The government is cracking down on late payment, but most of the new rules are not law yet. The Commercial Payments Bill — introduced in the House of Lords in May 2026 — would cap payment terms at 60 days, make statutory interest mandatory, penalise late disputes and give the Small Business Commissioner powers to investigate and fine persistent late payers. Lords third reading is scheduled for 20 October 2026; the Commons stages follow, and no start date has been set.
What you can use today, under the Late Payment of Commercial Debts (Interest) Act 1998:
- Statutory interest at 8% above base rate — 11.75% for the second half of 2026
- Fixed compensation of £40, £70 or £100 per late invoice
- Payment due 30 days after invoice if no date was agreed
Pair those rights with clear invoice terms, credit checks, deposits and a steady chasing routine.
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