Are you a fan of e-invoicing? Pension ages rise and updates to employment rights take effect
If you run an SME and you’re not a fan of e-invoicing, you’re not alone. Recent research carried out by HMRC found that only 29% of SMEs are utilising e-invoicing, but the government wants to increase this number in order to support more accurate tax returns. Plus, the State Pension increases, but so does the pensionable age, and new sickness pay and paternity leave rules come into effect.
Are You Ready for E-Invoicing?
HM Revenue & Customs (HMRC) recently released a research paper on how small and medium-sized businesses (SMEs) view electronic invoicing, also called e-invoicing.
In the Autumn Budget 2025, plans were announced to make e-invoicing mandatory for VAT invoices from 2029. The research paper was designed to help deliver an e-invoicing policy that will suit the competitive needs of SME businesses.
An e-invoice is an invoice that is sent and received in a structured digital format and is suitable for automatic electronic processing. E-invoicing systems can integrate with accounting systems, which can make it easier to manage a business’s bookkeeping.
The government believes that e-invoicing will assist businesses in submitting more accurate tax returns.
The research indicates that 59% of businesses are familiar with what e-invoicing is. However, only 29% of businesses appear to be currently using e-invoicing, and only 10% of SMEs report both sending and receiving e-invoices.
The most common method used by SMEs both for sending and receiving invoices was reported to be PDF or email. Many businesses are also still using paper and physical mail for invoicing.
With a change to e-invoicing not becoming mandatory until 2029, there is still plenty of time to prepare. If you would like help exploring whether your accounting system can handle e-invoicing, please give us a call. We would be happy to help you!
State Pension Amounts Increase… But So Does the State Pension Age
Last week marked a 4.8% rise in both the basic and new State Pensions. This could mean an additional £575 annually for many pensioners.
The Pension Credit has also increased by 4.8% and is worth an average of £4,300 a year.
The full rate of the new State Pension increases from £230.25 to £241.30 a week. The full basic State Pension increases from £176.45 to £184.90 a week.
The Standard Minimum Guarantee in Pension Credit is now £238.00 per week for a single pensioner, and £363.25 for a couple.
The increases, which are part of the government’s Triple Lock Guarantee, apply automatically. If you receive the State Pension, you should notice the increase in your next payment.
State Pension age starts rising to 67
The current State Pension age is 66 but beginning April 2026, it will start to rise.
The rise will happen gradually. First, those born between 6 April and 5 May 1960 will have to wait an extra month before they start to receive any State Pension. Those born between 6 May and 5 June 1960 will have to wait an extra two months.
By next April the State Pension age will have risen to 67.
The change aims to reflect longer life expectancy and may signal future pension age rises, with many now expecting to have to work into their 70s.
See: https://www.gov.uk/government/news/over-12-million-pensioners-to-receive-575-state-pension-boost
New Rules to Eliminate Costly Subscription Traps
New rules, which are expected to come into force from spring 2027, will make it easier for people to avoid costly subscription traps.
The rules will mean:
- Clear, simple information to be provided before any subscription is signed up for.
- Reminders before free or discounted trials end, or before annual (or longer) contracts automatically renew.
- Cancellations will be made straightforward, including online exits for online sign-ups.
- A new 14-day cooling-off period, after a free or discounted trial ends, or when an annual (or longer) contract renews.
The government has confirmed that initial cooling-off rights and refunds will be broadly consistent with existing Consumer Contract Regulations. This includes retaining a waiver for digital content.
For the cooling-off refund period for renewals, consumers will be able to receive a full or proportionate refund if they decide to cancel. Proportionate refunds will allow businesses to be compensated for the proportion of contract services or digital content that has been supplied.
Certain memberships of charitable, cultural and heritage organisations will be excluded from the new rules.
Businesses that receive revenue from subscriptions will want to keep an eye on these regulations as they develop over the next year.
Farewell to the Valuation Office Agency
With effect from April 2026, the Valuation Office Agency (VOA) has been brought into HM Revenue & Customs (HMRC) as a cost-saving measure. The change means that the VOA has ceased to exist as an executive agency.
The Valuation Office will now be part of HMRC and will have responsibility for valuing business rates and council tax.
Businesses have been advised that the change will not affect the services the VOA previously delivered. The Valuation Office will still handle business rates valuation checks and challenges, council tax band challenges, and the work carried out by rent officers.
The Valuation Office customer helpline and online contact form are still available. You may notice that caseworker email addresses change to ‘@hmrc.gov.uk’.
See: https://www.gov.uk/government/news/valuation-office-joins-hm-revenue-and-customs
New Access to Sick Pay and Parental Leave for Workers in Great Britain
New provisions in the Employment Rights Act took effect from 6 April 2026. These include:
- Employees will now be entitled to receive Statutory Sick Pay from their first day of sickness absence, instead of waiting until the fourth day.
- In addition, new fathers and partners have also gained the right to paternity leave from their first day in a new job, instead of needing to wait six months.
- Day one rights to unpaid parental leave have also begun. Previously, parents had to wait a year before qualifying.
- Parents are also granted a new right to take Bereaved Partner’s Paternity Leave following the death of a child’s mother or primary adopter.
- The launch of the Fair Work Agency, which combines three separate agencies to enforce employment rights more effectively and efficiently.
Employers will need to make sure that their sickness and employment policies are updated to reflect the new laws. Employers who operate in Great Britain as well as Northern Ireland will need to make sure their policies and payroll software correctly account for the employee’s location.
If you need any assistance with managing payroll under the new requirements, please let us know. We would be happy to help you.
See: https://www.gov.uk/government/news/millions-of-workers-get-new-access-to-sick-pay-and-parental-leave
Pioneering Employment Rights for Employees in Northern Ireland
New employment rights have been introduced in April 2026 that make Northern Ireland the first jurisdiction in the northern hemisphere to provide support for miscarriage and early pregnancy loss.
New entitlement
The new entitlement for miscarriage means that an employee in Northern Ireland who experiences a miscarriage, or anyone with a defined connection to a woman who has experienced a miscarriage, will qualify for Parental Bereavement Leave and Pay.
No medical evidence will be required to be entitled to the leave. The employee simply needs to submit a written self-declaration, including their name and the date the miscarriage occurred or was discovered to have occurred.
This means that Parental Bereavement Leave and Pay will now apply to parents who experience:
- The loss of a child under age 18, including stillbirth from 24 weeks of pregnancy.
- A miscarriage, whether due to spontaneous loss or a specified medical intervention.
Statutory Parental Bereavement Pay now a day one right
From April 2026, Statutory Parental Bereavement Pay will also become a day-one right. Previous service and minimum earnings requirements no longer apply.
Where entitlement was gained before 6 April 2026, then the previous rules apply. The miscarriage entitlement is not retrospective.
Who do the changes apply to?
The changes only apply to employees in Northern Ireland.
For employers who operate in and employ workers in both Northern Ireland and other areas of Great Britain, it will be important to ensure that the entitlements are correctly applied in payroll software and employment policies are correctly updated.
The Labour Relations Agency has published updated guidance as well as a webinar explaining the changes and dealing with frequently asked questions.
See: https://www.nibusinessinfo.co.uk/content/changes-parental-bereavement-leave-and-pay-april-2026