27th February 2026 – Hillmans Weekly Update

Welcome to our latest round-up of the latest business and tax news for our clients. Please contact us if you want to talk about how these updates affect you. We are here to support you!

Have a great weekend.

Kind regards,
 
Steve
 
Steven Hillman BSc (Hons) FCA
Chartered Accountant
Tel: 01934 444100
https://www.hillmans.co.uk

Spring Statement 2026: What Businesses Should Expect on 3 March
The Spring Statement will be delivered in Parliament on 3 March, giving an update on the state of the UK economy and the government’s financial outlook.

Unlike the Autumn Budget, the Spring Statement is unlikely to be used for big tax decisions. For businesses it is a useful event as it may set the tone for the months ahead and could give early clues about future tax and spending pressures.

What the Spring Statement is
The Spring Statement is built around the latest set of economic forecasts from the Office for Budget Responsibility (OBR). The OBR publishes forecasts twice a year and considers areas such as growth, inflation, unemployment, government spending and tax income.

The OBR also has responsibility for checking whether the government is on track to meet its self-imposed fiscal rules. However, the Spring Statement will not make a formal assessment of this area as this is now only being reviewed once a year, in the autumn.

Even so, the OBR’s numbers are still likely to influence decisions the Chancellor will make later in the year.

What Is Happening
The Chancellor’s speech is likely to begin shortly after midday on 3 March. As soon as the speech is finished, the OBR’s full forecast will be published on the government website.

This is a change from previous practice, where the OBR would publish their forecast on their own website. However, due to the early accidental release of OBR data at last year’s Autumn Budget, controls are being tightened on how and when the forecast is published.

Will There Be Any Tax or Spending Changes?
This seems to be highly unlikely. The Chancellor has made clear that she intends to announce major policy decisions only once a year, at the Budget in the autumn. The idea is to stop the cycle of constant speculation that can affect business planning and household spending.

However, while we are not likely to see new tax rises or cuts in the Spring Statement, we could perhaps see smaller administrative or follow-up measures.

For most businesses though, the real interest will lie in the OBR’s figures, especially inflation, growth and unemployment, as these influence future interest rates and wage pressures and may indicate the likelihood of tax changes later in the year.

For example, persistent weak growth or rising unemployment may increase the pressure to raise taxes or limit spending. Alternatively, if the OBR gives a more optimistic outlook, especially on inflation, it may strengthen the case for interest rate cuts.

In summary, the Chancellor’s speech is not expected to make sweeping policy changes, but her comments could give a sense of how the government sees the economy developing over the next 12-18 months.
 
A Practical Look at the Cycle to Work Scheme for Employers
The Cycle to Work scheme continues to attract interest from employees and employers alike looking to optimise their salary package and perhaps gain a tax break.

Below is an overview for businesses considering running a scheme or reviewing their existing arrangements.

The Basic Structure
The scheme allows an employer to provide a bike and eligible safety equipment tax free to their employees.

This is often done in conjunction with a salary sacrifice agreement where the employee’s gross pay is reduced for a set period to cover the costs. The salary sacrifice means the employee pays less income tax and national insurance, and the employer pays less employer national insurance.

Bikes can be provided in different ways.

• The bike and equipment can be loaned to the employee.
• A voucher can be provided so that the employee can hire the bike and equipment.
• Pool cycles can be made available for the general use of employees.

At the end of the hire period, employees can either continue hiring, return the bike, or buy it at a fair-market-value payment based on HMRC guidance.

Conditions That Must Be Met
To be compliant with the rules:

• The employee must not own the bike during the hire period.
• The bike must be used mainly (>50%) for commuting or work-related travel.
• The scheme must be available to the whole workforce. 

Practical Considerations for Employers
Most employers work with a third-party provider to manage the administration work, although there is no reason it cannot be run in-house.

HMRC does not expect employers to monitor the non-work use employees make of the bike, nor are employees expected to keep detailed records of their bike use to justify how it is being used.

If salary sacrifice is being used along with the Cycle to Work scheme, there is a need to be careful that the scheme still meets the requirement to be available to all employees.

Subject to partial exemption rules, VAT can be reclaimed on any bikes and equipment purchased by the employer.

In Conclusion
Cycle to Work remains a straightforward way for employers to provide tax efficient support to their employees. If you would like personalised advice on whether or how a scheme could work in your workplace, please get in touch. We would be happy to help you!
 
Draft CBAM Rules Published
The government has published the draft secondary legislation for the UK’s Carbon Border Adjustment Mechanism (CBAM), which is due to go live on 1 January 2027. This is an important development for UK businesses importing affected materials.

What is CBAM?
CBAM has already been introduced in the EU and will apply a carbon price to certain imported goods to reduce the risk of “carbon leakage”. This is the concern that emissions-intensive production simply shifts overseas when the UK tightens its own environmental standards.

UK importers of goods from the aluminium, cement, fertilisers, hydrogen, and iron and steel sectors as well as downstream producers that use these goods in their supply chains are likely to be affected by CBAM.

