Running a business means dealing with change. But with a number of UK Government reforms already taking effect – and more on the horizon – the remainder of 2026 is an important time for businesses to make sure they are prepared.
From changes to employment rights and Companies House requirements to Making Tax Digital and new rules businesses will need to consider in 2027, there is plenty for business owners and directors to keep on their radar.
For businesses across Cornwall, Devon and the wider South West, particularly SMEs where owners are often juggling several roles at once, keeping up with every Government announcement isn't always easy.
So, what should businesses be aware of as we head towards 2027?
Here are some of the key changes worth preparing for.
One of the biggest changes for limited companies is the introduction of mandatory identity verification at Companies House.
Since 18 November 2025, identity verification has been a legal requirement for new company directors and new People with Significant Control (PSCs).
Existing directors and PSCs are going through a transition period, meaning many established companies will need to take action during 2026.
The changes form part of wider reforms introduced through the Economic Crime and Corporate Transparency Act 2023. They are designed to make the Companies House register more accurate and make it harder for people to create or control companies using false identities.
Existing directors generally need to provide their Companies House personal code as part of their company's confirmation statement during the transition period.
Companies House also states that companies will not be able to file a confirmation statement unless all of their directors have completed the required identity verification.
For business owners, this makes it important to check:
If you are involved in more than one company, remember that verification isn't necessarily something you should assume has been dealt with simply because you've completed a process for one business.
With the transition continuing through 2026, this is one area limited companies shouldn't leave until the last minute.
Businesses employing staff also need to be aware of significant employment law reforms.
The Employment Rights Act 2025 is bringing changes into effect in stages, with further measures scheduled during October 2026 and into 2027.
Changes being introduced during October 2026 include measures relating to tipping law, trade union rights and protections against certain forms of harassment.
Other reforms are due to follow.
One particularly important change for employers is the planned reduction in the qualifying period for ordinary unfair dismissal from two years to six months, which the Government's implementation timetable says is due to take effect from 1 January 2027.
This could have implications for businesses' recruitment, management and HR processes.
Even if you're a small employer with only a handful of staff, it's important to understand how employment law changes could affect your responsibilities.
Now is a good opportunity to review employment contracts, workplace policies and HR processes and make sure those responsible for managing employees know what's coming.
Businesses may also want to consider the potential financial implications of employment changes when creating their budgets and forecasts for 2027.
Making Tax Digital for Income Tax officially entered a major new phase in April 2026.
From 6 April 2026, qualifying sole traders and landlords with total qualifying income of more than £50,000 are required to use Making Tax Digital for Income Tax.
Instead of relying solely on the traditional annual Self Assessment process, those affected are required to keep digital records and submit quarterly updates to HMRC using compatible software.
But businesses below the current threshold shouldn't necessarily ignore MTD.
From April 2027, the qualifying income threshold is due to reduce to more than £30,000.
It will then fall again to more than £20,000 from April 2028.
That means many more sole traders will be brought into Making Tax Digital from next year.
If you expect your qualifying income to put you within the 2027 threshold, preparing now could make the transition significantly easier.
Consider whether your current bookkeeping system is suitable, whether you're keeping adequate digital records and whether the software you use will be compatible with MTD.
The important thing is not to wait until April 2027 before thinking about it.
Government changes don't only create additional administration – they can also have a direct impact on business costs.
For employers, staffing is often one of the largest expenses, which makes payroll changes particularly important when budgeting.
National Minimum Wage and National Living Wage rates are normally updated each April.
Although businesses should wait for official Government announcements before building final figures into their payroll, employers planning their 2027 budgets should leave room for potential increases in employment costs.
And salary isn't the only cost to consider.
Employers may need to account for National Insurance contributions, workplace pensions, holiday pay, training, equipment and other costs associated with employing staff.
If you're thinking about recruiting or expanding your team during 2027, forecasting the true cost now can help you make a more informed decision.
Identity verification isn't the only Companies House reform businesses should know about.
Companies House has been given greater powers to query information, request supporting evidence and take action where information appears incorrect or misleading.
There are also significant changes coming to the way company accounts are filed.
Companies House announced in June 2026 that mandatory software filing for company accounts is now planned to begin from April 2028.
While that might sound some way off, the direction of travel is clear: company administration and accounting are becoming increasingly digital.
Businesses that still rely heavily on paper records, spreadsheets or manual processes may benefit from reviewing how their financial information is managed well before the new requirements arrive.
Moving towards more effective digital bookkeeping can also give businesses a much clearer picture of their financial position throughout the year.
With so much attention on new Government rules, it's equally important not to lose sight of the responsibilities businesses already have.
Corporation Tax, VAT, PAYE, National Insurance and Self Assessment deadlines continue regardless of other regulatory changes.
Late filings and payments can result in penalties, interest and unnecessary stress.
This becomes particularly important as businesses approach the end of the calendar year.
Rather than simply looking backwards at what the business earned, businesses can use their financial information to look ahead.
Ask yourself:
Understanding these numbers before the year ends gives you more time to make decisions.
Perhaps the biggest message for South West businesses is simply: don't wait for January.
September and the final quarter of the year provide an ideal opportunity to start looking ahead.
Businesses across the South West have faced significant changes in recent years, and staying financially resilient means understanding what's coming rather than reacting after it happens.
Your 2027 planning could include reviewing:
If your business is planning to grow next year, the numbers should form part of that conversation from the beginning.
For example, increasing turnover sounds positive, but growth can require additional staff, stock, equipment, premises and working capital.
Understanding whether your business can comfortably afford those investments is just as important as deciding that you want to grow.
You don't need to become an expert on every piece of tax legislation, employment law or Companies House regulation.
But business owners do need to know which changes affect them and when they need to take action.
Before the end of 2026, consider carrying out a simple business financial and compliance health check.
Look at what's changing, identify which areas apply to your business and make a plan for dealing with them.
For some businesses, the priority may be Making Tax Digital.
For others, it could be Companies House identity verification, staffing costs or preparing financially for growth.
And for many SMEs, it will be a combination of several things.
The earlier you understand what's coming, the more time you have to prepare.
Running a successful business isn't just about knowing where you've been financially. It's about understanding where you're going next.
With Government requirements continuing to evolve, having accurate accounts, reliable financial information and a clear understanding of your responsibilities can help you make better business decisions.
At GW Accountants, we support businesses across the South West with their accounts, tax and financial planning, helping business owners understand their numbers and stay prepared for what's ahead.
Whether you're planning to grow, taking on employees, getting ready for Making Tax Digital or simply want a clearer picture of your finances before 2027, now is a good time to start the conversation.
Don't wait for 2027 to start planning for 2027. Get in touch with GW Accountants and make sure your business is ready for what's next.
Please note: This article provides general information only and should not be considered individual tax, legal, employment or financial advice. Government policies and implementation dates can change. Businesses should check the latest GOV.UK guidance and seek professional advice relevant to their individual circumstances.
