The most recent unique article for SMEWeb from Small Enterprise Commissioner Emma Jones CBE seems at current authorities bulletins on tackling late fee of invoices. Emma runs the unbiased public physique that tackles late funds and unfair fee practices.
Final week was a giant week for small corporations. The federal government revealed its response to the late fee session and, within the phrases of 1 analyst, “got here out swinging”.
Let’s first rewind a bit of. In July 2025, the prime minister unveiled a Small Enterprise Plan for the UK, together with an announcement that the Division for Enterprise and Commerce would seek the advice of on 9 measures aimed toward rushing up fee phrases and instances. The session ran for 12 weeks and obtained a file 800+ responses. Many discussions have been had with firms, massive and small, on the proposals.
What was introduced final week was an intent to maneuver proposals into regulation. There are some meaty measures being taken ahead together with shifting the UK to a rustic the place 60 day fee phrases are the utmost allowed ie no extra expectation that small corporations will signal contracts with 90 or 120 day fee phrases with out criticism.
Within the new world, ought to invoices be paid late a compulsory 8% curiosity over base price will probably be mechanically utilized and anticipate to be paid. I’m eager that small companies know this may be utilized (from the date it comes into authorized impact) and really feel assured to use it, however the Workplace of the Small Enterprise Commissioner may also be reviewing knowledge on fee efficiency and contacting firms the place knowledge reveals curiosity is owed.
Talking of the Workplace, it is going to additionally acquire new powers to research companies that aren’t paying on time, with intelligence sourced from public knowledge and from small corporations who contact the Workplace with instances and complaints. A brand new improvement implies that investigations will be carried out in nameless vogue and never needing to call the complainant.
These measures now should be drafted in a Invoice that then makes its passage via Parliament. This will take time. However what’s now clear is the federal government’s; intent and path of journey in order anybody is aware of who runs an environment friendly enterprise, it’s good to be ready.
As a small enterprise, I might advise you to comply with the Invoice – we will probably be producing common updates on its progress – perceive how your rights are altering, and begin to have conversations along with your massive purchasers on how they themselves are getting ready. Are they signed as much as the Honest Fee Code? Are they reviewing contracts and fee processes as a way to adjust to any new fee phrases and computerized curiosity software?
I do know first hand how chasing late invoices can influence cashflow and productiveness. If we get this proper, hours will probably be freed so quite than making an attempt to safe cash for services and products delivered, you possibly can as a substitute spend hours on going for development. Let’s get this Invoice underway!