CBAM is scheduled to begin on 1 January 2027, and the primary legislation for this has already been included in Finance Bill 2025-26. The new draft rules include the legislative requirements that are associated with administering the tax. 
 
What the draft rules cover
The draft legislation includes details on:

• Calculation of the CBAM rate.
• The availability of carbon price relief that can reduce the amount of CBAM charged.
• The administrative requirements relating to registration for CBAM
• What information must be included on CBAM tax returns and related record keeping.
• Details on the reimbursement arrangements.
• How the weight of a CBAM good will be defined and record keeping.
• What records importers need to keep

In short, if you import goods that are affected by CBAM, these rules give you a look at the administrative workload CBAM will introduce.
What’s next?
The documents are open for technical consultation until 24 March 2026, and HMRC is looking for feedback on whether the draft rules are workable in practice.
To review the draft rules and the consultation in full, see: https://www.gov.uk/government/consultations/draft-regulations-carbon-border-adjustment-mechanism-cbam
 
Small Business Britain Provides Beginner-friendly Resources on AI
Small Business Britain has created an online hub dedicated to providing businesses with practical, beginner-friendly resources that can help with getting started in using artificial intelligence (AI).
The hub contains jargon-free guides and video walkthroughs on subjects such as:

• What even is generative AI?
• Can AI save me time?
• How to write a prompt
• How to keep a personal voice

An online course, the AI for Small Business Programme, is also available on the site. This six-week online course is designed to help small business owners unlock AI’s potential in their own business.

There are also webinars and a session from AI experts that can help demystify AI and give you some practical advice on where to start.
The hub is available here. 
 
New FCA Rules for Buy Now Pay Later
Unregulated Buy Now Pay Later (BNPL) agreements will fall under full FCA regulation from 15 July 2026. For the first time, BNPL lenders will need to meet the same expectations as other consumer-credit providers. With almost 11 million UK adults using BNPL in 2024, according to an FCA survey, this is a significant change.

The changes aim to provide clearer protections to individuals who rely on BNPL regularly and may be at risk of taking on commitments they cannot repay.

What Protections Are Being Introduced?
Once the rules take effect, BNPL businesses will have to comply with the FCA’s Consumer Duty. This includes the following changes:

• Clearer information – Customers must be given clear, upfront details of what they are signing up to, including repayment dates, amounts, and what happens if a payment is missed. 
• Affordability checks – Lenders will need to check that a customer can afford the borrowing before they offer BNPL. 
• Support when needed – Lenders will need to offer support to customers who are in financial difficulty and direct them to free debt-advice services, where that is appropriate. 
• Complaints and compensation – Customers will be able to take complaints to the Financial Ombudsman Service.

Why BNPL is Coming Under Regulation
BNPL has grown rapidly in recent years, from £0.06bn in 2017 to more than £13bn in 2024.

For many, BNPL provides short-term flexibility and can help with managing cash-flow. However, without affordability checks, there has been a concern that some may be taking on more debt than they realise.

Timescales
BNPL providers will need to have full FCA authorisation. A temporary permissions regime will open from 15 May to 1 July 2026 so that providers can register while they prepare their full application. Once the new regime begins, six months will be allowed for providers to obtain full authorisation. 
 
What This Means for Businesses
If you use a third party BNPL provider, you may see some adjustments to the way you interact with customers as new affordability checks are introduced.
Your BNPL provider will likely let you know about the needed changes in good time. However, since a failure on their part could reflect negatively on your business, it would be worth staying aware of these changes so that you can check that your provider will comply with the new rules.

See: https://www.fca.org.uk/news/press-releases/new-protections-confirmed-buy-now-pay-later-borrowers
 
New Simpler Sustainable Farming Incentive Announced
Environment Secretary Emma Reynolds announced a new Sustainable Farming Incentive (SFI) offer while addressing the National Farmers’ Union Conference that will be simpler, fairer and more stable.

The new SFI will include 71 actions, a reduction on the current 102, and will be capped at £100,000 per year.

Applications will open in June 2026 for small farms (holdings of three to 50 hectares) and those without a live Environmental Land Management (ELM) revenue agreement.

In September, a second application window will open for all farmers. Further details will follow.

See: https://www.gov.uk/government/news/reynolds-farm-tech-supercharged-to-boost-profitability
 
Guidance Released on the New Business Rates Relief for Pubs and Live Music Venues
The government has released fresh guidance on the new business rates discount for pubs and live music venues in England for the 2026/27 tax year. If you run a hospitality business, or a venue that hosts live performances, the new relief could reduce your rates bills over the next three years.

As announced in January 2026, eligible properties will receive a 15% reduction on their 2026/27 business rates bill. Those rates bills will then be frozen in real terms for 2027/28 and 2028/29. Further guidance will be provided nearer the time on how that freeze will work.

Which properties qualify?
To receive the relief, the property needs to be occupied and be wholly or mainly used as either a pub or a live music venue.

