Business news 2 January 2026

Markets have kicked off the new year with confidence, but beneath the headlines SMEs face continued pressure from taxes, costs and cash-flow risks. With interest rates easing only slowly and insolvencies remaining elevated, today’s news is a reminder that optimism in markets does not always translate into prompt payment on the ground.

James Salmon, Operations Director.

SME-Focused Stories

Self-employed face January “150% tax shock”

Many self-employed workers are facing January tax bills equivalent to 150% of last year’s liability, due to payments on account. While the system smooths out over time, new and seasonal workers may struggle with the upfront demand.
Why it matters: January tax pressure can delay payments from sole traders and micro-business customers.

Energy bills edge higher as price cap changes

Ofgem’s revised cap nudges household energy bills slightly higher, with another change due in April 2026 — though forecasts point to a fall later this year.
Why it matters: Even small cost increases can weaken consumer spending and slow payment behaviour.

Stealth taxes squeeze household incomes

Frozen personal allowances mean some workers could be £505 worse off by 2031, despite wage growth. Lower-income households have already seen discretionary income fall.
Why it matters: Pressure on household budgets feeds directly into weaker demand and slower customer payments.

HMRC tightens crypto tax rules

Crypto investors must now disclose account details to HMRC, with data sharing expected to raise £300m over five years. The FCA is also consulting on wider crypto regulation.
Why it matters: Tighter enforcement could strain cash flow for crypto-linked businesses and contractors.

Tax & Government

Uber shifts VAT burden to drivers

Uber has restructured contracts outside London to avoid VAT on fares, passing responsibility to drivers instead.
Why it matters: Shifting tax liabilities increases financial stress among drivers and small operators in the supply chain.

Pick-up trucks hit by tax reclassification

Double-cab pick-ups are now treated as cars for tax, pushing benefit-in-kind rates as high as 37%.
Why it matters: Higher tax costs squeeze margins for tradespeople and rural businesses.

HMRC delays ECOS tax reforms

Planned tax changes to employee car ownership schemes have been delayed until April 2030 after industry backlash.
Why it matters: Short-term certainty helps fleet and automotive suppliers, but long-term risk remains.

UK–EU trade deal review ahead

The 2026 review of the Trade and Cooperation Agreement may deliver incremental improvements, but no major reset is expected.
Why it matters: Modest friction reduction helps, but cross-border payment risk remains.

Economic & Property

Housing market outlook mixed

House prices fell 0.4% in December, but 2025 was described as “resilient”. Experts expect a 2026 rebound, led by first-time buyers, though affordability remains stretched in the south.
Why it matters: Property-related demand may recover unevenly, creating regional payment risk.

Bulgaria joins the euro zone

Bulgaria has become the euro zone’s 21st member, despite low domestic support.
Why it matters: Currency alignment may simplify trade, but political risk persists.

Industry & Markets

FTSE 100 breaks 10,000

The FTSE 100 crossed 10,000 for the first time, up more than 21% over the past year. Gains were led by mining, defence and banking stocks.
Why it matters: Market confidence is high, but large multinationals dominate the index — SME cash flow conditions may differ sharply.

AI drives global market rally

AI optimism fuelled a strong start to 2026, lifting global equities and tech stocks.
Why it matters: Valuations are high, increasing the risk of volatility feeding into delayed investment and spending.

UK takeovers slow

Large UK takeovers attracted lower premiums in 2025, while small-caps fared better.
Why it matters: Slower deal flow can restrict capital injections into supply chains.

Chip shortages threaten price rises

Electronics prices could rise 5–20% due to AI-driven chip demand.
Why it matters: Higher prices can suppress demand and extend payment cycles.

Market Snapshot

  • FTSE 100: Above 10,000
  • S&P 500: 6,845
  • Nasdaq Composite: 23,242
  • Pound vs dollar: $1.34
  • Pound vs euro: €1.15

Gold and silver remain near record highs, oil is stabilising after a weak 2025, and bond yields remain elevated — signalling that borrowing costs will stay a concern for SMEs.

