Business rates

As announced in the 2024 Budget, two new lower multipliers for eligible retail, hospitality and leisure (RHL) properties with rateable values (RV) below £500,000 will be introduced from 1 April 2026. Each of the new multipliers is 5p lower than the standard multiplier for a business property of equivalent rateable value.

The new multipliers will replace the 40% relief given to RHL businesses in 2025/26 and will be funded by a high-value multiplier on properties that have a rateable value above £500,000.

Legislation and local authority guidance has already been published confirming the eligibility criteria for RHL properties.

Transitional reliefs may be available for eligible properties that cap bill increases due to increasing rateable values at the 2026 business rates revaluation or where the increase is due to a loss of Small Business Rates Relief, Rural Rates Relief, or RHL relief. In addition, if your business is currently receiving the 2023 Supporting Small Business Relief Scheme you will be eligible for the 2026 Supporting Small Business Relief Scheme until 31 March 2027.

Electronic invoicing

The government plans to make electronic invoicing mandatory for all VAT invoices starting in 2029. A detailed implementation roadmap is expected to be published next year at Budget 2026.

The possibility of introducing real time reporting (RTR) is also being considered. This is where invoice information is automatically shared with HMRC, perhaps as soon as it is sent to a customer. However, the government has confirmed that this will not start in 2029. RTR would only be introduced once electronic invoicing is widely in use and well established.

Local visitor levy in England

The government has opened a consultation on providing Mayors, and potentially other local leaders, in England with the power to introduce a local visitor levy. The levy would be intended for supporting local leaders to drive economic growth in their areas and make those areas more desirable to visit, live, and do business in. In Scotland and Wales, all local authorities already have the legal power to apply a visitor levy.

In areas that choose to adopt it, the visitor levy would apply to short-term overnight stays in commercially let visitor accommodation.

There are no changes to worry about yet, but if you provide visitor accommodation it would be worth watching the outcome of the consultation.