What is a pub?
A property is a pub if all the following apply:

• It’s open to the general public.
• It lets people in for free (except when occasional entertainment is provided).
• Customers can drink without having to buy food.
• Drinks can be bought at a bar.

Restaurants and cafes, nightclubs, and hotels are unlikely to be considered pubs for the purpose of the relief.

What counts as a live music venue?
A live music venue must be wholly or mainly used for live music performances put on to entertain an audience.

Ancillary activities, such as selling food and drink to the audience, would be unlikely to disqualify a property. The same would be true if there was infrequent use of the property to host a polling station or a community event.

Premises mainly used as nightclubs or theatres, based on planning use classes, are unlikely to be considered a live music venue.

There may be grey areas, especially when deciding whether an activity is a live music performance or instead the playing of recorded music. Guidance in the Licensing Act 2003 will be used to help with such situations.

How much will the relief be worth?
The discount is applied daily, at 15% of the business rates charge for each qualifying day.

The discount is applied after any mandatory reliefs due and certain other discretionary reliefs have already been given.

The relief is not subject to any cap.

What should businesses do now?
Local authorities are tasked with calculating the relief automatically once they have put their local scheme in place. Therefore, if the property meets the criteria, you should automatically receive any relief due on your 2026/27 rates bill.

In the meantime, it may be worth checking whether your current description and use of the property clearly match the definitions provided in the guidance.

See: https://www.gov.uk/guidance/business-rates-pubs-and-live-music-venues-relief-local-authority-guidance
 

20th February 2026 – Hillmans Weekly Update

Welcome to our latest round-up of the latest business and tax news for our clients. Please contact us if you want to talk about how these updates affect you. We are here to support you!

Have a great weekend.

Kind regards,
 
Steve
 
Steven Hillman BSc (Hons) FCA
Chartered Accountant
Tel: 01934 444100
https://www.hillmans.co.uk

Personal Tax Changes Coming in April 2026
With just a few weeks to go until the beginning of a new tax year, a new round of tax changes take effect from April 2026. While many people won’t see a big difference in their day-to-day tax position, there are some areas worth having on the radar.

Here is a run-through of some of the changes you may want to be aware of.

Dividend Tax Rises
The tax rates for dividends are rising from April 2026. The basic rate and higher rates are each increasing by two percentage points to 10.75% and 35.75%, respectively. The dividend additional rate remains at 39.35%.

Many company owners rely on a combination of salary and dividends for their pay. If that’s you, it’s important to review how you draw income and whether your current mix of salary and dividends still makes sense.

Thresholds Remain Frozen
The tax-free personal allowance and income tax thresholds all remain frozen and are set to stay that way until 2030/31. That ongoing freeze will continue to pull more people into higher rates of tax.

For Scottish taxpayers, there is an increase to the basic and intermediate rate thresholds. This means that lower earners will see a small increase in their take-home pay. However, because of fiscal drag, higher earners will be increasingly drawn into paying additional tax.

National Insurance and Voluntary Contributions
People with gaps in their national insurance contribution (NIC) record, those who are self-employed with low profits, or those who work overseas often consider making voluntary contributions.  

From 6 April 2026, the rate for Class 2 NICs (applicable to the self-employed) will be increased from £3.50 to £3.65. The rate for voluntary Class 3 NICs will increase from £17.75 to £18.40.

Aside from the increase in rates, a major change is that voluntary Class 2 NIC will no longer be an option for periods spent abroad. Making voluntary Class 3 contributions will be possible, but the qualifying criteria have been tightened.
 
Capital Gains Tax (CGT)
Business owners thinking about selling or restructuring should be aware that capital gains that are subject to business asset disposal relief or investor’s relief will be taxed at 18% for 2026/27, an increase from 14% in 2025/26.

Reliefs for disposals to employee ownership trusts have also been scaled back and the rules for share reorganisations have been tightened. Both changes are already in force.

These changes won’t affect everyone, but if you are considering business succession or restructuring, getting the timing and your approach right continues to be key.

Inheritance Tax - Agricultural and Business Property Relief Changes
As has been widely publicised, changes to Inheritance Tax (IHT) to Agricultural Property Relief (APR) and Business Property Relief (BPR) will come into force on 6 April 2026.

These reliefs were previously unlimited, but from April, 100% relief will be capped at £2.5 million of combined agricultural and business assets. Thereafter, the relief reduces to 50%. Unused amounts can be passed to a spouse or civil partner.

The £2.5 million limit is higher than initially proposed, but those who may be affected by the new cap may want to consider whether there are ways to rearrange their estate that would be effective in saving tax.

In Conclusion
If you are affected by any of these changes for 2026/27 and would like help in making sure you are in the best tax position possible, please get in touch. We would be happy to help you!

See: https://www.icaew.com/insights/tax-news/2026/feb-2026/prepare-for-2026-27-individuals
 
Could a Fiscal “Traffic Light System” Help Your Business Cut Through Uncertainty?
A leading think tank has criticised the fiscal rules that the Chancellor uses to determine the government’s tax and spending plans. The Institute for Fiscal Studies (IFS) has suggested that reducing complex finances to a pass‑or‑fail number misses the bigger picture.

