New UK Laws 2026: 7 Major Changes You Must Prepare For Now
2026 marks the most significant overhaul of British legislation in a generation. Unlike typical years where we might see minor tweaks to tax codes or slight adjustments to fuel duty, the new UK laws 2026 brings into force are structural shifts that will fundamentally change how we work, travel, and pay tax.
From the first major update to employment rights in decades to a complete digital transformation of the tax system for landlords, staying passive is no longer an option. If you run a business, rent out property, or even plan to travel abroad, these changes demand immediate attention.
This guide cuts through the noise. We have analysed the Statutory Instruments and government white papers to bring you the seven critical legislative changes arriving in 2026. You will find confirmed dates, compliance checklists, and expert verdicts on exactly what you need to do to prepare.
1. Employment Law: The Biggest Shift in a Decade (April 2026)
The Employment Rights Bill, which received significant attention in late 2025, finally hits the ground running in April 2026. For HR managers and business owners, this is the priority. The government has moved to end what it terms “exploitative” practices, but the administrative burden falls squarely on employers.
Statutory Sick Pay (SSP) & Paternity “Day One” Rights
Historically, employees had to wait three days before they could claim Statutory Sick Pay (SSP). This “waiting period” is abolished from April 2026. Workers will now be eligible for SSP from their very first day of illness.
Furthermore, the Lower Earnings Limit (LEL), which previously excluded low earners (those earning under £123 per week) from claiming sick pay, is being removed.
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The Impact: You will likely see an increase in short-term sickness absence costs. HR teams must update payroll software to ensure SSP is triggered immediately, even for part-time staff who were previously ineligible.
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Paternity Leave: Restrictions on when a father or partner can take leave are also scrapped. Eligibility becomes a “day one” right, meaning new hires do not need to work for 26 weeks before qualifying.
The Fair Work Agency Launch
April 2026 sees the operational launch of the Fair Work Agency. This new “super-watchdog” amalgamates the powers of the Gangmasters and Labour Abuse Authority, the Employment Agency Standards Inspectorate, and HMRC’s Minimum Wage enforcement team.
Expert Verdict:
“Do not underestimate this agency. Unlike the old tribunal system which relied on employees bringing claims, the Fair Work Agency has the power to inspect businesses proactively. They can enforce holiday pay and tribunal awards directly. If your holiday pay calculations are ‘roughly’ right, fix them now. ‘Roughly’ will no longer be good enough.”
2. National Minimum Wage & Living Wage Increase (April 2026)
While wage increases happen annually, the new UK laws 2026 introduces a philosophical shift: the removal of age-based pay discrimination.
The New Rate for Over-21s
Based on the Low Pay Commission’s (LPC) trajectory to maintain the wage at two-thirds of median earnings, the National Living Wage is projected to rise to approximately £12.71 per hour in April 2026.
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Current Rate (2025): £12.21
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New Rate (2026): ~£12.71 (Subject to final LPC confirmation in Autumn 2025).
Phasing Out Age Bands: The 18-20 Transition
The government has committed to abolishing the 18-20 age band entirely. In 2026, we will see a substantial narrowing of the gap between the 18-20 rate and the full adult rate, with the aim of a single adult rate by 2027. If you employ younger staff, budget for a sharper percentage increase in their wages than your senior staff.
Cost of Compliance: What It Means for SMEs
Many small businesses fail to calculate the “on-costs” (National Insurance and pension contributions) associated with these hikes.
| Expense | Current Cost (per employee) | Est. April 2026 Cost | Impact |
| Hourly Wage | £12.21 | £12.71 | +4.1% |
| Employer NI (13.8%) | Varies | Increases proportionally | Higher bill |
| Pension (3%) | Varies | Increases proportionally | Higher bill |
| Total Increase | — | — | ~£1,000+ per year/staff |
Note: Figures are projections based on LPC data.
