A number of employment and taxation updates are coming into effect from April 2026. To help retailers prepare, we’ve set out the key changes below, along with links to further guidance.
Employment changes
From 1 April 2026, the National Living Wage for workers aged 21 and over will increase to £12.71 per hour. Rates for younger workers will rise too, with those aged 18–20 moving to £10.85 per hour. Acas has published guidance to help employers understand the updated requirements.
From 6 April 2026, several updates will be made to Statutory Sick Pay (SSP). The weekly rate will increase to £123.25, and SSP will now be paid from the first full day of sickness, removing the existing three day waiting period. The Lower Earnings Limit will also be removed, meaning more employees will qualify. SSP will be paid at 80% of an employee’s average weekly earnings, up to the flat rate. ACS guidance on what retailers need to do, including updates to sick leave policies, is available on the ACS Portal.
Also from 6 April 2026, there will be changes to family leave. Employees will be able to give notice for paternity leave and unpaid parental leave from their first day of employment. Fathers and partners will also be able to take Paternity Leave after Shared Parental Leave for the first time. Requirements for Paternity Pay remain the same. Government guidance is available online.
Business rates and tax
From 1 April 2026, the next business rates revaluation will take effect. Retailers can check their updated rateable value and review details of the new retail multiplier and available reliefs for 2026–27. If you have questions about how your bill will be calculated, the ACS team is on hand to help. Please contact Jordan.
Looking ahead to 6 April 2026, Making Tax Digital for Income Tax becomes mandatory for sole traders and self employed retailers with turnover above £50,000 in the 2024–25 tax year. Those affected will need to keep digital records, use compatible software and send quarterly updates to HMRC. Government guidance is available to support businesses preparing for the change here.