The Treasury, on the other hand, has said that the rules are helping to keep borrowing costs down and support long‑term investment.

Of course, which view is correct when it comes to managing the country’s finances could be an endless debate. However, the IFS proposal brings up an interesting idea that many businesses are using with success.

The IFS Proposals
The IFS are advocating moving to a fiscal “traffic light” system. Rather than judging the economy against the one requirement for “headroom”, a broader set of indicators should be assessed. And given a green, amber or red status.

Why This Idea Might Feel Familiar to Businesses
This traffic‑light idea is something many businesses already use informally. For instance, it’s very common to track financial health and business performance using a dashboard of red, amber and green indicators.

Business owners can get an ‘at-a-glance’ look at the different areas of the business and quickly flag potential problems.

Applying a Traffic‑Light System to Your Own Business
A simple set of indicators is often all that is needed. Three or four core measures can help to assess the business and check its day‑to‑day resilience. For example:

• Cash flow - green if you have several months’ operating expenses covered; amber if cash is tightening; red if you’re relying on short‑term borrowing.  
• Debt levels - green if repayments are comfortable; amber if interest is creeping up; red if refinancing is looming or facilities are nearly maxed out.  
• Profitability - green if margins are holding; amber if costs are rising faster than prices; red if losses are recurring.  
• Sales pipeline - green if opportunities are converting; amber if lead volumes drop; red if future revenue is unclear.

Businesses using a traffic‑light approach tend to make decisions earlier - whether that’s tightening costs, adjusting pricing, or negotiating with lenders. It also helps everyone in the business get a picture of what’s happening without necessarily needing to dive into pages of accounts.

If you would like help building a simple financial traffic‑light dashboard tailored to your business, we would be happy to work with you in developing something that is based on the metrics that matter most to your business.

See: https://www.bbc.co.uk/news/articles/c1kg48m937wo
 
UK Unemployment Rises as Wage Growth Slows
The UK’s unemployment rate has risen again, according to the latest data from the Office for National Statistics (ONS). In the three months to December 2025, unemployment increased to 5.2%, up from 5.1% in the three months to November. This marks the highest rate in almost five years.

Alongside the rise in unemployment, annual wage growth has slowed to 4.2%, its weakest pace in close to four years.

This combination of slower wage growth and rising unemployment suggests a cooling labour market.

Businesses Reacting to Higher Costs
Part of the slowdown may be linked to increased employment costs. The 2024 Budget raised employer national insurance contributions and increased the minimum wage.

Some businesses appear to have chosen to delay recruitment or leave vacancies unfilled as they review budgets for the year ahead.

Younger Workers Bearing the Brunt
The unemployment rate for 16–24-year-olds has risen to 16.1%. For school leavers and graduates, securing an entry-level role has become increasingly competitive.

Analysts have also raised concerns that investment in artificial intelligence could reduce the number of traditional starter roles over time, adding further pressure to new entrants to the job market.

Interest rates
The slowdown in wage growth may influence the Bank of England’s next decision on interest rates and could give room for a further rate cut.

Looking ahead
For your business, a softer labour market might make it easier for you to fill certain vacancies, with more applicants available for job openings. However, it could also hint at weaker consumer confidence that may lead to slower sales. If you are planning investment, recruitment or borrowing in the coming months, this may be a useful moment to revisit those plans rather than rush decisions.

See: https://www.bbc.co.uk/news/articles/c1l7pedyzjeo
 
Campaign Urges SMEs to Adopt Cyber Essentials as Cyber Threats Rise
A new campaign has been launched to encourage small and medium-sized businesses to take some simple, practical steps to protect themselves from the most common cyber-attacks. The main drift is that basic cyber hygiene still prevents the majority of incidents.

According to the Cyber Security Breaches Survey 2025, 43% of businesses and 30% of charities reported having experienced some kind of cyber security breach or attack in the last 12 months. Across the UK economy, cyber threats are estimated to cost £14.71 billion each year. For many businesses, a single major attack could be enough to put trading at risk.

Cyber Essentials
The campaign centres on Cyber Essentials, which was developed by the National Cyber Security Centre (NCSC) and the Department for Science, Innovation and Technology. It focuses on five key protections that most businesses can implement without needing to have specialist IT expertise. These are:

• Firewalls
• Secure configuration
• Software updates
• User access control
• Malware protection

These five areas address the weaknesses most commonly exploited by cyber criminals. Basic oversights, such as out-of-date software or a lack of control over who has access to IT systems, continue to be the root causes of many incidents.

Getting Started
To help businesses get started, some free resources are being promoted as part of the campaign, including:

• Cyber Essentials Readiness Tool - an online self-assessment to identify gaps
• Free 30-minute consultations with an NCSC-assured advisor for SMEs preparing for certification

While it can be tempting to think you are too small to be a target, most cyber-attacks are automated and opportunistic and look for weaknesses in systems regardless of the size of the business. This campaign is a timely reminder that basic measures can significantly reduce the likelihood of disruption, protect cash flow and help safeguard customer trust.

