US EditionNew 60-Day Payment Rule Coming for Large Firms Following Consultation
- The government unveiled the toughest crackdown on late payments to small businesses in more than 25 years, strengthening legislation first established in the 1998 Commercial Debt Act.
- Late payments cost the UK economy an estimated £11 billion annually, prompting Business Secretary Peter Kyle to state: "Far too many businesses are forced to shut down because they have not been paid."
- New measures introduce a 60-day cap on payment terms for large firms, with mandatory interest set at 8 per cent above the Bank of England base rate.
- Enhanced powers for Small Business Commissioner Emma Jones will allow investigation of poor payment practices, with the announcement welcomed by industry groups including the IoD, FSB, and CBI.
- Small Business Minister Blair McDougall hailed the measures as "genuinely game-changing," saying these reforms ensure no business must endure being left strapped for cash they have already earned.
21 Articles
21 Articles
Could late payments be a thing of the past? Reforms are coming
The government is tackling late payments for small businesses by fining big businesses and repeat offenders as part of sweeping reforms. In what they’re calling “the toughest crackdown on late payments in 25 years”, big businesses will now be mandated to pay within 60 days when working with smaller suppliers. But what does this mean for small businesses and the self-employed? Reforms: at a glance payment terms set to a maximum of 60 days fo…
Government crackdown on late payments to small businesses welcomed
New legislation requiring small businesses to be paid on time, with persistent late payers facing tough penalties, has been welcomed by the road haulage industry, writes Peter Brown. The government said the Small Business Commissioner will be given “sweeping new powers to investigate poor payment practices, adjudicate payment disputes, and fine the worst offenders”, with fines potentially running into millions for firms that consistently pay lat…
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