Small Business Legal Report 2026
Sprintlaw and government data on the legal issues facing UK small businesses in 2025–26.
By Alex Solo, Co-Founder, SprintlawPublished October 2026What UK small businesses come to Sprintlaw for
Share of Sprintlaw legal jobs by area, each financial year (April to March). Contracts come first every year.
- Contracts & customers32.6%
- Online, data & privacy18.6%
- Shareholders, investment & sales13.8%
- Brand & IP12.4%
- Employment & contractors9.3%
- Other8.4%
- Starting & structuring3.3%
- Leases1.5%
Show the numbers
| Area | 2022–23 | 2023–24 | 2024–25 | 2025–26 |
|---|---|---|---|---|
| Contracts & customers | 33.2% | 39.4% | 37.3% | 32.6% |
| Employment & contractors | 8.9% | 7.4% | 7.5% | 9.3% |
| Starting & structuring | 1.8% | 4.4% | 4.2% | 3.3% |
| Shareholders, investment & sales | 11.6% | 10.2% | 13.7% | 13.8% |
| Brand & IP | 7.6% | 5.0% | 8.0% | 12.4% |
| Online, data & privacy | 20.0% | 20.5% | 22.4% | 18.6% |
| Leases | 0.5% | 1.5% | 1.9% | 1.5% |
| Other | 16.5% | 11.5% | 5.0% | 8.4% |
| Legal jobs (about) | 400 | 460 | 720 | 1,170 |
Source: Sprintlaw legal jobs, 2022–23 to 2025–26Notes
Sprintlaw legal jobs for UK clients, mostly small businesses, April 2022 to March 2026: more than 2,700 jobs, de-identified and aggregated. These are legal jobs, not businesses: a client with three jobs counts three times. Each job is counted once, by its main service, using fixed rules that agree with Sprintlaw’s own product categories 84% of the time; legal advice and consultations are in Other. Jobs per year are under “Show the numbers”. 2022–23 rests on only about 400 jobs, so read it as indicative. Sprintlaw clients are not a random sample of UK businesses: they lean towards start-ups and online, professional and technology businesses, Sprintlaw does not run court cases, and shifts over time also reflect the services Sprintlaw offers. The full method is in the free report.
Unfair dismissal, unpaid wages and disability discrimination lead employment disputes.
Disputes as counted by Acas, the tribunals, the courts and the regulators that handle them.
What 150,076 Acas early conciliation cases were about, 2025–26
- Unfair dismissal28.8% in 2024–2528.5%
- Unpaid wages (deductions from pay)23.2% in 2024–2521.4%
- Disability discrimination16.3% in 2024–2518.7%
- Breach of contract9.2% in 2024–259.0%
- Working time and holiday pay9.4% in 2024–257.9%
- Sex discrimination6.6% in 2024–256.4%
Source: Acas individual disputes data, 2025–26Notes
Acas, individual disputes facts and figures 2025–26 (published July 2026): share of all early conciliation cases that included each claim type. Acas notes claim types on an indicative basis and a case can include several, so shares add to more than 100%. Early conciliation is the step before most employment tribunal claims. Acas recalculated its totals under a new method, so its 2024–25 total is 117,754, not the 124,546 in its 2024–25 annual report.
Large businesses paid 15% of invoices late in 2025, down from 25% in 2018 (median report)
- 2018 reportsmedian 35 days to pay25%
- 2024 reportsmedian 32 days to pay16%
- 2025 reportsmedian 32 days to pay15%
Source: DBT payment practices statistics, 2025Notes
Large businesses’ payment practices and performance statistics 2025 (published July 2026): medians across 11,178 valid reports covering 2025 (13,175 for 2018). The figures are self-reported and not audited, and cover suppliers of every size. Fewer businesses had to report in 2025 after the size thresholds changed.
Where disputes go
- County Court money claims, England and Wales2025–261,681,532
- Acas early conciliation, Great Britain2025–26150,076
- Allocations to the small claims track, England and Wales2025–2694,690
- Data protection complaints to the ICO, UK2025–2676,743
- Employment tribunal claims by one person, Great Britain2025–2650,704
- Simple procedure cases, Scotland2024–2529,962
- Small claims, Northern Ireland (provisional)2025–268,179
Source: Court, tribunal, Acas and ICO statisticsNotes
Ministry of Justice civil justice and tribunal statistics (April to June 2026 releases), Acas, the ICO annual report 2025/26, Scottish Courts and Tribunals Service (April 2026 edition, latest full year 2024–25) and Northern Ireland Courts and Tribunals Service quarterly figures (provisional). Latest year for each, in each body’s own unit, so never added up. Money claims are claims for a fixed sum, mostly debts, from businesses and individuals of every size.
Needs differ by business age.
Online and privacy work is 28% of Sprintlaw jobs for first-year UK businesses, and 16% for businesses six or more years old. Contracts are 28% and 39%.