See: https://www.gov.uk/government/news/businesses-urged-to-lock-the-door-on-cyber-criminals-as-new-government-campaign-launches
 
Inflation Drops to 3%
According to the latest figures released by the Office for National Statistics, UK inflation eased to 3% in January, down from 3.4% in December. Lower food, fuel and airfare prices appear to have been the biggest contributors to the reduction.

It’s important to remember this doesn’t mean prices are falling; they are just rising more slowly. Businesses still dealing with higher wages, energy and supplier costs will know that firsthand.

The combination of softer inflation and a slowdown in wage growth has increased expectations that the Bank of England will cut interest rates again when its Monetary Policy Committee (MPC) meets in March.

The latest inflation figure may suggest some better news for businesses over the coming months. Perhaps an easing of costs generally, or some relief from interest costs, particularly if your business has an overdraft or variable-rate loans.

See: https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/latest
 
Employment Rights Act - What is Changing First?
A new website has been launched by the Department for Business and Trade (DBT) offering practical guidance and support on the changes that the Employment Rights Act will introduce and what they can do to get ready.

The website provides details of upcoming changes, including several that come into force from April 2026. These include:

• Statutory Sick Pay - No earnings threshold and no three-day waiting period mean more employees will now qualify. 
• Day-one family leave - Paternity Leave and Unpaid Parental Leave a right from the first day in a job. 
• Bereaved Partner’s Paternity Leave - A new right for time off following the death of a child’s mother or primary adopter. 
• Collective redundancy protections - The protective award for non-compliance is being increased. 
• Stronger protections for workers who report sexual harassment. 
• A new body called the Fair Work Agency will work to uphold workers’ rights and support businesses with compliance.

The website includes details on how to prepare for changes and a timeline of when further changes will be introduced. It can be found here and would be well worth saving to your browser favourites. 

13th February 2026 – Hillmans Weekly Update

Welcome to our latest round-up of the latest business and tax news for our clients. Please contact us if you want to talk about how these updates affect you. We are here to support you!

Have a great weekend.

Kind regards,
 
Steve
 
Steven Hillman BSc (Hons) FCA
Chartered Accountant
Tel: 01934 444100
https://www.hillmans.co.uk

Is “996 culture” Working Culture Relevant to Your Business?
The BBC has published an in-depth piece on “996 culture” - the practice of working 9 am to 9 pm, six days a week.
Although the examples mostly come from US tech companies, there are some useful lessons for UK business owners. Here are some points that stood out to us.

The Appeal of 996
The article looks at AI start‑ups in the US that openly promote 70‑hour working weeks, often attracting young, ambitious staff who see long hours as a badge of honour. Some businesses even advertise these expectations upfront.

996 culture is not new or unique to the US. It first gained popularity in China a decade ago when it was seen as a powerful tool in helping tech companies and start-ups gain traction. However, it led to a backlash of complaints about workers’ rights that led to a legal crackdown.

However, based on the BBC’s report it seems that competition in AI is pushing founders in the US to demand extreme commitment. They fear being beaten to market and believe working more hours equates to faster progress.

Concerns About 996
The report highlights several problems with the 996 approach.

For instance, while it is understandable and may even be expected that a founder with skin in the game would be working 70-80 hours per week, expecting the same of employees may not achieve more productivity and can exclude workers who would be vital to the business’s interests.

Continual long hours lead to long-term burnout and bring other health risks. For instance, the BBC notes the conclusions reached by an analysis published in 2021 by the World Health Organisation (WHO) and the International Labour Organisation (ILO). This showed that working 55 hours or more a week increased the risk of dying of heart disease by 17% when compared with working 35-40 hours. The risk of stroke also increased by 35%.

Besides health concerns, productivity does not increase in line with the number of hours worked. Research by Michigan State University suggests that employees are no more productive working 70 hours per week than if they worked 50 hours per week.

Could 996 Culture Work for You?
While 996 culture is not mainstream in the UK, there are proponents. In addition, for workers at large corporate law firms and investment bankers, the idea of working 70 hour weeks may feel commonplace. Some may enjoy what has been called “work-life integration.” However, there are downsides.

The Working Time Regulations mean that working more than 48 hours a week on average is not allowed unless the employee chooses to opt out and work longer, or they are doing a job that has exceptions under the law. This means that 996 is possible; pressuring staff to conform rather than giving them a genuine choice would be risky.

Practically speaking, a 996 approach may also make recruitment trickier. Employees would need a compelling reason to work 70 hours a week against a 35-hour week in an alternative job.

Over-reliance on unpaid or excessive overtime can also harm productivity, especially in the long run. Investing in skills, automation and smarter workflows could give a better return than working longer days.

