Hi Reader,

You know that moment in a film when the main character walks into a room and realises everyone else already knows something they don't?

That's roughly the theme of this issue.

Several significant rules changed on 6 April. A major tax shift is now live. And Companies House has quietly started paying closer attention to things most small business owners have never thought twice about.

We're here to close the gap.

IN THIS ISSUE:

• Your employment rules changed on 6 April — and most small employers still haven't caught up
• Making Tax Digital is now live — the first quarterly deadline is 7 August, and HMRC is watching
• Companies House wants a word about your SIC code — wrong codes now trigger regulatory attention
• Plus: free AI tools worth actually using, a data compliance deadline landing in 18 days, and the spring economic picture

⚖ YOUR EMPLOYMENT RULES CHANGED. HERE'S WHAT'S DIFFERENT NOW.

If you employ anyone — even one person — the rules shifted under your feet on 6 April 2026.

The Employment Rights Act 2025 brought in a package of changes that are already in force. Not coming soon. Not subject to consultation. In force.

Here's what changed:

• Statutory Sick Pay now starts from day one. Previously, employees had to wait three days before SSP kicked in. That waiting period is gone. Any sick absence from 6 April is payable from day one.
• Family leave rights have expanded. The qualifying period for several types of leave has been reduced or removed entirely. Some entitlements now apply from the first day of employment.
• Whistleblowing protections are stronger. The categories of protected disclosure have widened, and dismissing a whistleblower now carries greater legal risk.

And the Fair Work Agency — a new enforcement body — is now operational, with powers to investigate, fine, and pursue employers who underpay or breach workers' rights.

The bit most employers aren't talking about: More changes are already scheduled.

From 1 January 2027, unfair dismissal protections kick in after just six months of employment rather than two years. Anyone you hire on or before 1 July 2026 will reach that six-month mark before the new year. Hiring decisions you make in the next four weeks will be governed by the new rules almost immediately.

This doesn't mean stop hiring. It means know what you're signing up for before you sign someone on. A quick review of your contracts and absence policies is time well spent this week.

📊 MAKING TAX DIGITAL IS LIVE. YOUR FIRST DEADLINE IS 7 AUGUST.

If you're self-employed and your income is over £50,000, Making Tax Digital for Income Tax is no longer something you're preparing for. It's something you're already subject to.​

MTD for Income Tax went live in April 2026. That means digital record-keeping and quarterly updates filed directly to HMRC through compatible software. The old annual Self Assessment isn't disappearing, but it's no longer the only filing you do.

The first quarterly update covers 6 April to 5 July 2026. The deadline to file it is 7 August 2026.

HMRC has confirmed no penalty points will be issued for late quarterly updates in year one, provided you've signed up to the scheme. That's breathing room, not an excuse to ignore it.

If your income sits between £30,000 and £50,000, your MTD obligation starts April 2027. Now is the right time to pick your software and get your records in order, before it's urgent.

🏢 COMPANIES HOUSE HAS STARTED CHECKING YOUR SIC CODE.

A Standard Industrial Classification code. Four digits. Most people enter one when they form a company, then never think about it again.

Companies House is now thinking about it for you.

​New guidance published in May makes clear that inaccurate SIC codes — particularly companies coded as dormant that are clearly trading — will now attract regulatory attention. This sits within a broader enforcement push under the Economic Crime and Corporate Transparency Act 2023.

The practical risk is low if your filing reflects reality.

But if you registered years ago, picked a code that roughly fitted, and haven't revisited it since, a five-minute check is worth your time. You can update your SIC code on your next confirmation statement — or flag it now if you think it's wrong.

WORTH CHECKING OUT THIS WEEK

• ​Free AI tools worth actually using in 2026. A UK agency tested free-tier tools and shortlisted five — including Claude, Copilot, and Notion AI — that genuinely deliver for small teams. No subscriptions required. (Morningfold)
• ​Data complaints deadline: 19 June 2026. Under the Data (Use and Access) Act 2025, every business must have a documented data protection complaints process in place by 19 June. That's 18 days away. A quick admin task — legally required. (CMS Law)
• ​Companies House business plan 2026. CH has committed to better digital tools, faster response times, and improved guidance for small business filers. If you've ever wanted their systems to work better, this is the plan they're held to. (Companies House)

We’re curious …

The April employment law changes were significant — but we suspect most small employers found out late, or are still catching up.

What's your experience been? Did the changes catch you off guard, or were you already across them?

Hit reply and let us know. We read every response, and it genuinely shapes what we cover next.

We’re here to help you make better business decisions quicker — right from BEFORE day one.

All the best,

Graeme and Neil

Co-founders, Basics of Business (BoB)

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