With significant changes on the horizon for 2026, it is essential for businesses to stay informed.  From new legislation and the post-Budget impact on cash flow to preparing strategically for the year ahead, there is a lot to consider.

Our legal experts have compiled a list of 10 key resolutions for business owners to keep in mind to help protect both their businesses and themselves.

1 Review and update employment contracts and policies. Train managers to prepare for those Employment Rights Act provisions that will be implemented in 2026, including:

• Day one rights to apply for flexible working and entitlement to SSP, paternity leave and parental leave.
• Duty to take all reasonable steps to prevent harassment of employees and to prevent harassment by third parties.
• Increased protective award in cases of a failure to consult collectively in relation to large-scale redundancies or TUPE.
• Reforms to “fire and rehire” practices.
Simon Bellm, Partner, Employment

2 Review succession planning ahead of April 5th 2026, if you have a family or a privately owned company.

Business Property Relief exemption from Inheritance Tax on all trading business assets reduces to £1m (includes shares).
Jonathan Grant, Partner & Head, Corporate Law

If you wish to benefit from business assets relief at 14% rather than 18%, consider selling or gifting now, rather than after April 6th 2026, when the rates go up.
Ingrid McCleave, Partner, Business & Personal Tax

3 Review your business leases to protect your business premises and continuity.

Renewing a business lease involves more than just agreeing to new terms. It is a time-sensitive process governed by strict rules, so you must take expert advice early to maintain a strong position when negotiating new terms so that you don’t miss key notice periods or deadlines, which can weaken your negotiating position, or even cost you your right to renew.
James Picknell, Partner, Real Estate Dispute Resolution

4 Review and update all auto-renewal clauses in your consumer contracts to ensure compliance with new consumer protection rules.

New rules around auto-renewal in consumer contracts, as introduced by the Digital Markets, Competition and Consumers Act 2024, will come into effect in 2026 (Spring 2026, at the earliest). Non-compliance could lead to unenforceable contracts, legal challenges and/or reputational damage, impacting cash flow and customer trust.
John Yates, Partner & Head, Commercial Law

5 Take early legal advice on how your family/relationship situation could affect your company.
Prevention is better than litigation. Family law may feel personal, but for business owners, it is commercial.  It is not just about divorce or separation; it is about safeguarding your business. The earlier you plan, the more control you retain.
Samantha Jago, Partner, Family Law

6 Have a Power of Attorney to deal with business assets.
For business owners, a separate Business LPA, in conjunction with LPAs to deal with personal affairs and health matters, is often the most effective way to ensure your commercial interests are protected if you can no longer act for yourself. Careful consideration needs to be given to the structure of your business, your interest in it, and whether you should impose restrictions on how your attorney can act.
Sara McGrigor, Partner, Private Client

7 Don’t be shy about dealing with debt
Businesses should recognise that company debt is not a taboo subject, but rather, one that deserves open discussion to shed light on an issue that is often unspoken, yet increasingly prevalent. Seek expert help early to avoid financial difficulty.
Derek Pickard, Head of Commercial Debt Recovery

8 Prevent insolvent trading by closely monitoring the company’s financial position and cashflow.
Given the government’s focus on growth, coupled with the current economic challenges, focus on a director’s duty to prevent insolvent trading by closely monitoring the company’s financial position and cashflow. Ensure early identification and management of financial issues through regular review and seeking professional advice early.  Proactively safeguard the company, its creditors, and stakeholders from insolvency risk, and you, as a director, from personal liability.
Frank Bouette, Partner, Restructuring and Insolvency

9 Mitigate AI litigation risks.
In 2026, implement robust governance for all your AI initiatives. Ensure transparency, document decision processes, and involve legal counsel early. Regularly audit AI outputs for compliance and fairness. Proactive oversight will help protect your organisation from costly disputes and regulatory scrutiny as AI becomes integral to operations. Ensure your organisation leads, not lags, in the AI-powered future.
David Bailey, Partner, Commercial Dispute Resolution

10 Ensure you are compliant with sponsor licensing rules if employing overseas workers.
To avoid the risk of suspension or revocation of your sponsor licence, ensure you comply with all the requirements to prevent illegal workers. Criminal prosecution can arise for employers found to have employed an individual that they knew, or had reasonable cause to believe, were illegal.
Adam Williams, Partner & Head, Immigration