Small businesses are navigating unpredictable times as prices remain high and energy bills are a constant challenge. Amidst this uncertainty, we\u2019ve researched some key trends and moments that could help you prepare for a successful year in 2026.<\/p>\n\n\n\n
Making Tax Digital (MTD) will be a landmark shift in how you file and pay your business income tax. And for many small businesses this process will begin in 2026. <\/p>\n\n\n\n
If your qualifying income is more than \u00a350,000 for the 2024-25 tax year then you\u2019ll start using MTD from April 2026. It will then be phased in for those earning \u00a330,000 in the 2025-26 tax year from April 2027. <\/p>\n\n\n\n
We worked with GoSimpleTax to understand how businesses can prepare for the transition<\/a> from the current Self Assessment process to quarterly reporting and MTD for income tax. <\/p>\n\n\n\n HMRC has a Making Tax Digital hub<\/a> with a range of resources, including webinars and an eligibility checker. <\/p>\n\n\n\n Will it be simpler? In the long-run we hope so, but the initial setup and adjustment to the new process could take time and a bit of extra money. <\/p>\n\n\n\n With new funding available for small businesses to hire apprentices, we could see a rise in under 25s training with SMEs. The government announced it will remove the \u2018co-investment\u2019 needed from businesses when hiring an apprentice in this age bracket, so it means apprenticeships are fully funded. <\/p>\n\n\n\n The existing apprenticeship levy<\/a> means you could be eligible to get \u00a31,000 for hiring an apprentice, training is funded, and you won\u2019t have to pay employer\u2019s National Insurance. Wages must be at least minimum wage, and these are paid by you as the employer. <\/p>\n\n\n\n Whether you run a hair salon, restaurant, or small shop on the high street, hiring an apprentice could help support your business growth or plug a skills gap in 2026. <\/p>\n\n\n\n Read more about hiring an apprentice<\/a> and the funding available. <\/p>\n\n\n\n It\u2019s not just big businesses now being targeted by fraudsters. Cyber attacks can come from anywhere \u2013 and it\u2019s a worrying trend we might see more of in 2026. The key will be how you prepare yourself for any risks. <\/p>\n\n\n\n Around 42 per cent of small businesses reported phishing attacks in the last 12 months, according to the Cyber Security Breaches Survey 2025<\/a>. The same study also found the average cost of a cyber attack<\/a> is \u00a37,960 for micro and small businesses, based on the most disruptive attack reported by each firm affected. <\/p>\n\n\n\n So, 2026 could be the year you consider a cyber security risk assessment, cyber insurance, and a full cyber security strategy. <\/p>\n\n\n\n As the uses of artificial intelligence go beyond the administrative, we might start to see more creative uses of the technology over the coming year. Whether that\u2019s using ChatGPT as a sounding board for a business challenge, or asking Gemini to draft you a business pitch, there\u2019s hundreds of ways AI can support your business. <\/p>\n\n\n\n AI tools are already helping businesses: <\/p>\n\n\n\n2. Incentives for hiring apprentices <\/h2>\n\n\n\n
3. Cyber security risks <\/h2>\n\n\n\n
4. AI as a creative partner?<\/h2>\n\n\n\n
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