Big Firms Could Be Charged in Latest Late Payment Crackdown

Proposals released by Small Business Minister Kelly Tolhurst will make the boards of big companies more accountable for late payments to small businesses.

And, for the first time, large firms could be fined if they don’t pay smaller suppliers on time.

The amount owed in late payments has halved over the last five years, but the government wants to go further to support the nation’s smallest businesses.

FreeAgent: Just 51% of invoices paid on time

Research showing that almost 50% of invoices are not paid on time has strengthened calls for the government to tackle the late payment crisis affecting freelancers and other microbusinesses.
Conducted by cloud accountancy software company FreeAgent, the research analysed 50,000 businesses and hundreds of thousands of invoices from the last year.
Last year, the government pledged to tackle the late payment of invoices. In part this was to be done through a Small Business Commissioner, who would act as a champion for Britain’s busy small businesses. But this post has yet to be filled.

2% of small business owners have faith in late payments commissioner

Survey evidence has revealed that a tiny proportion of the smallest UK businesses believe that the newly appointed Small Business Commissioner will tackle the late payment crisis.
Research from cloud accounting software company FreeAgent shows that just 2% of UK microbusinesses believe that the new Commissioner, Paul Uppal, will take the challenge ‘seriously’.
Other research from the company shows the scale of the problem.