For smaller businesses in particular, culture is a competitive advantage. A reputation for balanced, sustainable working patterns can make working for you more appealing and reduce the risk of employees leaving.

Finding a sustainable pace
If you are a business owner, the idea of 996 may feel uncomfortably familiar. Especially in the early stages of a business, there will inevitably be phases when the hours creep up. But if you feel this is becoming a permanent way of working, it’s usually a sign the business needs something to change rather than you simply working harder.

Often, the pressure comes from a few predictable places – cash flow tightness, gaps in capacity, unclear business processes or work that only you can do because no one else has been shown how. These business issues are often fixable once they have been identified.

If cutting back your hours is something you are aiming for, the first step is usually to understand where the strain is coming from. Once you can see that clearly, it becomes easier to work towards a more manageable workload. Sometimes just a small change in how the business is organised can make a big difference.

Whether you are thinking about workplace culture or your own situation, if you would like to talk things through or to see how your business could be made more scalable and less reliant on your time, please get in touch. We would be happy to help you continue running and growing your business sustainably.

See: https://www.bbc.co.uk/news/articles/cvgn2k285ypo
 
New Detail Published on How Last Year’s Budget Leak Unfolded
The government has now published its Review into the 2025 Autumn Budget leak, explaining how the Office for Budget Responsibility’s Economic and Fiscal Outlook (EFO) was accessible online an hour before the Chancellor was due to speak.

The Review sets out measures that will be taken to prevent this from happening again.

What actually happened?
The Review incorporates findings from the National Cyber Security Centre’s investigation, which found that the leak was a result of repeated attempts to access the webpage holding the EFO, rather than a hostile cyber-attack.

The fault lay in a misconfiguration in the way that the OBR’s website was set up. This meant that the webpage holding the report was accessible earlier than the OBR intended. Users who guessed the webpage address correctly based on previous reports were able to access the report.

The investigation found that around 520 of the 534 early access attempts were linked to just four IP addresses from the same internet provider. Investigators believe it is reasonable to assume this was the same individual or organisation.

The one or more individuals who secured early access seem to have then used social media and messaging apps to spread word of the early access. In all, the EFO was downloaded 24,701 times before the mistake was noticed.

What is changing?
The OBR is due to publish an EFO at the time of the Spring Forecast announcement on 3 March 2026. Historically, the OBR has published these reports on its own website rather than a government website in order to maintain its independence.

However, because of the sensitivity of the information contained in the EFO, it will be published on GOV.UK by HM Treasury. HM Treasury has commented that doing this will not give it access to any information ahead of time of which it is not already aware.

For future EFO and other market-sensitive publication releases, it is planned that OBR will move to using GOV.UK.

In readiness for the 2026 Budget, likely to be held in the autumn, there are plans to bring in other internal measures that will enhance security and limit data access.

To read the Budget Information Security Review in full, see: https://www.gov.uk/government/publications/budget-information-security-review
  
CMA Moves to Secure Fairer App Store Rules for UK Businesses
The Competition and Markets Authority (CMA) has announced a set of proposed commitments from Apple and Google that could make it easier for UK businesses that rely on app stores to reach their customers.

The CMA is inviting views on these commitments until 3 March 2026, with plans for them to take effect from 1 April 2026.

What’s happening?
The CMA has been working with Apple and Google since both companies were given “strategic market status” (SMS) in late 2025.
Almost all UK mobile devices run either Apple’s iOS or Google’s Android system, an effective duopoly, and the status gives the CMA powers to require changes where it sees problems for competition or fairness.

Rather than going straight to imposing conduct requirements, which can take time to implement, voluntary commitments have been agreed with Apple and Google to deliver immediate improvements.

What the commitments mean in practice
The UK app economy is big business, valued at £28 billion as of 2025 and supporting around 400,000 jobs. Many UK companies now depend on mobile apps as a core part of how they serve customers.

For UK businesses and developers, the proposed measures focus on four practical areas:

• App review: Apple and Google are committing to distribute apps on their app stores in a fair, objective and transparent way. They will not discriminate against apps that compete with their own, nor will they give preferential treatment to their own apps. 
• App ranking: The new commitments mean Apple and Google should not favour their own apps, nor push down apps that compete with them. 
• Data collection: Apple and Google have committed not to use data they gather from developers during an app review unfairly; for example, not using insights from your app to develop competing features. 
• Interoperability: Apple has agreed to make it easier for developers to more easily request interoperable access to features and functionality within their mobile operating systems. They have also committed to considering requests fairly and objectively. 

Monitoring
To ensure the commitments are met, the CMA will publish reports using data from Apple and Google. This will include:

• Percentage of apps submitted for review that are approved, rejected or appealed.
• Time taken for app reviews.
• The number and outcome of complaints.
• Interoperability requests made to Apple, outcomes and how quickly the requests are handled.

What next?
Chief Executive of the CMA Sarah Cardell said that the proposed measures are “important first steps while we continue to work on a broad range of additional measures to improve Apple and Google’s app store services in the UK, for example, by enabling more choice and innovation in digital wallets”.

