Sponsored content: Rachael Wornes, marketing manager at Arag, runs through some of the developments that are changing the legal landscape for businesses during 2025 and into 2026
The government’s first legislative year was a busy one, which included both news Acts and the implementation of several reforms passed by their predecessors.
Safety online
The Online Safety Act 2023 may have had major social media, search and pornography platforms in its sights when it was passed two years ago, but Ofcom estimates that over 100,000 online services could fall into scope.
Any business offering internet search, pornographic content or communication between users will need to comply.
ID verification
Next month, it should become harder to use companies for illicit purposes. Companies House online identity verification is currently voluntary, but will become compulsory for any director or ‘person with significant control’ (PSC) from 18 November 2025.
Martyn’s Law
The Terrorism (Protection of Premises) Act 2025 was proposed by the previous government after years of campaigning by Figen Murray, the mother of Martyn Hett, who was one of 22 people killed in the Manchester Arena terror attack.
The law created ‘standard’ and ‘enhanced’ duties for those responsible for qualifying premises with a potential capacity of more than 200 or 800 people, respectively. Any organisation responsible from premises that could reach the lower threshold should start preparing for the law’s implementation in 2027.
Smoke without fire
Another law first introduced by the previous government, the Tobacco and Vapes Bill, will go much further than the ban on single-use vapes introduced in June. It aims to outlaw selling tobacco products to anyone born after 2008 and introduce tighter rules around promoting and selling vapes.
Digital self-assessment
Launched back in 2015, ‘Making Tax Digital’ only extended to VAT registered businesses, until now. From April, any sole trader or landlord with annual income over £50,000 will need to keep digital records and submit quarterly updates to HMRC. The £50,000 threshold will drop to £30,000 in 2027 and then £20,000 in 2028.
Renters’ rights
Another existing piece of legislation reborn after last year’s snap election, the Renters’ Rights Bill represents the biggest overhaul of the private rental sector in a generation.
Once passed, it would abolish section 21 notices and give tenants more certainty over their lease, improve minimum standards for rented properties and ban the use of bidding wars to drive up rents.
Employment rights
The government’s flagship legislation aims to ‘Make Work Pay’ and looks set to become law before the year is out. Most reforms will come into force from April 2026 and into 2027.
However, measures repealing much of the Trades Union Act (2016) and protecting workers from dismissal for taking industrial action should take effect as soon as the law is passed.
Living wages
This month, the Low Pay Commission will make recommendations for the annual increases to minimum wages, to be made in April. The Commission’s latest projection was for the headline National Living Wage to increase by 4.1% to £12.71, the smallest hike since 2019.
This year, the National Living Wage went up by 6.7% after near double-digit hikes in 2023 and 2024.
More to come
These are just a few headlines from some of the many changes to the business landscape that are continually emerging for companies of all sizes. Next month’s budget is likely to reveal more.
Fortunately, all of Arag’s policyholders can call their legal advice helpline for specific guidance on these or any other legal or tax questions they may have.
