Key Business Updates

Key Business Updates: New UK-EU Trade Deal, Rising Inflation, BNPL Rules & More

Welcome to our round-up of the latest business news for our clients.

Please get in touch with us if you would like to discuss how any of these updates could impact your business. We’re here to support you.

What the New UK-EU Deal Could Mean for Your Business

The UK Government has reached a new trade agreement with the European Union aimed at facilitating smoother cross-border business. This follows recent accords with the United States and India and is being positioned as part of a broader strategy to support employment and encourage business growth.

Despite Brexit, the EU remains the UK’s largest trading partner, but many firms have experienced increased costs and delays. This new deal aims to alleviate some of those challenges.

What’s changing?

A few of the key points include:

  • Simplified trade in food and drink: Certain checks on food, plant and animal products will be removed. This should ease and expedite the movement of these goods between the UK and the EU, including Northern Ireland. The changes may reduce operational costs and help contain prices for consumers.
  • Support for British producers: UK food producers will be allowed to export specific items—such as burgers and sausages—back into the EU, reversing some of the previous restrictions.
  • Boost for the steel industry: UK steel exporters will benefit from a special arrangement that avoids new EU charges, potentially saving the industry approximately £25 million annually.
  • Energy and emissions: The UK and EU will integrate their carbon trading systems. This could help UK businesses avoid the incoming EU carbon tax set to be introduced next year.
  • Support for coastal businesses: A 12-year agreement on fishing access in UK waters has been reached. Additionally, £360 million in funding has been allocated to support coastal communities, including investments in new equipment and training.
  • Smoother travel: UK holidaymakers will be able to use additional fast-track eGates at EU airports. Travelling with pets will also become easier, as additional certificates will no longer be required for each trip. While freedom of movement is not returning, plans include a youth mobility scheme for work and travel.

What this may mean for your business

If your business trades with the EU—whether in food exports, manufacturing, or cross-border logistics—this agreement could offer welcome relief. Reduced checks and paperwork may help decrease delays and lower trading costs.

While many of the changes have been announced, not all details are finalised. We recommend staying informed about updates as they emerge.

Looking ahead

This deal does not undo all the changes introduced by Brexit and does not restore the UK’s membership in the EU’s Single Market or Customs Union. However, it could provide a level of stability for businesses navigating new regulations.

Now is an ideal time to review your operations. Are there opportunities to improve your supply chain? Could the changes open new EU markets for your business?

Whether or not this agreement directly affects you, it’s always a good time to focus on growth. Book a free consultation with our experts to discover ways to grow your business, improve profitability, and strengthen your market position.

See: PM secures new agreement with EU to benefit British people

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Inflation Rises to 3.5% as Household Bills and Business Costs Increase.

UK inflation rose to 3.5% in April, up from 2.6% in March, surpassing forecasts and marking the highest annual rate in over a year. This comes at a time when both households and businesses are grappling with rising costs.

The increase has primarily been attributed to higher utility bills. On April 1, many water, gas and electricity rates increased. Water and sewerage charges alone surged by over 26%—the steepest rise in nearly 40 years. Airfare and holiday prices also increased, although this is expected to be temporary due to the timing of Easter.

For businesses, the month also saw rising overheads, including increases to the National Minimum Wage and employer National Insurance contributions. These changes are believed to have contributed to pushing service inflation to 5.4%.

Core inflation, which excludes food and energy, was also higher than expected, suggesting inflationary pressures are more broad-based than initially thought.

The Bank of England’s inflation target remains at 2%. Previously, two interest rate cuts were anticipated this year, but given April’s figures, some analysts now believe the Bank may implement only one cut, adopting a more cautious stance.

Bank of England Chief Economist Huw Pill has stated that the downward momentum in inflation may be faltering.

What this means for your business

With rising costs across the board, it’s vital to understand how inflation will impact your margins and profitability.

If you’d like help in analysing your costs and developing strategies to maintain profitability, please get in touch. We’re here to help you navigate this economic environment with clarity.

See: BBC News article on inflation

Are you thinking of starting a business?

If you’re considering launching a business, there’s a lot to consider—particularly around finances, tax obligations, and legal compliance.

Key areas you’ll need to address include:

  • Choosing the proper structure (sole trader, partnership or limited company)
  • Registering with HMRC
  • Keeping accurate financial records
  • Understanding your tax responsibilities
  • Planning when to register for VAT
  • Setting up payroll if you’re hiring staff
  • Preparing for Corporation Tax or Self-assessment
  • Identifying allowable expenses
  • Exploring what reliefs and support schemes are available

Thinking of starting a business in 2025/26?

To support new businesses, we offer a free 30-minute consultation to help you move forward with clarity.

Get in touch today to request your free consultation with one of our experienced advisors.

New Buy-Now, Pay-Later Rules Announced

From next year, Buy-Now, Pay-Later (BNPL) firms will be subject to new regulations. Following a consultation last year, the Government has introduced legislation in Parliament to formally regulate Buy Now, Pay Later (BNPL), aiming to protect consumers and bring an end to what has been called the “wild west” of unregulated lending.

BNPL allows customers to pay in interest-free instalments—typically within 12 months and across a limited number of payments. Currently, such services are unregulated, meaning providers like Klarna, Clearpay, and PayPal Pay in 3 are not overseen by the Financial Conduct Authority (FCA).