Insolvencies – Petitions to Wind Up (Companies)

  • ABSOLUTT JOINERY LIMITED
  • ADS PROPERTY MANAGEMENT LTD
  • AK LEISURE GROUP LIMITED
  • ASCA PRIVATE LTD
  • ATHUS LTD
  • BETA SCAFFOLDING LTD
  • BJTJ SOUTHERN LIMITED
  • BLACK AND GOLD DISTILLERY LTD
  • BROWN & BAM LIMITED
  • BYRNE HOMES LIMITED
  • CHESHIRE GW LTD
  • CLOVER CONSTRUCTION (SURREY) LTD
  • CQV TAX REBATES LTD
  • CRESCENDO ENTERTAINMENT LIMITED
  • CTC EUROPE.COM LIMITED
  • CT 14994796 LIMITED
  • DA6 CATERING CO LTD
  • DASEIN SOLUTIONS & ASSOCIATES
  • DESIGNERWAVE LIMITED
  • DEVELOPMENT PROPERTIES LIMITED
  • DIVINE CARE AND SUPPORT SERVICES LIMITED
  • DOVER HAMILTON LIMITED
  • EA-OPTIMISED LIMITED
  • EDUTECH SOLUTIONS LTD
  • EMPOWER ME RECRUITMENT LTD
  • FARYS CONSULTING LTD
  • FBS ELECTRICAL LTD
  • FERNLEY JONES LIMITED
  • GEREC LIMITED
  • G-NEEZ LTD
  • GRAFTERS LABOUR SUPPLY LTD
  • G T HOMES (MK) LIMITED
  • HALOPEO PAYMENTS LTD
  • HOVE PARK APARTMENTS LTD
  • HUDSON’S BREAKFAST LONDON LIMITED
  • ICON GROUP SERVICES LIMITED
  • INSPIRED LEISURE & ENTERTAINMENT LIMITED
  • JW SPORTS MEDIA LIMITED
  • K & B RECYCLING LIMITED
  • KM INDUSTRIAL SERVICES LTD
  • KUBELET CONSULTING LTD
  • LBR CONSTRUCTION LTD
  • LEXARIA LIMITED
  • LIME INTERNATIONAL PARTNERS LTD
  • LINKSTONE CAPITAL LIMITED
  • LIONPAW SS LIMITED
  • MALA INDIAN KITCHEN & BAR LTD
  • MARUCA VENTURES LTD
  • MARTIN REDDINGTON ASSOCIATES LIMITED
  • MAXIN GROUP LIMITED
  • MEON MAINTENANCE LTD
  • METRO INNS (FALKIRK) LIMITED
  • M&M STAFFING LIMITED
  • MPW PLUMBING & HEATING LIMITED
  • NDT PROPERTIES LTD
  • OLUT SERVICES LTD
  • ONE EIGHTY LIGHT LTD
  • ON-CALL RECRUITMENT LIMITED
  • PLANOVA LEEDS LIMITED
  • POOLSERVE LIMITED
  • R 2 R GLOBAL LTD
  • RAW SPITALFIELDS LIMITED
  • REALLO COMMERCIAL LTD
  • RECRUITMENT AND RESOURCING PROFESSIONALS LTD
  • RICO INDUSTRIAL SERVICES LIMITED
  • S CLARK LTD
  • SEP PROFESSIONAL SERVICES LIMITED
  • SPECTRUM PUBS & BARS LTD
  • SPRINT XPRESS LTD
  • STRATTON VALLEY LTD
  • STURGIS SERVICES LTD
  • TAG BULL LTD
  • THE SPLINED HUB LIMITED
  • TIMBERJACKS CLUBS LTD
  • TLP COMMERCIALS LTD
  • UBA FR LTD
  • UNIT ENGINEERS & CONSTRUCTORS LIMITED
  • URBAN EYE CONTRACTORS LIMITED
  • URBAN EXCESS LIMITED
  • VEQTA LTD
  • WELCH CIVILS (MID WALES) LIMITED
  • WEST LONDON CONSTRUCTION SERVICES LTD
  • WIND MANAGEMENT GROUP LTD
  • WOODUN LIMITED
  • YEASTIE BOYS PIZZA CLUB LTD

Today’s CPA Insight

Strong markets and rate cuts don’t eliminate late payment risk. January remains one of the toughest months for cash flow — especially with tax bills, higher costs and stretched consumers.

If you’re worried about customer exposure, overdue invoices or insolvency risk, now is the time to act.

We help businesses protect cash flow, recover overdue accounts and monitor customer risk.

Just call Peter Uwins, CPA’s National Sales Manager, on️ 020 8846 0000 (business hours from Monday 5th) or email nsm@cpa.co.uk today.

When you see your money come in, you will be so glad you used CPA.

The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections.