than 0.5% increase overall. But even minor increases can have a tangible impact on pubs working with already tight margins.UKHospitality’s Allen Simpson told The Caterer that the sector’s cost burden was already “growing at an unsustainable rate”.“Increases to alcohol duty, while not paid directly by operators, are another pressure if it is passed onto businesses through higher drinks prices,” he said. “We strongly urge suppliers to show restraint, recognising the economic pressure the sector is under.”The increase is unfortunately timed, as many hospitality businesses are currently up against high energy bills, rising food costs, staffing pressures, and the end of pandemic-era financial relief.What this means for hospitality SMEsWith suppliers and producers likely to pass the cost of the duty increase on to pubs and restaurants, stocking alcohol may be more expensive from February. Passing these costs on to customers is an option, but it likely won’t land well with price-sensitive consumers, especially those who are already moving away from alcohol. That said, many pubs are simply not in a position to absorb additional costs without putting further pressure on their bottom line.While the duty rise alone may not be a major blow, it’s yet another facet of the cumulative burden facing pubs across the UK. With the increase now effectively locked in, pubs may turn their attention towards the Chancellor’s promised support package, particularly the business rates relief, which could have a much larger impact on how pubs fare in 2026. 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 Share this post facebook twitter linkedin Tags News and Features Written by: Emily Clark Writer Having worked in a startup environment first-hand as a Content Manager, Emily specialises in content around organisational culture - helping SMEs build strong, people-first workplaces that stay true to their core values. She also holds an MSc in Digital Marketing and Analytics, giving her the knowledge and skills to create a diverse range of creative and technical content. Aside from her expertise in company culture, her news articles breaks down the big issues in the small business world, making sure our SME audience stays informed and ready for whatever’s next. With a genuine passion for helping small businesses grow, Emily is all about making complex topics accessible and creating content that can help make a difference.
Gold Stars vs. Gold Statues Varun Bhanot explains that recognition isn't about applause, but about the meaningful feedback that reflects effort, impact, and growth. Written by Emily Clark Published on 29 January 2026 Winning awards has never been about the applause alone (although that is quite nice).Anybody can enjoy praise, but meaningful recognition is something entirely different. It is the difference between being told you are doing well and being shown, through evidence and impact, that your work really matters.In that sense, professional recognition has always been to me like the kind of feedback in life that matters most: considered, deserved and arising from true development. As a child, the praise that really stuck with me was not the automatic “well done” at the end of a task. It was the times when my dad saw how much effort I put into something (even when it didn’t turn out as expected) or when my mum’s feedback was given with constructive criticism, but also context and love.That difference has influenced how I perceive success ever since. In my working life, I have sought recognition not as a form of approval, but as a confirmation that what I am creating can withstand criticism even beyond my own belief in it.That is why being named 3rd in the Startups 100 Index for 2026 continues to be one of the most important moments in my professional life. It was more than just an award. It was a recognition by an ecosystem that knows very well how challenging it is to transform ideas into sustainable, scalable businesses.The ranking was a result of traction, innovation, and execution, not just potential. Like the best parental feedback, it acknowledged the effort that went into the work.Creating startups brings lengthy periods of uncertainty, multiple iterations, and a readiness to publicly learn from failure. In such a context, recognition is not a compliment; it is proof of progression.What really matters to me is that these recognitions reflect the values that I’ve had since childhood, those instilled by my parents. I have always maintained that success ought to be responsible, people-centred, and sustainable. Awards that focus on ethical development, innovation that serves a purpose, or leadership in the midst of challenges, attract me much more than those that are just about publicity.Indeed, professional praise, like good parental advice, serves as an encouragement to keep improving rather than to just rest on one’s laurels. This is what I think about when I praise my daughter. About Varun Bhanot Varun Bhanot is Co-founder and CEO of MAGIC AI, the cutting-edge AI mirror that makes high-quality fitness coaching more accessible. Under his leadership, MAGIC AI has raised $5 million in venture funding and earned multiple industry accolades — including being named one of TIME’s Best Inventions of 2024. As a new father as well as founder, Varun shares candid insights on balancing parenting and entrepreneurship in his bi-monthly guest column, Startup Daddy. Learn more about MAGIC AI Share this post facebook twitter linkedin Tags News and Features Written by: Emily Clark Writer Having worked in a startup environment first-hand as a Content Manager, Emily specialises in content around organisational culture - helping SMEs build strong, people-first workplaces that stay true to their core values. She also holds an MSc in Digital Marketing and Analytics, giving her the knowledge and skills to create a diverse range of creative and technical content. Aside from her expertise in company culture, her news articles breaks down the big issues in the small business world, making sure our SME audience stays informed and ready for whatever’s next. With a genuine passion for helping small businesses grow, Emily is all about making complex topics accessible and creating content that can help make a difference.