What’s changing?

The new rules will require:

  • Affordability checks before credit is approved
  • Clearer information about terms and conditions upfront
  • Faster, fairer refunds for customers
  • The right to escalate complaints to the Financial Ombudsman

Alongside this, the Government is overhauling the Consumer Credit Act of 1974, transferring regulatory oversight of all credit types to the Financial Conduct Authority (FCA). This is expected to simplify compliance while improving consumer protections.

What does this mean for your business?

If you offer BNPL via a third-party provider, these changes will likely affect:

  • The checkout process – Expect some added steps as affordability checks are introduced, which may impact new users in particular.
  • Customer communication – Your site should align with your BNPL provider’s terms to ensure consistency and avoid confusion.
  • Refund policies – You may need to adjust internal processes to support quicker and fairer refunds.
  • Complaint handling – While the BNPL provider will lead, your customer service approach can help prevent escalation.

These changes are intended to build trust in BNPL as a secure and transparent payment option. If you use Buy Now, Pay Later (BNPL) to drive sales, now is an excellent time to review your provider and processes to ensure compliance with the new regulations.

See: New rules to end Buy-Now, Pay-Later Wild West

What Should You Do If You’re the Victim of a Data Breach

Recent cyberattacks affecting high-street retailers have raised questions for both individuals and businesses. If you’ve received a notification that your data was compromised, it’s vital to take appropriate steps to protect yourself.

The National Cyber Security Centre (NCSC) has issued updated guidance on responding to data breaches.

Key actions to take:

  • Confirm whether you’ve been affected – Use the official website or social media channels of the organisation involved. Avoid clicking on links or using contact details included in any unexpected messages.
  • Be vigilant – You may receive suspicious communications even weeks after the breach is disclosed. Always be cautious.
  • Report anything suspicious – Report scam messages to the relevant authorities (e.g., via Action Fraud or NCSC’s tools).
  • Protect your accounts – Consider changing passwords, enabling two-factor authentication, and monitoring bank or credit accounts for unusual activity.
  • Know your rights – If you suffer a financial loss or believe your data has been misused, you may be entitled to take further action or lodge a complaint.

Cybersecurity is increasingly critical in today’s digital environment. If you find an account has been accessed, then NCSC provide a step-by-step guide on recovering a hacked account. To review the data breach guidance in full, see the NCSC website.

Refunds Available for Incomplete Debt Relief Order Applications

The Insolvency Service has announced that around 4,000 individuals may still be eligible for refunds for payments made towards Debt Relief Order (DRO) applications that were never finalised.

Before April 2024, applicants were required to pay a £90 fee when applying for a Debt Relief Order (DRO). However, in many instances, individuals paid the fee but did not go on to complete the application. Since the Government abolished this fee in April 2024, the Insolvency Service has been holding approximately £500,000 in unclaimed funds from these incomplete applications.

To address this, the Insolvency Service has begun issuing refunds. Since March 2025, approximately £65,000 has been returned to individuals. Around 5,000 letters have already been sent out, with around 1,000 responses received. A second round of letters is being planned.

If you believe you paid the £90 DRO fee but did not submit a completed application, you do not need to wait for a letter. You can proactively contact the Insolvency Service to request a refund.

Required Information

To apply for a refund, you will need to provide the following:

  • The Debt Relief Order application number (if known)
  • Your full name
  • Your address
  • Your telephone number
  • Your Bank or building society name
  • The name on your bank account
  • Your bank account number
  • Your bank sort code
  • Your building society roll number (if applicable)

The Insolvency Service will verify your details against their records before issuing any refund.

If you prefer to receive your refund by cheque, please make this clear in your communication.

How to Contact the Insolvency Service

You can contact the Insolvency Service using the details below:

Email: dro.preorder@insolvency.gov.uk

Postal address:

The Insolvency Service DRO Team, C/O Met Office, Fitzroy Road, Exeter, EX1 3PB

For full details, visit the official announcement here:

If you’re unsure about whether you qualify or need assistance with your application, don’t hesitate to speak to a member of the team at Naseems Accountants. We’re here to help.

New Survey Aims to Gather Data on Dental Practice Costs

Dental practices across England are being encouraged to participate in a new national survey aimed at collecting data on the costs of operating an NHS dental practice. This information will be used to support the Government’s plans to reform the NHS dental contract and will contribute to the Review Body on Doctors’ and Dentists’ Remuneration (DDRB) process.

The survey remains open until June 16, 2025, and is designed to address ongoing challenges within NHS dentistry. According to the Department of Health and Social Care, the findings will help provide a more accurate picture of the financial pressures faced by dental practices across the nation.

This initiative comes alongside other measures intended to improve NHS dental care provision, such as:

  • Additional urgent dental appointments
  • A supervised toothbrushing programme for children in disadvantaged areas

The Government has stated that reforming the current dental contract is central to its long-term strategy for NHS dentistry.

The survey is anonymous, but practices may also opt to take part in a follow-up interview to provide further insights.

To take part or find out more, visit the Dentistry Cost Survey page on GOV.UK.

If you run a dental practice and would like professional support in managing your finances or understanding how this survey may affect your operations, book a free consultation with Naseems Accountants today. Our specialist team can guide you through budgeting, cash flow, tax compliance, and more.

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