The start of a new financial year is the perfect time for businesses to review whether their legal documents, governance framework and compliance arrangements are still fit for purpose.
With significant regulatory changes now in force or coming into effect during 2026, particularly in employment law, data protection and company administration, an annual legal health check is an important part of risk management.
In this guide, Sam Glascow, a corporate-commercial associate solicitor, highlights the key legal documents businesses should review as they enter the 2026/27 financial year.
Contracts and Commercial Agreements
Contracts remain the foundation of any business relationship. As part of a new financial year review, businesses should consider:
- Reviewing customer, supplier and consultancy agreements
- Ensuring contractual terms reflect how the business actually operates
- Checking termination, limitation of liability and payment provisions
- Updating templates to reflect regulatory or operational changes
Out‑of‑date or inconsistent contracts remain a common cause of disputes and unnecessary commercial risk.
Corporate Governance and Companies House Compliance
Corporate governance continues to be a key area of focus for UK companies, particularly following the staged implementation of the Economic Crime and Corporate Transparency Act 2023.
Businesses should review:
- Articles of association and shareholders’ agreements
- Any changes in shareholders, directors or management
- Confirmation statements and registered company details
Mandatory identity verification for company directors and people with significant control began rolling out from November 2025, with a 12‑month transition period. Companies should ensure that all directors and PSCs are aware of their verification obligations and that internal records align with Companies House filings. Non‑compliance can result in financial penalties and restrictions on making company filings.
Regulatory Compliance
Regulatory requirements evolve continually across many sectors. Businesses should regularly review:
- Licences, permits and industry‑specific authorisations
- Compliance policies and internal controls
- Record‑keeping obligations
Allowing regulatory documentation to fall out of date remains a common source of avoidable legal and commercial risk.
Data Protection and Privacy
Data protection law has continued to develop since April 2025. The Data (Use and Access) Act 2025 has amended aspects of UK GDPR, the Data Protection Act 2018 and PECR.
Businesses should review and, where appropriate, update:
- Privacy policies and cookie notices
- Lawful bases and legitimate interests assessments
- Internal data handling and retention procedures
- Complaint‑handling processes
As enforcement powers and financial penalties have been aligned across regimes, outdated privacy documentation can quickly expose businesses to regulatory scrutiny.
Employment Policies and Handbooks
Employment law has seen particularly significant change over the last year.
Key elements of the Employment Rights Act 2025 are now in force, including changes effective from April 2026 such as:
- Statutory Sick Pay (SSP) being payable from day one of absence
- Removal of the lower earnings limit for SSP eligibility
- Day‑one rights to paternity leave and unpaid parental leave
- Increased financial exposure for failures in collective redundancy consultation
Employment contracts, policies and handbooks should be reviewed to ensure they accurately reflect both the current legal position and the business’s operational practices.
Intellectual Property
Intellectual property should form part of any annual legal review. Businesses should consider:
- Whether trademarks, patents and copyright protections remain up to date
- Ownership provisions in customer and supplier agreements
- Protection for newly developed products, services or branding
As businesses grow, diversify or pivot, IP is frequently overlooked until a problem arises.
Insurance and Risk Management
Insurance arrangements should be reviewed alongside contractual risk allocation. This includes:
- Confirming insured risks match current business activities
- Reviewing indemnities and liability caps within contracts
- Checking directors’ and officers’ insurance following governance changes
Misalignment between contractual risk and insurance cover remains a common issue for growing businesses.
Next Steps
Starting a new financial year is not only about setting commercial objectives; it is also about ensuring the legal framework supporting the business remains robust.
Regularly reviewing legal documents helps to reduce regulatory and contractual risk, improve operational resilience and place the business in a stronger position for the year ahead.
RFB regularly supports businesses of all sizes with annual legal health checks and document reviews. If you would like assistance reviewing your legal documents for the 2026/27 financial year, please contact Sam Glascow of RFB’s corporate commercial team.
Samuel Glascow
Associate Solicitor