Contracts & customersEmployment & contractorsStarting & structuringShareholders, investment & salesBrand & IPOnline, data & privacyLeasesOther
Source: Sprintlaw legal jobs, 2024–25 and 2025–26Notes
Sprintlaw legal jobs for UK clients in 2024–25 and 2025–26 where the business told us its start year, by how long it had been going: about 1,200 jobs, de-identified and aggregated. Areas with fewer than 10 jobs in an age group are in Other. This compares different businesses at different ages, not the same businesses followed over time.
What owners say they need help with.
The legal priorities UK owners pick when they join Sprintlaw. Choose a business like yours.
All businesses · about 2,360 businesses
- Contracts66%
- Privacy & data48%
- Compliance41%
- Brand & IP41%
- Structure & registration35%
- Employment27%
- Governance21%
Source: Sprintlaw onboarding answers, July 2024 to September 2026Notes
Sprintlaw onboarding answers from more than 2,300 UK businesses, July 2024 to September 2026, de-identified and aggregated. Owners can pick several, so shares add to more than 100%. Groups of fewer than 100 businesses are not shown.
Trends we spotted.
Official figures on what goes wrong, from the agencies that count it.
Company insolvencies
23,585
companies in England and Wales entered insolvency in 2025–26, −2.2% on 2024–25. Companies wound up by the court +6.9%.
Employment tribunal claims
+40%
claims brought by one person in 2025–26 (50,704), compared with 2024–25. Open claims at 31 March 2026: 64,157, up from 41,396.
Data protection complaints
+81%
complaints to the Information Commissioner in 2025–26 (76,743), compared with 42,315 in 2024–25.
Northern Ireland has the lowest company insolvency rate, and the fastest rise.
Company insolvencies for every 10,000 companies on the effective register, 12 months to March 2026. It compares nations; it is not a failure rate. The tick marks the year before.
- England and Wales23,585 company insolvencies in 2025–2651.6was 53.0
- Scotland1,277 company insolvencies in 2025–2652.3was 51.6
- Northern Ireland354 company insolvencies in 2025–2643.1was 35.6
Source: Insolvency Service company insolvency statistics, August 2026 releaseNotes
Insolvencies in the 12 months to March 2026 for every 10,000 companies on the effective register (companies not dormant or already being wound up), as published by the Insolvency Service (provisional). England and Wales are published together. This compares nations; it is not the share of businesses that failed.
Six things to check this year.
One for each area, and each from a real UK decision. Open a row to see what happened.
Contracts, customers & paymentsShow the full price, including every compulsory fee, from the first price you show.
£4.2 million penalty
- 33%
- of Sprintlaw's UK legal jobs, 2025–26: Contracts & customers
- 66%
- of UK owners joining Sprintlaw list contracts as a legal priority
- 93%
- of County Court judgments in England and Wales were default judgments, 2025–26 (MoJ)
How to check
- Every price you show consumers includes fees they cannot avoid, such as booking or admin fees; if a fee cannot be worked out in advance, you say how it is calculated.
- Before each campaign, someone clicks from the ad to checkout the way a customer would.
- Optional extras are clearly optional, and nothing compulsory is added at the last step.
A £3 booking fee was left out of advertised driving lesson prices
From April to December 2025, the AA and BSM driving school websites showed lesson prices that left out a £3 booking fee charged on every booking. At first the fee was not shown at all; later it was shown separately. Either way, the full price appeared only on the final payment page. The Competition and Markets Authority found this broke the Digital Markets, Competition and Consumers Act 2024. The business admitted the breach and settled, so the £7 million penalty was cut to £4.2 million.
Automobile Association Developments Limited (AA and BSM) CMA case 51667, 15 April 2026Final infringement notice (settled, breach admitted)
Ownership & governanceIn a 50/50 company, agree fees, deadlock and exit in writing at the start.
£324,720 buyout ordered, plus interest
- 14%
- of Sprintlaw's UK legal jobs, 2025–26: Shareholders, investment & sales
- 21%
- of UK owners joining Sprintlaw list governance as a legal priority
How to check
- A shareholders’ agreement covers deadlock, exit and how shares are valued.
- Any fee a shareholder’s own business charges the company is agreed in writing before it is paid.
- Directors who also act for a shareholder’s business declare the conflict, step out of those decisions and never act against the company.
A 50/50 co-owner’s threats and delays ended in a court-ordered buyout
A couple and a leisure group owned an indoor inflatable leisure centre 50/50, with the group supplying the brand and management. In 2022 the group took a £10,000 fee without agreement and threatened to remove its brand; a fee deal followed but was never put in writing. In 2023 it threatened to withdraw its services at short notice, demanded the couple’s shares for £1 each and held up the accounts over a going-concern warning until the insurance lapsed and the centre closed for three weeks. The court found the fee demands unfair but not shown to cause loss, and the 2023 conduct unfairly prejudicial. It ordered the group to buy the couple’s shares for £324,720 plus interest.
