Companies will have to pay UK supplier invoices within 60 days or face fines

[ctrlbrk]

Just seen this in the news:

Companies that fail to pay suppliers within 60 days will face fines or automatic interest payments, as the government prepares to unveil new rules on Tuesday designed to protect small businesses.

Previously, invoices were supposed to be paid within that timeframe as part of an existing Prompt Payment Code, but upcoming legislation will make meeting the deadline mandatory.

Boards will also be required to include their payment terms in their audit reports and lay out steps on how they will improve performance.

The legislation is expected to be in the King’s Speech in May, which will set out the government’s legislative agenda for the following year.

Companies will have to pay UK supplier invoices within 60 days or fac…

archived 24 Mar 2026 02:16:42 UTC

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[Mark T Jones]

I've seen various initiatives and regulation of this type over the years - and not a huge amount of change in actual payment terms from the 'usual suspects' - the majority being in construction and big retail.

Many years ago, the FSB ran a 'hall of shame' for bad payers - most of whom exceeded 120 day terms. It was quite revealing!

I'd love to see a culture of prompt/reliable payment (it may upset @Ian J though), maybe this will be the start?

 

[lmkeller14]

Just seen this in the news:

Companies that fail to pay suppliers within 60 days will face fines or automatic interest payments, as the government prepares to unveil new rules on Tuesday designed to protect small businesses.

Previously, invoices were supposed to be paid within that timeframe as part of an existing Prompt Payment Code, but upcoming legislation will make meeting the deadline mandatory.

Boards will also be required to include their payment terms in their audit reports and lay out steps on how they will improve performance.

The legislation is expected to be in the King’s Speech in May, which will set out the government’s legislative agenda for the following year.

About time honestly, the Prompt Payment Code was always toothless because there was no real consequence for ignoring it, so making it mandatory with actual financial penalties is the kind of thing that might finally shift the culture around how big companies treat their suppliers.

 

[Ozzy]

Many years ago a supplied had a statement on their invoices that read something along the lines of;

"Please pay this invoice on promptly, so that I may pay them promptly, so they may pay you promptly."


I liked that. I have been a subscriber to the Better Payment code of practice for many years, proudly, and was something that really paid dividends when my financial controller passed away in 2007 and it took me a couple months get the accounts back up to speed - all our suppliers were exceptionally understanding, quoting we know you're good for it, take your time.

 

[Ian J]

I'd love to see a culture of prompt/reliable payment (it may upset @Ian J though), maybe this will be the start?

I can't see it working as too many larger companies wouldn't be able to afford to do it and many of them actually have 90 days payment terms in their conditions of purchase.

Knowing this lot they will bring in the law and after a few months it will be their umpteenth U turn

 

[Chris Ashdown]

I can't see it working as too many larger companies wouldn't be able to afford to do it and many of them actually have 90 days payment terms in their conditions of purchase.

Knowing this lot they will bring in the law and after a few months it will be their umpteenth U turn

Ian, I doubt that big companies will be able to ignore it and also have to change their T&C's. Just take a big hit for a quarter especially companies like Shell

 

[Tables Force]

The 60 day payment is only one part of what they've announced today.

Amongst other things:

• The Small Business Commissioner (SBC) will investigate businesses suspected of poor payment practices.
• The SBC will have the power to fine businesses, including significant potential fines for large companies that persistently pay their suppliers late.
• Large companies, that are persistently late payers, will have to publish commentary on why payment performance is poor and what actions they are taking to fix this.
• A statutory time limit for disputing supplier invoices (think the current proposal is 30 days).
• Mandatory interest on late payments, with no opt-out - with large companies required to report on this in their annual accounts

Late payment consultation: time to pay up – government response (web version)

www.gov.uk

 

[JEREMY HAWKE]

It wont work and in a few months there will be a Uturn on this as they start to realise the the costs of policing such a law

 

[WaveJumper]

It wont work and in a few months there will be a Uturn on this as they start to realise the the costs of policing such a law

Sadly I think I have to agree with you on this one like many things it just sounds like another load of toothless word salad