3. Making Tax Digital (MTD) for Landlords & Sole Traders (April 6, 2026)
This is the deadline that has been delayed multiple times, but HMRC has confirmed there will be no further pushbacks. Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) becomes mandatory for a specific group of high earners.
Who Must Comply? The £50,000 Threshold Explained
From 6 April 2026, if you are a self-employed individual or a landlord with a total qualifying income of over £50,000, you must follow MTD rules.
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Qualifying Income: This includes turnover from self-employment plus gross income from property. It is not based on profit.
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The Requirement: You can no longer just file a Self Assessment tax return once a year. You must keep digital records and send quarterly updates to HMRC using compatible software.
Quarterly Reporting vs. Annual Returns
This is a massive cultural shift. Instead of a frantic January scramble, you will have four deadlines a year, plus a final declaration.
The Landlord’s Transition Diary:
Meet Sarah, a landlord with three properties in Manchester.
The Old Way: “I used to keep receipts in a shoebox and give them to my accountant in December. He’d tell me what I owed in January.”
The 2026 Way: “I now use Xero. I have to photograph receipts immediately. In July 2026, I will submit my first quarterly update. I effectively have to ‘do my taxes’ four times a year. It’s more work, but at least I know my tax bill in real-time, rather than getting a nasty shock at the end of the year.”
Action Step: Check your gross income now. If you are near the £50k mark, speak to your accountant immediately. Do not wait until April.
4. UK Travel Rules: The ETA Enforcement (February 25, 2026)
The UK’s border remains a key focus for new UK laws 2026. The Electronic Travel Authorisation (ETA) scheme completes its rollout, affecting millions of visitors and even some residents with specific dual-nationality statuses.
No Permission, No Travel: The £10 Fee
By April 2025, the ETA scheme will be mandatory for all non-visa nationals (including US, Canadian, and Australian citizens). However, strict enforcement and checks will be fully operational by early 2026.
Any visitor from Europe (EU/EEA) travelling to the UK will also need an ETA by late 2025/early 2026. The cost is £10, and it is valid for two years. Crucially, airlines will be fined if they allow passengers to board without one, so expect strict checks at your departure gate.
The Dual-Citizen Trap
This is a critical warning for British citizens who hold dual nationality (e.g., British-Irish or British-American).
The Rule: You do not need an ETA if you are British or Irish.
The Problem: If you check in for your flight using your non-British passport (e.g., your US passport), the airline’s system will flag you as needing an ETA.
Common Mistake:
“I’m British, but I accidentally booked my flight using my French passport details. The airline denied me boarding because I didn’t have an ETA.”
The Fix: Always book travel to the UK using your British or Irish passport details to bypass the digital check.
5. Vaping Products Duty & The “Duty Stamp” Scheme (October 1, 2026)
The government is cracking down on the vaping market with a new excise duty aimed at discouraging non-smokers and young people from taking up the habit.
New Excise Tax on E-liquids
From 1 October 2026, a specific duty will be applied to all vaping liquids. The rate depends on nicotine strength:
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£1.00 per 10ml for nicotine-free liquids.
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£2.00 per 10ml for liquids with 0.1-10.9mg nicotine.
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£3.00 per 10ml for liquids with 11mg+ nicotine.
This will significantly increase the price of disposables and high-strength vape juice. A standard “Lost Mary” or “Elf Bar” could see its price nearly double when VAT is added on top of the duty.
Registration Deadlines for Businesses (April 1, 2026)
If you manufacture or import vaping products, you cannot wait until October. The registration portal for the Vaping Products Duty Stamps (VDS) scheme opens on 1 April 2026.
You must register and apply for physical stamps to affix to your products. HMRC requires a lead time of roughly 45 working days to process these applications. If your stock does not have stamps by October, it will be illegal to sell.
6. Environmental Bans: Plastic Wet Wipes (December 18, 2026)
The fight against single-use plastics moves to the bathroom cabinet. Wet wipes containing plastic are a primary cause of “fatbergs” in UK sewers and microplastic pollution in waterways.
