Following its mention in the King’s Speech, the Small Business Protections Bill has now been put before Parliament.
The Bill introduces measures that are designed to help alleviate some of the difficulties smaller businesses face in getting paid. They include: - A 60-day cap on payment terms for large businesses paying small suppliers. - Mandatory interest on late payments. This is to be set at 8% above the Bank of England base rate. - A prohibition on withholding retention payments in construction contacts. - New powers for the Small Business Commissioner to be able to investigate businesses that have poor payment practices, arbitrate in disputes and fine persistent late payers. - A requirement for the boards or audit committees of large companies to publish explanations of late payment performance and what steps are being taken to improve.
Smaller businesses will be keenly watching the Bill’s progress through its Parliamentary processes to see when these measures will come into force.
HMRC have clarified the position on Self Assessment tax return reporting requirements for directors of close companies and updated their guidance for directors of charities.
HMRC have updated guidance on UK VAT refunds for non-UK businesses in a VAT group. Revenue & Customs Brief 10 (2026) explains changes to how non-UK businesses in a VAT group should make future UK VAT refund claims and the transitional arrangements. It also explains how to ask HMRC to reconsider claims made since 1 January 2021 that have been refused.