Davidson v Pinz Bowling Ltd [2025] CSIH 6Court of Session appeal, Scotland, 18 February 2025 (reversing the trial judge)
Privacy & dataGive every admin account only the access it needs, and review them every year.
£60,000 fine
- 19%
- of Sprintlaw's UK legal jobs, 2025–26: Online, data & privacy
- 48%
- of UK owners joining Sprintlaw list privacy and data as a legal priority
- £33.8 million
- in monetary penalties imposed by the ICO, 2025–26 (£18.3 million of it under appeal), up from £4.4 million (ICO)
How to check
- Admin and service accounts have only the access they need, and are reviewed at least once a year.
- Accounts that can reach personal data use multi-factor authentication or equivalent protection, and old systems kept for records are cut off from your network.
- A breach plan names an owner and reports any reportable breach, including losing access to data, to the ICO within 72 hours of finding out.
Attackers used an old admin account with full access to the whole network
Attackers got into a law firm’s network and used an administrator account set up in 2001 for an old case management system. Though its job was limited, the account had full access to the whole network and no multi-factor authentication. Data about 791 clients and experts, including court bundles, was posted on the dark web. The firm reported the breach to the ICO 43 days after the attack, after the National Crime Agency contacted it; it had not treated losing access to client data as a reportable breach. The ICO fined it £60,000.
DPP Law Ltd ICO penalty notice, 14 April 2025Monetary penalty (no appeal listed by the ICO)
Brand & intellectual propertyCheck trading names and trade marks, not just Companies House, before you pick a name.
Name change ordered, plus £1,700 costs
- 12%
- of Sprintlaw's UK legal jobs, 2025–26: Brand & IP
- 41%
- of UK owners joining Sprintlaw list brand and IP as a legal priority
How to check
- The trade mark register and the web are searched for names that look or sound similar, in your field and related ones, not only Companies House.
- You keep a dated note of why you chose the name.
- Before you launch, you apply to register your name as a trade mark for what you sell.
A company had to change a name that sounded like an older rival’s brand
A coatings installer renamed itself Polycoat in 2017. A business that had traded as Polycote since at least 1993 challenged the name. The adjudicator found the names highly similar and rejected the arguments that Polycoat’s company was registered first, that the businesses were different and far apart, and that the name was generic. Polycoat did not explain in its evidence why it chose the name, so its good-faith defence failed. It was ordered to change its name and, with its directors, to pay £1,700 in costs.
Polycote UK LLP v Polycoat Ltd BL O/1037/25Company Names Tribunal, 7 November 2025 (name changed December 2025)
Employment & workplaceKeep the cost of pregnancy or leave out of any staffing decision.
£24,868 compensation
- 9%
- of Sprintlaw's UK legal jobs, 2025–26: Employment & contractors
- 27%
- of UK owners joining Sprintlaw list employment as a legal priority
- 150,076
- employment disputes started Acas early conciliation, 2025–26, +27% on 2024–25 (Acas)
How to check
- A redundancy rests on the work, never on the cost of someone’s pregnancy or leave, and a pregnant employee is offered any suitable vacancy first.
- Before any dismissal, including redundancy, the employee gets notice of a meeting, a chance to respond and a genuine appeal.
- Pregnant employees get a workplace risk assessment.
A salon made its apprentice redundant two weeks after she said she was pregnant
A week after its apprentice said she was pregnant, a hairdressing salon told her that her hours would be cut; a week later it made her redundant, citing money problems. The tribunal found the cost of the pregnancy drove the decision, so it was discrimination and an automatically unfair dismissal. The appeal outcome letter was dated the day before the appeal meeting. The tribunal added the maximum 25% for not following the Acas Code; being a small firm without advice was no excuse.
Hayler v Meyer and Dior t/a Beachcombers Case No. 2306228/2023Employment Tribunal (Croydon), 19 June 2025
Financial distress & insolvencyGet insolvency advice as soon as the company cannot, or soon may not, pay its debts.
5-year ban for both directors
- 3,602
- companies in England and Wales were wound up by the court, 2025–26, +6.9% on 2024–25 (Insolvency Service)
How to check
- Each month, the directors check the company can pay tax, rent and suppliers when they fall due.
- Once it cannot, the board stops payments that put directors ahead of creditors and takes licensed insolvency advice.
- Board decisions, and the date advice was taken, are minuted.
Directors kept trading for a year after their company could not pay its debts
By the end of May 2022 a steakhouse company could not pay its debts. In June 2022, debt collectors were appointed to recover £76,788 in rent and service charges for its York restaurant, and they were also instructed to collect £46,744 in business rates. From September to December 2022 the company still paid £20,440 on luxury car leases for its two directors, though one car was returned and another never delivered. They took insolvency advice only in June 2023, and trading on added more than £180,000 to the company’s debts. Both were banned as directors for five years.
K and L Restaurants Ltd (Caramba Steakhouse) Insolvency Service press release, 20 November 2025Disqualification undertakings accepted by the Secretary of State
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