AI in accounting: what are the latest developments? Artificial Intelligence (AI) is reshaping the accounting landscape at rapid speed. This is what your business needs to know so it doesn't get left behind. Written by Emily Clark Published on 29 January 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. Despite Labour’s efforts to foster growth in UK business, it’s still a harsh environment out there for SMEs. A steady rise in inflation, coupled with an ongoing cost-of-living crisis, has meant that it’s now mission critical for businesses’ to have real-time visibility over their finances.This is where the role of AI in accounting comes in. The days of having to manually add data to a fiddly spreadsheet is going the way of the dinosaur. Using machine learning to automate your accounting process isn’t just a luxury for big corporations any longer.AI has now become mandatory. It’s not a bonus feature, it’s survival. AI has caused a major shift in the accounting industry. It’s important for all business owners to understand why this is, how it can benefit them, and what AI tools they can use by choosing the best accounting software. 💡Key takeaways One of AI’s primary roles in accounting is the automation of daily tasks like bank reconciliation, report generation, and receipt capture.While AI can help increase efficiency, it lacks the ability to apply strategic nuance or thinking, making human oversight and expert consultation essential.Generative AI can help accountants become more efficient, rather than replace them completely.Small business owners can access built-in AI assistants like Intuit Assist or Sage Copilot directly through standard accounting software plans allowing them to benefit from AI-powered workflows. In this article: The growth of AI in accounting How is AI being used in accounting? The benefits of using AI in accounting Factors to consider before using AI in accounting How to start using AI in your accounting workflow Will AI replace accountants? In summary The growth of AI in accountingWhile it’s unsurprising that industry titans like the Big Four accounting firms (Deloitte, Ernst & Young, PwC, and KPMG) have invested massive amounts of time and money into in AI, the rest of the industry hasn’t been dragging its heels either.The 2025 Generative AI in Professional Services Report from Thomson Reuters showed that 21% of tax firms who responded, are “already using GenAI technology, with 53% either planning to use the technology or considering it”. The number of tax, accounting, and audit firms using generative AI took a substantial jump in just the last couple of years: “21% in 2025 from only 8% in 2024“. AI has become something of a spectre over the business landscape. The rise of machine learning has left many industries feeling uncertain, but the world of accounting has taken a more positive outlook on AI: the same survey from Reuters showed that “68% of tax and accounting professionals are excited and/or hopeful about the future of GenAI”. How is AI being used in accounting?Primarily, AI is being used to eliminate the tedium of monotonous manual tasks, like data entry. However, its uses are far-reaching and in practice, AI is being used to optimise multiple different areas of accounting, including:AutomationThis has quickly become one of the dominant uses of AI in accounting. Accountants and business owners can use AI-powered tools to eliminate time-consuming daily to-do lists. Tasks like generating reports, organising your transactions, and bank reconciliations can all be automated through AI.With massive amounts of tasks being processed automatically, jobs that would’ve taken hours manually can now be executed in just minutes. This means that less time is being spent on dreary admin, and more focus can be put on complex and nuanced objectives.Tax research and preparationAccording to the Reuters report, tax research is currently the number one most common use case for AI in smaller accounting firms. It’s being used to speedily extract useful data from tax-related content.In addition to AI-boosted research, these firms are also using AI to more efficiently file tax returns for their clients. The AI is used to automatically extract and analyse information from documents to make the process of preparing tax returns much faster and more efficient.Deeper data analysisBusinesses are using AI algorithms to analyse their data (such as financial transactions), and pull out insights that inform their strategy and boost profitability. Some firms are taking this a step further by using these algorithms to create predictive insights.These are being used by tax firms to plan ahead for their clients, identifying