The UK Government has announced the toughest crackdown on late payments in over 25 years, marking a major shift in how large companies must treat their suppliers.
Under the new plan, big firms will face tighter legal obligations to pay invoices on time — with payment terms to be capped at 60 days, eventually falling to 45 days for many businesses.
This reform package comes as part of a wider initiative to support the UK’s 5.5 million small businesses and includes new powers for the Office of the Small Business Commissioner. For the country’s bookkeepers, this change represents both an opportunity and a responsibility.
“Late payments are one of the most damaging issues facing small businesses, and this new legislation is a long overdue lifeline,” said Ami Copeland, ICB CEO. “Bookkeepers are the ones who keep small businesses financially healthy, and their role in monitoring payment practices, cash flow, and credit control will now be more critical than ever.”
ICB welcomes these reforms as a significant step forward in protecting small businesses from the damaging cash flow impacts of late payments - a problem that costs UK SMEs billions of pounds annually.
Bookkeepers will have the unique opportunity to hear directly from Emma Jones CBE, the newly appointed Small Business Commissioner, at this year’s ICB Bookkeepers Summit on Monday 17 November.
Emma will outline her vision for faster payments, stronger enforcement, and closer collaboration with bookkeepers as key frontline advisors to micro and small business owners.
What bookkeepers should do now
Bookkeepers are encouraged to:
As the UK Government pushes for a more ethical and transparent payment culture, bookkeepers will be central in ensuring small businesses are not just protected – they're empowered.
