+44 (0) 1908 774320
   
Roger Eddowes

Essendon Accounts & Tax

Home of the Business Godparent ...

Late Payments Bill gains momentum for small businesses

Roger Eddowes

CREATED BY ROGER EDDOWES

Published: 18/06/2026 @ 09:00AM

#LatePaymentsBill #SmallBusinessProtection #TighterPaymentTerms #FirmerEnforcement #PressureOnLargerFirms #PayOnTime

The Late Payments Bill is progressing through Parliament, and small businesses may finally receive stronger protection against slow payers. It introduces tighter payment terms, firmer enforcement, and greater pressure on larger firms to pay on time ...

The Late Payments Bill receives widespread support as small businesses push for fairer payment practices

The Late Payments Bill receives widespread support as small businesses push for fairer payment practices

The Late Payments Bill is now advancing through Parliament, and that matters because overdue payments have long been a major concern for some of my smaller clients. For many, the problem is not just an inconvenience; it is a direct hit to their cash flow, with invoices unpaid while staff, suppliers, and tax bills still need to be paid.

What makes this legislation notable is that
it does more than signal concern!

It points towards clearer late-payment legislation, including tighter payment terms for large companies dealing with smaller suppliers, and a stronger expectation that money should move through the economy at a sensible pace. We'll see fewer long waits and less ambiguity about when payment is due.

The proposed changes also signal a shift in tone. Rather than relying mainly on goodwill and reminders, the Late Payments Bill gives the Small Business Commissioner a more active role, with powers that could help tackle persistent offenders.

I think giving the regulator teeth is a very good idea, as asking politely rarely changes behaviour on its own.

There is also a broader commercial logic here. When large businesses extend payment terms too far, they do not simply create frustration; they push risk down the supply chain. Smaller firms often absorb that pressure first and then have to spend valuable time chasing invoices rather than focusing on growth, hiring, or investment.

The construction sector is also under scrutiny!

There are plans to curb retention practices that can leave subcontractors waiting far too long for money they have already earned. I believe this matters because retention has often been treated as routine, even when it places a heavy burden on smaller firms that are least able to bear it.

The rationale behind the Late Payments Bill is encouraging, as it treats late payment as a structural issue rather than a minor administrative oversight. If it delivers as I think it will, it could provide real relief for small businesses' cash flow and reset expectations about how quickly business invoices should be settled.

The real test will be whether the Late Payments Bill changes habits as well as rules.

Until next time ...


ROGER EDDOWES
Join our mailing list! Click here and be one of the first to know when we publish a new blog post!


Would you like to know more?

If anything I've written in my blog post resonates with you and you'd like to discover more of my thoughts about the Late Payments Bill, then do call me on 01908 774320 and let's see how I can help you.

Don't forget to stay updated with our daily social media posts on Facebook.

Share the blog love ...

Share this to FacebookBuffer
Share this to FacebookFacebook
Share this to TwitterTwitter
Share this to Linkedin (popup window)Linkedin
Share this to Pinterest (popup window)Pinterest
Share this to WhatsApp (popup window)WhatsApp

#LatePaymentsBill #SmallBusinessProtection #TighterPaymentTerms #FirmerEnforcement #PressureOnLargerFirms #PayOnTime

About Roger Eddowes ...

Roger Eddowes 

Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.

Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.

More blog posts for you to enjoy ...

Click here to view this blog post


Cybersecurity risks for businesses: Why basic protection matters more than ever

Cybersecurity risks for businesses continue to evolve, and recent incidents show that it is no longer enough to think of cybersecurity as something that concerns only large organisations or technology companies. The ways a bu...

Click here to view this blog post


UK business growth needs certainty, not just good intentions

There has been plenty of discussion about UK business growth recently, and the Chancellor has now given us some indication of the direction the Government intends to take in the October Budget ......

Click here to view this blog post


Why the cost of doing business is holding back growth

Growth is talked about constantly, but I think we sometimes overlook something rather obvious. Businesses need the confidence and financial headroom to invest before meaningful growth can happen. Right now, the cost of doing ...

Click here to view this blog post


The soft skills employers look for are becoming more important

Qualifications and technical experience will always matter when businesses recruit new people. However, recent research highlighted by the BBC suggests that the soft skills employers seek are becoming increasingly important t...

Click here to view this blog post


Five practical ways to boost UK economic growth

There is no shortage of political discussion about UK economic growth, but the more important question is what must change to achieve it. Governments can publish strategies and promise reform, but sustainable growth depends o...

Click here to view this blog post


Companies House accounts filing changes: Why 2028 is closer than you think

The Companies House accounts filing changes coming into force from April 2028 may sound comfortably distant, but I think businesses would be wise to start understanding them now. The reforms will change both how company accou...

Click here to view this blog post


Practical mental health tips for business leaders

Running a business can be rewarding, but it can also put considerable pressure on the person in charge. These mental health tips for business leaders can help owners and managers protect their well-being while continuing to m...

Click here to view this blog post


Could AI finally solve the UK productivity problem?

For years, UK productivity has been something of an economic headache. Before the financial crisis in 2008, productivity was growing at a much healthier rate, but progress since then has been disappointingly slow ......

Other bloggers you may like ...

Click here to view this blog post


Why I created YourPING: A simple daily reassurance check-in service

Posted by Steffi Lewis on https://www.yourping.uk

YourPING started with a very simple idea: what if there was an easy daily reassurance check-in that let someone know you were OK, without requiring an ...

Click here to view this blog post


Some great reviews for my Bookkeeping Buddy subscription

Posted by Alison Mead on https://blog.siliconbullet.com

Do It Yourself bookkeeping often feels like a chore when you're managing your own business accounts or even just starting off as a bookkeeper. This is ...

Click here to view this blog post


Why adult children worry about parents who live alone

Posted by Steffi Lewis on https://www.yourping.uk

When parents reach a stage where they're happily living on their own, it can be a source of pride for the whole family. They're independent, capable, ...

Click here to view this blog post


Long-stay accommodation in Milton Keynes: Make yourself comfortable

Posted by Emily Freeman on https://blog.shortstay-mk.co.uk

If you are staying away from home for a night or two, a hotel room can be perfectly adequate. But when a trip stretches into a week, several weeks, or ...

© 2026 by Roger Eddowes

All rights reserved



All content on this blog, including but not limited to text, images, videos and audio, is protected by copyright. No part of this blog may be reproduced, copied, distributed, or otherwise used without the prior written consent of the author. Unauthorised use constitutes a breach of intellectual property rights.

Please note that many elements of this blog have been created using Artificial Intelligence (AI). As such, content may not always reflect verified facts or professional advice. The information provided is for general interest only and should not be relied upon as a sole source for making decisions, financial or otherwise. Readers are strongly advised to seek independent advice from qualified professionals appropriate to their country and situation.

The author of this blog, YourPCM Limited, and its directors, employees, and authorised agents accept no liability for any loss, harm, or consequence arising from the use or interpretation of content found on this site.

The sblogit.com platform is provided on an “as is” basis. By continuing to view or interact with this blog, you acknowledge and accept these terms. If you do not agree with any part of this notice, please cease using this site immediately.

YourPCM Limited is a company registered in the UK and operates exclusively under the jurisdiction of the laws of England and Wales.