The CMA is looking for views on the proposed commitments by 3 March 2026, with implementation planned from 1 April 2026.

See: https://www.gov.uk/government/news/cma-secures-commitments-from-apple-and-google-to-improve-fairness-in-app-store-processes-and-enhance-ios-interoperability
 
HMRC Moves to GOV.UK One Login for New Users
HM Revenue & Customs has started using GOV.UK One Login for taxpayers signing up to its digital services for the first time.

This means that if you do not already have a Government Gateway account, you will now register using an email-and-password login rather than needing to obtain a 10-12 digit Government Gateway ID.

For now, this only affects new HMRC users. Existing Government Gateway users do not need to switch yet.

Even if you already have a GOV.UK One Login that you use for another government service, you will still need to use your government gateway to access HMRC’s services for the time being.

HMRC plans to roll out GOV.UK One Logins gradually and will contact existing users when it is ready for them to move over.

Eventually, GOV.UK One Logins will become the single login for everything from filing a tax return to renewing a passport.

If you need help registering for or accessing HMRC services, please contact us. We will be happy to help you! See:
https://www.gov.uk/government/news/hmrc-introducesgovukonelogin-for-new-customers
 
DBS Launches New Safeguarding Podcast for Employers
The Disclosure and Barring Service (DBS) has launched a new weekly podcast series, ‘DBS discussions: Safeguarding in Focus,’ aimed at employers, HR teams and anyone working in safeguarding.

Each episode of the podcast features a DBS specialist explaining how key DBS processes work in practice. Topics will include:

• How DBS checks fit into recruitment.
• Common questions from employers.
• Clarity on eligibility and regulated activity.
• How barring decisions are made.
• The role DBS plays in wider safeguarding.

The first episode was released on 9 February 2026, and introduced the function of DBS and the impact of checks in recruitment.

New episodes will be available each week on Spotify, Amazon and YouTube.

6th February 2026 – Hillmans Weekly Update

Welcome to our latest round-up of the latest business and tax news for our clients. Please contact us if you want to talk about how these updates affect you. We are here to support you!

Have a great weekend.

Kind regards,
 
Steve
 
Steven Hillman BSc (Hons) FCA
Chartered Accountant
Tel: 01934 444100
https://www.hillmans.co.uk

Salary Sacrifice: Tax Efficient Options for Employers and Employees
With costs rising, many employers and employees are looking for practical ways to reduce outgoings without cutting benefits. Salary sacrifice can be an excellent tool to do this, but many businesses overlook it.

In short, salary sacrifice lets an employee give up part of their gross salary in exchange for a benefit such as a pension contribution, an electric car or a bike. Because the exchange happens before tax and National Insurance (NI), both sides can save money while staff gain a more attractive package.

A proposed cap on National Insurance relief for pension contributions received heavy publicity after the Autumn Budget 2025 announcement. However, the cap will not come into force until 6 April 2029. Until then, the advantages existing under the current rules remain available.

For employers, salary sacrifice can be an effective way to enhance benefits, improve recruitment and retention, and reduce tax costs. For employees, it can make benefits they value more affordable at a time when cash flow really matters.

If you want to understand how the numbers stack up for your business, we would be happy to help you calculate and compare the tax and NI position and show you exactly how salary sacrifice could work in practice for you and your team.
 
CMA Proposes New Rules to Give Businesses More Control Over Google Search
The Competition and Markets Authority (CMA) has announced a set of proposed measures aimed at increasing fairness, transparency and choice for businesses and consumers using Google’s search services in the UK.

Given that Google accounts for more than 90% of general search queries in the UK and took over £10 billion in UK search advertising spend last year, these changes could have a meaningful impact on how businesses promote themselves online.

Google was designated with Strategic Market Status (SMS) in October 2025, which doesn’t imply wrongdoing, but it does allow the CMA to impose conduct requirements.

Below is a summary of what is being proposed and what it may mean in practice for businesses relying on Google to reach customers. 
 
Improving user choice in search
Google is normally set as the default search service in its Android operating system and Chrome browser.

The CMA is proposing that it be made easier for users to choose which search service they want to use and be able to switch services more easily. If implemented, Google would be required to display more choice screens and give users the ability to change which search service they want to use at any time.

This change intends to help users select alternative search providers rather than defaulting to Google. That might mean a need to review advertising spend with Google but could also lead to lower advertising costs if competition between the various search providers increases.

Publisher choice and transparency
Content publishers, such as news outlets, blogs and others producing specialist content, are seeing a decline in the number of ‘clicks through’ to their websites because of generative AI features that Google is using.

The measures proposed would allow publishers more control over whether their material can be used within AI features, such as AI Overview, including being able to opt out.

There would also be clearer information for publishers on how their content is being used and Google would be required to take steps to ensure that any content used is properly attributed to the publisher.

Fair ranking
Search services are a key way of finding online customers, but many businesses lack confidence in how Google ranks websites.

