New rules, which are expected to come into force from spring 2027, will make it easier for people to avoid costly subscription traps.
The rules will mean:
- Clear, simple information to be provided before any subscription is signed up for.
- Reminders before free or discounted trials end, or before annual (or longer) contracts automatically renew.
- Cancellations will be made straightforward, including online exits for online sign-ups.
- A new 14-day cooling-off period, after a free or discounted trial ends, or when an annual (or longer) contract renews.
The government has confirmed that initial cooling-off rights and refunds will be broadly consistent with existing Consumer Contract Regulations. This includes retaining a waiver for digital content.
For the cooling-off refund period for renewals, consumers will be able to receive a full or proportionate refund if they decide to cancel. Proportionate refunds will allow businesses to be compensated for the proportion of contract services or digital content that has been supplied.
Certain memberships of charitable, cultural and heritage organisations will be excluded from the new rules.
Businesses that receive revenue from subscriptions will want to keep an eye on these regulations as they develop over the next year.
HMRC have proposed a new criminal offence for making reckless, untrue statements or declarations about what's known as 'direct taxes' - Income Tax, National Insurance and the like. For Customs and Excise and VAT ('indirect taxes'), it is already possible to prosecute individuals who make untrue statements or submit incorrect documents either knowingly or recklessly, without the need to prove dishonesty. The penalties for such offences can be severe, including substantial fines and imprisonment. The direct tax regime does not currently contain an equivalent offence.
A new Freedom of Information (FOI) request has discovered that health and safety violations cost British employers over £44 million per year. The Health and Safety Executive (HSE) revealed that serious breaches have resulted in an increasing number of prosecutions between 2023 and 2025.
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