Five legal developments for London’s businesses this Autumn

Autumn has officially arrived and the government will be keen to press on with its legislative agenda.

Many of the key measures in its flagship bills won’t come into force until 2026 and beyond, but some will take immediate effect and others will call for some preparation, so London’s businesses will need to be on their toes.

Employment Rights Bill

The government’s flagship legislation designed to fulfil its commitment to Make Work Pay is nearing the end of its journey through parliament. The House of Lords will send it back to the Commons with some key amendments, including substituting the day-one right to claim unfair dismissal with a right after six months’ employment.

Whatever the final version of the legislation looks like, its measures repealing much of the Trades Union Act (2016) and protecting workers from dismissal for taking industrial action would become law immediately.

London’s businesses will also need to start preparing for the remaining measures, which would start coming into force from April 2026, though the removal of the current two-year qualifying period for unfair dismissal is not currently slated for introduction until 2027.

Renters’ Rights Bill

Inspecting the property is the most reliable way to check the state and condition of it. Most modern tenancy agreements will contain provisions about inspecting the property and will usually state what a landlord must do before they can carry out the inspection.

This is likely to involve providing the tenant with advanced written notice and ensuring that the notice is given in accordance with the service provisions contained within the tenancy agreement. It is also important to consider the risks of unlawful entry if we have not had consent off the tenant to enter the property as the tenant has the right to exclusive possession of the property.

Alternatively, an agent may be able to rely on the "right to inspect" contained in the Homes (Fitness for Habitation) Act 2018. While regularly inspecting the property is generally considered to be good practice, it does need to be balanced with the tenant’s right to quiet enjoyment of the property and the risk of harassing the tenant, which is in breach of Section 1 of the Protection from Eviction Act 1977.

Section 1 of the Protection from Eviction Act 1977, imposes an obligation on the landlord of a residential occupier or an agent to not interfere with the peace or comfort of the residential occupier or members of their household – unless the tenant proves they have reasonable grounds for doing so.

When a property inspection is undertaken, inspection reports and photos should be drafted and retained.

In my view, the frequency of inspections and what is reasonable in the circumstances is likely to be subjective. However, it is common for agents to inspect quarterly or six-monthly.

Making Tax Digital for Income Tax

Another development for London’s landlords to prepare for, as well as anyone who is self-employed, is the requirement to keep digital records of income and expenses and file details with HMRC online.

‘Making Tax Digital’ was first launched in 2015 to modernise the tax system but has only applied to businesses registered to pay VAT, until now. From April 2026, sole traders and landlords with an annual income over £50,000 will need to keep digital records and submit updates every quarter, using software that is approved by HMRC.

This is a major development that London’s landlords and self-employed workers will need to prepare for. There are very few exemptions and the £50,000 threshold will be lowered to £30,000 in 2027 and then £20,000 in 2028.

Companies House Identity Verification

In an attempt to make it harder to use companies for illicit purposes, Companies House has introduced a new identity verification requirement. Until now, using the online process has been voluntary, but it will become compulsory for directors and ‘people with significant control’ (PSCs) from 18 November, this year.

The verification is relatively straightforward if complete online, but requires some form of government ID, such as a UK passport or driving licence.

Tobacco and Vapes Bill

A ban on the sale of single-use vapes came into force in June, but the Tobacco and Vapes Bill has much wider implications for any business that sells tobacco products or vapes. It was first introduced by the previous government but has broad cross-party support and looks set to become law before the year is out.
It aims to create a ‘smoke-free generation’ by making it illegal to sell tobacco products to anyone born on or after 1 January 2009, while also introducing stricter regulation of the promotion and sale of vapes.

More to come

These are just some the headlines for some of the many legal developments that are continually emerging for London’s businesses. The government’s next budget, due to be delivered in October, may reveal more.
Fortunately, ARAG’s commercial and landlord policyholders can call their legal advice helpline for specific guidance on these or any other legal question that may be troubling them.