National Minimum Wage (NMW) rates increase

The National Minimum Wage is increasing from 1st April 2025.

• National Living Wage (21 and over) £12.21 (increase of £0.77)
• 18-20 Year Old Rate: £10.00 (increase of £1.40)
• 16-17 Year Old Rate: £7.55 (increase of £1.15)
• Apprentice Rate: £7.55 (increase of £1.15)
• Accommodation Offset*: £10.66 (increase of £0.67)

*Accommodation provided by an employer can be taken into account when calculating the National Minimum Wage or National Living Wage. Learn more about Accommodation Offset here.

HMRC is offering live webinars to help employers get ready for the change, as well as talking over some common mistakes employers make. You’ll have the opportunity to ask questions throughout using the on-screen text box.

Digital Markets, Competition and Consumer Act

The Digital Markets, Competition and Consumer Act 2024 (DMCCA) comes into effect from April. This will bring with it significant changes for businesses - along with the potential for hefty fines, or even imprisonment, for those that fail to comply.

The Chartered Trading Standards Institute (CTSI) is running free training webinars that cover this important change in consumer protection legislation and how it will affect the way businesses operate. For further information and to book a place, visit the CTSI website here.

Changes to ICO data protection fee

By law, under the Data Protection (Charges and Information) Regulations 2018, organisations that handle personal information electronically, such as people’s names and addresses, must register with the ICO and pay the annual data protection fee, unless they qualify for an exemption.

The obligation to pay the fee is determined by how your organisation uses personal information for work purposes. For example, if you store personal information on a computer or phone you must check whether you need to pay the data protection fee. If you use CCTV or dashcams, you are likely to need to pay. 

In February 2025, new fee amounts where introduced by the government. These are based on your organisation’s nature, size, and turnover.

• Tier 1 (micro-organisations) – £52
• Tier 2  (small or medium-sized organisations) – £78
• Tier 3 (large organisations) – £3,763

The data protection fee applies to all organisations, from sole traders and independent practitioners to small businesses and charities, all the way up to global multinationals.

Organisations can use the ICO's self-assessment tool to check if they need to pay, and if so, how much. They can also register their exemption if applicable.

Changes to recycling regulations for businesses

Government regulations will soon change the way that businesses need to dispose of their waste, specifically requiring businesses to separate recyclable materials from general waste.

The Simpler Recycling scheme means that: 

• By 31st March 2025, businesses with 10 or more employees will be required to recycle all waste such as metal, glass, plastic, paper, card, and food waste (excluding garden waste and plastic film).
• By 31st March 2027, businesses with fewer than 10 employees will be required to recycle all waste as above (excluding garden waste). Plastic film collections from all businesses will also begin by this date.

Routine spot checks may be carried out to check that businesses are complying with the regulations. Any businesses that do not comply with the regulations could face a fine.

Defra are running monthly online Business Readiness Forums to help businesses learn more about the new regulations. See the list of upcoming dates here.

Learn more about the new requirements for businesses on the Business of Recycling website, where you can also get tailored advice based on your business needs and use a business waste calculator to see how you can save money by recycling.

The Department for Environment, Food and Rural Affairs (Defra) produce a monthly newsletter that provides updates on these reforms. Businesses can sign up to receive this newsletter here.

New rules for businesses selling to customers in Northern Ireland

New EU product safety rules have come into force as of 13th December 2024 that affect any small business in Great Britain that sells to customers in Northern Ireland (NI).

The regulations apply to new, repaired, used and reconditioned consumer products, and are aimed at ensuring that all consumer products placed on the NI and EU markets are safe, particularly those sold online. Under the EU General Product Safety Regulation, small businesses will have to name a 'responsible person' based in Northern Ireland. This person will be an official point of contact for product compliance and safety issues.

Export control webinars

Government webinars provide guidance on strategic export control licences and how to be compliant with UK export control laws.

New safety and security declaration requirements for importers

As of 31st January 2025, imported goods from the EU to Great Britain need a safety and security declaration submitted alongside it.

The government advises that:

• Carriers and hauliers are legally responsible for submitting the safety and security declarations, not a business that imports goods.
• If you import goods from the EU, your carrier may ask you, as the importer, or another party in the supply chain, to lodge the safety and security declaration on their behalf.
• If you have not already done so, you should now discuss with your haulier or carrier to understand their plans for submitting safety and security declarations for EU imports.
• Businesses that export from Great Britain or import from countries outside the EU are already required to submit safety and security declarations.

Company size thresholds to change from April 2025

New regulations increasing company size thresholds will be effective from April 2025, with new legislation set to increase the monetary size thresholds for micro, small and medium-sized organisations.

According to the Institute of Chartered Accountants in England and Wales (ICAEW): "The government estimates that the new regulations will result in around 113,000 companies and LLPs moving from the small to micro-entity category, 14,000 moving from medium-sized to small, and 6,000 moving from large to medium-sized. Companies able to move down a size category will be entitled to the accompanying reduction in reporting and audit requirements."

Changes to UK company law - action will be required

All companies will need to include additional information in future confirmation statements that they make to Companies House.

Companies must file a confirmation statement at least once a year, even if there have not been any changes since the last statement, and even if the company is dormant or isn't trading. As a result of the Economic Crime and Corporate Transparency Act, there are changes to what is required within the confirmation statement, including providing a registered email address and a statement to confirm that the intended future activities of the company will be lawful.

New Fair Payment Code launched

A new Fair Payment Code has been launched by the Office of the Small Business Commissioner on behalf of the Department for Business and Trade. It is aimed at rewarding best practice and driving improvements in payment performance.

Significant changes to fire extinguisher regulations

As of January 2025, the UK has introduced significant changes to fire extinguisher regulations, primarily focusing on environmental safety and the phasing out of harmful substances.

Effective from 4th July 2025, the use of Aqueous Film-Forming Foam (AFFF) fire extinguishers will be prohibited in the UK. This decision stems from the environmental and health risks associated with substances present in them, often referred to as "forever chemicals", which are persistent in the environment and have been linked to adverse health effects.

Businesses should audit their existing equipment, replace all AFFF fire extinguishers with environmentally friendly alternatives that do not contain "forever chemicals", ensure that obsolete AFFF extinguishers are disposed of through accredited disposal companies to prevent environmental contamination, and update training programmes to familiarise staff with the operation of new types of fire extinguishers.

Read the Health and Safety Executive's (HSE) introduction to fire safety in the workplace. There is separate guidance on fire safety for those in the construction industry.