A temporary VAT reduction for family attractions, what AI can and can’t do for a small business, and the biggest change to the private rental sector in over 40 years — now in force.

• Summer VAT reduction
• AI in business
• Renters’ Rights Act
• Employment Allowance

Summer VAT Reduction for Family Attractions and Children’s Meals

A temporary VAT reduction has been introduced from 25 June to 1 September 2026, reducing VAT from 20% to 5% on certain family-focused activities and children’s meals.

What does this mean?

The government hopes the reduction will help families save money over the summer holidays while encouraging spending within the leisure and hospitality sectors.

However, businesses affected by the change may need to:

• Update VAT settings within their accounting and till systems
• Review qualifying products and services
• Ensure staff understand which sales qualify for the reduced rate
• Reverse the changes again when the temporary relief ends on 2 September

Artificial Intelligence in Small Business — Opportunity or Risk?

Artificial Intelligence (AI) has quickly become one of the most talked-about technologies in business, and many small businesses are beginning to explore how it can help improve efficiency and reduce time spent on administrative tasks.

At BHUK Group, we have been exploring tools such as ChatGPT and Claude to better understand how AI can support our business and our clients. While AI is not a replacement for professional advice, it can be a useful tool when used correctly.

How AI can help

AI can assist businesses with a wide range of everyday tasks, including:

• Drafting emails and correspondence
• Creating marketing content and social media posts
• Summarising documents and reports
• Generating ideas and business plans
• Improving internal processes and workflows
• Assisting with research and data analysis

For small business owners who often wear multiple hats, these tools can save valuable time and help improve productivity.

The benefits

Many businesses are finding that AI can reduce administrative workload, improve efficiency, help generate ideas more quickly, support staff with routine tasks, and free up time to focus on customers and growth.

Used correctly, AI can become a valuable assistant that helps businesses work smarter rather than harder.

The risks

Like any technology, AI should be used with caution. AI-generated information is not always accurate and can occasionally provide incorrect or outdated information. Businesses should always verify important facts, particularly when dealing with financial, legal, tax or compliance matters.

There are also data protection considerations. Sensitive client information should not be entered into AI systems unless appropriate safeguards are in place and the platform’s privacy settings have been reviewed.

Finding the right balance

Our experience so far is that AI works best as a support tool rather than a decision-maker. It can help speed up routine tasks and provide useful starting points, but human judgement, professional expertise and personal relationships remain essential.

As technology continues to develop, we expect AI to play an increasingly important role in business operations. Those who understand how to use it effectively are likely to gain significant advantages in productivity and efficiency.

Renters’ Rights Act — What Landlords Need to Know

The Renters’ Rights Act 2025 is no longer on the horizon — it is here. The core reforms came into effect on 1 May 2026, representing the biggest change to the private rental sector in over 40 years. If you are a landlord, these changes affect you immediately.

Section 21 has been abolished

“No fault” evictions are gone. You can no longer serve a Section 21 notice to end a tenancy without reason. To regain possession of your property, you must now rely on specific legal grounds under Section 8. This applies to all tenancies — existing and new — from 1 May 2026.

All tenancies are now periodic

Fixed-term tenancies no longer exist in their previous form. All tenancies have automatically converted to rolling periodic agreements. Tenants can give two months’ notice to leave at any time, which means even a tenant mid-way through what was a fixed term could have left as early as 30 June 2026.

Rent increases have new rules

Rent review clauses in existing tenancy agreements can no longer be used. All rent increases must now go through the Section 13 process, which means:

• No more than one increase per year
• A minimum of two months’ written notice to the tenant
• You must advertise a clear rent figure and cannot accept or encourage offers above it

More changes are coming

A mandatory landlord database and a new Private Rented Sector Ombudsman service are both expected later in 2026. Landlords will be required to register and tenants will have access to a formal complaints process.

What you should do now

• Review all tenancy agreements and ensure you understand your new grounds for possession
• Update your rent increase process immediately
• Ensure your properties meet the required standards — Awaab’s Law on damp and mould now extends to the private sector
• Speak to us if you are considering selling, restructuring ownership or have questions about how these changes affect your position

Combined with Making Tax Digital obligations now also in force for qualifying landlords, 2026 is a year of significant compliance change. Please do not navigate it alone — we are here to help.

Are You Claiming Your Employment Allowance?

With Employer National Insurance now sitting at 15% — up from 13.8% last year — the cost of employing staff has increased significantly for many businesses. However, a valuable relief is available that not every employer is claiming.

Crucially, the previous rule that blocked businesses with a NIC liability over £100,000 from claiming has been removed, meaning more businesses than ever now qualify. However, each circumstance is different and there are rules.

For smaller employers, this could completely eliminate your Employer NIC bill for the year. For growing businesses, it will at least reduce the impact.

Check you are:

• Registered to claim the Employment Allowance through your payroll software
• Applying it correctly from the start of the tax year
• Not leaving money on the table by assuming you don’t qualify

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