trends for a more effective tax strategy. The real-time insights gained from AI can create dynamic budgets which are able to adapt to market shifts.Eliminating errorsAccountants are using AI to spot errors in real time, flagging up mismatched balances or figures that don’t quite add up. It can also be used to analyse data to ensure it’s compliant with the latest tax codes and rules.This same principal can also be applied to detecting suspicious behaviours: with AI, accountants can now scan huge amounts of data to identify potentially fraudulent activity.Additionally, a post from The Institute of Chartered Accountants in England and Wales (ICAEW) detailed some of the more interesting ways its own members had been using AI to improve at their jobs:Audit documentation: an improved understanding of a client’s sales processReporting standards: using generative AI to learn differences in reporting standardsReview control processes: using AI to quickly understand a company’s unfamiliar control processImprove data sharing: moving data from Excel to Power BI to get a different look at financesAn interesting trend from the Reuters report is that so far, firms are not prioritising specialist tax or accounting AI tools. They’re sill primarily using open-source AI apps like ChatGPT. The benefit is that these tools are accessible to anyone, and this means that even the most basic, cash-strapped startup can integrate a free AI tool into their processes. The top five most popular use cases of AI in small accounting firms According to the results of the survey from Reuters, the top five uses of GenAI in the industry (tax, accounting, and audit work) are:Tax researchTax return preparationTax advisoryAccounting/bookkeepingDocument summarization The benefits of using AI in accountingIt’s clear what the industry is using AI for, but what effect is that having on accountants and their clients? To give a better understanding of what this means, here are are four clear benefits from using AI in accounting.Save time: by automating tasks and generating reports, you and your staff will have increased time to dedicate to more important priorities.Faster growth: AI allows businesses to grow and expand at a rate that was previously unattainable. Agentic AI can be used to inform and support scalability.More multitasking: with less time dedicated to data entry tasks, this frees up accountants to juggle multiple high-value tasks at once.Improved service for clients: not only does the time saved by using AI mean clients can receive more attention, AI can also be utilised to analyse your clients’ information in order to provide a more tailored service for them.A word of caution, though: AI is far from infallible. Be extremely cautious with any accounting or tax information you’ve gleaned from AI, as the technology isn’t perfect. Take any guidance given with more than just a grain of salt. Make sure you do your due diligence and thoroughly research any AI-derived “facts” to ensure the information you’re working with is correct. Factors to consider before using AI in accountingMany businesses might still feel (understandably) hesitant about introducing AI into their workflows. The technology is still very recent, and there’s a lot that can go wrong.Accounting is an incredibly complex topic with a lot of nuance. To fully understand accounting, you need years of knowledge. Not only that, but the whole business requires specific skills. This can’t just be replaced overnight with an algorithm and nor should it.One area to be very cautious about: AI doesn’t always self-update. Accounting is a complex industry with tax codes and laws that are constantly updating and changing. AI won’t necessarily be able to adapt by itself.This limited adaptability affects AI’s accuracy, which is a key concern when using AI in accounting. The respondents of the Stanford University survey included “62% who were worried about errors and accuracy in AI-generated reporting“.You shouldn’t become too heavily reliant on the automation either, as pre-filled data suggested by AI can in fact be incorrect. While AI can be a massive time-saver when doing your accounts, you should always check that everything is correct. This requires a discerning human eye.If incorrect data is inputted into AI, then this can spiral out of control quickly. It’s important not to leave AI on autopilot, but make sure it’s being monitored thoroughly.AI isn’t capable of nuance or applying strategic thinking. Don’t see it as a replacement for a member of staff, but a tool that can be used to optimise your workflow. It can’t apply judgement to a situation and it should never be solely responsible for handling your business’s accounting.It’s perfectly fine to responsibly use AI tools to make your daily life easier, but we’d recommend businesses of all sizes to seek out an accountant, who will be able to advise on complex areas like tax. How to start using AI in your accounting workflowBy far the easiest way to start using AI in your accounting workflow, is through accounting software. Especially if you’re a one-person-band and using accounting software for the self-employed.While accounting firms themselves are using more sophisticated AI workflows, for the average small business owner there are more simple (but highly effective) ways to use AI to make your bookkeeping easier. These will also help to minimise stress when its time to do your accounts.Your main goal for using AI in accounting