Google can make changes to its algorithms at any time. This can result in additional costs to businesses as they try to understand what has changed and adjust their websites to ensure they stays visible in search rankings.

The CMA is looking to impose some ‘fair ranking’ conduct requirements. These include:

• Google not being allowed to discriminate based on whether the website has chosen to advertise on or has some other commercial arrangement with Google. A business opting out of its content being used in Google’s AI features could also not be discriminated against.
• Greater transparency on search rankings and a requirement to provide sufficient notice and information on upcoming changes.
• A clear and accessible process for complaints, with accountability to the CMA.

For businesses that rely heavily on search visibility, this could offer more confidence that search performance isn’t being undermined by opaque algorithms or unfair advantages.

Data portability
Google currently offer users the ability to transfer their search data to another provider. However, this is provided voluntarily, and the CMA is looking to make it a legal requirement.

What happens next?
The CMA is consulting on the proposals, and feedback is open until 25 February 2026. A final decision will follow once the responses have been assessed.
To review the consultation and participate, see: https://connect.cma.gov.uk/google-search-conduct-requirements
 
New Fuel Finder Scheme Helps Petrol and Diesel Price Comparison
Drivers can now compare fuel prices from every petrol station in the UK, thanks to a new government scheme designed to make fuel costs more transparent and to encourage greater competition between forecourts.

Beginning last week, every garage and fuel station must report its petrol and diesel prices to a central government database within 30 minutes of changing them. This data is then made available to apps and websites that motorists can use.

This means that apps such as PetrolPrices, Waze, MyRAC, and the AA app, as well as some in-car navigation systems and online map services can now pull in up‑to‑date pricing.

Motoring groups say that there can be differences of up to 20p per litre depending on where in the country petrol or diesel is bought. The Competition and Markets Authority (CMA) has also observed that fuel retail prices tend to “rise like a rocket but fall like a feather.”

If your business involves regular car travel, this could be a simple way to help keep your fuel costs down.

See: https://www.bbc.co.uk/news/articles/cp80dpzdg37o
 
Tech Giants Join Push to Improve Workplace Accessibility
The government has brought together major technology companies - including Google, Meta, Microsoft and Amazon - with disability charities to discuss how modern tech can help remove barriers that prevent disabled people from finding and keeping jobs.

The focus was on practical tools that are already available and how these could be more widely adopted. These include screen readers, real-time captioning and new AI-powered visual description tools.

This roundtable ties in with wider government plans, including the Connect to Work programme which is aiming to help 300,000 sick or disabled people into employment.

Plans are also afoot to overhaul the Disability Confident scheme with tougher standards and tailored support for smaller businesses. 19,000 employers have already signed up.

If you are an employer, the increased focus on making the workplace more accessible for disabled people may mean there are increasing opportunities to unlock talent that could both provide benefits to the community and improve your business.

See: https://www.gov.uk/government/news/tech-giants-meet-disability-sector-to-break-down-barriers-at-work
 
Lanarkshire to Benefit from New AI Growth Zone
Lanarkshire is set for a major investment boost with the launch of a new AI Growth Zone around DataVita’s data centre site in Airdrie.

Working with AI cloud firm CoreWeave, the project is expected to create more than 3,400 jobs over the coming years, including around 800 higher‑skilled roles linked directly to AI and data centre operations. Fifty apprenticeships will also be offered to help develop the next generation of AI expertise.

Alongside the jobs, the project includes a substantial community fund. As the site expands, up to £543 million could be invested into local programmes over 15 years, supporting skills and training packages, after-school coding clubs, and local charities and food banks. DataVita’s parent company, HFD Group, will also contribute £1 million a year to local charities.

Once completed, the Lanarkshire site will be one of the most advanced AI sites in the world. This is the fifth AI Growth Zone announced in the past year, joining sites in Oxfordshire, North and South Wales and the North East of England.

For local businesses, these zones could mean opportunities during the construction phase, as well as longer-term demand for specialist services once the site is up and running.

See: https://www.gov.uk/government/news/more-than-3400-jobs-and-targeted-support-for-local-communities-to-help-tackle-the-cost-of-living-as-lanarkshire-named-latest-ai-growth-zone 
 
Deadline Approaching for Business Rates Valuation Checks
Enterprises that pay business rates are being encouraged to check their current property valuation and make sure the details held by the Valuation Office Agency (VOA) are correct.

If you believe your valuation is wrong, you have until 31 March 2026 to request any changes to your current valuation.

After that, a new rating list comes into effect on 1 April, and you will only be able to request changes to your new 2026 valuation from that date.

To request any changes, you need a business rates valuation account. If you haven’t used yours recently, it’s worth checking that you can still log in. The verification process to claim a property can take up to 15 working days, so it’s sensible not to leave this until the last minute.

You will need a Government Gateway user ID or a One Login account to sign in to your account.

Support is available on GOV.UK for anyone needing help with registration.

See: https://www.gov.uk/government/news/deadline-for-challenging-your-business-rates-valuation