Wales Leads the Way
While the UK government often legislates for England, environmental policy is a devolved matter. Wales has confirmed it will ban the supply and sale of wet wipes containing plastic on 18 December 2026.
Retailers in Wales must sell through old stock by this date. After the deadline, selling a plastic-containing wipe becomes a criminal offence.
England’s Timeline (May 2027 Preview)
If you are in England, you have a slight reprieve. The ban in England is scheduled to follow later, likely in May 2027. However, most major retailers (Boots, Tesco, Sainsbury’s) operate UK-wide supply chains. Expect them to remove these products from shelves across the entire UK in late 2026 to align with the Welsh legislation.
7. Zero Emission Vehicle (ZEV) Mandate Targets (2026)
The ZEV mandate is the single biggest policy driving the transition to electric vehicles. It sets legally binding targets for the percentage of new cars and vans that must be zero-emission.
The 33% Sales Target for Manufacturers
In 2024, the target was 22%. By 2026, this target jumps to 33%.
This means one in three cars sold by manufacturers like Ford, Volkswagen, and BMW must be electric. If they miss this target, they face fines of £15,000 per non-compliant vehicle.
What This Means for New Car Prices
This law puts immense pressure on manufacturers to sell EVs.
Expert Insight:
“To hit the 33% target, manufacturers will likely heavily discount electric models in Q3 and Q4 of 2026. We expect to see aggressive 0% finance deals and ‘deposit contributions’ on EVs. Conversely, the price of petrol and diesel cars may rise artificially to suppress demand and balance the sales ratio.”
If you are planning to buy a new car, waiting until late 2026 could secure you a bargain on an electric vehicle.
Summary Checklist: Your 2026 Compliance Timeline
Don’t let these dates catch you off guard. Mark them in your calendar now.
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February 25, 2026: Full enforcement of ETA travel rules for visitors.
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April 1, 2026: Vaping Duty registration opens for businesses.
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April 6, 2026: Making Tax Digital begins for landlords/sole traders earning >£50k.
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April 6, 2026: Employment Rights Bill active (Day-one sick pay, new Min Wage).
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October 1, 2026: Vape Tax (Excise Duty) added to prices.
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December 18, 2026: Plastic wet wipes banned in Wales.
FAQs
What are the new laws in the UK for 2026?
The major laws include the Make Tax Digital mandate for high earners, the Employment Rights Bill (improving sick pay and paternity rights), the ETA travel scheme for visitors, and new environmental bans on plastic wet wipes.
When does Making Tax Digital start for landlords?
It begins on 6 April 2026 for landlords and self-employed individuals with a qualifying income of over £50,000. Those earning between £30,000 and £50,000 will join the scheme in April 2027.
Do I need an ETA to visit the UK in 2026?
Yes, unless you have a British or Irish passport, or a valid visa. All other visitors, including those from the EU, USA, and Canada, will need an Electronic Travel Authorisation costing £10.
What is the minimum wage for April 2026?
While the official rate is confirmed in Autumn 2025, current Low Pay Commission projections estimate the National Living Wage will rise to approximately £12.71 per hour for those aged 21 and over.
Is the 6-month probation period law in 2026?
The Employment Rights Bill proposes a statutory probation period (likely 9 months) where dismissal is simpler, but “day one” rights for protection against unfair dismissal will still apply in a limited form. This is expected to be finalised by April 2026.
Are plastic wet wipes banned in the UK yet?
They will be banned in Wales from 18 December 2026. England and Scotland are expected to follow with bans in mid-2027, though many shops will stop selling them earlier.
When does the new vape tax start?
The new Vaping Products Duty comes into effect on 1 October 2026. It applies a tax of £1.00 to £3.00 per 10ml of liquid, depending on nicotine strength.
How does the Fair Work Agency affect small businesses?
Starting in 2026, the Fair Work Agency can inspect your business without a worker complaint. They can check payroll records to ensure you are paying the correct holiday pay and minimum wage. Non-compliance can lead to fines and public naming.
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