workflows is to make your bookkeping more proactive, and less reactive. This means creating visibility through real-time automation and insights, as opposed to trying to quickly sort everything out by the end of the month.One of the simplest, and most helpful, AI-tools you can fit into workflow is receipt capture. Tools like AutoEntry (through Sage), or HubDoc (powered by Xero), allow you to cut out the time wasted on manually uploading your receipts. By using these tools all you need to do is:Snap a photo of your receipt through the app (this can also be used for bank statements, invoices, and other financial documents) and it will extract the key infoSelect the right categories on your accounting software (this step can be automated later)Publish! It’s as easy as that, all the data will be sent directly to your accounting softwareAI productivity assistants also now come frequently built-in to accounting software platforms. You can ask these chatbots when unpaid invoices are due, and then set reminders for you. For example, with QuickBooks’ Simple Start plan you’ll be able to use Inuit Assist to rapidly categorise your bank transactions with AI.AI tools like Intuit Assist, or Sage Copilot, are built into the software and intuitive to use, so you don’t need to be a tech whizz. Sage Copilot (Sage’s AI-powered productivity assistant) is built into every Sage plan, and can help you execute tasks faster and provide insights into your workflow.Zoho Books’ (our number one option for a free accounting software) free learning platform Zoho Academy suggests running targeted AI training for your staff, if you have employees assisting with your accounts. If you have any staff members helping with your bookkeeping, you should make sure they’re fully up to speed on how you’re using AI within your workflows. Will AI replace accountants?The short answer is, no. For the moment, accountants aren’t under threat from being replaced by bots. Despite the World Economic Forums’ The Future of Jobs Report 2025 proclaiming ‘accounting, bookkeeping and payroll clerks’ to be some of the top fastest declining jobs, things might not actually be so bleak.A new study published by Jung Ho Choi (assistant professor of accounting at Stanford Graduate School of Business), along with Chloe Xie (MIT Sloan School of Management), suggests a more positive future for AI’s role in accountancy. It contends that AI is here to help accountants, not replace them.The results of survey responses from the study suggested that while AI is eliminating a lot of the grunt work, rather than making accountants’ roles redundant, it actually means they can use their extra time to apply their expertise. The study showed that accountants that use AI “support more clients per week and finalise monthly statements 7.5 days faster than those who use traditional methods.”The study also investigated the concern that using generative AI would lead to lower standards and poorer quality work. According to the study, “accounting firms using generative AI saw a 12% rise in reporting granularity, meaning they kept more detailed records.”AI is highly unlikely to replace the skill and expertise of a flesh-and-blood accountant in the near future, but it will be able to help them cut down on time spent on admin. In summaryWhile rapid advancements are being made in the accounting industry by AI, accountants don’t have to worry about being replaced just yet. The advancements into automation and machine learning are being used to cut out the dull leg-work of accountancy, leaving more time to apply strategic thinking and tackle important priorities.The good news for small business owners is that you don’t need to have an entire IT department or be a tech guru to be able to start reaping the benefits of AI in your own accounting workflows. There are many tools out there that can make life easier for both you and your accountant, and if you don’t start adopting them now, there’s a chance you could be left in the accounting dark ages.Even if you’re a solopreneur, there’s a good chance you can start using basic AI-tools through your chosen accounting software platform. With Making Tax Digital (MTD) about to come into effect in April, now ‘s the best time to get acquainted with any AI-tools that can help you be fully MTD compliant, even if it’s as simple as receipt capture. Startups.co.uk is reader-supported. If you make a purchase through the links on our site, we may earn a commission from the retailers of the products we have reviewed. This helps Startups.co.uk to provide free reviews for our readers. It has no additional cost to you, and never affects the editorial independence of our reviews. Share this post facebook twitter linkedin Written by: Emily Clark Writer Having worked in a startup environment first-hand as a Content Manager, Emily specialises in content around organisational culture - helping SMEs build strong, people-first workplaces that stay true to their core values. She also holds an MSc in Digital Marketing and Analytics, giving her the knowledge and skills to create a diverse range of creative and technical content. Aside from her expertise in company culture, her news articles breaks down the big issues in the small business world, making sure our SME audience stays informed and ready for whatever’s next. With a genuine passion for helping small businesses grow, Emily is all about making complex topics accessible and creating content that can help make a difference.