Last Updated on October 30, 2026
The UK’s new subscription rules apply to contracts between a trader and a consumer. They cover subscriptions taken out from 1 January 2027. If you pay for software, hosting or marketing services as a business, you are not the consumer in that contract. Your renewals, notice periods and refunds still run on the terms you signed.
That matters because many owners assume the opposite. In public business forums, the same story comes up again and again. Someone misses a cancel-by date set a month before renewal, gets charged for another year, asks for a refund and is told business buyers do not get one.
This is not legal advice. It is a plain summary of what the law and published guidance say, so you know where you stand.
What is changing
The subscription rules sit in the Digital Markets, Competition and Consumers Act 2024. On 9 August 2026 the government confirmed they will start in January 2027, earlier than the spring 2027 date expected before, as law firm Stephenson Harwood reported.
Draft guidance and draft regulations followed. Law firm Lewis Silkin’s 21 October 2026 update says the rules will apply to business-to-consumer subscription contracts entered into on or after 1 January 2027.
For consumers, the changes include written reminder notices and easier cancellation. There is also a new 14-day cooling-off period after a free trial ends, or after a contract of 12 months or more renews automatically, according to law firm RPC’s summary of the government’s consultation response.
Why your business is not covered
Section 254 of the Act starts: “a subscription contract is a contract between a trader and a consumer”. A business buying a tool to run its business is the customer, but not the consumer.
So the reminder notices, the renewal cooling-off and the easier exit are rights your customers may get from you. They are not rights you get from your own suppliers.
If you are a sole trader, check the purpose of the purchase. A tool bought for your trade is a business purchase, even when you pay for it yourself.
The mistake most businesses make
They sign up on a monthly price and only read the exit terms when they want to leave. By then the minimum term, the notice period and the renewal date are already fixed.
Whito’s agency contract terms study found 19 of 39 UK agency pricing pages fail the leave-date test: they do not say when and how you can leave. Software terms are often the same. The price is on the front page. The exit is in the small print.
What to do this week
This is a Start-stage job. It takes an hour and it protects money you are already spending.
- List every subscription. Go through three months of bank and card statements. Include software, hosting, domains, email, directories and any marketing retainer.
- Write down three dates for each. The renewal date, the notice period, and the last day you can cancel without paying for another term.
- Put the cancel-by date in your diary two weeks early. Not the renewal date. The cancel-by date is the one that costs you.
- Ask before you renew. If an annual plan renews soon, ask the supplier in writing whether a monthly plan is available and what the price will be.
- Check every new contract for its leave date before you sign. If you cannot find it, ask. If they will not say, that is your answer.
If you sell subscriptions
The other side of this matters too. If your business sells memberships, plans or subscriptions to the public, the new rules are likely to apply to you for contracts from 1 January 2027. Salons, gyms, software sellers and service plans should read the government’s guidance once it is final.
Questions people ask
Do the new UK subscription rules apply to businesses?
Not as buyers. The Digital Markets, Competition and Consumers Act 2024 defines a subscription contract as a contract between a trader and a consumer. A business buying a tool or service for its business is not the consumer, so its renewals still run on the contract it signed.
When do the new subscription rules start?
The government confirmed on 9 August 2026 that they will start in January 2027. Lewis Silkin’s 21 October 2026 summary of the draft regulations says they apply to consumer subscription contracts entered into on or after 1 January 2027.
Can I get a refund if my business software renews automatically?
Only if your contract or the supplier allows it. Check the renewal and refund terms you agreed to, and ask the supplier in writing. Put your cancel-by dates in your diary so it does not happen again.
Does a sole trader count as a consumer?
Not when buying for the business. A purchase made for your trade is a business purchase, even if you pay for it yourself. If you are unsure, take advice on your own contract.
The takeaway
The new rules protect your customers, not you. Every business subscription you hold still runs on the terms you agreed. Find your cancel-by dates this week, before the next renewal finds you.
Planning next year’s spending? The free UK Marketing Budget Planner shows what a realistic monthly budget looks like before you commit to anything new.
